EVEREST COAL COMPANY (P) LTD. vs STATE OF BIHAR & ORS.

The Supreme Court held that under Order XL of the Civil Procedure Code, prior leave of the court is necessary before suing a Receiver appointed by the court, as this principle is rooted in preventing contempt of court. The court clarified that while the absence of prior leave does not affect the jurisdiction of the trial court, it does render the proceedings liable to be set aside if a decree is obtained without such leave. The court granted the appellant permission to continue his suit against the Receiver, emphasizing that the court generally grants such leave liberally unless the action is frivolous or vexatious.