High Court of KeralaSingle JudgeOriginal petitions dismissed; suits to be dispo...
Orient Exports and Imports (a unit of Orient Group) v Reena Joseph (OP(C) Nos. 302/2018 and connected cases)
Case / Petition Number:OP(C) Nos. 302/2018; 305/2018; 306/2018; 737/2019; 1560/2018; 1906/2018; 1907/2018; 1972/2020; 1975/2020; 1976/2020; 3188/2018
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- V. G. Arun
- Judgment Date
- 2021-11-05
- Court Decision / Holding
- The original petitions are dismissed. The courts below shall dispose of the suits expeditiously.
- Final Disposition
- Original petitions dismissed; suits to be disposed expeditiously.
Parties to the Case
Appellants / Petitioners
- M/S. ORIENT EXPORTS AND IMPORTS KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001
- REJIMOL THOMAS TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001
- T.T. JAMES TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001
- DR. EAPEN THOMAS TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001
- SHERLY EAPEN TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001
- NIRMALA JAMES TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001
- SERGI JOSEPH THOMAS VECHOOR HOUSE, ST.JUDE NAGAR, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001
- JULIEMOL SERGI VECHOOR HOUSE, ST.JUDE NAGAR, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001
- THRESSIAMMA ORIENT HOUSE, KUNJALUMMOODU, KARAMANA, THIRUVANANTHAPURAM - 695 001
Respondents
- REENA JOSEPH W/o. ABRAHAM KULANGARA KURIAN, NIKUNJAM, PAYANCHERRY, PERAVOOR ROAD, IRITTY, KANNUR
- Roy Joseph S/o. Late Cheria Iccarankudiyil Joseph, Padayattill House, UlOOor Gardens, Medical College P.O., Thiruvananthapuram (in related connected matters)
Legal Representation & Advocates
Counsels for Petitioners
- • SRI.K.V.SADANANDA PRABHU
- • SRI.RENJIT GEORGE
Counsels for Respondents
- • Smt.P.ANJA NA
- • Smt.R.BINDU
- • Smt.HARISH GOPINATH
- • Smt.R.S.KALKURA
- • Smt.M.S.KALESH
Case Synopsis & Summary
This judgment consolidates several OP(C) petitions and connected matters before the Kerala High Court, involving Orient Exports and Imports and allied entities as petitioners and creditors as respondents. The core issue is whether ongoing civil suits filed by creditors should be stayed under the Insolvency and Bankruptcy framework (Insolvency Act, 1955) in light of insolvency proceedings against the Orient group. Petitioners contend that the Act aims at proportionate distribution of assets, prevents fraud, consolidates claims, and that the prior appointment of an interim receiver signals an adjudicatory process that warrants stay under Section 30. They rely on authorities such as Kanishk Steel Industries to argue that the insolvency proceedings should interdict civil suits. Respondents submit that, absent an adjudication order under Section 27, there is no automatic stay; and even an adjudication order does not bar all proceedings, only execution-related actions, with the civil suits currently in progress unaffected aside from stay provisions. The court clarifies the Act’s objective as protecting creditors and honest debtors while maintaining a mechanism for individual creditor rights. It distinguishes the interim receiver’s appointment from an actual order of adjudication, holding that Section 30 stay does not apply prior to adjudication. Consequently, the petitions are dismissed and courts are directed to expeditiously dispose of the suits.
Provisions of Law Cited
Insolvency Act, 1955 - Section 6Insolvency Act, 1955 - Section 7Insolvency Act, 1955 - Section 19Insolvency Act, 1955 - Section 20Insolvency Act, 1955 - Section 24Insolvency Act, 1955 - Section 25Insolvency Act, 1955 - Section 27Insolvency Act, 1955 - Section 28Insolvency Act, 1955 - Section 30Insolvency Act, 1955 - Section 53Insolvency Act, 1955 - Section 58Code of Civil Procedure, 1908
Legal Doctrines & Maxims
- Insolvency Act is a social legislation intended to protect the interests of creditors as well as honest debtors.
- The Act provides for proportionate distribution of the debtor's assets among creditors and prevents fraudulent concealment or preference.
- An Insolvency Court adjudication under Section 27 interdicts civil courts from proceeding, directing stay of pending proceedings under Section 30.
- Appointment of an Interim Receiver under Section 20 is intended to preserve assets and does not vest title in the debtor, nor does it constitute an order of adjudication.
Submissions & Arguments
Contentions of Appellants / Petitioners
The petitioners contended that the Insolvency Act is a social legislation designed to ensure proportionate distribution of assets and protect creditors and honest debtors. They argued that an interim receiver's appointment under Section 20 presages adjudication under Section 27 and that the stay under Section 30 should apply to ongoing suits. They relied on authorities including Kanishk Steel Industries to support the stay of civil suits pending insolvency proceedings and adjudication.
Contentions of Respondents
Respondents argued that unless an order of adjudication under Section 27 is made, creditors may continue proceedings in regular courts. They contended that an order of adjudication does not universally bar all proceedings; the stay applies primarily to execution and similar actions, not to all suits, until adjudication is complete.
Cited Precedents (7)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| Kanishk Steel Industries Ltd v. Annie Sweety | 2009 (3) KLT 888 | Partly Overruled / Limited | Court distinguishes this observation as not addressing whether Section 30 applies prior to adjudication under Section 27; not controlling in the present context. |
| State of Punjab v. Rattan Singh | 1964 KHC 545 | Mentioned Only | Cited in support of general propositions regarding insolvency and creditor rights, but not central to the court's ultimate ruling. |
| Harshamal Shivbux (M/s.) v. Ramkrishnan Das Sagarmal and others | AIR 1984 RAJ.34 | Mentioned Only | Cited as part of broader discussion; not directly applied to the stay/adjunction issue in this judgment. |
| Abdullakutty v. Abubacker | 1984 KLT 1057 | Mentioned Only | Cited in context but not treated as controlling authority for the decisive issues here. |
| Thomas v. Alexander Vaidyan | 2012 (1) KLT 342 | Mentioned Only | Cited among authorities; not controlling in the ruling. |
| Ravikumar T.K. v. Punjab National Bank and others | 2019 (2) KHC 421 | Mentioned Only | Cited; not foundational to the decision reached. |
| Official Receiver, Krishna at Masulipatnam v Veeranki Samudralu and others | CRP No.502 of 1972 | Mentioned Only | Cited to discuss interim receiver concepts; not determinant for stay order here. |
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Extracted Judgment Text
Exact text extracted from official judgment records.
**“CR”**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
## **THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 302 OF 2018**
**OS 316/2011 OF PRINCIPAL SUB COURT, THIRUVANANTHAPURAM**
## **PETITIONER/S:**
- 1 M/S.ORIENT EXPORTS AND IMPORTS KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001.
- 2 REJIMOL THOMAS TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001.
- 3 T.T. JAMES TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001.
- 4 DR. EAPEN THOMAS TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001.
- 5 SHERLY EAPEN TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001.
- 6 NIRMALA JAMES TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001.
