1938 (10) TMI 15

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..... itor's petition under Sec. 9, Provincial Insolvency Act, to adjudicate the respondent as insolvent. The facts are not in dispute. The respondent executed on 20th December 1935 a promissory note for ₹ 900, in favour of the appellants. On 9th October 1936 the appellants presented the petition in insolvency against the respondent alleging three acts of insolvency which had occurred within t .....

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..... e has held that this insolvency petition is in reality a proceeding to enforce a right arising from a contract. We are unable to agree with the learned District Judge on this point. A petition for the adjudication of a debtor as an insolvent is not in our view a proceeding to enforce a right arising from a contract. It is no doubt the case that the creditors who apply for the adjudication of their .....

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..... he learned counsel for the respondent has sought to support the order of the learned District Judge by contending that the debt due to the petitioning creditors in this case should be considered to be not legally recoverable. He refers us to Halsbury's Laws of England, Vol. 2, page 59, where it; is laid down that a debt which can support an insolvency petition must be a legally recoverable deb .....

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