Bombay High Court Dismisses Revision Against Eviction Decree — Court Receiver Need Not Seek Separate Leave to Sue When Appointed with Full Powers Under Order 40 Rule 1(d) CPC. Notice Under Section 106 T.P. Act Demanding Immediate Possession Is Not Invalid If Suit Filed After Notice Period.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The plaintiff, the Court Receiver appointed by the High Court in Suit No.234 of 1987, was the receiver of the suit property 'Dev Ashish' at Peddar Road, Mumbai. The defendant, M/s. Shree Ram Mills Ltd. (now Shree Ram Urban Infrastructure Limited), was a tenant in the property. Since the defendant was a public limited company with paid-up share capital of Rs.1 crore, it was not protected under the Maharashtra Rent Control Act, 1999. The plaintiff issued a notice dated 26.7.2001 terminating the tenancy with immediate effect and demanding possession and mesne profits. The defendant failed to vacate, leading to the filing of an eviction suit by the Court Receiver. The suit was decreed, and the defendant's appeal (Appeal No.837/2003) was dismissed on 12.6.2009. The defendant then filed the present civil revision application. The defendant raised two grounds: (1) the Court Receiver had not obtained leave of the appointing court to file the suit, and (2) the notice demanding immediate possession was defective under Section 106 of the Transfer of Property Act, 1882. The plaintiff contended that the Receiver was appointed with full powers under Order 40 Rule 1(d) CPC, which included the power to sue, so no separate leave was needed. Regarding the notice, the plaintiff argued that under Section 106(3) T.P. Act, a notice is not invalid if the suit is filed after the expiry of the notice period. The court held that the Receiver, appointed with full powers under Order 40 Rule 1(d), had inherent authority to sue without separate leave. The court also held that the notice, though demanding immediate possession, was not invalid because the suit was filed after the expiry of the requisite notice period. The revision application was dismissed.

Headnote

A) Civil Procedure - Court Receiver - Power to Sue - Order 40 Rule 1(d) CPC - A Court Receiver appointed with full powers under Order 40 Rule 1(d) CPC, including the power to sue and be sued, does not require separate leave of the court to file an eviction suit; the authority is inbuilt in the order of appointment. (Paras 1-3)

B) Transfer of Property Act - Notice to Quit - Validity - Section 106 Transfer of Property Act, 1882 - A notice under Section 106 T.P. Act demanding immediate possession is not invalid if the suit is filed after expiry of the requisite notice period, as per sub-section (3) of Section 106. (Paras 2-3)

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Issue of Consideration

Whether a Court Receiver appointed with full powers under Order 40 Rule 1(d) CPC requires separate leave of the court to file an eviction suit; Whether a notice under Section 106 Transfer of Property Act demanding immediate possession is invalid

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Final Decision

Civil Revision Application No. 452 of 2009 dismissed; eviction decree and dismissal of appeal confirmed

Law Points

  • Court Receiver appointed with full powers under Order 40 Rule 1(d) CPC has inherent authority to sue without separate leave
  • Notice under Section 106 Transfer of Property Act is not invalid if suit is filed after expiry of notice period despite immediate termination clause
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Case Details

2010 LawText (BOM) (09) 56

Civil Revision Application No. 452 of 2009

2010-09-16

J.H. Bhatia, J.

R.A. Thorat, Vaibhav Sugdare, Samsher Garud, Ms. Uma Vyavaharkar (for applicants); N.V. Walawalkar, Senior Counsel (for respondent)

M/s. Shree Ram Mills Ltd. (Now known as Shree Ram Urban Infrastructure Limited)

The Court Receiver, High Court, Mumbai in High Court Suit No.234 of 1987

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Nature of Litigation

Civil revision against dismissal of appeal confirming eviction decree

Remedy Sought

Defendant sought to set aside the eviction decree and dismissal of appeal

Filing Reason

Defendant challenged the eviction decree on grounds that Court Receiver lacked authority to sue without leave and that notice under Section 106 T.P. Act was defective

Previous Decisions

Suit decreed in favor of plaintiff; Appeal No.837/2003 dismissed on 12.6.2009

Issues

Whether a Court Receiver appointed with full powers under Order 40 Rule 1(d) CPC requires separate leave of the court to file an eviction suit Whether a notice under Section 106 Transfer of Property Act demanding immediate possession is invalid

Submissions/Arguments

Defendant argued that Court Receiver had not obtained leave of the appointing court to file suit, and notice demanding immediate possession was defective under Section 106 T.P. Act Plaintiff argued that Receiver was appointed with full powers under Order 40 Rule 1(d) including power to sue, so no separate leave needed; notice not invalid under Section 106(3) T.P. Act if suit filed after notice period

Ratio Decidendi

A Court Receiver appointed with full powers under Order 40 Rule 1(d) CPC has inherent authority to sue without separate leave; a notice under Section 106 T.P. Act demanding immediate possession is not invalid if the suit is filed after the expiry of the requisite notice period, as per Section 106(3) T.P. Act.

Judgment Excerpts

the Court Receiver was appointed by this High Court with full powers under Order 40(1)(d) and this power included to sue or be sued and, therefore, the leave to file the suit was inbuilt in the order of his appointment. in view of the provisions of sub-section (3) of Section 106 of T.P. Act, the notice shall not be deemed to be invalid under sub-section (1), if the suit is filed after expiry of the requisite period of notice.

Procedural History

Suit No.60/63 of 2002 filed by Court Receiver for eviction; decreed; defendant filed Appeal No.837/2003 which was dismissed on 12.6.2009; defendant then filed Civil Revision Application No.452 of 2009 in the High Court.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 40 Rule 1(d)
  • Transfer of Property Act, 1882 (T.P. Act): Section 106
  • Maharashtra Rent Control Act, 1999:
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High Court Bombay High Court Dismisses Revision Against Eviction Decree — Court Receiver Need Not Seek Separate Leave to Sue When Appointed with Full Powers Under Order 40 Rule 1(d) CPC. Notice Under Section 106 T.P. Act Demanding Immediate Possession Is Not ...