SHREE RAM URBAN INFRASTRUCTURE LTD. (FORMERLY KNOWN AS SHREE RAM MILLS LTD.versusTHE COURT RECEIVER, HIGH COURT OF BOMBAY

                         [2014] 7 S.C.R. 446


A
                               .
         SHREE RAM URBAN INFRASTRUCTURE LTD.
       (FORMERLY KNOWN AS SHREE RAM MILLS LTD.)
               •                   v.
      THE COURT RECEIVER, HIGH COURT OF BOMBAY
              (Civil Appeal No.5528 of 2014)
B
                             MAY 9, 2014

          [CHANDRAMAULI KR. PRASAD AND PINAKI
                  CHANDRA GHOSE, JJ.]

C        Code of Civil Procedure, 1908 - Order XL, r.1(d) -
    Administering property - Court Receiver - Rights/authority of
    - Suit filed on original side of High Court "in respect of
    immovable tenanted property - Respondent appointed as
    Court Receiver - Notice issued to appellant to pay
D   compensation and to vacate the suit premises - Appellant
    challenged right and power of respondent to determine the
    tenancy - Respondent instituted eviction suit against
    appellant before the Court of Small Causes - Whether
    respondent did not obtain leave of the court in filing the
E   eviction suit and without such leave, the eviction suit was liable
    to be dismissed - Held: Receiver is given full powers under
    Order XL Rule 1(d)- On facts, the Receiver acted in the matter
    as ought to have been done by the trustees to preserve the·
    estate - It cannot be said that the Receiver without leave of
F   the court, could not have filed a suit - When authority has
    been given to the Receiver to preserve the estate, it empowers
    the Receiver, i.e., for preserving the estate, he has a right to
    institute suit and, accordingly, in the present case, the~
    Receiver had the authority to institute a suit for preserving the
    estate - Plea that the suit was bad since the owners were the
G   trustees and were not made parties to the suit, not tenable -
     The Court Receiver holds the properties as custodia legis and
    on facts, respondent-Court Receiver acted as a reasonable
    prudent trustee for preservation of the property in question.

H                                  446
 SHREE RAM URBAN INFRAS. LTD. v. COURT RECEIVER, 44 7
            HIGH COURT OF BOMBAY
       Transfer of Property Act, 1882 - s. 106 - Termination of A
 tenancy - Notice - Suit filed on original side of High Court in
 respect of immovable tenanted property - Respondent
1
 appointed as Court Receiver - Notice issued to appellant to
 pay compensation and to vacate the suit premises - Validity
 of the notice - Effect of amendment of s.106(3) - Held: 8
 Legislature plugged the loopholes and redressed the mischief
 by making a change in the law - On facts, eviction suit was
 filed against the appellant after six months from date of the
 notice issued uls. 106 TPA, by respondent-Court Receiver and
  therefore, the notice was not invalid - Code of Civil Procedure, C
  1908 - Order XL, r.1(d).

     In a suit filed on the original side of the Bombay High
Court in respect of an immovable tenanted property, the
respondent was appointed as a Court Receiver to take
charge of the property. The respondent issued Notice              D
dated July 26, 2001 to the appellant to pay compensation
at the rate of RS.1,75,000/- per month from 1.4.2000 and
to vacate the suit premises. The appellant replied stating
that the respondent was appointed to control the suit
premises and had no right and power to determine the              E
tenancy of the appellant. Meanwhile, the appellant was
declared as a sick company under the Sick Industrial
Companies (Special Provisions) Act, 1985.

   The respondent instituted eviction suit against the            F
appellant before the Court of Small Causes, Bombay
which was decreed. The order was upheld by the
Appellate Bench of the Small Causes Court. The
appellant, therefore, filed revision petition before the High
Court under Section 115 CPC which was dismissed.
Hence the present appeal.                                         G

    The appellant challenged the High Court order on
various grounds, firstly, that the Court Receiver did not
obtain leave of the court in filing the suit and without such
                                                                  H
    448      SUPREME COURT REPORTS              [2014] 7 S.C.R.

A leave, the eviction suit was liable to be ~.ismissed;
  secondly, that the notice was issued on July 26, 2001
  asking the appellant to vacate the suit premises
  immediately, therefore, the notice was defective in view
  of the provisions of Section 106 of the Transfer of
8 Property Act, and consequently the suit was liable to be
  dismissed; and thirdly, that the suit was also bad since
  the owners were the trustees and were not made parties
  to the suit.

