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1994 Supreme(Del) 755

High Court Of Delhi
RAVI KUMAR - Appellant
Versus
MISHA VADHERA - Respondent
First Appeal (OS) 236 of 1994
Decided On : 11/16/1994

Advocates Appeared:
B.L.VALI, GITA MITTAL, H.L.TIKKU, SVANTANTAR KUMAR

Headnote:Civil Procedure — Appointment of Receiver — circumstances where defendant may be dispossessed and Receiver appointed explained — Possession of defendant not to be lightly interested with —

       Appellant/First defendant was admittedly owner of disputed property; he had entered into an agreement for sale of same with first respondent/plaintiff. When the dispute arose appellant revoked agreement. Plaintiff sued for specific performance and also filed an application for appointment of Receiver — Trial judge allowed application even before notice had been served an appellant.

       Allowing the appeal against this order of trial judge, the Court.

       Held:

       1. Possession of the defendant is not to be lightly interfered with and at any rate even before notice is served on the defendant or he is set ex parte. Even thereafter, normally a plaintiff must make out a prima facie case and also a further case that if the defendant is not disturbed from possession and the Court is not to take over possession, the property is likely to be damaged or wasted. A receiver cannot be appointed merely because it is expedient or convenient to one of the parties to do so or because it will do no harm to do so. A bona fide possessor of property should not be dispossessed pending suit unless there is some substantial reason, such as, well-founded fear that the property in question being dissipated or that some other irreparable mischief may occur unless the court gives it protection. The application for appointment of receiver should not be disposed of summarily. The matter should be considered judicially in all its aspects. The plaintiff must show prima facie that he has a strong case i.e. either a good title to the property or a special equity in his favor requiring immediate dispossession of the defendant or that property in the hands of in defendant is in danger of being wasted.

       2. Ordinarily, even if the plaintiff stated in his plaint that he was ready and willing to complete the contract and even if he had deposited the consideration into court, he cannot normally be put in possession straightaway except where, on the principles stated above, the Court thinks of taking over possession through a receiver because of the serious likelihood of waste or damage to property or the existence of other situations mentioned above.

M. Jagannadha Rao, C. J.

( 1 )

( 2 ) THIS is an appeal by the 1st defendant against the order of the learned Single Judge dated 8. 9. 94 in IA No. 7909 of 1994 in Suit No. 2828/93 appointing a Receiver in an application filed by the plaintiff-lst respondent, without service of the notice in the IA on the appellant.

( 3 ) THE appellant - 1st defendant Mr. Ravi Kumar is admittedly the owner of a flat with commercial space measuring 1106 sq. ft. on the first floor of a multi- storied building, namely, hansalaya , 15, Barakhamba Road, New Delhi. The appellant states that he is a non-resident Indian (NRI) and ha had earlier purchased this property by paying sale consideration in foreign exchange after taking the required permission from the Reserve Banit of India. The plaintiff-lst respondent Misha Vadhera is said to be a builder of the multi- storied building hansalaya and according to the appellant, the plaintiff is carrying on business in real-estate through respon dent 3, a real-estate agent (M/s Satish Pandit and Associates ). It is said that the appellant is carrying on business in names of respondent 2 (Hote- Hans Pvt. Ltd.) and respondent 4 (M/s Hansalaya Properties ). Appellant admits that he entered into an agreement of sale with respondents 1,2 for a consideration of Rs. 90 lacs in respect of the above property, and the terms are that Rs. 1 lakh be paid on 28. 10. 1993, Rs. 8 lakhs within 7 days of signing the agreement and balance of Rs. 81 lakhs in 60 days of obtaining of the permission by the appellant from the competent authority under Chapter XX-C of the Income-Tax Act. The appellant was to apply for the clearance from the I. T. authorities within 10 days after the signing of the agreement i. e. after receipt of Rs. 8 lakhs. It is also admitted that appellant received Rs. 1 lakh on 28. 10. 93. But, it is the case of the appellant that the plaintiff failed to pay Rs. 8 lakhs within 7 days of the signing of the agree ment on 28. 10. 93 and therefore the plaintiff committed breach of contract. The appellant says he, therefore, revoked the contract by a FAX message on 6. 11. 1993 sent to the plaintiff (FAX No. 3314830) and he also sent a registered letter in that behalf on 7. 11. 1993. He also says that he returned the amount of Rs. 1 lakh by a registered letter dated 16. 12. 93 in the form of a Bank Demand Draft No. 110013014 on 16. 12. 1993 drawn on Bank of India. These letters are filed as Annexures I and II. Appellant says he also took out a public notice and sent a legal notice dated 31. 1. 1994 to the respondents by regd. post as per Annexures III and IV. According to him, no reply was received.

( 4 ) THE Suit No. 2828/93 was filed for specific performance by the 1st respondent and IA No. 10881/93 was filed under Order 39 Rules 1 and 2 CPC to restrain the appellant from alienating the property to others, etc. A learned Single Judge ordered notice on 20. 12. 93 for 1. 2. 94. The plaintiff filed FAO (OS) 4/94-against the order notice issued by the learned Judge. In that appeal, a Division Bench of this Court passed an order on 6. 1. 94 permitting the appettant-therchi (i. e. plaintiff) to deposit Rs. 89 lakhs and said that if the amount is deposited, there shall be temporary injunction as prayed against the 1st defendant (appellant in the present appeal ). Later the said order was modified on 25. 1. 94 into an order to furnish bank-guarantee and the interim injunction was continued. These orders were passed without the present appellant who was respondent in FAO (OS) 4/94 being served in the appeal. The said appeal FAO (OS) 4/94 came up before a Division Bench later, on 4. 5. 94 and even by that time the 1st. defendant (lst respondent therein) was not served in that appeal or suit. Inasmuch as earlier an order was passed by the Bench on 6. 1. 94 granting injunction without the 1st defendant (lst respondent therein) being served, the Bench, when the matter came before it on 4. 5. 94, was not in a position to eit























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