1972 (1) TMI 122

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.....S. Sharma, Advs. For the Respondents : G.L. Sanghi and P.K. Mukherjee, Advs. for Respondent. JUDGMENT K.S. HEGDE, J. 1. This appeal by special leave arises from insolvency proceedings initiated by the first respondent Petitioning Creditor on the original side of the Calcutta High Court against the appellant. No other creditor had either joined the proceedings or was a party thereto. E....

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....by June 30, 1965, the order of adjudication would be set aside. On the same day i.e. September 23, 1964 the appellant paid to the petitioning creditor Rs. 28,186.49 paise. The balance amount was not paid within the time fixed. For that reason the appellate court confirmed the adjudication of the insolvent by its judgment dated July 12, 1966. There after on July 30, 1966 the appellant's solicit....

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....t justified in maintaining case. From the records we are satisfied that there was no justification for initiating the insolvency proceedings in question. Non-payment of a decree promptly by itself is no ground to adjudicating a person insolvent: Appellant appears to be a person of substantial means. In this case insolvency proceedings appear to have been initiated as an alternative to execution pr....