AIR 1964 ANDHRA PRADESH 498

Andhra Pradesh High Court

Hon'ble Judge(s): Gopal Rao Ekbote , J

Provincial Insolvency Act (5 of 1920) , S.79(2), S.8— Adjudication of Partnership Firm - Court can pass an order under R.28 of the Rules framed by the High Court under the Act, even though there is no specific provision in the Act. Even though there is no specific provision to the Provincial Insolvency Act corresponding to Ss. 11(d) and 99 of the Presidency Towns Insolvency Act, it is implied from the provisions of R. 28 framed by the High Count under S. 79(2)(c), Provincial Insolvency Act, that a firm can be adjudicated insolvent on the ground of the Joint act of insolvency of the partners in relation to the partnership property. Section 79(2)(c) of the Act provides for rules being made by the High Court as to the procedure to be followed where the debtor is a firm. The sub-rules 3 and 4 of Rule 28 framed under the provisions of Sec. 79(2)(c) imply on the lines of S. 99 Presidency Towns Insolvency Act that the proceeding under the Provincial Insolvency Act can be taken in the name of a partnership firm, it is true that sub-rule 5 of R. 28 says that an order of adjudication shall be made against the partners individually. But that does not imply that the partnership firm cannot be adjudicated insolvent because such construction would not only be against the clear language- of sub-rules 3 and 4 of the R. 28 but it would go contrary to S. 8 of t....