Anil Kumar Sen, J. - (1.) This is a revisional application directed against an order dated August 16, 1980, passed by the learned Subordinate Judge, 10th Court, Alipore, in Title Suit No. 114 of 1976. By the order impugned the learned Subordinate Judge has rejected an application made by Effective Trade House Private Limited, the petitioner before us, for being added as a party to the said suit which is a suit for enforcement of a claim on mortgage. The short point involved in the application is as to whether the petitioner having entered into a contract with the defendant to run the Mill which is the subject-matter of mortgage upon investment of their own money can be said to have such interest in the subject-matter as would entitle them to be added as a party to the suit. The revisional application is being contested both by United Bank of India, the plaintiff and the United Flour Mills Company Limited, the defendant.
(2.) On October 14, 1976, United Bank of India (hereinafter referred to as the plaintiff) instituted the aforesaid referred suit against United Flour Mills Company Limited (hereinafter referred to as the defendant). It is not in dispute that amongst the properties covered by the mortgage was not only the plant and its machineries but the entire stock of wheat and wheat products including all future stock of wheat and wheat products and all book debts present and future. On applications being made both by the plaintiff and the defendant Joint Receivers were appointed by the Court and the Court by its order dated April 23, 1977, allowed the company to run the business on terms and conditions set out in the order including a term that the defendant company could secure fresh finance for running the Mill by hypotecation of its assets other than the plaintiff-bank's securities in suit, and was not to deal with, charge, hypothecate or dispose of the said securities.
(3.) The plaintiff preferred an appeal to this Court, being F.M.A. No. 1242 of 1977. On September 1, 1977, the said appeal was disposed of on compromise between the plaintiff and the defendant and the terms of settlement expressly provided that the defendant would be entitled to enter into an agreement with the petitioner, Effective Trade House Private Limited (hereinafter referred to as the petitioner) for running the Mill on financial accommodation to be provided by the petitioner. The terms of the proposed agreement between the defendant and the petitioner were made a part of the terms of settlement and had the approval of the plaintiff. That agreement provided that the petitioner would advance from time to time money not exceeding Rs. 20,00,000/- for procuring wheat and carrying on the milling process subject to the petitioner having a lien and pledge on the wheat so procured and the products of the said wheat and the sale proceeds of such products. The agreement further provided that the management of the Mill shall be under the direct control of the petitioner and the petitioner would go on paying the entire surplus income from running of the Mill not being less than Rs. 25,000/- per month to the plaintiff Bank towards repayment of their loan to the defendant. The defendant executed an irrevocable power of attorney in favour of the petitioner for the said purpose. The petitioner claims that while he was running the Mill investing a total sum of Rs. 18,00,000/- and in terms of the consent order passed in F.M.A. No. 1242 of 1977, and had repaid a substantial part of the defendant's debt to the plaintiff, the defendant fell out with the petitioner and is arranging to enter into a settlement with the plaintiff in such a manner as to defraud the petitioner of all their rights under the agreement and investments made by them. On such an allegation the petitioner filed an application for being added as a party defendant to the suit so that they may be heard before the Court records any settlement between the plaintiff and the defendant in the aforesaid suit.;