Login
  • Bookmark
  • PDF
  • Share
  • CaseIQ

Satya Pal Anand v. Punjabi Housing Co-Operative Society Ltd. And Others

Madhya Pradesh High Court
Aug 3, 2011
Important Paras
Please sign up to view Important Paras.
Smart Summary (Beta)

Structured Summary of the Opinion (U.C. Maheshwari, J.)

Factual and Procedural Background

The petitioner invoked Article 226 challenging the order dated 22-11-2008 of the M.P. State Co-operative Tribunal, Bhopal which dismissed Second Appeal No. 207/08 (treated as a revision under section 77(14) of the M.P. Co-operative Societies Act, 1960) and affirmed, with observations, the Joint Registrar's order dated 18-11-2008. The Joint Registrar had allowed a revision by respondent No. 2 (Revision No. 80-A 98/07-08) setting aside orders dated 4-2-2008, 18-2-2008 and 25-3-2008 passed by the Deputy Registrar in Miscellaneous Case No. 15/07 and remitting the matter to the Dy. Registrar to decide the petitioner's application under section 67 of the Societies Act read with Order XL, Rule 1 CPC afresh.

Substantive facts as stated in the opinion: In 1962 the Society (respondent No.1) allotted plot No. 7-B, Panjabi Bagh, Bhopal to Smt. Veerawali (mother of the petitioner) by registered sale-deed (22-2-1962; registered 30-3-1962). The Society's office-bearer later executed an "extinguished deed" (9-8-2001) and a subsequent sale-deed dated 21-4-2004 in favour of respondent No.2; respondent No.2 then sold the plot to respondent Nos. 4 and 5 by a registered deed dated 11-7-2006. The petitioner alleges the 1962 deed was not lawfully extinguished but was cancelled by fraud, and that on 6-7-2004 respondent Nos. 2, 4 and 5 trespassed and put the petitioner out of physical possession.

The petitioner filed a dispute under section 64 of the Societies Act (Case No. 81/05), which remained pending; an interim injunction dated 1-2-2006 restrained construction on the property and was approved on appeal on 29-8-2006 with a direction to conclude trial by 29-11-2006, but the dispute was still pending.

While that dispute was pending, the petitioner applied under section 67 read with Order XL, Rule 1 CPC for appointment of a receiver (application filed 4-2-2008; Misc. Case M-15/07). The Dy. Registrar initially passed ex parte orders on 4-2-2008 appointing a retired officer as receiver, and on 18-2-2008 appointed Shri N.K. Saxena to take physical possession; on 25-3-2008 a bi-parte order directed the receiver to take symbolic rather than physical possession. Revisions were filed by the petitioner and by respondent No.2. The Joint Registrar set aside the Dy. Registrar's orders and remitted the matter on 18-11-2008; the Tribunal dismissed the petitioner's second appeal (treated as a revision) on 22-11-2008. The petitioner then approached this Court by the instant petition.

Legal Issues Presented

  1. Whether the Tribunal's order (22-11-2008) and the Joint Registrar's order (18-11-2008) setting aside the Dy. Registrar's orders and remitting the matter for fresh consideration were tenable and sustainable.
  2. Whether the appointment (and subsequent modification) of a receiver by the Dy. Registrar in Misc. Case No. M-15/07 complied with section 67 of the Co‑operative Societies Act and Order XL, Rule 1 of the Civil Procedure Code and the settled legal principles for appointment of a receiver.
  3. Whether the petition challenging those orders was maintainable under Article 226 of the Constitution or whether the correct remedy lay by invoking the supervisory jurisdiction under Article 227.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner asserted a valid registered sale-deed (22-2-1962) in favour of his mother (Smt. Veerawali) which could not be extinguished by the later deed(s); the later instruments were obtained by fraud.
  • He claimed that respondents had committed criminal trespass on 6-7-2004 and put him out of physical possession, and therefore respondents did not acquire title or rightful possession.
  • He applied under section 67 read with Order XL, Rule 1 CPC for appointment of a receiver to protect his title and interests and to secure the property pending adjudication.

