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1971 Supreme(Ker) 185

Judges : SIKRI,RAY,PALEKAR
LUKA MATHAI - Appellant
Versus
SUBRAMONIA IYER - Respondent
Case No : C. A. No. 542 of 1967 (in Review Petition 35 of 1970)
Decided On : 10/06/1971
Advocates Appeared :
For

The main legal point established in the judgment is that the loans granted under Regulation IX of 1094 could be recovered from the borrower personally, and the sale of properties not specifically given as security under the bond was authorized under relevant regulations and acts.

Headnote:

Regulation IX of 1094 - Recovery of land improvement loans - Travancore Revenue Recovery Act I of 1068 - Sale of properties - Personal liability of borrower

Fact of the Case:

The court allowed Civil Appeal No. 542 of 1967, set aside the judgment of the High Court, and passed a decree in favor of the appellant after modifying the decree passed by the Trial Court. The respondent filed a Review Petition for review on the ground that they had failed to bring to the notice of the Court the provisions of Travancore Regulation IX of 1094 and the fact that the loans were granted under the above Regulation. The only new point for discussion was the effect of the provisions of Travancore Regulation IX of 1094 on the court's previous conclusion. The court had held that the properties sold were not given as security under the bond and the Government had no authority to sell them. The respondent contended that the sale of the properties was unauthorized, illegal, and void.

Finding of the Court:

The court found that the loans granted under Regulation IX of 1094, interest, and charges could be recovered in any of the four modes described in the section, including from the borrower personally. The court disagreed with the appellant's contention that the sale of the properties was unauthorized, illegal, and void. The court cited previous judgments and legal provisions to support its finding.

Issues: The issues revolved around the authority of the Government to sell properties not specifically given as security under the bond, the personal liability of the borrower, and the interpretation of relevant regulations and acts.

Ratio Decidendi: The court held that the loans granted under Regulation IX of 1094 could be recovered from the borrower personally, and the sale of the properties was not unauthorized, illegal, or void. The court cited legal provisions and previous judgments to support its decision.

Final Decision: The appeal was dismissed, and the parties were ordered to bear their own costs throughout. The court's previous order awarding Rs. 1500 to the appellant as thrown away costs was upheld.

Judgment :-

1. By Judgment dated May 26,1970, this Court (Sikri J., as he then was, and Ray J.) allowed Civil Appeal No. 542 of 1967, set aside the judgment of the High Court and passed a decree in favour of the appellant after modifying the decree passed by the Trial Court. The respondent subsequently filed Review Petition No. 35 of 1970 for review on the ground that they bad failed to bring to the notice of the Court the provisions of Travancore Regulation IX of 1094 and the fact that the loans were granted under the above Regulation. We allowed review on February 1, 1971. This judgment is, however, in continuation of our earlier judgment dated May 26, 1970.

2. The only new point which needs discussion is the effect of the provisions of Travancore Regulation IX of 1094 on our conclusion on the fourth point in that judgment.

3. We had inter alia held that the "fourth point raised by the learned counsel for the plaintiff is fata! for the respondent." We observed that "the bonds do not give power to the Government to sell the properties other than those mentioned in the bond. The properties mentioned in plaint A schedule items 2 to S, B Schedule items 1 and 3 to 8; and C schedule items were not given as security under the bond and the Government bad no authority to sell them. It is conceded on behalf of the respondent that all the properties were sold in one lot. This, in our opinion, vitiates ... that the sale of all the properties was void." The fourth point raised before us was that "the Government had no authority to attach and sell plaint A schedule items 2 to 5 and B Schedule items 1 and 3 to 8 and C schedule items, which were not given as security under the bonds; and if the Government had no authority then the sale of all the properties is void." We had while dealing with the third ground also observed that "no other regulation has been brought to our notice which makes dues under this bond to be recoverable as arrears of public or land revenue."

4. It now transpires that Regulation IX of 1094 Travancore Land Improvement & Agriculural Loans Regulation provides for recovery of land improvement loans from the borrower as if they were arrears of land revenue due by him. S.7 of the above Regulation provides:

7(1) Subject to such Rules as may be made under S.10, all loans granted under this Regulation, all interests (if any) chargeable thereon and costs (if any) incurred in making the same shall When they become due, be recoverable in any of the following modes:

(a) from the borrower as if they were arrears of land revenue due by him;

(b) from his surety (if any) as if they were arrears of land revenue due by him;

(c) except as regards the loans referred to in S.4, out of the land for the benefit of which the loan has been granted as if they were arrears of land revenue due in respect of that land; (d) out of the property comprised in (he collateral security according to the procedure for the realisation of land revenue by sale of immovable property other than the land on which the revenue is due:

Provided that no proceeding in respect of any land under Clause (c) shall affect any interest in that land which existed before the date of the order granting the loan, other than the interest of the borrower, and of mortgagees of, or persons having charges, on. that interest, and. where the loan is granted under S.3 with the consent of another person, the interest of that person, and of mortgagees of, or persons having charges on, that interest.

(2) When any sum due on account of any such interests or costs is paid by a surety or an owner of property comprised in any collateral security, or recovered from a surety or out of any such property, such sum shall, on the application of the surety or the owner of such property be recovered on his behalf from the borrower or out of the land for the benefit of which the loan has been granted, in manner provided in this Section."

From these provisions it is quite clear that the loans granted under th











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