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

1947 Supreme(Cal) 1

HIGH COURT OF CALCUTTA
Biswas
SUDHIRKUMAR BOSE - Appellant
Versus
CHANDRA KANTA SHEWLI - Respondent
Civil Rule 531  Of  1946
Decided On : FEBRUARY 19, 1947

Advocates Appeared:
BHABESH CHANDRA MITTER, SHYAMA CHARAN MITTER

The amendment to Section 73 of the Transfer of Property Act allows the mortgagee to claim payment of the mortgage money out of the surplus sale proceeds without the need for a separate suit.

Headnote:

Transfer of Property Act - Section 73 - Enforcement of Mortgagee's Claim

Fact of the Case:

The court found that the mortgagee's claim under Section 73 of the Transfer of Property Act can be enforced without the need for a separate suit, as the section now allows the mortgagee to claim payment of the mortgage money out of the surplus sale proceeds.

Finding of the Court:

The court made the Rule absolute, set aside the order of the learned Munsiff, and directed the Munsiff to issue a payment order in favor of the mortgagee out of the surplus sale proceeds.

Issues: Interpretation of Section 73 of the Transfer of Property Act and the effect of its amendment in 1929 on the enforcement of the mortgagee's claim.

Ratio Decidendi: The court interpreted the amendment to Section 73 of the Transfer of Property Act, emphasizing that the mortgagee can now claim payment of the mortgage money out of the surplus sale proceeds without the need for a separate suit.

Final Decision: The Rule was made absolute, the order of the learned Munsiff was set aside, and the Munsiff was directed to issue a payment order in favor of the mortgagee out of the surplus sale proceeds. No order was made as to costs.

BISWAS, J.

( 1 ) IN my opinion, this Rule should be made absolute. The court below was wrong in saying that a claim under Section 73, Transfer of Property Act, as it now stands can be enforced only a suit. The section as it stood before its amendment in 1929 only created a charge in favour of the mortgagee on the surplus sale proceeds of the mortgaged property where it was sold through failure to pay arrears of revenue or rent due in respect thereof. If the mortgagee had only a charge created in his favour, it could obviously be enforced by means of a suit but the section was amended by Act 20 of 1929, and by the amendment it was declared that the mortgagee can claim payment of the mortgage money out of the surplus sale proceeds, remaining. There is no question now of bringing a suit to enforce the claim. Sub-section (3) no doubt uses the word "enforce", but that must evidently refer to the mode in which the claims are to be satisfied under Sub-sections (1) and (2 ). There is no reason, therefore why in this case the petitioner will not be entitled to have his dues satisfied out of the surplus sale proceeds as far as the sale proceeds will permit. The fact that there has been an award which has not only determined the amount due under the mortgage, but also provided for payment in a number of instalments, will not affect the mortgagee's right to be paid out of the surplus sale proceeds, in accordance with the provisions of Section 73, Transfer of Property Act. Sub-section (3) makes it clear that the mortgagee will be entitled to such payment, notwithstanding that otherwise the mortgage money may not be immediately payable.

( 2 ) THE result is that the Rule is made absolute, the order of the learned Munsiff is set aside and it be directed that the Munsiff should issue a payment order in favour of the mortgagee out of the surplus sale proceeds.

( 3 ) THERE will be no order as to costs.

Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
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