Respondents' Position (as stated in the opinion)

  • Respondent No.2 filed revisions before the Joint Registrar seeking to set aside the entire receiver proceedings and the interim orders dated 4-2-2008 and 18-2-2008 passed by the Dy. Registrar. The opinion does not detail their legal submissions beyond the fact of these revisions being filed and pursued.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bal Vyasi v. Mahila Ujjala, 1973 MPLJ 941 Established principles governing appointment of a receiver (recapitulated in the opinion), including: purpose of preservation of the subject-matter; discretionary nature of Order XL, Rule 1 CPC; receiver as a harsh remedy to be used cautiously; receiver not to disturb bona fide possession except in extreme circumstances; requirement of clear right and urgency. The Court reproduced and relied upon these principles to evaluate the Dy. Registrar's orders. Applying those principles, the Court concluded the Dy. Registrar did not decide the receiver-application in accordance with law and settled principles; thus the Joint Registrar and Tribunal were justified in setting aside those orders and remitting the matter for fresh adjudication.

Court's Reasoning and Analysis

The Court set out a stepwise analysis based strictly on the materials and orders before it:

  1. The Court first addressed the procedural remedy invoked by the petitioner: although the petitioner filed the petition under Article 226, the Court held that a challenge to orders of the Tribunal and subordinate courts constituted under the Societies Act is properly entertained under the supervisory jurisdiction under Article 227 (the opinion states that the petition "could be entertained under the superintendence of power of this Court enumerated under Article 227 only and not under Article 226").
  2. The Court reviewed the chronology of orders by the Dy. Registrar: ex parte appointment of a retired officer as receiver on 4-2-2008; withdrawal and replacement by Shri N.K. Saxena on 18-2-2008 with direction to take physical possession; and a later bi-parte order dated 25-3-2008 directing symbolic possession only. The Court noted these procedural facts and that the initial orders were ex parte while the later order was bi-parte.
  3. The Court observed that on the petitioner's own pleadings he was not in actual possession when he filed the receiver application (he alleged trespass and ejection on 6-7-2004) and that the substantive dispute under section 64 (Case No. 81/05) remained pending.
  4. The Court affirmed the legal proposition that a party may apply for appointment of a receiver while litigation under the Co‑operative Societies Act is pending, but emphasized that such an application must be considered in accordance with section 67 of the Societies Act, Order XL CPC and the settled propositions of law governing the appointment of receivers.
  5. Relying on the Bal Vyasi principles (reproduced in the opinion), the Court examined whether the Dy. Registrar exercised judicial discretion properly. The Court concluded that the Dy. Registrar did not consider the receiver-application in accordance with those principles and the prescribed procedure; consequently the Joint Registrar and the Tribunal legitimately intervened to set aside the Dy. Registrar's orders and remand for fresh adjudication.
  6. The Court reviewed the Tribunal's and Joint Registrar's orders and did not find any apparent error, illegality or irregularity in the reasoning or exercise of jurisdiction by those authorities; instead, it found their actions to be within their vested jurisdiction.
  7. The Court identified one aspect of the Tribunal's order (paragraph 7) as improper: the Tribunal had directed that the trial Court should ensure that the second deed executed on 6-7-2004 should have a bearing and suggested that "as long as this deed is not declared void by a Competent Court, the question of appointing a Receiver will not arise." The Court considered that observation to be improper and omitted it from the order.
  8. The Court noted that though the petitioner cited various case laws during arguments, those authorities were distinguishable on facts and circumstances and therefore did not assist the petitioner.
  9. On the totality of the foregoing, the Court concluded there was no ground to allow the petition and dismissed it.

