Appeal under clause 15 of Letters Patent maintainable.

V. RAMASWAMI J. :- This is an appeal preferred by the Joint Receivers of Micro Tools Ltd. The Industrial Finance Corporation of India, the first respondent herein filed O.P. 200 of 1977 on the file of this Court under Sec.30 of the Industrial Finance Corporation Act, 1948 praying for sale of the properties of M/s Micro Tools Ltd., described in the mortgage deed dated 2nd May 1967, and the deed of further charge created thereunder and for the appointment of a receiver in respect of the said properties. They have also prayed for a direction to the Receiver to take possession of the properties forthwith. By an order dated 26th July 1977, this court appointed two advocates, Messrs. G. Gopalaswami and A. Sivaji, as Joint Receivers and directed them to take possession of the factory, pursuant to this order, the Joint Receivers took possession of the factory, made a detailed inventory of the machineries and other articles and filed a first report. Thereafter the Joint Receivers were visiting the factory and taking such other action as is necessary to keep the machinery and other articles intact including supervision of the watch and ward staff. Various other proceedings also appear to have been taken in order to maintain the discipline of the watch and ward staff and make available the security for the satisfaction of the mortgage debt due to the first respondent.

At the time when the two Joint Receivers were appointed, this court ordered an initial remuneration of Rs. 2000 which was divided by the two receivers equally. One of the Joint Receivers Mr. G. Gopalaswami was relieved from receivership at his own request by an, order dated 21-11-1979 and at that time he was paid an additional remuneration of Rs. 1000. By the same order, this court appointed Mr. B. Soundara Pandian, an advocate of this court as a Joint Receiver in the place of Mr. G. Gopalaswami. This court also directed the new Joint Receivers to call for tenders for purchase of the factory by publishing advertisements in the newspapers widely. The Joint Receivers accordingly called for tenders, making wide publication throughout the country. Among the offers received, the highest was one for Rs. 38,00,000. On the suggestion made by the first respondent herein, the Industrial Credit and Investment Corporation of India Ltd., the third respondent herein and the Tamil Nadu Industrial Investment Corporation Ltd. the fourth respondent herein who are also creditors having certain claims over Micro Tools Ltd. this court directed the Joint Receivers to appoint Government approved valuers for valuing the properties.

These valuers valued the land and building at Rs. 34,00.000, and machineries at Rs. 68,31,475. Since the offer of Rs. 38,00,000, was nowhere near the aforesaid estimation, this court directed the Joint Receivers to invite fresh offers. One Messrs Bijay Tractors Spares, Calcutta, made an offer for Rs. 51,51,551, and this offer was accepted by this court by an order dated 23rd April 1980. Though the party had deposited a sum of Rs. 1,00,000, as an initial deposit, had defaulted to furnish Bank guarantee and pay the balance sale consideration within the time given by this court and therefore the sale in favour of the said party was set aside and the sum of Rs. 1,00,000 deposited by the said party was forfeited.

On further directions given by this Court, the Joint Receivers again published inviting offers and the highest offer made this time was Rs. 50,76,001, and that was accepted by this court. The purchasers deposited the entire sum of Rs. 50,76,001 and the sale was confirmed in their favour on 3-2-1981. While submitting their accounts, the Joint Receivers filed a memo praying to fix their remuneration at 5 per cent of 'the sale consideration realised out of the sale of Micro Tools factory.' It may be mentioned that the Joint Receivers were paid then and there whatever out-of-pocket expenses they made in respect of the administration of the factory or the sale by p