1 mgj IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION Insolvency Petition No. 15 of 2009 Koduvayur Venkitachalam Ganeshan ..Debtor vs. Kollengode Natarajan Vaidyanathan ..Petitioning Creditor Mr.K. J.Somane for petitioning creditor Mr.V.V.Iyer for debtor. CORAM: S.J.KATHAWALLA J. 21 st July, 2009 P.C. 1 This petition is filed by the petitioning creditor against the debtor on the ground that the debtor is indebted to the petitioning creditor in the sum of Rs. 54,500/- as on 11 th November, 2008. It is the case of the petitioning creditor that he has advanced to the debtor a sum of Rs. 50,000/- on 2 nd May, 2008 as a friendly loan 2 as per the request made by the debtor. The debtor had agreed and undertaken to repay the said sum on or before 11 th November, 2008. On 11 th November, 2008 the debtor issued a cheque to the petitioning creditor for Rs. 5,40,500/- in full payment of the said loan with interest. The said cheque when deposited by the petitioning creditor in his Bank was returned on the ground funds insufficient in the account of the debtor. The petitioning creditor thereafter called upon the debtor through his Advocate s letter dated 24 th January, 2008 to make payment of the dishonoured cheque. In reply, the debtor by his letter dated 27 th January, 2009 expressed his inability to pay the said amount. In the said letter, it was also stated that the debtor has suspended payment to all his creditors. It is, therefore, submitted on behalf of the petitioning creditor that the debtor has committed an act 3 of insolvency on 27 th January, 2009. 2 The learned Advocate appearing for the debtor states on instructions from the debtor who is present in Court that the debtor has suspended payments to all his creditors and that it is true that he has committed an act of insolvency on 27 th January, 2009 as alleged by the petitioning creditor. The learned Advocate for the debtor has stated that the debtor has financial difficulties and that the petition may be made absolute. In view thereof, the petition is made absolute in terms of prayer clause (a) which reads thus: (a) That this Hon ble court be pleased to pass an order of adjudication against the debtor abovenamed adjudicating him an insolvent. (S.J.KATHAWALLA J.)