/ 1 / IN THE HIGH COURT OF JUDICATURE AT MADRAS (IN INSOLVENCY) MONDAY, THE 26TH DAY OF NOVEMBER 2018 THE HON'BLE MR.JUSTICE R.SURESH KUMAR I.P. No.53 of 2007 AND APPLN.NO.282 OF 2018 In the matter of Presidency Town Insolvency Act, III of 1909 in the matter of S.N. Ramachandran ... Insolvent J. Devanathan, S/o. V. Janarthanan, No. 120/6, C.P.W.D. Quarters, K.K. Nagar, Chennai 78. ... Petitioner / Petitioning Creditor -Vs- S.N. Ramachandran S/o. Nagappa Nadar, C/o. Dhinagar Exports, No. 20, 5th Cross Street, Lake Area, Chennai 34. ... Respondent / Debtor Insolvency petition praying that this Hon'ble court be pleased :- (a) to adjudicating the Respondent herein as Insolvent and direct the estate of the Respondent vest with the Official Assignee, High Court, Madras to be administered in a regular manner. (b) to direct the cost in this petition to come out from the estate. A. No.282 of 2018 S.N. Ramachandran S/o. Nagappa Nadar, No. 17, Gulam Mohideen Lane, Bodinayakkanur – 625 513. ... Applicant/Insolvent https://hcservices.ecourts.gov.in/hcservices/ / 2 / -Versus- 1. J.Devanathan, S/o.V.Janarthanam, No.120/6, C.P.W.D.Quarters, K.K.Nagar, Chennai 600 078. ... 1st Respondent/Petitioning Creditor 2. The Official Assignee, High Court, Madras 600 104. ...2nd Respondent Application praying that this Hon'ble Court be pleased to annul the order of adjudication dated 06.04.2009 passed in I.P.No.53 of 2007. The Insolvency Petition and Application coming on this day before this Court for hearing in the presence of Mr.M.Chidambaram, advocate for the Applicant/Insolvent, Mr.B.R.Shankaralingam, advocate for the 1st Respondent/Petitioning Creditor and the Official Assignee of this Court, the 2nd respondent herein and upon reading the Judges Summons and the affidavit of S.N.Ramachandran, filed herein and the Report of the Official Assignee dated 19.11.2018 filed herein and this Court observing that since the petitioning creditor is the only creditor,who made the only claim before the Official assignee to settle the dues and the said amount has been fully settled, which has been acknowledged by the petitioning creditor and no other claim has been made and was pending before the Official Assignee,by recording the report of the Official Assignee dated 19.11.2018 and https://hcservices.ecourts.gov.in/hcservices/ / 3 / It is ordered: (i)That the order of Adjudication made herein and dated the 6th day of April 2009 against the insolvent S.N.Ramachandran, be and is hereby annulled. (ii)That the Insolvency Petition No.53 of 2007 and Appln.No.282 of 2018 be and are hereby closed. WITNESS, THE HON'BLE SHRIMATI, VIJAYA KAMLESH TAHILRAMANI, CHIEF JUSTICE, HIGH COURT AT MADRAS, AFORESAID THIS THE 26th DAY OF NOVEMBER 2018. SD/- ASSISTANT REGISTRAR Original Side – I //CERTIFIED TO BE TRUE COPY// DATED THIS THE DAY OF 2018 MANAGER INSOLVENCY OFFICE From 25th Day of September 2008 the Registry is issuing certified copies of the Orders/Judgments/Decrees in this format. https://hcservices.ecourts.gov.in/hcservices/ / 4 / cns-03.12.2018 HIGH COURT, MADRAS IP. No.53 of 2007 and APPLN.NO.282 OF 2018 ANNULMENT ORDER DATED:26/11/2018 THE HON'BLE MR. JUSTICE R.SURESH KUMAR FOR APPROVAL: 06/12/2018 APPROVED ON : 10/12/2018 COPY TO:- THE OFFICIAL ASSIGNEE HIGH COURT, MADRAS. https://hcservices.ecourts.gov.in/hcservices/ / 5 / IN THE HIGH COURT OF JUDICATURE AT MADRAS (IN INSOLVENCY) MONDAY, THE 26TH DAY OF NOVEMBER 2018 THE HON'BLE MR.JUSTICE R.SURESH KUMAR I.P. No.53 of 