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1964 Supreme(Pat) 41

PATNA HIGH COURT
S.C.Misra and A.B.N.Sinha JJ.
Haridas Ghosh
Versus
Thakur Jogendra Nath Sahdeo
Appeal From Original Order No. 300 of 1960 ; 301 of 1960 ;
Decided On : FEBRUARY 21, 1964

A mortgagee cannot levy execution proceeding and pray for satisfaction of decretal dues by making them a charge upon the amount of compensation payable to the mortgagor.

Headnote:

CHOTANAGPUR ENCUMBERED ESTATES ACT, 1876 - SEC. 2 - BIHAR LAND REFORMS ACT, 1950 - SEC. 14 - MORTGAGEE CANNOT LEVY EXECUTION PROCEEDING AND PRAY FOR SATISFACTION OF DECRETAL DUES BY MAKING THEM A CHARGE UPON THE AMOUNT OF COMPENSATION PAYABLE TO THE MORTGAGOR.

Fact of the Case:

The decree-holders, who were mortgagees, sought to execute their decrees against the compensation money payable to the mortgagor for the mortgaged properties vesting in the State of Bihar under the Bihar Land Reforms Act, 1950.

Finding of the Court:

The court held that the decree-holders could not proceed against the compensation money in the execution cases and that their only remedy was by way of an application under Sec.14 of the Bihar Land Reforms Act.

Issues: Whether the decree-holders could proceed against the compensation money in the execution cases.

Ratio Decidendi: The court relied on the decisions of the Supreme Court and this Court to hold that the decree-holders could not proceed against the compensation money.

Final Decision: The appeals of the decree-holders were dismissed.

Judgment

S.C.Misra, J.

1. These two appeals are by the decree-holders. Miscellaneous Appeal No. 300 of 1960 arises out of the decree passed in Mortgage Suit No. 31 of 1931 and Miscellaneous Appeal No. 301 of 1960 out of the decree passed in Mortgage Suit No. 30 of 1931. The mortgagee S. C. Roy, held a mortgage executed in his favour by Thakur Jagat Udai Nath Sahdeo, father of respondent Thakur Jogendra Nath Sahdeo, on the 17th of February, 1922, by which he mortgaged eight annas interest in village Hasag and under the second he mortgaged sixteen annas interest in village Nilma. Preliminary decree was passed in both the suits on the 28th of January, 1932, and final decree on the 19th of November, 1932. On the 9th of February, 1933, two execution cases were started at the instance of the decree-holders of the decretal dues. It appears, however, that during the pendency of the execution proceedings, the judgment-debtor prayed for relief under the Chotanagpur Encumbered Estates Act, 1876 (Act 6 of 1876). The prayer was allowed and the execution cases were accordingly stayed sine die on the 17th of February, 1938.

The dues, however, of the appellant-decree-holders, could not be satisfied. It appears that the Additional Judicial Commissioner, Ranchi, in his inspection note sometime before the 7th of March, 1956 recorded that on the vesting of the estate under Sec.2 of the Chotanagpur Encumbered Estates Act, the execution proceedings became null and void and should no longer be maintainable. The executing Court accordingly ordered the decree-holders lawyer to be informed to take steps, if any, by the 17th of March, 1956. On the 17th of March, 1956, no further action was taken on behalf of the decree-holders and, as such, tile execution cases stood dismissed as not maintainable.

2. On the 12th of March, 1959, the decree-holders started two fresh execution cases, being numbered as 19 and 20 of 1959. The relief prayed for in the execution proceedings by the decree-holder-appellants was that the decretal dues might be made payable out of the amount of compensation due to the mortgagor for the mortgaged properties vesting in the State of Bihar under the Bihar Land Reforms Act, 1950. The respondent-judgment-debtor objected to the prayer and the learned Special Subordinate Judge, Ranchi, who disposed of the execution cases, ordered them to be dismissed, holding that the decree-holders could not proceed against the compensation money in the execution cases. That was on the authority of certain decisions of this Court as well as of the Supreme Court. The decree-holders have come up in appeal against the order of the Court below dismissing the execution cases.

3. It is unnecessary to refer to those decisions in detail inasmuch as Mr. Choudbury appearing in support of the appeal has not thought it fit to challenge the correctness of the view of the Court below that if the estate of an intermediary vests in the State of Bihar, the mortgagee cannot levy any execution proceeding and pray for satisfaction of the decretal dues by making them a charge upon the amount of compensation payable to the mortgagor. His only remedy is by way of an application under Sec.14 of the Bihar Land Reforms Act, vide Krishna Prasad V/s. Gouri Kumari Devi, AIR 1962 SC T464 and Anup Singh v. Ajodhya Prasad, 1962 BLJR 612: (AIR 1962 Pat 332) (FB).

Mr. Choudhury, however, has contended that, in any view of the matter, the learned Subordinate Judge should not have dismissed the execution cases even if he came to the conclusion that the relief sought for by the appellants could not be granted to them, in so far as their prayer for making the decretal dues payable out of the compensation money was concerned. He has urged that the decision of this Court in Sidheswar Prasad Singh V/s. Ram Saroop Singh, 1963 BLJR 802: (AIR 1963 Pat 412) (FB) has distinguished the pronouncement of the Supreme Court in the case cited above and held that although the decree-holder cannot proceed ag


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