Holding and Implications

Holding: The petition is dismissed. The Court held that the challenge ought to have been prosecuted under Article 227 and that the Joint Registrar's and Tribunal's decisions to set aside the Dy. Registrar's orders and remit the matter for fresh consideration were within their jurisdiction and not vulnerable to interference on the record before this Court. The Court also omitted an improper observation of the Tribunal (relating to the second deed and the appointment of a receiver) from the impugned order.

Implications:

  • Direct effect on the parties: The Dy. Registrar's orders appointing or modifying the receiver have been set aside by the Joint Registrar and affirmed by the Tribunal; the matter has been remitted to the Dy. Registrar to decide the petitioner's application under section 67 of the Societies Act read with Order XL CPC afresh, in accordance with law and the principles governing appointment of receivers.
  • The Court declined to permit the petition under Article 226 and indicated the proper remedy was under Article 227 (superintendence); the petition is therefore dismissed and there is no order as to costs.
  • No broader or novel legal principle was announced; the Court applied established principles (as articulated in Bal Vyasi) to the facts and procedural history. There is no indication in the opinion that a new precedent was intended to be set beyond the application of settled law.

Final line in the opinion: "Petition dismissed." The Court also recorded that there shall be no order as to costs.

Show all summary ...

U.C Maheshwari, J.:— The petitioner-applicant has directed this petition under Article 226 of the Constitution of India challenging the tenability and sustainability of order dated 22-11-2008 passed by the M.P State Co-operative Tribunal, Bhopal (in short “the Tribunal”) dismissing his Second Appeal No. 207/08 treating to be a revision under section 77 (14) of the M.P State Co-operative Societies Act, 1960 (in short “the Societies Act”) affirming with some observations the order dated 18-11-2008 passed by the Joint Registrar, Co-operative Society, allowing the Revision of respondent No. 2, Bearing No. 80-A 98/07-08, whereby setting aside the orders dated 4-2-2008, 18-2-2008 and 25-3-08 passed by Dy. Registrar, Co-operative Society in Miscellaneous Case No. 15/07 remitted back the case again to Dy. Registrar with a direction to decide the application of the petitioner filed under section 67 of the Societies Act, read with Order XL, Rule 1 of the CPC afresh.

2. The facts giving rise to this petition in short are that respondent No. 1- Society by executing a sale-deed dated 22-2-1962 through its office bearer allotted the plot bearing No. 7-B, Panjabi Bagh, Bhopal with possession to Smt. Veerawali, (since deceased) the mother of the petitioner and such sale-deed was duly registered on 30-3-1962 with the Sub Registrar, Bhopal. Subsequent to such allotment the office bearer of the respondent No. 1, contrary to the right of said Veerawali and the petitioner, unilaterally executed and got registered an extinguished deed dated 9-8-2001. On the strength of such deed the respondent No. I through its office bearer executed and registered the sale-deed with consideration dated 21-4-2004 in favour of respondent No. 2 who on her turn by executing the registered sale-deed dated 11-7-2006 with consideration sold out such plot to respondent Nos. 4 and 5. According to the case of the petitioner the sale-deed executed in favour of her mother could not be deemed to be cancelled on the strength of above mentioned extinguished deed. As the same was got executed and registered by practicing fraud with the rights and title of Veerawali and after her death, of the petitioner. On coming to know about such fraud, the petitioner filed dispute in this regard before the Court of Dy. Registrar of Co-operative Society under section 64 of the Societies Act. In pendency of the same, such Court by issuing ad interim injunction dated 1-2-2006 restrained the respondent to make any construction over the disputed property. The same was approved by the Appellate Court, vide order dated 29-8-2006. While approving such interim injunction the Appellate Court also directed to the Dy. Registrar to conclude the trial and adjudicate the same upto the period ended on 29-11-2006. In spite that such dispute bearing Case No. 81/05 is still pending for adjudication.

