Full Judgment Text
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PETITIONER:
SADHURAM BANSAL
Vs.
RESPONDENT:
PULIN BEHARI SARKAR & ORS.
DATE OF JUDGMENT26/04/1984
BENCH:
FAZALALI, SYED MURTAZA
BENCH:
FAZALALI, SYED MURTAZA
VARADARAJAN, A. (J)
MUKHARJI, SABYASACHI (J)
CITATION:
1984 AIR 1471 1984 SCR (3) 582
1984 SCC (3) 410 1984 SCALE (1)997
ACT:
Code of Civil Procedure 1908, Order XL
Receiver appointed by Court-Property in custody of
receiver-Interference with possession not to be encouraged-
No party can acquire title or right over property in
possession of receiver.
Code of Criminal Procedure 1973, Section 145
Order passed in proceedings under this section-Does not
affect title of parties to disputed premises-However
reflects factum of possession.
Administration of Justice-Social Justice-Courts no
longer merely protector of legal rights-Technicalities of
law and procedure not to be insisted upon-Substantial
justice to be meted out to parties-Necessity of.
HEADNOTE:
In a suit filed in the High Court for a declaration and
relief in respect of several properties, the Official
Receiver of the High Court was appointed Receiver. On the
request of the parties, the official Receiver, decided to
sell one of the properties with the permission of the Court.
The price of the property was fixed at Rs. 3.5 lakhs. The
appellant offered a sum of Rs. 4 lakhs for purchase of the
property, and by his advocate’s letter enclosed a draft for
Rs. 1 lakh, being 1/4 of the amount. A meeting was held in
the presence of the plaintiff and their counsel, and at the
meeting the offer received from the appellant was considered
and it was decided that the offer of Rs. 4 lakh by bank
draft. The Official Receiver accepted the offer of the
appellant, communicated the acceptance and requested the
appellant to deposit the balance amount.
The Official Receiver, thereafter moved the High Court
for directions to remove respondents 1 to 4 on the ground
that they had trespassed into the property a few months
earlier. Respondents 1 to 4 moved an application for being
impleaded in the suit and contended that they were residing
with their families under a licence since 1975 and had
constructed pucca huts thereon and that with the knowledge
of this continuous possession, the parties to the suit have
filed the suit among themselves without impleading them
(respondents 1 to 4).
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583
The Single Judge rejected the aforesaid contentions of
respondents 1 to 4 and held that though they were prepared
to offer the sum of Rs. 1 lakh more than the appellant the
property could not be sold to them.
The Division Bench, however allowed their appeal,
directed respondents 1 to 4 to pay to the Official Receiver
a sum of Rs. 1.25 lakhs immediately and the balance of Rs.
3.75 lakhs thereafter and on such payment ordered sale of
the disputed property to respondents 1 to 4 and their 34
nominees on the ground that the Court should do social
justice and in doing such justice no technicality of law
would stand in its way.
Dismissing the Appeal to this Court,
^
HELD: [Per Fazal Ali & Sabyasachi Mukharji, JJ
Majority]
In administering justice-social or legal-jurisprudence
has shifted away from finespun technicalities and abstract
rules to recognition of human beings as human beings. The
Division Bench of the High Court had adopted the above
approach, and no law is breached by the view taken by it. It
is improper for this Court in exercise of the discretion
vested under Art. 136 of the Constitution to interfere with
that decision.
[595-FG; 622A-B]
[Per Fazal Ali, J.]
1. In our opinion, there appears to be some
misapprehension about what actually social justice is. There
is no ritualistic formula or any magical charm in the
concept of social justice. All that it means is that as
between two parties if a deal is made with one party without
serious detriment to the other, then the Court would lean in
favour of the weaker section of the society. Social justice
is the recognition of greater good to larger number without
deprivation of accrued legal rights of anybody. If such a
thing can be done then indeed social justice must prevail
over any technical rule. It is in response to the felt
necessities of time and situation in order to do greater
good to a larger number even though it might detract from
some technical rule in favour of a party. Living
accommodation is a human problem for vast millions in our
country.[595B-D]
2. Call it social justice or solving a socioeconomic
problem or give it any other name or nomenclature, the fact
of the matter is that this was the best course in the
circumstances that could have been adopted by the court.
3. Justice-social, economic and political-is preamble
to our Constitution. Administration of justice can no longer
be merely protector of legal rights but must whenever
possible be dispenser of social justice.
[595H-596A]
4. The Division Bench of the High Court has done
substantial justice by throwing aboard the technicalities
particularly for the reason that courts frown over a
champartous litigation or agreement even though the same may
be valid. The Division Bench by its decision got more
584
money for the owners on the one hand and one the other
sought to rehabilitate the 38 families of the respondent who
had already built permanent structures. [597G-H]
In the instant case, the Division Bench was perfectly
justified in accepting the offer of the respondents because:
(a) the respondents were prepared to pay Rs. 1 lakh more
than the appellant and the appellant did not pay the balance
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of Rs. 3 lakhs, (b) possession being 9/10th of title, the
respondents being in actual possession would have no
difficulty in becoming the owners, (c) respondents were
prepared to purchase the property notwithstanding
litigation, because if they became owners no one could
challenge their title or possession. The Single Judge
completely ignored two material aspects: (a) that a bulk of
the consideration money viz. Rs. 3 lakhs out of Rs. 4 lakhs
was not paid by the appellant, and (b) that an owner also
has right to impose certain conditions, and in exercise of
that, the condition that the purchase would have to buy the
land subject to the pending litigation was imposed [579C-F;
5 6A-D]
(Per Varadarajan, J. dissenting)
1. The Division Bench had no right or justification to
alter or modify the earlier order made for the sale of the
property which had become final, or to hold that a
subsequent offer made by respondents 1 to 4 to purchase the
property for Rs. 5 lakhs should be accepted merely because
it appears to be advantageous to the owners of the
property in the name of social justice. [612F]
2. The benefit claimed on behalf of respondents 1 to 4
which cannot called a right, for there is no corresponding
obligation-cannot be equated with or even brought anywhere
near the social justice mentioned in the preamble of the
Constitution. [612G]
3. Respondents 1 to 4 are trespassers in respect of the
property which is in custodia legis and they are in contempt
of the Court. They cannot be allowed to continue to be in
contempt and urge it as a ground for obtaining the benefit
of the sale of the property in their favour. If the
appellant has not complied with any condition it may be
ground for the owners and the Official Receiver not to
accept his offer and refuse to sell the property to him and
not for respondents 1 to 4 to raise any objection. The offer
has been accepted rightly or wrongly more than once and
there fore the appellant may have a right to sue for
specific performance of the contract on the basis of that
acceptance by the official Receiver given with the approval
of the parties. The same is the position in regard to the
delay of about a month in paying the balance of Rs.3 lakhs
by the appellant. [611D-F]
In the instant case, the property has been agreed to be
sold by private treaty and the Official Receiver has been
authorised to sell the property either by public auction or
by private treaty. The Court does not come into the picture
in such a case and there is no need for the Court to approve
585
or confirm such sale. The parties who are sui juris must be
deemed to have known their interest best when they chose to
approve the sale of the property for Rs. 4 lakhs in favour
of the appellant notwithstanding the fact that respondents 1
to 4 had offered to purchase the property for Rs.5 lakhs.
The appeal has therefore to be allowed. [612E; 613B]
Everest Coal Company (P) Ltd v. State of Bihar &
Others, [1974] 1 SCR P. 571 at P. 573, Kayjay Industries (P)
Ltd. v. Asnew Drums (P) Ltd & Others, [1974] 3 SCR P. 678,
Jibon Krishna Mukherjee v. New Bhee bhum Coal Co. Ltd. &
Apr., [1960] 2 SCR P. 198. Tarinikamal Pandit & Others v.
Prafulla Kumar Chatterjee, [1979] 3 SCR P. 340, referred to.
(Per Sabyasachi Mukherji, J)
1. The pendency of the proceedings under Section 145 of
the Code of Criminal procedure and order, if any, passed
thereon does not in any way affect the title of the parties
to the disputed premises though it reflects the factum of
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possession. [616D]
Bhinka and Others v. Charan Singh, [1959] Supp. 2
S.C.R. P.798 referred to.
2. When the property is in custody of a receiver
appointed by the court, the property is in the custody of
the court and interference with such possession should not
be encouraged and no party can acquire any title or right by
coming in or over the property which is in the possession of
the receiver or sanction of the court[618F]
Halsbury’s Laws of England, 4th Edn., Vol, 39 pages
451,452 paragraph 890,891: Kerr On Receivers-16th Edn. pages
121 referred to.
3. The concept to social justice is not foreign to
legal justice or social well-being or benefit to the
community rooted in the concept of justice in the 20th
century. The challenge of social justice is primarily a
challenge to the society at large more than to the court
immediately. Social justice is one of the aspirations of our
Constitution. But the courts, are pledged to administer
justice as by law established.[620F]
In the instant case, in formulating the concept of
justice, however, the inarticulate factor that large number
of human beings should not be dislodged from their
possession if it is otherwise possible to do so cannot but
be a factor which must and should influence the minds of
judges. It is true that the persons who were alleged to be
in possession are with unclean hands, but they came for
shelter and built in hutments. They do not want to be
rehabilitated at competitive bargain price. In the
circumstances they should not be denied rehabilitation on
the ground of their original illegitimacy.
4. The felt necessities of time and in this case the
convenience of the situation and the need for adjusting the
rights of a larger number of
586
people without deprivation of any accrued right of anybody
would be justice according to law. Before social justice as
something alien to legal justice, is rejected, it should be
remembered that a meaningful definition of the rule of law
must be based on the realities of contemporary societies and
the realities and the realities of the contemporary
societies are-men are in acute shortage of living
accommodation-and if they are prepared to bargain and
rehabilitate themselves on competitive terms, they should be
encouraged and no technical rules should stand in their way.
That would be justice by highways’ and not infiltration ’by
bye-lanes’. [621H-622B]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5887 of
1983.
Appeal by Special leave from the Judgment and Order
dated the 25.7.1983 of the Calcutta High Court in Appeal No.
271 of 1983.
S.S.Ray, S.N.Kaker, P.K.Mullick, R. Deb, N.P.Aggarwala
and B.P.Singh for the Appellant.
G.L. Sanghi, and H.K. Puri for Respondent.