2007 AND APPLN.NO.282 OF 2018 In the matter of Presidency Town Insolvency Act, III of 1909 in the matter of S.N. Ramachandran ... Insolvent J. Devanathan, S/o. V. Janarthanan, No. 120/6, C.P.W.D. Quarters, K.K. Nagar, Chennai 78. ... Petitioner / Petitioning Creditor -Vs- S.N. Ramachandran S/o. Nagappa Nadar, C/o. Dhinagar Exports, No. 20, 5th Cross Street, Lake Area, Chennai 34. ... Respondent / Debtor Insolvency petition praying that this Hon'ble court be pleased :- (a) to adjudicating the Respondent herein as Insolvent and direct the estate of the Respondent vest with the Official Assignee, High Court, Madras to be administered in a regular manner. (b) to direct the cost in this petition to come out from the estate. A. No.282 of 2018 S.N. Ramachandran S/o. Nagappa Nadar, No. 17, Gulam Mohideen Lane, Bodinayakkanur – 625 513. ... Applicant/Insolvent https://hcservices.ecourts.gov.in/hcservices/ / 6 / -Versus- 1. J.Devanathan, S/o.V.Janarthanam, No.120/6, C.P.W.D.Quarters, K.K.Nagar, Chennai 600 078. ... 1st Respondent/Petitioning Creditor 2. The Official Assignee, High Court, Madras 600 104. ...2nd Respondent Application praying that this Hon'ble Court be pleased to annul the order of adjudication dated 06.04.2009 passed in I.P.No.53 of 2007. The Insolvency Petition and Application coming on this day before this Court for hearing in the presence of Mr.M.Chidambaram, advocate for the Applicant/Insolvent, Mr.B.R.Shankaralingam, advocate for the 1st Respondent/Petitioning Creditor and the Official Assignee of this Court, the 2nd respondent herein and upon reading the Judges Summons and the affidavit of S.N.Ramachandran, filed herein and the Report of the Official Assignee dated 19.11.2018 filed herein; THE COURT MADE THE FOLLOWING ORDER : This Insolvency Petition is filed under Sections 9,10,11,12 and 13 of the Presidency Towns Insolvency Act and under Order III-A of the Insolvency Rules 1958 to adjudicate the debtor as insolvent and to direct that the estate of the debtors be vested with the Official Assignee https://hcservices.ecourts.gov.in/hcservices/ / 7 / of Madras to be administered in a regular manner and the cost of the petition be paid by the Official Assignee, Madras from and out of the estate of the Debtor to the Petitioning Creditor. 2. The relief sought for 96in A.No.282 of 2018 is to annul the order of adjudication dated 06.04.2009 passed in the above I.P.No.53 of 2007. 3. According to the report dated 19.11.2018 filed by the Official Assignee, the debtor had already been adjudicated as insolvent on a creditor's petition, by order of this court dated 06.04.2009 in I.P. No.53 of 2007. Pursuant to which, the entire estate of the adjudicated insolvent was vest with the Official Assignee for realisation and distribution among the general body of creditors. 4. Thereafter, since the insolvent did not come forward to file a schedule verified by affidavit in the prescribed form, efforts have been taken by the official Assignee. Thereafter, the insolvent had come forward to disclose that the debt for the petitioning creditor payable was only Rs.1,81,295/- as per the insolvency petition. 