Jansz vs Idroos Lebbe – clr volume 1 page 063

In the case between the heirs of Johannes Perera (plaintiffs) and the current possessor of the Colombo premises (defendant), the court addressed whether, under section 71 of the Insolvency Ordinance, property absolutely vested in an assignee due to insolvency can revert to the heirs in the absence of formal sequestration. The court determined that the property did not revert to the heirs, as the title lawfully vested in the assignee and could only pass by conveyance, descent, devise, or prescription. The plaintiffs’ claim was found untenable under the terms of the ordinance. The decision reaffirmed the principle that the effect of insolvency and assignment of assets is absolute vesting in the assignee, which prevails unless subsequently defeated by statutory mode or prescription. Precedent