Anil Dev Singh and Ashok Sil for Respondent No. 5.
The Judgment of the Court was delivered by
FAZAL ALI. J, This appeal by special leave against the
judgment of the Calcutta High Court discloses an unfortunate
litigation which proves the well-known legal maxim "delay
defeats justice" and arises out of a Will executed by the
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testator which was hotly contested by various rival
claimants resulting in an action which went on merrily and
sprightly for almost three decades as a result of which in
the back-waters of the long-drawn litigation most of the
claimants died and their successors were interested not in
the property but in the money which the property would
being, if sold.
As a result of internecine dispute between the heirs,
an Official Receiver had to be appointed to look after the
property and the final end of the drama seems to have begun
when the Receiver, on the request of the parties, decided to
sell the property with the permission of the court by a
private treaty least the litigation might draw the last drop
of the blood of the property rights of the heirs. Meanwhile,
some more events followed which made the task of the
Receiver both complex and complicated as the respondents put
up their claim to possession of the property either as
trespassers or as licensees from some of the heirs.
587
Thus, while the negotiations for the private treaty
were going on a new upshot in the guise of the respondents’
claim seems to nip in the bud the attempt of the owners to
get the property back. During the course of the three
decades, lot of changes took place in Howrah-the population
rose by leaps and bounds, a number of buildings came up and
perhaps it became next to impossible for the heirs to occupy
the premises again. To add to this, came up a new litigation
in the shape of proceedings under s. 145 of the Code of
Criminal Procedure between the parties.
The heirs having given up all hopes of getting vacant
possession became "sadder and wiser" to sell the property if
they could get a handsome amount for the same. A bargain
was, therefore, struck, with the approval of the Receiver,
by which the entire property was agreed to be sold to the
appellant for a sum of Rs. 4 lakhs, under which he paid Rs.
1 lakh and promised to pay the remaining amount of Rs. 3
lakhs at an early date. The appellant also expressed his
willingness to take the property under sale subject to the
pending litigation.
The matter, however, did not end here because the
trespassers jumped into the fray in order to stop or render
the sale nugatory. When the matter came up before the court,
it, on being satisfied that the sale was from all points of
view in the interest of the heirs, affirmed the said sale.
The appellant contended that the possessions of the premises
by the respondents did not pose any problem because they
being rank trespassers could be evicted summarily by the
Receiver under the provisions of the Civil Procedure Code.
But, we think that the matter was not so simple as that
because once possession of the premises by the respondents
had lasted for a year or more and proceedings under s. 145
of the Criminal Procedure Code had already started, the law
had to take its normal course. So far as the criminal court
it concerned, the only course which could at best be taken
was to declare possession of the party who was in possession
two months next before the initiation of the proceedings
under s.145 or of the party who was found to be in
possession of the property at the relevant time.
The relevant portion of s. 145 may be extracted below:
"145 Procedure where dispute concerning land or
water is likely to cause breach of peace.
588
(4) The Magistrate shall then, without reference
to the merits or the claims of any of the claims of any
of the parties to a right to possess the subject of the
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dispute, peruse the statements so put in, here the
parties, receive all such evidence as may be produced
by them, take such further evidence, if any, as
he thinks necessary, and, if possible, decide whether
any and which of the parties was, at the date of the
order made by him under sub-section (1), in possession
of the subject of dispute:
Provided that if it appears to the Magistrate that
any party has been forcibly and wrongfully dispossessed
within two months next before the date on which the
report of a police officer or other information was
received by the Magistrate, or after that date and
before the date of his order under sub-section (1), he
may treat the party so dispossessed as if that party
had been in possession on the date of his order under
sub-section (1).
(6) If the Magistrate decides that one of the
parties was, or should under the proviso to sub-section
(4) be treated as being, in such possession of the said
subject, he shall issue an order declaring such party
to be entitled to possession thereof until evicted
therefrom in due course of law, and forbidding all
disturbance of such possession until such eviction; and
when he proceeds under the proviso to sub-section (4),
may restore to possession the party forcibly and
wrongfully dispossessed."
With this primordial preface and institutional
introduction, we now proceed to summaries the facts of the
case, most of which have been reflected in what we have said
above.
The story of the case begins with the execution of a
Will and testament by one Jitendra Kumar Das on May 22, 1952
in favour of some of his near relations, in respect of
premises No. 7, Duffers Lane, Liluah, Howrah also some
premises in No. 211, old China Bazar Street, Calcutta. The
suit was instituted for a declaration that the aforesaid
Will was void and invalid, hence the legatees under the Will
had no right, title or interest. The suit went on dingdong
from one stage to another until 1973 when, according to the
respondents, two of the owners, viz., Smt. Malati Das and
589
Jitendra Kumar Das or at least one of them put them
(respondents) in possession of the Duffers Lane property
under a leave and licence. During the course of their
possession the respondents constructed permanent structures
and have been regularly residing there since 1975.
It is alleged that in February 1983, fire broke out in
the factory adjacent to the premises in question and fire-
brigade men entered into the premises by breaking a portion
of the wall to get access to the pond. It is the case of the
appellant that on March 14, 1983, respondent Nos. 1 to 4...
alongwith some miscreants forcibly entered into the land.
This, however, is disputed and is the root of controversy in
this case. It appears that the present appellant, who had
not yet become a purchaser, informed the. Official Receiver
that certain persons had entered into the premises in
question. On this the Official Receiver informed the
parties. On 31th May, 1983 the Official Received authorised
the appellant to take steps for protection of the property.
It is difficult to appreciate how before a concluded
contract and a conveyance in favour of the appellant, the
Official Receiver could have authorised the present
appellant to take steps for removal of respondents treating
them unilaterally as trespassers Order was obtained on May
24, 1983 from a learned Single Judge of the High Court
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directing the police to remove the unauthorised occupants On
June 22, 1983 respondent Nos. 1 to 4 made an application for
being added as parties to the said pending suit for
recalling the order for police help to eject them from the
premises in dispute.
In the said application four of the respondents, viz,
Pulin Behari Sarkar, Manick Seel, Gope Nath Sarkar and
Sudhanshu Bimal Dey, mentioned the fact that they had come
to know about the appointment of the official Receiver from
the police and they had further come to know about the offer
made by the appellant for the purchase of the premises in
dispute. The said applicants (being respondents herein)
alleged that they alongwith their families, with the leave
and licence of one of the co-owners, were residing in the
premises since 1975 and had constructed pucca huts and in
spite of the same, the appellant did not inform the Court of
the said fact before obtaining police help against them. It
is further alleged that on May 2, 1983 they had come the
know that the appellant had obtained ex parte order from the
learned Sub-Divisional Magistrate (Executive) directing the
Superintendent of Police to restore possession of the
disputed premises, comprising about six bighas of land, by
arranging police pickets.
590
Thereafter, the said applicants filed an application
before the learned Sub-Divisional Magistrate (Executive),
Howrah, under s. 145(S) of the Code of Criminal Procedure
with a prayer to recall the ex parte Order mentioned
hereinbefore and to call for a report from the local police
and others regarding possession of the said applicants in
the disputed premises. The Sub-Divisional Magistrate did not
pass any order but adjourned the said application to 7th May
1983. Though no formal order was passed, the said
application was kept on the record. After coming to know
that certain other orders might be passed, the applicants
moved a revision application under the Criminal Revisional
Jurisdiction of the High Court and thereafter obtained the
stay of the Order of 26th April 1983, passed by the learned
Sub Divisional Magistrate. This position is not disputed.
So, the Revision application under s. 145 of the Code of
Criminal Procedure is still pending before the High Court.
The learned Single Judge of the High Court did not make
a deeper probe into the history of the litigation and the
fact that if the respondents were in possession even as
trespassers and proceedings under s. 145 were pending and
had not been quashed, they could not have been summarily
ejected. The learned Judge further noted that the
respondents had offered to pay Rs. 1 lakh more for purchase
of the premises in dispute but the learned Judge was of the
view that the said offer cannot and should not be accepted.
The Division Bench, however, was of the view that the
offer made on behalf of respondents 1 to 4 should be
accepted as there was no concluded contract of sale in
favour of the appellant and hence there was no completed
sale yet. The Division Bench further noted thus:
"On the other hand, we find that 38 families have
been residing in the disputed land. It is submitted by
Mr. Bhabra that these persons are all trespassers
without any vestige of title. It is, however, the case
of the petitioners that they have been residing in the
disputed land by making certain structures under the
leave and licence of two of the owners of the said
premises although one of the owners, Smt. Malati Das,
who is alleged to have granted the licence, has denied
granting land of such licence. If the disputed land is
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sold to the respondent No. 2, then 38 families who have
been residing therein would be evicted with police
help. In
591
our opinion, the Court should do social justice and in
doing such justice any technicality of law will not
stand in its way. Social justice requires that the
disputed land should be sold to the petitioners and
others residing on the disputed land. Moreover, the
petitioners have offered to pay the price of Rs.
5,00,000, that is to say Rs. 1,00,000 more than the
offer of the respondent No. 2."
At this stage, it may be necessary to notice the terms
and conditions under which the owners agreed to sell the
properties to the appellant, which may be extracted thus:
"We further understand that a meeting held by you
it has been decided that an offer should be accompanied
by a Bank Draft on State Bank of India of an amount
equivalent to 25% of the offer.
We hereby make an offer for purchase of the above
property for Rs. 4,00,000 (Rupees four lacs) subject to
the Vendors’ making out a good and marketable little
free from encumbrances on behalf of our client Sri
Sadhuram Bansal of No. 23A, Netaji Subhas Road,
Calcutta-700 001. The sale will be completed within six
months or such further extended time as may be agreed
upon in one or more lots by one or more sale deeds in
favour of our client or his nominee or nominees.
We hereby enclose a draft of State Bank of India
for Rs. 1,00,000 drawn in your favour as desired by
you.
After hearing from you that our client’s offer had
been accepted, we shall forward to you the agreement
for sale for your approval."
This offer was made by the appellant on December 20,
1982 and at a meeting convened by the receiver the owners
while generally agreeing with the terms of the said offer,
imposed some conditions. For instance, Mr. Mitra, counsel
for some of the objectors while indicating his clients’ view
emphasised that the acceptance of the offer would be subject
to the buyers agreeing to purchase the land with pending
litigation; the exact sentence may be extracted thus:
"My clients have no objection with regard to the
592
acceptance of the said offer of M/s L.P. Agarwalla &
Co. subject to their clients agreeing to purchase the
same land with pending litigation in respect of the
said property."