- 7 SERGI JOSEPH THOMAS VECHOOR HOUSE, ST.JUDGE NAGAR, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001.
- 8 JULIEMOL SERGI VECHOOR HOUSE, ST.JUDGE NAGAR, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001.
- 9 THRESSIAMMA ORIENT HOUSE, KUNJALUMMOODU, KARAMANA, THIRUVANANTHAPURAM - 695 001. BY ADVS. SRI.K.V.SADANANDA PRABHU SRI.RENJIT GEORGE
Op (C) No. 1975 of 2020 & con.cases
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## **RESPONDENT/S:**
REENA JOSEPH W/O. ABRAHAM KULANGARA KURIAN, NIKUNJAM, PAYANCHERRY, PERAVOOR ROAD, IRITTY, KANNUR. NOW RESIDING AT BOX NO. 199, DASMAN, 15450, KUWAIT, REPRESENTED BY HER POWER OF ATTORNEY HOLDER SRI. A.V. PAULOSE, S/O. VARKEY, AGED 71 YEARS, RESIDING AT EDAPARYATHIL KUDAMATTOMKARA, AIKKARANADU NORTH VILLAGE, KUNNATHU NORTH VILLAGE, KUNNATHUNADU TALUK, ERNAKULAM DISTRICT - 683 101. BY ADV R.S.KALKURA
THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 305/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
Op (C) No. 1975 of 2020 & con.cases
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## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
## **THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943**
## **OP(C) NO. 305 OF 2018**
**OS 315/2011 OF PRINCIPAL SUB COURT, THIRUVANANTHAPURAM PETITIONER/S:**
1 M/S. ORIENT EXPORTS AND IMPORTS KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001. REP. BY MANAGING PARTNER T.T.JAMES. 2 REJIMOL THOMAS TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001. 3 T.T. JAMES TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001. 4 DR. EAPEN THOMAS TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001. 5 SHERLY EAPEN TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001. 6 NIRMALA JAMES TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001. 7 SERGI JOSEPH THOMAS VECHOOR HOUSE, ST.JUDGE NAGAR, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001. 8 JULIEMOL SERGI VECHOOR HOUSE, ST.JUDGE NAGAR, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM - 695 001. 9 THRESSIAMMA ORIENT HOUSE, KUNJALUMMOODU, KARAMANA, THIRUVANANTHAPURAM - 695 001. BY ADVS. SRI.K.V.SADANANDA PRABHU SRI.RENJIT GEORGE
Op (C) No. 1975 of 2020 & con.cases
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## **RESPONDENT/S:**
ROY JOSEPH S/O. LATE CHERIA ICCARANKUDIYIL JOSEPH,PADAYATTIL HOUSE, NO.6, ULLOOR GARDENS, MEDICAL COLLEGE P.O., THIRUVANANTHAPURAM NOW RESIDING AT BOX NO.199, DASMAN, 15450,KUWAIT, REPRESENTED BY HER POWER OF ATTORNEY HOLDER SRI. A.V.PAULOSE, S/O. VARKEY, AGED 71 YEARS, RESIDING EDAPARYATHIL KUDAMATTOMKARA, AIKKARANADU NORTH VILLAGE, KUNNATHUNADU TALUK, ERNAKULAM DISTRICT-683 101. BY ADVS. SMT.P.ANJANA SMT.R.BINDU SRI.HARISH GOPINATH SRI.R.S.KALKURA SRI.M.S.KALESH
THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
Op (C) No. 1975 of 2020 & con.cases
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## **IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT**
## **THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 306 OF 2018**
**OS 317/2011 OF PRINCIPAL SUB COURT, THIRUVANANTHAPURAM**
## **PETITIONER/S:**
- 1 M/S. ORIENT EXPORTS AND IMPORTS KILLIPALAM, KARAMANA P.O.,THIRUVANANTHAPURAM695001,REPRESENTED BY MANAGING PARTNER T.T.JAMES.
- 2 REJIMOL THOMAS TC 20/1654, KUNJALUMMOODU, KARAMANA P.O.,THIRUVANANTHAPURAM-695001.
- 3 T.T.JAMES TC 20/1654, KUNJALUMMOODU, KARAMANA P.O.,THIRUVANANTHAPURAM-695001.
- 4 DR.EAPEN THOMAS TC 20/1654, KUNJALUMMOODU, KARAMANA P.O.,THIRUVANANTHAPURAM-695001.
- 5 SHERLY EAPEN TC 20/1654, KUNJALUMMOODU, KARAMANA P.O.,THIRUVANANTHAPURAM-695001.
- 6 NIRMALA JAMES TC 20/1654, KUNJALUMMOODU, KARAMANA P.O.,THIRUVANANTHAPURAM-695001.
- 7 SERGI JOSEPH THOMAS VECHOOR HOUSE, ST.JUDGE NAGAR, KILLIPALAM, KARAMANA P.O.,THIRUVANANTHAPURAM-695001.
- 8 JULIEMOL SERGI VECHOOR HOUSE, ST.JUDGE NAGAR,KILLIPALAM, KARAMANA P.O.,THIRUVANANTHAPURAM-695001.
