Karnataka High Court
SREE VENKATARAMANA TEMPLE BOARD OF EDUCATION, KARKALA - Appellant
Versus
C.MANJUNATHA KAMATH - Respondent
Decided On : 08-01-73
C.R.P. : 987 of 1973
Receiver - Management of Educational Institutions - The court has wide discretion to appoint a receiver to manage the property in dispute, even if there is already an injunction in favor of one party. The appointment of a receiver can be made at any time and is not restricted by the existence of an injunction.
Fact of the Case:
The petitioners sought a declaration that they were the validly constituted members of a temple board of education and were entitled to manage certain schools. They obtained a temporary injunction against the defendants. The defendants then applied for the appointment of a receiver, alleging mismanagement by the plaintiffs. The trial court appointed a receiver, which was affirmed by the appellate court.
Finding of the Court:
The court found that the appointment of the receiver was justified, as the plaintiffs were found to be mismanaging the educational institutions. The court also noted that it was not proper to dispossess the receiver from his management of the institutions, as frequent changes in management would harm the educational institutions.
Issues: The issues raised included the propriety of appointing a receiver when there was already an injunction in favor of the plaintiffs, and whether the defendants had proven mismanagement by the plaintiffs.
Ratio Decidendi: The court held that it had the discretion to appoint a receiver to manage the property in dispute, regardless of the existence of an injunction. The appointment of a receiver could be made at any time and was not restricted by the injunction. Additionally, the court found that it should not interfere with the appointment of the receiver, as the appellate order was not vitiated by any error of jurisdiction.
Final Decision: The revision petition was dismissed, with the observation that the trial court should expeditiously dispose of the suits filed by the petitioners and respondents.
( 2 ) THEY filed O. S. No. 168/71 for decaration that they are the duly and validly constituted members of Shree Venkataramana Temple Board of Education and entitled to manage and conduct three schools pertaining to the temple. The suit was also for permanent injunction to restrain the defendants from interfering in their management. The plaintiffs obtained a temporary injunction. The appeal against the said injunction order is pending disposal "before the Court of the Civil Judge at Udipi. When the injunction order was thus operative against the defendants, the defendants filed an application under Or. XL, Rule 1 CPC for appointment of a receiver complaining that the said schools are not properly managed by the plaintiffs. The trial Court, after enquiry appointed one of the members of the local Bar as a receiver. The plaintiffs appealed. The learned Civil judge while affirming the order of appointment of the receiver, has dismissed the appeal. Hence this revision petition
( 3 ) SRI U. L. Narayana Rao, learned Counsel for the petitioners urged two points, viz. , (1) that it was not proper for the trial Court to appoint a receiver to manage the properties in respect of which, there is already an order of injunction in favour of the plaintiffs, and (2) that the defendants did not prove any mis-management of the educational institutions by the plaintiffs, and therefore, the appointment of the receiver was without jurisdiction.
( 4 ) ON the first contention, I do not think that there is any impropriety or illegality committed by the Court. If circumstances of any case, justify the appointment of a receiver, the Courts do well in exercising discretion by appointing a receiver and preserving the property in dispute. Or. XL, Rule 1 CPC gives a wide power to the Court to appoint a receiver, if it is just and convenient. Such appointment could be made at any time not only on the application of a party to the suit but also of one who is not a party to the suit, but interested in the preservation of the property. It can do so even suo motu. There is no inflexible rule that the court should not appoint a receiver to manage the suit properties in respect of which there is an injunction in favour of one of the parties to the suit.
( 5 ) TURNING now to the second contention, it is true that the defendants did not specify, in their application, the acts of mis-management or waste committed by the plaintiffs. The trial Court also has not specifically stated the acts of mis-management. But the appellate Court in its elaborate judgment has held that the plaintiffs are mis-managing the educational institutions. On that ground it has affirmed the order of appointment of the receiver.
( 6 ) I do not think that I can disturb the said finding in my revisional jurisdiction, as the appellate order is not vitiated by any error of jurisdiction. There is one other reason why I should not interfere at this stage. The receiver has already taken over the management of the institutions when this Court vacated the stay order after notice to the respondents. It is therefore not proper to dispossess the receiver from his management of the educational institutions. The Educational Institutions should not be made to suffer by frequent change of management. .
( 7 ) HAVING regard to the suit and the counter-suit which is filed by the petitioners and respondents, it is proper that the trial Courrt should expeditiously dispose of those suits, i. e. , O. S. NO. 111/71 and O. S. No. 168/71 as early as possible.
( 8 ) WITH the above observation, this revision petition is dismissed, but no costs.
--- *** ---
.
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.