Similarly, the counsel for the other owners also
accepted the offer of the purchaser. After having accepted
the offer, it was decided to circulate a draft agreement for
sale for finalising approval of the owners.
Before proceeding to another important stage in the
case, it may be mentioned that from what has been extracted
above, the offer of the appellant through their attorney (L
P. Agarwalla & Co.) was not accepted unconditionally but
with certain reservations which on a close scrutiny ran
counter to the stipulation mentioned in the offer of the
purchaser. For instance, while the purchaser insisted that
he would buy the properties subject to the vendor’s making
out a good and marketable title free from encumbrances but
this does not appear to have found favour with one of the
owners because the clients of Mr. Mitra had clearly
indicated that the offer would be accepted only if the
purchasers were prepared to buy the land with the pending
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litigation.
Thereafter, the matter having been placed before the
court, the receiver informed L.P. Agarwala & Co. that the
offer of the purchasers was accepted and the balance of Rs.
3 lakhs had to be paid at an early date. The Latter
informing L.P. Agarwala & Co. was written by the receiver on
13.1.83. In the context of the circumstances mentioned
above, the term ’at an early date’ had to be construed
literally so as to mean ’expeditiously and without any
reasonable delay’. It cannot be interpreted to give a long
rope to the purchaser to deposit the balance of the amount
whenever he liked. It would have been better if the receiver
could have fixed a particular date by which the balance
amount was to be deposited, failing which the contract would
stand cancelled. Even so, as a corollary of the
correspondence between the parties, this condition must be
read into the letter of the receiver. However, the balance
of Rs. 3 lakhs was never paid until the matter came up to
this Court. In between, the purchasers approached the
receiver to evict the trespassers summarily even though by
that time the contract had not passed into the domain of an
executed contract but was only a executory contract and
conferred no title on the purchasers. It seems to us that
the purchasers were more concerned with taking the
possession and evicting the trespassers because they knew
full well
593
that in view of the proceedings under s. 145, it would have
been difficult for them to get the possession and therefore
reserved the balance amount of Rs. 3 lakhs until they got
the possession.
They, however, rose up from their deep slumber only
when, they realised that the respondents had made an
application for being arrayed as parties to the suit by
putting forward their case that since they were in
possession of the properties and had also constructed their
own structures, they could not be evicted summarily because
the matter was sub judice.
In order, however, to cut the matter short, the
respondents themselves made a clear offer to purchase the
properties in question by paying Rs 1 lakh more than the
appellant and prayed to the court that their offer should be
accepted. In fact, there was no bar to the receiver in
accepting a higher offer because the appellant’s offer had
not yet been translated into action or become operative as
the purchaser had not yet fulfilled the two conditions,
viz., (1) not making the payment of the balance amount of
Rs. 3 lakhs, and (2) not indicating that they would buy the
properties subject to the pending litigation.
It was argued by the appellant that so far as he was
concerned, the contract was complete and could not be
superseded even if a higher offer was made to the receiver.
This argument cannot be accepted because the purchasers
having themselves committed a breach of the contract could
not insist that the contract should be enforced without
their having complied with the conditions agreed to between
the parties. Afterall, this was not a court sale where the
highest bid was made and the amount was deposited that the
sale became irrevocable.
In these circumstances the Division Bench directed that
Rs. 1.25,000 should be paid by the present respondents 1 to
4 on or before 1st August 1983, which it may be noted has
been paid, and thereafter pay the balance sum of Rs.
3,75,000 by 29th August 1983 which could not be paid because
in the meantime special leave to appeal was granted by this
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Court and a stay was obtained. The Division Bench further
directed that in case payments were made within the time,
the property in question should be conveyed to the persons
named in the said order. It was further directed that in
case respondents 1 to 4 committed default in paying the
purchase price within the stipulated time, the said order
would stand vacated
594
and the order of the Learned Single Judge would stand
confirmed, i.e., the sale would be made in favour of the
appellant.
Coming back to the facts, the respondents claimed
before the learned trial Judge for Investigation of their
right to be in possession of the disputed premises by virtue
of the leave or licence granted by one or two of the co-
owners. The investigation of that point on evidence did not
take place though there are passing observations in the
decision of the learned Single Judge that Smt. Malati Das
and Jitendra Kumar Das had no title or interest to create
any licence in their favour and that one of them further
denied having given any such licence. It has to be borne in
mind that there has been no investigation of the
respondents’ right to be in the premises; even a trespasser
cannot be thrown out of his occupation or possession except,
by due process of law. The owners appeared in these
proceedings and supported the appellant. In fact, in the
affidavit filed on behalf of the Receiver it has been made
clear that they leave the matter to this Hon’ble Court.
The appellant’s rights which have not yet crystallised
would not be hampered. Court’s dominion over the property is
still there. The official Receiver is after all an agent of
the Court as has been held by this Court in a number of
cases.
In the case of Everest Coal Company (P) Ltd. v. State
of Bihar & Ors., this Court reiterated that when a court
placed a Receiver in possession of property, the property
came under the custody of the court, the Receiver being
merely an officer or agent of the court.
In Kayjay Industries (P) Ltd. v. Asnew Drums.(P) Ltd. &
Ors. this Court reiterated the court’s obligation to
exercise discretion to make out a fair sale out of a
bargain.
In Tarinlkamal Pandit & Ors. v. Prafull Kumar
Chatterjee (dead) by Lrs this Court reiterated (at p. 353)
that the receiver was appointed under order 40 Rule 1 and a
property could be sold by the receiver on the direction of
the Court even by private negotiations.
595
If, in these circumstances the court directs that on
payment of a higher sum of money for the benefit of the
owner, and without any breach of any legal right of the
intending purchaser, the property can be conveyed to persons
in occupation with large number of families, the Court acts
properly and with social well being in mind.
Mr. S. S. Ray, appearing for the appellant, submitted
that the entire question was a legal issue and there was no
warrant for the learned Judges of the High Court to have
imported the doctrine of social justice. In our opinion,
there appears to be some misapprehension about what actually
social justice is. There is no ritualistic formula or any
magical charm in the concept of social justice. All that it
means is that as between two parties if a deal is made with
one party without serious detriment to the other, then the
Court would lean in favour of the weaker section of the
society, Social justice is the recognition of greater good
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to larger number without deprivation of accrued legal rights
of anybody. If such a thing can be done then indeed social
justice must prevail over any technical rule. It is in
response to the felt necessities of time and situation in
order to do greater good to a larger number even though it
might detract from some technical rule in favour of a party.
Living accommodation is a human problem for vast millions in
our country. The owners, in this case, are getting legally
Rs. 1 lakh more.
We must remember that in administering justice-social
or legal jurisprudence has shifted away from finespun
technicalities and abstract rules to recognition of human
being as human beings and as human needs and if these can be
fulfilled without deprivation of existing legal rights of
any party concerned, courts must lean towards that and if
the Division Bench of the High Court, in the facts and
circumstances of the case, has leaned towards that, it is
improper for this Court in exercise of the discretion vested
under Art. 136 of the Constitution to interfere with that
decision. We would do well to remember that justice-social,
economic and political-is preamble to our Constitution.
Administration of justice can no longer be merely protector
of legal rights but must whenever possible be dispenser of
social justice.
Call it social justice or solving a socio-economic
problem or give it any other name or nomenclature, the fact
of the matter is that this was the best course in the
circumstances that could have
596
been adopted by the court. Unfortunately, the Single Judge
completely ignored the following important facts which have
been indicated by me earlier:-
(1) that a bulk of the consideration money, viz., Rs. 3
Lakhs out of Rs. 4 Lakhs, was not paid by the appellant
even until the time when the learned Single Judge had
passed the order nor was it paid even when the matter
was in the High Court, and
(2) the learned Single Judge overlooked the fact that
an owner also has a right to impose certain conditions
and in exercise of that he had imposed the condition
that the purchaser would have to buy the land subject
to the pending litigation whereas in the offer made by
the purchaser he had placed the onus on the owners to
give him a good marketable title free from litigation.
Thus, there was a clear-cut contradiction on this point
which does not appear to have been noticed by the Single
Judge and perhaps not even by the owners because they were
concerned more in getting the money as early as possible.
The Division Bench, therefore, accepted the offer of the
respondents and passed the following order:
"In the circumstances, we vacate the said two
orders of the learned Judge dated May 24, 1983 and May
26, 1983 and set aside the impugned order dated July
18, 1983 and direct as follows;
1. The petitioners shall pay sum of Rs. 1,
25,000/-to the official Receiver on or before August 1,
1983 and thereafter pay the balance sum of Rs. 3,75000
by August 29, 1983 to the official Receiver.
2. If the aforesaid sums are paid within the dates
mentioned above, the official Receiver shall sell the
land of the disputed premises No. 7, Duffers Lane,
Lilluah, Howrah to the petitioners and to their
following nominees who have been residing in the said
premises.."
At page 90 in ’The Dictionary of Essential Quotations’
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com-
597
piled by Kevin Goldstein-Jackson, John Stuart Mill aptly
observes thus:
"...the sole end for which mankind are warranted,
individually or collectively, in interfering with the
liberty of action of any of their number, is self-
protection. That the only purpose for which power can
be rightfully exercised over any member of a civilised
community, against his will, is to prevent harm to
others. His own good, either physical or moral, is not
a sufficient warrant."
Striking, therefore, a just balance between the claims
put forward by the appellant and the respondents, we are
convinced that the Division Bench of the High Court was
perfectly justified in accepting the offer of the
respondents for the following reasons:
(1) that the respondents were prepared to pay much
higher amount than the appellant (i.e. Rs. 1 Lakh more)
even at the very behest; the appellant did not pay the
balance of Rs. 3 lakhs, which was a substantial part of
the consideration, at the earliest moment as stipulated
in the agreement but deposited the amount only when the
case came up before this Court,
(2) that possession being 9/10th of title and the
respondents being in actual possession of the property
would have had no difficulty at all in becoming the
owners without any further litigation.
(3) that the respondents were prepared to purchase the
property notwithstanding the litigation obviously
because if they had become the owners, no one could
have challenged their title or possession.