3. In pendency of the aforesaid dispute the petitioner filed an application under section 67 of the Societies Act, read with Order XL, Rule I of the Civil Procedure Code with the prayer of appointment of the Receiver. Contending that respondent Nos. 2 to 5 never acquired any title or the possession of the disputed property, the same was remained on the strength of the said sale-deed 22-3-1962 with Smt. Veerawali and after her with the petitioner. But on dated 6-7-2004 by committing the offence of trespass, respondent Nos. 2, 4 and 5 put out the petitioner from the physical possession of the same. Such respondent did not have any right to remain or enjoy such property. With these averments, to protect the title and interest of the petitioner regarding disputed plot he filed the aforesaid application in the Court of Dy. Registrar on dated 4-2-2008.

4. After registering the petition as Miscellaneous Case No. M-15/07 an ex parte order for appointment of the receiver for the disputed property was passed on the same day whereby Shri J.S Gujral, Retired Sr. Co-operative Inspector was appointed as Receiver who withdrew his name from such appointment on dated 18-2-2008, on which Shri N.K Saxena, Advocate was replaced as Receiver and was directed to take physical possession of the disputed plot. But subsequently by passing a bi-parte order dated 25-3-2008 instead the physical possession, the Receiver was directed to take only symbolic possession of the property, on which the petitioner filed the Revision bearing No. 78/04/08-09 before the Joint Registrar with a prayer to set aside the aforesaid order dated 25-3-2008 by maintaining the orders dated 4-2-2008 and 18-2-2008 directing the Receiver to take physical possession of the property while respondent No. 2 Manjeet Kour filed two different revisions with a prayer to set aside the entire proceedings of appointment of the Receiver and also the aforesaid interim orders dated 4-2-2008 and 18-2-2008 passed by the Dy. Registrar in such proceedings.

5. On consideration such revisions were adjudicated by the impugned order dated 18-11-2008 whereby setting aside the aforesaid orders dated 4-2-2008, 18-2-2008 and 25-3-2008, the case was remitted back to Dy. Registrar with a direction to decide the aforesaid applications afresh in accordance with law. On challenging such order by the petitioner in Second Appeal before the State Co-operative Tribunal, on consideration by treating such appeal to be a Revision under section 77(14) of the Act, was dismissed by the impugned order and by affirming the order of the Joint Registrar the case has been remanded to the Dy. Registrar with some additional directions to decide the application afresh. Hence the petitioner has come to this Court with this petition.

6. We have heard at length to the petitioner in person and the Counsel of the respondents. Having heard, after perusing the record, we are of the considered view that this petition being filed against the order of the Tribunal and its Subordinate Courts constituted under the Societies Act could be entertained under the superintendence of power of this Court enumerated under Article 227 only and not under Article 226 of the Constitution of India.

7. True, it is that initially on filing the aforesaid application for appointment of Receiver by passing an ex parte order some Retired Officer of the Co-operative Society was appointed as Receiver, vide order dated 4-2-2008 with the directions to take physical possession of the disputed property. Subsequently on considering the prayer of such Receiver permitting him to withdraw on 18-2-2008 one Shri N.K Saxena, Advocate was appointed to be a Receiver with a direction to take physical possession of the property. Both the orders were passed ex parte. After giving appearance on behalf of the respondents by passing bi parte order dated 25-3-2008 the Receiver was directed to take symbolic possession of the disputed property instead the physical possession of the same.

8. As per averments of the petition on the date of filing the application the petitioner was not in actual possession of the disputed property. According to his own case by committing the offence of criminal trespass, he was put out from the physical possession of the property by the respondents. Besides this at the instance of the petitioner dispute filed under section 64 of the Societies Act bearing No. 81/05, is still pending in the Competent Court of the Co-operative Sector. In such circumstance, we are of the considered view that while pendency of any litigation before any forum prescribed under the Co-operative Societies Act, the party has a right to approach such Court with the application for appointment of the Receiver. But such application could be considered and adjudicated by such Court keeping in view the scheme provided under section 67 of the Societies Act and under Order XL of the Civil Procedure Code and the settled propositions of law in that regard.

