{"id":31893,"date":"2007-06-18T00:00:00","date_gmt":"2007-06-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/t-v-r-fund-vs-manikantan-on-18-june-2007"},"modified":"2018-03-01T00:19:48","modified_gmt":"2018-02-28T18:49:48","slug":"t-v-r-fund-vs-manikantan-on-18-june-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/t-v-r-fund-vs-manikantan-on-18-june-2007","title":{"rendered":"T.V.R.Fund vs Manikantan on 18 June, 2007"},"content":{"rendered":"
Kerala High Court<\/div>\n
T.V.R.Fund vs Manikantan on 18 June, 2007<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C) No. 12224 of 2004(E)\n\n\n1. T.V.R.FUND, KARAMANA,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. MANIKANTAN S\/O. KANAKA SUBHAPATHI,\n                       ...       Respondent\n\n2. PRABHAKARAN NAIR, THE ASSIGNEE\n\n3. BABU K.MATHEW, T.C.12\/187, PALATHINGAL,\n\n                For Petitioner  :SRI.V.N.ACHUTHA KURUP\n\n                For Respondent  :SRI.S.GOPAKUMARAN NAIR, SC, CALICUT UTY\n\nThe Hon'ble MR. Justice PIUS C.KURIAKOSE\n\n Dated :18\/06\/2007\n\n O R D E R\n                        PIUS C. KURIAKOSE, J.\n                         -------------------------------\n                       W.P.(C) No. 12224 OF 2004\n                       -----------------------------------\n                   Dated this the 18th day of June, 2007\n\n                                JUDGMENT\n<\/pre>\n
       The Official Receiver of the Thiruvananthapuram District Court<\/p>\n
who was appointed by the Insolvency Court, Thiruvananthapuram for<\/p>\n
administering the assets of a partnership firm by name TVR Funds is<\/p>\n
the petitioner in this Writ Petition under article 227 of the Constitution.<\/p>\n
The order impugned is Ext.P2 passed by the Principal Sub Court,<\/p>\n
Thiruvananthapuram, a common order in EA No.137 of 2002 and EA<\/p>\n
No.138 of 2002 filed by the 1st respondent. The prayer in EA No.137 of<\/p>\n
2002 was to stay all further proceedings pursuant to a notice dt.02.09.02<\/p>\n
affixed by the Official Receiver on the decree schedule property and<\/p>\n
prayer in EA No.138 of 2002 is that the Official Receiver be directed to<\/p>\n
obey the order in EA N.263\/02 and if he fails to obey the orders, pass<\/p>\n
orders attaching the receiver’s property. There was an earlier order by<\/p>\n
the Sub Court in EA No.263 of 2002 which was to the following effect.<\/p>\n
“The Official Receiver is permitted to let out the shop room to the<\/p>\n
petitioner(1st respondent) provided the petitioner agrees with the rent<\/p>\n
fixed by the Official Receiver. The Official Receiver will take necessary<\/p>\n
records for handing over the schedule premises to the petitioner and<\/p>\n
she will maintain proper accounts. The possession of the petitioner will<\/p>\n
WPC No.12224 of 2004
\n                                    2<\/span><\/p>\n
be subject to the result of the EP.” Pursuant to that order the Receiver<\/p>\n
published notice inviting tenders from persons who are desirous of<\/p>\n
taking the shop room on rent quoting the monthly rent which is offered.<\/p>\n
14 individuals including the 1st respondent submitted sealed tenders.<\/p>\n
The tenders were opened and it was seen that the 1st respondent<\/p>\n
quoted only Rs.500\/- while the highest offer was made by one<\/p>\n
M.S.Ajithkumar, which was for Rs.3,200\/-.        As against the offer of<\/p>\n
Rs.500, there was offers of Rs.2,501 from one Ayyappa Pillai,<\/p>\n
Rs.2,000\/- from R.Subrahmanian, Rs.2,000\/- from one S.P.Ajithkumar<\/p>\n
and Rs.2,000\/- from Devarajan. The tenders received by the Receiver<\/p>\n
were opened by her in the presence of most of the tenderers including<\/p>\n
the 1st respondent and noticing that the highest tender was Rs.3,200\/- ,<\/p>\n
what the Receiver did was to fix the rent of the shop room as Rs.3,205\/-.<\/p>\n
