L A CREET Vs. FIRM GANGARAJ-GULRAJ

JUDGEMENT

(1.) This is an appeal by defendant 1, the representatives of defendant 2 and defendant 3 against the decree of the Additional Subordinate Judge of Asansol dated 6 June 1933, by which he decreed the suit for ejectment and recovery of mesne profits in respect of a coal mine consisting of 1,124 bighas of land in the village of Sathgram. The plaintiff who instituted the suit claims by right of auction purchase all the right, title and interest of the Limited Company known as the Sathgram Coal Company Limited. Mr. A.T. Creet, defendant 3 in the suit took a lease of 2024 bighas of coal lands in the village Sathgram from the Searsole Raj for a period of 999 years on 18 September 1919. On 2 July, 1920 defendant 3 let out to the Sathgram Coal Company Limited the whole of the lands covered by his lease for 999 years. Some of the questions which are raised by this appeal are dependent on the construction of this sub-lease and on its true legal effect. The document is printed at page 1 of the second part of the paper book. The Sathgram Coal Company Limited went into liquidation and defendant 10 has been appointed Official Liquidator. On 3 July 1923 A.T. Creet (defendant 3) brought a suit for recovery of royalties for the quarters beginning with 30 September 1921, and ending with 31 March 1932 for Rs. 30,329-13-6 and the plaint in this suit has been marked as Ex. J in the case which is to be found printed at p. 118 of the second part of the paper book. On 21 June 1924 there was a final decree for sale: see Ex. J (2) printed at p. 124 of the second part of the paper book. It appears that some time before April 1923 the Sathgram Coal Company Limited transferred 900 bighas of coal land to one Keshoram Poddar and this transfer was recognized by A.T. Creet, defendant 3. On 21 August 1924 there was a second suit by the lessor Mr. Creet for royalty: see Ex. K, printed at p. 203 of the second part of the paper book. This was for the royalties of the quarter ending wi June, 1923 for a period of 1 year and 3 months. In this suit there was a preliminary decree for sale dated 13th December 1924: see Ex. K-2 printed at p. 214 of the second part of the paper book. Thus ended the second suit for royalty and the total period for which these two suits for royalties were brought is about three years.

(2.) We now proceed to state the plaintiffs title as set forth in the plaint. On 8 July 1924, the plaintiff, who is a firm, obtained a money decree against the Sathgram Coal Company Ltd. and one Arthur Jardine & Company for a sum of Rupees 45,000: see Ex. 8, printed at p. 126 of the second part of the paper book. On 25 July 1924 a precept was issued from the Original Side of this Court under Section 46 of the Code for effecting attachment of the Sathgram Colliery (p. 126, P. II). The attachment was effected on 3 August 1924: see Ex. 3(a) printed at p. 131 of the second part of the paper book. On 21 August the decree was transferred from the Original Side of this Court to the Burdwan Court: see p. 134, P. II. In execution of that transferred decree the property in question, viz. the Sathgram Colliery, was advertised for sale. On 4 July 1925 a petition was put in by defendant 3, A.T. Creet, stating that he had re- entered on the property which he had advertised for sale, as the Sathgram Coal Company had gone into liquidation. This petition is to be found printed at p. 176 of the second part of the paper book and he prayed by this petition that the fact of his having entered into khas possession of the disputed colliery on 15 October 1924, and the fact of his having let it out to Mr. L.A. Creet and Mr. J.P. Peters should be read out at the time of the sale in execution of the said transferred money decree against the plaintiff and another.

(3.) The Court granted this application and ordered that the petition be read out to the intending purchasers: see Ex. Q printed at p. 154 of the second part of the paper book. It appears that this petition was actually read over at the time of the sale: see Ex. A printed at p. 178 of the second part of the paper book. On 14 July 1925 the plaintiff purchased the right, title and interest of the judgment-debtors, Arthur Jardine & Company and the Sathgram Coal Company, Ltd., in 1124 bighas of coal land of the disputed colliery with equipment, boilers, engines, lines, headgear, coal-tubes and machinery, pumps, pipes, office room, cooli lines, bungalow, manager's quarters and all sorts of tools and implements, etc. On 14th October 1924 a resolution was passed for voluntary liquidation of the said Sathgram Coal Company, Ltd.: see Ex. P printed at p. 221 of the second part of the paper book. The resolution to which we will have to refer later is in these words: Resolved that the Sathgram Coal Company Ltd., cannot by reason of its liabilities continue its business, so the Company do wind up, and Mr. A.C. Bose, Attorney-at- law of 10 Hastings Street, Calcutta, be appointed liquidator.