Whether joint hindu family firm can be adjudicated as insolvent?

As the above rulings throw little light on the question whether a Hindu joint family firm can be adjudged insolvent under Section 99, Presidency Towns Insolvency Act, it is necessary to look to the words of the section itself. It is no doubt true that a Hindu joint family firm is somewhat different from an ordinary partnership business; as pointed out in Mulla's Hindu Law, p. 250, a joint Hindu family firm is not dissolved by the death of a coparcener whereas an ordinary partnership is dissolved when a partner dies. Ordinarily however there is not much difference between the members of a Hindu joint family who carry on business together and the partners of an ordinary partnership firm. In common parlance members of the family who transact the business are partners and in this case they have so described themselves in the application to the Imperial Bank of India Ex. 14. In that they refer to the firm of Kala Gella as a firm and inform the bank that they are partners of the said firm. This being so, it would seem to be that the wording of Section 99, Presidency Towns Insolvency Act is wide enough to include a Hindu joint family business and that under that section it was open to the learned Additional Judicial Commissioner to adjudicate the firm insolvent.

 Citation : AIR 1931 Sindh 179

IN THE HIGH COURT OF SIND

Decided On: 07.11.1930

 Chaturbhuj and Ors.

Vs.

 F.O. Kewalram and Ors.

Milne, A.J.C.

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Whether member of family who was not personally liable under decree can be adjudicated insolvent?

On the fourth point the learned District Judge is clearly right. Molar Singh, respondent 4, was not personally liable under the decree. The debt in question was due by his father Chattar Singh along with his uncles, respondents 1 to 3. So far as Molar Singh is concerned the decree against him was passed in his representative capacity and was obviously realisable from the estate of Chattar Singh which had come into his possession. On these facts, it was eventually conceded by Mr. Shamair Chand for appellant that, Molar Singh could not be adjudicated insolvent.

 Citation : AIR 1930 Lah 592

IN THE HIGH COURT OF LAHORE

Decided On: 07.03.1930

 Kalu Ram
Vs.
Gitwar Singh and Ors.

Coram:

Tek Chand, J.

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Whether creditor can make single insolvency petition for adjudicating two or more person as insolvents?

After giving the matter my careful consideration I am of opinion that there is no legal bar to a single application being made by a creditor for adjudicating two or more persons as insolvents if they are jointly liable on a debt or have committed a joint act of insolvency.

 Citation : AIR 1930 Lah 592

IN THE HIGH COURT OF LAHORE

Decided On: 07.03.1930

 Kalu Ram
Vs.
Gitwar Singh and Ors.

Coram:

Tek Chand, J.

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Whether plaint can be rejected on the ground that plaint is signed by director who is declared as insolvent?

At the same time Order VI rule 14 of the CPC permits the pleading to be signed by any person duly authorised by the Plaintiffs.

In this case the Company had infact authorised the said Bagwe. The resolution annexed to the plaint is not authorising the Director of the Plaintiffs but it is authorising a specific person Mr. Bagwe, who is described as a Director of the Plaintiffs.

7 Therefore, in my view, the authority was quite valid even though the said Bagwe could not have been a Director. Even otherwise it would be only an irregularity that could be rectified and not in illegality.

Bombay High Court

Meera Housing Pvt. Ltd vs Khatau Makanji And Company Pvt. ... on 10 October, 2014

Bench: K.R. Sriram

Citation;2015(3) ALLMR739

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