Tag: Section 41

In a case of insolvency proceeding between ‘A’ and ‘B’, the court of competent jurisdiction adjudged ‘A’ as an insolvent. Thereafter ‘C’ another creditor filed a case against ‘A’ for recovery of the loan amount. What is the legal status of the judgment given by the court between ‘A’ and ‘P’? Is it binding on ‘C’? Discuss.

Facts of the Case An insolvency proceeding was initiated between ‘A’ (debtor) and ‘B’ (creditor) before a court of competent jurisdiction. After due consideration, the […]