SUPREME COURT OF INDIA
V.D. TULZAPURKAR AND M.P. THAKKAR, JJ.
Gambangi Appalaswamy Naidu and others, Appellants
Versus
Behara Venkataramanayya Patro, Respondent.
Civil Appeal No. 1339 of 1977
Decided on 28-8-1984.
Advocates appeared
Mr. K. Ram Kumar, Advocate, for Appellants; Mr. A. V. Rangam, Advocate for Respondent.
* L. P. A. No. 199 of 1975, D/- 16-9-1976 (Andh. Pra).
Suit property - Mortgage deeds - Legal representatives - Decreed - Original owner of suit property executed two usufructuary mortgage deeds dated in favour of first defendant, who was then a sitting tenant of that property - In mortgagor filed a suit for redemption of mortgages and obtained a preliminary decree - Subsequently, mortgagor died and respondents were brought on record as his legal representatives - Respondents filed an application for passing a final decree by way of ascertainment of amount due and for delivery of possession upon deposit of entire dues so ascertained - Inter alia appellants contended that even after depositing the entire amount found due to them no decree directing delivery of actual or physical possession in favour of respondents should be passed but delivery of symbolical possession alone should be ordered inasmuch as appellants possession of suit property as a tenant or lessee could not be disturbed - In other words, appellants contended that on redemption original relationship of landlord and tenant would revive which needed to be protected - Whether upon redemption of a usufructuary mortgage a tenant-mortgagee could be directed to deliver actual or physical possession of mortgaged property to lessor-mortgagor? - Whether there was an implied surrender of lessees rights when usufructuary mortgage was executed in his favour by lessor-mortgagor - Whether on redemption physical possession is to be delivered or symbolical possession is to be delivered to mortgagor – Held, It may be noted that last portion of document is equivocal in that it does not mention whether on redemption physical possession is to be delivered or symbolical possession is to be delivered to mortgagor - But under the terms of deed one thing is clear that during currency of mortgage the liability to pay rent to lessor-mortgagor (albeit to be discharged by adjustment) is kept alive - If anything, such a term clearly runs counter to any implied surrender of lessees rights - Secondly, there is no term fixed for redemption of mortgage property which means that it was open to mortgagor to redeem mortgage at any time that is to say even within a very short time and if that be so, would a sitting tenant cultivating the lands - Court are of view that only effect of execution of usufructuary mortgage deeds in this case was that lessees rights were kept in abeyance and they revived upon redemption of mortgage – Court therefore, allow appeal, set aside impugned judgments of High Court and restore the direction given by learned Additional District Judge that the respondents are not entitled to delivery of physical possession - Respondents will pay cost of the appeal to appellants - Appeal allowed
JUDGMENT
TULZAPURKAR, J.:—The short question involved in this appeal is whether upon redemption of a usufructuary mortgage a tenant-mortgagee could be directed to deliver actual or physical possession of the mortgaged property to the lessor-mortgagor? By reason of the grant of a limited special leave the appeal has been confined to that question.
2. Facts relevant to the question may be stated : One Behara Audinarayana Patro, the original owner of suit property executed two usufructuary mortgage deeds dated 30-8-1939 and 25-8-1942 in favour of the first defendant Sambangi Thavitinaidu, who was then a sitting tenant of that property. In 1951 the mortgagor filed a suit for redemption of the mortgages and obtained a preliminary decree on 31-12-1952. Subsequently, the mortgagor died and the respondents were brought on the record as his legal representatives. On 21-10-1963 the respondents filed an application for passing a final decree by way of ascertainment of the amount due and for delivery of possession upon deposit of entire dues so ascertained. The application was resisted by the first defendant and other defendants (the appellants before us) on several grounds. Inter alia the appellants contended that even after depositing the entire amount found due to them no decree directing delivery of actual or physical possession in favour of the respondents should be passed but delivery of symbolical possession alone should be ordered inasmuch as the appellants possession of the suit property as a tenant or lessee could not be disturbed. In other words, the appellants contended that on redemption the original relationship of landlord and tenant would revive which needed to be protected. The learned District Munsif, Parvatipuram took the view that the relationship of landlord and tenant had ceased to subsist after the mortgages came into existence, that the mortgage-bonds did not provide that the said relationship would be restored or revived upon redemption and that therefore the respondents were entitled to delivery of physical possession upon their depositing the entire dues payable to the appellants. The tenant-mortgagees (the defendants) preferred an appeal against the order of the learned District Munsif and the learned Additional District Judge Srikarulam who heard the appeal took the contrary view relying upon a decision of Andhra Pradesh High Court in Varada Bongar Raju v. Kirthali Avatharam, AIR 1965 Andh Pra 86 and held that the defendants-mortgagees were sitting tenants of the mortgaged property at the time of the execution of the mortgage-deeds, that there was nothing in those deeds to suggest that their rights as lessees were extinguished either by merger or implied surrender, that the landlord-tenant relationship continued to exist after termination of mortgagor-mortgagee relationship and therefore the respondents were not entitled to delivery of physical possession, he, therefore, allowed the appeal.
3. The respondents preferred a second appeal to the Andhra Pradesh High Court and the learned single Judge relying upon a subsequent decision in P. Satyanarayana v. Janardhan Chetty, ILR (1967) Andh Pra 1341 which had distinguished the earlier decision, reversed the view of the learned Addl. District Judge and restored the decree passed by the District Munsif. The learned Judge took the view that the question whether the relationship of landlord and tenant would subsist even after the execution of the usufructuary mortgage depended upon the intention of the parties to be gathered from the terms of the mortgage transaction and held that on the terms of mortgage-deeds there was no doubt that the landlord-tenant relationship had ceased to exist after the relationship of mortgagor and mortgagee came into existence and the mortgage bonds had not specifically provided that the landlord and tenant relationship would be restored after the redemption of the mortgages. A Letters Patent appeal preferred by the tenant-mortgagees to the D
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