IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Manjari Nehru Kaul, J.
Rikhi Ashram Om Waheguru Nirmal Panth – Appellant
Versus
Ram Singh Chela Mahant Waryam Singh & Ors. – Respondents
CR-1313 of 2021 (O&M)
Decided On : 06-05-2022
Receiver - Suit Property - Order XL CPC - Summary of Act Sections: Order XL Rule 1 - The court conferred only such powers upon the Receiver as prayed for by the plaintiff-Trust in its application i.e. to look after the income and expenditure of the plaintiff-Trust. The Receiver was not competent to lease out the land by way of public notice in absence of any powers of management of the suit land/properties of plaintiff-Trust being conferred upon him.
Fact of the Case:
The plaintiff filed a suit seeking declaration and injunction against the defendants regarding the ownership and management of certain properties. During the pendency of the suit, the plaintiff filed an application for the appointment of a Receiver to maintain the income and expenditure of the land owned by the plaintiff-Trust. The application was dismissed by the trial Court, and the subsequent application for issuance of directions to lease out the agricultural land was also dismissed.
Finding of the Court:
The court found that the Receiver was only conferred with powers to look after the income and expenditure of the plaintiff-Trust, and was not competent to lease out the land by way of public notice. The court also noted that the authority of defendant No.2 to lease out the land would be a matter of trial and could not be determined at this stage.
Issues: The issues revolved around the powers of the Receiver and the authority of defendant No.2 to lease out the land.
Ratio Decidendi: The court held that the Receiver was not competent to lease out the land by way of public notice as he was only conferred with powers to look after the income and expenditure of the plaintiff-Trust. The authority of defendant No.2 to lease out the land would be determined at trial.
Final Decision: The petition was dismissed as the court was not inclined to set aside the impugned order.
JUDGMENT
Manjari Nehru Kaul, J. (Oral) - Instant revision petition has been filed under Article 227 of the Constitution of India with a prayer to set aside the order dated 15.06.2021 (Annexure P-9) passed by Civil Judge (Jr. Div.) Jagraon vide which an application filed for issuance of appropriate/necessary directions to the Tehsildar, Jagraon/Receiver appointed under Order XL CPC by the trial Court vide order dated 09.03.2021 (Annexure P-7) to lease out the suit property by way of an open bid at competitive prevailing rates, was dismissed.
2. For the sake of convenience, the parties to the lis hereinafter would be referred to by their original position in the suit.
3. Before proceeding further, it would be apposite to give a brief sequence of events leading to the filing of instant petition. The plaintiff petitioner filed a suit for declaration to the effect that Rikhi Ashram Om Waheguru Nirmal Panth plaintiff-Trust Agwar Lopon Kothi Swami Nahar Singh Ji (hereinafter referred to as 'plaintiff-Trust') and other properties as mentioned in the plaint were owned, possessed and managed by four Sadhus Trustees and two members of Ranjit Singh Family under the patronage of duly elected and incumbent Mahant Darshan Singh Chela Mahant Waryam Singh Chela Swami Nahar Singh Ji. It was further pleaded that the defendants-respondents thus, had no right, title or concern with the suit property of the plaintiff-Trust. A further declaration was also sought that Mahant Darshan Singh was duly appointed Mahant/Mohitmum of the plaintiff-Trust and was thus, entitled to manage and control the suit properties. Consequential relief of permanent injunction was also sought from restraining the defendants from interfering in the possession, management, control and administration of plaintiff-Trust and its properties including the control and management of the hospital in the name of Swami Nahar Singh Memorial Society and agricultural land etc. A further relief of rendition of account from defendant No.2 from the year 2009 upto March, 2014 was also sought on the basis of oral and documentary evidence. It was pleaded that the plaintiff-Trust had been formed by Nahar Singh s/o Santa Singh vide Trust Deed dated 04.01.1921. On the basis of a compromise effected between Gurkirpal Singh, Harbans Singh sons of Ranjit Singh son of Swami Nahar Singh and the Trustees in 1980, the plaintiff-Trust continued to function in accordance with the intention of the founder of the plaintiff-Trust as well. It was also stated in the plaint that Sant Darshan Singh was appointed as Mohtimum of the plaintiff-Trust vide resolution No.39 dated 18.03.2014. Since then the plaintiff-Trust and all its properties i.e. moveable and immoveable were under the control of Mahant Darshan Singh. However, after the resignation of defendant No.1 as Chairman of the plaintiff-Trust, defendant No.1 was removed from the post of Mahant vide resolution No.36 dated 02.03.2014. After his expulsion, defendant No.1 joined hands with defendants No.2 to 7 and was trying to interfere into the peaceful possession, management and control of the plaintiff-Trust and of its properties.
4. Defendants No.2 to 7 after putting in an appearance before the trial Court filed their written statement and thereafter, the trial of the suit commenced after framing of issues.
5. During the pendency of the suit, an application under Order XL read with Section 151 CPC (Annexure P-3) was moved by the plaintiffTrust for the appointment of a Receiver to maintain the income and expenditure of the land owned and possessed by the plaintiff-Trust so as to avoid multiplicity of criminal and civil litigations between the parties and also to prevent irreparable loss and wastage of funds etc. of the plaintiffTrust. The said application was allowed by the trial Court vide order dated 16.02.2018 (Annexure P-4) and Mr. Subhash Chander, Advocate was appointed as Receiver of the Court to look after the income and expenditure of the plaintiff-Trust
The main legal point established in the judgment is that the Receiver's powers are limited to those conferred upon him by the court, and he cannot exceed those powers, especially in matters of proper....
The appointment of a receiver requires clear evidence of mismanagement and an element of urgency, which was not established in this case.
At suit institution stage, courts limited to prima facie scrutiny of plaint for cause of action; cannot suo motu enquire into plaintiff's representative authority without notice and registration.
Advocates appeared :For the Appellant : Ravish Agrawal, Sanjay Agrawal For the Respondent : Pushpendra Yadav, R. N. Singh, Akshay Pawar
Authorities must exercise their powers as mandated by statute; failure to adhere to prescribed procedures renders actions invalid, especially when natural justice principles are violated.
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