1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY TESTAMENTARY AND INTESTATE JURISDICTION COURT RECEIVER'S REPORT NO. 246 OF 2009 IN PETITION NO. 384 of 2003 Mr. Gopal Ramourti ....Petitioner and Mrs. Jarina Kapadia ....Applicant Versus Mrs. Shabnam Merchant ....Respondents Mr. Amey A. Nabar and Mr.Amit Kanani i/b. M/s.Hariani & Co. for the Petitioner. Mr. Shailesh Shah a/w. Ms.Abha Gupta for Respondent Nos.1 & 2. Mr. Farhan Dubash i/b. Mr. Yatin R. Shah for Respondent No.4. Mr. K. L. Vyas, Court Receiver. CORAM : R. V. MORE, J. DATE : 17TH NOVEMBER, 2009. P.C. : Heard learned Counsel for the Plaintiff and Respondent Nos.1, 2 & 4 respectively, and Court Receiver. 2. In pursuance of the Order dated 24th April, 2007, the Respondent No.4 was appointed as agent of the Court Receiver in respect of suit shop nos. 15 and 17 admeasuring 235 and 375 sq. ft. for a period of 22 months commencing from 14th August, 2007 to 14th June, 2009 under an Agency Agreement executed between Respondent No.4 and the Court Receiver. Under the agreement, an option was given to the Court Receiver to renew the Agency Agreement for further period of 11 months on paying 10% increase in royalty amount. 2 3. The period of 22 months expired on 14th June, 2009. Thereafter, the Agency Agreement was not renewed but Respondent No.4 is paying 10% increase in the royalty amount to the Court Receiver. 4. Since, the Court Receiver got information that the Respondent No.4 has carried unauthorised permanent alterations in Suit Shop No.17, he visited the said shop and found that the Respondent No. 4 had carried some alterations in Shop No.17. In the above circumstances, the present report is filed seeking direction from this Court, whether the agency agreement is to be renewed as the Respondent No.4 breached the terms and conditions thereof. 5. The Respondent No.4 has filed a reply to the Court Receiver’s Report. The learned Counsel for Respondent No.4 submits that the alterations comprise of following items: (a) Removal of wall up to sill level of window above it with safety grill rested thereon. (b) Change of tile flooring. (c) False ceiling with airconditioners. (d) Furniture items and painting. It is submitted that the alterations mentioned in clauses (b), (c) and (d) above, cannot be deemed as permanent alterations. The Respondent No.4 has also tendered sincere and unconditional apology to this Court for having carried internal renovation work in the suit premises. 6. The learned Counsel for the Respondent Nos. 1 & 2 submitted that in view of the breach of terms and conditions of the Agency Agreement by Respondent No.4, possession of Shop Nos. 15 & 17 may be taken from her and Court Receiver be directed to invite fresh bids. 3 7. I find substance in the submission of Respondent No.4 that changes mentioned in clauses (b), (c) and (d) above, are not really of permanent nature. By these changes, the utility of Shop Nos. 15 and 17 has infact increased. So far as alterations mentioned in clause (a) is concerned, the Respondent No.4 has tendered unconditional apology. The learned Counsel for the Respondent No.4 on instructions of the said Respondent, makes a statement that henceforth no repairs or alterations will be made to Shop Nos. 15 and 17, without Court Receiver’s consent. Statement accepted. The period of 22 months has already expired on 14th June, 2009 and thereafter, the Respondent No.4 is paying 10% increase in royalty amount to the Court Receiver. This period of 22 months can be to extended for further period of 11 months, at the option of the Court Receiver. Out of this 11 months, approximately six months’ period has already been elapsed. Even if the agency agreement is renewed for a period of 11 months, the same will have to be renewed w.e.f. 14th June, 2009 and Respondent No.4 will at the most be in possession of the Shop Nos. 15 and 17 till 13th May, 2010. 8. Taking totality of the circumstances into consideration, I pass the following order : 1. The Court Receiver is directed to renew the agency agreement of Respondent No.4 in respect of suit shops i.e. Shop Nos. 15 and 17 for a period of 11 months w.e.f. 14th June, 2009. Needless to mention that Respondent No.4 shall give 10% increase in royalty amount for a period commencing from 14th June, 2009. 2. The Court Receiver, prior to the expiry of the renewed agency agreement, shall invite fresh bids from prospective bidders, if necessary, by giving advertisement in the newspapers for the purpose of appointing an agent in respect of the aforesaid shops. 4 3. It is expressly made clear that since Respondent No.4 has spent extensively on repairs and renovation, she has an option to match the highest bidder, in which case, she will be appointed as the agent of the Court Receiver. 4. The Respondent No.4 shall pay cost to the Court Receiver, which is quantified at Rs.1,000/-. The Court Receiver’s Report is disposed of, in the above terms. Sd/- (R. V. MORE, J.)