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2014 Supreme(SC) 423

SUPREME COURT OF INDIA
Chandramauli Kr. Prasad, Pinaki Chandra Ghose, JJ.
Shree Ram Urban Infrastructure Ltd. (Formerly known as Shree Ram Mills Ltd.) – Appellant
Vs.
Court Receiver, High Court of Bombay – Respondent
[Civil Appeal No.5528 of 2014 arising out of SLP (C) No.30298 of 2010]
Decided On : 09-05-2014

IMPORTANT POINT
Order XL Rule 1(d) cannot be given a narrower construction.

Headnote:(a) Code of Civil Procedure, 1908 – Order XL Rule 1(d) – Order XL Rule 1(d) cannot be given a narrower construction with regard to the rights/authority given to the Receiver – Instantly, order of appointment showing that the receiver was given full powers – Eviction suit filed by Receiver – Not beyond jurisdiction. (Para 14, 16)

       AIR 1964 SC 818 – Relied upon

       (1891) ILR 18 Cal 478; (1907) ILR 34 Cal 305; (1884) ILR 8 Mad 229; (1885) ILR 8 Mad 418; (1886) ILR 9 Mad 334; (1887) ILR 14 Cal 323; (1891) ILR 18 Cal 477; (1899) ILR 26 Cal 715; AIR 1916 Cal 51 – Cited with approval

       1871 6 Beng. LR 486 – Referred

       (1887) ILR 14 Cal 323; (1884) ILR 10 Cal 1014; (1978) 1 SCC 12: 1958 SCR 333; (1996) 11 SCC 376; (1990) 3 SCC 669; (1985) 2 SCC 167; AIR 1944 All 220; AIR 1924 All. 40; AIR 1999 Bom 16 – Distinguished

       (b) Transfer of Property Act, 1882 – Section 106 – Limitation – Suit filed after six months of notice – Cannot be declared or deemed to be invalid in view of sub-section (3). (Para 16)

       (c) Code of Civil Procedure, 1908 – Order XL Rule 1(d) – Court Receiver holding the properties as custodia legis – Acted as reasonable prudent trustees – For preservation of the property in question – No infirmity. (Para 17)

       (1966) 3 SCR 948 – Relied upon

       Facts of the case:

       An immovable property known as "Dev Ashish" is a tenanted property situated at Padam Tekri, Peddar Road, Bombay. The respondent was appointed by the Bombay High Court to take charge of the suit property in Suit No.234 of 1987.

       The respondent, being the Court Receiver in the aforesaid suit, issued Notice dated July 26, 2001 to the appellant herein to pay compensation at the rate of RS.1,75,000/- per month from 1.4.2000 and to vacate the suit premises. The appellant in reply stated that the respondent has been appointed to control the suit premises and has no right and power to determine the tenancy of the appellant. Meanwhile, the appellant was declared as a sick company under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).

       The respondent instituted a suit against the appellant-defendant before the Court of Small Causes, Bombay which was decreed in favour of the respondent.

       The appellant-defendant filed an appeal which was dismissed. The appellant-defendant, therefore, filed a revision petition before the High Court which was also dismissed.

       Finding of the Court:

       Court-Receiver has acted in accordance with law.

JUDGMENT :

Pinaki Chandra Ghose, J. –

1. Leave granted.

2. This appeal has been preferred against the Judgment and order dated 16th September, 2010 passed by the High Court of Judicature at Bombay in Civil Revision Application No.452 of 2009, dismissing the Civil Revision Application filed by the appellant-tenant. The brief facts, necessary for the disposal of this appeal are thus: An immovable property known as "Dev Ashish" is a tenanted property situated at Padam Tekri, Peddar Road, Bombay (hereinafter referred to as the "suit property"). The respondent herein was appointed by the Bombay High Court to take charge of the suit property in Suit No.234 of 1987, which was filed on the original side of the Bombay High Court, in terms of prayer clause (a) of the Notice of Motion which reads as follows:

"(a) That pending the hearing and final disposal of above suit, the Court Receiver, High Court, Bombay or some other fit and proper person be appointed as a Receiver of an immovable property known as "Dev Ashish" situate on Sub-Plot No.1 of Plot No.C.S.S.755 at Padam Tekdi, Pedder Road, Bombay 400 026, with all powers under Order XL, Rule 1 of the Code of Civil Procedure, 1908, including the owner to recover, receive and collect the rent, income and profits thereof."

3. The respondent, being the Court Receiver in the aforesaid suit, issued Notice dated July 26, 2001 to the appellant herein to pay compensation at the rate of RS.1,75,000/- per month from 1.4.2000 and to vacate the suit premises. The appellant replied to the said notice of the respondent stating that the respondent has been appointed to control the suit premises and has no right and power to determine the tenancy of the appellant. Meanwhile, the appellant was declared as a sick company under the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as 'the SICA').

4. The respondent instituted a suit against the appellant-defendant before the Court of Small Causes, Bombay which was decreed in favour of the respondent. Being aggrieved by the said decree, the appellant-defendant filed an appeal before the Appellate Bench of the Small Causes Court, being Appeal No.837 of 2003. This appeal was dismissed by judgment and order dated June 12, 2009. The appellant-defendant, therefore, filed a revision petition before the High Court of Bombay under Section 115 of the Code of Civil Procedure, being Civil Revision Application No.452 of 2009. The said civil revision application was dismissed by the Bombay High Court vide its judgment and order dated 16.9.2010. Aggrieved by the said judgment and order dated 16.9.2010, this appeal, by special leave, has come up before this Court.

5. Mr. Ranjit Kumar, learned senior counsel appearing on behalf of the appellant, challenged the order on the grounds, firstly, that the Court Receiver did not obtain leave of the court in filing the suit and without such leave, the eviction suit is liable to be dismissed. Secondly, he contended that the notice was issued on July 26, 2001 asking the appellant to vacate the suit premises immediately, therefore, the notice was defective in view of the provisions of Section 106 of the Transfer of Property Act. On this ground also, he contended that the suit is liable to be dismissed. Thirdly, he contended that the suit is also bad since the owners are the trustees and are not made parties to the suit.

6. In support of his contention with regard to the first point that the suit was liable to be dismissed as it was filed by the Court Receiver without obtaining leave of the Court, he relied upon the decision of the courts in C.T. Davis & Ors. vs. Drobomoyi Gupta & Ors.[ (1887) ILR 14 Cal 323] He also relied upon the decisions in Ram Ranjan Chakravarti vs. A.B. Miller[(1884) ILR 10 Cal 1014], Everest Coal Company (P) Ltd. vs. State of Bihar & Ors.[ (1978) 1 SCC 12 = 1958 SCR 333], Anthony C. Leo vs. Nandlal Bal Krishnan & Ors.[ 1996 (11) SCC 376], Krishna Kumar Khemka vs. Grindlays Bank P.L.C. &



























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