JUDGMENT

Mootham, J. - This case raises two questions of importance, first, whether this Court has power under O. 40, Civil P.C. to appoint a receiver of property the subject of a simple mortgage and, secondly, if it has that power, whether the appointment should be made where the principal ground upon which it is sought is the non-payment of interest by the mortgagor.

2. The facts can be briefly stated. On 3rd July 1934, Babu Panchanan Banerji, who has since died and is represented by the appellants, borrowed the sum of Rs. 8,00,000 from the Maharaja of Sonepur, and as security for the loan and for the interest payable thereon he executed a simple mortgage of property situate in Bengal and the United Provinces. It was agreed that the loan should bear interest at the rate of sis per cent, per annum payable half yearly for two years and thereafter at seven per cent, payable annually. At the time the loan was taken Babu Panchanan Banerji's property was under the management of the Court of Wards and the deed of mortgage was accordingly executed by the Special Manager, of the Court of Wards of Bengal. In 1938 Babu Panchanan Banerji died, and three years later the mortgaged properties wer