KARSONDAS VIRJI THAKKAR AND ANR.

JAGANNATH SOWAR VAITY AND ORS.

DECEMBER 9, 1994

[K. RAMASWAMY AND N. VEKATACHALA, JJ.]

Code of Civil Procedure, I 908: Suit properties-Appointment of two receivers by Court in respect of same property-Permissibility of

In a suit (No. 252 of 1980) filed by the appellant-plaintiff the Court appointed a receiver for the suit properties. In another suit (No. C 983 of 1990) filed by the respondent-plaintiffs for declaration of title on three different occasions three Judges passed diffrent orders continuing the Court receiver to be receiver in the suit filed by the _appellantplaintiffs. Later, the respondents moved another motion which the Division Bench of the lligh Court directed the Court receiver to continue to be the Court receiver in the suit filed by the respondent- D plaintiffs till the disposal of Notice of Motion.

In appeal to this Court it was contended that the Division Bench was not right in directing that the Court receiver will be the receiver in suit filed by respondent-plaintiffs inasmuch as two receivers cannot be. E allowed to operate in respect of the same property.

Disposing the appeal, this Court

HELD: 1. Having regard to the facts and circumstances of the case, this Court need not disturb the impugned order, as it is of the view that respondents-plaintiffs in Suit NO. 983/90 were not made parties- F defendants in Suit No. 252/80. This court cannot direct the plaintiffs in Suit No. 252/80 to make respondents as party defendants in that suit.

However, to avoid possible conflict of action to be taken by the Receiver, at the instance of the parties, it is necessary that if he deems it necessary to take any action pursuant to the instructions issued by the plaintiffs in Suit No. 252/80 or plaintiffs in Suit No. 983/90, he should G make all of them as parties to such proceedings or of Motion and they will be heared by the Court in respect of that proceedings or Motion and the Court to pass appropriate orders after hearing both the parties so that parties would take appropriate action according to law. [455BtoC] H

SUPREME COURT REPORTS

(1994] SUPP. 6 S.C.R

A CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9473 of

1994.

From the Judgment and Order dated 24.10.94 of the Bombay High Court in A. No. 711 of 1994 in Notice of Motion No. 2138/94 in Suit No. 983of1990.

Ashok Desai, S. Fazl and P.H. Parekh for the Appellants.

P. Chidambaram, R.S. Raymond, R. Karanjawala, P.K.Mullick, Ruby Ahuja and M. Karanjawala for the Respondent/Cav.

The following Order of the Court was delivered:

Leave granted

We have heard both the parties. The tangle can be resolved by adopting the following procedure:

K.V. Thakkar and another.are the plaintiffs in Suit No. 252of1980 on the original side in the High Court. Equally, respondents 1 to 17 in this special leave petition are the plaintiffs in Suit No. 983/90 on the original side in the High Court. Initially, in Suit No. 252/80, on a motion, a Court Receiver has been appointed as a custodia legis of the properties involved in the suit. In Suit No. 983/90, filed by the respondents for declaration of title, on three different occasions, three learned Judges on the original side passed orders, the result of which was that the Court Receiver should continue in possession of the suit property as custodia legis. Later on the respondents moved another motion in which the Division Bench, on appeal, in the impugned order dated October 24, 1994, directed the Court Receiver to continue to be the Court Receiver in Suit No. 983/90 till the disposal of the Notice of motion. Calling in question, the appeal has been filed.

Shri Ashok Desai, learned senior counsel for the appellants, has contended that in view of the fact that on three different occasions, the learned Single Judges have passed different orders continuing the Court Receiver to bethe Receiver in Suit No. 252/80, the first order having been allowed to become final, the directions issued by the Division Bench in the impugned order that the Receiver to be the Receiver in Suit No. 983/90, would be contradictory in terms and two Receivers cannot be allowed to operate in respect of the same property. Therefore, the Division Bench was not right in directing that the Court Receiver will be the Receiver in Suit H . No. 983/90.

K. V. THAKKAR v. J. S. V AITY 455

Shri P. Chidambaram, learned senior counsel for the respondents, A refuted the contention. Though we find force in the contention of Sri Desai, having regard to the facts and circumstances of the case, we need not disturb the order. We are of the view that respondents-plaintiffs in Suit No. 983/90 were not made parties-defendants in Suit No. 252/80. We cannot direct the plaintiffs in Suit No. 252/80 to make respondents as party defendants in that suit. However, to avoid possible conflict of action to be B taken by the Receiver, at the instance of the parties, it is necessary that ifhe deems it necessary to take any action pursuant to the instructions issued by the plaintiffs in Suit No. 252/80 or plaintiffs in Suit No. 983/90, he should make all of them as parties to such proceedings or of the Motion and they will be heard by the Court in respect of that proceedings or Motion and the Court to pass appropriate orders after hearing both the parties so that parties C would take appropriate action according to law.

The controversy would thus be resolved for the time being pending notice of Motion No.2138/94 so that there would be no conflict of action.

The appeal is accordingly disposed of. No costs.

T.N.A.

Appeal disposed of.