1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION CHAMBER SUMMONS NO.779 OF 2008 IN ARBITRATION PETITION NO.262 OF 2003 Mrs.Niirmala M. Khadawala ....Petitioner V/s. M/s.Vithal Bhelwala & Ors. ....Respondents Ms.Sanober B. Nanavati for the Petitioner. Ms.R.C. Nichani i/b Mr.Amit Seth for Respondent Nos.1 and 2. Mr.Divekar i/b Divekar & Co. for Respondent Nos.4 to 6. CORAM : S.J. VAZIFDAR, J. DATE : 9TH SEPTEMBER, 2009. P.C. :- 1. This is the Petitioner’s Chamber Summons challenging the order passed by the Court Receiver levying the penalty in the sum of Rs. 5,22,000/-. The Petitioner and Respondent No.3 were appointed as agents of the Court Receiver since 1.7.2003. On 9.11.2006, Respondent No.3 informed the Court Receiver that he was no longer interested in continuing as an agent. The Petitioner however continued as an agent of the Court Receiver for the reasons which are not material to the present Chamber Summons and also in the circumstances, which are not material for the present Chamber Summons. The Petitioner continued to pay the royalty upto October, 2008 as fixed by the Court Receiver. Despite the same, the Court Receiver has levied a penalty. It is difficult to understand the basis 2 on which the same was done. None of the counsel were able to indicate any provision in the agency agreement entitling the Court Receiver to do so. The order itself does not indicate the basis of levying the penalty at 10% for 28 months. Nor is there any basis on which it is stated that the Petitioner was in arrears for 28 months. 2. In the circumstances, the order of the Court Receiver in so far as it levys a penalty on the Petitioner is liable to be set aside. 3. The question as to whether the Petitioner is liable to pay the royalty from November, 2008 onwards does not arise in this Chamber Summons. It is open to the Petitioner to challenge the demand in this regard, if any, in appropriate proceedings. 4. Prayer (c) of the Chamber Summons which seeks an order directing the Court Receiver to continue to accept the royalty does not survive in view of the Petitioner having surrendered the agency. 5. In the circumstances, the Chamber Summons is made absolute in terms of prayer (a). 6. The Chamber Summons is accordingly disposed of.