In such a situation, therefore, in our opinion, the
Division Bench of the High Court has done substantial
justice throwing aboard the technicalities particularly for
the reason that courts frown over a champartus litigation or
agreement even though the same may be valid. Thus, by its
decision the Division Bench got more money for the owners on
the one hand and on the other sought to rehabilitate the 38
families of the respondent who had already built permanent
structures.
598
For the reasons given above, we find ourselves in
complete agreement with the judgment of the Division Bench
of the High Court which we hereby affirm with the
observations that since the dates mentioned in the Division
Bench’s order have already passed, we modify the said order
to this extent that as the respondents have already paid a
sum of Rs. 1.25 lakh to the official Re eiver they shall pay
him the balance of Rs. 3.75 lakhs by August 15, 1984 and
shall also insert a condition that they would be being the
properties notwithstanding the pending litigation, failing
which the appeal shall stand allowed and the order of the
Single Judge stand restored. In the circumstances of the
case, we make no order as to costs.
VARADARAJAN, J. This appeal by special leave is
directed against the order of a Division Bench of the
Calcutta High Court dated 25.7.1983 made in an application
of respondents 1 to 4 for the issue of an interim order
pending consideration of the appeal filed against the order
of a learned Single Judge of that High Court dated 18.7.1983
dismissing their application for being impleaded as
defendants in Suit No. 2024 of 1952 on the file of that High
Court as also in the application of the official Receiver,
Calcutta High Court affirmed by one Ashok Kumar Rai on 20
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5.1983 and for staying and setting aside that Court’s
earlier orders dated 24.5.1983 and 26.5.1983.
Suit No. 2024 of 1952 was filed in the Calcutta High
Court on 28 5 1952 by one Prasad Nath Das, husband of Malati
Das and father of the then minors Prabir, Kumar Das and
Pradeep Kumar Das, for declaration and other reliefs in
respect of certain properties including No. 7, Duffer’s
Lane, Howrah, hereinafter referred to as the ’disputed
property’ against certain persons including one Jitendra
Kumar Das who is the second defendant in that Suit. The
official Receiver of the High Court was appointed as
Receiver in that suit on 11.8.1953 in respect of certain
properties including the disputed property and he took
possession of the disputed property on 13 8.1953. An
application was made in August 1982 for sale of the disputed
property and distribution of the sale proceeds amongst the
parties entitled thereto. On 11.10.1982 C. K. Banerjee, J,
passed an order in that application for sale of the disputed
property in these terms:
"In that view of the matter there will be an order
for sale in terms of prayer (a). In the event the
properties are
599
sold by private treaty the official Receiver will call
a meeting of the parties and obtain their approval to
such sale by private treaty. The provisional allottees
or any other party to the suit would be entitled to
bring intending purchasers for the said property. There
will also be an order in terms of prayer(b). In the
event the properties are sold the petitioner Ajit Kumar
Das would be paid a sum of Rs. 10000 out of the sale
proceeds subject to adjustment against his share in the
estate. The rest of the sale proceeds would be invested
by the official Receiver in short term fixed deposit in
a nationalised bank for a period not exceeding one year
and to be renewed from year to year until further
orders of Court."
It has to be stated that the learned Single Judge fixed
an upset price of Rs 3,50,000 for the disputed property in
that order and there is no dispute about it. The appellant
Sadhu Ram Bansal offered a sum of Rs. 4,00,000 for the
property to the Receiver by his advocate’s letter dated
20.12.1982 enclosing a draft for Rs. 1,00,000 being one
fourth of the amount and saying that the offer is subject to
the vendors making out a good and marketable title free from
encumbrances and that the sale will be completed within 6
months or such other time as may be agreed upon in favour of
the appellant or his nominees. Thereinafter, a meeting was
held before the official Receiver on 12.1.1983 in presence
of Prabir Kumar Das and Pradeep Kumar Das and their Counsel
as also Jitendra Kumar Das and others. That meeting was
convened in terms of a motion of a meeting dated 23.12.1982
for deciding upon the steps to be taken regarding the
intending offers for the sale of the disputed property. In
that meeting all the three offers received by the Official
Receiver were placed before the parties for their
consideration and it was decided that the offer of Rs.
4,00,000 made on behalf of the appellant should be accepted
in view of the payment of Rs. 1,00,000 by bank draft. The
official Receiver thereupon accepted the offer of the
appellant and communicated the acceptance by his letter
dated 13.1.1983 and requested the appellant to deposit the
balance of Rs. 3,00,000 at an early date, In view of Court’s
order dated 1.8.1983 another meeting was convened before the
official Receiver on 9.8.1983 and the parties to suit agreed
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in that meeting to sell the disputed property to the
appellant for Rs 4,00,000 in view of his prior payment of
Rs. 1,00,000 by bank draft and sending the balance of Rs.
3,00,000 to the official Receiver on 8.8.1983 Subsequently
on the application of the official
600
Receiver, P. Banerjee, J. of the Calcutta High Court passed
an order dated 24 5.1983 directing the police to remove
respondents 1 to 4 from the disputed property and put the
official Receiver in possession thereof on the allegation of
the official Receiver that they had trespassed into the
property a few months earlier. That order was modified on
26.5.1983 as regards the designation of the Deputy Inspector
General of Police to whom also the earlier letter dated
24.5.1983 was directed. On 22.6.1983 respondents 1 to 4
namely, Pulin Behari Sarkar, Manik Seal, Gopinath Sarkar and
Sudhansu Bimal Dey moved the Calcutta High Court for being
impleaded as defendants in Suit No. 2024 of 1952 (wrongly
mentioned in that application as Suit No. 2024 of 1982) as
well as in the application of the official Receiver affirmed
by one Ashok Kumar Rai on 20.5.1983 and for staying and
setting aside the said orders dated 24.5.1983 and 26.5 1983
as stated above. In that application respondents 1 to 4
alleged that they came to know from the police about the
orders dated 24.5.1983 and 26.5.1983 on 18.6.1983, that Suit
No. 2024 of 1982 (mistake for Suit No. 2024 of 1952) had
been filed by Prasad Nath Das on 28.5.1982 (mistake for
28.5.1952), that the official Receiver had been appointed on
11.8.1982 (mistake for 11.8.1952), that the Court has
granted leave to the official Receiver to sell the property
either by public auction or by private treaty subject to a
reserve price of Rs 3,50,000 and that the offer of Rs.
4,00,000 made by the appellant has been accepted and one-
fourth of the amount has already been paid to the official
Receiver Respondents 1 to 4 further, stated in that
application that they are residing on the disputed property
with their families under a licence since 1975 and have
constructed pucca huts thereon and that with knowledge of
their continuous possession of the property as licencees
since 1975 the parties to the suit have filed the suit among
themselves without impleading them (respondents 1 to 4) as
parties knowing fully well that they would not get
possession of the same if they filed the suit against them.
This application of respondents 1 to 4 was opposed by
the appellant through a counter-affidavit of his son Sajan
Kumar Bansal. It was stated in that counter-affidavit inter
alia that in the application filed for grant of leave to the
official Receiver to sell the disputed property it was
alleged that it was under the unauthorised and illegal
occupation of one Kamal Hosiery claiming to be tenant of the
property on a rent of Rs. 100/-per month for a long time and
that no rent has been paid to or collected by the official
Receiver in the last 20 years. It was also stated in that
counter-affidavit that in
601
the draft agreement for sale it is stated there is
litigation for the last 20 years between the official
Receiver on the one hand and Kamal Hosiery on the other and
that Second Appeal No 1267 of 1982 filed by Kamal Hosiery
against the official Receiver was pending in the Calcutta
High Court. Denying that there was any such licence as
claimed by respondents 1 to 4 it was stated in that counter-
affidavit that in the proceedings taken by respondents 1 to
4 under s. 145 of the Code of Criminal Procedure in the
Court of the Sub-Divisional Executive Magistrate, Sadar,
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Howrah respondents 1 to 4 claimed to have been in possession
of the disputed property for the last 15 years which will
take us to 1968 and not 1975 It is that application of
respondents 1 to 4 for being impleaded as parties to Suit
No. 2024 of 1952 and for staying and setting aside the High
Court’s orders dated 24.5.1983 which came up before Monjula
Bose, J Three points were urged before that learned Judge.
The first point urged before the learned Judge was the
alleged deliberate omission of the parries to Suit No. 2024
of 1952 to implead respondents 1 to 4 as parties with the
object of getting a receiver appointed and having the
property sold behind their back. The learned Judge rejected
that contention of respondents 1 to 4 in these terms:
"I accept the contentions of the learned Advocate
for the purchaser Sadhu Ram Bansal as also the
contentions of the Learned Advocate for the learned
official Receiver that deliberate mis-statements have
been made in the petition with a view to impress upon
the Court that the suit was filed without impleading
the petitioners (respondents 1 to 4) as parties so that
possession could be obtained and an order of
appointment of Receiver and leave to sell the property
could be obtained behind the back of the petitioners
(respondents 1 to 4). It is significant that the
proceedings were instituted in 1952 (Suit No. 2024 of
1952) and the official Receiver was appointed as
Receiver as far back as in 1953. Since that date the
suit property is in the possession of the official
Receiver as officer of the Court. The petitioners
(respondents 1 to 4) claim to be in possession since
1975 with the leave of one Malati Das and Jitendra
Kumar Das. It is significant that the said Malati Das
was brought on record only in the year 1977 after the
death of her husband and in any event no leave or
licence could have been granted by either Malati Das or
Jitendra Kumar Das when the
602
Official Receiver was in possession of the suit
premises. On 21.6.1983 Malati Das appeared in Court and
denied giving any leave to any of the parties to remain
in possession of the suit premises. Falsity of the
petitioners’ case is thus prima facie apparent and it
appears that they have no locus standi to intervene in
this proceeding and seek any order to be added as
party-defendants to the suit and/or any other
proceeding in connection therewith."
