1985 Supreme(Raj) 424
RAJASTHAN HIGH COURT AT JAIPUR BENCH
Guman Mal Lodha, J.
Nathulal & ors. - Appellant
Versus
Nandlal - Respondent
S.B. Civil Regular Second Appeal No. 202 of 1972.
Decided On : 15-04-1985
Delivery of possession in the case of an unregistered mortgage under Section 59 of the Transfer of Property Act, 1882, can be made at a time subsequent to the execution of the mortgage.
Headnote:
MORTGAGE - TRANSFER OF PROPERTY ACT, 1882 - SECTION 59 - DELIVERY OF POSSESSION - INTERPRETATION - DELIVERY OF POSSESSION NOT CONTEMPORANEOUS WITH EXECUTION OF MORTGAGE - VALIDITY OF MORTGAGE.
Fact of the Case:
Plaintiff filed a suit for redemption of mortgage against the defendants, claiming to be the legal representative and heir of the deceased mortgagor. The defendants denied the mortgage and claimed ownership of the property by adverse possession. The trial court dismissed the suit, holding that the plaintiff failed to prove the execution of the gift deed and that he was not entitled to redeem the property as he was not the nearest heir of the mortgagor. The first appellate court reversed the trial court's decision and decreed the plaintiff's suit for redemption of mortgage.
Finding of the Court:
The High Court held that the mortgage in question was valid even though there was no registered mortgage deed and the delivery of possession was not contemporaneous with the execution of the mortgage. The court interpreted Section 59 of the Transfer of Property Act, 1882, which requires delivery of possession in the case of an unregistered mortgage, to mean that delivery of possession can be made at a time subsequent to the execution of the mortgage.
Issues: 1. Whether the mortgage in question was valid even though there was no registered mortgage deed and the delivery of possession was not contemporaneous with the execution of the mortgage. 2. Whether the plaintiff was entitled to redeem the property as he was not the nearest heir of the mortgagor.
Ratio Decidendi: The court held that the phraseology of Section 54 and 59 of the Transfer of Property Act is similar and that the consensus of the views of the various High Courts is that the phraseology, 'delivery of property' shall be given intelligible meaning and should not be made rule of thumb. If a person is already in possession and a mortgage is created for an amount less than hundred rupees by an unregistered document then he can avail of that possession after fulfilling the requirement of Section 59 of the Transfer of Property Act.
Final Decision: The High Court dismissed the appeal and upheld the judgment of the first appellate court, which had decreed the plaintiff's suit for redemption of mortgage.
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