- 9 THRESSIAMMA ORIENT HOUSE, KUNJALUMMOODU, KARAMANA
Op (C) No. 1975 of 2020 & con.cases
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P.O.,THIRUVANANTHAPURAM-695001. BY ADVS. SRI.K.V.SADANANDA PRABHU SRI.RENJIT GEORGE
## **RESPONDENT/S:**
JAIMOLE W/O.ROY JOSEPH, PADAYATTIL HOUSE, NO.6,ULLOOR GARDENS, MEDICAL COLLEGE P.O.,THIRUVANANTHAPURAM FROM EDAPARYATHIL HOUSE, KADAMATTOM P.O., ERNAKULAM DISTRICT, NOW RESIDING AT BOX NO.199,DASMAN, 15450, KUWAIT, REPRESENTED BY POWER OF ATTORNEY HOLDER,SRI.A.V.PAULOSE, S/O.VARKEY, AGED 71 YEARS, RESIDING EDAPARYATHIL, KUDAMATTOMKARA, AIKKARANADU NORTH VILLAGE, KUNNATHUNADU TALUK, ERNAKULAM DISTRICT. BY ADVS. SMT.P.ANJANA SMT.R.BINDU SRI.HARISH GOPINATH SRI.R.S.KALKURA SRI.M.S.KALESH
THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
Op (C) No. 1975 of 2020 & con.cases
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# **IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT**
**THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 737 OF 2019**
**OS 104/2011 OF PRINCIPAL SUB COURT, THIRUVANANTHAPURAM PETITIONER/S:**
1 M/S.ORIENT EXPORTS AND IMPORTS, A UNIT OF ORIENT GROUP, THIRUVANANTHAPURAM, REPRESENTED BY ITS MANAGING PARTNER, KARAMANA P.O., THIRUVANANTHAPURAM - 695 002. 2 T.T.JAMES, AGED 62 YEARS S/O.THOMAS, TC 20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 002. 3 REJIMOL THOMAS, AGED 50 YEARS TC 21/77, ORIENT COMPLEX, KARAMANA P.O., THIRUVANANTHAPURAM - 695 002. 4 DR.EAPEN THOMAS, AGED 56 YEARS T.C.20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 002. 5 SHERLY EAPEN, AGED 53 YEARS T.C.20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 002. 6 NIRMALA JAMES, AGED 54 YEARS T.C.20/1654, KUNJALUMMOODU, KARAMANA P.O., THIRUVANANTHAPURAM - 695 002. 7 SERGI JOSEPH THOMAS, AGED 52 YEARS VECHOOR HOUSE, ST.JUDE NAGAR, KILLIPALAM, KARAMAN P.O., THIRUVANANTHAPURAM - 695 002. 8 JULIEMOL SERGI, AGED 43 YEARS VECHOOR HOUSE, ST.JUDE NAGAR, KILLIPPALAM,
Op (C) No. 1975 of 2020 & con.cases
**==> picture [16 x 9] intentionally omitted <==**
KARAMAN P.O., THIRUVANANTHAPURAM - 695 002. BY ADV K.V.SADANANDA PRABHU
## **RESPONDENT/S:**
MILI SUNIL CHACKO, AGED 43 YEARS, W/O.SUNIL CHACKO. 8D QUEENS WING POINT, SI APARTMENT, KOWDIAR, THIRUVANANTHAPURAM, PIN- 695 003. THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
Op (C) No. 1975 of 2020 & con.cases
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## **IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT**
**THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 1560 OF 2018**
**OS 270/2011 OF PRINCIPAL SUB COURT, THIRUVANANTHAPURAM PETITIONER/S:**
1 T.T.JAMES AGED 60 YEARS AGED 60 YEARS, S/O THOMAS, PARTNER, ORIENT EXPORTS AND IMPORTS, T.C 21/77, ORIENT COMPLEX, KILLIPPALAM, THIRUVANANTHAPURAM-695001. 2 NIRMALA JAMES AGED 54 YEARS, W/O JAMES, W/O JAMES, PARTNER, ORIENT EXPORTS AND IMPORTS, T.C 21/77, ORIENT COMPLEX, KILLIPPALAM, THIRUVANANTHAPURAM-695001. 3 SHERLY EAPEN AGED 52 YEARS, W/O EAPEN, PARTNER,ORIENT EXPORTS AND IMPORTS, T.C 21/77, ORIENT COMPLEX, KILLIPPALAM,THIRUVANANTHAPURAM-695001. 4 REGIMOL THOMAS AGED 45 YEARS, W/O THOMAS, PARTNER, ORIENT EXPORTS AND IMPORTS, T.C 21/77, ORIENT COMPLEX, KILLIPPALAM,THIRUVANANTHAPURAM-695001. 5 JULIEMOL SERGI AGED 42 YEARS, W/O SERGI, PARTNER,ORIENT EXPORTS AND IMPORTS, T.C 21/77, ORIENT COMPLEX, KILLIPPALAM, THIRUVANANTHAPURAM-695001. 6 MS ORIENT EXPORTS AND IMPORTS A PARTNERSHIP FIRM, REPRESENTED BY ITS MANAGING PARTNER,TC 21/77, ORIENT COMPLEX, KILLIPPALAM, THIRUVANANTHAPURAM-695001. BY ADVS. SRI.K.V.SADANANDA PRABHU SRI.RENJIT GEORGE
Op (C) No. 1975 of 2020 & con.cases
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## **RESPONDENT/S:**
1 ABRAHAM GEORGE AGED 50 YEARS, S/O GEORGE, CHERUPUSHPA GIRI,KAIPUZHA NORTH, KULANDA, PATHANAMTHITTA, PIN-689503. 2 INDU ABRAHAHAM AGED 45 YEARS, RESIDING AT THE CHERUPUSHPA GIRI,KAIPUZHA NORTH, KULANADA, PATHANAMTHITTA, PIN-689503. BY ADVS. SRI.K.K.VIJAYAN SRI.G.RANJU MOHAN SRI.K.R.RAJESHKUMAR THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
Op (C) No. 1975 of 2020 & con.cases
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# **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 1906 OF 2018**
**OS 1158/2011 OF PRINCIPAL SUB COURT, THIRUVANANTHAPURAM**
## **PETITIONER/S:**
1 M/S.ORIENT EXPORTS AND IMPORTS (A UNIT OF ORIENT GROUP)REPRESENTED BY ITS MANAGING PARTNER,TC 21/77,ORIENT COMPLEX,KILLIPPALAM, KARAMANA P.O,THIRUVANANTHAPURAM 695 001. 2 T.T JAMES AGED 69 YEARS S/O. LATE THOMAS, RESIDING AT T.C 20/1654,ORIENT HOUSE, KUNJALUMMOODU, KARAMANA P.O,THIRUVANANTHAPURAM 695 001. 3 DR.EAPEN THOMAS AGED 58 YEARS SO. LATE THOMAS RESIDING AT T.C 201654 ORIENT HOUSE, KUNJALUMMOODU, KARAMANA P.O,THIRUVANANTHAPURAM 695 001. 4 SHERLY EAPEN AGED 54 YEARS, RESIDING AT T.C 20/1654,KUNJALUMMOODU, KARAMANA P.O, THIRUVANANTHAPURAM 695 001. 5 NIRMALA JAMES AGED 55 YEARS, RESIDING AT T.C 20/1654,KUNJALUMOODDU, KARAMANA P.O, THIRUVANANTHAPURAM 695 001. 6 SERGI JJOSEPH AGED 52 YEARS, RESIDING AT VECHOOR HOUSE,ST. JUDE NAGAR, KILLIPPALAM, KARAMANA P.O,THIRUVANANTHAPURAM 695 001. 7 JULIEMOL SERGI AGED 42 YEARS RESIDING AT VECHOOL HOUSE, ST. JUDE NAGAR, KILLIPPALAM, KARAMANA P.O, THIRUVANANTHAPURAM 695 001.
