SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2024 Supreme(Cal) 1480

CALCUTTA HIGH COURT
I.P. MUKERJI, MD. SHABBAR RASHIDI, JJ.
Pinaki Ghosh - Appellant
Versus
Smt. Susmita Roy & Ors. – Respondents
IA No. GA/1 of 2024, APOT/72 of 2024 With ACR/2214 of 1987
Decided On : 04-04-2024

Advocates Appeared:
For the Appellant :Mr. Jhuma Chakraborty with Mr. Rahul Kr. Saha, Advocates.
For the Respondents:Mr. Surajit Nath Mitra, Sr. Advocate with Mr. Deepnath Chowdhury & Mr. Subir Sabud, Advocates, Mr. Nirmalya Dasgupta, Advocate, for the present receiver.

IMPORTANT POINT
The court retains authority to discharge a Receiver at any time, and the Receiver must seek court approval for remuneration.

Headnote:

(A) Court's authority over Receiver - The court retains the right to discharge the Receiver at any time, and the Receiver does not have a right to remain in office. (Para 3)

(B) Remuneration upon discharge - The outgoing Receiver must be adequately remunerated for work done prior to discharge. (Para 7)

(C) Misappropriation of funds - The Receiver's act of appropriating funds for remuneration without court order is strongly deprecated. (Para 9)

Facts of the case:

The appeal concerns the discharge of a court-appointed Receiver and the subsequent appointment of a new Receiver, with issues regarding the Receiver's remuneration and conduct.

Findings of Court:

The court allows the outgoing Receiver to apply for remuneration, with deductions for any sums appropriated without authorization.

Issues: The main issues were the authority of the court to discharge the Receiver and the Receiver's entitlement to remuneration.

Ratio Decidendi: The court emphasized the Receiver's lack of entitlement to remain in office and the necessity of court approval for remuneration.

Result: Appeal dismissed.

JUDGMENT :

We have heard out this appeal, dispensing with all formalities.

2. This is an extra-ordinary appeal. The Receiver who was discharged by the learned single judge has preferred this appeal against such discharge.

3. The Receiver is an officer of the court and discharges his duties at the pleasure of the court. The court retains the right to discharge the Receiver at any point of time. He does not have any right to remain in office.

4. By a judgement and order dated 9th February, 2024, the appellant/Receiver has been discharged with reasons and a new Receiver appointed in his place and stead with a direction on the outgoing Receiver to hand over all documents to the incoming Receiver.

5. The outgoing Receiver is directed to immediately comply with the order of the learned single judge dated 9th February, 2024 and also the subsequent order dated 19th March, 2024 within one week from date.

6. While disposing of this appeal, we find that the Receiver was appointed by an order dated 6th September, 2017 made by Mr. Justice Soumen Sen. He was directed to act on the same terms and conditions on which an earlier Receiver was appointed. It appears from the records that the earlier appointed Receiver received only initial remuneration of 200 GMs.

7. There is no doubt that if the court discharges the Receiver, he has to hand over charge forthwith to the newly appointed Receiver. But it is also very important that at the time of discharge, the Receiver is adequately remunerated for the work he has done.

8. It is contended on behalf of the respondent nos.1 and 2 that the Receiver has, on his own, appropriated sums from the funds lying in his hands, towards his remuneration which is not denied by the Receiver.

9. This Court deprecates, most strongly this act of the Receiver of appropriating money to himself towards his remuneration, without any order from the Court. Nevertheless we note that this allegation is not reflected in the impugned order dated 9th February, 2024.

10. In that view of the matter, leave is given to the outgoing Receiver to apply before the learned single judge to claim remuneration that may be payable to him on his discharge. In that event, the Court shall enquire into the amount which the Receiver has appropriated to himself from the fund in his hands and deduct such sum from the remuneration adjudged to be payable to him.

11. For the reasons above, we find no merit in this appeal.

12. Accordingly, the appeal(APOT 72 of 2024) and the connected application(IA No.GA/1/2024) are hereby dismissed with the above observations.

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top