1936 (3) TMI 16 - HC - Indian Laws

Appeal allowed in insolvency matter under Presidency-towns Insolvency Act

The judgment clarified that orders in insolvency matters under the Presidency-towns Insolvency Act are appealable, not limited by conditions for ... - Issues:Appealability of an order made in insolvency matters under Section 8(2) of the Presidency-towns Insolvency Act.Analysis:The judgment in question pertains to an appeal from an order made in insolvency by Mr. Justice Blackwell. The case involved the taxation of costs in heavy litigation, where the Taxing Master reduced the original amount after an application by the Official Assignee. Subsequent applications were made to review the order of Mr. Justice Kania, who had refused the initial application. The Insolvency Judge, Mr. Justice Blackwell, also declined to review the order. The appeal was brought challenging Mr. Justice Blackwell's decision, with a preliminary objection raised regarding the appealability of the order under Section 8(2) of the Presidency-towns Insolvency Act.The judgment analyzed the provisions of Section 8(2) of the Act, which states that orders in insolvency matters are subject to appeal 'as follows.' The relevant sub-clause (b) specifies that an appeal from such an order shall lie in the same manner and be subject to the same provisions as an appeal from an order made by a Judge in the exercise of ordinary original civil jurisdiction. The judgment referred to precedents from the Rangoon High Court but disagreed with their interpretation, emphasizing the right of appeal from an order made in insolvency. It highlighted the need for a standard of comparison for the order appealed against, rejecting the argument that an appeal only lies if conditions for appealability under original jurisdiction exist.The judgment concluded that the direction in the Act allows for an appeal in insolvency matters, not limited by the conditions for appealability under original jurisdiction. The appeal was deemed to be permissible under the Act. The judgment also discussed the merits of the case, ultimately dismissing the appeal on its merits. The decision was unanimous, with both judges concurring on the dismissal of the appeal with costs.In summary, the judgment clarified the appealability of orders in insolvency matters under the Presidency-towns Insolvency Act, emphasizing the right of appeal provided by the Act and rejecting the argument that appealability is contingent on meeting the conditions for appeal under original civil jurisdiction.