High Court of Bombay Issues Show Cause Notice and Considers Contempt Action Against Insolvent for Undisclosed Bank Transactions Under Presidency Towns Insolvency Act, 1909. Allegations of Non-Disclosure of Bank Accounts and Transactions Post-Adjudication Examined Under Section 33(4) of the Act.

Insolvency proceedings where Official Assignee and petitioning creditor alleged that insolvent failed to disclose bank accounts and conducted transactions without permission, seeking contempt action and revival of public examination.

Official Assignee: action under Section 33 including contempt; Petitioning Creditor: revival of public examination, permission to participate, holding insolvent guilty of contempt.

Discovery of multiple financial transactions in ICICI Bank and other accounts not disclosed during insolvency proceedings, violating duties under the Insolvency Act.

Insolvent adjudicated on 5 November 2003. Ad-interim order on 14 August 2024 restraining withdrawals. Show cause notice issued on 7 March 2025.

Whether the insolvent breached the duties imposed by Section 33 of the Presidency Towns Insolvency Act, 1909 by not disclosing bank accounts and conducting financial transactions without permission. Whether the insolvent's conduct amounts to contempt of court warranting action under Section 33(4). Whether the public examination of the insolvent should be revived. Whether the petitioning creditor should be allowed to participate in such revived examination. Whether the contempt action is barred by limitation.

Insolvent breached duties by conducting transactions in undisclosed accounts, making false statements, and receiving large sums without explanation (Official Assignee and Petitioning Creditor). Insolvent claimed accounts were pre-existing or opened after public examination, deposits were from wife or third party for legal expenses, no willful breach, no specific order violated, apology tendered, limitation applies (Insolvent).

The Insolvent has thus filed the Report asserting that the Insolvent could not have entered into transactions, as emerged from the record, like a solvent person. The Insolvent has positively asserted that he had opened the savings bank account ... after his public examination was closed on 29th August 2022. It was contended that, there was no obligation on the Insolvent under the Insolvency Act, 1909 to intimate or to inform the Official Assignee as regards the amount received by the Insolvent from his family members and well-wishers. The action for contempt was contended to be barred by limitation as the alleged contempt took place in the month of September 2022 and the Official Assignee Report No.9 of 2024 came to be filed after two years in the month of November 2024. In the year 2003 when the Insolvent was adjudged Insolvent, there was zero balance in the said account.

Insolvent notified under TORT Act on 6 October 2001. Adjudicated insolvent on 5 November 2003. Schedule of assets filed 24 June 2005. Private examination concluded 10 October 2013. Public examination concluded 28 September 2022. Petitioning Creditor moved Misc. Application (L) No. 49 of 2024 leading to ad-interim order on 14 August 2024. Official Assignee filed Report No. 9 of 2024. Show Cause Notice issued on 7 March 2025. Further proceedings on 4 April 2025. Judgment reserved on 9 April 2026, pronounced on 7 August 2026.

• Presidency Towns Insolvency Act, 1909: 33(4)
• Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992: 3(2), 3(3)