9. The Tribunal as well as the Joint Registrar after appreciation of the available circumstances of the case have categorically held that the aforesaid application of the petitioner was not considered by the Dy. Registrar in accordance with law and the prescribed procedure and the settled propositions of the law in this regard. After going through the aforesaid both the orders, we have not found any apparent error, illegality, irregularity or anything against the propriety of law in the same. On the contrary, same appears to be passed by the Subordinate Tribunal and the Joint Registrar under the vested jurisdiction in them.

10. In view of the aforesaid discussion, this petition could not be allowed by invoking the writ jurisdiction vested in the Court under Article 227 of the Constitution of India.

11. Apart from above long before on arising the occasion the Single Bench of this Court in the matter of Bal Vyasi v. Mahila Ujjala, reported in 1973 MPLJ Page 941, has settled the principles for appointment of the Receiver, which are still covering such field. The same are as under:—

“14. Principles relating to appointment of receiver may now be recapitulated as under:—

(1) Generally stated, the object of appointment of receiver is preservation of the subject-matter of the litigation pending a judicial determination of the rights of the parties to it.

(2) The rule embodies in Order XL, Rule 1, Civil Procedure Code empowers the Court to appoint a receiver whenever it appears to it to be just and convenient to do so. The language employed in the Rule leaves the matter to the discretion of the Court.

(3) The Court has fullest jurisdiction in the matter of appointment of receiver, but the discretion cannot be exercised arbitrarily in an unregulated manner; it must be exercised judicially, cautiously and according to legal principles on a consideration of the whole of the circumstances of the case.

(4) Appointment of receiver is recognized as one of the harshest remedies which the law provides for the enforcement of rights so that the jurisdiction must be exercised only in extreme cases.

(5) The Court does not, while considering the question whether a receiver should be appointed, arrive at any final decision on the merits of the case. Its aim is merely to preserve the status quo ante during litigation.

(6) Receiver cannot be appointed just because it is expedient or convenient to one of the parties to do so; nor merely because it will do no harm to do so.

(7) When a person is in bona fide possession of the property in dispute, his possession should not be disturbed by appointment of receiver unless there is some substantial ground for such interference, such as a well founded fear that the property in suit will be dissipated or other irreparable mischief may be done unless the Court appoints a receiver. The plaintiff must not only show a case of adverse and conflicting claims to property, he must further show some emergency or danger or loss demanding immediate action and, further the plaintiffs own right must be reasonably clear and free from doubt.

(8) Although the jurisdiction of the trial Court in the matter of appointment of a receiver is discretionary, that discretion is liable to interfere, if it is not in accordance with the principles on which the judicial discretion must be exercised.”

12. Keeping in view the aforesaid principles also, on examining the orders of the Dy. Registrar appointing the Receiver and modifying such order, (at later stage), that same is not found to be passed in accordance with such principles. So in such circumstance, the Joint Registrar of Co-operative Society or the Tribunal had no option except to set aside the order passed by the Dy. Registrar and send back the matter again to trial Court to decide the application of the petitioner afresh in accordance with prescribed procedure. Thus, in such premises also the impugned order is not found faulted.

13. However, some of the observations made by the Tribunal in Para 7 of its order on merits regarding the sale-deed dated 21-4-2004, while giving the direction to the trial Court stating that “the Court of Dy. Registrar while considering the matter should also ensure that the second deed executed on 6-7-2004 should also have a bearing in the matter and as long as this deed is not declared void by a Competent Court, the question of appointing a Receiver will not arise” do not appear to be proper and reasonable, hence the same is hereby omitted.

14. Although in the course of arguments, various case laws reported in different journals were cited by the petitioner but in the aforesaid circumstances, the same being distinguishable on facts and circumstances of the case at hand, are not helping to the petitioner.

15. In view of the aforesaid discussions, this petition being devoid of any merit is hereby dismissed with aforesaid observation. There shall be no order as to the costs.

Petition dismissed.