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1988 Supreme(Bom) 90

H.SURESH
State Bank of India – Appellant
Versus
Podar Mills Ltd. & others – Respondent


JUDGMENT - H. SURESH, J.:---Two question arise in this Notice of Motion-firstly, whether in view of section 8(1)(c) of the Textile Undertakings (Taking Over of Management) Act, 1983, hereinafter referred to as "the Act", where a Textile Company owns more than one textile undertaking, out of which the management of one of the undertakings vests in the Central Government, while the other undertaking/ undertakings are not so vested, a Receiver can be appointed in a suit filed by a creditor, in respect of the undertaking/undertakings not so vested ? Secondly, whether in a suit for enforcement of an equitable mortgage, a Receiver cannot be appointed on the ground that the mortgagee has no right to possession of the property so mortgaged ?

2. Now, to the first question: Section 8(1) and (2) of the Act, which are relevant are as follows:

"8 (1) So long as the management of the textile undertaking of a textile company remains vested in the Central Government under this Act, notwithstanding anything contained in the Companies Act, 1956 or in the memorandum of articles of association of such company---

(a) it shall not be lawful for the shareholders of the textile company or any other person

























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