The second point urged before the learned Single Judge
was as regards the validity of the orders dated 24.5.1983
and 26.5.1983 made for delivery of possession of the
property to the official Receiver with police aid and
without notice to respondents 1 to 4. It was contended
before the learned Single Judge on behalf of respondents 1
to 4 that those orders made behind the back of respondents 1
to 4 who would be affected thereby are invalid in law and
should, therefore, be set aside The learned Judge rejected
that contention in these terms:
"In any event the decision reported in A.I.R. 1957
Calcutta 252 is an authority for the proposition that
the Court has unfettered discretion and ample power to
do justice The Court is also fortified in its view by
the decision in Hira Lal Patni v. Mookaram Sethiya,
reported in A.I.R. 1962 SC 21 where the Court viewed
that under order 40 Rule 1 the Court may remove any
person who interferes or intermeddles with the
Raceiver’s possession. In my view different
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considerations apply in cases where property in the
possession of Court through its officers are sought to
be the Receiver of the Court is sought to be interfered
with, and the cases cited are distinguishable. To my
mind the orders passed on the 24th and 26th May, 1983
are orders passed by the Court in the course of the
administration of the estate through the agency of the
Receiver and the said orders were passed at the
instances of the Receiver in the circumstances stated
in the affidavit affirmed by Ashoke Roy on 4th July,
1953 It is apparent from paragraph 5 (vii) that certain
persons had entered the premises on the 14th March,
1983, requiring the official Receiver to take steps
with the police authorities and it appears that his
letters went unheeded requiring an application to be
made for seeking direction upon the police authorities
to remove the squatters and thereby assistance sought
in the administration
603
of the estate by the Receiver. The case reported in
A.I.R. 1962 SC 21 Hira Lal Patni v. Mookaram Sethiya is
an authority in support of this proposition. The order
for police help thus obtained cannot be said to have
been obtained improperly or by suppression of any
fact."
The third point urged by respondent 1 to 4 before the
learned Single Judge was that they were prepared to offer a
sum of Rs. 1,00,000 more than the amount offered by the
appellant and that the property should be ordered to be sold
to them. The learned Single Judge rejected that contention
in these terms:
"The third point ... has no merit and is not
required to be considered inasmuch as the Court by its
order dated 11th October, 1982 directed that the
official Receiver will sell the property by public
auction or private treaty to the highest offerer or
offers subject to a reserve price of Rs. 3,50,000 and
had directed that in the event the property is sold by
private treaty the official Receiver would call a
meeting of the parties and obtain approval for such
sale. It appears from the records of the minutes of the
Receiver’s meeting held on 12.1.1983 that in the
presence of parties each one of them supported the sale
to M/s L. P. Aggarwal’s client, namely, Sadhu Ram
Bansal and as such the official Receiver accepted the
offer of the said Sadhu Ram Bansal, after the parties
considered the price offered to be adequate. The case
reported in A.I.R. 1970 SC 2037 is an authority in
support of the proposition that once a Court comes to a
conclusion that the price offered is adequate no
subsequent higher offer can constitute a valid ground
for refusing confirmation. To my mind although the
transaction in suit does not require to be confirmed as
the official Receiver was invested with the direction
given on 11th October, 1982 the said decision with the
approval of the parties cannot now be re-opened and/or
reagitated."
For the above reasons the learned Single Judge
dismissed the petition of respondents 1 to 4 with costs.
Against that order respondents 1 to 4 filed an appeal before
the Division Bench. In that appeal respondents 1 to 4 made
an application for an interim order, and it came up for
consideration before the Division Bench consisting M. M.
Dutt and C. K Banerjee, JJ. After setting out some facts
leading to the application filled by respondents 1 to 4 for
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being
604
added as parties to Suit No. 2024 of 1952 as well as in the
application of the official Receiver and for staying and
setting aside the High Court’s orders dated 24.5.1983 and
26.5.1983 referred to above, what M. M. Dutt, J. who spoke
for the Bench has stated in the order impugned in this
appeal is this:
"At the hearing of this application Mr. Som Nath
Chatterjee, learned Counsel appearing on behalf of the
petitioners has offered to purchase the disputed land
at a sum of Rs. 5,00,000. It has also been offered by
him that the petitioners would deposit in Court a sum
of Rs. 1,25,000 being the 25 per cent of the sale price
within a week and pay the balance sum of Rs. 3,75,000
within a month thereafter.
The application has been vehemently opposed by the
respondent No. 2. the purchaser. Mr. A. C. Bhabra,
learned Counsel appearing for respondent No 2 submits
that as parties themselves have agreed to sell the
disputed land to the respondent No 2 this Court has no
jurisdiction to override the said agreement and direct
the sale of the disputed land to the petitioners. In
our opinion this contention is without substance The
sale has not yet been completed. As stated already
respondent No. 2 paid a sum of Rs. 1,00,000 being 25
per cent of the sale price some time in January 1983
and since then respondent No. 2 has not paid the
balance sum of the sale price. If the sale had been
completed their is no question of any offer being made
by the petitioners for the sale of the disputed land to
them. Moreover, the sale will be subject to the
approval of the Court. As the sale has not yet been
completed there is no scope for the approval of the
sale.
On the other hand, we find that 38 families have
been residing in the disputed land. It is submitted by
Mr. Bhabra that those persons are all trespassers
without any vestige of title. It is, however, the case
of the petitioners that they have been residing in the
disputed land by making certain structures under. the
leave and licence of two of the owners of the said
premises although one of the owners, Smt. Malati Das
who is alleged to have granted the licence, has denied
granting of such licence. If the disputed land is sold
to respondent No. 2 then 38 families who have been
resi-
605
ding thereon would be evicted with police help. In our
opinion the Court should do social justice and in doing
such justice no technicality of law will stand in its
way. Social justice requires that the disputed land
should be sold to the petitioners and other residing on
the disputed land. Moreover, the petitioners have
offered to pay a price of Rs. 5,00,000 that is to say
Rs 1,00,000 more than the offer of the respondent No 2.
In the circumstances, we vacate the said two orders of
the learned Judge dated 24.5.1983 and 26.5.1983 and set
aside the impugned order dated July 18, 1983."
The learned Judges directed respondents 1 to 4 to pay
to the official Receiver a sum of Rs. 1,25,000 on or before
1.8.1984 and the balance of Rs 3,75,000 by 29.8.1983 and
ordered that on such payment the official Receiver shall
sell the disputed property to respondents 1 to 4 and their
34 nominees mentioned in the impugned order without any
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other descriptive particulars and have observed that in the
event of default in payment of the sum of Rs. 5,00,000 as
aforesaid their order will stand vacated and the learned
Single Judge’s order dated 18.7.1983 shall stand confirmed.
Thus it is seen that the learned Judges of the Division
Bench have set aside the impugned order of the learned
Single Judge dated 18.7.1983 and directed the sale of the
disputed property to respondents 1 to 4 and their 34
nominees subject to the condition that respondents 1 to 4
deposit a sum of Rs. 1,25,000 by 1.8.1983 and the balance of
Rs 3,75,000 by 29.8.1983 towards the sale price of Rs.
5,00,000 offered by respondents 1 to 4 mainly on the ground
of social justice and incidentally having regard to the fact
that sale has not yet been approved by the Court without
however deciding the question whether approval of the Court
to complete the sale of the disputed property by the
official Receiver to the appellant by private treaty subject
to the approval of the parties which has been given on
12.1.1983 and 9.8.1983, as stated above, is necessary or
not. They have at the same time observed in their impugned
order that the order dated 18.7.1983 of the learned Single
Judge will stand confirmed if respondents 1 to 4 fail to
deposit the sum of Rs. 1,25,000 by 1.8.1983 and the balance
of Rs. 3.75,000 by 29.8.1983. The learned Judges of the
Division Bench have thus left in tact the order dated
18.7.1983 of the learned Single Judge in the event of
respondents 1 to 4 not taking advantage of the opportunity
given to them in the name of social justice to purchase the
disputed property for
606
Rs. 5,00,000 by paying that amount in two instalments as
aforesaid Hence this appeal by special leave.
With respect to the learned Judges of the Division
Bench of the High Court I am at a loss to understand how
their order which virtually disposes of the appeal filed by
respondents 1 to 4 against the order of the learned Single
Judge dated 18.7.1983 declining to add them as parties to
Suit No 2024 of 1952 as well as in the application moved by
the official Receiver in May 1983 and to stay and set aside
the orders dated 24.5.1983 and 26.5.1983 and directs the
sale of the disputed property to respondents 1 to 4 and
their 34 nominees on payment of the sum of Rs 5,00,000 in
two instalments as mentioned above could be made in an
application which has been filed by respondents 1 to 4 for
only an interim order pending disposal of the main appeal
filed against the order of the learned Single Judge dated
18.7.1983. I also fail to see what remains to be done by the
learned Judges of the Division Bench in the main appeal
filed by respondents 1 to 4 against the learned Single
Judge’s order dated 18.7.1983 after the learned Judges of
the Division Bench have passed the order impugned in this
appeal before this Court. That appeal before the learned
Judges of the Division Bench has now become totally
redundant and unnecessary, for what respondents 1 to 4
wanted has been ordered in their favour viz, setting aside
the orders dated 24.5.1983 and 26.5.1983 which is one of the
prayers in the application made before the learned Single
Judge and the sale of the property in their favour and in
favour of their nominees for Rs. 5,00,000 subject to payment
of that amount in two instalments within the time mentioned
above, a relief which was not even prayed for by them in
their application before the learned Single Judge but
granted even before they had been impleaded as parties in
the suit or in the application filed by the official
Receiver in May 1983. which prayer was refused by the
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learned Single Judge and has not been granted even by the
learned Judges of the Division Bench in their order made in
the application filed only for interim relief. This must
strike any one as an extraordinary feature in this case, and
I therefore think it must be noticed before proceeding to
consider the merits of the case in the light of the
arguments advanced by Mr. S.S. Ray, Senior Counsel appearing
for the appellant and Mr. G.L. Sanghi, Senior Counsel
appearing for respondents 1 to 4 in the appeal. Another
extraordinary feature in this case is that in the name of
social justice the learned Judges of the Division Bench of
the High Court have conferred the benefit of purchasing the
disputed property on rank trespassers, not ordinary
trespassers in respect of
607
property in the possession of some private individual who is
not vigilant about his rights but trespassers in respect of
property which is in custodia legis through a Receiver who
was vigilant enough to move the Court for a direction that
the police to remove respondents 1 to 4 from their unlawful
possession of the disputed property and put him in
possession thereof after his own letters to the police for
help in that behalf did not evoke the necessary response. I
will now proceed to consider how respondents 1 to 4 are rank
trespassers in respect of the disputed property which is in
custodia legis and are contemners who are liable to be
committed for contempt and not persons on whom any benefit
could be conferred by any Court of law.