Op (C) No. 1975 of 2020 & con.cases
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8 REGIMOL THOMAS AGED 50 YEARS, RESIDING AT TC 21/77, ORIENT COMPLEX,KILLIPPALAM, THIRUVANANTHAPURAM 695 001. BY ADVS. SRI.K.V.SADANANDA PRABHU SRI.RENJIT GEORGE **RESPONDENT/S:** S.WILLIAMS AGED 60 YEARS, S/O. LATE SAMUEL, RESIDING AT CHITHRA, TC 14/415, VIKAS BHAVAN P.O,PALAYAM, THIRUVANANTHAPURAM 695 033. BY ADVS. SAHASRANAMAN P.B. HARIKUMAR T.S. THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
Op (C) No. 1975 of 2020 & con.cases
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# **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 1907 OF 2018**
**OS 919/2011 OF PRINCIPAL SUB COURT, THIRUVANANTHAPURAM**
## **PETITIONER/S:**
|1|M/S.ORIENT BIO-TECH|
|---|---|
||REPRESENTED BY ITS MANAGING PARTNER,TC|
||21/77,ORIENT COMPLEX,KILLIPPALAM, KARAMANA|
||P.O,THIRUVANANTHAPURAM 695 001.|
|2|T.T JAMES AGED 69 YEARS|
||S/O. LATE THOMAS, RESIDING AT T.C|
||20/1654,ORIENT HOUSE, KUNJALUMMOODU, KARAMANA|
||P.O,THIRUVANANTHAPURAM 695 001.|
|3|DR.EAPEN THOMAS AGED 58 YEARS|
||S/O. LATE THOMAS, RESIDING AT T.C|
||20/1654,ORIENT HOUSE, KUNJALUMMOODU, KARAMANA|
||P.O,THIRUVANANTHAPURAM 695 001.|
|4|SHERLY EAPEN|
||AGED 54 YEARS, RESIDING AT T.C|
||20/1654,KUNJALUMMOODU, KARAMANA P.O,|
||THIRUVANANTHAPURAM 695 001.|
|5|NIRMALA JAMES|
||AGED 55 YEARS, RESIDING AT T.C|
||20/1654,KUNJALUMOODDU, KARAMANA|
||P.O,THIRUVANANTHAPURAM 695 001.|
|6|SERGI JJOSEPH|
||AGED 52 YEARS, RESIDING AT VECHOOR HOUSE,ST.|
||JUDE NAGAR, KILLIPPALAM, KARAMANA|
||P.O,THIRUVANANTHAPURAM 695 001.|
|7|JULIEMOL SERGI|
||AGED 42 YEARS,RESIDING AT VECHOOL HOUSE,ST.|
||JUDE NAGAR, KILLIPPALAM, KARAMANA|
||P.O,THIRUVANANTHAPURAM 695 001.|
|8|REGIMOL THOMAS|
||AGED 50 YEARS, RESIDING AT TC 21/77, ORIENT|
Op (C) No. 1975 of 2020 & con.cases
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COMPLEX,KILLIPPALAM, THIRUVANANTHAPURAM 695 001. BY ADVS. SRI.K.V.SADANANDA PRABHU SRI.RENJIT GEORGE
## **RESPONDENT/S:**
S.WILLIAMS AGED 60 YEARS, S/O. LATE SAMUEL, RESIDING AT CHITHRA,TC 14/415,VIKASBHAVAN P.O, PALAYAM, THIRUVANANTHAPURAM 695 033. THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
Op (C) No. 1975 of 2020 & con.cases
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# **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 1972 OF 2020**
**OS 144/2011 OF FIRST ADDITIONAL SUB COURT,**
## **THIRUVANANTHAPURAM**
## **PETITIONER/S:**
1 M/S. ORIENT EXPORTS AND IMPORTS, A UNIT OF ORIENT GROUP, KARAMANA, THIRUVANANTHAPURAM, 695002 KERALA, SOUTH INDIA REPRESENTED BY ITS MANAGING PARTNER, THE 2ND FLOOR DEFENDANT M T VARGHESE, AGED 71 YEARS, S/O LATE THOMAS, RESIDING AT ORIENT HOUSE, KUNJALUMMOODU, KARAMANA P O, THIRUVANANTHAPURAM-695002, THE MANAGING PARTNER (DIED). 2 T T JAMES S/O LATE THOMAS, RESIDIGN AT T C.20/1654, KUNJALUMMOODU, KARAMANA P O, THIRUVANTHAPURAM695002. 3 THOMAS JOSEPH RESIDING AT ORIENT COMPLEX, T C.21/77, KARAMANA P O, THIRUVANANTHAPURAM-695002. 4 JULIEMOL SERGI W/O SHERGI, RESIDING AT ORIENT HOUSE, KUNJALUMMOODU KARAMANA P O, THIRUVANANTHAPURAM695002. 5 REJIMOL THOMAS RESIDING AT ORIENT COMPLEX, TC 21/77, KARAMANA P O, THIRUVANANTHAPURAM-695002. 6 DR EAPEN THOMAS RESIDING AT T C 20/1654, KUNJALUMOODU, KARAMAN P O, THIRUVANANTHAPURAM-695002. 7 SHERLY EAPEN D/O M T VARGHESE, RESIDING AT TC 20/1654, KUNJALUMOODU, KARAMANA P O, THIRUVANANTHAPURAM-695002.
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8 THRESSIAMMA RESIDING AT TC 20/1654, ORIENT HOUSE, KUNJALUMMOODY, KARAMANA P O, THIRUVANANTHAPURAM-695002. 9 NIRMALA JAMES RESIDING AT ORIENT HOUSE, KUNJALUMMOODU, KARAMANA P O, THIRUVANANTHAPURAM-695002. 10 SERGI JOSEPH THOMAS RESIDING AT T C.20/1654, ORIENT HOUSE, KUNJALUMMOODU, KARAMANA P O, THIRUVANANTHAPURAM-695002. BY ADVS. K.SHAJ SRI.RENJIT GEORGE SHRI.JOSSY S. KATTUR SRI.ARUN CHAND SHRI.BHARAT VIJAY P.
