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2002 Supreme(Cal) 416

High Court Of Calcutta
D. K. SETH, JYOTESH BANERJEE
DHIRENDRA NATH DAS - Appellant
Versus
SHRIMATI MENOKA DAS - Respondent
F. M. A. T.  1481  Of  2000
Decided On : 06/28/2002

Advocates Appeared:
GOPAL CH.MUKHERJEE, TAPAN KUMAR MUKHERJEE

The legal heirs of a deceased Receiver are liable for the liabilities of the Receiver and the property in their hands. The court has the power to appoint a new Receiver in case of the death of the previous Receiver.

Headnote:

RECEIVER - APPOINTMENT - DEATH OF RECEIVER - LIABILITY OF LEGAL REPRESENTATIVES - PRESERVATION OF SUIT PROPERTIES - SCOPE AND APPLICABILITY - APPOINTMENT OF NEW RECEIVER - ORDER 40 RULE 3 AND 4 CPC - APPLICATION.

Fact of the Case:

The case involves a suit for partition where a Receiver was appointed to manage the suit property. The Receiver, defendant No. 1, failed to comply with court orders to deposit rent collected from the property. Despite being directed to show cause, he passed away before doing so. His legal heirs were substituted as defendants and ordered to deposit the rent, but they also failed to comply. The plaintiffs filed an application for the appointment of a new Receiver, which was rejected by the trial court.

Finding of the Court:

The court held that the death of the Receiver created a void in the office of the Receiver, which needed to be filled. The legal heirs of the deceased Receiver were not suitable for appointment as they had not complied with court orders and were allegedly collecting rent without authority. The court also found that the trial court erred in rejecting the application for the appointment of a new Receiver without considering the merits of the case.

Issues: 1. Whether the legal heirs of the deceased Receiver are liable for the liabilities of the Receiver and the property in their hands? 2. Whether the trial court erred in rejecting the application for the appointment of a new Receiver without considering the merits of the case?

Ratio Decidendi: 1. The court held that the legal heirs of the deceased Receiver are liable for the liabilities of the Receiver and the property in their hands. This is because the Receiver is an officer of the court, and his possession is the possession of all the parties to the proceedings. Any money in his hands is custodia legis for the person who can make a title to them. 2. The court held that the trial court erred in rejecting the application for the appointment of a new Receiver without considering the merits of the case. The court noted that the Receiver had failed to comply with court orders and that the legal heirs of the deceased Receiver were not suitable for appointment as they had not complied with court orders and were allegedly collecting rent without authority.

Final Decision: The court allowed the appeal and set aside the order of the trial court rejecting the application for the appointment of a new Receiver. The court appointed the plaintiff No. 3 as the new Receiver and directed him to deposit the rent collected in a bank account subject to the orders of the trial court.

D. K. SETH, J.

( 1 ) THIS appeal is directed against order No. 100 dated 17th April, 2000 passed by the learned Civil Judge, Senior Divsion, Durgapur in Title Suit No. 61 of 1995. Facts:

( 2 ) THE plaintiff, in a suit for partition, is the appellant before this Court. The case has a chequered career. An application for appointment of Receiver filed by the plaintiff was allowed by the learned trial Court by an order dated 23rd May, 1996. One learned advocate was appointed Receiver by an order dated 20th June, 1996. The learned advocate had signified his unwillingness on 31st July, 1996. The sole defendant was appointed Receiver by an order dated 7th August 1996. Against the order dated 23rd May 1996 and 20th June 1996, the sole defendant preferred FMAT No. 2189 of 1996. This appeal was dismissed by this Court by an order dated 10th September 1996. In the said order, the Receiver was directed to deposit 50% of the collection in Court every month and to file quarterly statement of account. The trial Court by an order dated 7th February 1997 directed the Receiver to deposit 50% of the total collection in Court, in default the Receiver would be removed and one of the plaintiffs would be appointed Receiver. It appears from the record that the Receiver did not deposit the 50% of the collection made by him. The defendants preferred FMAT No. 1241 of 1997 against the order dated 7th February 1997. In FMAT No. 1241 of 1997, this Court by an order dated 18th September 1997 issued certain directions to the Receiver, which are quoted below:-1. WE direct the defendant-Receiver to file an application in the trial Court explaining his failure to comply with the order of the trial Court with regard to deposit of half of the amount of rent within one month after the Puja vacation. 2. IF such an application is filed, the trial Court shall dispose of the same in accordance with law. At the time of disposal of the said application, if filed, the trial Court may also consider all adjustments that the defendant-Receiver may be claiming in respect of deposit of rent in the trial Court.

( 3 ) IT is made clear that we have not gone into the merits of the claims and/or accounts made by the parties, which shall be dealt with by the trial Court while deciding the said application if filed. ?the Receiver made an application before the learned trial Court seeking permission to deposit 50% of the rent collected after deducting the incidental charges. The learned trial Court by an order dated 27th November 1997 directed the Receiver to comply with the order of this Court. Against order dated 27th November 1997, the defendants preferred a revisional application being C. O. No. 2025 of 1997, which is alleged to be pending. The plaintiffs/appellants filed an application under Order 40 Rule 4 of the Code of Civil Procedure (CPC) praying for attachment of the properties of the defendant No. 1 Receiver on account of his failure to comply with the order of the High Court. By an order dated 3rd December 1997, the Receiver was asked to show-cause why his properties should not be attached and be put to sale. On 28th January 1998, the sole defendant being the Receiver Anil Kumar Das died. By an order dated August 5, 1998, the heirs of the deceased sole defendant were substituted. One Gan Sankar Chatterjee filed an application under Order 1 Rule 10 CPC of his addition as a party/defendant on the ground that one Tinkari Chattoraj had allegedly executed a Will in respect of one of the suit property in his favour and that a probate case in respect of the said Will is pending adjudication. This application also allowed by an order dated 5th August 1998. On May 18, 1999, the added defendant filed an application for stay of further proceeding of the suit till disposal of the probate case. By an order dated 11th August 1999, this application for stay was rejected. THEREAFTER, by an order dated 7th September 1999, the trial Court had recorded that the Receiver (the sole defenda









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