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1970 Supreme(SC) 143

SUPREME COURT OF INDIA
M. HIDAYATULLAH, C.J.I., A.N. RAY AND I.D. DUA, JJ.
Jugraj Singh and another, Appellants
Versus
Jaswant Singh and others, Respondents.
Civil Appeal No. 198 of 1967, D/-16-3-1970.
Advocates appeared
M/s. Hardev Singh, H. L. Kapoor and Dhul Chand, Advocates, for Appellants; Mr. Bishan Narain, Sr. Advocate (M/s. Sadhu Singh Bireswar Bhattacharya and Jagmohan Khanna, Advocates, with him), for Respondents

Headnote:

Punjab Redemption of Mortgages Act, 1913 – Section 9 - Specific Relief Act - Section 42 - Indian Evidence Act – Section 85 - Lands - Mortgaged - Sale deed - Power of attorney - One mortgaged certain lands in year - One, son executed a power of attorney in California, U.S.A authorising, an advocate of this Court, to sell property and to execute sale deed and present it for registration - This Power of attorney was witnessed by one Daniel E. Cooper - On strength of this document, executed sale deed in favour of respondents in this appeal - He presented it for registration and the document was registered - Deposited entire amount due under mortgage in the Collector s court and Court understand that amount is still lying there, because of the later proceedings from which this appeal arises - Collector ordered redemption of mortgage - Appellants who are the sons of original mortgagee thereupon filed a suit under S. 12 of Act - Whether possessed such a power of attorney for executing document and for presentation of it for registration – Held, It is obvious that over the years this property must have appreciated considerably in value - Intention of mortgagees is to retain property as long as they can by raising technical objections in the way of mortgagors seeking to redeem it - Further again the appellants as plaintiffs in the case joined transferees from but made no attempt to join, son of original mortgagor - Suit could be only Properly framed with all parties before Court - In Court opinion, even if was not a necessary party, he was at least a proper party - If he had been brought before court, Court would have known from him whether he had given the authority to execute document and he could have adopted the act y ratifying it again - Court are surprised to note that the learned Judge in High Court did not award costs - Normally costs should follow the event and it is not rule that costs should be left to be borne to parties - Here a case was decided against one of parties in a contentious matter and costs should have been awarded - Appeal dismissed.

Judgement Key Points

Based on the provided legal document, here are the key points:

  • The Supreme Court of India dismissed an appeal filed by the sons of the original mortgagee (Appellants) against the dismissal of their suit challenging a sale deed execution and subsequent redemption order (!) (!) .
  • The case involved a mortgage of lands in 1923, where the son of the mortgagor (Vernon Seth Chotia) executed a Power of Attorney (PoA) in California in 1961 authorizing an advocate (Sardar Kartar Singh Chawla) to sell the property and execute a sale deed (!) (!) .
  • The initial 1961 PoA was defective because it was only witnessed by a non-notary and lacked the authentication required by Section 33 of the Indian Registration Act for documents executed by persons residing abroad (!) .
  • A second PoA was executed in March 1964 before a Notary Public in California, which expressly ratified the earlier act and authorized the advocate to execute the deed and present it for registration (!) (!) (!) (!) .
  • The Court held that the second PoA, being a valid ratification, related back to the date of the original act, thereby curing the initial defect and validating the sale deed and registration (!) (!) (!) .
  • The Court relied on Section 85 of the Indian Evidence Act to presume the due execution and authentication of the document authenticated by a Notary Public (!) (!) .
  • The Court noted that the Appellants failed to join the son of the original mortgagor (Vernon Seth Chotia) as a party to the suit, which was a procedural error as he was a proper party whose ratification could have been sought (!) .
  • The suit was deemed unmeritorious as the mortgagees attempted to retain property by raising technical objections years after the mortgage, despite the property appreciating in value (!) .
  • The suit was also defective because the Appellants did not seek specific reliefs (cancellation of Collector's order or injunction) required under Section 42 of the Specific Relief Act to obtain a declaration (!) .
  • The appeal was dismissed with costs, as the High Court had erred in not awarding costs to the successful party (the respondents) (!) (!) .

Judgment

HIDAYATULLAH, C.J.I. : This is an appeal against the judgment of a learned single Judge of the High Court of Punjab dated December 14, 1966 confirming the dismissal of a suit filed by the appellants. The facts of the case are as follows:

One Bhag Singh mortgaged certain lands to Ran Jang Singh in the year 1923. On September, 6, 1961 one Vernon Seth Chotia, son of Bhag Singh executed a power of attorney in California, U.S.A authorising Sardar Kartar Singh Chawla, an advocate of this Court, to sell the property and to execute the sale deed and present it for registration. This Power of attorney was witnessed by one Daniel E. Cooper. On the strength of this document, Sardar Kartar Singh Chawla executed the sale deed on May 30, 1963 in favour of the respondents in this appeal. He presented it for registration and the document was registered. The vendees thereupon sought to redeem the mortgage and applied under S. 9 of the Punjab Redemption of Mortgages Act, 1913. They deposited the entire amount due under the mortgage in the Collector s court and we understand that the amount is still lying there, because of the later proceedings from which this appeal arises. The Collector ordered the redemption of the mortgage. The Appellants who are the sons of the original mortgagee thereupon filed a suit under S. 12 of the Act on August 7, 1963. It is necessary to refer to their petition of plaint, not with a view to finding out what they stated there, but to see what reliefs they claimed in the suit. In pare 10 of the petition of plaint, the appellants as plaintiffs stated:

"The plaintiffs pray that a decree for declaration to the effect that the defendants are neither the owners of the above mentioned land nor they have any right to get the aforesaid land redeemed as per the orders of the S. D. O. Mukatsar exercising the powers of Collector, dated the 6th August, 1963 which is illegal and against law and the plaintiffs are not bound by it and neither the defendants are entitled to take possession of the aforesaid land in accordance with that order, be passed in favour of the plaintiffs against the defendants with costs."

2. While this suit was still pending and because of the challenge to the power of attorney on the ground that it had not been properly authenticated under the law, a fresh power of attorney was executed by Vernon Seth Chotia on March 23, 1964 in favour of Sardar Kartar Singh Chawla. The second power of attorney was subscribed and sworn to before the Notary Public in and for the County of Alameda, State of California The Clerk of the Court as required by the laws of California appended a certificate that the Notary Public had duly given the certificate in acknowledgment of the execution of the power of attorney by Vernon Seth Chotia. The endorsement of the Notary Public reads:

"Subscribed and sworn to before me this 23rd day of March 1964

Betly J. Botelko

Notary Public in and for the County of Alameda, State of California"

This second power of attorney was produced in the suit and the court of first instance ordered the dismissal of the suit, because it was of opinion that the transfer in favour of the redeeming mortgagors by Vernon Chotia was thereafter flawless. Appeal in the District Court and a second appeal filed in the High Court failed. This appeal has been brought by special leave.

3. Mr. Hardev Singh in arguing the appeal referred to the provisions of S. 85 of the Indian Evidence Act which provides that a Court shall presume that every document purporting to be a power of attorney and to have been executed before and authenticated by a Notary Public was duly executed and authenticated. He contended that authentication of the power of attorney had to be in a particular form, and that it was not sufficient that a witness should have signed the document, be he a Notary Public or any other. It ought to have been signed by the persons named in S. 85 and should have been authenticated properly. He admitted that there was















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