HIRALAL PATNI Vs. LOONKARAN SETHIYA
LAWS(SC)-1961-4-62
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on April 11,1961

HIRALAL PATNI Appellant
VERSUS
LOONKARAN SETHIYA Respondents


Cited Judgements :-

RATANLAL MANDALAUS VS. RAM AVTAR [LAWS(DLH)-1996-2-52] [REFERRED TO]
MANI LAL VS. IIIRD ADDITIONAL DISTRICT AND SESSION JUDGE KANPUR DEHAT [LAWS(ALL)-1997-1-25] [REFERRED TO]
GIRISH CHANDRA GUPTA VS. GAMBHIR MAL PANDYA P LTD [LAWS(ALL)-1998-7-59] [REFERRED TO]
GOURI SHANKER VS. DINA NATH [LAWS(J&K)-1989-3-7] [REFERRED TO]
KARRI RAMAYA NAIDU VS. KARRI CHILAKAYYA NAIDU [LAWS(ORI)-1963-1-1] [REFERRED TO]
ICHHABATI MOHANTY VS. BISHNU CHARAN PAITAL [LAWS(ORI)-1982-11-9] [REFERRED TO]
RAM NIWAS KUMARIA PVT LTD VS. PREM PRAKASH ARYA [LAWS(CAL)-1984-2-9] [REFERRED TO]
SHANOOR BEGUM VS. RUKN UL MULK S ABDUL WAJID [LAWS(KAR)-1997-1-23] [REFERRED TO]
GLUCOSERIES PVT LTD VS. DEB KANTA ROY [LAWS(CAL)-1999-3-39] [REFERRED TO]
G K PERUMAL VS. SENNIAPPA CHETTAIR [LAWS(MAD)-1990-9-71] [REFERRED TO]
MAGMA LEASING LIMITED VS. JINDAL STEELS PRODUCTS [LAWS(CAL)-2004-1-40] [REFERRED TO]
NORTHERN PROPERTIES PVT LTD VS. KEDARNATH FATEHPURIA [LAWS(CAL)-2007-1-23] [REFERRED TO]
ISHWAR DAYAL VS. MOHAN SINGH [LAWS(MPH)-2010-4-17] [REFERRED TO]
ABOOBEKAR ABDULREHMAN AND CO VS. SHREEJI PROPERTIES [LAWS(BOM)-1992-7-40] [REFERRED TO]
ATLURI SEETHARAMADASS VS. SUNKARA RADHAKRISHNA [LAWS(APH)-1977-3-10] [REFERRED TO]
ATUL D SOHNI VS. B M CHOKSEY [LAWS(BOM)-1998-7-49] [REFERRED TO]
RAMKRISHNA GIRISHCHANDRA DODE VS. ANAND GOVIND KELKAR [LAWS(BOM)-1998-10-47] [REFERRED TO]
I C I C I LIMITED VS. PATHEJA BROTHERS FORGINGS AND STAMPINGS LIMITED [LAWS(BOM)-2000-3-42] [REFERRED TO]
I C I C I LTD VS. VEENA TEXTILES LIMITED [LAWS(BOM)-2000-6-12] [REFERRED TO]
BANK OF TOKYO MITSUBISHI LIMITED VS. CHEMBRA ESTATES AND COURT RECEIVER HIGH COURT BOMBAY [LAWS(BOM)-2001-1-63] [REFERRED TO]
IBRAHIM MUSALIAR VS. MUHAMMED THAMPI MUHAMMED IIYAS [LAWS(KER)-2010-11-231] [REFERRED TO]