          Dismissing the appeal, the Court
c
       HELD:1.1. This Court cannot give a narrower
  construction with regard to the rights/authority given to
  the Receiver under Order XL Rule 1(d); CPC. In the
  present case, the Receiver was given full powers under
D the provision of Order XL Rule 1(d). The Receiver acted
  in the matter for the purpose of administering the
  property. Power must be conferred on the Receiver by
  the Court either expressly or by necessary implication,
  as the case may be. In the facts of this case, the Receiver
E acted to safeguard the interest of the trustees for
  preserving the estate. The Receiver acted in the matter
  as ought to have been done by the trustees to preserve
  the estate. [Para 14] [458-8-D, F, G]

       1.2. The Receiv~r has a right to institute a suit when
F the authority has been given to the Receiver to preserve
  the estate. Such authority is wide enough to empower the
  Receiver, as he thought necessary, for preserving the
  estate and such authority includes to institute a suit.
  [Para 15] [458-H; 459-A]
G
       1.3. It cannot be said that the Receiver without leave
  of the court, cannot file a suit in the factual matrix of this
  case. Obtaining of leave of the court before filing of the
  suit cannot be fatal and the same can be cured in law and
H is merely an irregularity. When authority has been 9.iven
 SHREE RAM URBAN INFRAS. LTD. v. COURT RECEIVER,         449
            HIGH COURT OF BOMBAY
to the Receiver to preserve the estate, it empowers the         A
Receiver, i.e., for preserving the estate, he has a right to
institute the suit and, accordingly, in the present case, the
Receiver had the authority to institute a suit for
preserving the estate. [Para 16] [459-C-E]
                                                                B
     1.4. The suit was filed after six months from the date
of the notice issued under Section 106 of the Transfer of
Property Act, by the Receiver and furthermore, after the
amendment of Section 106(3). The High Court duly
considered the question of notice and correctly came to         C
the conclusion that the Legislature wanted to plug the
loopholes and to redress the mischief by making a
change in the law. Therefore, if the notice is short of the
period specified in sub-section (1) but the suit or
proceeding is filed after the expiry of the period
mentioned in sub-section (1 ), the notice shall not be          D
deemed to be invalid. Clearly, in this matter, the notice
was issued on July 26, 2001 and the suit was actually filed
on February 6, 2002 - after six months and, therefore, the
notice cannot be declared or deemed to be invalid. [Para
16] [459-F, H; 460-A-C]                                         E

     1.5. The Court Receiver is holding the properties as
custodia legis and has acted in the matter as reasonable
prudent trustees used to do in this matter and such
action on the part of the Court Receiver is nothing but F
for preservation of the property in question. [Para 17] ·
[460-C-D]

    Kurapati Venkata Mal/ayya & Anr. vs. Thondepu
Ramaswami & Co. & Anr. AIR 1964 SC 818: 1963 Suppl.
SCR 995 and Harinagar Sugar Mills Ltd. v. M. W Pradhan,         G
1966 (3) SCR 948 - relied on.
    Everest Coal Company (P) Ltd. vs. State of Bihar & O~.
(1978) 1 SCC 12: 1978 (1) SCR 571; Anthony C. Leo vs.
Nandlal Bal Krishnan & Ors. 1996 (11) SCC 376: 1996 (7)         H
    450      SUPREME COURT REPORTS               [2014] 7 S.C.R.


A Suppl. SCR 669; Krishna Kumar Khemka vs. Grindlays Bank
  P.L. C. & Ors. 1990 (3) sec 669: 1990 (2) SCR 961;
  Balkrishna Gupta & Ors. vs. Swadeshi Polytex Ltd. & Anr.
    1985 (2) SCC 167: 1985 (2) SCR 854 - referred to.

