1959 Supreme(Raj) 182
Rajasthan High Court
Modi & Bhandari, JJ.
Balbir Anand - Appellant
Versus
Ram Jawaya Kapoor - Respondents
D.B. Civil Misc. First Appeal No. 45 of 1958
Decided On : September 29, 1959
R.K. Rastogi and D.P. Gupta, for appellants; R.A. Gupta, for respondents
Headnote:Civil P.C., O. 40—Management of property—Court to act through agent (receiver) and not do it itself —Leasing out disputed property.
The scheme laid down in O. 40, R. 1 is that in the matter of management of the property in dispute, the court must act through its agent and should not take upon itself the cumbersome burden of managing the property. The management of the disputed property may often be a laborious process involving the realization of rents and profits, looking after the managing business and entering into contracts. A court of Jaw is not expected to do all these things, except through the agent by conferring on him such powers as it may deem proper and as provided under sub-clause (d) of O. 40, R. 1. A Court of law must resist the temptation of doing all these things by itself without the assistance of a receiver appointed in normal course, otherwise it may commit grave errors in the management of the property on account of imperfect knowledge of the whole situation, or for other similar causes. It is also in the fitness of things that a court of law, should keep itself aloof from day to day affairs relating to the cases pending before it. Otherwise there may arise occasions for misunderstanding regarding the purpose of an order passed bonafide. The dignity and decorum of a Court of law is likely to be affected if it involves itself too much in the management of the property. It is for this reason that a receiver is to be appointed when the circumstances of the case demand that there must be something mote than the preservation of the property. (Para 6)
2. The plaintiffs, Ram Swaroop and Ravindra, who are Respondents Nos. 2 and 3 in this appeal, instituted a suit in the court of the District Judge,, Alwar, on the 11th of January, 1949, claiming that they had two third share in the suit property and that the same should be partitioned and the defendants be also ordered to furnish accounts. An application for appointment of Receiver pending the decision of the suit was made which was refused by the trial court but ultimately the Matsya High Court on appeal directed that a Receiver be appointed of the disputed properties pending the disposal of the present suit. In pursuance of that order, the trial court appointed a Receiver under the terms and conditions set out in the order of the District Judge dated 23rd of February, 1950. One of the terms and conditions was that the Receiver shall not grant leases without the leave of the court. Thereafter, a preliminary decree was passed by the District Judge on the 14th of February, 1955, by which the plaintiffs share was determined as two-third in the suit property and the defendants share as one-third in it. It was also provided in the decree that the Receiver shall remain in possession of the property on behalf of the parties. The Receiver was also directed to divide the properties between the parties in accordance with the decree. An appeal was filed by the defendants to this Court against that decree and cross-objection was filed by the plaintiffs. This Court by its order dated the 13th of April, 1955, stayed the proceedings for the final decree. The learned District Judge felt the necessity of inspecting the site of the factory on the 24th of November, 1957, in connection with certain orders which he had to pass relating to the refund of certain money which had been lying in deposit as security. He inspected the site on the 16th of December, 1957, and found that the factory was lying in ruins and was not properly looked after by the Receiver. He was also informed by the Receiver and the Advocate of the plaintiffs that someone was anxious to get the machinery as well as the premises on lease for doing business of making powder of barytas stones. On the 17th of December, 1957, the plaintiff made two applications, one for giving the property on lease and the other for the removal of the Receiver.. On the same date, another application was made by Respondent No. 1 that he was prepared to take the factory on lease for a period of five years on a monthly rent of Rs. 1,000/-provided that it was given in working order. Notice of these applications was given to the parties and the case was fixed for hearing on the 4th of January, 1958. The Receiver had submitted his resignation meanwhile and on the 4th of January, 1958, the court ordered that a Public Works Deptt. contractor be appointed to assess the value of the property and the case was adjourned to the 15th of January, 1958. The case was again adjourned to the 25th of January, 1958. On that date parries informed the Court that before the property is leased out, an opportunity may be given to them to arrive at a settlement and for that the case may be adjourned for one month. The case then came up for hearing on the 25th of February, 1958, but no compromise had taken