Gujarat High Court
Judgename :J.M.SHETH
JAYABEN GIRJASHANKER OZA - Appellant
Versus
BHANUMATI DAMJI - Respondent
SECOND APPEAL 653 of 1961
Decided On : 02/13/1968
Transfer of Property Act – Section 73 – Civil Procedure Code – Rules 1, 12, 13 – Order 34 – Mortgage Property Issue – The respondent No. 1 Bai Bhanumati is a second mortgagee – The respondent No. 2 Harjivan is an original mortgagor a judgment-debtor One Damodar Chattrabhuj was a first mortgagee – He had filed a Civil suit against the respondent No. 2 Harjivan for recovery of his mortgage dues and he had obtained a decree for recovery of his dues for the sale of the mortgaged property – Held, The property therefore came to be sold subject to her mortgage dues – The auction-purchaser therefore paid for the interest that was sold – If the present respondent No. 1 a puisne mortgagee is allowed to proceed against the surplus sale proceeds keeping intact her right to recover the mortgage dues from the property in the bands of the purchaser which has been so kept the result would be that the mortgagor would suffer a loss and the auction purchaser would he at an advantage and would get unnecessarily a benefit to which be will not normally be entitled – That could not have been contemplated – The learned District Judge has in my opinion therefore committed an error in relying upon the aforesaid Madras decision and in coming to the conclusion that the Executing Court was wrong in allowing the attaching-creditor to get this surplus amount in preference to the puisne mortgagee respondent No. 1 – The order passed by the learned District Judge in Civil Appeal is set aside and the order passed by the Executing Court that the present appellant is entitled to the amount in dispute and the respondent No. 1 is not entitled to it is restored – Appeal Allowed
( 1 ) IN this second appeal 8 short but interesting question of law arises.
( 2 ) THE facts leading rise to this second appeal are briefly stated as under :the respondent No. 1 Bai Bhanumati is a second mortgagee. The respondent No. 2 Harjivan is an original mortgagor a judgment-debtor One Damodar Chattrabhuj was a first mortgagee. He had filed a Civil suit No. 46 of 1960 against the respondent No. 2 Harjivan for recovery of his mortgage dues and he had obtained a decree for recovery of his dues for the sale of the mortgaged property. The respondent No. 1 Bai Bhanumati in whose favour the second mortgage was executed by the said judgment-debtor was not a party to that suit. It means that the subsequent mortgagee was not a party to the suit filed by a prior mortgagee for recovery of his mortgage dues. The aforesaid suit was filed on 26th September 1960 The said first mortgagee filed a Regular Darkhast No. 290 of 1960 to recover Rs. 7 654. 01 by a sale of the mortgaged property described in the Darkhast in the Court of the Joint Civil Judge Junior Division Rajkot on 31-12-1960. He also filed Darkhast No. 295 of 1960 in the same Court for the execution of that very decree. The present appellant Bai Jayaben had filed a Civil Suit No. 839 of 1959 and had obtained a money-decree in that suit in her favour against the respondent No. 2 on 2nd September 1960 for Rs. 1 421. 21 nps. She filed a Darkhast No. 131 of 1961 against the respondent No. 2 to recover Rs. 1 589. 11 nps. for execution of the decree obtained by her by attachment of the surplus amount lying in Regular Darkhasts Nos. 290 of 1960 and 295 of 1960 which were filed by Damodar Chattrabhuj the first mortgagee against the second respondent on 17th June 1961 The learned Joint Civil Judge issued attachment warrant under Order 21 Rule 52 of the Civil Procedure Code for attaching the amount lying in the Court In the aforesaid Darkhasts. It will be proper to note at this stage that In execution of the aforesaid mortgage-decree the mortgaged properties were sold subject to the second mortgage with which we are concerned in this appeal and other subsequent mortgages also and after satisfaction of the decretal dues of the first mortgagee who had obtained a decree the surplus amount of the sale proceeds was lying in the Court and that amount was attached by the present petitioner as referred to above. The present respondent No. 1 Bai Bhanumati the second mortgagee filed an application in Darkhasts Nos. 290 and 295 of 1960 on 27th June 1961 requesting the Court to give the surplus amount lying in the said Darkhast to her as she was a second mortgagee in relation to the property which was suctioned in the said Darkhast. The said application was forwarded by the learned Civil Judge Senior Division Rajkot to the learned Judge concerned for favour of necessary action The respondent No. 1 Bhanumati gave another application on 28th June 1961 (Ex. 5 of the present proceedings of the Executing Court) in the Darkhast Sled by Damodar Chattrabhuj against Harjivan Ravjibhai stating that she was a second mortgagee and the decree-holder (first mortgagee) had been paid off and therefore she was entitled to the surplus amount lying in the Court. She also urged that the present petitioner Jayaben had filed a Darkhast No. 131 of 1961 and got this amount attached but it was not legal and she was not entitled to that amount and eventually the said amount should be given to her. The learned 3rd Joint Civil Judge Junior Division Rajkot kept this application for hearing on the date of Civil Regular Darkhast No. 131 of 1961 on 7th July 1961 The learned 3rd Joint Civil Judge Junior Division Rajkot rejected that application on the ground that Bai Bhanumati who is a second mortgagee can recover the amount from the property which has been sold. He also passed an order below the Darkhast that the surplus amount lying in the Darkhast No. 290 of 1960 be paid to the present appellant. A cheque for Rs.
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