B        C. T. Davis & Ors. vs. Drobomoyi Gupta & Ors. (1887)
    ILR 14 Cal 323; Ram Ranjan Chakravarti vs. A.B. Miller
    (1884) ILR 10 Cal 1014; Shyam Lal Gomatwa/a vs. Nand Lal
    & Ors. AIR 1944 All 220; Mt. Mahrana Kunwar vs. E. V. David,
    Official Receiver AIR 1924 All. 40; Shanta Ram Hirachand
c   Danez vs. Narayan Bapusa Fu/pagar AIR 1999 Born 16; Huri
    Dass Kundu vs. J.C. Macgregor, Receiver, High Court (1891)
    ILR 18 Cal 478; Jagat Tarini Dasi vs. Naba Gopal Chaki
    (1907) ILR 34 Cal 305; Kassim Mamooji vs. K.B. Dutt & Anr.
    AIR 1916 Cal 51 - referred to.
D                        Case Law Reference :
          (1887) ILR 14 Cal 323      referred to      Para 6
          (1884) ILR 10 Cal 1014     referred to      Para 6

E         1978 (1) SCR 571           referred to      Para 6
          1996 (7) Suppl. SCR 669    referred to      Para 6
          1990 (2) SCR 961           referred to      Para 6
          1985 (2) SCR 854           referred to      Para 6
F
          1966 (3) SCR 948           relied on        Para 6
          AIR 1944 All 220           referred to      Para 7
          AIR 1924 All. 40           referred to      Para 8
G         AIR 1999 Born 16           referred to      Para 8
          (1891) ILR 18 Cal 478      referred to      Para 11
          (1907) ILR 34 Cal 305      referred to      Para 11

H         AIR 1916 Cal 51            referred to      Para 12
 SHREE RAM URBAN INFRAS. LTD. v. COURT RECEIVER,          451
            · HIGH COURT OF BOMBAY

    1963 Suppl. SCR 995           relied on        Para 15        A
     CIVIL APPELLATE JURISDICTION: Civil Appeal No.5528
of 2014.

    From the Judgment and Order dated 16.09.2010 in CRA
No. 452/2009 of the High Court of Bombay.                         B

    Ranjit Kumar, Prateek Jalan, R.N. Karanjawala, Manik
Karanjawala (for Karanjawala & Co.), for the Appellant.

    Soli J. Sorabjee, Ayaz Billawala, Ashok Goel, Mahesh
Agarwal, Rishi Agarwala, E.C. Agrawala, Abhinal, Rohit Jolly ,    C
Arnav Kumar for the Respondent.

    The Judgment of the Court was delivered by

    PINAKI CHANDRA GHOSE, J. 1. Leave granted.                    D

    2. This appeal has been preferred against the Judgment
and order dated 16th September, 2010 passed by the High
Court of Judicature at Bombay in Civil Revision Application
No.452 of 2009, dismissing the Civil Revision Application filed
by the appellant-tenant. The brief facts, necessary for the       E
disposal of this appeal are thus: An immovable property known
as "Dev Ashish" is a tenanted property situated at Padam Tekri,
Peddar Road, Bombay (hereinafter referred to as the "suit
property"). The respondent herein was appointed by the
Bombay High Court to take charge of the suit property in Suit     F
No.234 of 1987, which was filed on the original side of the
Bombay High Court, in terms of prayer clause (a) of the Notice
of Motion which reads as follows:

     "(a) That pending the hearing and final disposal of above    G
     suit, the Court Receiver, High Court, Bombay or some
     other fit and proper person be appointed as a Receiver
     of an immovable property known as "Dev Ashish" situate
     on Sub-Plot No.1 of Plot No.C.S.S.755 at Padam Tekdi,
     Pedder Road, Bombay 400 026, with all powers under           H
    452       SUPREME COURT REPORTS                   [2014] 7 S.C.R.


A         Order XL, Rule 1 of the Code of Civil Procedure, 1908,
          including the owner to recover, receive and collect the rent,
          income and profits thereof."

       3. The respondent, being the Court Receiver in the
  aforesaid suit, issued Notice dated July 26, 2001 to the
8 appellant herein to pay compensation at the rate of
  RS.1, 75,000/- per month from 1.4.2000 and to vacate the suit
  premises. The appellant replied to the said notice of the
  respondent stating that the respondent has been appointed to
  control the suit premises and has no right and power to
C determine the tenancy of the.appellant. Meanwhile, the appellant
  was declared as a sick company under the Sick Industrial
  Companies (Special.Provisions) Act, 1985 (hereinafter referred
  to as 'the SICA').

