Rai Pyari Lal Doss Bahadur and another vs Jogesh Chandra Ghosh and others

On hearing the learned advocates on both sides, we are of the opinion that the order made by the learned Subordinate Judge is not one which should be interfered with by this Court in the exercise of its powers under S. 115, Civil P. C. The right of a receiver to settle claims and compromise actions with the sanction of the Court cannot be disputed; of course, if the Court sanctions any such settlement without proper reason, it would amount to an abuse of its jurisdiction, and the action of the Court can be questioned before the appellate or revisional tribunal. On the facts of this case, we are unable to hold that the Court below has really abused its jurisdiction in sanctioning the compromise recommended by the receiver. In fact, the majority of the cosharers have either agreed to or not opposed the terms of the compromise and the petitioners, as stated in the order of the Court below, only represent a three-anna share in the firm. The result is that this rule is discharged. We make no order as to costs in this Court.