## **RESPONDENT/S:**
1 SANTHA ISSAC FLAT NO.5 B, SKYLINE MAPPLE, HEIGHTS, CHALAKUZHY ROAD, PATTO P O, PIN-695004. 2 ALEXANDER ISSAC AGED 48 YEARS D1-202, WHITE HOUSE APARTMENTS, R T NAGAR, BANGALORE-560032. 3 ABHILAS EAPEN ISSAC AGED 42 YEARS FLAT NO.5 B, SKYLINE MAPPLE HEIGHTS, CHALAKUZHY ROAD, PATTOM, THIRUVANANTHAPURAM AT PRESENT RESIDING AT APT GLOBAL MARINE SERVICE, P O BOX-49222, DUBAI. 4 ASHA OOMEN AGED 52 YEARS GIRI NAGAR, COCHIN-682020. THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
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## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 1975 OF 2020**
**OS 542/2011 OF I ADDITIONAL SUB COURT,**
## **THIRUVANANTHAPURAM**
## **PETITIONER/S:**
1 ORIENT BIO TECH A PARTNERSHIP FIRM, REPRESENTED BY ITS MANAGING PARTNER, T.C.21/77, ORIENT COMPLEX, KARAMANA P. O., THIRUVANANTHAPURAM - 695 002. 2 DR. THOMAS JOSEPH THOOMKUZHY (PARTNER) AGED 47 YEARS S/O. T. K. JOSEPH, FORMER ST. JUDE HOSPITAL COMPLEX, KARAMANA P. O., THIRUVANANTHAPURAM - 695 002. 3 REJIMOLE AGED 41 YEARS (PARTNER), D/O. M. T. VARGHESE, ORIENT COMPLEX, TC 21/77, KARAMANA P. O., THIRUVANANTHAPURAM - 695 002. 4 NIRMALA JAMES AGED 37 YEARS (PARTNER), W/O. JAMES T. THOOMPUNKAL, TC 20/1654, ORIENT HOUSE, KARAMANA P. O., THIRUVANANTHAPURAM - 695 002. 5 SHERLY EAPEN AGED 39 YEARS (PARTNER), W/O. EAPEN THOMAS, TC 21/213-1, ST. JUDE NAGAR, KILLIPALAM, KARAMANA P. O. 6 JULIEMOL AGED 55 YEARS (PARTNER), W/O. SERGI THOMAS, TC 21/215-1, ST. JUDE NAGAR, KILLIPALAM, KARAMANA P. O., THIRUVANANTHAPURAM - 695 002. 7 THRESSIAMMA VARGHESE
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W/O. LATE M. T. VARGHESE, TC 20/1654, ORIENT HOUSE, KARAMANA. BY ADVS. K.SHAJ SRI.RENJIT GEORGE
## **RESPONDENT/S:**
K.K.MATHEW AGED 72 YEARS S/O. K. KOSHY, KOCHALUMMOTTILL HOUSE, T. C. 11/0014, KESAVADASAPURAM, PATTOM P. O., THIRUVANANTHAPURAM - 695 004. BY ADVS. SRI.P.ABRAHAM CHERIAN SMT.N.RAJI THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
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## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
## **THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 1976 OF 2020**
**OS 145/2011 OF I ADDITIONAL SUB COURT, THIRUVANANTHAPURAM**
## **PETITIONER/S:**
|1|M/S. ORIENT EXPORTS AND IMPORTS,|
|---|---|
||A UNIT OF ORIENT GROUP, KARAMANA,|
||THIRUVANANTHAPURAM, 695 002 KERALA, SOUTH INDIA|
||REPRESENTED BY ITS MANAGING PARTNER, THE 2ND|
||DEFENDANT M.T. VARGHESE, AGED 71 YEARS, S/O.|
||LATE THOMAS, RESIDING AT ORIENT HOUSE,|
||KUNJALUMMOODU, KARAMANA P.O,|
||THIRUVANANTHAPURAM-695 002, THE MANAGING|
||PARTNER, (DIED REPRESENTED BY T.T. JAMES).|
|2|T.T. JAMES,|
||S/O. LATE THOMAS, RESIDING AT TC. 20/1654,|
||KUNALUMMOODU, KARAMANA P.O, THIRUVANANTHAPURAM-|
||695 002.|
|3|THOMAS JOSEPH,|
||RESIDING AT ORIENT COMPLEX, TC 21/77, KARAMANA|
||P.O, THIRUVANANTHAPURAM-695 002|
|4|JULIEMOL,|
||W/O. SERGI, RESIDING AT ORIENT HOUSE,|
||KUNALUMMOODU, KARAMANA P.O, THIRUVANANTHAPURAM-|
||695 002|
|5|REJIMOL THOMAS,|
||RESIDING AT ORIENT COMPLEX, TC 21/77, KARAMANA|
||P.O, THIRUVANANTHAPURAM-695 002|
|6|DR. EAPEN THOMAS,|
||RESIDING AT TC 20/1654, KUNJALUMMOODU, KARAMANA|
||P.O, THIRUVANANTHAPURAM-695 002|
|7|SHERLY EAPEN,|
||D/O. M.T. VARGHESE, RESIDING AT TC 20/1654,|
||KUNALUMMOODU, KARAMANA P.O, THIRUVANANTHAPURAM-|
||695 002|
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8 THRESSIAMMA, RESIDING AT TC 20/1654, KUNJALUMMOODU, KARAMANA P.O, THIRUVANANTHAPURAM-695 002. 9 NIRMALA JAMES, RESIDING AT ORIENT HOUSE, KUNJALUMMOODU, KARAMANA P.O, THIRUVANANTHAPURAM-695 002. 10 SERGI JOSEPH THOMAS, RESIDING AT TC 20/1654, ORIENT HOUSE, KUNJALUMMOODU, KARAMANA P.O, THIRUVANANTHAPURAM-695 020 BY ADVS. K.SHAJ SRI.RENJIT GEORGE SHRI.JOSSY S. KATTUR SRI.C.IJLAL SRI.ARUN CHAND SRI.JOSEPH MARY DAS SHRI.BHARAT VIJAY P.
## **RESPONDENT/S:**
1 ANANDAVALLI RAMAKRISHNA SAROJAM, SULAKSHAN VILLE, VJRA -F1, NEMOM P.O, THIRUVANANTHAPURAM, PIN-695 020 2 SULAKSHAN SAKYANGA MAHADEV, SULAKSHAN VILLE, VJRA F1, NEMOM P.O, THIRUVANANTHAPURAM, PIN-695 020 THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
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## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE V.G.ARUN**
**FRIDAY, THE 5[TH] DAY OF NOVEMBER 2021 / 14TH KARTHIKA, 1943 OP(C) NO. 3188 OF 2018**
**OS 579/2011 OF FIRST ADDITIONAL SUB COURT,**
## **THIRUVANANTHAPURAM**
## **PETITIONER/S:**
1 T.T JAMES AGED 62 YEARS S/O. THOMAS, PARTNER, ORIENT EXPORTS AND IMPORTS, TC 21/77, ORIENT COMPLEX, KILLIPPALAM, THIRUVANANTHAPURAM, 695 001 2 NIRMALA JAMES, AGED 54 YEARS W/O. JAMES, PARTNER, ORIENT EXPORTS AND IMPORTS, TC 21/77, ORIENT COMPLEX, KILLIPPALAM, THIRUVANANTHAPURAM, 695 001 3 SHERLY EAPEN, AGED 53 YEARS W/O. EAPEN, PARTNER, ORIENT EXPORTS AND IMPORTS, TC 21/77, ORIENT COMPLEX, KILLIPPALAM, THIRUVANANTHAPURAM, 695 001 4 REJIMOL THOMAS, AGED 47 YEARS W/O. JOSEPH THOMAS, PARTNER, ORIENT EXPORTS AND IMPORTS, TC 21/77, ORIENT COMPLEX, KILLIPPALAM, THIRUVANANTHAPURAM, 695 001 5 JULIEMOLSERGI, AGED 43 YEARS W/O. SERGI, PARTNER, PARTNER, ORIENT EXPORTS AND IMPORTS, TC 21/77, ORIENT COMPLEX, KILLIPPALAM, THIRUVANANTHAPURAM, 695 001 6 M/S. ORIENT EXPORTS AND IMPORTS, A PARTNERSHIP FIRM, REPRESENTED BY ITS MANAGING PARTNER, ORIENT EXPORTS AND IMPORTS, TC 21/77, ORIENT COMPLEX, KILLIPPALAM,
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THIRUVANANTHAPURAM, 695 001 BY ADVS. K.V.SADANANDA PRABHU SRI.RENJIT GEORGE
## **RESPONDENT/S:**
RASMI JOHN MATHAI AGED 35 YEARS W/O. SURESH JACOB, MALANCHERUVIL, KAIPUZHA NORTH, KULANADA, PATHANAMTHITTA DISTRICT PIN 689 503. BY ADVS. SRI.K.K.VIJAYAN SRI.G.RANJU MOHAN
THIS OP (CIVIL) HAVING BEEN FINALLY HEARD ON 25.08.2021, ALONG WITH 302/2018 AND CONNECTED CASES, THE COURT ON 05.11.2021 DELIVERED THE FOLLOWING:
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**==> picture [37 x 10] intentionally omitted <==**
## **JUDGMENT**
**Dated this the 5[th] day of November, 2021 [OP(C) Nos.302/2018, 305/2018, 306/2018, 737/2019, 1560/2018, 1906/2018, 1907/2018, 1972/2020, 1975/2020, 1976/2020, 3188/2018]**
**Petitioners are the defendants in various original suits filed by their creditors, seeking recovery of money. The essential common facts are as under;**
**Late M.T.Varghese was the Managing Partner of a business establishment by name 'Orient Timbers'. He diversified his business empire and established new ventures like Orient Biotech, Orient Export and Import, St.Jude Hospital etc. The children and in-laws of M.T.Varghese were made partners of the firms. In connection with the conduct of business by the firms, amounts**
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**were borrowed from various persons. In their written statement filed in the suits filed by the creditors, the defendants, namely the respective business concern and its partners, took up a contention that certain other creditors had instituted O.P.(Insolvency) No.2 of 2011 before the Additional Sub Court, Thiruvananthapuram and therein, the court had passed an order handing over custody of all properties of the petitioners to the interim receiver and hence, the recovery suits are liable to be stayed in terms of Section 30 of the Insolvency Act, 1955 (“the Act”). Based on the contention, the courts below framed the following issue;**