URDU EDUCATION ASSOCIATION VS. DEPUTY DIRECTOR OF EDUCATION [LAWS(BOM)-2011-3-161] [REFERRED TO]
SUBHADRA RANI PAL CHOUDHARY VS. SHEIRLY WEIGAL NAIN [LAWS(SC)-2005-4-26] [REFERRED TO]
SHAVAX A LAL VS. SYED MASOOD HOSAIN [LAWS(APH)-1964-1-17] [REFERRED TO]
PRATIK MARKETING PVT LTD VS. PRATAP PROPERTIES LTD [LAWS(CAL)-2008-4-37] [REFERRED TO]
SIVADASA MENON VS. SUNNA SAHIB [LAWS(KER)-1977-7-38] [REFERRED TO]
HARI MALLICK VS. CHITTARANJAN SAMAL [LAWS(ORI)-1991-12-4] [REFERRED TO]
RAMBHUSAN DAS VS. RAMJI LAKSHMANJI [LAWS(PAT)-1962-3-1] [REFERRED TO]
BOKARO AND RAMGUR LTD VS. STATE OF BIHAR [LAWS(PAT)-1965-10-1] [REFERRED TO]
LAL BIHARI SINGH VS. TIPAN SINGH [LAWS(PAT)-1977-1-6] [REFERRED TO]
SAT BHARAI SRIGANGANAGAR VS. STATE OF RAJASTHAN [LAWS(RAJ)-2000-8-36] [REFERRED TO]
LALJI AGARWAL VS. STATE OF U P [LAWS(ALL)-2012-9-175] [REFERRED TO]
N.C.THOMAS VS. BIJI.A.KURUVILA [LAWS(KER)-2014-1-41] [REFERRED TO]
INDIAN OIL CORPORATION VS. SHIV SHANKAR SINGH [LAWS(JHAR)-2004-9-36] [REFERRED TO]
SHERALI KHAN MOHD. MANEKIA VS. STATE OF MAHARASHTRA [LAWS(BOM)-2013-1-280] [REFERRED TO]
K.P. PARAMESWARAN PILLAI VS. PARVATHY AMMA GOWRIKUTTY AMMA [LAWS(KER)-1984-7-53] [REFERRED TO]
KALINGA INSTITUTE OF MINING ENGINEERING VS. KISHORE CHANDRA NATH [LAWS(ORI)-2014-11-17] [REFERRED TO]
K.P. PARAMESWARAN PILLAI AND ORS. VS. PARVATHY AMMA GOURIKUTTY AMMA AND ANR. [LAWS(KER)-1986-7-61] [REFERRED TO]
RAMUNNI MENON AND ORS. VS. THANKAN AND ORS. [LAWS(KER)-2015-3-331] [REFERRED TO]
PENUMARTHI SURYANARAYANA (DIED) P.L. SASTNY AND OTHERS VS. P.S. SASTRY, RECEIVER OF SRI RAMA TALKIES, TENALI [LAWS(APH)-1970-9-25] [REFERRED TO]
HOWRAH TRADING COMPANY P. LTD. AND OTHERS VS. SMT. PRAMILA JALAN AND OTHERS [LAWS(CAL)-1994-7-26] [REFERRED TO]
M/S. SHAKTI INTERNATIONAL PRIVATE LIMITED VS. M/S. EXCEL METAL PROCESSORS PRIVATE LIMITED [LAWS(BOM)-2017-3-157] [REFERRED TO]
DEVENDRA DUTT PALIWA VS. GAMBHIRMAL PANDYA PVT. LTD. [LAWS(ALL)-2019-4-338] [REFERRED TO]