o                                        a
        4. The respondent instituted suit against the appellant-
  defendant before the Court of Small Causes, Bombay which
  was decreed in favour of the respondent. Being aggrieved by
  the said decree, the appellant-defendant filed an appeal before
  the Appellate Bench of the Small Causes Court, being Appeal
E No.837 of 2003. This appeal was dismissed by judgment and
  order dated June 12, 2009. The appellant-defendant, therefore,
  filed a revision petition before the High Court of Bombay under
  Section 115 of the Code of Civil Procedure, being Civil
  Revision Application No.452 of 2009. The said civil revision
F application was dismissed by the Bombay High Court vide its
  judgment and order dated 16.9.2010. Aggrieved by the said
  judgment and order dated 16.9.2010, this appeal, by special
  leave, has come up before this Court.

         5. Mr. Ranjit Kumar, learned senior counsel appearing on
G behalf of the appellant, challenged the order on the grounds,
  firstly, that the Court Receiver did not obtain leave of the court
  in filing the suit and without such leave, the eviction suit is liable
  to be dismissed. Secondly, he contended that the notice was
  issued on July 26, 2001 asking the appellant to vacate the suit
H premises immediately, therefore, the notice was defective in
 SHREE RAM URBAN INFRAS. LTD. v. COURT RECEIVER,              453
 HIGH COURT OF BOMBAY [PINAKI CHANDRA GHOSE, J.]
view of the provisions of Section 106 of the Transfer ot Propert)     ,\
Act. On this ground also, he contended that the suit is liable to
be dismissed. Thirdly, he contended that the suit is also bad
since the owners are the trustees and are not made parties to
the suit.
                                                                      B
     6. In support of his contention with regard to the first point
that the suit was liable to be dismissed as it was filed by the
Court Receiver without obtaining leave of the Court, he relied
upon the decision of the courts in C. T. Davis & Ors. vs.
Drobomoyi Gupta & Ors 1• He also relied upon the decisions            C
in Ram Ranjan Chakravarti vs. A.B. Miller2, Everest Coal
Company (P) Ltd. vs. State of Bihar & Ors. 3 , Anthony C. Leo
 vs. Nandlal Bal Krishnan & Ors. 4 , Krishna Kumar Khemka vs.
 Grindlays Bank P.L.C. & Ors. 5 , Balkrishna Gupta & Ors. vs.
 Swadeshi Polytex Ltd. & Anr. 6 , and Harinagar Sugar Mills Ltd.,
 vs. M. W Pradhan 7•                                                  D

       7. Lastly, Mr. Ranjit Kumar, learned senior counsel,
:ontended that the Board for Industrial Financial Reconstruction
:hereinafter referred to as 'the BIFR') declared the appellant-
~ompany as a sick company under the SICA. Therefore,                  E
 "lithout obtaining permission from the BIFR, the suit could not
 ie proceeded with. Learned senior counsel further pointed out
 1at in the case of Ram Ranjan Chakravarti (supra}, it has been
  eld that the Receiver of the High Court does not represent the
  wner of an estate. He is an officer of the Court and as such,        F
;annot sue or be sued except with permission of the Court. In
Shyam Lal Gomatwala vs. Nand Lal & Ors. 8 , it had been
1.   (1887) ILR 14 Cal 323.
2.   (1884) ILR 10 Cal 1014.
3.   (1978) 1 sec 12 = 1958 scR 333.                                  G
4.   1996 (11) sec 376.
5.   1990 (3) sec 669.
6.   1985 (2) sec 167.
1.   1966 (3) SCR 948.
8.    AIR 1944 All 220.                                                H
    454        SUPREME COURT REPORTS                 [2014] 7 S.C.R.


A   concluded by the Court that the permission of the Court was
    necessary before institution of a suit by the Court Receiver.