The 1st respondent was not ready either to accept the rent fixed by the<\/p>\n
Receiver. He was not prepared to offer anything more than what was<\/p>\n
already offered by him i.e. Rs.500\/- per mensum. The Receiver under<\/p>\n
the above circumstances decided to let out the shop room to<\/p>\n
Sri.Ajithkumar M.S., who offered Rs.3,200\/- and filed Ext.P1 report<\/p>\n
seeking ratification of the Court. Under the impugned order Ext.P2, the<\/p>\n
learned Subordinate Judge has taken the view that the Receiver has to<\/p>\n
hand over the possession of the schedule premises to the 1st<\/p>\n
WPC No.12224 of 2004
\n                                     3<\/span><\/p>\n
respondent and also held that the Receiver was not justified in handing<\/p>\n
over the schedule property to Sri.Ajithkumar and accordingly declined to<\/p>\n
ratify the Receiver’s act in handing over the building to Sri.Ajithkumar.<\/p>\n
Rejecting Ext.P1 report submitted by the Receiver, the court below<\/p>\n
accepted the offer made on behalf of the 1st respondent at the Bar that<\/p>\n
he is ready to pay Rs.1,000\/- by way of monthly rent and directed the<\/p>\n
Receiver under the impugned order to hand over the building to the 1st<\/p>\n
respondent on monthly payment of Rs.1,000\/-.\n<\/p>\n
       2. Smt.Bindu Sreekumar, learned counsel for the petitioner and<\/p>\n
the learned counsel for the 1st respondent addressed me extensively.<\/p>\n
Smt.Bindu Sreekumar would submit that the impugned order has been<\/p>\n
made in dereliction of the earlier order in EA 263\/02 which has attained<\/p>\n
finality. Under EA No.263 of 2002 the Receiver was permitted to let out<\/p>\n
the shop room to the 1st respondent on condition that the 1st respondent<\/p>\n
shall pay the rent which is fixed by the Receiver. In the instant case the<\/p>\n
Receiver fixed rent not in any arbitrary manner. Publication of notice<\/p>\n
inviting offers showing the agreeable rent by the Receiver was an<\/p>\n
earnest endeavour to realise the best rent in the market. The building is<\/p>\n
situated in the heart of the Chalai market in Thiruvanathapuram city and<\/p>\n
going by the prevailing rent rates the building should fetch at least<\/p>\n
Rs.3,500\/-.   As Receiver is appointed by the Insolvency Court for<\/p>\n
WPC No.12224 of 2004
\n                                     4<\/span><\/p>\n
administering the estate for the benefit of all the creditors of the firm in<\/p>\n
question, it is   petitioner’s duty to ensure that the estate generates<\/p>\n
maximum profit so that the creditors at whose instance the Insolvency<\/p>\n
Court appointed her as Receiver will be benefited. Though the highest<\/p>\n
offer was made by Sri.Ajithkumar, the petitioner was willing to let out the<\/p>\n
building to the 1st respondent who offered only Rs.500\/- provided the 1st<\/p>\n
respondent pays at least Rs.5 more than the higher offer. Smt.Bindu<\/p>\n
Sreekumar, learned counsel for the respondent would place before me<\/p>\n
copy of the common order in CRP Nos.273 and 178 of 2000 pursuant<\/p>\n
to which only the Receiver was able to take possession of the building.<\/p>\n
She also placed before me the full text of the order in EA No.263 of<\/p>\n
2002.\n<\/p>\n
       3. Even though all the submissions of Smt.Bindu Sreekumar were<\/p>\n
resisted by the learned counsel for the 1st respondent, who submitted<\/p>\n
that the 1st respondent was a statutory tenant already in possession of<\/p>\n
the building, at the time when he was dispossessed by the Receiver is<\/p>\n
entitled to be put back in possession of the building on paying the<\/p>\n
agreed rent which is only Rs.500\/-. The Receiver has to be directed to<\/p>\n
hand over possession of the building to the 1st respondent from whom<\/p>\n
the Receiver had taken possession on the original rent of Rs.500\/- and<\/p>\n
