Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Insolvent Presidency Towns |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Presidency Towns Insolvency Act, 1909 (3 of 1909) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Presidency Towns Insolvency Act, 1909: Sections 2(e), 17 and 52(2)(a). Insolvent - Property of - After adjudication - As an insolvent - Cohen's case - Rule laid down in - "Under English law the 'after-acquired property' of insolvent does not automatically vest in trustee or assignee unless the trustee intervenes'' - Applicability of the Rule in India - Held, The Rule need not be gone into as the present case is not concerned with immovable property but adjudication by the insolvent from his business which is covered by S. 60(2 ). Section 52(2)(a) and 60 - Insolvent - 'Salary or income' - Earned by - After adjudication - Attachable or non- attachable - Held, it belongs to the insolvent and does not automatically vest in official assignee--Only such part of the attachable 'salary or income' can be made over to the official assignee which the court finds as just - To determine the portion of 'salary or income' to pass on to the official assignee, the court should have regard to what is reasonably necessary for the maintenance of the insolvent, his wife and family. Section 60(2 )- "Income'' - Meaning of - Held, includes income from trade or business - 'lncome' not to be construed ejusdem generis like salary. Section 52(2)(a) - lnsolvent - Personal earnings - Earned from his personal labour - Vesting of - ln official assignee - Held, To the extent necessary for the support of the insolvent and his family do not vest in the official assignee. Section 75 - Insolvent - Allowance for - Support of himself and his family - Court's power to award - Held, Requirement of the domestic needs of insolvent and his family depends upon facts of each case - While the court has to take humanistic view towards honest insolvents, the court must also guard against undue exploitation of the principles and provisions of law, by Unscrupulous persons who get adjudicated as insolvents - If over a period, out of the amounts allowed by the court for the support of the insolvent and his family, there is a surplus or excess, then the creditors or the assignee can apply to the court for a review of previous orders - This procedure will be consistent with Arts. 19(1)(g) and 21 - Constitution of India, 1950, Arts. 19(1)(g) and 21.Words and Phrases : "lncome" - Meaning of - In the context of S.60(2) of the Presidency Towns Insolvency Act, 1909 |
Judge | Hon'ble Mr. Justice M. Jagannadha Rao Hon'ble Mr. Justice S.B. Majmudar |
Neutral Citation | 1999 INSC 5 |
Petitioner | P. Veerasamy |
Respondent | Official Assignee, High Court, Madras |
SCR | [1999] 1 S.C.R. 37 |
Judgement Date | 1999-01-12 |
Case Number | 105 |
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