# sentence, which is quoted above the following

- **Citation:** C.L. No. 67/R
- **Court:** Allahabad High Court
- **Decided:** 1917-03-21
- **Case number:** C.L. No. 67/R
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/sentence-which-is-quoted-above-the-following-163250
- **Pages:** 1

## Text

203
In the circumstance we amend the decree of the lower court by substituting for the
sentence, which is quoted above the following:
―It is ordered and declared that the marriage between the petitioner and the
respondent is dissolved this decree being subject to confirmation by the High
Court of Judicature at Allahabad.‖
(xiv) Insolvency proceedings and company matters
G.L. No. 713/67-7 dated 21st March, 1917
The attention of District Judges is called to the importance, in insolvency
proceedings, of settling the schedule of creditors at as early a stage as possible.
C.L. No. 67/R dated 27th September, 1949
1.
No hard and fast definition of the term ―gross assets‖ occurring in Judicial (Civil)
Department notification no. 6240/VII-540-46, dated 23 November, 1950, reproduced as
Appendix 17(ii) of General Rules (Civil), 1957 can be given, as the presiding officers
will always be in the best position to adjudge the amount of gross assets according to the
circumstances of each case. Generally speaking ―gross assets realized by the Official
Receiver‖ will be the total realization made by him from sale of the property- movable
and immovable-belonging to the insolvent. If any property has been wrongly attached
and has to be released or having been sold the money has to be refunded, it would not be
a realization of the assets of the insolvent and should not be considered to form part of
the gross assets realised by the Official Receiver. Where at the instance of the creditors
or informants, the Official Receiver attaches any property, which is adjudged not to
belong to the insolvent, he cannot be allowed any remuneration on the value of that
property either out of the insolvent's estate or from the property itself. The Official
receiver may, however, make an arrangement with the creditors or informants, with the
sanction of the Insolvency Judge, for reimbursement of the expenses incurred by him and
for meeting his fees in such cases, the term ―gross assets‖ does not also include monies
not belonging to the insolvent, e.g., moneys deposited with the Official Receiver as
security or in payment of costs of litigation, or amounts of dividends returned undelivered
and re-deposited in the insolvents funds.
2.
Clause (2) of the Government notification mentioned above is general and gives
full discretion to the Insolvency Court in allowing additional remuneration to the Official
Receiver where the order of adjudication is annulled or the insolvent makes a settlement
with his creditors out of court. But the discretion so exercised should not be arbitrary.
The presiding officer will have in such cases, before awarding remuneration, to form an
approximate idea of the time spent and the labour put in by the Official Receiver over the
case and the amount of gross assets which could have been realized by him had the
proceeding not come to an end by the annulment of the order of adjudication or by a
settlement out of court. The amount of gross assets which could have been realized by the
Official Receiver will depend upon the facts of each case and will have to be determined
by the court on consideration of all the factors including the debts shown in the
application, the debts claimed by the creditors, the amount of scheduled debts and the
assets, alleged or established, of the insolvent.