# 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-163251
- **Pages:** 2

## 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.
204
In case where the order of adjudication is annulled or settlement is made with
creditors out of court at an early stage there may not be enough material before the court
to enable it to arrive at a clear decision. In such cases, scheduled debts can generally be
taken the maximum limit of the ―gross assets‖ while the actual work done by the Official
Receiver should be taken as the primary factor in determining the amount of commission
within the limits prescribed in the notification mentioned above.
3.
The salary of a Karinda appointed with the approval of the court for the proper
administration of the insolvent's property is a proper charge on the insolvent's estate.
Thus, where the Karinda employed by the Official Receiver supervises the property of
more insolvents than one, his salary can be proportionately borne by all the insolvent
estates concerned. But no portion of the Karinda's salary should be charged to an estate,
which has no movable or immovable property requiring supervision.
G.L. No. 971/11H-1(14) dated 21st February, 1928
The provisions of rule 16 of the rules contained in Appendix 17 (J) of the General
Rules (Civil), 1957, should always be observed by Insolvency Courts. Even where the
estates are small, a head clerk or vakil should be appointed to audit the accounts of those
estates for the joint fees to be paid out of all the estates. Whenever there is a receiver, an
auditor should be appointed. When estates are large the Examiner of Local Fund
Accounts should be requested to depute an auditor to audit the accounts.
G.L. No. 30/47-17(4) dated 28th April, 1937 read with Government of India
Letter No. F.224/37/Judl. dated 23rd March, 1937 and
G.L. No. 37-47-17(18) dated 11th December, 1937

Presiding officers of subordinate courts should appoint or recommend for
appointment only registered accountants to audit the accounts of public companies.

A copy of the register of accountants entitled to practice as auditors of companies
can be obtained from the Manager of Publications, Central Publication Branch, Civil
Lines, Delhi on payment. The charges should be met from the departmental budget.
C.L. No. 65/VIIIb-165 dated 23rd July, 1959

The Government of India has under notification No.C.S.R. 663, dated the 29th
May, 1959, published on page 803 of Part II, section 3, sub-section (i) of the Gazette of
India, dated the 6th June, 1959, empowered all district courts in U.P. to exercise
jurisdiction conferred upon the High Court under the following sections of Indian
Companies Act, 1956:

Section 75 -
Return as to allotments.

Section 89 -
 Termination of disproportionately excessive voting rights in
existing companies.

Section 113 -
Limitation of time for issue of certificates.

Section 118 -
Right to obtain copies of and inspect trust deed.

Section 141 -
Rectification by Court of register of charges.

Section 144 -
Right to inspect copies of instruments creating charges and
companies register of charges.