JUGAL KISHORE JAISWAL Vs. PRADIP GUPTA
LAWS(CAL)-1979-12-36
HIGH COURT OF CALCUTTA
Decided on December 12,1979

JUGAL KISHORE JAISWAL Appellant
VERSUS
Pradip Gupta Respondents

JUDGEMENT

Rabindra Nath Pyne, J. - (1.) The State of Bihar (hereinafter referred to as 'the petitioner' has made this application for an order, inter alia, that the receiver appointed in the above Special Suit be directed not to work the coal mines named 'Khas Rudi Badam Colliery' situated in district of Hazaribag. There are other prayers in the said application which are set out hereinafter. The facts hading to the making of this application may briefly be stated.
(2.) Jugal Kishore Jaiswal (who is hereinafter referred to as 'Jaiswal') the respondent in this application as plaintiff filed the above Special Suit No. 59 of 1978 against the other respondent Pradip Gupta for filing of the arbitration agreement contained in the Deed of Partnership dated June 25, 1977, ordered into between Jaiswal and Gupta to carry on partnership business under the name and style of 'Khas Rudi Badam Colliery', which according to Jaiswal was dissolved by him by a notice in writing. In the said suit on the application of Jaiswal made under section 41 of the Arbitration Act, 1940 by an order made by the consent of the parties to the said proceeding Jaiswal was appointed as the Receiver over and in rasped of all businesses carried on under the said partnership deed and he was directed as Receiver to take possession of Rudi Badam Colliery (hereinafter referred to as "the said Colliery") situate at village Rudi, Badam, Condalpara, Rautpara, Kutulua, like, Lakura, Chandaul and Pundaul, P.S.B. Barkagaon in the district of Hazaribag, Bihar. Thereafter on August 7, 1978 an order was passed directing the Receiver to file necessary returns and applications to the various Authorities as mentioned in the said order and that the said authority would be entitled to give all assistance and protection to the Receiver in the matter of getting requisite explosives, sales-tax permit for transport of coal and in working of the Colliery and to raise, dispatch and sell coal. By another order made by consent of the parties to the said suit (i.e. Jaiswal and Gupta) on August 8, 1978 liberty was given to the Receiver to carry on the business of the said Colliery and various authorities as mentioned in the said order were directed to give assistance and protection to the Receiver for the purpose of carrying on the said business end the working of the said Colliery. It appears that pursuant to the above orders the Receiver took steps for the working of the Colliery and for that matter obtained necessary certificates and/or permissions from different Authorities under the Stale of Bihar. Thereafter, upon mentioning of the matter on behalf of the State of Bihar an order was passed by Sabyasachi Mukherji, J. on November, 17, 1978 to the effect that apart from the appointment of the Receiver the rest of orders previously passed directing the Receiver to carry on mining operation as also to seek and obtain assistance of the appropriate Government officials for that purpose would be stayed for a period of fortnight from that date and the State of Bihar was given liberty to make an appropriate application upon notice to all parties within the said period. Thereafter, on an application of the State of Bihar an order was made by Sibyasachi Mukharji, J. on February 26, 1979 whereby the orders dated 4th, 7th and 9th August 1978 were recalled and the Receiver was discharged subject to filing of accounts. Against the laid order dated 26th February 1979 Jaiswal made an application for special leave to appeal to the Hon'ble Supreme Court of India. the said application was contested by the State of Bihar. The Supreme Court by its order dated August 13, 1979 recalled the said order dated February 26, 1979 and gave 1 various directions as will appear from the order. The relevant portion of the Supreme Court's order is set out hereunder: "The order pissed by High Court on 26th February 1979 recalling the earlier orders dated 4th, 7th and 8th August, 1978 and discharging the appellant as receiver cannot be sustained. We do not see how an order appointing receiver in a suit between the two parties can be vacated at the instance of third party. If the State of Bihar has any rights in respect of the Colliery in question, it is always open to the State of Bihar to enforce such rights against the receiver after obtaining leaves of the High Court which appointed the receiver. But the receiver certainly could not be discharged at the instance of the State of Bihar, We, therefore set aside the order discharging the appellant as receiver but we make it clear that it will be open to the State of Bihar to adopt whatever proceedings are available to it for the purpose of enforcing its right, if any, In respect of the Colliery in question against the receiver after obtaining leaves of the High Court. The appellant as receiver, will not work the colliery for a period of two weeks from to day but it will be open to the appellant to remove the coal at the pit head and sell the same after it is inventoried in the presence of an Officer of the State of Bihar. The State of Bihar will depute an Office for this purpose within four days from today the State of Bihar does not depute an Officer within the aforesaid period of four days, the appellant will be at liberty to remove and sell the coal it the pit head for the purpose of making payment to the workers. The appellant will keep and maintain proper accounts which will be open for inspection by an authorised officer of the Government of Bihar."
(3.) Thereafter, the State of Bihar hae made the instant application praying that:- "(a) The Receiver appointed herein be directed not to work the mines mentioned in paragraph 1 hereof; (b) Ad-interim order in terms of prayer (a) above ; (c) Alternatively, the Receiver appointed herein be directed to work the mines is accordance with the law ; (d) Leave be given to your petitioner, the State of Bihar to intervene in Special Suit No. 59 of 1978 (Jugal Kishore Jaiswal v. Pradip Gupta) and in the said application under Section 41 of the Arbitration Act, 1940 and if necessary be added at n party defendant thereto ; (e) If necessary, leave be given to your petitioner, the State of Bihar to come in and be examined as prointerse sue; (f) Leave be given to your petitioner and/or its agents or authorised officers to institute appropriate proceedings and/or to take appropriate actions against the Receiver under the provisions of Bihar Land Reforms Act, 1950, the Mines and Minerals (Regulation & Development) Act, 1957 the Coal Mines (Nationalisation) Act 1973 as amended upto 1976, the colliery Control Order 1945, the Industries Development and Regulation Act, 1951 and other statutory enactments which are applicable relating to the mines and/or operation thereof; (g) Leave be given to your petitioner or its agents or authorised officers to take possession of the mines in question under and in terms of the provisions of the Bihar Land Reforms Act, 1950 and the Mines & Minerals (Regulation & Development) Act 1957 of amended upto 1972 from the hands of the parties or from the receiver as the case may be and to institute proceedings and/or to take actions against the Receiver for damages already suffered or likely to be suffered by your petitioner in future ; (h) Costa of and incidental to this application be paid by the petitioner. (i) Such further or other order or orders be made and/or direction or directions be given as will afford complete relief to your petitioner.";


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