Bombay High Court Allows Appeal in Property Dispute Case — Court Receiver Appointed to Protect Suit Premises Pending Trial. Dispute Involves Alleged Illegal Dispossession of Widow and Minor Son from Residential Flat and Office Premises by In-Laws.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The appeal arises from a suit filed by Khushnuma Ibrahim Khan and her minor son Raghib Ibrahim Khan (appellants) against Asadullah Khan and others (respondents) seeking declaration of ownership and possession of a residential flat (A/505, NooreJehan Complex) and an office premises. The appellants claimed that the flat was purchased by the husband of the first appellant, Ibrahim Khan, who died intestate, and that the appellants are the legal heirs. They alleged that after the death of Ibrahim Khan, the respondents, who are relatives, illegally dispossessed them from the flat and office. The trial court initially appointed a Court Receiver on 14 and 16 February 2012, but later vacated that order on 13 April 2012, declining to appoint a receiver. The appellants appealed. The High Court examined the evidence, including documents showing ownership and possession, and found that the appellants had a strong prima facie case. The court noted that the respondents had not produced any documents to show their own title or lawful possession. The balance of convenience was in favor of the appellants, as they were the widow and minor son of the deceased owner. The court held that the trial court had erred in vacating the receiver order. The High Court allowed the appeal, set aside the trial court's order, and appointed the Court Receiver to take possession of the suit premises, with directions to hand over possession to the appellants, subject to the appellants furnishing an undertaking to pay mesne profits if ultimately not entitled. The respondents were directed to hand over possession to the Receiver.

Headnote

A) Civil Procedure - Appointment of Court Receiver - Prima Facie Case - The court considered the principles for appointment of a receiver under Order 40 Rule 1 of the Code of Civil Procedure, 1908 - The appellants, widow and minor son, claimed to be owners and in possession of the suit flat and office, and alleged illegal dispossession by the respondents - The court held that the appellants had made out a strong prima facie case of ownership and possession, and that the balance of convenience was in their favor - The court appointed the Court Receiver to take possession of the suit premises and directed the respondents to hand over possession to the Receiver, who would then give it to the appellants (Paras 1-36).

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Issue of Consideration

Whether the trial court was justified in vacating the ad-interim order of appointment of Court Receiver and declining to appoint a Court Receiver to put the appellants back in possession of the suit premises pending disposal of the suit.

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Final Decision

Appeal allowed. Order dated 13 April 2012 set aside. Court Receiver appointed to take possession of suit premises and directed to hand over possession to appellants, subject to appellants furnishing undertaking to pay mesne profits if ultimately not entitled. Respondents directed to hand over possession to Receiver.

Law Points

  • Appointment of Court Receiver
  • Prima Facie Case
  • Balance of Convenience
  • Irreparable Loss
  • Order 40 Rule 1 CPC
  • Section 9 CPC
  • Possession
  • Dispossession
  • Interim Relief
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Case Details

2012 LawText (BOM) (10) 62

Appeal (Lodging) No.412 of 2012 in Notice of Motion No.51 of 2012 in Suit No.27 of 2012

2012-10-09

Mohit S. Shah, C.J., N.M. Jamdar, J.

Mr.P.K. Samdani, Senior Advocate with Mr. Mayur Khandeparkar, and Mr.Nivit Srivastav & Associates for the appellants. Mr.G.C.Singh for respondent Nos.1 to 4. Mr.G.S.Hegde with Mr.U.V.Singh for respondent Nos.5,8,9 and 11. Mr. Sukanta Kamarkar with Mr.R.U. Singh for respondent No.10. Mr.P.Y.Ladekar, Court Receiver present.

Khushnuma Ibrahim Khan and Raghib Ibrahim Khan

Asadullah Khan alias Sameer Khan and Others

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Nature of Litigation

Civil suit for declaration of ownership and possession, and for appointment of Court Receiver.

Remedy Sought

Appellants sought appointment of Court Receiver with direction to put them back in possession of suit premises.

Filing Reason

Alleged illegal dispossession of appellants from suit flat and office by respondents after death of husband/father.

Previous Decisions

Trial court initially appointed Court Receiver ad-interim on 14 and 16 February 2012, but vacated that order on 13 April 2012 and declined to appoint receiver.

Issues

Whether the trial court erred in vacating the ad-interim order of appointment of Court Receiver. Whether the appellants made out a prima facie case for appointment of receiver.

Submissions/Arguments

Appellants argued that they are owners and were in possession of suit premises, and were illegally dispossessed by respondents. Respondents contended that they are in lawful possession and that appellants were never in possession.

Ratio Decidendi

Where a plaintiff makes out a strong prima facie case of ownership and possession and alleges illegal dispossession, and the balance of convenience is in favor of granting interim relief by appointing a receiver to restore possession, the court should appoint a receiver under Order 40 Rule 1 CPC to protect the property pending trial.

Judgment Excerpts

This appeal is directed against the order dated 13 April 2012 of the learned trial Judge of this Court declining to grant the appellant-plaintiffs’ prayer for appointment of Court Receiver with a direction to put the appellant-plaintiffs back in possession of the suit premises and the suit office...

Procedural History

Suit No.27 of 2012 filed by appellants. Notice of Motion No.51 of 2012 taken out for appointment of Court Receiver. Ad-interim order of appointment of Court Receiver passed on 14 and 16 February 2012. After hearing, trial court vacated ad-interim order on 13 April 2012. Appellants filed Appeal (Lodging) No.412 of 2012 against that order. High Court allowed appeal on 9 October 2012.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 40 Rule 1
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