JUDGEMENT

Subba Rao, J. - (1.)This appeal by special leave is directed against the judgment dated October 14, 1960, of the High Court of Judicature at Allahabad confirming the order passed by the Civil Judge, Agra, directing the Official Receiver to take possession of the property of the appellant.
(2.)This case illustrates how the enforcement of an interlocutory order appointing a Receiver made in the interest of all the parties concerned could be obstructed and the object of the order itself be defeated by dilatory tactics adopted by one party or other.
(3.)At Agra, there were three spinning mills and one flour mill, all of which together were described as the Johns Mills; and, originally, the John family or their predecessors were the owners of all these mills. At the time the present proceedings were initiated, other persons had acquired interest therein. The following persons were the joint owners of the mills:
(1) Hiralal Patni, ( the appellant, and Munni Lal Mehra . . . .19/40th sharer;

(2) Gambhirmal Pandia Private Ltd ... ... 8/ 40th share;

(3) M/s John and Co............11/ 40th share; and

(4) I. E. John ...... . . .2/40th share.
Seth Loonkaran Sethiya, respondent No. 1 advanced large amounts to M/s John and Co. on the security of its business assets and stocks. On April 18, 1949, the said Sethiya filed O. S. No. 76 of 1949 in the Court of the Civil Judge, Agra, against John and Co. for the recovery of the amount due to him by sale of the assets of the said company. To that suit the partners of M/s John and Co. for convenience described as 'defendants 1st set", and the partners of M/s Johns Jain and Co., who were for convenience described as "defendants 2nd set", were made parties. Pending the suit, the said Sethiya filed an application under O. XL, R. I, Code of Civil Procedure, for the appointment of a Receiver. By an order. dated May 21, 1949, the learned Civil Judge appointed two joint Receivers and directed them to run the three spinning mills. Hiralal Patni filed an appeal against that order to the High Court at Allahabad, and the said Court by its order dated . August 22, 1949, modified the order of the Civil Judge confining the order of appointment of Receivers only to the share of Messrs John and Co. in John Jain' Mehra and Co. Loonkaran Sethiya made another application in the Court of the Civil Judge for the appointment of a Receiver for the property of Hiralal Pani and the learned Civil Judge by his order dated December, 1951, directed the Receivers to take possession of the appellants share in the mills also. Against this order an appeal was preferred to the High Court and the operation of the said order was stayed pending the disposal of the appeal. On April 5, 1954, the Civil judge passed a preliminary decree against the defendants therein directing them to deposit the decree amount in court within the prescribed time, and in default the plaintiff was given a right to apply for a final decree for sale of the business assets of the defendants. The decree also gave a right to apply for a personal decree in case the sale proceeds were not sufficient to discharge the decree. The preliminary decree directed that the Receivers should continue on the property until discharged. Hiralal Patni preferred an appeal to the High Court against the said preliminary decree and applied for interim stay of its operation. On August 23, 1955, the High Court discharged the Receivers appointed by the learned Civil Judge, and appointed another Receiver in their place. On March 25 1955, the learned Civil Judge prepared a scheme for running the mills, and the parties preferred appeals against that scheme to the High Court. The said appeals were compromised and under the terms of the compromise the parties agreed to take different mills on lease for a period of three years from the Receiver. On January 14. 1956, the Receiver executed a lease in respect of the flour mill in favour of Hiralal Patni for a period of three years. Under the lease deed it was agreed that he should deliver the demised premises to the Receiver upon the expiry of the term. In due course, on March 14, 1956, a final decree was made in the suit for the sale of the properties, but the final decree was silent in regard to the Receiver appointed earlier. On September 29, 1958, Hiralal Patni applied to the High Court for extension of the lease by three years. On January 16, 1959, the High Court rejected the application on the ground that the lease was only a stopgap arrangement and that it was for the Receiver to make a fresh arrangement for the future under the supervision and directions of the Civil Judge, Agra. On January 17, 1959, the Receiver applied to the Civil Judge for instructions whether he should proceed at once to dispossess the appellant. On notice Hiralal Patni raised various objections and claimed that he was entitled to remain in possession of the property as its owner. The learned Civil Judge disallowed his objections and held that the Receiver derived his authority from the preliminary decree, and directed the Receiver to lease out the said flour mill by auction for a period of two years. Pursuant to that order, an auction was held, and the appellant was the highest bidder, and he paid the lease amount and executed a formal lease deed. Not satisfied with the order of the Civil Judge, Hiralal Patni preferred an appeal to the High Court. The High Court in an elaborate judgment considered the contentions raised on behalf of Hiralal Patni and dismissed the appeal. Hence the present appeal.


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