TMI Blog1931 (10) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... in the High Court against the Deccan Match Manufacturing Company in Summary Suit No. 279 of 1927, on April 5, 1927. The decree was ex parte and there was no appeal against it. Nor was any application made to set aside the ex parte decree. The decree was transferred for execution to the First Class Subordinate Judge's Court at Satara. In the meantime the company had gone into liquidation, and the liquidator presented an application to the District Judge under section 215 of the Indian Companies Act, asking the court to determine whether the hundi transaction entered into by the Chitale Bros., was binding against the company, whether there was any consideration for the said hundi, and whether any amount thereunder was required for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d decided go behind the High Court decree, which is binding on the company, although it was ex parte. The learned Counsel for the respondent has pointed out that under section 229 of the Indian Companies Act the rules regarding the winding up of an insolvent company are the same as those which apply to the estates of insolvents, and he refers to section 34(2) of the Provincial Insolvency Act, by which all debts and liabilities, present or future, certain or contingent, to which the debtor is subject when he is adjudged an insolvent, or to which he may become subject before his discharge by reason of an obligation incurred before the date of such adjudication, shall be deemed to be debts provable under that Act. There is a special exceptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een very clearly expressed in the case of In re Van Laun, Ex parte Pattulloo ([1907] 1 KB 155) where it is said (pages 162, 163): "The trustee's right and duty when examining a proof for the purpose of admitting or rejecting it is to require some satisfactory evidence that the debt on which the proof is founded is a real debt. No judgment recovered against the bankrupt, no covenant given by or account stated with him, can deprive the trustee of this right. He is entitled to go behind such forms to get at the truth, and the estoppel to which the bankrupt may have subjected Himself will not prevail against him." This case was confirmed by the Court of Appeal in In re Van Lawn, Ex parte Chatterton ([1907] 2 KBD 23; 76 LJKB 644; 97 L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, as the Chitale Bros., to whom the advance was made and who were the managing agents of the company, had no authority to borrow on behalf of the company and inasmuch as the amount borrowed admittedly does not appear in the books of the company, and there is no evidence that the amount was received by the company, and it appears to have been used by the Chitale Bros., for their own purposes, the company did not get the benefit of the amount, and Ramchandra Sakharam, the father of the Chitale Bros., who was himself not a member of the managing agents' firm, appears to have taken part in the dealings with the plaintiff, the debt is not binding on the company. The fact that the amount may have been paid into an account in the company's n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