Mr. Ray submitted rightly that respondents 1 to 4 are
rank trespassers in respect of the disputed property which
is in custodia legis. The case of respondents 1 to 4 is that
they became licencees in respect of the property in 1975
under a leave granted to them by Malati Das and Jitendra
Kumar Das. This case has been found by Monjula Bose, J. to
be false having regard to the fact that Malati Das came on
record as a legal representative of her husband Prasad Nath
Das only in 1977 and she appeared in Court and denied having
granted any such licence to respondents 1 to 4. There is no
documentary evidence about the alleged grant of the licence.
If at all, it could only have been oral. Respondents 1 to 4
have not examined Jitendra Kumar Das to prove the alleged
grant of the licence. Jitendra Kumar Das is a party to the
approval granted on 12.1.1983 and 9.8.1983 for the sale of
the disputed property by the official Receiver to the
appellant by private treaty. It is impossible that such a
valuable property has been allowed to be enjoyed by
respondent 1 to 4 for no benefit or consideration to the
owners by any of the owners of the property. Respondents 1
to 4 had no consistent case about when the alleged leave was
granted. In the present proceedings their stand is that it
was granted in 1975. But in the proceedings before the Sub-
Divisional Executive Magistrate, Sadar, Howrah under s. 145
Criminal Procedure Code they stated that the licence was
granted 15 years prior to the date of that petition which
will take us to 1968 as stated above. Therefore, factually
the alleged grant of licence does not appear to be true as
has been found by Monjula Bose, J. Mr. Sanghi on the other
hand, contends that the "right" claimed by respondents 1 to
4 has not been gone into or determined and that they are
entitled to the equitable relief granted to them by the
learned Judges of the Division Bench on the basis of their
admitted possession of the property. The contention that
their
608
position has not been determined by the learned Single Judge
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is not correct.
In paragraph 801 and 808 at pages 403 and 407 of
Halsbury’s Laws of England, Fourth Edition, Volume 39 we
find the following passage:
"A receiver is a person appointed for the
collection or protection of property. He is appointed
either by the court or out of court by individuals or
corporations. If he is appointed by the court, he is an
officer of the court deriving his authority from the
court’s order. If he is appointed out of court, he is
an agent and has such powers, duties and liabilities as
are defined by the instrument or statute under which he
is appointed and derive from the general law of agency
....A receiver appointed by the court is in no sense an
agent or trustee for the party at whose instance the
appointment is made. He is an officer of the court
appointed for the benefit of all the parties to the
action, and their rights among themselves are not
affected."
In Kerr on Receivers, Fifteenth Edition, we find the
following passage at page 155:
"A person who disturbs or interferes with the
possession of a receiver is guilty of a contempt of
court, and is liable to be committed. In extreme or
aggravated cases, the court will, for the purpose of
vindicating its authority, order a committal. The court
is generally satisfied with ordering the party in
contempt to pay the costs and expenses occasioned by
his improper conduct, and also the costs of the
application to commit."
This Court has observed in Everest Coal Company (P)
Ltd. v. State of Bihar & Others thus:
"When a court puts a Receiver in possession of
property, the property comes under court custody, the
Receiver being merely an officer or agent of the court.
Any obstruction or interference with the court’s
possession sounds in contempt of that court. Any legal
action in respect of that property is in a sense such
an interference
609
and invites the contempt penalty of likely in
validation of the suit or other proceedings."
It is not disputed that after the institution of Suit
No. 2024 of 1952 in the High Court, the Official Receiver
was appointed as Receiver in respect of the disputed
property on 11.8.1953 and that he took possession of the
same on 13.8.1953 and it continues to be in custodia legis
through the Receiver since then. This has been found by
Monjula Bose, J. in the order dated 18.7.1983. When the
property is in custodia legis neither Malati Das nor
Jitendra Kumar Das, who may have rights of ownership in the
property, could grant any licence in 1975 or at any time
after the Receiver had been appointed and possession had
been taken in August 1953. Even if there was such a grant of
licence it is invalid in law. Even if possession of the
property had been obtained by respondents 1 to 4 pursuant to
any such grant of licence it would, in law, be only that of
trespassers. Therefore, even on the admitted case of
respondents 1 to 4 that their possession started in 1975 as
licencees, in the light of the undisputed fact that the
Receiver got into possession of the property as far back as
in August 1953 under the orders of the Court, the possession
of respondents 1 to 4 could only be that of trespassers.
They are trespassers who are liable to be committed for
contempt of the Court inasmuch as they are trespassers in
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respect of the property which is in custodia legis. Their
possession and conduct have to be frowned upon by the Court
and not treated as grounds for conferring a benefit on them
to purchase the property albeit for a higher amount than the
amount for which the Official Receiver has agreed to sell
the property to the appellant with the approval of the
parties to the suit. The learned Judges of the Division
Bench have treated this illegal act of trespass of
respondents 1 to 4 on the property which is in custodia
legis as the ground for conferring the benefit on them in
the name of social justice, and it is this order which Mr.
Sanghi, with all his vehemence, wants this Court to confirm.
In my view it will be totally wrong to do so. It was
conceded by Mr. Sanghi that while rendering social justice
no violence to any established and well-known principles of
law could be committed. In these circumstances, I am of the
opinion that no relief could be granted to respondents 1 to
4 who are trespassers in respect of the property in custodia
legis on the basis of their wrongful possession which is a
continuing act of contempt of the Court.
Mr. Sanghi invited this Court’s attention to the
Calcutta High
610
Court’s order dated 11.10.1982 for the sale of the disputed
property particularly to the portion thereof which says that
Rs. 10,000 out of the sale proceeds should be paid to Ashok
Kumar Rai subject to adjustment against his share and that
the balance should be invested by the Official Receiver in
fixed deposit every time for a term not exceeding one year.
A sum of Rs. 1,00,000 was sent by a bank draft to the
official Receiver along with the offer made on behalf of the
appellant for purchasing the property for Rs. 4,00,000.
According to the offer made in that letter the appellant had
to pay the balance of Rs. 3,00,000 within six months from
13.1.1983. Mr. Sanghi invited this court’s attention to the
non-payment of the balance of Rs. 3,00,000 until it was sent
to the Receiver on 8.8.1983 in spite of the Receiver asking
for its payment at an early date by his letter dated
13.1.1983 by which he had communicated the approval of the
parties granted on 12.1.1983 for the sale of the disputed
property to the appellant for Rs. 4,00,000 and submitted
that the appellant has hot complied with the spirit of the
order for the sale of the property by private treaty. Mr.
Sanghi next invited this Court’s attention to the fact that
in the parties’ meeting held before the Receiver on
12.1.1983 to consider which of the 3 offers made to the
Official Receiver could be accepted Mr. D.N. Mitra, Advocate
for Prabir Kumar Das and Pradeep Kumar Das had stated that
they have no objection to the sale subject to the appellant
agreeing to purchase the property subject to pending
litigation. The pending litigation referred to by Mr. Mitra
evidently refers to the litigation about the property
pending in Second Appeal No. 1267 of 1982 filed in the
Calcutta High Court by Kamal Hosiery against the Official
Receiver. The appellant’s learned Counsel had earlier
offered in his letter dated 20.12.1982 to purchase the
property for Rs. 4,00,000 subject to the vendors making out
a good and marketable title free from encumbrances. The
Official Receiver has not referred to that condition
mentioned by the Advocate for Prabir Kumar Das and Pradeep
Kumar Das that the acceptance of the offer of the appellant
is subject to his agreeing to purchase the property subject
to the pending litigation but he has merely stated in his
letter dated 13.1.1983 that the appellant’s offer to
purchase the property for Rs. 4,00,000 has been accepted and
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that he should pay the balance of Rs. 3,00,000 at any early
date. The parties had accepted the appellant’s offer even in
the subsequent meeting held on 9.8.1983 after the appellant
had sent the balance of Rs. 3,00,000 on 8.8.1983 to the
Receiver. Mr. Sanghi submits that there was a counter-offer
by reason of the statement made on behalf of the two
plaintiffs Prabir Kumar Das and Pradeep Kumar Das in the
meeting convened
611
by the receiver on 12.1.1983 that the appellant’s offer
should be accepted subject to the condition that he will
purchase the property subject to the pending litigation and
that there should have been a fresh acceptance by the
appellant thereafter, and he has not done so and therefore
there is no concluded contract. There is no such conditional
acceptance as the condition required by Prabir Kumar Das and
Pradeep Kumar Das has not been specially communicated to the
appellant by the official Receiver for his acceptance.
Therefore there is no merit in this contention of Mr.
Sanghi.
Mr. Sanghi next submitted that respondents 1 to 4 have
offered Rs. 5,00,000 for the disputed property and that
since the owners of the property stand to gain a sum of Rs.
1,00,000 by accepting that offer, the order for sale of the
property made by the learned Judges of the Division Bench in
favour of the respondents 1 to 4 and their 34 nominees
should be confirmed.
Respondents 1 to 4 are trespassers in respect of the
property which is in custoda legis and they are in contempt
of the Court. They cannot be allowed to continue to be in
contempt and urge it as a ground for obtaining the benefit
of the sale of the property in their favour. If the
appellant has not complied with any condition it may be a
ground for the owners and the Official Receiver not to
accept his offer and refuse to sell the property to him and
not for respondents 1 to 4 to raise any objection. The offer
has been accepted rightly or wrongly more than once and
therefore the appellant may have a right to sue for specific
performance of the contract on the basis of that acceptance
by the Official Receiver given with the approval of the
parties. The same is the position in regard to the delay of
about a month in paying the balance of Rs. 3,00,000 by the
appellant. In Kayjay Industries (P) Ltd. v. Asnew Drums (P)
Ltd. & Others it has been held that the executing court had
committed no material irregularity in the conduct of the
sale in accepting the highest offer and concluding the sale
at Rs. 11,50,000 though the market value of the property may
be over Rs. 17,00,000. Jibon Krishna Mukherjee v. New
Bheerbhum Coal Co. Ltd. & Anr. it has been held that the
sale held by the Receiver appointed by the Court is not
governed by the provisions of Order 21 rule 89 of the Code
of Civil Procedure which enables the persons specified in
sub-rule 1 to have the sale held in execution
612
proceedings set aside on the two conditions therein
mentioned being satisfied, namely, as regards the deposit of
poundage, balance of decree amount due etc. In that case, as
in the present case, the Receiver was given liberty to sell
the property by private treaty or by public auction. In
Tarinikamal Pandit & Others v. Prafulla Kumar Chatterjee we
find the following observation :
"The procedure envisaged for sale generally and
sale of an immovable property under Order 21 is sale by
public auction. Sale by a Court through the Receiver
appointed by Court is not contemplated under these
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provisions.....A Receiver is appointed under Order 40
Rule 1 and a property can be sold by the Receiver on
the direction of the Court even by private
negotiation."
