PATNA HIGH COURT
Lakshmikanta Jha and Reuben JJ.
Bishunath Tewari
Versus
Mirchi
Appeal From Appellate Decree No. 1986 of 1948 ;
Decided On : MAY 06, 1952
REDEMPTION OF MORTGAGE - SUIT FOR - FRAUDULENT DECREE - EFFECT OF - SALE IN EXECUTION OF - WHETHER CAN BE IGNORED - SECTION 44, EVIDENCE ACT - APPLICABILITY OF - LIMITATION ACT, ARTICLE 95 - WHETHER A BAR.
Fact of the Case:
Plaintiff executed a usufructuary mortgage bond in favour of Harihar Tewari, since deceased, ancestor of the defendants mortgaging 3.83 acres of ralyati land, and put the mortgagee in possession thereof, in lieu of interest, from the beginning of Asarh, 1339 Fasli (June, 1932). Under the terms of the mortgage bond, the mortgagee stipulated that "the payment of rent to the malik in respect of the said rehan property is the concern of the said rehander" and in the description of the property at the foot of the mortgage bond it was stated that the annual rent including cesses was Rs. 19/12/3 (Ext. A.). While the mortgagee was in possession, the landlords brought two suits for arrears of rent in respect of the mortgaged land and put up the holding to sale in execution of the decree, but the entire decretal amounts were deposited by the mortgagee (vide chalans Exts. B to B2) and the sales were averted.
Finding of the Court:
The decree and sale were vitiated by the fraud of the mortgagee, and the plaintiff had no knowledge of the money suit or of the court sale. The contention of Mr. P.R. Das, for the appellants, is that the money decree or the court sale not having been set aside within three years of the date of the plaintiffs knowledge of the fraud under Article 95 Limitation Act, the plea of nullity is not available to the plaintiff & the court of appeal below had no jurisdiction to decide the question of fraud and record its finding thereon. He has accordingly urged that the finding of fraud must be ignored and the suit for redemption dismissed. Mr. Das has raised interesting questions of law but, on authorities, his contentions must, in my opinion, fail.
Issues: Whether the plaintiff can treat the sale as a nullity on the ground of the fraud of the mortgagee and seek redemption of the mortgage without getting the sale set aside.
Ratio Decidendi: The decree and sale were fraudulent, and the plaintiff can, therefore, treat the sale as a nullity and claim right of redemption. In Shivlal Bhagvan V/s. Shambhu Prasad Parvatishankar, 29 Bom 435 (FB) (B), it was held that a sale held in execution of a decree which was later on modified in appeal cannot be attacked; but in that case Sir Lawrence Jenkins observed: "The effect of the reversal of a decree on a sale held under it was considered by the House of Lords in Tommey V/s. White, 1850 3 HLC 49 at p. 63 CO. Lord Brougham in delivering his opinion said: We cannot set aside the sale, for the sale was under the decree of the Court, to a bona fide purchaser, there being no fraud, and consequently the setting aside that sale is utterly and absolutely out of the question; the sale must stand." Thus the Pull Bench in this case recognized the principle that a sale to a bona fide purchaser can be set aside if vitiated by fraud.
Final Decision: The appeal is accordingly dismissed with costs.
Lakshmikanta Jha, J.
1. This appeal arises out of a suit for redemption of a usufructuary mortgage and for possession with masne profits. Both the courts below have decreed the suit; hence this second appeal by the defendants.
2. The plaintiff executed a registered usufructuary mortgage bond dated 11-7-1932, for a sum of Rs. 122/- in favour of one Harihar Tewari, since deceased, ancestor of the defendants mortgaging 3.83 acres of ralyati land, and put the mortgagee in possession thereof, in lieu of interest, from the beginning of Asarh, 1339 Fasli (June, 1932). Under the terms of the mortgage bond, the mortgagee stipulated that
"the payment of rent to the malik in respect of the said rehan property is the concern of the said rehander"
and in the description of the property at the foot of the mortgage bond it was stated that the annual rent including cesses was Rs. 19/12/3 (Ext. A.).
3 While the mortgagee was in possession, the landlords brought two suits for arrears of rent in respect of the mortgaged land and put up the holding to sale in execution of the decree, but the entire decretal amounts were deposited by the mortgagee (vide chalans Exts. B to B2) and the sales were averted.
4. According to the defendants, the landlords instituted the two rent suits, claiming rent at an enhanced jama of Rs. 23/7/3 and the mortgagee (Harihar) deposited the landlords dues under the two decrees in order to protect his own interest. It is alleged that the plaintiff was asked to reimburse the defendants; and on her refusal to do so, the sons of Harihar (two of whom are defendants 1 and 2) instituted a money suit against the plaintiff and her son in 1941 for recovery of the excess amount and an ex parte money decree (Ext. E) was obtained, and as the decree was not satisfied the mortgaged land was sold in execution of the money decree and auction-purchased by the sons of Harihar themselves.
The plaintiff however, brought the suit for redemption, pure and simple, without any prayer for setting aside the court sale. Her allegation is that the money payable under the mortgage bond in suit was offered to the defendants, and on their refusal it was deposited in court and a notice was duly served on them, but in spite of the notice they did not give up possession. She has, therefore, claimed recovery of possession with mesne profits on redemption.
5. The defendants have resisted the suit and their case is that the plaintiffs right of redemption has been extinguished by reason of the sale of the land in suit held in execution of the money decree obtained by them. According to them, the plaintiff is not entitled to claim either redemption or recovery of possession or mesne profits because the court sale in execution of the money decree stands unreversed and there is no averment in the plaint that the court sale is vitiated by any fraud.
6. The decrees for rent alleged to have been obtained by the landlords have not been filed. The chalans (Exts. B to B2), the sale certificate (Ext. C) and the writ of delivery of possession (Ext. D) filed by the defendants show that the jama of the holding, inclusive of cess, was only Rs. 19-12-3. The learned Subordinate Judge has, on a consideration of the entire evidence, oral and documentary, held in agreement with the trial court, that the plaintiff had no knowledge either of the suits instituted by the landlords or of the money suit instituted by the mortgagee. His finding is that under the mortgage bond Harihar was Bound to pay the rent himself, that by making the deposit of the decretal dues of the landlords, the mortgagee discharged his own liability, and that the claim of the defendants to be reimbursed was dishonest. He has accordingly held that the decree and sale was fraudulent.
7. The sale of the mortgaged land in dispute was held by a court of competent jurisdiction, but on the finding of the court of appeal below, as also of the court of first instance, the decree and the sale held thereunder, w
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