Jayaprada was declared insolvent in 2006

Chennai, Mar 3 (UNI) The Madras High Court had declared Samajwadi Party MP and actress Jayaprada as insolvent in September 2006 according to official assignee and this has come to light now.

Ms Jayaprada and her brother Rajbabu, who own Raj and Jayaprada theatres in the city, were declared insolvent on September 18, 2006 on a creditor's petition.

This came to light when the official assignee sent a letter to Chennai Corporation, consequent to an order of adjudication of their assets.

It all started when the III Assistant City Civil court had on February 21, ordered confiscation of properties in the two theatres owned by the actress and her brother for having failed to pay property tax to the tune of about Rs 20 lakhs to the Corporation.

When Chennai Corporation was taking steps to confiscate the properties, Mr Rajbabu and Ms Jayaprada, moved the city civil court with a plea to stop the proceedings, stating that they proposed to file an appeal against the order.

The Chennai Corporation filed a counter, in which it said the petition filed by the actress was not maintainable as no appeal was filed. In the absence of an appeal, the civil court should not stop the recovery proceedings, it said.

As the case is scheduled to come up for hearing tomorrow in the city civil court, the official assignee had written a letter to Chennai Corporation, stating that the actress and her brother have been declared insolvents and the Corporation should file its claim before him.

''We came to know through a newspaper that a sum of Rs 20 lakhs is due as property tax to the Corporation of Madras. Since the above persons (Mr Vishal of M/s Sunny Movies and Theatres Raj and Jayaprada represented by the partners) have been declared insolvents, the Corporation may file its claim before the official assignee and assist the official assignee to sell the property at the earliest point of time so that all creditors of the above debtors can be paid,'' the letter said.

The letter sent by Mr S Sitrarasu, the Official Assignee, was received by the Chennai Corporation on February 29.

However, it was not clear why the official assignee has not taken any step till date for selling the properties of the insolvents and settle the dues to the creditors.

UNI XR/WS VV SR RN1925