          8. Mr. Ranjit Kumar, learned senior counsel, also relied
    upon the decisions in Mt. Mahrana Kunwar vs. E. V. David,
     Official Receive~ and C. T. Davis & Ors. vs. Drobomoyi Gupta
8
     & Ors. (supra) and contended that in the said decisions it has
    been held: firstly, that the action for ejectment from the suit
    property cannot be maintained by only some of the owners of
    the undivided estate; and secondly, it has been held that to
C   authorize the Court Receiver to issue Court notices determining
    the tenancy, an authority has to be obtained from the.Court.
     However, in the case of Everest Coal Co.(P) Ltd.(supra), it has
    been held that when a court puts a Receiver in possession of
    property, the property comes under the custody of the Court and
    the Receiver merely acts as an agent of the Court. The Court
D   Receiver represents neither party, being an officer of the court,
    and for this reason ordinarily the court accords the permission
    to sue and failure to secure such leave to sue till the end of /is
    may prove fatal. He also drew our attention to a decision
    reported in Shanta Ram Hirachand Danez vs. Narayan
E   Bapusa Fulpagar10• In the said decision the court held that filing
    of the suit without obtaining leave of the court is an irregularity
    and can be cured in law and is not fatal. But the suit filed by
    the Court Receiver without obtaining permission does not
    render the proceedings in the suit ultra vires if leave is obtained
F   even after filing of the suit by the Court Receiver. He tried to
    contend on the question of service of notice that Section 106
    is restricted to cases where the Court Receiver has let out the
    premises and further the Court Receiver cannot have the
    implied authority to sue a protected tenant in occupation and
G   according to him, it is necessary to have the leave from the
    court before filing the suit and it can also be overcome only i~
    the leave is obtained when the /is is pending.

    9.   AIR 1924 All. 40.
H 10. AIR 1999 Born 16.
 SHREE RAM URBAN INFRAS. LTD. v. COURT RECEIVER,                 455
 HIGH COURT OF BOMBAY [PINAKI CHANDRA GHOSE, J.)

      9. With regard to the trust property, his contention is that       A
the trust property vests in all the trustees. It is, therefore,
apparent that all the trustees have to decide whether .or not the
suit is to be filed on behalf of the trust. In the present case, it is
not disclosed anywhere that the notice of termination was
served at the behest of all the trustees. He further pointed out         B
that it is to be noted that the order appointing the Receiver as
already recorded by the court that prima facie there was a
dispute in respect of appointment of trustees on the Trust and
about dealing of the property by the Trust and iA these
circumstances, the court thought it fit to appoint a Court               c
Receiver considering the facts and circumstances of this case.

      10. Per contra, Mr. Soli Sorabjee, learned senior counsel
appearing on behalf of the respondent-Court Receiver,
submitted that the Court Receiver has a right to take all steps
in the matter since the Court Receiver has been appointed with           D
full powers to administer the property which is custodia /egis
and furthermore, he has acted in the matter in his capacity as
a Receiver. He also drew our attention to Order XL Rule 1 of
the Code of Civil Procedure, 1908, which is reproduced
hereinbelow:                                                             E

     "1. Appointment of receivers.- (1) Where it appears to the
     court to be just and convenient, the court may by order-·

     (a) appoint a receivf]r of any property, whether before or          F
     after decree;

     (b) remove any person from the possession or custody
     of. the property;

     (c) commit the same to the possession, custody or                   G
     management of the receiver; and

     (d) confer upon the receiver all such powers, as to
     bringing and defending suits and for the realization,
     management, protection, preservation and improvement
     of the property, the collection of the rents and profits            H
    456       SUPREME COURT REPORTS                   [2014] 7 S.C.R.


A         thereof, the application and disposal of such rents and
          profits, and the execution of documents as the owner
          himself has, or such of those powers as the court thinks
          fit .... "

B       11. He pointed out that Order XL Rule 1(d) has specifically
  given all such powers as to bringing and defending the suits
  and for the realization, management, protection and
  preservation of the property which the Receiver held on behalf
  of the court. According to Mr. Sorabjee, learned senior counsel,
C the Court Receiver should be able to take all steps necessary
  to preserve and protect the property as a prudent owner of the
  property would take. He also drew our attention to the order
  appointing the Receiver and contended that if a tenant is in
  arrears of rent or if the leased property after recovery of
  possession can fetch more income to the estate, the Court
D Receiver is entitled to take steps in the matter and can file a
  suit for recovery of possession. He further contended that in the
  instant case, the suit premises are outside the purview of the
  Rent Act. He also relied upon the old decisions in Huri Dass
  Kundu vs. J.C. Macgregor, Receiver, High Court11 and
E submitted that the court held that the terms of the order
  appointing the Receiver are sufficient to confer on him the
  power to bring a suit to eject a tenant. He also relied on the
  decision in Jagat Tarini Dasi vs. Naba Gopal Chaki1 2 , wherein
  it was held as follows:
F
          ''The receiver, as an officer of the Court, which has taken
          control of the property, is for the time being, and for the
          purpose of the administration of the assets, the real party
          interested in the litigation; there is no substantial reason,
          therefore, why the suit should not be instituted in his own
G
          name. We may further add that there are numerous cases
          in the books, from which it appears that a receiver, who
          has authority to sue, has been allowed to do so in his own
    11. (1891) ILR 18 Cal 478.
H   12. (1970) ILR 34 Cal 305.
SHREE RAM URBAN INFRAS. LTD. v. COURT RECEIVER, 457
HIGH COURT OF BOMBAY [PINAKI CHANDRA GHOSE, J.]

