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1978 Supreme(SC) 14

SUPREME COURT OF INDIA
M.H. BEG, C.J.I., P.N. BHAGWATI, V.R. KRISHNA IYER, S. MURTAZA FAZAL ALI, P.N. SHINGHAL, JASWANT SINGH AND V.D. TULZAPURKAR, JJ.*
Pathumma and others, Appellants
Versus
State of Kerala and others, Respondents.
Civil Appeals Nos. 420 and 442-445 of 1973
Decided on  16-1-1978.
AND
(1) Civil Appeal No. 420 of 1973.
(2) Civil Appeals Nos. 442-445 of 1973.
K. M. Kunhahammad etc. etc., Appellants
Versus
State of Kerala and others, Respondents.
Advocates appeared
Mr. T. S. Krishnamoorthy Iyer, Sr. Advocate (M/s. S. B. Saharya, Mr. K. Ram Kumar and Mr. V. B. Saharya Advocates with him), for Appellants in C.A. Nos. 420 and 442-445 of 1973; Mr. V. A. Sayed Muhamed, Sr. Advocate (In C.A. No. 420 of 1973) (Mr. K. M. K. Nair, Advocate with him) (for No. 1) in all Appeals and (for No. 2) in C. A. Nos. 442, 443 and 445 of 1973; Miss Lilly Thoms, Advocate (for Nos. 3-10) in C. A. No. 445 of 1973, for Respondents.

Advocates:
K.M.NAYAR, K.RAM KUMAR, LILY THOMAS, S.B.SAHARYA, T.S.KRISHNAMURTHY IYER, V.A.SEYID MUHAMMAD, V.B.SAHARYA

Headnote:

Debt Relief Act. 1970 - Sec. 20 - Constitution of India – Article 19 - Immovable properties – Possession for land - Before however taking up the other two points raised by counsel for the appellants which were pressed before us in this Court it may be necessary to set out the approach which a Court has to make and the principles by which it has to be guided in such matters. Courts interpret the constitutional provisions against the social setting of the country so as to show a complete consciousness and deep awareness of the growing requirements of the society, the increasing needs of the nation, the burning problems of the day and the complex issues facing the people which the legislature in its wisdom, through beneficial legislation seeks to solve. The judicial approach should be dynamic rather than static, pragmatic and not pedantic and elastic rather that rigid - It will also be necessary to consider in that connection whether the restraint caused by the law is more than was necessary in the interests of the general public – Held, Now sub-sec. (1) of S. 20 provides that if a decree-holder is the purchaser at a court sale, the judgment-debtor (or his legal representative) may deposit one-half of the purchaser money together with the costs of execution (where the costs were not included in the purchase money) and apply to the court within six months from the date of commencement of the Act to set aside the sale, and the court shall set aside the sale and make an order for the payment of the balance of the purchase money in ten equal half-yearly instalments together with accrued interest on the balance till the date of payment of each instalment at six per cent per annum. As against this, sub-sec. (3) provides that if the decree-holder is not the purchaser, the judgment-debtor (or his legal representative) may deposit the purchaser money and make an application for setting aside the sale and the court shall set aside the sale. The treatment to a decree-holder purchaser is therefore different and is less advantageous than the treatment to a purchaser who is not a decree-holder. The decree-holder purchaser is treated as a different class, for it is well known that decree-holders very often exploit their debtors in many ways and sales to them are generally viewed with suspicion and disfavour so much so that, as has been expressly provided in O. XXI, R. 72 of the Code of Civil Procedure, it is not even permissible for a decree-holder to bid for or purchase the property without the express permission of the Court. The decree-holder purchaser has thus rightly been treated as a class by him-self and that classification obviously has the object of benefiting the agriculturist judgment-debtor by permitting him to deposit only half the purchase money and paying the balance in instalments. It cannot therefore be said that the impugned provision violates Article 14 of the Constitution on that account. There is also justification for treating an auction-purchaser at a court sale differently from a bona fide alienee of the auction-purchaser who derived his rights before the date of publication of the Kerala Agriculturists Debt Relief Bill, 1968, in the State Gazette. Such an alienee of the auction-purchaser could not possibly have been aware of the hazards of purchasing the property of an indebted agriculturist at the time of the purchase, and it is futile to contend that if the Legislature has protected his interest by an express provision in sub-s. (6) of S. 20, it has thereby made a hostile discrimination against the auction-purchasers as a class - Appeals dismissed

JUDGMENT

S. M. FAZAL ALI, J. (for himself and on behalf of M. H. Beg, C.J., V. R. Krishna Iyer and Jaswant Singh JJ.) :— These appeals by certificate granted by the High Court of Kerala involve a common question of law containing a challenge to the constitutionality of the Kerala Agriculturists Debt Relief Act. 1970 (Act II of 1970) (hereinafter referred to in short as the Act). The appellants have assailed particularly Sec. 20 of the Act which entitles the debtors to recover the properties sold to purchasers in execution of the decree passed in liquidating the debt owned by the agriculturists.

2. As the five appeals involve common questions of law we propose to decide them by one common judgment.

3. Section 20 of the Act was assailed before the High Court on three grounds, namely:

1. That the Act was beyond the legislative competence of the State Legislature and did not fall within Entry 30 of the State List.

2. That the provisions of S. 20 and the sub-sections thereof were violative of Art. 19 (1) (f) of the Constitution of India inasmuch as they sought to deprive the appellants of their right to hold property.

3. That sub-secs. (3) and (6) of S. 20 of the Act were violative of Art. 14 of the Constitution of India inasmuch as the stranger decree-holder was selected for hostile discrimination whereas a bona fide alienee who stood on the same footing as the stranger decree-holder was excepted from the operation of the Act.

4. Mr. Krishnamoory Iyer, learned counsel for the appellants has not pressed point No. 1 relating to the legislative competence of the legislature and has fairly conceded that in view of the decision of this Court in the case of Fetehchand Himatlal v. State of Maharashtra, (1977) 2 SCR 828 the constitutionality of the Maharashtra Debt Relief Act, 1976 which contained similar or rather harsher provisions as the Act was upheld by this Court. In these circumstances, it will not be necessary for us to examine this question any further.

5. Before however taking up the other two points raised by counsel for the appellants which were pressed before us in this Court it may be necessary to set out the approach which a Court has to make and the principles by which it has to be guided in such matters. Courts interpret the constitutional provisions against the social setting of the country so as to show a complete consciousness and deep awareness of the growing requirements of the society, the increasing needs of the nation, the burning problems of the day and the complex issues facing the people which the legislature in its wisdom, through beneficial legislation seeks to solve. The judicial approach should be dynamic rather than static, pragmatic and not pedantic and elastic rather that rigid. It must take into consideration the changing trends of economic thought, the temper of the times and the living aspirations and feelings of the people. This Court while acting as a sentinel on the qui vive to protect fundamental rights guaranteed to the citizens of the country must try to strike a just balance between the fundamental rights and the larger and broader interests of society, so that when such a right clashes with the larger interest of the country it must yield to the latter. Emphasising the rule of Courts in such matters this Court in the case of Jyoti Pershad v.Administrator for the Union Territory of Delhi, (1962) 2 SCR 125 at p. 148 observed as follows :-

"Where the legislature fulfils its purpose and enacts laws, which in its wisdom, is considered necessary for the solution of what after all is a very human problem the tests of "reasonableness" have to be viewed in the context of the issues which faced the legislature. In the construction of such laws and particularly in judging of their validity the Courts have necessarily to approach it from the point of view of furthering the social interest which it is the purpose of the legislation to promote, for the Courts are not, in these matters, functioning as it were in va


















































































































































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