**'Whether the suit is liable to be stayed in view of the pendency of O.P.(Insolvency) No.2 of 2011'.**
**The issue having been answered against the**
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**petitioners/defendants, these original petitions are filed.**
**2. Heard Sri.K.Shaj, learned Counsel for the petitioners and M/s.R.S.Kalkura, K.K.Vijayan and P.B.Sahasranaman, learned Counsel for the respondents.**
**3. Learned Counsel for the petitioners submitted that the objective of the Act is to ensure proportionate distribution of the assets of the debtor among the creditors, without allowing any fraudulent concealment or preference. The Act also provides for consolidation of the claims of the creditors. As such, it would be more beneficial to the creditors to seek relief under the Act, rather than filing individual suits. It is contended that the order of the Insolvency Court handing over custody of the properties to the interim**
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**receiver presupposes an order of adjudication under Section 27 of the Act. Therefore, further proceedings in the suits filed by the respondents are liable to be stayed under Section 30 of the Act. In support of the contention, reliance is placed on the decision in** _**Kanishk steel Industries Ltd v. Annie Sweety [2009 (3) KLT 888]**_ **.**
**4. Learned Counsel for the respondents referred to the objectives of the Act and the relevant provisions to contend that, unless and until an order of adjudication under Section 27 is passed, the creditors can proceed with their suits. According to the learned Counsel, even an order of adjudication under Section 27 by the Insolvency Court, is not an absolute embargo in continuing the suits pending before other courts and the only interdiction is with respect to**
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**execution of the decrees, which will have to await the outcome of the insolvency proceedings. In support of the contention, reliance is placed on the following decisions;**
_**State of Punjab v. Rattan Singh [1964 KHC 545], Harshamal Shivbux (M/s.) v. Ramkrishnan Das Sagarmal and others [AIR 1984 RAJ.34], Abdullakutty v. Abubacker [1984 KLT 1057], Thomas v. Alexander Vaidyan [2012 (1) KLT 342], Ravikumar T.K. v. Punjab National Bank and others [2019 (2) KHC 421].**_
**5. No doubt, the Act is a social legislation intended to protect the interest of creditors as well as honest debtors. The Act provides a machinery for granting relief to the creditors and also the insolvent, by ensuring proportionate distribution of the assets of the debtor among the creditors, without allowing any**
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**fraudulent concealment or preference, and protection to the person of the debtor. The Act does not take away the creditor’s right to seek relief through a regular civil court, but interdicts the civil courts from proceeding after an order of adjudication is passed by the Insolvency Court. For the Insolvency Court to invoke its jurisdiction, there has to be a provable debt of more than Rs.500/- for which the debtor is personally liable and the debtor must have committed an act of insolvency falling under Section 6 of the Act. Once the above conditions are satisfied, the creditor or the debtor can present the insolvency petition under Section 7. On the insolvency petition being presented, it has to be admitted, following the procedure laid down in the Code of Civil Procedure for admission of plaints. Once the petition is**
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**admitted, the insolvency court is bound to pass an order fixing the date for hearing the petitioner, as stipulated in Section 19. While admitting the insolvency petition, the court can appoint an interim receiver for taking immediate possession of the property of the debtor, as provided under Section 20. On the day fixed for hearing the petition, the court shall require proof of the matters enumerated as (a) to (c) in Sub-section (1) of Section 24 and shall also examine the debtor, as to his conduct, dealings and property. The examination should be in the presence of those creditors who have appeared at the hearing and such creditors should also be afforded an opportunity to question the debtor on the above aspects. Section 25 empowers the court to dismiss the insolvency petition filed by the debtor or creditor. If the the petition is not**
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**dismissed, the court is bound to pass an order of adjudication under Section 27, specifying the period within which the debtor has to apply for his discharge. Section 30 comes into play after the court passes an order of adjudication. For convenience Sections 27 and 30 are extracted here under;**
_**“27.Order of adjudication. (1) If the Court does not dismiss the petition, it shall make an order of adjudication, and shall specify in such order the period within which the debtor shall apply for his discharge. (2) The Court may, if sufficient cause is shown, extend the period within which the debtor shall apply for his discharge, and in that case shall publish notice of the order in such manner as it thinks fit.**_
_**30. Stay of pending proceedings. - Any court in which a suit or other proceeding is pending against a debtor shall, on proof that an order of adjudication has been made against him under this Act, either stay the proceeding, or allow it to continue on such terms as such Court may impose.**_
**The other contextually relevant provisions are, Sections 28, dealing with the effect of an order of adjudication, Section 53 stipulating the**
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**duties of court executing the decree with respect to the property taken in execution and Section 58, providing for the appointment of Receiver while passing the order of adjudication or any time thereafter.**
**6. Going by the provisions, after admitting an insolvency petition, it is posted for hearing, for the court to be satisfied about the entitlement of the creditor or the debtor, as the case may be, to present the insolvency petition. If the court is not satisfied with the proof, the insolvency petition has to be dismissed. Otherwise, the court is bound to pass an order of adjudication under Section 27. Once an order of adjudication is passed under Section 27, the court in which any suit or other proceedings is pending against the debtor shall either stay the proceedings or allow it to continue on such terms**
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**as the court may impose.**
