SupremeToday Landscape Ad
Back
Next
Headnote Court Copy Facts Arguments Court observation Judicial Analysis Case Map Category Hierarchy Table of Content
Listen Article Pause Article
judgment-img

1932 Supreme(SC) 57

Privy Council At Allahabad
Sir Dinshah Mulla, Sir George Lowndes, Justice Lord Macmillan, JJ.
Shyam Narain Singh -Appellant
Versus
Suraj Narain Pandey and another -Resopndent
Appeal No. 8 of 1931, Allahabad Appeals Nos. 46 and 47 of 1929
Decided On : 18-11-1932

Advocates Appeared:
W. Wallach, W.H. Upjohn, Subba Row

Important Points

To void a mortgage on the grounds of immorality, the party alleging it must prove the loan was specifically used for immoral purposes; a general charge of immorality or a licentious lifestyle is insufficient to establish this connection.

Subject

Civil Law - Law of Mortgages

Headnote

(A) Mortgage - Immorality - Burden of Proof - To establish that a mortgage is tainted with immorality, the burden lies upon the party alleging it to prove that the loan was effected for the purpose of raising money to defray debts incurred for immoral purposes. A general charge of immorality or evidence that the borrower led a licentious life and lived beyond their means is not sufficient to create a presumption that specific loans were expended for immoral purposes. (Para 1)

Facts of the case:
A suit was founded on a mortgage which was challenged on the ground that it was tainted with immorality, specifically that the funds were used to defray debts incurred for immoral purposes. The lower court had initially ruled in favor of the challenger based on the presumption that the borrower's licentious lifestyle and lack of visible business meant the loans were used for immoral purposes. This was subsequently overturned by the appellate court, which found no connection between the loan and the alleged immorality.

Findings of Court:
The court found that there was a complete failure to establish any connection between the loan in question and the alleged immorality of the borrower.

Issues: Whether a general charge of immorality and evidence of a licentious lifestyle are sufficient to prove that a specific loan was contracted for immoral purposes.

Ratio Decidendi: The burden of proof rests on the party alleging immorality to show a direct connection between the loan and the immoral expenditure; a general reputation for immorality is insufficient to sustain such a claim.

Result: Appeal dismissed.

Legal Category Hierarchy

  • civil law
    • property law
      • mortgages
        • immorality and illegality
  • practice and procedure
    • evidence
      • burden of proof
      • presumptions

Lord Macmillan.-

Their Lordships have not found it necessary in this appeal to call upon counsel for the respondents. Counsel for the appellant has very properly accepted the position that the burden lies upon him to establish upon the evidence that the mortgage on which this suit was founded was tainted with immorality in this sense, that it was effected for the purpose of raising money to defray debts incurred by the mortgagor for immoral purposes. The learned Judge of the Subordinate Court decided the case in favour of Mr. Subba Row's client, but in doing so he states that he does not find the evidence sufficient to connect the particular cases of expenditure directly with the acts of immorality alleged. He adds however that it was said for the defence that-

“they have succeeded in showing that defendant 1 was leading a licentious life and living beyond his means, and there being nothing to show that there was any business on which the loans in question could have been expended, they were entitled to the presumption that those loans must have been expended for licentious purposes and that it was not necessary for them to prove that each item was expended on an immoral purpose.”

It is apparently upon that unsatisfactory footing that he holds that the case has been made out. When the appeal came before the High Court, the evidence was subjected to a very close and careful analysis, and the result of this analysis was that in the opinion of that Court there had been a complete failure to establish any connexion whatever between the loan in question and the alleged immorality of the borrower. Their Lordships see no reason to differ from the Judges of the High Court in the estimate which they have formed of the evidence in the case, and they consequently feel themselves to be relieved from the necessity of going over it again in detail. Counsel for the appellant brought the whole of the evidence again before their Lordships, but was quite unable to satisfy them that the Judges of the High Court had in any way done injustice to it. The burden being upon the appellant here to establish that the debts in question were contracted for immoral purposes, all that he has done, to quote the language of Lord Macnaghten in a previous case of a similar character, has been to establish a general charge of immorality, and that, as has been said more than once by this Board, is not sufficient. The question is purely one of fact, and as their Lordships entirely agree with the High Court that the appellant has failed to prove his case, they will humbly advise his Majesty that the appeal ought to be dismissed with costs.

Appeal dismissed.

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top