THE HON'BLE SRI JUSTICE L.NARASIMHA REDDY C.M.S.A.No.12 of 2010 ORDER: Respondent No.1 filed Creditor I.P.No.8 of 1999 in the Court of the Senior Civil Judge, Bhimavaram against respondent No.2, who is no more, to declare the latter as insolvent and to set aside the sale of an item of property affected by him in favour of the appellant herein. The matter was contested mainly by the appellant herein. Through judgment, dated 12.04.2005, the trial Court decreed the I.P. Aggrieved thereby, the appellant filed A.S.No.12 of 2006 in the Court of the Additional District Judge-cum-Family Court, West Godavari District. The appeal was dismissed on 05.08.2009. Hence, this civil miscellaneous second appeal under Section 100 C.P.C. read with Section 75 of the Provincial Insolvency Act, 1920. Heard the learned counsel for the appellant and the learned counsel for respondent No.1. The objective of respondent No.1 to file the appeal was to challenge the sale effected in favour of the appellant, through document, dated 01.03.1999. The principal debtor i.e. the deceased respondent No.2 remained ex parte. The matter was contested by the appellant alone. The trial Court framed only one point for its consideration, namely whether respondent No.2 in the I.P. was liable to be declared as insolvent and the sale deed, dated 01.03.1999, is liable to be annulled. On behalf of respondent No.1, P.Ws.1 and 2 were examined and Exs.A1 to A3 were marked. On behalf of the appellant, R.Ws.1 to 3 were examined and Ex.B1 was marked. The trial Court recorded a clear finding to the effect that the sale was effected in favour of the appellant to defeat the liability towards respondent No.1. The amount involved was only Rs.25,000/-. The contest made by the appellant to the decree by filing A.S.No.12 of 2006 was not successful. This Court would have appreciated various contentions urged by the appellant, but for the fact that by the time the appeal was filed, the decree was executed. Interim stay was granted by this Court on 31.03.2010. However much before that i.e. on 20.11.2009, the property was recovered from the appellant and it was brought to sale for a consideration of Rs.2,82,000/-. One- fourth amount was deposited by the purchaser on the date of auction and balance three-fourth on 10.02.2010. The Receiver deposited the amount to the credit of I.P. on 25.03.2010. The appellant did not implead the purchaser of the property. The sale cannot be set aside at this stage. However, if there remains anything after the amount due from the insolvent is paid to respondent No.1, the balance shall be paid to the appellant herein. Hence, the appeal is dismissed, however, with an observation that the balance of sale proceeds after satisfying the claim of respondent No.1 shall be refunded to the appellant. There shall be no order as to costs. _____________________ L.NARASIMHA REDDY,J Dt:11.04.2011. kdl