Sudhir Kulshreshtha property in which receiver is appointed is sold during the pendency of suit in the highcourt between the trustees by one of the legal heirs. I am the tenant facing eviction by new alleged purchaser. I want to challenge landlordship & ownership therefore require the judgement to prove that receiver interim order is automatically restored on restoration of suit and therefore I am paying rent to the receiver of the trust under whom I am the tenant and trust is irrevocable and cannot be sold by the legal heir of one of the trustee ( defendant) . I am facing eviction suit in small causes court and receiver was appointed in dispute between the trustees ..
and matter was pending in high court
Hello Sudhir,
After going through your query, I understand your concern regarding the proceeding of eviction that you are facing and I would like to answer your query to make things clear for you.
I would like to provide you with some legal points that might help in the argument to support your case.
As you have mentioned, the receiver was appointed by the court during a pending suit between the trustees, so the authority of the receiver over the property is only valid till the court removes or replaces them. This can be related to Order XL, Rule 1 of the Code of Civil Procedure, 1908, as this says that once a receiver has been appointed by the court for the management of the property during the litigation, then they can retain the property just for the sake of the preservation of its status quo.
If there is any sale by the legal heir without the approval of the court, then this will not confer the validation of the ownership to a third party as the property is under the administration of the receiver appointed by the court.
In your case, there is a violation of the control of the court over the property as the sale took place neither with the court’s approval nor with the consent of the receiver. This can be related to the case of Kanhiyalal v. Dr. D.R. Banaji, AIR 1958 SC 725 as it justifies the fact that the role of the receiver is to protect the interest of the parties and ensure that the court’s directive is not being opposed.
Additionally, if the trust is irrevocable and the trust deed expressly prohibits any sale. By the personal custodian or legal heir It also supports your contention that under the Indian Trust Act, 1882, Section 56, trust assets are strengthened by the payment of rent which cannot be disposed of contrary to the provisions of the trust. Because it demonstrates compliance with court orders and fiduciary requirements.
By considering all this, I would like to suggest you file an application in the local court of your area arguing the new party’s ownership claim on the basis of the authority of the receiver and the restriction on the sale of the property within the trust.
I hope I was able to make things clear for you. If you need further clarification, then please feel free to connect with me on LinkedIn. (www.linkedin.com/in/pankhuri-rastogi-9221b2289)
Thank You.
