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NOOR MUHAMMAD ADAMJI versus MUHAMMAD SAEED


Official Assignee by the Examiners, whose term was allowed 2 years ago before the application where the debtor did not hold the account of the Chief Court Rules, 620 (3) of such 2 year (s).
P L D 1961 (W. P.) Karachi 706

Before A. S. Farooqi, J

NOOR MUHAMMAD ADAMJI‑Debtor‑Petitioner

Versus

MUHAMMAD SAEED‑Creditor

Insolvency Petition No. 2 of 1959, decided on 3rd October 1960.

Insolvency‑

Accounts of debtor‑Examination by Official Assignee, of period prior to 2 years preceding application--- Allowed where debtor had kept no accounts of such 2 years‑(Sind) Chief Court Rules, r. 620 (3).

Sadullah Abbasi for Debtor.

Naimuddin for Creditor.

Date of hearing: 3rd October 1960.

ORDER

The order of adjudication in this case was passed on 14‑1‑59 and on the application of the debtor a public examination was ordered. It was riot possible For the Official Assignee to look into the account books of the two years next preceding the date of the application for the simple season that the debtor had maintained no account books of that period and he explained it by saying that he had done no business in that year. Account' books of the period prior to that were available but an objection was taken on behalf of the debtor that the creditor was not entitled to probe into that, because the normal period provided under rule 620, sub‑clause (3), Chief Court Rules, is 2 years. 1n these circumstances the Official Assignee has made a reference to the Court which has power under the provision of sub‑clause (3), rule 620 to order investigation of the accounts of a period longer than 2 years in a fit case. I consider this to .be proper case in‑which a departure should be made from the normal rule which .is provided by sub- clause (3) of rule 620. This rule and the other provisions of the Act contemplate the keeping of accounts by the debtor so that the Official Assignee or the Court has an opportunity of looking into the manner in which the debtor has done his business. 1f the debtor in this case had maintained account for 2 years next preceding the making of the application there would have been no justification for extending the period of the probe. In this case, however, there were no such accounts. May be that the debtor has really done no business but the decree of the creditor in this case relates to a period of business prior to 2 years next before the filing of the application and therefore it is necessary to allow the creditor an opportunity of questioning the debtor' with regard to the accounts of the relevant period, namely, to which the debt in question belongs. The questioning of the accounts is not to be at random or roaming. If it appears to the Official Assignee that the purpose of the examination is not as' it should be within the scope of the inquiry, it will be open to him to make a reference back to the Court with his observation. I, therefore, send these proceedings back to the Official Assignee for the continuation of the public examination with regard to the accounts of the debtor, of the relevant period which has been mentioned above.

S. B. Reference answered.

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