HIGH COURT OF CALCUTTA
P. C. Mallick
SRI ISWAR RADHA KANTA JEW THAKUR - Appellant
Versus
GOPINATH DAS - Respondent
Suit 1942 Of 1956
Decided On : DECEMBER 04, 1959
SUIT FOR DECLARATION OF TITLE - DEBUTTER PROPERTY - ALIENATION - FRAUD - MORTGAGE - SALE - RES JUDICATA - LIMITATION - DECREE - CONSTRUCTION - MORTGAGE SECURITY - SEBAITY INTEREST - SALE IN EXECUTION OF MORTGAGE DECREE - INTEREST PASSING - SUBROGATION - CONSOLIDATED RATES - CHARGE - SALE PROCEEDS - COSTS - COURT FEES.
Fact of the Case:
The debutter property was sold in a suit to enforce a mortgage created by the sebait without legal necessity and not for the benefit of the deity. The deity challenged the alienation on the ground of fraud and conspiracy.
Finding of the Court:
The lease and the mortgage were fraudulent and not binding on the deity. The mortgage was not for legal necessity or for the benefit of the deity. The deity was not properly represented in the mortgage suit and its interest was not protected. The purchaser in the mortgage sale acquired only the sebait's interest in the property, which terminated on the death of the sebait. The deity's title to the property was not extinguished by the mortgage or the sale in enforcement of the mortgage. The deity was entitled to the sale proceeds, except for the amount paid to the Corporation on account of consolidated rates.
Issues: 1. Whether the lease and the mortgage were fraudulent and not binding on the deity? 2. Whether the mortgage was for legal necessity or for the benefit of the deity? 3. Whether the deity was properly represented in the mortgage suit and its interest was protected? 4. Whether the purchaser in the mortgage sale acquired only the sebait's interest in the property, which terminated on the death of the sebait? 5. Whether the deity's title to the property was extinguished by the mortgage or the sale in enforcement of the mortgage? 6. Whether the deity was entitled to the sale proceeds, except for the amount paid to the Corporation on account of consolidated rates?
Ratio Decidendi: 1. A mortgage created by a sebait without legal necessity and not for the benefit of the deity is not void, but the mortgagee acquires only the sebait's interest in the property, which enures only during the incumbency of the sebait. 2. In a suit to enforce a mortgage of debutter property by a sebait, when the mortgage is neither for legal necessity nor for the benefit of the deity, what is sold in execution of the mortgage decree is not the mortgaged property but only the sebait's interest in the debutter property. 3. The purchaser in such a case would not acquire title in the debutter property beyond the lifetime of the sebait and on the termination of his sebaity the title of the purchaser in the debutter property would come to an end.
Final Decision: The suit was decreed in favor of the deity. The deity was declared to be the owner of the property. The defendants were directed to refund the sale proceeds to the deity, except for the amount paid to the Corporation on account of consolidated rates. The defendants were also directed to pay the costs of the suit.
( 1 ) THIS is a suit to challenge the alienation of a defaulter property. The debutter was created by one Mokshadamoyee Desi by two Arpannamas. She appointed herself as the first shebait and certain named persons as subsequent shebaits. Thereafter, the shebaity was to devolve on the nephew of the settlor one Sital Chandra Das and his heirs. The shebaity devolved on Sital sometime in or about 1944, During the life time of Sital's shebaity, the debutter property was sold. Sital died in or about February 1956. His only daughter Molina Hazra as Sital's heir became the next shebait. This suit has been instituted by her for self and as the next friend and shebait of the deity. The parties impleaded are a number of persons who dealt with the debutter property.
( 2 ) THE plaint sets out all facts leading ultimately to the sale of debutter property. Sital as shebait created a lease in favour of the defendant Gopinath Das on a monthly rent ot Rs. 5/ -. The lease records the payment of Rs. 2,500/- as selami. Gopinath subsequently assigned the lease to the defendant Nemai Chand. The defendant Rajen Sen purporting to act as the next friend of the deity instituted a suit against Sital for framing a scheme of management of the debutter property and of carrying on the Debseva. In that suit a consent decree was passed whereby a trustee was appointed with authority to create a mortgage of the debutter property. The defendant Phanilal as such trustee created a mortgage in favour of the defendant Nimai Chand. Ultimately in a suit inter alia to enforce the mortgage, the property was sold and the defendant Upendra purchased the premises. It is alleged in the plaint that the lease and the mortgage was fraudulent and Without consideration and the deity was not benefited either by the lease or by the mortgage, that the suit instituted by Rajendra wag fraudulent, that Rajendra was not entitled to act as the next friend of the deity and that the decree was not binding on the deity, that the suit originally instituted by the Calcutta Corporation to enforce a statutory charge in which the defendant Nimai Chand was subsequently transposed as a plaintiff, was also fraudulent, that the deity was not properly represented and its interest not properly protected in this suit and that as such the decree was not binding on the deity. The defendant Upendra is alleged to have purchased with full knowledge of the above facts, A number of declarations has been claimed as to the invalidity of each of the above acts and there are prayers for setting them aside. There are prayers for injunctions and damages as well.
( 3 ) THE defendant Rajen Sen did not file any written statement. The defendant Phani Lal and Nemai filed a joint written statement and the defendant Gopinath and Upendra filed separately their own written statements. Gopinath in his written statement has denied all allegations of fraud and conspiracy alleged against him. He has further denied having obtained any lease from Sital or effected any assignment of the said lease in favour of the defendant Nemai. He denies that the signature in the lease and assignment are his signature. He has further denied to have paid any consideration for the lease or to have received any consideration for effecting the assignment. In paragraph 23 it is pleaded that Gopinath "never had anything to do with the subject matter of the suit and that he has been unnecessarily brought in this suit with ulterior motive. "
( 4 ) UPENDRA in his written statement denied all allegations of fraud and conspiracy levelled against him. He denies all allegations of fraud and the knowledge of the fraud alleged to have been perpetrated by the other parties. He pleads that he is a bona fide purchaser for valuable consideration without notice of any defect in title. He purchased the property relying on the decrees and orders of this Court. It is pleaded that the suit is barred by res judicata, waiver, estoppel and principles
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