Provincial Insolvency Act

Querist : Anonymous (Querist) 20 December 2010 This query is : Resolved
Respected Seniors,

One Mr. 'X' borrowed some amount from Mr, 'Y' and registered a deed of Agreement to Sale cum GPA with regarding to his property to Mr. 'Y'. his property. In the said deed Mr. 'X' admitted that he received total consideration of the said property and given all rights with regarding to his propety (ie. Possession, interest, title) to Me. 'Y' in the year 2008. There in Mr.'X' admitted that Mr. 'Y' can execute sale deed on behalf Mr. 'X'. in the name of others.

After 2 years Mr. 'Y' executed a registered sale deed in his favour.

subsequent to the date of sale deed and with in 90 from the said sale deed Mr. 'X' filed a petition under Provincial Insolvency Act to set aside the sale deed which was executed by Mr.'Y' in his favour.

In the said petition Mr. X taken a defence that in the year 2008 while he was in intoxication Mr. 'Y' obtained some signatures in the emply stamp pepers and Mr. 'Y' played fraud on him.

In the above circumstances what are the remedies available to the Mr.'Y'.

Thanking You in advance.

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Y V Vishweshwar Rao (Expert) 20 December 2010
In the Insolvency Petition the main relief will be to declare the X as insolvent , the same will be first considered by the Court , if X can establish that he is insolvent X will be declared as insolvent - the original Relief - declaring sales as invalid or fraud- all are only ancillary - with X declaration as insolvent.

For any fraud and execution of Deed under Intoxication / influence /to be declared in a Civil Suit - independently