OFFICIAL RECEIVER Vs. VEERANKI SAMUDRALU

JUDGEMENT

(1.) The petitioner herein, the Official Receiver Krishna, Machilipatnam, had filed an application E. A. No. 369 of 1970, in E. P. No. 696 of 1973 in O. S. No. 66 of 1963 on the file of the Sub-Court, Machilipatnam under Order 1, Rule 10, Civil Procedure Code to permit him to come on record and contest the execution proceedings. That application was dismissed and hence this revision petition by the Official Receiver.

(2.) The petitioner was appointed as an Interim Receiver in I. P. No, 28 of 1966 on the file of the Sub-Court, Vijayawada, to administer the affairs of the debtors, pending adjudication on a creditors petition. The debtors, who are respondents 3 to 5 herein, filed an application under Order 21, Rule 90. Civil Procedure Code to set aside a sale held in execution of the decree in O. S. No. 66 of 1963. That application was still pending. The Interim Receiver, who is appointed in I. P. No. 28 of 1966, wanted to come on record and contest the proceedings. The property was sold in execution of the decree in O. S. No. 66 of 1963 on 21-4-1964. The application of the Receiver was opposed by the decree-holder and the purchaser.

(3.) The short question in this revision petition is, whether the revision petitioner has any locus standi to file the application to get himself impleaded in the proceedings and contest the same. Under Section 20 of the Provincial Insolvency Act the Court is empowered to appoint an Interim Receiver when making an order admitting the insolvency petition-The Court shall ordinarily appoint an Interim Receiver of the property of the debtor or any part thereof where the debtor is the petitioner and in case where a creditor is the petitioner, may also appoint an interim Receiver. On such appointment, the Court may direct the Interim Receiver to take immediate possession of the estate of the debtor and once such a direction is given the Interim Receiver shall have such powers as can be conferred on a Receiver appointed under the Code of Civil Procedure as the Court may direct. Where the Court does not appoint an Interim Receiver at the time of admitting the application for insolvency it has nevertheless the power to make such an appointment at any subsequent time before adjudication and the provisions of the section shall apply.