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1958 Supreme(Ker) 140

Judges : KOSHI,M.S.MENON
Kannan - Appellant
Versus
Krishnan Nair - Respondent
Case No : C. M. S. A. No 75 of 1955 (M)
Decided On : 07/25/1958
Advocates Appeared :
V. P. Gopalan Nambiar; For Petitioner A. Achuthan Nambiar; V. M. B. Menon; For Respondent

The main legal point established in the judgment is the interpretation and application of the relevant provisions of the Madras Indebted Agriculturists (Temporary Relief) Act, particularly S.4, which led to the annulment of the confirmation of the sale.

Headnote:

Cancellation of Sale - Madras Indebted Agriculturists (Temporary Relief) Act - S.2, S.3, S.4 - The court discussed the relevant provisions of the Madras Indebted Agriculturists (Temporary Relief) Act, including the definition of 'debt' under S.2, the bar of suits and applications under S.3, and the stay of proceedings under S.4. The court interpreted the provisions to determine whether the confirmation of the sale was in contravention of the Act. The court held that the decree in question fell within the purview of S.4 and that the confirmation of the sale was hit by S.4, leading to the annulment of the confirmation of the sale.

Fact of the Case:

The case involved an application to cancel the confirmation of a court sale held in a suit for arrears of rent. The judgment-debtors, who were agriculturists, sought cancellation of the confirmation on the grounds that it contravened the provisions of the Madras Indebted Agriculturists (Temporary Relief) Act, 1951.

Finding of the Court:

The court found that the confirmation of the sale was in contravention of the Madras Indebted Agriculturists (Temporary Relief) Act, as the decree fell within the purview of S.4 and the confirmation was hit by S.4. Therefore, the court annulled the confirmation of the sale.

Issues: The issues involved the interpretation of the relevant provisions of the Madras Indebted Agriculturists (Temporary Relief) Act, including the definition of 'debt' under S.2, the bar of suits and applications under S.3, and the stay of proceedings under S.4. The court had to determine whether the confirmation of the sale was in contravention of the Act.

Ratio Decidendi: The court's decision was based on the interpretation of the provisions of the Madras Indebted Agriculturists (Temporary Relief) Act, particularly S.4, which led to the annulment of the confirmation of the sale.

Final Decision: The Civil Miscellaneous Second Appeal was allowed, and the court annulled the confirmation of the sale ordered by the execution court.

Judgment :-

1. This Civil Miscellaneous Second Appeal arises out of an application to cancel the confirmation of a court sale held on 25-1-1954 in O.S. No. 590 of 1950 on the file of the District Munsiff of Hosdrug. The sale took place pursuant to a final decree passed in a suit for arrears of rent wherein a charge was claimed on the leasehold interest. When the judgment-debtors the appellants herein, committed default in paying the debt within the time specified by the preliminary decree, the decree-holder (Respondent 1) applied for and obtained a final decree directing the sale of the leasehold interest. Subsequently he took out execution seeking to sell that interest and at the sale held on 25-1-1954, respondent 2 to this appeal, a stranger, purchased it. The court confirmed the sale on 1-3-1954 and the application giving rise to the appeal was filed on 2-4-1954. The ground on which cancellation of the confirmation was sought was that it was done in contravention of the provisions of the Madras Indebted Agriculturists (Temporary Relief) Act. 1951 (Act V of 1954) which came into force on 6-2-1954. The sale took place before the Act was enacted, but the confirmation was subsequent to the Act. Likewise the full amount of the purchase-money was made good only after the Act, namely on 8 -2-1954. The two lower courts, namely the Court of the District Munsiff of Hosdrug and the Court of the District Judge of South Kanara, negatived the claim of the judgment-debtor to have the confirmation of the sale cancelled. This Civil Miscellaneous Second Appeal was therefore filed before the High Court of Madras and consequent on the reorganisation of the States the appeal was transferred to the file of this court.

2. The appeal first came up for hearing before Kumara Pillai, J. who referred it for decision by a Division Bench as it raised questions of law which were uncovered by any decision of this Court. What we have to decide here is whether the lower courts went wrong in refusing; to cancel the confirmation. Admittedly the two appellants are 'agriculturists' within the meaning of Madras Act V of 1954. Before the lower courts it was however, contended on behalf of the auction-purchaser that S.4 of the Act relating to Stay of Proceedings' contained no inhibition against the confirmation of a court sale which had taken place before the Act came into force. That contention found favour with the District Munsiff as also with the District Judge. The appellants' learned counsel challenged the correctness of that view while on behalf of the auction purchaser it was strenuously contended that the view was right. A further argument was raised on behalf of the purchaser that S.4 had no application to the case inasmuch as the decree pursuant to which the sale was held was not'a decree for payment of money passed in a suit for the recovery of a debt', as required therein.

3. For a proper appreciation of the two questions mentioned above it is necessary to look into the relevant provisions of the Act. S.2 clause (b) defines a'debt' and that definition is in these terms:

"debt' means any sum of money which a person is liable to pay under a contract (express or implied) for consideration received and includes rent in cash or kind which a person is liable to pay or deliver in respect of the lawful use and occupation of land."

There is an explanation added to it and that is as follows:

"Explanation.- It is immaterial that the sum or produce is recoverable only by sale of property in enforcement of a mortgage or charge or that the contract was entered into by the person's predecessor-in-title or by the manager of the joint Hindu family or the karnavan of the tarwad or tavazhi or the yajaman of the kutumba or kavaru of which such person was or is a member".

Section 3 relates, to "Bar of suits and applications" and the section reads:

"No suit for the recovery of a debt shall be instituted, no application for the execution of a decree for payment of money passed



















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