STATE BANK OF INDIA Vs. PODAR MILLS LIMITED

JUDGEMENT

(1.) Two question arise in this Notice of Motion-firstly, whether in view of section 8(1)(c) of the Textile Undertakings (Taking Over of Management) Act, 1983, hereinafter referred to as "the Act", where a Textile Company owns more than one textile undertaking, out of which the management of one of the undertakings vests in the Central Government, while the other undertaking/ undertakings are not so vested, a Receiver can be appointed in a suit filed by a creditor, in respect of the undertaking/undertakings not so vested ? Secondly, whether in a suit for enforcement of an equitable mortgage, a Receiver cannot be appointed on the ground that the mortgagee has no right to possession of the property so mortgaged ?

(2.) Now, to the first question: Section 8(1) and (2) of the Act, which are relevant are as follows:

(3.) It is an admitted position that the 1st defendant company owns two undertakings---one in Bombay and the other at Jaipur. As regards the undertakings in Bombay is concerned, the same vests in the Central Government as provided under the Act. But the Company owns an undertaking at Jaipur too, which is not vested in the Central Government. The plaintiffs application for appointment of a Receiver relates to this undertaking at Jaipur.