NANI GOPAL PAUL Vs. T PRASAD SINGH

JUDGEMENT

(1.) Leave granted.

(2.) In Suit No.2 of 1966 filed by United Bank of India against Hanuman Foundries Ltd. for foreclosure and sale of hypothecated property, pursuant to a preliminary decree, the Court receiver sold the hypothica at which appellant became highest bidder for Rs.60 lakhs and he paid a sum of Rs.5 lakhs. The sale was confirmed in his favour on August 29, 1990. Thereafter respondents Nos. 1 and 2 were sought to be impleaded to the suit but denied by the single Judge. On appeal, while impleading them, the Division Bench directed the single Judge to hear the respondents before they are ejected from the property in question by order dated 2-3-1992 which is the subject-matter of this appeal.

(3.) While disposing of the appeal, the Division Bench has pointed out that the sale was vitiated due to the manner in which the single Judge dealing with Company Law matters, passed the orders in his Chamber by observing thus: