Pathak, J. - (1.) This appeal, by special leave, is directed against an order of a Division Bench of the Calcutta High Court substantially confirming an order of a learned single Judge of that Court on a receivership application in a pending suit.
(2.) The thirteenth respondent, the Punjab National Bank (hereinafter referred to as the "Bank") instituted Suit No. 521 of 1974 in the High Court of Calcutta against the appellant, Bharat Coking Coal Ltd., and the first respondent, the Raneegunge Coal Association Ltd., and others praying for a decree for Rs. 1,15,,76,464.45 and a declaration that (a) all stocks of coal, plant and machinery and (b) present and future book-debts, outstanding moneys, bill and documents belonging to the first respondent had remained hypothecated with the Bank as security by way of first charge for payment of the Bank"s claims, and that the charge in respect of (a) and, if the law so compelled, in respect of (b) also now stood shifted to the amount receivable by the first respondent from the Central Government through the Coal Mines Authority. It also prayed for the appointment of a Receiver.
(3.) The suit was brought on the allegations that the Raneegunge Coal Association enjoyed cash credit facilities with the Bank against hypothecation of its plant, machinery, spares and stores, stocks of coal, etc. Loans were also extended by the Bank to the Raneegunge Coal Association under two separate loan accounts. The Bank claimed a decree for the total of the amount due to it in the cash credit account and the loan accounts. It was pleaded that under the Coking Coal Mines (Nationalisation) Act, 1972, when all stocks of coal, plant and machinery, etc. on which the Bank had the first charge, stood transferred to and vested in the Central Government free from all encumbrances, the Bank"s first charge shifted from that security to the amount payable by the Central Government to the Raneegunge Coal Association through the Coal Mines Authority. It was also asserted that the other securities, including all present and future book-debts, belonging to the Raneegunge Coal Association were not transferred to or vested in the Central Government, by reason of the Explanation to S. 3 (j) (xi) of that Act and, therefore, the said securities remained subject to the first charge for payment of the amount due to the Bank. It was pleaded that in case those securities also were regarded as having vested in the Central Government free from all encumbrances, the said charge must likewise be taken to have shifted to the amount payable by the Central Government to the Raneegunge Coal Association through the Coal Mines Authority.;