Mrs. SAMINA MEHR-UN-NISA MAZARI vs PUBLIC AT LARGE Ss — 2021 CLD 1217 SUPREME-COURT

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Mrs. SAMINA MEHR-UN-NISA MAZARI VS PUBLIC AT LARGE Ss. 7 & 8---Insolvency petition---Exemption of corporation, etc., from insolvency proceedings---Scope---Appellant-lady filed an insolvency petition under S.7 of the Provincial Insolvency Act, 1920 ("the 1920 Act") to be declared insolvent; she arrayed all her institutional creditors as respondents in the petition---Petition was dismissed by the Trial Court on the basis of S.8 of the 1920 Act holding that no insolvency petition could be filed against any corporation or association or company registered under any enactment for the time being in force---Question as to whether S.8 of the 1920 Act barred an insolvency petition to be filed by the debtor seeking his own insolvency by arraying corporate banks as creditors to the petition---Held, that S.8 of the 1920 Act exempted corporations and companies from any insolvency proceedings against them, however, in the present case the insolvency petition filed by the appellant was not an insolvency petition filed against any corporate person but instead, was filed by the debtor (the appellant) to get herself adjudged as an insolvent---Arraying the creditor banks (corporations or companies) as respondents in the insolvency petition did not mean that an insolvency petition had been filed against corporate persons to seek their insolvency---Exemption contained in S.8 of the 1920 Act had no application to the present case---Orders of courts below were set-aside and Supreme Court directed that insolvency petition would be deemed to be pending before the Trial Court, which shall decide the same in accordance with law---Appeal was allowed. Citation Name: 2021 CLD 1217 SUPREME-COURTBookmark this Case Mrs. SAMINA MEHR-UN-NISA MAZARI VS PUBLIC AT LARGE S. 7 & Preamble---Provincial Insolvency Act, 1920 (the 1920 Act)---Scope and application---Said Act dealt with the insolvency of an individual, while corporate insolvency was dealt with separately under the company law---Therefore, insolvent companies were not amenable to the law of insolvency but underwent a separate process known as liquidation, or winding up, administered under separate law.

Mrs. SAMINA MEHR-UN-NISA MAZARI vs PUBLIC AT LARGE Ss — 2021 CLD 1217 SUPREME-COURT

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