Provincial Insolvency Act, 1920

Shankar Ram & Co. purchased 249 shares of Rajapalayam Mills from the bank on 24‑08‑1978, paying Rs.25,155.40, without knowledge that the shareholder, Kasi Naicker, had filed an insolvency petition in 1976. The petition was dismissed in 1977, but an order of adjudication was finally passed on 17‑10‑1978. The appellant f…

The appellant and several respondents were partners in an unregistered partnership firm and a suit for dissolution and accounts was filed by one partner. The partnership deed contained an arbitration clause, leading the appellant to obtain a stay of the suit under Section 34 of the Arbitration Act and to file a petitio…

The appellant, an unregistered partnership firm, entered into a construction contract with the respondent and later contested the respondent's claim in arbitration. The respondent argued that Section 69(3) of the Partnership Act, 1932 barred the firm from participating in arbitral proceedings because "other proceedings…

The Supreme Court considered whether a secured creditor, Kotak Mahindra Bank, could file a winding‑up petition under the Companies Act, 1956 after obtaining a decree and recovery certificate from the Debts Recovery Tribunal. The petitioners argued that Sections 17, 18 and 34 of the Recovery of Debts Act barred the wind…

ICICI Bank and two other banks (first charge holders) and Punjab National Bank (second charge holder) had secured loans to Sidco Leathers Ltd., which was wound up and an Official Liquidator appointed. The first charge holders filed a suit in the Debt Recovery Tribunal and lodged a claim with the Official Liquidator, wh…

The case concerned a partnership share that was purportedly sold by an official receiver after the appellant and his mother were declared insolvent in 1977. The sale deed dated 11 March 1983 was executed based on a district court order, but later the insolvency adjudication was annulled in 1996. The High Court held tha…

The Bombay Stock Exchange (BSE) declared member Suresh D. Shah a defaulter and the Income Tax Department sought to attach the proceeds of his membership card and securities under s.226(3) of the Income Tax Act. BSE argued that a membership card is a personal, non‑transferable privilege and that its lien under Rule 43 m…

The appellant workmen sought priority over the sale proceeds of unsecured assets of UMI Special Steels Ltd., arguing that under Sections 529 and 529A of the Companies Act, 1956, workmen's dues should rank ahead of secured creditors on those assets. The respondents, representing the secured creditors, contended that the…

The appellant Jagannath challenged a sale of property made by the insolvent Bhadarmal to the respondent Yugal Narain Purohit on May 17, 1958, seeking a declaration under Section 53 of the Provincial Insolvency Act that the transfer was fraudulent. The trial court, a single judge and a division bench of the Rajasthan Hi…

Al Champdany Industries Limited purchased the assets of a company in liquidation. After the sale was confirmed, Bhatpara Municipality claimed arrears of property tax for periods before the sale and sought payment from the purchaser. The High Court held that the sale terms "as is where is" imposed a duty on the buyer to…

The appellant, the creditor, claimed that a regular sale deed executed by the debtor was revived after the Insolvency Court annulled its earlier adjudication, thereby extinguishing the debtor‑creditor relationship under the Maharashtra Debt Relief Act, 1975. The debtor‑creditor relationship originated from a deed of mo…

Thampanoor Ravi was elected to the Kerala Legislative Assembly and his election was challenged on two grounds: (i) that he was an "undischarged insolvent" within the meaning of Article 191(1)(c) of the Constitution, and (ii) that he had indulged in corrupt practices under Section 123 of the Representation of the People…

State Bank of India (SBI) sought recovery of a loan from a corporate debtor whose managing director, V. Ramakrishnan, had also given a personal guarantee. After the corporate debtor defaulted, SBI invoked SARFAESI provisions and the debtor filed an insolvency petition under the Insolvency and Bankruptcy Code (IBC) 2016…

The plaintiff, an undischarged insolvent, entered into a joint application with the creditor to sell his land for the debt amount, with a clause allowing repurchase within five years. After the sale deed was executed by the Official Receiver, the plaintiff was adjudicated insolvent, but later obtained an unconditional …

The Supreme Court examined the interpretation of Section 11 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, which governs the discharge of liabilities and distribution of attached property of notified persons such as Harshad Mehta. It held that only taxes finally assessed for …

The Collector of Kanpur appointed a receiver over Swadeshi Cotton Mills Ltd. and ordered the seizure, attachment and pledge of its 10 lakh shares in Swadeshi Polytex Ltd. The Cotton Mills Company, together with four other shareholders, requisitioned an extraordinary general meeting of Polytex under s.169 of the Compani…

The Recovery Officer, under the Uttar Pradesh Co-operative Societies Act, 1965, initiated recovery proceedings under Section 91 to attach and sell the lands of members who had defaulted on loans taken for seeds and manure. The members contended that the statutory charge created by Section 39(a) attaches only to the cro…