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PETITIONER: N. SUBRAMANIA IYER
Vs.
RESPONDENT: THE OFFICIAL RECEIVER, QUILON
DATE OF JUDGMENT: 24/05/1957
BENCH: SINHA, BHUVNESHWAR P. BENCH: SINHA, BHUVNESHWAR P. JAGANNADHADAS, B. MENON, P. GOVINDA
CITATION: 1958 AIR 1 1958 SCR 257
ACT: Insolvency-Receiver’s application for annulment of transfer -Onus-Finding in insolvency Proceeding, if res judicata-Good faith-Test--Travancore Regulation VIII of 1090 (=1915) S. 35(iii)-Travancore General Clauses Act(IIof 1072=1897), s. 6(2) -Indian General Clauses Act (X of 1897), S. 2(22).
HEADNOTE: An usufructuary mortgage in favour of the appellant’s predecessor-in-interest was sought to be annulled by the Official Receiver as having been executed within two years of the adjudication of the mortgagors as insolvents, under S. 35(iii) of the Travancore Regulation VIII of 1090 (=1915) as not having been entered into in good faith and for valuable consideration. By an issue framed in the case the burden of proving affirmatively that the transfer was supported by good faith and valuable consideration was thrown on the transferee. There was also a preliminary objection by the Receiver that the usufructuary mortgage having been found to be an act of insolvency in the insolvency proceedings, that finding was res judicata between him and the transferee. The trial judge found in fa...