In the present case the property has been agreed to be
sold by private treaty and as required by the order made for
the purpose the approval of the parties has been obtained by
the Official Receiver who has been authorised to sell the
property either by public auction or by private treaty. The
Court does not come into the picture in such a case and
there is no need for the Court to approve or confirm such
sale. The parties who are sui juris must be deemed to have
known their interest best when they chose to approve the
sale of the property for Rs. 4,00,000 in favour of the
appellant not with standing the fact that respondents 1 to 4
had offered to purchase the property for Rs. 5,00,000
therefore, in my view the learned Judges of the Division
Bench had no right or justification to alter or modify the
earlier order made for the sale of the property by even
private treaty, which had become final, or to hold that
subsequent offer made by respondents 1 to 4 to purchase the
property for Rs. 500,000 should be accepted merely because
it appears to be advantageous to the owners of the property
in the name of social justice. I am unable to persuade
myself to hold that the benefit claimed on behalf of
respondents 1 to 4-I would not call it a right, for there is
no corresponding obligation-can be equated with or even
brought anywhere near the social justice mentioned in the
preamble of our Constitution.
For these reasons, I am of the opinion that the learned
Judges of the Division Bench were not right in interfering
with the well considered order of the learned Single Judge
Monjula Bose, J. by
613
their order made in the application of respondents 1 to 4
for a mere interim order pending consideration of the appeal
preferred by them against that order of the learned Single
Judge dated 18.7.1983 in the manner done by them which has
rendered the main appeal itself redundant and wholly
unnecessary as stated above. The impugned order of the
learned Judges of the Division Bench which purports to stand
on the fragile and imaginary prop of social justice has no
legs in law to stand and cannot be allowed in law to stand.
I would, therefore, allow the appeal and set aside the order
of learned Judges of the Division Bench and restore that of
the learned Single Judge dated 18.7.1983 with costs
quantified at Rs. 3,000 and payable by respondents 1 to 4.
SABYASACHI MUKHARJI, J, With respect I agree with the
order proposed by Brother Fazal Ali. In view, however, of
the question posed in this case, I would like to
recapitulate the facts as I view these and to state the
principles upon which I would like to rest my concurrence
with the order proposed. Though the controversy arises in a
long pending litigation, the question before this Court lies
within a short compass.
Premises No. 7, Duffers Lane, Howrah, comprising of
about six bighas of land is nearabout Calcutta. It formed
part of the estate of one late Radha Kanta Das, since
deceased. The premises is hereinafter called "the disputed
premises". Suit No. 2024 of 1952 was filed in the High Court
of Calcutta on May 29, 1952 by one Prasad Nath Das claiming
a decree for construction of the will and testament of the
said Radha Kanta Das since deceased and for declaration that
the purported will dated May 22, 1952 executed by one
Jitendra Kumar Das, since deceased in respect, inter alia,
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of the disputed premises was invalid, void and for other
reliefs. The Official Receiver was appointed receiver over
certain properties belonging to or alleged to have belonged
to that estate including the disputed premises on or about
August 11, 1953. Some of the parties to the suit, namely
respondents Nos. 13, 14 and 15 to this appeal took out an
application for granting leave to the Officer Receiver to
sell the disputed premises, as some of the parties required
immediate funds. An order was passed on October 11, 1982 by
a learned Single Judge of the High Court directing the
Official Receiver to sell the disputed premises either by a
public auction or private treaty to the highest offerer
subject to a reserved price of Rs. 3,50,000 and the order
further directed that "in the event the property is sold by
private treaty, the Official Receiver, High Court, Calcutta,
would call a meeting of the parties and obtain their
approval to such sale by private treaty. The provisional
allottees or any other party to
614
the suit would be entitled to bring intending purchasers for
the same." On December 20, 1982 by a letter, an offer was
made to the Official Receiver for purchase of the said
premises for Rs. 4,00,000 on behalf of the present
appellant. The said letter contained the following :-
"We make an offer for purchase of the above
property for Rs. 4,00,000 (Rupees four lacs) subject to
the Vendors’ making out a good and marketable title
free from encumbrances."
A Bank draft for Rs. 1,00,000 in favour of the Official
Receiver was also sent along with it. At a meeting held on
Jan. 12, 1983, the said offer along with two other offers
were considered by the representatives and advocates
appearing for the different parties in the suit. It appears
that parties more or less agreed that the offer received on
behalf of the appellant was best but one Shri B.N. Mitra,
representing his client observed that it might be accepted
subject to the appellant’s agreeing "to purchase the same
land with pending litigation in respect of the said
property." It may be mentioned that the terms in which the
Official Receiver intimated by letter dated January 13, 1983
addressed by the Official Receiver to the advocate of the
present appellant contained the following :-
"This is to inform you that your client’s offer of
Rs. 4,00,000 for the purchase of the above premises has
been accepted.
You are, therefore, requested to advise your
client to deposit the balance sum of Rs. 3,00,000 at an
early date."
It would be relevant to bear in mind that it was not
communicated that the acceptance of the offer was subject to
the appellant’s agreeing to purchase the land with pending
litigation in respect of the said land. The offer of the
appellant which had been originally communicated did not
contain any condition that the offer to purchase was subject
to pending litigation. It was, therefore, urged before us
that there was no acceptance of the offer by letter dated
January 13, 1983 because the acceptance was with a
condition. It was urged that it was really a counter offer.
The Division Bench of the High Court came to the conclusion
that there was no concluded contract. Such a view is a view
which is possible to take, and as such the Division Bench
proceeded on the basis that there was no concluded
615
bargain between the appellant and the parties represented by
the receiver. It may, however, be mentioned that in
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February, 1983, it is stated, certain documents were
forwarded to the appellant’s advocate. It may be mentioned
that in the letter referred to hereinbefore dated December
20, 1982, the appellant had also stipulated that the sale be
completed within six months or such further extended time as
may be agreed upon in one or more lots by one or more sale
deeds in favour of the appellant or his nominee or nominees.
The letter dated January 13, 1983 by the Official Receiver
also requested the appellant to deposit the balance sum at
an early date. It may be mentioned that the said balance sum
was deposited after August, 1983 after the special leave was
granted in this matter by this Court. It is also significant
to bear in mind that though the application for sale of the
property in question was made because the parties were in
urgent need of money, there does not appear to be any
document or letter asking the appellant for the money.
It is alleged that in February, 1983, fire broke out in
the factory adjacent to the premises in question and fire
brigade men had entered into the premises by breaking a
portion of the well to get access to the pond inside the
disputed premises. It is the case of the appellant that on
March 14, 1983, the respondents nos. 1 to 4 along with some
miscreants had forcibly entered into the disputed premises.
This, however, is disputed by the contesting respondents
nos. 1 to 4 herein, out of whose application to the High
Court for intervention, the order impugned was passed by the
Division Bench and which is the subject matter of this
special leave, they in their application asserted that they
had come to know about the appointment of the Official
Receiver from the police and they further came to know about
the offer made by the appellant for the purchase of the
premises in dispute. The said respondent alleged that they
along with 38 families with the leave and licence of one of
the co-owners were residing in the premises in question
since 1975 and had constructed pucca huts and structures and
in spite of the same, according to the said respondents, the
appellant did not inform the court of the said fact before
obtaining police help against them. The said respondents
claimed that they were licencees under the original owners,
Smt. Malati Das and Jitendra Nath Das, in certain specified
plots mentioned in their application. They further alleged
that on May 2, 1983, they had come to know that the
appellant had obtained ex-parte order from the Sub-
Divisional Magistrate (Executive) directing the
Superintendent of Police to restore possession of the
premises in dispute by arranging police help. The applicants
had
616
filed an application before the learned Sub-Divisional
Magistrate under Section 145 of the Code of Criminal
Procedure with a prayer to recall the ex-parte order
mentioned hereinbefore and to call for a report from the
local police regarding possession of the said applicants in
the said disputed premises. The Sub-Divisional Magistrate,
it was alleged, did not pass any order and was pleased to
direct to put up the said application on May 7, 1983. Though
no formal order was passed the said application was kept on
record. The applicants further alleged that coming to know
that certain other order might be passed, the applicants
moved a revision application under the Criminal Revisional
jurisdiction before the High Court and thereafter had
obtained the stay of the order of April 26, 1983 passed by
the learned Sub-Divisional Magistrate. The said application
under Section 145 of the Code of Criminal Procedure is
pending.
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The pendency of the proceedings under Section 145 of
Code of Criminal Procedure and order, if any, passed thereon
does not in any way affect the title of the parties to the
disputed premises though it reflects the factum of
possession. See the decision of this Court in the case of
Bhinka and Others v. Charan Singh.
It is in this background that the applicants in their
application before the learned Single Judge of the High
Court prayed that their claim to be in possession and their
right to be in possession should be determined and as such
they should be added as defendants to the suit and as a
consequence, the order for police help granted by the High
Court in ejecting the applicants should be recalled. The
said application came up to be heard by a learned Single
Judge of the High Court and by an order passed and judgment
delivered, the learned Judge rejected the application
holding that the respondents nos. 1 to 4 being the
applicants therein were trespassers and had no right to be
in possession of the premises after the Official Receiver
had been appointed receiver and further it was held that the
parties had no right to grant any leave or licence after the
property came under the custody of the Official Receiver as
receiver appointed in the suit. The learned Judge further
held that a sale had been concluded in favour of the present
appellant and therefore though noting that the respondents
nos. 1 to 4 being the applicants therein had offered to pay
a sum of Rs. 1,00,000 more for the purchase of the premises
in dispute, the learned Judge rejected the said offer and
dismissed their application.
