Prithipal Surindersingh Chadha vs Mr. Jitenderpal Singh Chadha — Bombay HC (2025) — LawSathi Research

Prithipal Surindersingh Chadha vs Mr. Jitenderpal Singh Chadha — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Balance of the royalty amount of Rs.11,51,070/- with accrued interest, after deducting the Court Receiver's costs, charges and expenses and the cost of its report as per prayer clauses (b) and (c), directed to be made over to Mr. Jitenderpal Singh Chadha, the depositor.

Issue for consideration

To whom should the royalty amount with accrued interest lying with the Court Receiver be transferred — the Official Assignee (on the footing that the insolvent Judgment Debtor's assets vest in him) or the depositor? +1 more

Court's answer

As the Judgment Debtor had been declared insolvent, his assets vested in the Official Assignee under Section 17 of the Presidency Towns Presidency Act, 1909, and the Court accordingly directed that the amount of Rs.11,51,070/- be deposited in the account of the Official Assignee.

Ratio / Principle

While the Judgment Debtor remained declared insolvent, the Court Receiver's request to deduct Rs.13,276/- towards costs, charges and expenses and Rs.5,000/- as cost of its report from the royalty amount could not be granted; any such application was to be made before the Official Assignee/Insolvency Court.

Key takeaways

Upon the Official Assignee tendering the order dated 18 June 2019 in Insolvency Rule Nisi No.6 of 2018 showing that the Judgment Debtor's insolvency had been recalled and the Official Assignee discharged, the Court directed that the amount of Rs.11,51,070/- less the deductions under prayer clauses (b) and (c) be deposited in the account of the person who had deposited the royalty amount — thereby superseding the earlier direction to deposit the amount with the Official Assignee.ratio¶25
Having recorded that the royalty amount had been deposited by Mr. Jitenderpal Singh Chadha, the Court directed that the balance amount with accrued interest, after deducting the aforesaid two payments (the Court Receiver's costs/charges/expenses and the cost of its report), be made to Mr. Jitenderpal Singh Chadha.ratio¶27

Detailed headnote1 paragraphs

Bombay High Court (Abhay Ahuja, J.) disposed of Court Receiver's Report No. 167 of 2025 in Execution Application No. 765 of 2015 concerning transfer of a royalty amount of Rs.11,51,070/- with accrued interest lying with the Court Receiver. As the Judgment Debtor had been declared insolvent, the Court initially directed — invoking Section 17 of the Presidency Towns Presidency Act, 1909 (assets of the Judgment Debtor vesting in the Official Assignee) — that the amount be deposited in the Official Assignee's account, and declined the Court Receiver's request to deduct Rs.13,276/- towards its costs, charges and expenses and Rs.5,000/- as cost of its report, holding that such application lay before the Official Assignee/Insolvency Court. However, when the Official Assignee tendered an order dated 18 June 2019 in Insolvency Rule Nisi No.6 of 2018 (R.I. Chagla, J.) recording that the insolvency had been recalled and the Official Assignee discharged, the Court redirected that the amount, less the deductions under prayer clauses (b) and (c), be paid to the depositor, Mr. Jitenderpal Singh Chadha, together with accrued interest.

1-CRR-167-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

Digitally signed by KANCHAN KANCHAN PRASHANT PRASHANT DHURI DHURI Date: 2025.09.19 16:34:45 +0530

COURT RECEIVER’S REPORT NO. 167 OF 2025

IN

EXECUTION APPLICATION NO. 765 OF 2015

Fullerton India Credit Company Ltd. … Applicant In the matter between : Prithipal Surindersingh Chadha … Claimant

Versus

Jitenderpal Singh Chadha … Respondent

Mr. Swayam Chopda, OSD, Court Receiver, present. Mr. Gajanan Surve, Master (Adm.), present. Mr. Laxman Madgundi, Clerk, present.

Mr. Dinesh Morey, Clerk, representative of the Official Assignee, present.

CORAM : ABHAY AHUJA, J. DATE : 19 SEPTEMBER 2025

P.C. :

This Court Receiver’s Report has been listed before this Court seeking directions to transfer the royalty amount alongwith accrued interest lying with the Court Receiver.

Mr. Swayam Chopda, OSD to the Court Receiver’s Office, submits that the royalty amount had been deposited by the Judgment Debtor who has been declared insolvent and that this Court may pass appropriate directions with respect to the same. Since the Judgment

Kanchan Dhuri 1/3

1-CRR-167-2025.doc

Debtor had been declared insolvent, in accordance with Section 17 of the Presidency Towns Presidency Act, 1909, the assets of the Judgment Debtor vest in the Official Assignee and that the amount of Rs.11,51,070/- ought to be deposited in the account of Official Assignee.

Ordered accordingly.

However, as regards a deduction of Rs.13,276/- from the said amount as costs, charges and expenses of the Court Receiver and the cost of the report of Rs.5,000/- requested to be permitted to be deducted from the said amount of Rs.11,51,070/- the same cannot be granted, in as much as the Judgment Debtor has been declared as insolvent and such an Application is to be made before the Official Assignee/Insolvency Court.

The Court Receiver’s Report is accordingly disposed with above directions.

However, just when this order has been dictated, Mr. Dinesh Morey, Clerk on behalf of the Official Assignee appears and tenders copy of an order dated 18^th June 2019 in Insolvency Rule Nisi No.6 of 2018 passed by this Court (Coram : R.I. Chagla, J.) and submits that the insolvency of the Judgment Debtor who had deposited money has been recalled and the Official Assignee has been discharged.

Kanchan Dhuri 2/3

1-CRR-167-2025.doc

If that be the case, then let the amount of Rs.11,51,070/- less amount of costs charges and expenses and costs of the report as per prayer clauses (b) and (c) be deposited in the account of the person who had deposited the royalty amount.

This Court is informed that the said royalty amount has been deposited by Mr. Jitenderpal Singh Chadha.

Accordingly, let the balance amount with accrued interest after deducting the aforesaid two payments be made to Mr. Jitenderpal Singh Chadha.

The Court Receiver’s Report accordingly stands disposed as

above.

(ABHAY AHUJA, J.)

Kanchan Dhuri 3/3