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 Nara