    name without any objection raised on that ground; see, for      A
    instance, Shunmugam v. Moidin [(1884) ILR 8 Mad 229],
    Gopa/a Sarni v. Sankara [(1885) ILR 8 Mad 418],
    Sundaram v. Sankara [(1886) ILR 9 Mad 334], Drobomoyi
    Gupta [318] v. C. T. Davis [(1887) ILR 14 Cal 323], Huri
    Dass Kundu v. J.C. Macgregor [(1891) ILR 18 Cal 477]            B
    and WR. Fink v. Bu/deo Dass [(1899) ILR 26 Cal 715]. It
    follows, therefore, that the view, that a Court may authorize
    a receiver to sue in his own name, and that a receiver, who
     is authorized to sue, though not expressly in his own name,
     may do so by virtue of his appointment with full powers        c
     under section 503 of the Civil Procedure Code, is
     supported by principle and authority, and is consistent with
     existing practice. We must, consequently, hold that the
     second ground taken on behalf of the appellant cannot be
     sustained."
                                                                    D
     12. A Division Bench of the Calcutta High Court in Kassim
Mamooji vs. K.B. Dutt & Anr. 13 , has held that the present Code
empowers the Court to confer upon a Receiver all such powers
as to bringing and defending suits as the owner himself has. It
would suffice to quote the following:                               E

     "Originally a Receiver could not sue; this is shown by the
     decision of Phear, J., in Wilkinson v. Gangadhar Sirkar
     [1871 6 Seng. LR 486]. That decision was in 1871. In
     1877, however, was passed the Civil Procedure Code of          F
     that year; and in it was contained the provision which now
     finds a place in 0. 40 R. 1, of the present Code (see S.
     503 of the Code 1877). The present Code empowers the
     Court to confer upon a Receiver all such powers as to
     bringing and defending suits as the owner himself has."        G
    13. In the aforesaid decisions, it has been held that the
words of Order XL Rule 1 cannot give any narrower
construction for holding that the Code does not empower the

13. AIR 1916 Cal 51.                                                H
     458      SUPREME COURT REPORTS                 [2014] 7 S.C.R.

A Receiver to bring a suit for recovery of possession of
  immovable property. In support, he has relied on all the
  aforesaid decisions.

        14. After considering and analyzing all the decisions, in our
8 opinion, we cannot give a narrower construction with regard to
  the rights/authority given to the Receiver under Order XL Rule
   1(d). We have also considered the appointment order in the
  present case. In our opinion, the Receiver was given full powers
  under the provision of Order XL Rule 1(d) as rightly shown by
C Mr. Sorabjee, learned senior counsel and, therefore; the ruling
  relied upon by Mr. Ranjit Kumar, learned senior counsel for the
  appellant, cannot be of any help to him and, accordingly, we
  reject such contention of Mr. Ranjit Kumar, learned senior
  counsel, and hold that in the facts and circumstances of this
  case, the Receiver has acted in the matter for the purpose of
D administering the property. Even we have seen that the
  Supreme Court in Harinagar Sugar Mills Co. Ltd. (supra) has
  held that a Receiver was appointed pending a suit for partition
  and the Receiver filed a winding-up· petition for realization of
  debt. It was contended that the Receiver had no power to
E institute a petition for winding-up of a company. The Supreme
  Court conceding that winding-up order is not a normal
  alternative to sue but held that it is a form of equitable execution
  covered by clause (d) of Rule 1(1) of Order XL of the Code and
  as such steps could be taken by the Receiver. It is also to be
F noted that the power must be conferred on the Receiver by the
  Court either expressly or by necessary implication, as the case
  may be. In the facts of this case, the Receiver acted to
  safeguard the interest of the trustees for preserving the estate.
  We also feel that the Receiver acted in the matter as ought to
G have been done by the trustees to preserve the estate.

