STATE BANK OF INDIA Vs. CHARU PRINTING INKS

JUDGEMENT

(1.) LEAVE granted under Rules 147 and 148 of the High Court Rules (O.S.) in terms of draft notice of motion handed in. Motion returnable after four weeks. Mr. Pokale waives service for defendant Nos. 1 to 3.

(2.) THERE is no dispute that by an order of this Court, the Court Receiver has been appointed in respect of the hypothecated securities. The Court Receiver, in terms of the order passed by this Court, appointed defendant No.1 as its agent and adhoc royalty of Rs.10,000/- was fixed. There is no dispute that the defendant No.1 did not pay the royalty to the Court Receiver for almost a year and as a result thereof, in the month of October 1997, the Court Receiver has taken possession of the hypothecated securities and it has been detected that there was a shortfall in the hypothecated securities from the inventory which was prepared at the time when Court Receiver was appointed. The learned counsel for defendant No.1 was asked whether his client would deposit the arrears of royalty amounting to Rs.1,20,000/- with the Court Receiver or not, to which after seeking instructions, the learned counsel for defendant No.1 submitted that his client is not prepared to deposit the arrears of royalty. However, he submitted that if three months time is granted, his client is prepared to make up the shortfall in the hypothecated securities. The defendant No.1 seems to be chronic defaulter and despite the fact that he was appointed as the agent of the Court Receiver on the payment of royalty, he did not deposit the royalty for about one year and as a result thereof, the Court Receiver was required to take possession of the hypothecated securities in the month of October 1997. When the possession of the securities was taken by the Court Receiver, there was a shortfall in the hypothecated securities. In view of the conduct of the defendant No.1 the following ad-interim order in terms of prayers (a) and (d) shall remain operative. Prayers (a) and (d) are as follows :-