M.Katju, R.S.Tripathi, JJ. - (1.) This appeal has been filed against a judgment and decree dated 14.8.1997 passed by 1st Additional Civil Judge (Sr. Division), Meerut dismissing the original Suit No. 549 of 1986 with costs.
(2.) The history giving rise to his first appeal is that the Original Suit No. 549 of 1985 was filed by the appellants against the respondents. In the above suit it was pleaded that the appellants took a commercial loan of Rs. 11.70 lacs and an additional loan of Rs. 3.50 lacs for M/s. Rasolia Cold Storage Pvt. Ltd. from Uttar Pradesh Financial Corporation in the year 1979-1980 executing agreements. The amounts of the above loans were not paid by the appellants and consequently a recovery certificate was sent to the District Magistrate, Defendant No. 2 by the Uttar Pradesh Financial Corporation. On the basis of the aforesaid recovery certificate defendant No. 2 District Magistrate, Meerut appointed defendant No. 3 Potato Development Officer as Receiver of the above Rasolia Cold Storage and possession of the same was taken over by the Receiver. The appellants in their above suit challenged the appointment of defendant No. 3 as Receiver and pleaded that the possession taken over by the Receiver was illegal. They alleged to have suffered loss worth rupees several lacs on account of misappropriation of the articles including machinery, Potato bags, furnitures etc. of the Cold Storage. The further contention raised in the suit was that the Receiver did not maintain any account after taking over possession and misappropriated 37279 bags of Potato belonging to the farmers, furnitures and other articles all amounting to Rs. 17,68,450.00. Appellants filed Misc. Civil Writ Petition No. 10627 of 1984 against the respondents before this Court challenging the appointment of the Receiver and by virtue of an order passed in that writ petition possession of the Cold Storage was ordered to be restored back to the appellants on their depositing Rs. 1.00 lac. Rs. 1.00 lac was deposited and the Cold Storage in question was restored back to the plaintiffs.
(3.) According to the plaint case, after taking over possession of the Cold Storage, the respondents misappropriated many articles and did not give any proper list of articles while handing over its possession back to the appellants. As per the plaint case, the respondents in collusion with each other managed to sell the property of the Cold Storage worth Rs. 1.00 crore for an amount of Rs. 17.00 lacs only to the Defendant Nos. 5 to 7. They claimed the relief of setting aside the above sale and claimed adjustment of the loss suffered by them on account of appointment of the Receiver. The following reliefs were prayed for by appellants : (i) That an amount of Rs. 17,68,450.00 suffered by way of loss by them be declared to be adjustable against their loans dated 23.12.1990 and 30.3.1979. (ii) That the defendant-respondents be restrained from realising the amount of loan by way of arrears of land revenue or through any process by adopting coercive measures or by auction of the pledged property till the amount of Rs. 17,68,450.00 is adjusted or any other amount found to be paid by the plaintiffs to the defendants stands adjusted. (iii) That the order passed by Defendant No. 2 confirming the sale and the other proceedings relating to that passed in favour of Defendant Nos. 5 to 7 pertaining to Rasolia Cold Storage be set aside and declared void.;