SUPREME COURT OF INDIA
A.N.Ray : S.M.Sikri
Luka Mathai
Versus
Neelakanta Iyer Subramonia Iyer
Case No. : 542 of 1967
Date of Decision : 5/26/70
Travancore Revenue Recovery Regulation (Regulation 1) of 1068 – Sections 32, 59 – Bypothecation bond – Auction – Appeal by certificate granted by the High court of Kerala is directed against its judgment and decree reversing the judgment and decree of the Trial court and dismissing the suit of the original plaintiff, appellant before court. – Plaintiff executed a bypothecation bond in favour of the Travancore government in respect of a loan of Rs. 6,000.00 – Another bond was executed in respect of a further loan of Rs. 4,400.00. – Plaintiff executed another hypothecation bond in favour of the father of Neelakanta Iyer Subramonia Iyer, respondent before us. – In the government Gazettes, under Paragraph 6 reference is made to the arrears of Rs.4,193 chs. 19 cs.9 plus interest under the special loan to be paid by Luka Mathai of Pallithanathu, Kottayam Taluk, and the sale of 97 acres of nilam comprised in survery and 14 cents of puravidam comprised in survey – Held, Counsel for the plaintiff contends that there is no written agreement which says that the moneys due under the bond can be recovered as arrears of public or land revenue. – Counsel for the respondent has not been able to point out any such agreement and the only point he urges is that this point was new and should not be allowed to be taken. – No other regulation has been brought to our notice which makes dues under this bond to be recoverable as arrears of public or land revenue. – But court is unable to set aside the sale on this ground because if the point had been taken at an early stage the government may well have relied on the power of sale given under the bond. – Fact that the sale took place under the machinery provided by the Revenue Recovery Regulation and not under any ad boe machinery set up by the government would not vitiate the sale – Bonds do not give power to the government to sell the properties other than mentioned in the bond. – Appeal Allowed
S.M. SIKRI, J.
(1) THIS appeal by certificate granted by the High court of Kerala is directed against its judgment and decree reversing the judgment and decree of the Trial court and dismissing the suit of the original plaintiff, appellant before us. The relevant facts for determining the points raised before us by Mr. Chagla, learned counsel for the appellant, are as follows.
(2) ON 5/12/1931, the plaintiff executed a bypothecation bond in favour of the Travancore government in respect of a loan of Rs. 6,000.00 On 12/12/1931, another bond was executed in respect of a further loan of Rs. 4,400.00. On 28/05/1938, the plaintiff executed another hypothecation bond in favour of the father of Neelakanta Iyer Subramonia Iyer, respondent before us. In the government Gazettes, dated 21/02/1939, and 25/04/1939, under Paragraph 6 reference is made to the arrears of Rs.4,193 chs. 19 cs.9 plus interest under the special loan to be paid by Luka Mathai of Pallithanathu, Kottayam Taluk, and the sale of 97 acres of nilam comprised in survery No. 545/32-11/1 and 14 cents of puravidam comprised in survey No. 532/3.
(3) A notice was issued to the plaintiff in March or April, 1939 (27-8-1114 M.E.) that as he had to repay Rs.4,193.00 chs. 10 ca. 9 under the special loan plus the execution costs and the interest therein "it is hereby made known that 107 acres 84 cents of properties belonging to you and comprised in survey Nos. 545/32-11/1, 481/3, 481/44, 481/40 etc. of Pulinkunnu Pakuthy and which were attached will be sold in auction On 27th Madam, 114". On 10/05/1939, the revenue auction took place and the respondent purchased the properties in dispute for Rs. 4,510.00. The plaintiff presented a petition (Ext. M) to the Division Peshkar against the revenue sale. In this petition it was stated as follows :
"I received notice staling that the sum will be realised by auctioning the properties comprised in Survey Nos. 545/32-1 1/1, 481/5, 481/4-A, 481/4-G of Pulinkunnu Pakuthy. Knowing that the aforesaid property in Survey No. 545/32 A-1, which belongs to me and which, I had given as security to government was going to be sold in auction on 27th Medam last, many persons had come forward to bid the same in auction. But the properties that were sold in auction are the properties comprised in Survey Nos. 545/32-11/2, 481/5, 481/4-A and 481/4-C."
He further stated that "since the auction was conducted in this manner the properties worth about Rs. 30,000.00 were sold in this auction for a paltry sum of Rs. 4,500.00 odd".
(4) THE sale was, however, confirmed by the Division Peshkar. The sale certificate (sanad) was issued to the respondent on 13/11/1929. The sale certificate was executed and issued under S. 34 of Regulation 1 of 1068, in respect of the properties including the properties in dispute, namely, 97 acres of nilam comprised in Survey No. 545/32-A/1 and 14 cents of Puravidam comprised in Survey No. 537/3.
(5) ON 5/08/1941, partition suit (O.S. No. 102 of 1116) was instituted and judgment was delivered by the Trial court in this suit on 29/09/1952. Reference is made to this judgment because basing itself on this judgment the plea of res judicata was raised by the defendant in the High court.
(6) THE suit out of which the present appeal arises, namely, original Suit No. 492 of 1953, was filed for setting aside the sale and redemption of the mortgage. The Trial court partly decreed the suit holding that the sale was a nullity. The High Court, as stated earlier, has reversed this judgment and dismissed the suit.
(7) THE learned counsel for the appellant raised the following points before us: (1) that the revenue sale was a nullity because in effect and substance no proclamation of sale was issued inasmuch as instead of mentioning the proper revenue numbers of the land, namely, Survey No. 545/32-A-1, Survey No. 545/32-11/1 was mentioned and in place of mentioning survey No. 537/3, survey No. 532/3 wa
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