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1958 Supreme(Cal) 165

HIGH COURT OF CALCUTTA
K. C. DAS GUPTA, DEBABRATA MOOKHERJEE
BALAI LAL SEN - Appellant
Versus
PRAMATHA NATH SEN - Respondent
First Appeal 146  Of  1950
Decided On : JUNE 06, 1958

Advocates Appeared:
BANKIM CHANDRA DUTT, BIBHUTI BHUSAN, DURGESH PRASAD DAS, MANINDRA KUMAR SEN, Priya Gopal Ghosh, Samarendra Nath Dutt, SISIR KUMAR BASU, SUDHINDRA KUMAR KAR

No leave necessary to sue discharged receivers, and failure to submit accounts within a month of appointment may not warrant permission to sue the present receiver.

Headnote:

Receivers - Permission to Sue - Discharged Receivers - Failure to Submit Accounts

Fact of the Case:

The application sought permission to sue receivers appointed by the court, with the court considering the necessity of leave to sue discharged and present receivers.

Finding of the Court:

The court rejected the application to sue discharged receivers, stating that no leave was necessary to sue them. As for the present receiver, the court found it improper to grant leave to sue based on the failure to submit accounts within a month of appointment.

Issues: Permission to sue discharged and present receivers, necessity of leave to sue, failure to submit accounts

Ratio Decidendi: The court held that no leave was necessary to sue discharged receivers, as there was no interference with the court's management of the property through the receiver. It also found it improper to grant leave to sue the present receiver based on the failure to submit accounts within a month of appointment.

Final Decision: The application was rejected with costs to the appearing opposite parties, and no relief was sought against another party.

( 1 ) THIS application is for permission to sue Balai Lal Sen, Kanai Lal Sen, Sisir Kumar Basu and Bibhuti Bhusan Sen on the basis that they were receivers appointed by this Court of the firm Sen Brothers and Company. It has to be noticed that Balai Lal Sen, Kanai Lal Sen and Sirir Kumar Basu are no longer receivers and have been discharged. It was held in Dinshaw v. Amrit Lal and Co. , ILR 10 Pat 379 : (AIR 1931 Fat 298) (A) that no leave was necessary to sue a discharged receiver. This was stated to be the correct law in Sir John Wood-toffe's "law relating to Receivers. " The same view appears to have been taken in England in a case reported in Botibol v. Botibol, (1947) 1947-1 All E. R. 26 (B ). The principle appears to be that when a receiver has already been discharged, there is no question of any interference with the Court's management of the property through the receiver, and no leave is necessary to bring a suit against a receiver after discharge. In our judgment, that is the correct position in law. Accordingly, we reject the application in so far as it is for leave to sue Balai Lal Sen, Kanai Lal Sen and Sisir Kumar Basu.

( 2 ) AS regards Bibhuti Bhusan Sen, the position is somewhat different as he is the present receiver. It has to be remembered that he was appointed receiver in August, 1957 and the only allegation made against him in the body of the petition is that when the petitioner approached him in September, 1957 for accounts and for a settlement of dues, he failed to submit the statement of accounts. I do not think it will be proper to give leave to sue him for failure to submit accounts within a month of his appointment. It is to be noticed that leave is not being asked for on the basis that the petitioner is entitled to obtain damages from the firm Sen Brothers and Company and that is in the hands of the receiver.

( 3 ) THE application is accordingly rejected with costs to the appearing opposite parties Sisir Kumar Basu and Bibhuti Bhusan Sen. The hearing fee is assessed at two gold mohurs each.

( 4 ) MANINDRA Kumar Sen also appeared before us but no relief was sought against him. In these circumstances, we do not think it necessary to allow any costs to him.

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