1987 INSC 0473
                                      P. Raju Bai Ganga Mohan and Others

                                                           Vs

                                         Government of A. P. and Others

             Civil Appeal No. 177 and Special Leave Petition (Civil) Nos. 6070-71 of 1987

                                              (A. P. Sen, B. C. Ray JJ)

                                                      14.09.1987

                                                        ORDER

1. In these cases, a learned Singh Judge of the High Court (Waghray, J.) very rightly and properly
directed the appointment of a receiver of a cinema theatre during the final decree proceedings in a
suit for partition between co-widows having a half share therein, on being satisfied that it was just
and expedient to do so for the limited purpose of inviting offers for leasing out the same. The
petitioners in SLP Nos. 6070-71 of 1987 - Ganga Mohan, A. Pandarinath and P. Narayana - are the
outgoing lessees paying a rent of Rs. 625 per month and their lease expired on March 31, 1987. A
Division Bench (Bhaskaran, C.J. and Venkatarama Reddy, J.) however issued a direction for the
renewal of their lease for one year in terms of the agreed order by which they had undertaken to pay
increased rent of Rs. 7000 per month. Immediately thereafter, the petitioners issued a notice
repudiating their liability to pay the enhanced rent on the ground that they were statutory tenants
protected under Section 2(ix) of the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control
Act, 1960 and therefore the demand for payment of the enhanced rent of Rs. 7000 was illegal. The
learned Single Judge rightly repelled the contention on the ground that Armoor having been
declared to be a gram panchayat, it ceased to be a municipality and therefore the provisions of the
Act were not applicable to that area. Taking into account the subsequent conduct of the petitioners
in trying to repudiate their liability to pay the enhanced rent, the learned Single Judge held that it
would be just and proper to appoint a receiver. The report of the receiver shows that he has now
received a bid of Rs. 31,000 per month for the cinema theatre for a period of two years.
Accordingly, SLP Nos. 6070-71 of 1987 are dismissed. The ad interim order is vacated.

2. In view of the foregoing, leave in SLP No. 8337 of 1987 preferred by Smt. B. Raju Bai, one of
the co-widows, directed against the order of the Division Bench for the renewal of the licence of the
outgoing lessees, has to be granted. The judgment and order passed by the Division Bench dated
June 29, 1987 are set aside.

3. The High Court shall now pass appropriate orders on the report of the receiver accepting the bid
of Rs. 31,000 per month after giving the parties an opportunity of a hearing.

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