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1950 Supreme(Pat) 124

PATNA HIGH COURT
Jha and Reuben JJ.
Madan Lal
Versus
Ghasiram
Appeal from Original Decree No. 228 of 1946 ;
Decided On : AUGUST 24, 1950

An attachment of property in execution of a decree does not create a charge on that property.

Headnote:

LIS PENDENS - ATTACHMENT OF PROPERTY - CREATION OF CHARGE - REDEMPTION RIGHT - JUDGMENT-CREDITOR - T. P. ACT, SECTION 91 (F) - CIVIL P. C., ORDER 38, RULE 11 - NECESSARY PARTY - MORTGAGE SUIT.

Fact of the Case:

The plaintiffs, members of a joint Hindu family, purchased three villages in an execution sale in 1931. The villages were attached before judgment in a suit filed by Braja Nath Marwari, a former karta of the joint family, against the Modaks. The suit was decreed on compromise, with a provision that on the defendants failing to pay the decretal amount, the whole of the unpaid balance would be realized by execution with interest at 12% per annum from the date of default till realization of the said sum, by sale of the attached property. The Modaks had, prior to the execution sale, sued the defendants on the foot of a simple mortgage bond of April 1922. The plaintiffs were not impleaded in this suit, nor were they made a party after the auction sale. The mortgage suit was disposed of on compromise between the Modaks and the defendants, and the defendants put the mortgage decree in execution and purchased the three villages in execution of the mortgage decree. The plaintiffs brought the present suit to redeem the mortgage of April 1922, contending that they were necessary parties to the mortgage suit and that, not having been impleaded, they still have the right to redeem the mortgage.

Finding of the Court:

1. The purchase by which the plaintiffs became the owners of the property concerned was during the pendency of the mortgage suit. As such, it is affected by the doctrine of lis pendens. 2. The plaintiffs were not necessary parties to the mortgage suit of 1931, as the compromise between Braja Nath Marwari and the Modaks did not create a charge on the property in favor of the joint family, and under Section 91 (f), T. P. Act, as it stood when they purchased the property in the execution sale, they were not entitled to redeem the simple mortgage.

Issues: 1. Whether the compromise between Braja Nath Marwari and the Modaks created a charge on the property in favor of the joint family? 2. Whether the plaintiffs were necessary parties to the mortgage suit of 1931? 3. Whether the plaintiffs had a statutory right to redeem the simple mortgage under Section 91 (f), T. P. Act?

Ratio Decidendi: 1. A charge is created by an act of parties or operation of law. The compromise in this case did not create a charge, as it did not impose any liability on the property beyond the liability already imposed upon it by law. The attachment of the property under Order 38, Civil P. C. already made the property liable to sale in execution of the decree without re-attachment. The compromise merely provided that the attachment shall subsist till the decree is satisfied, which is a reproduction of the provisions of Order 38, Rule 11. 2. The plaintiffs were not necessary parties to the mortgage suit of 1931, as they did not have any interest in the property at the time the suit was instituted. The attachment of the property did not create a charge on the property, and the plaintiffs did not have any right to redeem the mortgage under Section 91 (f), T. P. Act, as it stood at the time of the compromise.

Final Decision: The appeal was dismissed with costs.

Judgment

Reuben, J.

1. This appeal by the plaintiffs has been filed in the following circumstances.

2. The plaintiffs are members of a joint Hindu family. Braja Nath Marwari, a former karta of the joint family, filed Money suit No. 753 of 1928 against Ram Chandra Singh Modak and others. Daring the pendency of the suit, under the provisions of Order 38 of the Civil P. C., he obtained attachment of three villages Dhargram, Aria and Ramadih, belonging to the Modaks. The attachment was effected on 15-7-1928. On 14-10-1928, the suit was decreed on compromise, the plaintiff getting a decree for Rs. 1,700 payable in certain instalments. The petition of compromise which was made part of the decree contained a provision :

"That on the defendants failing to pay other instalments by the due date the whole of the unpaid balance of the decretal amount shall fall due and shall be realised by execution with interest thereon at 12 per cent. per annum from the date of default till realisation of the said sum, by sale of the attached property. The order of the attachment before judgment to subsist till the decree money is not satisfied."

The decree was put in execution in the year 1930 and the three attached villages were sold in execution of the decree on 18-8-1931. The purchase was made by the joint family of the plaintiffs as decree-holders and the sale was confirmed on 6-13-1931. The property was sold subject to a simple mortgage executed on 2-4-1922, by the Modaks in favour of the defendants of the present suit. Previous to the execution sale and during the pendency of the execution proceedings, the defendants of this suit had, on 10-4-1931, sued the Modaks on the foot of the simple mortgage bond of April 1922. In this suit, the joint family of the plaintiffs was not impleaded, nor was it made a party to the suit after the auctionale. The mortgage suit was disposed of on compromise between the Modaks and the defendants of the present suit on 6-1-1932. The defendants put the mortgage decree in execution (Ex. case No. 537 of 1932) and, on 17-1-1933, purchased the three mauzas in execution of the mortgage decree. The sale was confirmed on 18-2-1933, and the decree-holders auction-purchasers took delivery of possession on 9-9-1933. On 24-4-1944, the plaintiffs brought the present suit to redeem the mortgage of April 1922, contending that they were necessary parties to the mortgage suit of 1931 and that, not having been impleaded, they still have the right to redeem the mortgage, The suit has been dismissed by the learns d Subordinate Judge. Hence, the present appeal.

3. The purchase by which the plaintiffs became the owners of the property concerned (was ?) during the pendency of the mortgage suit. As such, it is affected by the doctrine of lis pendens. The present right of the plaintiffs to redeem, therefore, depends on whether in the circumstances preceding (heir purchase of the property they were necessary parties to the mortgage suit of 1931. It is contended that they were necessary parties on two grounds, firstly, that by the compromise between Braja Nath Marwari and the Modaks, a charge on the pro-party was created in favour of the joint family, and, secondly, that under Section 91 (f), T. P. Act, as it stood when they purchased the property in the execution sale, they were entitled to redeem the simple mortgage; this right cannot be takers away from them by any transaction or litigation between third parties.

4. A charge is thus defined in Sec.100, T. P. Act:

"Where immovable property of one person is by act of parties or operation of law, made security for the payment of money to another, and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property."

Charges, therefore, may be divided into two classes, those created by an act of parties and those created by operation of law. According to the plaintiffs, the charge on which they rely was created by an act of the parties, namely, the agreem


















































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