IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION NOTICE OF MOTION NO. 4515 OF 2007 WITH COURT RECEIVER’S REPORT NO. 125 OF 2006 WITH COURT RECEIVER’S REPORT NO. 234 OF 2006 WITH COURT RECEIVER’S REPORT NO. 395 OF 2006 IN ARBITRATION PETITION NO. 470 OF 2002 Lalitkumar V. Sanghavi. ... Petitioner. V/s. Dharamdas V. Sanghavi & ors. ... Respondents. P.R.Kadam for the applicant. Y.R.Shah for the plaintiff. Shailesh Shah with K.P.Anilkumar for defendant No.1. R.A.Thorat with Prachi Tatake and B.P.Shukla for occupant Nos.41 to 43. Simil Purohit i/b. Ashok Purohit for A. Aziz & Bros. D.V.Deokar, 1st Assistant to Court Receiver. CORAM: V.C.DAGA, J. CORAM: V.C.DAGA, J. CORAM: V.C.DAGA, J. DATED: 13th February 2008. DATED: 13th February 2008. DATED: 13th February 2008. P.C.: P.C.: P.C.: . The notice of motion is taken out by respondent No.1 with the following prayers: "(a) The Court Receiver High Court, Bombay appointed as Receiver as per order dated 31.10.2002 made by His Lordship Mr.Justice Dr.D.Y.Chandrachud in respect of properties described in Ex-A to the Petition including Flat No.312, "B" wing 3rd floor, Vallabh Bhavan, Bapubhai Vashi Road, Vile Parle (West), Mumbai- 400 056 be discharged and the Court Receiver be further directed to hand over possession of the same to the Respondent no.1. (b) The Court Receiver, High Court Mumbai be Bombay is directed to refund to the Respondent no.1 the Royalty amounts deposited by the Respondent no.1......" 2. By an order dated 31st October, 2002, the Court Receiver was appointed as Receiver of the assets of the partnership in the petition filed under section 9 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act" for short). After the order of the Court, the Arbitral Tribunal was constituted. The order appointing Receiver was confirmed in appeal as well as in Special Leave Petition. The arbitral proceedings have been terminated since the claimant took no interest in the matter. Now the respondent No.1 has taken out present notice of motion seeking discharge of the Court Receiver. 3. Pending consideration of this notice of motion, a fresh arbitration petition under section 9 of the Arbitration Act bearing Arbitration Petition (Ldg.) No.55/2008 was taken out seeking appointment of Receiver. The said petition also came to be dismissed vide order dated 7th - 3 - February, 2008 (by Dr.D.Y.Chandrachud, J.). 4. The Receiver was appointed during the pendency of the arbitration proceedings by way of interim measure. Since the substantive arbitration proceedings themselves have been terminated, the appointment of Receiver by way of interim measure must come to an end is the submission urged by the learned counsel appearing for respondent No.1. In his submission, there is no justification for continuing the appointment of the Court Receiver. 5. The aforesaid prayer and the submissions made were sought to be countered by the original petitioner contending that prayer clause (b) of the notice of motion should not be granted. Alternate submission is that if at all the Court Receiver is to be discharged, then he be directed to pay the municipal taxes and other outstanding dues from the amount of the Royalty. 6. Having heard rival contentions, the submissions made by the petitioner is devoid of any substance. The interim orders are always passed in the aid of final relief. If final relief cannot be granted, no interim relief can be - 4 - allowed. Interim relief is sometime granted to protect the suit property or cause of action. The interim order has to culminate in the final order. Since the substantive proceeding itself has been dismissed, the interim order cannot survive. Thus, the parties in this petition are liable to be put in the same position as they were at the time when Receiver was appointed. In this view of the matter, the present notice of motion taken out by respondent No.1 needs to be allowed. Accordingly, the same is made absolute in terms of prayer clauses (a) and (b). 7. As a consequence of this order, the Royalty received by the Court Receiver is concerned, he is directed to deposit the said amount in the bank account of the partnership firm in Bank of Baroda in Vile-Parle (W) Branch, Mumbai, in Saving Bank Account No.2162 within four weeks from today. It would be open for the Receiver to deduct his expenses from the amount of rent and deposit the balance amount in the aforesaid bank account. After deducting the expenses and other charges, if there is short fall, the Receiver will be at liberty to deduct the balance amount of expenses from the amount of Royalty. The Receiver stands discharged without - 5 - passing accounts. 8. Needless to mention that in view of this order, the order dated 27th April, 2007 passed by learned single Judge (Sathe, J.) would not survive. 9. Notice of motion as well as the Reports of the Court Receiver stand disposed of in terms of this order with no order as to costs. 10. All the concerned to act on authenticated copy of this order. (V.C.DAGA, J.) (V.C.DAGA, J.) (V.C.DAGA, J.)