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Issues:
1. Authority of the person filing the insolvency application. 2. Validity of the attachment by the petitioning creditor. 3. Interpretation of Section 9(e) of the Presidency Towns Insolvency Act regarding multiple acts of insolvency. Detailed Analysis: 1. The first issue in this case revolves around the authority of V. Palaniappa Chettiar, who filed the insolvency petition on behalf of the Mettupalayam Narayani Bank, Ltd. The appellant argued that a resolution authorizing Chettiar to handle the Bank's affairs did not extend to insolvency matters. However, the Court found that the resolution granted Chettiar broad authority to manage all Bank affairs, including court proceedings. As insolvency petitions involve court proceedings, the Court concluded that Chettiar had the necessary authority to file the petition, dismissing the appellant's contention. 2. The second issue concerns the validity of the attachment made by the petitioning creditor, the Mettupalayam Narayani Bank, Ltd. The appellant claimed that since there were two prior attachments in place, the Bank's attachment could not be relied upon as a valid act of insolvency. The Court referenced Section 9(e) of the Presidency Towns Insolvency Act, which states that a debtor commits an act of insolvency if their property is attached for at least twenty-one days. The Court clarified that multiple attachments could constitute separate acts of insolvency, rejecting the appellant's argument that the Bank's attachment was invalid due to prior attachments. 3. The final issue addressed the interpretation of Section 9(e) of the Presidency Towns Insolvency Act regarding multiple acts of insolvency. The Court emphasized that a debtor can commit more than one act of insolvency, and in this case, the three attachments, including the Bank's attachment, were considered distinct acts of insolvency. The Court dismissed the appellant's argument that the Bank's attachment was invalid due to previous attachments, affirming that each attachment constituted a separate act of insolvency. In conclusion, the High Court of Madras upheld the lower court's decision to adjudicate the appellant as insolvent, ruling in favor of the petitioning creditor. The appeal was dismissed, and costs were awarded to the opposing creditors.
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