BIDYUT CHAKRABORTY Vs. INDRAKESH CHAUBEY

JUDGEMENT

(1.) The petitioner complains of the perceived irregular procedure in an interim receiver being appointed under section 20 of the Provincial Insolvency Act, 1920 without any notice to the petitioning debtor.

(2.) The creditor is represented. According to the creditor, there is a substantial amount which is due and owing from the debtor and the creditor has removed himself from the State.

(3.) Section 20 of the said Act permits the court to appoint an interim receiver over the property of the debtor or any part thereof, but ordinarily this should be upon notice to the debtor. Indeed, the provision provides for an interim receiver to be mandatorily appointed upon the debtor applying for insolvency, but the word used is "may" in other cases. At any rate, it goes without saying that an exceptional case has to be made out before the court may appoint a receiver without notice to the debtor.