CIVIL RESPONSIBILITY 389 of transfer relative to any sale, mortgage or other disposition of his estate as the Court may order. If it is subsequently reported to the Court that the unsoundness of mind for which the control of the lunatic's estate was taken away from his hands has ceased, the Court may order a second inquiry, and, on being satisfied that the lunacy has ceased, will order all proceedings in the lunacy to cease or to be set aside on such terms and conditions as may seem fit. Chapter V is applicable to persons not subject to the jurisdiction of any of the High Courts of the Presidency-towns, and provides that the District Court within whose jurisdiction an alleged lunatic is residing may, upon an application made by any relative of the alleged lunatic or any public curator appointed under the Succession (Property Protection) Act, 1&41, or by the Government Pleader, or by the District Collector on behalf of the Court of Wards, direct an inquisition for the purpose of ascertaining whether such person is of unsound mind and incapable of managing himself and his affairs. If the alleged lunatic resides at a distance of more than fifty miles from the place where the District Court is held to which the application is made, the said Court may issue a commission to any subordinate Court to conduct the inquisition. After the inquiry, if it is satisfactorily proved that the alleged lunatic is of unsound mind, and is incapable of managing his affairs, the Court may appoint a manager of the estate of the lunatic and a guardian of his person on the same terms and conditions as are mentioned in Chapter IV. But the manager has to submit an inventory of the estate belonging to the lunatic within six months from the date of his appointment and has to furnish an annual account of the income and expenditure within three months of the close of the year of the era current in the district. If any relative of the lunatic, or the Collector by petition to the Court impugns the accuracy of such inventory or account, the Court may hold a summary inquiry into the matter, or refer such petition to any subordinate Court or to the Collector if the manager was appointed by the Collector. The District Court has power to remove a manager for any sufficient cause, and compel him to make over the property and to furnish accounts to any other person appointed in his place. The District Court may impose a fine not exceeding five hundred rupees on the manager, if he wilfully neglects or refuses to deliver his accounts or any property in his hands within the time fixed by the Court. The District Court is also authorized, as in Chapter IV, to hold a second inquiry when it is reported that the lunacy has ceased. Contracts.—Under section 12 of the Indian Contract Act (Act IX of 1872) a contract is invalid, if one of the parties at the time of making it was, by reason of insanity, incapable of understanding it, and forming a rational judgment as to its effect upon his interests. A lunatic, however, is responsible for the payment of necessaries purchased by him in accordance with his social position and status, it being immaterial whether the vendor knew his condition or not; but he is not responsible, if the order is grossly extravagant and beyond his means, or if the vendor has taken advantage of the fact of his insanity in selling those necessaries to him. Again, a person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind. While a person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind. In a case where a person becomes lunatic after he has contracted to sell or otherwise dispose of his estate or any part thereof, the Court may direct the fulfilment of the contract, if it appears to the Court that the contract is such as ought to be performed. The Court may also order the dissolution of the partnership of a firm, if one of the partners is -found to be a lunatic (vide sections 51 and 52, Act IV of 1912).