Law:

Section:

P L D 196Provincial Insolvency Act (V of 1920), S. 51 Position of creditor vis a vis 0jfcial Assignee Civil Procedure Code (V of 1908), S. 64 Companies Act (VII of 1913), S. 229. A secured creditor has not been defined in the Companies Act, 1913 but, by reason of the provisions of section 229 of the Act, a secured creditor under the Companies Act must mean the same thing as under the Provincial Insolvency Act, 1920. The position of an attaching creditor under the Companies Act 1913, is not that of a secured creditor although he may have certain rights by reason of attachment. The making of an order of attachment in favour of a creditor obtained under the Civil Procedure Code only operates so as to give the debtor certain rights in execution. It does not operate, when these rights are not exercised before the pre¬sentation of a petition in insolvency, so as to create in favour of the creditor a title which prevails against that of the Official Assignee, under a vesting order in insolvency made after the order of attachment. Krishnaswami Mudaliar v. Official Assignee of Madras I L R 26 Mad. 673 (F B); Matilal v. Karra Buldin I L R 25 Cal. 179 (P C) ; Goverdhandas Vallabhdas v. Official Liquidator, Electro Metal Refining Co. Ltd, A I R 1930 Born. 16; Re Roundwood Colliery Company, Lee v. Roundwood Colliery Company (1897) l Ch. D. 373 ; re : North Yorkshire Iron Company (1878) 7 Ch. D. 661 and Maneklal Mansukhbai v. Saraspur Manufacturing Co., Ltd. A I R 1927 Bom. 167 ref. THIS JUDGMENT DELIVERED BY: RAHMAN, JUSTICE---.--- This is an application under section 171 of the Companies Act by a decree holder creditor for permission to proceed with the execution of the decree and to realise the decretal amount out of the funds of the Economic Aid Corporation, Ltd., (in liquidation). The petitioner before me, the Chandpur Mills, Ltd., is itself a Company incorporated under the Companies Act, and it obtained a money decree against the said Economic Aid Cor¬poration, Ltd., (in liquidation), for the sum of Rs. 30,880 on account of arrears of rent and price of articles of a weaving factory purchased from the petitioner Company. 2. This decree, it is said, was obtained on the…

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