{"id":288014,"date":"2023-03-27T17:30:19","date_gmt":"2023-03-27T12:00:19","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=288014"},"modified":"2023-04-03T14:13:29","modified_gmt":"2023-04-03T08:43:29","slug":"provincial-insolvency-act-can-the-insolvency-court-adjudicate-upon-validity-of-sale-deed-without-section-53-application-andhra-pradesh-high-court-declines-legal-news-legal-research-updates","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/03\/27\/provincial-insolvency-act-can-the-insolvency-court-adjudicate-upon-validity-of-sale-deed-without-section-53-application-andhra-pradesh-high-court-declines-legal-news-legal-research-updates\/","title":{"rendered":"Can the Insolvency Court adjudicate upon the validity of Sale Deed without Section 53 application under Provincial Insolvency Act? Andhra Pradesh High Court answers"},"content":{"rendered":"<p><script type=\"text\/javascript\">\n\tdocument.title = 'Insolvency Court cannot adjudicate upon sale deed: Andhra Pradesh HC | SCC Blog'\n\tdocument.querySelector('meta[name=\"description\"]').setAttribute(\"content\", \"Provincial Insolvency Act- Andhra Pradesh High Court held that Insolvency Court cannot adjudicate upon the validity of sale deed.\");\n<\/script><\/p>\n<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><b>Andhra Pradesh High Court:<\/b> While exercising its civil revision jurisdiction, the single judge bench of Bandaru Syamsunder J., held that the Insolvency Court cannot adjudicate upon the validity of Sale Deed and directs the Official Receiver to cancel the same without the application under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001523946\">53<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002927375\">Provincial Insolvency Act, 1920<\/a> (&#8216;1920 Act&#8217;).<\/p>\n<p style=\"margin-bottom: 3%;\">In the matter at hand, the petitioner\/creditors challenged the Order passed by the Additional District Judge, Tirupati under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001523983\">9<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002927375\">1920 Act<\/a> which had confirmed the Orders passed by the Additional Senior Civil Judge, Tirupati wherein respondents were declared insolvents and the Official Receiver were directed to take over the charge of the scheduled property for proper administration by cancelling the Sale Deeds dated 16-09-2002 and 19-09-2002 executed by respondents, in favour of the petitioners to allegedly evade the debt due to them, which amounted to the act of insolvency.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court navigated through Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001523946\">53<\/a> and <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001523947\">54<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002927375\">1920 Act<\/a> which made it clear that when a transferor is adjudged as insolvent on a petition presented within two years after the date of the transfer, it would be held as voidable against the Receiver and may be annulled by the Court, which indicated that a separate petition had to be filed by the Official Receiver before the Insolvency Court for annulling the sale. Only then the Insolvency Court could pass an Order annulling the Sale Deed and accordingly the Official Receiver could further take action, addressing letter to the concerned authorities for cancellation of the Sale Deed.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court however, noted that in the present case the Insolvency Court had directed the Official Receiver to take steps to cancel the Sale Deeds in the name of the petitioners without a separate application for annulment which was against the provisions of Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001523946\">53<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002927375\">1920 Act<\/a>.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court stated that the Orders passed by the Insolvency Court ordering the Official Receiver to take steps to cancel the Sale Deeds, which were not in conformity with Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001523946\">53<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002927375\">1920 Act<\/a> was neither sustainable in law nor in facts.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court observed that the Appellate Court had failed to appreciate the facts and erroneously confirmed the Orders passed by the Insolvency Court which were liable to be set aside.<\/p>\n<p style=\"margin-bottom: 3%;\">With the above observation, the Court set aside the Order passed by the Additional Senior Civil Judge, which was confirmed by the Additional District Judge, Tirupati. According to the powers conferred under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001523965\">68<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002927375\">1920 Act<\/a>, the Court set aside the Order passed by the Official Receiver cancelling the Sale Deed. Further directed that the petitioners were at liberty to file an appropriate petition before the Insolvency Court to revive the cancelled Sale Deed.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">R. Asalatha v Manikonda Kuppaswamy Naidu, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/641pMPzK\">2023 SCC OnLine AP 447<\/a>, decided on 28-02-2023<\/span>]<\/p>\n<hr\/>\n<p>Advocates who appeared in this case :<\/p>\n<p style=\"margin-left: 18pt;\">For the petitioner- Advocate Vivekananda Virupaksha;<\/p>\n<p style=\"margin-left: 18pt;\">For the respondent- Advocate P. Hemachandra.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p><i>The Andhra Pradesh High Court directed the Official Receiver to cancel the sale deed as the same was without application of Section 53 of Provincial Insolvency Act.