SUPREME COURT OF INDIA
23rd October 1952
MAHAJAN, CHANDRASEKHARA AIYAR AND BHAGWATI JJ.
Kamakshaya Narayan Singh - Appellant
Versus
Chohan Ram and another-Respondents.
Civil Appeal No. 73 of 1950.
Advocates appeared
Shri S. N. Mukherjee, Advocate, instructed by Shri Ganpat Rai, Agent - for Appellant; Shri Gangacharan Mukherjee and Shri A. N. Sinha, Advocates, instructed by Shri R. R. Biswas, Agent-for Respondent J.
– A mortgagor in possession may grant a lease conformable to usage in the ordinary course of management, for instance he may create a tenancy from year to year in the case of agricultural lands or from month to month in the case of houses. But he is not competent to grant a lease on unusual terms or to alter the character of the land or to authorise its use in a manner or for a purpose different from the mode in which he himself had used before he granted the mortgage. This view of the law as it stood before the enactment of Section 65A was approved in Kamakshya Narayan Singh v. Chohan Ram, AIR 1952 SC 401 = 1953 SCR 108 and the Supreme Court held that the question whether the mortgagor in possession has power to lease the mortgaged property must be determined with reference to the authority of the mortgagor as thebailiff or agent for the mortgagee to deal with the property in the usual course of management – see decision in Mangru Mahto v. Thakur Taraknathji Tarkeshwar Math, AIR 1967 SC 1390 = 1967(2) SCWR 71.
Judgment
Bhagwati J.- The question that arises for our consideration in this appeal is whether prior to the enactment of S. 65-A, T. P. Act in 1939 a mortgagor in possession had the power to grant a permanent lease of the mortgaged property so as to bind the mortgagee.
2. One Raja Nilkanth Narian Singh was the owner of Gadi Sirampur and he executed on 1-8-1914 a simple mortgage of Gandi Sirampur in favour of the Chota Nagpur Banking Association Limited. In 1920 the Bank filed a suit against his son Wazir Narain Singh to enforce the mortgage security and obtained a mortgage decree on 29-11-1921. The Bank purchased as third share of Gadi Sirampur in execution of that decree on 28-10-1922. Proceedings were taken to set aside this sale. During the pendency of these proceedings it appears that on 5-11-1925, Wazir Narian Singh granted a permanent lease of four villages Nawadih, Koldih, Pandna and Chihutia by a registered Patta to one Hiraman Ram who was the Manager and Karta of his joint Hindu family. The permanent lease was taken by him in his own name and in the name of his son Chohan Ram. An agreement was subsequently arrived at between the Bank and Wazir Narain Singh that if Wazir Narain Singh paid to the Bank on or before 16-8-1926 the sum of Rs. 1,10,631-4-0 the sale would be set aside. Wazir Narain Singh executed on 14-8-1926 a mortgage of Gadi Sirampur in favour of the Manager of the Court of Wards in charge of the Plaintiff s estate during his minority to secure repayment of a sum of Rs. 1,47,000/- and out of the same satisfied the dues of the Bank and the sale in favour of the Bank was accordingly set aside.
The Plaintiff through the Manager of the Court of Wards filed a suit on 4-2-1929 to enforce this mortgage and he impleaded as co-defendants in that suit Hiraman Ram as Defendant 20 and his father Dilo Ram as Defendant 19. A final decree for sale was passed on 18-9-1931, and the Plaintiff purchased Gadi Sirampur at the auction sale held in execution of this decree on 6-4-1935. Delivery of possession was obtained by the Plaintiff through the Court on 16-2-1936. Dilo Ram died after the mortgage decree but Hiraman Ram and his son Chohan Ram continued in actual possession of the disputed villages and the Plaintiff therefore filed on 16-11-1939 the suit, out of which this appeal arises, in the Court of the Additional Subordinate Judge of Hazaribagh against Hirman Ram and Chohan Ram, Defendants 1 and 2 for khas possession of these villages. The Plaintiff contended that he was subrogated to the position of the Bank, that the decree which had been passed in the mortgage suit was binding on the Defendants, that he was the auction purchaser in execution of that mortgage decree and that the Patta being subsequent to the Plaintiff s mortgage thus came to an end and he was entitled to recover khas possession from the Defendants Defendant 2 filed his written statement contesting the Plaintiff s claim. He deemed that the plaintiff was subrogated to the position of the Bank. He contended that the decree in the mortgage suit was not binding on him as he was not a party to that suit. He further contended that the patta could not be put an end to by the auction sale of the mortgaged property. Defendant 1 filed a separate written statement. He denied that he was the Manager and Karta of the joint Hindu family. He also contended that there was a partition amongst the members of the joint family within a year after their possession of the properties in suit and the properties had been allotted at that partition to Defendant 2.
3. The trial Court held that the Plaintiff was subrogated to the position of the Bank. It also held that Defendant 1 was the Manager and Karta of the joint family and that Defendant 2 was fully represented in the mortgage suit, that the decree in the mortgage suit was binding on the Defendants and that the Plaintiff was entitled to recover possession of the said properties and mesne profits from the Defendants. The Defenda
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