ISSUE:
Whether the Receiver had the authority to create a new tenancy without the leave of the Court?
Whether the lease created in favor of Tata Finlay Ltd. violated the injunction order restraining the Receiver from transferring the property?
RULE:
A Receiver has no inherent power to lease property beyond three years without the Court’s permission. The authority of a Receiver is confined to what is expressly granted by the Court, and any lease beyond three years requires judicial sanction under Chapter 21 Rule 5(a) of the Calcutta High Court Original Side Rules.
A lease is a transfer of an interest in immovable property. If a Receiver, in violation of an injunction, creates a new lease, it constitutes an unlawful transfer and does not bind the rightful owner. An injunction prohibiting "transfer" includes leasing, and any lease created in contravention of such an order is legally invalid.