High Court Kerala High Court

T.M.Sebastian vs K.L.Constantine on 3 June, 2009

Kerala High Court
T.M.Sebastian vs K.L.Constantine on 3 June, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 13841 of 2009(O)


1. T.M.SEBASTIAN, S/O MATHAI,
                      ...  Petitioner

                        Vs



1. K.L.CONSTANTINE,
                       ...       Respondent

2. STATE BANK OF INDIA,

3. FEDERAL BANK LTD.,

                For Petitioner  :SRI.JOHNSON MANAYANI

                For Respondent  :SRI.P.GOPINATH

The Hon'ble MR. Justice S.S.SATHEESACHANDRAN

 Dated :03/06/2009

 O R D E R
                   S.S.SATHEESACHANDRAN, J.
                   -----------------------------------
                   W.P.(C).No.13841 of 2009 - O
                    ---------------------------------
                Dated this the 3rd day of June, 2009

                           J U D G M E N T

This writ petition is filed under Article 227 of the

Constitution of India seeking the following reliefs:

“i) To call for the records leading to Exts.P1 to P7

and to issue appropriate orders setting aside Ext.P6

order and confirming Ext.P4 order passed by the

learned Sub Judge in Ext.P3 proceedings.

ii) Declare that Ext.P4 order is legally sustainable

and the modification passed by the learned Sub Judge,

Pala as per Ext.P6 is legally unsustainable”.

2. Petitioner has initiated insolvency proceedings as

I.P.No.3/2009 to declare the 1st respondent as an insolvent

before the Sub Judge, Pala. Petitioner also moved an application

under Order XXXIX Rule 1 CPC to restrain the respondent from

slaughter tapping the rubber trees in his property which was

separately scheduled. The learned Sub Judge initially passed an

ex-parte order of injunction. Respondent on entering appearance

filed objection to this I.A. contending that the property scheduled

W.P.(C).No.13841 of 2009 – O

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was already under order of attachment before judgment in a suit

filed by the very same petitioner. After hearing both sides, the

learned Sub Judge passed Ext.P6 order modifying the order of

injunction permitting the respondent to slaughter the rubber

trees, but prohibiting him from cutting and removing other trees

in his property. Impeaching the correctness of that order, the

petitioner has filed the above writ petition invoking the

supervisory jurisdiction of this Court under Article 227 of the

Constitution of India submitting that the order is not proper and

legal.

3. I heard the counsel on both sides.

4. A preliminary objection is raised by the learned

counsel for the respondent that the writ petition is not

maintainable as the petitioner has alternative efficacious remedy

by way of statutory appeal under Section 79 of the Insolvency

Act. Resisting that challenge learned counsel for the petitioner

invited my attention to Ext.P7 judgment passed by this Court in

an insolvency proceedings. I find that Ext.P7 judgment was

passed by this Court in respect of a proceedings where the

W.P.(C).No.13841 of 2009 – O

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procedural matter was involved and not a substantive right of a

party. The application moved under Order XXXIX Rule 1 CPC by

the petitioner for injunction is not one concerning the procedure

but depend upon the substantive right of the petitioner to claim

such an injunction against the respondent who is sought to be

declared as insolvent. Section 79 of the Insolvency Act reads

thus:

“79. Appeals:-

(1) The debtor, any creditor, the receiver or

any other person aggrieved by a decision come into or

an order made in the exercise of insolvency jurisdiction

by a Court subordinate to a District Court may appeal

to the District Court and the order of the District Court

upon such appeal shall be final:

Provided that the High Court, for the purposes of

satisfying itself that an order made in any appeal

decided by the District Court wasaccording to law, may

call for the case and pass such order with respect

there to as it thinks fit;

Provided further that any such person aggrieved

by a decision of the District Court on appeal from a

decision of a subordinate Court under section 4 may

appeal tot he High Court on any of the grounds

mentioned in sub-section (1) of section 100 of the

W.P.(C).No.13841 of 2009 – O

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Code of Civil Procedure, 1908.

(2) Any such person aggrieved by any such decision

or order of a District Court as is specified in Schedule

I, come to or made otherwise than in appeal from an

order made by a Subordinate Court, may appeal to the

High Court.

(3) Any such person aggrieveda by any other other

order made by a District Court otherwise than in

appeal from an order made by a subordinate Court

may appeal to the High Court by leave of the District

Court or of the High Court.

(4) The periods of limitation for appeals to the

District Court and to the High Court under this section

shall be thirty days and ninety days, respectively.

5. There cannot be any doubt as against the order

passed under Order XXXIX Rule 1 CPC in invoking proceedings

the remedy is by way of an appeal as provided under Section 79

of the Insolvency Act. In Narayana Panicker v. Kunju Pennu

and Others (1978 KLT 311) it is made clear that Section 79 of

the Insolvency Act is exhaustive as regard right of appeal, forum

of appeal, the subject of appeal and the period of limitation

W.P.(C).No.13841 of 2009 – O

5

within which the appeal has to be preferred. The petitioner is

having a right of statutory appeal to challenge Ext.P6 order

before the appropriate forum and the writ petition is therefore

found to be not entertainable. Without prejudice to the right of

the petitioner to prefer an appeal against Ext.p6 order as

provided by the Insolvency Act, if so advised, the writ petition is

dismissed. Operation of Ext.P6 shall be kept in abeyance for a

period of one week to enable the petitioner to prefer an appeal

against that order as provided under Section 79 of the Insolvency

Act.

Subject to the above observation, this writ petition is

dismissed.

S.S.SATHEESACHANDRAN,
JUDGE.

bkn/-