         15. In Kurapati Venkata Mal/ayya & Anr. vs. Thondepu
    Ramaswami & Co. & Anr. 14 , a four-Judge Bench of this Court
    held that the Receiver has a right to institute a suit when the
H   14. AIR 1964 SC 818.
 SHREE RAM URBAN INFRAS. LTD. v. COURT RECEIVER, 459
 HIGH COURT OF BOMBAY [PINAKI CHANDRA GHOSE, J.]

authority has been given to the Receiver to preserve the estate.    A
Such authority is wide enough to empower the Receiver, as he
thought necessary, for preserving the estate and such authority,
in our opinion, includes to institute a suit. as has been held by
this Court.
                                                                   B
      16. We have considered all the points which have been
urged by Mr. Ranjit Kumar, learned senior counsel appearing
on behalf of the appellant. We are not able to accept his
contention that the Receiver without leave of the court, cannot
file a suit in the factual matrix of this case. We have also taken
into account that obtaining of leave of the court before filing of C
the suit cannot be fatal and the same can be cured in law and
is merely an irregularity. We have also considered the decision
of this Court in Kurapati Venkata Mal/ayya & Anr. (supra) and
find that when authority has been given to the Receiver to
preserve the estate, it empowers the Receiver, i.e., for D
preserving the estate, he has a right to institute the suit and,
accordingly, in the light of the said judgment, we express our
opinion and accept the reasoning given by the High Court that
the Receiver had the authority to institute a suit for preserving
the estate. Therefore, we do not accept the contention of Mr. E
Ranjit Kumar, learned senior counsel, on such question. The
second point urged by Mr. Ranjit Kumar, learned senior
counsel, is that the suit is bad with regard to Section 106 of
the Transfer of Property Act. We have duly considered the said
 question, and we find that the suit was filed after six months F
from the date of the notice issued under Section 106 of the
 Transfer of Property Act, by the Receiver and furthermore, after
the amendment of Section 106(3) which reads as follows:

     "(3) A notice under sub-section (1) shall not be deemed        G
     to be invalid merely because the period mentioned therein
     falls short of the period specified under that sub-section,
     where a suit or proceeding is filed after the expiry of the
     period mentioned in that sub-section."

     We have noticed that the High Court duly considered the        H
    460      SUPREME COURT REPORTS                 [2014] 7 S.C.R.

A question of notice and correctly came to the conclusion that the
   Legislature wanted to plug the loopholes and to redress the
   mischief by making a change in the law. Therefore, if the notice
   is short of the period specified in sub-section (1) but the suit
   or proceeding is filed after the expiry of the period mentioned
B in sub-section (1), the notice shall not be deemed to be invalid.
   Clearly, in this matter, the notice was issued on July 26, 2001
   and the suit was actually filed on February 6, 2002 - after six
 • months and, therefore, the notice cannot be declared or
   deemed to be invalid.
c       17. The third question which is tried to be urged before
  us, in our opinion, has no substance since the Court Receiver
  is holding the properties as custodia /egis and has acted in
  the matter as reasonable prudent trustees used to do in this
  matter and such action on the part of the Court Receiver is
D nothing but for preservation of the property in question,
  therefore, the contention of Mr. Ranjit Kumar on that ground also,
  cannot have any substance. [See Harinagar Sugar Mills Co.
  Ltd. (supra)].

E       18. Although the point tried to be taken by Mr. Ranjit
  Kumar, learned senior counsel, is that the appellant is a sick
  company but we do not find that such point was ever urged
  before the High Court and, furthermore, it appears that
  admittedly the tenancy was about the residential premises.
F Therefore, in our opinion, such point cannot have any substance
  at this stage.

       19. In these circumstances, we find that the reasoning
  given by the High Court does not warrant any interference by
  this Court. Accordingly, we find no merit in this appeal and the
G same is hereby dismissed. However, there shall be no order
  as to costs.

    Bibhuti Bhushan Bose                           Appeal dismissed.