<\/i><\/p>\n","protected":false},"author":67517,"featured_media":288026,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2553,20521,56288,56289],"class_list":["post-288014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-Andhra_Pradesh_High_Court","tag-appellate-court","tag-provincial-insolvency-act","tag-validity-of-sale-deed"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can the Insolvency Court adjudicate upon the validity of Sale Deed without Section 53 application under Provincial Insolvency Act? 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Similarly, whether the Inspector General (Registration) can cancel the registration of Extinguishment Deed in exercise\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":301048,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/08\/andhra-pradesh-hc-relief-for-separate-possession-is-inherent-in-relief-of-specific-performance-of-contract-legal-news\/","url_meta":{"origin":288014,"position":1},"title":"Granting relief for delivery of possession separately is not required, it is inherent in the decree of specific performance of contract: Andhra Pradesh High Court","author":"Editor","date":"September 8, 2023","format":false,"excerpt":"\u201cIn case where the language of the decree is capable of two interpretations, the interpretation which favours the advancement of the decree by getting its execution is to be preferred.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"andhra pradesh high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/andhra-pradesh-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/andhra-pradesh-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/andhra-pradesh-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/andhra-pradesh-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":255534,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/13\/registration-of-document-by-public-officer-while-discharging-public-duty\/","url_meta":{"origin":288014,"position":2},"title":"Law on Fraud | Registration of document by public officer while discharging public duty: A Fraudulent activity? AP HC decides","author":"Bhumika Indulia","date":"October 13, 2021","format":false,"excerpt":"Andhra Pradesh High Court: M. Satyanarayana Murthy, J., expressed that, \u201cIf a party to the document wants to annul the document, he has to file a suit under Section 31 of the Specific Relief Act before the competent Civil Court and if, third party wants to annul the document, he\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/04\/Andhra-Pradesh-High-Court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/04\/Andhra-Pradesh-High-Court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/04\/Andhra-Pradesh-High-Court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/04\/Andhra-Pradesh-High-Court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/04\/Andhra-Pradesh-High-Court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":279940,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/12\/19\/andhra-pradesh-high-court-explains-scope-of-the-residuary-provision-provided-under-article-113-of-the-limitation-act\/","url_meta":{"origin":288014,"position":3},"title":"Andhra Pradesh High Court explains scope of the residuary provision provided under Article 113 of the Limitation Act","author":"Editor","date":"December 19, 2022","format":false,"excerpt":"When a case falls under any specific provision of law, their residuary clauses cannot be resorted to and the parties cannot seek shelter under the residuary provision under Article 113 of the Limitation Act, 1963.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Andhra Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-491.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":367711,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/26\/maintenance-not-debt-bom-hc-rejects-insolvency-defence\/","url_meta":{"origin":288014,"position":4},"title":"Maintenance obligations not &#8216;debts&#8217;; &#8216;Insolvency&#8217; no shield for Husband against Family Court order: Bombay HC","author":"Editor","date":"November 26, 2025","format":false,"excerpt":"\u201cThe Family Court\u2019s order directing husband to pay maintenance had already been challenged in the criminal revision proceedings, and therefore, allowing the present petition would permit the husband to adopt two parallel proceedings after electing one.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"maintenance not debt","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/maintenance-not-debt.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/maintenance-not-debt.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/maintenance-not-debt.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/maintenance-not-debt.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":326942,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/07\/20\/mp-high-court-affirms-trial-courts-rejection-of-application-for-framing-additional-issues-scc-times\/","url_meta":{"origin":288014,"position":5},"title":"\u2018Existing issues sufficient\u2019; MP High Court affirms trial court\u2019s rejection of application for framing additional issues","author":"Ritu","date":"July 20, 2024","format":false,"excerpt":"The Court noted that the additional issue which states that \u201cwhether the registered sale deed dated 13.7.2017 was illegally executed\u201d already covers all the ingredients which are necessary for execution of a valid sale deed.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madhya Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/288014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67517"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=288014"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/288014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/288026"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=288014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=288014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=288014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}