IMPORTANT POINT
A person having annual rental income of Rs. 1200 cannot be said to be having income less than Rs. 1200 so as to deemed to be a debtor within meaning of Section 3(3) of the Tamil Nadu Debt Relief Act.

Headnote:Tamil Nadu Debt Relief Act, 1979-Section 3(3)-Debtor-Not less than Rs. 1200, meaning of-Respondent executed usufructuary mortgage-Application to declare that debt had completely been discharged under Debt Relief Act-Respondent had rental income of Rs. 1200 per annum-Appellant s plea that respondent not a debtor within meaning of Section 3(3) by virtue of exclusion contained in proviso (iii)-High Court holding rental income should be more than Rs. 1200 per annum to attract exclusion under proviso (iii)-Not correct-When statute uses expression not less than a particular figure then that figure is minimum-Respondent having annual rental income of Rs. 1200 covered by exclusion contained in proviso (iii)-He is not debtor-Not entitled to benefit of Act.
Held : When the statute uses the expression not less than a particular figure then that figure is the minimum. If the annual rental value of the property which is owned by a debtor is not less than Rs. 1,200/- then he would be covered under sub-section (iii) of proviso to Section 3(3) and he would not be deemed to be a debtor. Not less than 1,200/- means that the minimum aggregate annual rental value should be at least 1,200/-. If the aggregate rental value was less than 1,200/- only then the respondents would have been regarded as not being covered by the proviso to Section 3(3). The High Court, in our opinion, was therefore, not correct in arriving at the conclusion that even though the annual rental value was Rs. 1,200/- the respondents were entitled to the benefit of the said proviso and would be regarded as debtors within the meaning of that Act. (Paras 8 and 12)

ORDER

The only question which arises for consideration in this appeal is as to what is the meaning of the expression "not less than Rs. 1200" occurring in the Tamil Nadu Debt Relief Act, 1979 (hereinafter referred to as `the said Act ).

2. The father of the respondent had executed a usufructuary mortgage deed in respect of a property in favour of the appellant herein for a sum of Rs. 10,000/- on 25.12.1967. This property was given on lease to some tenants for more than 10 years. Under the provisions of the said Act the respondents filed an application seeking direction that the usufructuary mortgage had been completely discharged. The respondents claimed to be debtors within the meaning of the Act.

3. The appellant herein contended that the respondents could not be regarded as debtors within the meaning of Section 3(3) of the said Act inasmuch as the rental value of the respondent s property was as much if not more than what is required under the Act. The District Munsif dismissed the respondents application which was affirmed in appeal. In second appeal however the High Court came to the conclusion that the respondents were debtors within the meaning of Section 3(3) of the Act. It came to the conclusion that the annual rental value of Rs. 1200 was not enough to deprive them of the benefit of being regarded as debtors.

4. The admitted fact being that the annual rental value of the property belonging to the respondents being Rs. 1200/- the question is whether the respondents can be regarded as debtors. The relevant provision of Section 3(3) of the said Act reads as under:- "3(3) `debtor means any person from whom any debt is due :

Provided that a person shall not be deemed to be a debtor if he,

(i) has in both the financial years ending on the 31st March, 1977 and the 31st March, 1978, been assessed to-

(a) income-tax under the Income-tax Act, 1961 (Central Act XLIII of 1961) or under the Income-tax law in force in any foreign country; or

(b) agricultural income-tax under the Tamil Nadu Agricultural Income-tax Act, 1955 (Tamil Nadu Act V of 1955) or under any law in force in any other State or Union Territory in India; or

(ii) has, in both the financial years ending on the 31st March, 1977 and the 31st March, 1978, been assessed to sales tax under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act I of 1959) or under the Central Sales Tax Act, 1956 (Central Act LXXIV of 1956); or

(iii) has in all the four half-years immediately preceding the 1st March, 1978 been assessed to property or house tax in respect of buildings or lands other than agricultural lands, under the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act V of 1920), the Madras City Municipal Corporation Act, 1919 (Tamil Nadu Act IV of 1919), the Madurai City Municipal Corporation Act, 1971 (Tamil Nadu Act XV of 1971), the Tamil Nadu Panchayats Act, 1958 (Tamil Nadu Act XXXV of 1958), the Cantonments Act, 1924 (Central Act II of 1924) or any law governing municipal or local bodies in this State or in any other State or Union Territory in India, provided that the aggregate annual rental value of such buildings and lands whether let out or in the occupation of the owner, is not less than rupees one thousand and two hundred."

5. On a careful reading of the said provision, it appears that any person from whom debt is due is regarded as a debtor. The proviso to sub-section (3) excludes certain categories of persons from being regarded as debtors. According to sub clause (iii) a person who owes money shall not be deemed to be a debtor if he has in all the four half-years preceding 1st March, 1978 been assessed to property or house tax provided that the aggregate annual value of such buildings or lands is not less than Rs. 1200/-. Owner of a property is thus sought to be excluded from the definition of debtor, but not every owner is excluded as persons who own property having

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2000 Supreme(SC) 339

IMPORTANT POINTA person having annual rental income of Rs. 1200 cannot be said to be having income less than Rs. 1200 so as to deemed to be a debtor within meaning of Section 3(3) of the Tamil Nadu Debt Relief Act.

Cases Referred (6)

IMPORTANT POINT
A person having annual rental income of Rs. 1200 cannot be said to be having income less than Rs. 1200 so as to deemed to be a debtor within meaning of Section 3(3) of the Tamil Nadu Debt Relief Act.