thereafter the Receiver can move the appropriate court for fixation of fair<\/p>\n
WPC No.12224 of 2004
\n                                      5<\/span><\/p>\n
rent. Once fair rent is fixed, the 1st respondent will be prepared to pay<\/p>\n
fair rent.\n<\/p>\n
        4. Having regard to the rival submissions made at the Bar and the<\/p>\n
materials which have been placed before me by the learned counsel for<\/p>\n
the petitioner and also those produced along with the Writ Petition, I am<\/p>\n
of the view that the learned Subordinate Judge was bound by her own<\/p>\n
order in EA No.263 of 2002 which was issued taking note of the order in<\/p>\n
CRPs.      It is true that the 1st respondent is entitled to get back<\/p>\n
possession of the building. For such entitlement, the 1st respondent has<\/p>\n
liability to pay the rent fixed by the Receiver. Here the Receiver has<\/p>\n
fixed Rs.3,205\/- as the rent. The 1st respondent is not ready to pay that<\/p>\n
rent. If the 1st respondent is prepared to pay the rent fixed by the<\/p>\n
Receiver, he will become entitled to be put in possession of the building.<\/p>\n
The fixation of Rs.1,000\/-as the rent payable by the 1st respondent, by<\/p>\n
the court below, was not proper. Pursuant to an order passed by me on<\/p>\n
14.06.07, it was reported by the counsel for the petitioner that on<\/p>\n
16.09.02 when the tenders were opened by the Receiver and<\/p>\n
Sri.Ajithkumar M.S, the highest offerer was also physically present. This<\/p>\n
means that his offer was a genuine offer. Even otherwise I do not find<\/p>\n
any reason to disbelieve what has been reported by the Receiver in<\/p>\n
Ext.P1. The building, it should be remembered is in Chalai Bazar and<\/p>\n
WPC No.12224 of 2004
\n                                     6<\/span><\/p>\n
many of the offers received were around Rs.2,000\/- per mensum as<\/p>\n
against the sum of Rs.500\/- offered by the 1st respondent.<\/p>\n
       5. The result of the above discussion is that the Writ Petition will<\/p>\n
stand allowed. Ext.P2 is set aside. It is held that the 1st respondent will<\/p>\n
become entitled for the building only if he is willing to pay a sum of<\/p>\n
Rs.3,201\/- as rent. (i.e., Rs.1\/- higher than the highest offer received by<\/p>\n
the Receiver). The court below is directed to facilitate handing over of<\/p>\n
the building to the 1st respondent subject to his right to have a fair rent<\/p>\n
in accordance with law provided he expresses his willingness to pay<\/p>\n
Rs.3,201\/- as monthly rent in writing before the court below within 30<\/p>\n
days from today. If the court below finds any technical difficulty in the<\/p>\n
matter of issuing directions to the Receiver, it is open to the 1st<\/p>\n
respondent to seek appropriate remedies from the Insolvency Court in<\/p>\n
the light of the findings contained herein.\n<\/p>\n
       The Writ Petition is allowed as above. No costs.\n<\/p>\n<\/p>\n
                                       PIUS C. KURIAKOSE, JUDGE
\nbtt<\/p>\n
WPC No.12224 of 2004
\n                        7<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court T.V.R.Fund vs Manikantan on 18 June, 2007 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C) No. 12224 of 2004(E) 1. T.V.R.FUND, KARAMANA, … Petitioner Vs 1. MANIKANTAN S\/O. KANAKA SUBHAPATHI, … Respondent 2. PRABHAKARAN NAIR, THE ASSIGNEE 3. BABU K.MATHEW, T.C.12\/187, PALATHINGAL, For Petitioner :SRI.V.N.ACHUTHA KURUP For Respondent :SRI.S.GOPAKUMARAN NAIR, SC, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-31893","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nT.V.R.Fund vs Manikantan on 18 June, 2007 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/t-v-r-fund-vs-manikantan-on-18-june-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T.V.R.Fund vs Manikantan on 18 June, 2007 - 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