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TMI Blog1986 (9) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... ntment of the Receiver pending the hearing of the application for appointment of the Receiver. 2. The aforesaid P.M.A.T. No. 614 of 1986 has arisen out of order D/- 22-11-85 in the Mortgage Title Suit No. 47 of 1985 in the Court of the learned Assistant District Judge, Asansole, whereby the learned Assistant District Judge while issuing the notice upon the defendants of the suit in connection with the plaintiff's application for appointment of the Receiver, has rejected the plaintiff's prayer for ad interim appointment of the Receiver. 3. The Bench of this Court, presided over by Mr. Basak, J. and Mr. Das Ghosh, J. by its order dt 4-8-86 admitted the appeal and by its order of the same date with regard to plaintiff-appellant&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the defendants did not pay the sum of ₹ 24,31,000/- and odds with interest up to April 1985, due to the plaintiff in spite of demands. The suit was filed in June, 1985. The application for appointment of the Receiver was filed in Nov. 1985 on the allegations, inter alia, that the defendant 1, Company, was endangering the securities by not paying the claims and that there was every likelihood of filing a petition for winding up of the unit of defendant No. 1 by any of the several creditors of the defendant 1 Company, that any of such creditor while filing a suit may get the securities attached before judgment and that the terms of the agreement in connection with credit facilities between the parties permit the plaintiff to ask for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceiver must show prima facie that he has strong case, or good title to the property or a special equity in his favour and that the property in the hands of the defendant is in danger of being wasted, (ii) where the property is in medio, that is to say, in the possession of no one, a Receiver can readily be appointed. But where any one is in possession under a legal claim, strong and compelling reasons are necessary for interfering with such possession (iii) An application for the appointment of the Receiver should always be made promptly and delay in making it is a circumstances unfavourable to such an appointment. The court while considering the question whether it will be just and convenient to appoint the Receiver must keep in mind the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the balance sheet up to 1982. The defendant 1 in the affidavit-in-opposition has admitted the total loss of ₹ 7,44,000/- and odds up to December, 1982 but denies that the circumstances have occurred endangering the securities. The admitted fact is that the defendant No. 1 defaulted in payment of interest according to the terms of the agreement. Mr. Mallick while drawing our attention to the decision in the case of Hardwarimull Dibichand v. Lalchmandas Purukchand reported in AIR 1919 Cal 860(2) has submitted that in a suit of this nature based on securities the Receiver should be appointed as a matter of course. 12. It has already been shown that there was delay in filing the application for appointment of the Receiver in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioning of the business. Mr. Mallick submits that the Receiver may be directed to take only symbolical possession of the securities after making inventories and allow the business to run. Such suggestion does not appear to be practicable. The Receiver will be officer of the court. The court does not consider it just and convenient to appoint the Receiver to function as such as suggested by Mr. Mallick. It will create confusion and complication which in no time would go to stop the sunning of the business. For protection of the securities, plaintiff may take recourse to other method in the form of injunction application for the purpose but the appointment of Receiver in this case where the defendant's business is running will not be just ..... X X X X Extracts X X X X X X X X Extracts X X X X
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