PATNA HIGH COURT
Shambhu Prasad Singh and A.N.Mukharji JJ.
Janki Sah
Versus
Girja Singh
Appeal From Appellate Decree No. 286 of 1968 ;
Decided On : NOVEMBER 24, 1972
REDEMPTION OF MORTGAGE - SALE IN EXECUTION OF DECREE FOR ARREARS OF RENT - EFFECT ON RIGHT OF REDEMPTION - LIMITATION FOR SUIT FOR COMPENSATION FOR BREACH OF CONTRACT IN WRITING REGISTERED.
Fact of the Case:
Plaintiffs filed a suit for redemption of a zarpeshgi deed executed by their predecessor-in-interest in favor of the defendants' predecessor-in-interest. Alternatively, they claimed compensation for loss of the mortgaged property due to the defendants' default in paying rent to the landlord, resulting in an auction sale of the property.
Finding of the Court:
The lower appellate court held that the sale in execution of the decree for arrears of rent did not affect the validity of the mortgage and the plaintiffs' right to redeem. However, it also held that the plaintiffs could not redeem the mortgage as it had been redeemed by a third party, but they were entitled to compensation for the loss of the property.
Issues: - Whether the right of redemption survived after the sale in execution of the decree for arrears of rent? - Whether the plaintiffs could claim compensation for loss of the mortgaged property due to the defendants' breach of contract? - Whether the suit for compensation was barred by limitation?
Ratio Decidendi: - The sale in execution of the decree for arrears of rent extinguished the right of redemption of the plaintiffs. - The suit for compensation was barred by limitation as it was filed more than six years after the breach of contract.
Final Decision: The appeal was allowed, the judgment and decree of the lower appellate court were set aside, and those of the trial court, except with regard to costs, were restored.
Shambhu Prasad Singh, J.
1. This appeal is by defendants first party. It arises out of a suit in which the plaintiff-respondents claimed redemption of a zarpeshgi deed, dated the 2nd January, 1905 executed by Nakchhed, their predecessor-in-interest, in favour of Jado Lal, the predecessor-in-interest of the appellants, for a sum of Rs. 1,000/-. It also included some lands which had been previously given in zarpeshgi by Nakchhed to Madari, brother of Hito Singh, by a deed, dated the 17th September, 1885. In the alternative, the plaintiff-respondents claimed a decree for Rs. 51,000.00 as compensation in case it was found that they were not entitled to redeem the zarpeshgi bond. The plaintiff-respondents alleged that, though the mortgagee was liable to pay the rent of the mortgaged land to the landlord, he deliberately defaulted in payment thereof, and, in collusion with the agents of the landlord, got a suit for recovery of arrears of rent filed, which ended in a money decree, and, in execution thereof, an area of 16 bighas and odd of khata No. 152 was put to sale and purchased by Sitararn, son of Hito Singh, in the name of one Biltu.
2. Admittedly, the relief for redemption in respect of the property mortgaged by Nakchhed under the deed dated the 17th September, 1885 had become time-barred on the date the suit was instituted. The suit was, therefore, pressed only in respect of the property mortgaged under the deed dated the 2nd January, 1905, excluding that mortgaged by the deed dated the 17th September, 1885. The appellants did not dispute the execution of the zarpeshgi sought to be redeemed, nor did they dispute the allegations that the landlord had brought a suit for recovery of arrears of rent in respect of the land covered by the zarpeshgi, which was decreed, and the land was auction-sold and possession delivered to the auction-purchaser in Execution Case No. 1271 of 1916. They, however, claimed that the auction sale extinguished the right of redemption of the plaintiff-respondents. They denied that the liability to pay rent was on the mortgagee. They further averred that, though they were not bound to pay the rent, they paid the rent to the plaintiff-respondents. According to them, one Imamuddin purchased the interest of the landlord, and transferred an area of 12 bighas of the disputed land to Hito Singh by means of a sale deed dated the 12th May, 1922. Imamuddin also transferred 4 bighas 17 kathas 5 dhurs of land to Ramgulam Singh by virtue of a sale deed dated the 5th May, 1919. On the basis of the sale deed in his favour, Hito Singh filed a suit for redemption against the defendants first party, which was numbered as Title Suit No. 445 of 1923. The plaintiff-respondents were also impleaded in that suit. The suit was ultimately compromised and Hito Singh and others got possession of the land purchased by them from Imamuddin. Thus, according to the defendant-appellants, the mortgage in their favour was extinguished and could not be redeemed by the plaintiffs nor could they get a decree for compensation.
3. Some other defendants, who filed written statements, supported the case of the appellants.
4. The Court of first instance held that the plaintiff-respondents were not entitled to either of the two reliefs. It, accordingly, dismissed the suit in toto. The Lower Appellate Court has held that the sale in execution of the decree for arrears of rent, which had the effect of a money sale, or the compromise in the redemption suit, did not affect the validity of the mortgage in question and the right of the plaintiffs to redeem. It further held that, in terms of the mortgage, the mortgagee-appellants were liable to pay the rent and the landlord had to bring the suit for recovery of arrears of rent as they defaulted in payment thereof. It also disbelieved the case of the appellants that they had paid the rent in respect of the mortgaged land to the plaintiff-respondents. It however, thought that, in view of the redempti
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