SUPREME GENERAL FILMS EXCHANGE LIMITED SUPREME GENERAL FILMS EXCHANGE LIMITED Vs. HIS HIGHNESS MAHARAJA SIR BRIJNATH SINGHJI DEO OF MAIHAR:HER HIGHNESS TEJ SURYAWANSHIJI

JUDGEMENT

(1.) The plaintiff- respondent had filed a suit in the District Judge's Court at Jabalpur claiming a declaration that a lease executed in favour of the Defendant-Appellant, M/s. Supreme General Films Exchange Ltd., (hereinafter referred to as 'the Company'). in respect of Sunder Vilas Theatre (now known as Plaza Talkies) by its former owners. Jiwan Das Bhatia and his sons (hereinafter referred to as the Bhatias'), is void and ineffective against the plaintiff's rights under decrees obtained in Civil Suit No. 15-A of 1954 dated,7-5-1960 and in Civil Suit No. 3-B of 1952 dated. 20-4-1954 in execution of which the Theatre had been attached. The plaintiff wanted the declaration also to make it clear that an auction purchaser, purchasing the theatre in execution of either of the two decrees, gets rights free from any obligation towards the Defendant-Appellant under the void lease.

(2.) The former owners of the theatre, the Bhatias, had borrowed Rupees 2,50,000/- from the Plaintiff-Respondent, a Maharaja, against the security of bales of cotton. On 29-12-1951, they executed a registered mortgage deed in respect of the Plaza Theatre in favour of the plaintiff as the price of pledged goods was insufficient to satisfy the dues. The plaintiff, unable to recover the amount due, had brought Civil Suit No, 15-A of 1954 in which a compromise decree was passed on 7-5-1960, in terms of an agreement between the parties that amounts due will be realised by the sale of Plaza theatre.

(3.) The Central Bank of India, another creditor of Bhatias, had brought Civil Suit No. 3-B of 1952 and obtained a decree for Rs. 1,24,000/- on 29-4-1952. Rights under this decree were assigned in favour of the plaintiff-respondent. The Plaza theatre, together with other properties of Bhatias, was attached on 4-5-1955 in the course of execution of that decree.