HIGH COURT OF CALCUTTA
BACHAWAT, RENUPADA MUKHERJEE, JJ.
Nirmala Sundari Dasi - Appellant
Versus
Mrinalini Dasi - Respondent
Decided on : Jun 01, 1959
CHARGE - WEST BENGAL ESTATES ACQUISITION ACT, 1953 - SECTIONS 3, 7, 12, 14, 17, 21, 23, 26 - TRANSFER OF PROPERTY ACT, 1882 - SECTIONS 73, 100 - COMPENSATION MONEY - CHARGE-HOLDER'S RIGHT TO FOLLOW SUBSTITUTED SECURITY - AD INTERIM COMPENSATION - WHETHER IMMUNE FROM CHARGE-HOLDER'S CLAIM - COURT'S POWER TO APPOINT RECEIVER TO COLLECT COMPENSATION MONEY.
Fact of the Case:
The decree-holder had a charge over a property which was acquired by the State under the West Bengal Estates Acquisition Act, 1953. The judgment-debtors claimed that they were exclusively entitled to the ad interim compensation payable under the Act. The decree-holder contended that the entire compensation, including ad interim compensation, was charged for her maintenance and should be realized by the receiver for the due payment of her maintenance dues.
Finding of the Court:
The court held that the charge-holder was entitled to claim payment of the monies charged on the property so acquired out of the amount due to the judgment-debtors as compensation. The court further held that the ad interim compensation was immune only from an order of attachment under sub-section (1) of section 26 and from an order of deduction under section 7 of the West Bengal Estates Acquisition Act, 1953. The court also held that there was nothing in the Act which debars the charge-holder from realizing her dues out of the ad interim compensation money.
Issues: 1. Whether the decree-holder, who had a charge over the property which has since been acquired under the West Bengal Estates Acquisition Act, 1953, is entitled to an order directing the receiver to obtain payment of the compensation money and to apply the same towards satisfaction of the dues of the decree-holder. 2. Whether the ad interim compensation is immune from the charge-holder's claim.
Ratio Decidendi: 1. The court held that by virtue of section 73 (2) read with section 100 of the Transfer of Property Act, the charge holder is, therefore, prima facie, entitled to claim payment of monies charged on the property so acquired out of the amount due to the judgment-debtors as compensation. 2. The court held that section 26 of the West Bengal Estates Acquisition Act does not limit the extent of recovery by a mortgagee or charge-holder who seeks to realise her dues by appointment of a receiver of the compensation money.
Final Decision: The appeal was dismissed.
1. THIS appeal is against an order of the learned Subordinate Judge, 5th Court, Alipore, dated the 4th July, 1958, in M. Ex. Case No. 21 of 1953 arising out of execution of a decree for payment of maintenance to the decree-holder at the rate of Rs. 150/- per month. By the decree, premises No. 44, Garden Reach Road in the District of 24-Parganas was charged for the due payment of the maintenance. By an order dated the 28th June, 1954, the executing Court appointed a receiver of the charged property with power to realize the rents and to apply the net collections for the liquidation of the decretal dues.
2. IT is common case that the property charged by the decree is an estate and that the judgment-debtors are intermediaries within the meaning of the West Bengal Estates Acquisition Act, 1953. On the due publication of a. notification under section 4 of the Act, the property vested in the State of West Bengal, free from incumbrances as from the 1st Baisakh, 1362 B. S. corresponding to the 15th April, 1955. The decree-holder as also the judgment debtors preferred claims before the Additional Collector, 24-Parganas for the ad interim compensation payable under section 12 of the Act.
By his letter dated the 10th March, 1958, to the Subordinate Judge, Alipore, the Additional Collector, 24-Parganas asked for directions as to whom the ad interim compensation money should be paid. On the 6th June, 1958, the judgment-debtors filed two separate petitions praying for discharge of the receiver. On the 20th June 1958, the decree-holder filed a petition praying that the receiver be authorised to receive the ad interim compensation as also lump compensation in respect of the charged property sand to pay the same to the decree-holder. These several petitions as also the letter of the Additional Collector. 24-Parganas, were considered together and disposed of by the Subordinate Judge by his order dated 4th July, 1958. Before him it was contended on behalf of the judgment-debtors that they were exclusively entitled to the ad interim compensation. On behalf of the decree-holder, it was urged that the entire compensation including ad interim compensation was charged for her maintenance and as such should be realised by the receiver for the due payment of her maintenance dues. The learned Subordinate Judge upheld the decree-holder's contention and passed an order empowering the receiver to receive the ad interim compensation as also lump sum compensation money in respect of the charged property, for the satisfaction of the maintenance dues of the decree-holder.
3. THE correctness of this order has been strenuously assailed before us. The question before us is whether the decree-holder, who had a charge over the property which his since been acquired under the West Bengal Estates Acquisition Act, 1953, and in respect of which compensation is payable under the Act, is entitled to an order directing the receiver to obtain payment of the compensation money and to apply the same towards satisfaction of the dues of the decree-holder. At the outset, it is necessary to remember the provisions of sub-sections (2) and (3) of section 73 of the Transfer of Property Act which are as follows:-
"(2) Where the mortgaged property or any part thereof or any interest therein is acquired under the Land Acquisition Act, 1894, or any other enactment for the time being in force providing for the compulsory acquisition of immovable property, the mortgagee shall be entitled to claim payment of the mortgage-money, in whole or in part, out of the amount due to the mortgagor as compensation. (3) Such claims shall prevail against all other claims except those of prior encumbrances, and may be enforced notwithstanding that the principal money on the mortgage has not become due."
By section 100 of the Transfer of Property Act, all the provisions of the Act which apply to a simple mortgage including the provisions of section 73 of the Transfer of Property Act apply mutatis m
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