SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1952 Supreme(Pat) 34

PATNA HIGH COURT
V.Ramaswami and Sarjoo Prasad JJ.
Deo Saran Singh
Versus
Barhu Singh
Appeal From Appellate Decree No. 2123 of 1948 ;
Decided On : FEBRUARY 19, 1952

A mortgagee who is in a fiduciary position to the mortgagor cannot take advantage of his own default in payment of rent to the landlord and purchase the mortgaged property in execution of a rent decree, and claim the benefit of such purchase to extinguish the mortgage interest of the mortgagor.

Headnote:

MORTGAGE - REDEMPTION - MORTGAGEES DEFAULT IN PAYMENT OF RENT - PURCHASE OF MORTGAGED PROPERTY BY MORTGAGEES IN EXECUTION OF RENT DECREE - WHETHER MORTGAGEES CAN CLAIM BENEFIT OF PURCHASE - SECTION 90 OF THE INDIAN TRUSTS ACT, 1882 - APPLICABILITY.

Fact of the Case:

Plaintiffs sued for redemption of four mortgage bonds relating to plots in village Harpur Akauna. The defendants, mortgagees, purchased the mortgaged property in execution of a rent decree obtained against the plaintiffs. The plaintiffs alleged that the purchase was by the defendants-mortgagees themselves in the name of their relations, and that the ex parte rent decree in execution of which the sale had taken place was a fraudulent and collusive decree at the instance of the defendants who had suppressed the processes and got the lands sold in execution with a view to purchase the same. The defendants denied the allegations of fraud and collusion and contended that the decree and the sale were valid and binding on the plaintiffs, and as a result of the sale the mortgage interest of the plaintiffs had been completely extinguished.

Finding of the Court:

The Courts below concurrently found that the lands in suit had been purchased by the rehandars themselves. The Court also found that under the mortgage deeds in question the mortgagees were liable to pay rent to the landlord for the lands mortgaged to them. However, the Court held that the plaintiffs were also liable to pay rent in respect of 2 1/2 kathas of the holding in question which remained in possession of the plaintiffs family and also in respect of the land given in mortgage to defendant No. 1, and as such, there was default on the part of the plaintiffs as well in not paying rent to the landlord. The Court also found that there was no fraud or coliusion so far as the rent decree and execution was concerned, and consequently the plaintiffs were not entitled to redeem the mortgage bonds and to take advantage of their own default resulting in the sale of the disputed lands.

Issues: 1. Whether the mortgagees were liable to pay rent to the landlord for the lands mortgaged to them? 2. Whether the plaintiffs were also liable to pay rent in respect of a portion of the holding? 3. Whether the sale of the mortgaged property in execution of the rent decree extinguished the mortgage interest of the plaintiffs? 4. Whether the mortgagees could claim the benefit of the purchase made by them in the name of their benamidars?

Ratio Decidendi: 1. The Court held that under the mortgage deeds in question the mortgagees were liable to pay rent to the landlord for the lands mortgaged to them. 2. The Court also held that the plaintiffs were liable to pay rent in respect of 2 1/2 kathas of the holding in question which remained in possession of the plaintiffs family and also in respect of the land given in mortgage to defendant No. 1. 3. The Court held that the sale of the mortgaged property in execution of the rent decree did not extinguish the mortgage interest of the plaintiffs. 4. The Court held that the mortgagees could not claim the benefit of the purchase made by them in the name of their benamidars, as they were in a fiduciary position to the plaintiffs and could not take advantage of their own default.

Final Decision: The appeal was allowed, the decision of the Courts below was set aside, and the plaintiffs suit was decreed with costs throughout. The plaintiffs were entitled to a declaration that the purchase made by the mortgagees did not in any manner affect the rights of the plaintiffs to redeem the property mortgaged.

Judgment

Sarjoo Prosad, J.

1. The plaintiffs, who are the appellants in this appeal, sued for redemption in respect of four mortgage bonds relating to plots Nos. 296, 831, 850 and 858 of khata No. 109 situate in village Harpur Akauna.

2. The case of the plaintiffs is that the khata in question was their raiyati kasht land, and from time to time their family being in need of money borrowed from the defendants various sums of money under the bonds in suit. The first bond (Ex. 1-c) is dated the 16th of July 1927, under which a sum of Rs. 200.00 was borrowed from the defendant No. 1. The next (Ex. 1-b) is dated the 10th of August, 1928, under which a similar sum of money was borrowed from Doman Das, the husband of defendant No. 9. The third (Ex. 1) is dated the 2nd of June 1930, in favour of defendants 11 to 14 for a sum of Rs. 190, and the last one (Ex. 1-a) is dated the 14th of July, 1930 for Rs. 200/-from the defendant No. 15. The total area given in rehan covered almost the enure khata except for a small area of 2 1/2 kathas of land which is said to have remained in possession of the mortgagors. The plaintiffs alleged that when they wanted to redeem the mortgage, the defendants refused to accept the mortgage dues on the ground that the entire holding had been sold in execution of a rent decree. The plaintiffs learnt that the said purchase was by the defendants-mortgagees themselves in the name of their relations, and that the ex parts rent decree in execution of which the sale had taken place was a fraudulent and collusive decree at the instance of the defendants who had suppressed the processes and got the lands sold in execution with a view to purchase the same. The plaintiffs further stated that the mortgagees in spite of the fraudulent decree and sale continued to be in possession of the property, and their character as mortgagees had never changed, the plaintiffs as such being entitled to redemption. It was also stated by the plaintiffs that under the mortgage deeds in question the mortgagees were liable to pay rent to the landlord and they could not take advantage of their default in paying the rent to the detriment of the plaintiffs in getting the ex parte decree passed and purchasing the property themselves in execution of such a decree with a dishonest, intention of wiping out the mortgage.

3. It may be stated at the outset that the defendants 11 to 14, the defendants third party, who were mortgagees under the rehan bond of the 2nd of June, 1930, in respect of 62 decimals of plots 850 and 858 of the khata in suit, have already compromised with the plaintiffs and allowed the plaintiffs to redeem the bond in question. The dispute is, therefore, confined to the defendants interested in the other three mortgagees. They have in their respective written statements taken up a common defence which in substance is that the decree passed in the rent suit and the sale which followed in execution were good and valid and binding on the plaintiffs; and as a result of the sale the mortgage interest of the plaintiffs had been completely extinguished. They denied that the defendants were liable to pay rent to the landlord for the lands mortgaged to them, and, on the contrary, asserted that the entire liability for the payment of the said rent was on the plaintiffs, and that the plaintiffs having defaulted in payment of rent, the decree had been validly passed against them. They also stated that the auction purchasers were not the farzidars of the mortgagees but independent purchasers in their own right and all the allegations of the plaintiffs to the contrary were false and unfounded. On these allegations they contended that the plaintiffs suit for redemption did not lie as the mortgage interest no longer subsisted, the holding having been sold in execution of the rent decree.

4. The Courts below have concurrently found after a careful consideration of the evidence on record that it had been" established that the lands in suit had been



























Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top