1 CHS808.10.sxw JPP IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION CHAMBER SUMMONS NO. 808 OF 2010 AND CHAMBER SUMMONS NO. 844 OF 2010 IN SUIT NO. 1385 OF 1984 Mrs. Piloo F. Bomanjee & Ors. ... Plaintiffs. V/s. M/s. Formac Engineering Ltd. ... Defendants. And The Court Receiver, High Court, Bombay. ... Respondent. Mr. M.S. Doctor with Mr. Nikhil Pai i/b. Mahernosh Humranwala for the Plaintiffs and for the Applicant in CHS 844/10. Ms. Savita Sadananda, Prasanna Tare & Kamlesh i/b. Vigil Juris for the Defendants and for the Applicants in CHS 808/10. CORAM : R.Y. GANOO, J. DATED : 13th OCTOBER 2010. P.C. :- Rejoinder dated 27th September 2010 to Chamber Summons No. 808 of 2010 taken out by the Plaintiffs is taken on record. 2. These two Chamber Summonses were taken up for hearing today. Chamber Summons No.808 of 2010 is taken out by the Defendants whereas Chamber Summons No. 844 of 2010 is taken out by the Plaintiffs. 2 CHS808.10.sxw 3. In the present Suit, Receiver, High Court, Bombay was appointed and the Defendants are appointed as agent of the Court Receiver. By order dated 30th April 1985. Receiver had fixed the royalty at Rs.11,005/-. The Suit came to be dismissed. Thereafter, the Suit was restored. Fresh Notice of Motions were taken out and therefore, orders of appointment of Receiver were obtained. The Defendants continued to occupy the premises in their capacity as agent of the Court Receiver. As regards fixation of royalty, the Court passed an order dated 8th April 2010 in Chamber Summons No. 1866 of 2009 directing the Court Receiver to fix the royalty payable by the Defendants in their capacity as agent of the Court Receiver. Before the Court Receiver, Valuer’s report was placed and the Receiver, after hearing both the sides by order dated 7th April 2010 fixed the royalty at Rs.75,000/- per month payable with effect from February 2010 till further orders, 4. Chamber Summons No.844 of 2010 is taken up by the Plaintiffs with prayer that the royalty amount be increased from Rs.75,000/-. 5. Chamber Summons No. 808 of 2010 is taken out by the Defendants with a prayer that the royalty amount should be reduced. 6. These two Chamber Summonses were taken up for hearing. After hearing it is apparent that the Defendants have 3 CHS808.10.sxw not produced adequate material to submit as to why the amount of royalty fixed at Rs.75,000/- is excessive and or improper. Certain arguments were advanced on the basis of the report submitted by the Valuer before the Court Receiver. Certain arguments were also advanced on the question of condition of the property. According to the Defendants, the property is in a dilapidated condition and therefore, the valuation ought to have been less than Rs.75,000/-. On consideration of Chamber Summons No. 808 of 2010 and in the absence of appropriate material to justify reduction, it will not be proper for this Court to reduce the royalty from Rs. 75,000/-. At the same time, liberty is required to be given to the Defendants to place before the Court adequate material to justify reduction of the royalty. For this, the Defendants may have to engage services of a valuer of their choice and place on record appropriate material. The Defendants may also have to engage services of a broker who may be able to throw some light as to amount of compensation which can be fetched in the premises from the third party if premises are handed over to a third party for enjoyment. 7. In view of this, the Defendants are granted liberty to collect appropriate material and place it before the Court by way of a new Chamber Summons and then pray for reduction of the royalty. 8. Till such further orders are passed, the Defendants will have to pay royalty at the rate of Rs.75,000/- of course, 4 CHS808.10.sxw subject to their claim in the new Chamber Summons which they are permitted to file. 9. As of today, the Defendants were permitted to deposit a sum of Rs.25,000/- till disposal of this Chamber Summons No. 808 of 2010. Since the Defendants are granted liberty to take out fresh Chamber Summons, they will have to pay royalty at the rate of Rs. 75,000/- that is to say they will have to pay royalty for the month of November 2010 onwards at the rate of Rs.75,000/- per month till further order. They will have to clear off arrears for the period February 2010 till October 2010. Keeping in view the fact that they were permitted to deposit Rs.25,000/-, some time will have to be given to the Defendants to clear off the arrears. If the royalty is reduced from Rs.75,000/- per month to some other figure, whatever amount which will be deposited by the Defendants pursuant to this order shall be considered and appropriate calculations will be done. Chamber Summons No. 844 of 2010 is kept pending and shall be taken up by mid of December 2010, by which time it is expected that the Defendants would take out a fresh Chamber Summons in terms of this order. 10. In view of this, following order is passed to dispose of Chamber Summons No. 808 of 2010 and to adjourn Chamber Summons No. 844 of 2010 :- (i) The Defendants are permitted to withdraw Chamber Summons No.808 of 2010. They are 5 CHS808.10.sxw permitted to take out fresh Chamber Summons for praying for reduction of the royalty amount from Rs.75,000/- to any other figure as may be suggested by them. For that they are free to collect appropriate material. As and when the Defendants intend to have a visit of the valuer for the purposes of collecting necessary material, the Defendants shall give notice to the Plaintiffs’ Advocate informing him about the proposed visit of the Valuer so that the Plaintiffs or their representative may remain present at site. (ii) If the Defendants wish to get some broker to see the property, the Defendants shall give notice to the Plaintiffs’ Advocate about intended visit of the broker when such broker will be visiting the property so that the Plaintiffs or their representative may remain present at site. (iii) Till further orders, the Defendants to pay royalty at the rate of Rs.75,000/- per month. Installment for the month of November 2010 shall be deposited in the Office of the Court Receiver on or before 10th November 2010. Installment for the month of December onwards shall be deposited on or before 10th of the respective month. Arrears at the rate of Rs. 75,000/- per month for the period February 2010 to October 2010 shall be deposited in the 6 CHS808.10.sxw office of the Court Receiver on or before 30th November 2010. (iv) It is clarified that if the royalty amount is reduced from Rs.75,000/- to a lesser figure, the Defendants will get credit for whatever amount which will be deposited. (v) Pursuant to this order, the Defendants to take out new Chamber Summons on or before 14th December 2010 as Chamber Summons No.844 of 2010 is adjourned to 14th December 2010. (vi) If the Defendants do not take out a new Chamber Summons as per this order on or before 14th December 2010, it will be treated that the Defendants do not intend to take out a new Chamber Summons. (vii) There shall be no order as to costs in Chamber Summons No. 808 of 2010. 11. The Suit now stands adjourned to 25th November 2010 for marking of documents. (R.Y. GANOO, J.)