CENTRAL PROVINCES SYNDICATE PVT Vs. SITA DEVI

JUDGEMENT

(1.) THIS is an appeal under Section 202 of the Companies Act, 1913.

(2.) THE facts which give rise to this appeal, briefly stated are as follows:-In civil Suit No. 14 of 1927 in the Court of Sub-Judge, First Class, chhindwara, Amalgamated Coal-fields Company obtained a decree against M/s. Raisaheb Hiralal Verma and Munshi Kanhaiya Lal Ltd. During proceedings in execution of the decree, the decree-holder applied for appointment of a receiver in respect of Junnardev Colliery No. 2 which belonged to the judgment-debtor. This application was opposed by hasanali-Abdul Ali, creditor of the judgment-debtor company on the ground that there was an existing arrangement between him and the judgment-debtor company which would be adversely affected. Ultimately with the consent of Hasanali, one Abdul Kadar was appointed. He was removed in the year 1929 and in his place one J. D. Flynn was appointed as receiver. Subsequently in an appeal preferred by Hasanali before the court of Judicial Commissioner against an order in the execution case, hasanali was placed in possession of Junnardev Colliery No. 2 on 2-11932. He engaged the C. P. Contracting and Mining Syndicate (hereinafter referred) to as 'the Syndicate' as raising contractor for the colliery,

(3.) ALTHOUGH subsequently Hasanali was removed from the possession of the colliery under orders of the Court, the Syndicate continued as raising contractor on behalf of the Court on certain terms. On 9-1-1933 the Syndicate filed an application for being appointed as receiver. By an order dated 23-1--1933 the syndicate was appointed receiver on the condition that the receiver would not incur capital expenditure exceeding Rs. 20/-without the permission of the Court, under the terms of appointment the Syndicate was to get Rs. 1/13/- per ton as cost of raising coal, Annas 0-8-0 per ton as transportation charges and annas 0-20 per ton as their commission for general management. (Vide order dated 23-11933- Page 237 of the Paper Book, Part I ).