KORES INDIA LTD Vs. BANK OF MAHARASHTRA

JUDGEMENT

(1.) Leave granted.

(2.) The Bank of Maharashtra filed an appeal before the Division Bench. By an interim order dated 4.4.1996, the Division Bench appointed a receiver, the Court Receiver, High Court of Bombay, for the industrial undertaking. The court also directed the receiver to appoint the appellant as his agent in respect of the property on usual terms and conditions without security. The undertaking including the machinery which was already in possession of the appellant as a lessee, was permitted to be continued in the possession of the appellant. Subsequently, the Division Bench confirmed the order appointing the receiver. It noticed the contention of the appellant that the court receiver was not entitled to claim from the appellant anything more than what the appellant was liable to pay to M/s Jyoti Chemicals. The Division Bench did not answer that contention but directed the appellant to make that submission before the receiver and observed that the receiver was bound to take all relevant materials into consideration. The order also directed that the appellant should continue to pay a sum of Rs. 20 lakhs per year to the receiver who in turn would pay over the said amount to Citi Bank. The order also directed that the receiver should separately fix and collect royalty in respect of the plant and machinery located in the State of Andhra Pradesh. By a subsequent order, the order was modified by substituting the figure of Rs. 19 lakhs per year as against Rs. 20 lakhs per year as payable by the appellant since Rs. 1 lakh out of Rs. 20 lakhs was to be adjusted out of the sum of Rs. 11 lakhs paid as security.

(3.) The receiver purported to get a valuation of the plant and machinery. The valuer suggested a valuation of Rs. 1, 15, 16, 000/- and reported that the written down value on depreciation would be Rs. 74, 44, 600/-. It was also suggested by the valuer that 15% of the written down value would be the quantum of royalty that ought to be collected.