**7. The contention of the learned Counsel for the petitioners, based on the decision in** _**Kanishk Steel Industries**_ **, is that, since the Insolvency Court has appointed an interim receiver and has not dismissed the insolvency petition, it has to be presumed that order of adjudication under Section 27 of the Act is in force, attracting the interdiction under Section 30. In** _**Kanishk Steel Industries,**_ **the petitioner was the decree holder in a suit for money and had filed an execution petition and attached certain properties of the judgment debtors. While so, application was filed by the Receiver appointed in the insolvency proceedings initiated at the instance of a Bank to which the properties of the judgment debtor had been mortgaged as security. Based on the Receiver's application,**
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**the execution court stayed the proceedings. That order was impeached before this court by the decree holder. Therein, a question arose as to whether the decree sought to be executed was passed before or after the order of adjudication by the insolvency court. The question was answered in the following manner;**
_**“Having regard to S.27 of the Insolvency Act, it has to be noted that if the Insolvency Court does not dismiss the petition to declare the debtor as insolvent as under S.25 of the Insolvency Act, but proceeds further it will constitute an order of adjudication and that being so, with reference to S.30 of the Act which commands stay of the proceedings of any suit or proceeding pending against a debtor once an order of adjudication has been made against him, the date on which the decree was passed against the debtor may become crucial and relevant in considering whether the executing court can pass any order under S. 53 of the Insolvency Act as regards the charge on the property of the debtor delivered over to the receiver appointed under the insolvency proceedings so as to satisfy the cost of the suit and also the execution expenses by sale of that property of the debtor or an adequate**_
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_**portion thereof. So much so, without an enquiry on the question so involved, by the executing court, it may be inappropriate for this court to pass any order in favour of the petitioner decree holder to confer on him the benefits covered under S.53 of the Insolvency Act as canvassed by his learned counsel.”**_
**The above observation was made in the context of Section 53 of the Act, which casts a duty on the civil court executing a decree, to direct delivery of the property in the possession of the court to the Receiver appointed by the insolvency court, on being informed about the insolvency proceedings. It is hence clear that the observation in** _**Kanishk Steel Industries**_ **is not with respect to the question whether Section 30 will apply prior to an order of adjudication under Section 27.**
**8. There is no merit in the contention that the appointment of an Interim Receiver under Section 20, indicates the passing of an order of**
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**adjudication under Section 30 is also passed. As held by the High Court of Andhra Pradesh in** _**the Official Receiver, Krishna at Masulipatnam v Veeranki Samudralu and others (CRP No.502 of 1972)**_ **, the main object of appointment of an Interim Receiver is to preserve the assets of the debtor and to hand them over to the official receiver when an order of adjudication is passed under Section 27. Till an order of adjudication is passed, the debtor is not an insolvent and continues to be the legal owner of his properties. The appointment of an interim receiver does not have the effect of vesting or transferring his title in the property. Being so, appointment of an interim receiver under Section 20 is not akin to an order of adjudication under Section 27 and not fetter the power of the civil court to proceed with the suit.**
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**For the aforementioned reasons, the original petitions are dismissed. The courts below shall take earnest efforts to dispose of the suits expeditiously.**
**Sd/V.G.ARUN JUDGE**
**Scl/**
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## **APPENDIX OF OP(C) 302/2018**
PETITIONER EXHIBITS
EXHIBIT P1 TRUE COPY OF THE ORDER DATED 10.09.2013 IN I.A.NO.7207/2011 IN O.P. (INSOLVENCY) NO. 2/2011 OF THE ADDITIONAL SUB COURT, THIRUVANANTHAPURAM. EXHIBIT P2 TRUE COPY OF THE WRITTEN STATEMENT IN OS NO. 316/2011 OF THE PRINCIPAL SUB COURT, THIRVANANTHAPURAM DATED 21.12.2012. EXHIBIT P3 TRUE COPY OF THE ORDER DATED 11.01.2018 IN O.S.NO.316/2011 OF THE SUBORDINATE JUDGES COURT, THIRUVANANTHAPURAM DATED 11.01.2018.
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## **APPENDIX OF OP(C) 305/2018**
PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE ORDER DATED 10.09.2013 IN I.A.NO. 7207/2011 IN O.P.(INSOLVENCY) NO. 2/2011 OF THE ADDITIONAL SUB COURT, THIRUVANANTHAPURAM. EXHIBIT P2 TRUE COPY OF THE WRITTEN STATEMENT IN O.S.NO. 315.2011 OF THE PRINCIPAL SUB COURT, THIRUVANANTHAPURAM DATED 21.03.2012. EXHIBIT P3 TRUE COPY OF THE ORDER DATED 16.01.2018 IN O.S.NO. 315/2011 OF THE SUBORDINATE JUDGES COURT, THIRUVANANTHAPURAM.
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## **APPENDIX OF OP(C) 306/2018**
PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE ORDER DATED 10.09.2013 IN I.A.NO.7207/2011 IN O.P. (INSOLVENCY) NO.2/2011 OF THE ADDITIONAL SUB COURT, THIRUVANANTHAPURAM. EXHIBIT P2 TRUE COPY OF THE WRITTEN STATEMENT IN OS NO.317/2011 OF THE PRINCIPAL SUB COURT, THIRUVANANTHAPURAM. EXHIBIT P3 TRUE COPY OF THE ORDER DATED 11.01.2018 IN O S NO.317/2011 OF THE SUBORDINATE JUDGES COURT, THIRUVANANTHAPURAM.
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## **APPENDIX OF OP(C) 1560/2018**
PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE ORDER DATED 10.09.2013 IN I.A NO.7207/2011 IN OP(INSOLVENCY) NO.2/2011 OF THE ADDITIONAL SUB COURT, THIRUVANANTHAPURAM. EXHIBIT P2 TRUE COPY OF THE WRITTEN STATEMENT IN O.S NO.270/2011 OF THE PRINCIPAL SUB COURT, THIRUVANANTHAPURAM DATED 17.03.2012. EXHIBIT P2(A) TRUE COPY OF THE ADDITIONAL WRITTEN STATEMENT IN O.S NO.270/2011 OF THE PRINCIPAL SUB COURT, THIRUVANANTHAPURAM. EXHIBIT P3 TRUE COPY OF THE ORDER DATED 23.5.2018 IN O.S NO.270/2011 OF THE SUBORDINATE JUDGES COURT, THIRUVANANTHAPURAM DATED 11.1.2018.
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## **APPENDIX OF OP(C) 1906/2018**
PETITIONER EXHIBITS EXT.P1: TRUE COPY OF HE ORDER DATED 10/09/2013 IN I.A.NO.7207/2011 IN OP.(INSOLVENCY) NO.2/2011 OF THE ADDITIONAL SUB COURT, THIRUVANANTHAPURAM EXT.P2: A TRUE COPY OF THE WRITTEN STATEMENT IN O.S.NO.1158/2011 OF THE PRINCIPAL SUB COURT, THIRUVANANTHAPURAM EXT.P2(A): A TRUE COPY OF THE ADDITIONAL WRITTEN STATEMENT IN O.S.NO.1158/2011 OF THE PRINCIPAL SUB COURT, THIRUVANANTHAPURAM EXT.P3: TRUE COPY OF THE ORDER DATED 19/06/2018 IN O.S.NO.1158/2011 OF THE SUBORDINATE JUDGES COURT, THIRUVANANTHAPURAM DATED 11/01/2018
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## **APPENDIX OF OP(C) 1907/2018**
PETITIONER EXHIBITS
EXHIBIT P1 TRUE COPY OF THE ORDER DATED 10/09/2013 IN I.A NO. 7207/2011 IN O.P (INSOLVENCY) NO. 2/2011 OF THE ADDITIONAL SUB COURT, THIRUVANANTHAPURAM EXHIBIT P2 TRUE COPY OF I.A NO. 1215/2016 IN O.S NO. 919/2011 FILED BY THE PETITIONERS EXHIBIT P3 TRUE COPY OF THE ORDER DATED 19/06/2018 IN O.S NO. 919/2011 OF THE SUBORDINATE JUDGES COURT, THIRUVAANTHAPURAM DATED 11/1/2018.
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## **APPENDIX OF OP(C) 1972/2020**
## PETITIONER EXHIBITS
|EXHIBIT P1|THE TRUE COPY OF THE PLAINT FILED BY|
|---|---|
||THE ORIGINAL PLAINTIFF IN OS|
||NO.144/2011 ON THE FILES OF THE 1ST|
||ADDITIONAL SUBORDINATE JUDGES COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P2|THE TRUE COPY OF ORDER DATED|
||10/09/2013 IN IA NO.7207/2011 IN OP|
||INSOLVENCY) NO.2/2011 OF THE|
||ADDITIONAL SUB COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P3|THE TRUE COPY OF WRITTEN STATEMENT|
||FILED BY DEFENDANTS 1 TO 6 IN OS|
||144/2011 ON THE FILES OF THE 1ST|
||ADDITIONAL SUB COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P4|THE TRUE COPY OF WRITTEN STATEMENT|
||FILED BY THE DEFENDANTS 7 TO 11 IN OS|
||NO.144/2011 ON THE FILES OF THE 1ST|
||ADDITIONAL SUBORDINATE JUDGES COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P5|THE TRUE COPY OF IA NO.1363/2018 IN OS|
||NO.144/2011 FILED BY THE PETITIONERS.|
|EXHIBIT P6|THE TRUE COPY OF ORDER DATED|
||09/11/2020 IN OS NO.144/2011 OF THE|
||1ST ADDITIONAL SUBORDINATE JUDGES|
||COURT, THIRUVANANTHAPURAM.|
|EXHIBIT P7|THE TRUE COPY OF ORDER DATED|
||02/02/2018 IN OP(C) NO.302/2018.|
|EXHIBIT P8|THE TRUE COPY OF ORDER DATED|
||30.11.2018 IN OP(C) NO.3188/2018.|
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## **APPENDIX OF OP(C) 1975/2020**
|PETITIONER|EXHIBITS|
|---|---|
|EXHIBIT P1|THE TRUE COPY OF THE PLAINT IN|
||O.S.NO.542/2011 ON THE FILES OF THE|
||1ST ADDITIONAL SUBORDIATE JUDGES|
||COURT, THIRUVANANTHAPURAM.|
|EXHIBIT P2|THE TRUE COPY OF ORDER DATED|
||10.09.2013 IN I.A.NO.7207/2011 IN O.P.|
||(INSOLVENCY) NO.2/2011 OF THE|
||ADDITIONAL SUB COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P3|THE TRUE COPY OF WRITTEN STATEMENT|
||FILED BY THE DEFENDANTS IN OS 542/2011|
||ON THE FILES OF THE 1ST ADDITIONAL SUB|
||COURT, THIRUVANANTHAPURAM.|
|EXHIBIT P4|THE TRUE COPY OF WRITTEN STATEMENT|
||FILED BY THE ADDITIONAL 8TH DEFENDANT|
||IN OS 542/2011 ON THE FILES OF THE 1ST|
||ADDITIONAL SUBORDINATE JUDGES COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P5|THE TRUE COPY OF ORDER DATED|
||04.11.2020 IN OS NO.542/2011 OF THE|
||1ST ADDITIONAL SUBORDINATE JUDGES|
||COURT, THIRUVANANTHAPURAM.|
|EXHIBIT P6|THE TRUE COPY OF THE ORDER DATED|
||02.02.2018 IN O.P.(C) NO.302/2018.|
|EXHIBIT P7|THE TRUE COPY OF THE ORDER DATED|
||30.11.2018 IN O.P.(C) NO.3188/2018.|
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## **APPENDIX OF OP(C) 1976/2020**
## PETITIONER EXHIBITS
|EXHIBIT P1|THE TRUE COPY OF THE PLAINT FILED BY|
|---|---|
||THE ORIGINAL PLAINTIFF IN O.S. NO.|
||145/2011 ON THE FILES OF THE 1ST|
||ADDITIONAL SUBORDINATE JUDGES COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P2|THE TRUE COPY OF ORDER DATED|
||10.09.2013 IN I.A NO. 7207/2011 IN|
||O.P. (INSOLVENCY), NO. 2/2011 OF THE|
||ADDITIONAL SUB COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P3|THE TRUE COPY OF WRITTEN STATEMENT|
||FILED BY DEFENDANTS 1 TO 6 IN OS|
||145/2011 ON THE FILES OF THE 1ST|
||ADDITIONAL SUB COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P4|THE TRUE COPY OF WRITTEN STATEMENT|
||FILED BY THE DEFENDANTS 7 TO 11 IN O.S|
||NO. 145/2011 ON THE FILES OF THE 1ST|
||ADDITIONAL SUBORDINATE JUDGES COURT,|
||THIRUVANANTHAPURAM.|
|EXHIBIT P5|THE TRUE COPY OF I.A. NO. 1361/2018 IN|
||O.S. NO. 145/2011 FILED BY THE|
||PETITIONERS.|
|EXHIBIT P6|THE TRUE COPY OF ORDER DATED|
||09.11.2020 IN O.S NO. 145/2011 OF THE|
||1ST ADDITIONAL SUBORDINATE JUDGES|
||COURT, THIRUVANANTHAPURAM.|
|EXHIBIT P7|TRUE COPY OF THE ORDER DATED|
||02.02.2018 IN OPC NO. 302/2018|
|EXHIBIT P8|TRUE COPY OF THE ORDER DATED|
||30.11.2018 IN O.P(C) NO. 3188/2018|
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## **APPENDIX OF OP(C) 3188/2018**
PETITIONER EXHIBITS
EXHIBIT P1 TRUE COPY OF THE ORDER DATED 10/09/2013 IN I.A NO. 7207/2011 IN O.P (INSOLVENCY) NO. 2/2011 OF THE ADDITIONAL SUB COURT, THIRUVANANTHAPURAM EXHIBIT P2 TRUE COPY OF THE WRITTEN STATEMENT IN O.S NO. 579/2011 OF THE PRINCIPAL SUB COURT, THIRUVANANTHAPURAM DATED 21/12/2012 EXHIBIT P2 TRUE COPY OF I.A NO. 2335/2016 IN O.S NO. 579/2011 FILED BY THE PETITIONERS EXHIBIT P3 TRUE COPY OF THE ORDER DATED 11/10/2018 IN O.S NO. 579/2011 OF THE PRINCIPAL SUBORDINATE JUDGES COURT, THIRUVANANTHAPURAM
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