5. Thereafter, an amicable settlement reached between the insolvent and the petitioning creditor, with a result, the insolvent had deposited a sum of Rs.2,00,000/- to https://hcservices.ecourts.gov.in/hcservices/ / 8 / settle the liability of the petitioning creditor and also to meet out the administrative expenses. The said amount of Rs.2,00,000/- was deposited by five installments, as per the details mentioned hereunder. Sl. No. Mode of Payment Amount Rs. 1. D.D.No.670293 dt. 10.04.2018 1,00,000/- vide Rt.No.12890 / 16.04.2018 2. D.D.No.351797 dt. 16.04.2018 50,000/- Vide Rt.No.12907 / 27.04.2018 3. D.D.No.357388 dt. 24.07.2018 10,000/- Vide Rt.No.13000 / 26.07.2018 5. D.D.No.357388 dt. 24.07.2018 5,000/- Vide Rt. No.13000/26.07.2018 6. D.D.No.358320 dt. 27.09.2018 35,000/- Vide Rt.No.13102 / 28.09.2018 6. Thereafter, the petitioning creditor had filed a claim petition in Claim No.213 of 2018 claiming a sum of Rs.1,70,245/- as dividend from the estate of the insolvent. The said claim had been admitted as Rs.1,70,245/- by the Official Assignee by order dated 09.10.2018. 7. According to the report of the Official Assignee, except the petitioning creditor's claim, no other claim had been made by anyone. Thereafter, in order to pay the admitted claim of Rs.1,70,245/- to the petitioning creditor, permission was sought for from this Court by filing an Application No.262 of 2018, where order was https://hcservices.ecourts.gov.in/hcservices/ / 9 / passed by this Court. Accordingly, the Official Assignee had paid the said sum of Rs.1,70,245/- by way of cheque in favour of the petitioning creditor one Mr. J.Devanathan by cheque No.965080 dated 13.11.2018 and the petitioning creditor also had received the said cheque on 14.11.2018 and acknowledged the same. 8. Therefore, the entire claim of the petitioning creditor has been paid in full and since no other claim has been made and the remaining amount from the deposit of the insolvent had been taken as an administrative expenses, the Official Assignee, in fact, had withdrawn the application No.74 of 2018, which was filed by the Official Assignee for the arrest of the insolvent before the Master Court on 15.11.2018. 9. I have heard the Official Assignee as well as the learned counsel for the insolvent and the petitioning creditor. 10. The aforesaid factors had been admitted by both the learned counsels appearing for the insolvent and the petitioning creditor. 11. Since the petitioning creditor is the only creditor, who made the only claim before the Official Assignee to settle the dues and the said amount has been fully settled, which has been acknowledged by the https://hcservices.ecourts.gov.in/hcservices/ / 10 / petitioning creditor and no other claim has been made and was pending before the Official Assignee, by recording the report of the Official Assignee dated 19.11.2018, this Court is inclined to annul the adjudication and consequently, close this I.P.No.53 of 2007 In the result, this Insolvency Petition in I.P.No.53 of 2007 is closed. Consequently, connected A.No.282 of 2018 is also closed. WITNESS, THE HON'BLE SHRIMATI, VIJAYA KAMLESH TAHILRAMANI, CHIEF JUSTICE, HIGH COURT AT MADRAS, AFORESAID THIS THE 26th DAY OF NOVEMBER 2018. SD/- ASSISTANT REGISTRAR Original Side – I //CERTIFIED TO BE TRUE COPY// DATED THIS THE DAY OF 2018 MANAGER INSOLVENCY OFFICE From 25th Day of September 2008 the Registry is issuing certified copies of the Orders/Judgments/Decrees in this format. https://hcservices.ecourts.gov.in/hcservices/ / 11 / cns-03.12.2018 HIGH COURT, MADRAS IP. No.53 of 2007 and APPLN.NO.282 OF 2018 ANNULMENT ORDER DATED:26/11/2018 THE HON'BLE MR. JUSTICE R.SURESH KUMAR FOR APPROVAL: 06/12/2018 APPROVED ON : 10/12/2018 COPY TO:- THE OFFICIAL ASSIGNEE HIGH COURT, MADRAS. https://hcservices.ecourts.gov.in/hcservices/