High Courts

C.L. Kalyanasundaram Aiyar vs S. Narasimha Aiyangar and Others

Madras High Court · Decided on 21 December 1922 · Citation: AIR 1923 Mad 567 : (1923) 18 LW 280 : (1923) 44 MLJ 427

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Judgment

11 paragraphs · 244 words
1.

The Subordinate Judge rightly was of opinion that the appellant''s attachment of the decree obtained by the Receiver in O.S. No. 113 of 1919

was invalid for want of the leave of the court that appointed the Receiver. We accept the principle that an act done without the Court''s Section to

proceed against a Receiver could subsequently be validated as has been held by this Court in Ammu Kntty v. Manavikraman ILR (1920) M. 793

and Jagana Sanyasiah and Others Vs. Mycherla Peda Atchanna Naidu, and by the Calcutta High Court in Banku Behari Dey v. Harendra Nath

Mukerjee (1910) 15 C.W.N. 54 and Sarat Chandra Bauerjee v. Apurba Krishna Roy (1911) 15 C.W.N.925 .

2.

But in this case no step had been taken to validate the irregular attachment by the time that the Receiver assigned his interest as decree-holder to

the innocent purchaser who is 1st respondent in this appeal, and therefore the appellant''s right as an attaching creditor cannot be allowed to prevail

over the rights of a bona fide transferee for consideration of the decree-holders interest. An attempt has been made to show that the Receiver had

no power to assign the decree under the powers vested in him, but this contention cannot be maintained in view of the wide authority given by the

vesting order of 18-4-1908, which expressly refers to the ""full powers"" of Order 40, Rule 1.

3.

The Appeal tails and is dismissed with costs.