617
As mentioned hereinbefore there was an appeal from this
decision to the Division Bench of the High Court. The
Division Bench was of the view that the offer made on behalf
of the respondents nos. 1 to 4 should be accepted. The
Division Bench took the view that there was no concluded
contract for sale in favour of the present appellant. The
Division Bench was of the view that there was not then any
completed sale. The Division Bench further noted as follows
:-
"On the other hand, we find that 38 families have
been residing in the disputed land. It is submitted by
Mr. Bhabra that these persons are all trespassers
without any vestige of title. It is however, the case
of the petitioners that they have been residing in the
disputed land by making certain structures under the
leave and licence of two of the owners of the said
premises although one of the owners, Smt. Malati Das,
who is alleged to have granted the licence, has denied
granting of such licence. If the disputed land is sold
to the respondent No. 2 then 38 families who have been
residing therein would be evicted with police help. In
our opinion, the Court should do social justice and in
doing such justice any technicality of law will not
stand in its way. Social Justice requires that the
disputed land should be sold to the petitioners and
others residing on the disputed land. Moreover, the
petitioners have offered to pay the price of Rs.
5,00,000 that is to say Rs. 1,00,000 more than the
offer of the respondent No. 2."
The Division Bench directed that Rs. 1,25,000 should be
paid by present respondents 1 to 4 on or before August 1,
1983 which it may be noted has been paid and thereafter pay
the balance sum of Rs. 3,75,000 by August 29, 1983 which sum
however could not be paid because in the meantime special
leave to appeal was granted by this Court and a stay had
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been obtained. It may be mentioned that the balance of the
consideration of Rs. 3 lacs offered by the present appellant
has been paid only after the special leave had been obtained
from this Court. The Division Bench further directed that in
case payments were made within the time, the property in
question should be conveyed to the persons named in the said
order. It was further directed that in case the respondents
1 to 4 committed default in paying a sum of Rs. 1,25,000 or
3,75,000 within the stipulated time, the said order would
stand vacated and the order of
618
learned Single Judge would stand confirmed i.e. sale would
be made to the appellant.
It is the validity and the propriety of the said order
which is impugned in this appeal. The question mainly is
whether there was a concluded and confirmed sale in favour
of the appellant and if not could the Court direct the
disputed premises to be conveyed to respondents nos. 1 to 4
for the benefit of 38 families relying on social justice.
On the question whether in the facts and circumstances
that have happened, the Court could pass the order it had
done, some contentions were urged whether the sale in
question was a court sale or a private sale or a sale by the
receiver and whether confirmation of the court was required
for such a sale. Some of the decisions cited at the Bar on
this point have been noted by my Brother. In the view I have
taken it is not necessary in this case to decide whether a
confirmation of sale by the court in the circumstances under
which the property was directed to be sold was necessary or
not, though it may be sufficient to note that there was some
divergence of opinion on this point. On the nature of the
possession by the receiver and how interference with such
possession should be dealt with by law have also been noted
in the observations in Halsbury’s Law of England, 4th Ed.,
Volume 39 pages 451 and 452, paragraphs 890 and 891. See
also Kerr On Receivers-15th Edition page 155 and also Kerr
On Receivers-16th Edition pages 121 and 122. It is well-
settled that when the property is in the custody of a
receiver appointed by the court, the property is in the
custody of the court and interference with such possession
should not be encouraged and no party can acquire any title
or right by coming in or over the property which is in the
possession of the receiver without leave or consent of the
receiver or sanction of the court. It was urged that in as
much as no such leave had been obtained by the respondents
nos. 1 to 4, possession, if any, of the said respondents or
entry into the land by the said respondents at a time when
indisputably there was receiver was illegal. In view of the
facts that have happened and in the light of the controversy
before us now, in my opinion, it would be futile to
determine at this stage whether the entry of the respondents
nos. 1 to 4 was legal or illegal. It may be mentioned,
however, that so long as proceedings under Section 145 of
Code of Criminal Procedure were pending before the
appropriate court, without any adjudication of the
respondents nos.
619
1 to 4’s right to be in possession and directing that they
be physically ejected by police help without hearing them or
without notice to them is not a correct legal position to
take for court of law administering justice. But it is not
necessary for the purpose of this appeal to express any
final opinion on that.
It appears in the background of the facts and
circumstances of the case that the Division Bench took the
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view that there was no concluded contract of sale in favour
of the appellant and it appears to us that such a view was a
possible view to be taken in view of the facts I have
mentioned and if that is so, such a conclusion cannot and
should not be interfered with in appeal under Article 136 of
the Constitution. Assuming even that though not legally but
as a reality of fact, the respondents nos 1 to 4 were and
are in possession of the dispute premises, they want to
purchase the premises by paying more than the offer then
made, the offer made by the appellant to purchase the
premises in dispute seems to be rather low in the context of
facts and circumstances prevailing in such areas nearabout
Calcutta. The area comprises of about six bighas i.e. about
120 cottahs of land. It has been suggested in one of the
affidavit on behalf of respondents nos 1 to 4 that the
prices prevalent in those areas are about Rs. 14,000 per
cottah. Therefore it was suggested that in the transaction
between the appellant and receiver or with the parties,
there is more than what meets the eye. We, however, need not
speculate on the same. The facts on which I would like to
rest my decision are: (1) there is not a concluded contract
in favour of the appellant. This view has been accepted by
the Division Bench. It is a possible view. This view should
not be interfered within appeal under article 136 of the
Constitution; and (2) the fact is that the respondents 1 to
4 are in possession with large number of their families. The
original entry might be, if their version is rejected,
illegal and without the authority of the court as no leave
was obtained but their possession is a reality. Illegitimacy
of entry does not debar them from offering a higher price in
purchasing a property, contract for sale in respect of which
has not yet been concluded, and (3) the property is in
custodia legis. Though the court directed the receiver to
sell, as the sale has not been concluded, the court retains
its power to direct its officer to sell to such other person
the transaction of which will apparently benefit the parties
as appearing from the facts on record or as from the facts
which meet the eye. (4) The factor that large number of
people are in possession with their families and conclusion
of sale
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to them would cause non-interference with their continuance
are factors which the court can and should take into
consideration in deciding the controversy in this case. (5)
There has not indeed been any proper adjudication of the
right of the respondents nos. 1 to 4 to be in possession of
the premises in question and even if their entry was tainted
with illegality, it is not of such a magnitude, in view of
subsequent facts that because of illegitimate entry, they
will be deprived of the right to bargain on proper terms to
purchase the property which is in the custody of the court.
If there has not been any proper sanction of the court, this
is only a procedural irregularity and as is well-settled
that rules of procedures are Hand Maids of justice not their
mistresses.
The appellant in this appeal poses a question whether
the concept of social justice empowers the court to grant
relief in favour of persons who interfere with the admitted
possession of the receiver at the expense of the bona fide
purchaser at a court sale. As I see the facts, the basis
upon which this question is posed namely, that the appellant
is a bona fide purchaser of the property is not correct in
the light of the view taken by the Division Bench. There had
not been, any concluded contract of sale when the Division
Bench passed the order.
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The concept of social justice is not foreign to legal
justice or social well-being or benefit to the community
rooted in the concept of justice in the 20th century. The
challenge of social justice as I see it, is primarily a
challenge to the society at large more than to the court
immediately. Social justice is one of the aspirations of our
Constitution. But the courts, we must remember are pledged
to administer justice as by law established. In formulating
the concept of justice, however, the inarticulate factor
that large number of human beings should not be dislodged
from their possession if it is otherwise possible to do so
cannot but be a factor which must and should influence the
minds of judges in the facts of this case. It is true that
the persons who were alleged to be in possession are with
unclean hands but they came for shelter and built in
hutments. They do not want to legitimise their stay by
illegal entry, they want to be rehabilitated at competitive
bargain price. Should they be denied that opportunity on the
ground of their original illegitimacy ? I am definitely of
the opinion that in these circumstances they should not be
so denied rehabilitation. In administering justice-justice
according to law in this case, no law is breached in the
view taken
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by the Division Bench of the Calcutta High Court. The
American Bar Association in its report in 1964 had observed
that jurisprudence has shifted away from finespun
technicalities and abstract rules to practical justice to a
recognition of human beings, as the most distinctive and
important feature of the universe which confronts our
senses, and of the function of law as the historic means of
guaranteeing that preeminence. (See The Fourteenth Amendment
Centennial Volume Edited by Bernard Schwartz. page 10). I
therefore respectfully agree with Brother Fazal Ali when he
says that in administering justice-social or legal,
jurisprudence has shifted away from finespun technicalities
and abstract rules to recognition of human beings as human
beings.
It is true that original entry was illegal and we are
sometimes urged "to do a great right, do a little wrong"
(See the plea of Bassanio in Merchant of Venice). In this
case, however, the court has done no legal wrong at all. The
court has only ignored the non-compliance of not seeking
court’s leave for the alleged grant of licence.
In administering justice, or social legal, we do well
to bear in mind the words of Justice Holmes "The life of the
law has not been logic: it has been experience. The felt
necessities of the time, the prevalent moral and political
theories, intuitions of public policy, avowed or
unconscious, even the prejudices which judges share with
their fellow-men, have had a good deal more to do than the
syllogism in determining the rules by which men should be
governed The law embodies the story of a nation’s
development through many centuries, and it cannot be dealt
with as if it contained only the axioms and corollaries of a
book of mathematics. In order to know what it is, we must
know what it has been, and what it tends to become. We must
alternately consult history and existing theories of
legislation. But the most difficult labour will be to
understand the combination of the two into new products at
every stage. The substance of the law at any given time
pretty nearly corresponds, so far as it goes, with what is
then understood to be convenient; but its form and
machinery, and the degree to which it is able to work out
desired results, depend very much upon its past." (The
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Common Law by Oliver Wendell Holmes-Edited by Mark DeWolfe
Howe-Lecture I-page 1).
The felt necessities of time and in this case the
convenience of the situation and the need for adjusting the
rights of a larger number
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of people without deprivation of any accrued right of
anybody would be justice according to law. Before we reject
social justice as something alien to legal justice, we
should remember that a meaningful definition of the rule of
law must be based on the realities of contemporary societies
and the realities of the contemporary societies are-men are
in acute shortage of living accommodation and if they are
prepared to bargain and rehabilitate themselves on
competitive terms, they should be encouraged and no
technical rules should stand in their way. That would be
justice ‘by highways’ and not infiltration ‘by bye-lanes’.
In that view of the matter, I hold that there is no
merit in this appeal. I agree with the order proposed by
Brother Fazal Ali and the reasons given by him.
N.V.K. Appeal dismissed
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