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1964 Supreme(SC) 311

SUPREME COURT OF INDIA
18th November 1964
K. SUBBA RAO, RAGHUBAR DAYAL AND N. RAJAGOPALA AYYANGAR, JJ.
Gyarsi Bai and others, Appellants
Versus
Dhansukh Lal and others, Respondents.
Civil Appeal No. 257 of 1963.
Advocates appeared
Mr. B. D. Sharma, Advocate, Mr. A. V. Viswanatha Sastri, Senior Advocate, for Appellants; M/s. Rameshwar Nath, S. N. Andley and P. L. Vohra, Advocates of M/s. Rajinder Narain and Co. with him, for Respondents.

Advocates:
A.V.VISHWANATHA SASTRI, B.D.SHARMA, CO., M.S.R.NATH, P.L.VOHRA, RAJINDAR NARAIN, S.N.ANDLEY

Headnote:Usufructuary mortgage — liability to account - PROFITS BY MORTGAGEE FROM MORTGAGED PROPERTY

       -as regards profits received by the mortgagee from the mortgaged property before the preliminary decree, if no credit is given by the mortgagee, the mortgagor must raise the plea before the preliminary decree is passed. If he fails to raise the plea, he would be barred by the principles of res-judicata from raising the same, as the said matter should be deemed to have been a matter was directly and substantially in issue in the suit up to that stage. But, as held in Gyarsi Bai v. Dhansukh Lal, AIR 1965 SC 1055, the position is different as regards the net profits realised by the mortgagee subsequent to the passing of the preliminary decree, the court must give credit for them to the mortgagor in fixing his liability.

       

Judgment

SUBBA RAO, J. :

This appeal by special leave is directed against the judgment of a Division Bench of the Rajasthan High Court in S. B. Civil Revision No. 181 of 1956.

2. The plaint-schedule properties originally belonged to one Noor Mohammad, his wife and son. On Sept. 14, 1936, they mortgaged the said properties with possession to B. F. Marfatia for a sum of Rs. 25,000. On February 22, 1938, the said mortgagors executed a simple mortgage in respect of the same properties to one Novat Mal for Rs. 5,000. On December 21, 1942, Radha Kishan, Har Prasad and Pokhi Ram acquired the equity of redemption in the said properties in an auction sale held in execution of a money decree against the mortgagors. On February 14, 1950, and March 13, 1950 Seth Girdhari Lal, the husband of Appellant No. 1 herein, purchased the mortgagee rights of Novat Mal and Marfatia respectively. On May 1, 1950, Girdhari Lal was put in possession of the mortgaged properties. On July 22, 1950, Respondents 9 to 11 purchased equity of redemption of the mortgaged properties from Radha Kishan: Har Prasad and Pokhi Ram. On August 10, 1950, Girdhari Lal instituted Civil Suit No. 739 of 1950 in the Court of the Senior Subordinate Judge, Ajmer, for enforcing the said two mortgages. In the suit he claimed Rs. 48,919-12-6 as the amount due to him under the said two mortgages. On April 25, 1953, the Senior Subordinate Judge, Ajmer, gave a preliminary decree in the suit for the recovery of a sum of Rs. 34,003-1-6 with proportionate costs and future interest; he disallowed interest from September 14, 1936, to March 13, 1950, on the mortgage of Rs. 25,000. The plaintiff-mortgagee preferred an appeal being Civil Appeal No. 71. of 1953, to the Judicial Commissioner, Ajmer, against the said decree in so far as it disallowed interest to him. The defendants preferred cross objections in respect of that part of the decree awarding costs against them. On July 25, 1953, the defendants filed an application under O.XXXIV, R. 5(1) of the Code of Civil Procedure, seeking permission to deposit the decretal amount in court and praying that possession of the properties may be directed to be delivered to them and also for directing the decree-holder to render accounts of the profits of the mortgaged properties received by him. On July 29, 1953, the respondents deposited Rs. 35,155-2-6 in the Trial Court. On Aug. 17, 1953, the decree-holder filed objections to the said deposit on the ground that it was much less than the decretal amount. On August 27, 1953, the Trial Court made an order permitting the decree-holder to withdraw the said amount with the reservation that the question as to what was due under the decree would be decided later. On Aug. 25, 1954, both the appeal of the decree-holder and the cross-objections of the defendants were dismissed. On Dec. 7, 1954, the defendants filed an application in the Trial Court for the determination of the amount due under the decree and for directing the decree-holder to render accounts of all the realizations from the mortgaged properties. On March 14, 1955, the SC granted special leave to the decree-holder for preferring an appeal against the judgment of the Judicial Commissioner dismissing Civil Appeal No. 71 of 1953. On February 15, 1956, the Trial Court dismissed the application filed by the defendants for directions on the ground that the mortgage deed had merged in the preliminary decree and that the said decree contained no directions to the plaintiff to render accounts. On February 29, 1956, the defendants applied to the Judicial Commissioner, Ajmer, under S. 152 of the Code of Civil Procedure for amending the preliminary decree by including therein a direction against the plaintiff for rendition of accounts in respect of the profits received by him from the mortgaged properties. On April 12, 1956, the Judicial Commissioner dismissed the said application. On April 25, 1956, the defendants filed a revision petition against the order

















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