The Hindu : HC declares AIADMK MLA insolvent

Online edition of India's National Newspaper
Saturday, May 31, 2003

Southern States

Southern States - Tamil Nadu

HC declares AIADMK MLA insolvent

By A. Subramani

CHENNAI MAY 30. In an interesting verdict, the Madras High Court has declared the Madhurantagam AIADMK MLA, P. Vasudevan, insolvent.

The order was passed by Justice A. Ramamurthi, allowing a petition from the creditor, P.G. Venkataramani, who contended that the MLA had failed to pay Rs. 68,805 towards purchase of electrical goods, despite a civil court decree followed by insolvency notices from the High Court.

"Mr. Vasudevan neither complied with the insolvency notice nor filed any application to set it aside, even though a 35-day period specified for compliance has already lapsed. The sum due as per the notice is Rs. 89,196.25," observed Mr. Justice Ramamurthi.

"It is clear from the evidence of the petitioner-creditor as well as documents that even after the decree (issued by the City Civil Court, Chennai) the MLA has not paid the amount. He has committed an act of insolvency. Hence the petition is allowed and the respondent adjudicated as insolvent.''

Vesting possession of the legislator's `estate' with the official assignee of the court, the judge directed the official to complete the formalities within a year. The MLA is the proprietor of Sri Venkateswara Modern Rice Mill in Cheyyur taluk.

According to the petitioner-creditor and partner of Fair-N-Deal, Mr. Venkataramani, the legislator purchased electrical goods from his shop on March 31, 1998.

As he failed to pay for the goods, Mr. Venkataramani filed a suit and it was decreed in his favour on September 10, 2001.

As Mr. Vasudevan did not pay the sum even thereafter, the petitioner moved the High Court on June 20, 2002 for issue of insolvency notice. But the MLA neither paid the sum nor moved a plea for setting aside the civil court decree. "Therefore, he committed an act of insolvency within the meaning of Section 9(2) of the Presidency Towns Insolvency Act, III of 1909," the petitioner said.

Among other things, Mr. Venkataramani prayed for adjudicating the MLA insolvent; to direct that his estate be vested with the official assignee; and to order that the case cost be paid by the official assignee from and out of the `estate'.

Printer friendly page
Send this article to Friends by E-Mail

Southern States

Stories in this Section

Girls continue to outshine boys

List of toppers in standard X

June 6 last date for applying for re-totalling

Subject-wise rank holders

Tirunelveli stays at the top

Chennai Corpn. seeks to reclaim land `encroached on by Karunanidhi'

NHRC notice to magistrate on child labour

Virudhunagar-Rajapalayam line fit for operations: Anand

Fast track soon to clear IT building projects

`CMDA petition should have been posted before division bench'

HC declares AIADMK MLA insolvent