1996 Supreme(Mad) 856
High Court of Judicature at Madras
THE HONOURABLE CHIEF JUSTICE MR. K.A. SWAMI & THE HONOURABLE MR. JUSTICE AR. LAKSHMANAN
Sundaram
Versus
Varadaiyar
L.P.A. No. 124 of 1996 & C.M.P. No. 8657 of 1996
Decided On : 21-08-1996
Mr. Manicka K. Ramalingam, Advocate for Appellant.
A debt must be subsisting on the date of filing an application under Section 15 of the Tamil Nadu Debt Relief Act, 1972, in order for the applicant to be entitled to the benefits of the Act.
Headnote:
DEBT RELIEF ACT - SCALING DOWN OF DEBT - TAMIL NADU DEBT RELIEF ACT, 1972 - SECTION 15 - APPLICABILITY - DEBT MUST BE SUBSISTING ON THE DATE OF APPLICATION - DECREE EXECUTED AND SATISFACTION RECORDED BEFORE APPLICATION - NO DEBT DUE - NO BENEFIT UNDER THE ACT.
Fact of the Case:
The appellant filed an application under Section 15 of the Tamil Nadu Debt Relief Act, 1972, seeking to scale down a debt owed to the respondent. The appellant argued that he was entitled to the benefits of the Act as the decree had not been fully executed and the amount had not been drawn by the decree holder on the date of filing the application. The respondent contended that the decree had been fully executed, the property of the appellant had been sold in a court auction, and the sale had been confirmed and possession delivered, prior to the filing of the application.
Finding of the Court:
The court held that the appellant was not entitled to the benefits of the Act as the debt was not subsisting on the date of filing the application. The court found that the decree had been executed, the satisfaction of the decree had been recorded, and the decretal debt had stood satisfied before the filing of the application.
Issues: Whether the appellant was entitled to the benefits of the Tamil Nadu Debt Relief Act, 1972, where the decree had been executed and the satisfaction of the decree had been recorded before the filing of the application under Section 15 of the Act.
Ratio Decidendi: The court held that in order to avail the benefit of the Act, the applicant must be a debtor and the debt must be due on the date the application is filed for scaling down the debt under Section 15 (1) of the Act. A decree will be subsisting till the satisfaction of it is recorded by the Court. Debt can be considered to be due until it is discharged or till the date the creditor loses his right to recover the debt by reason of law of limitation.
Final Decision: The court dismissed the appeal, holding that the appellant was not entitled to the benefits of the Act as the debt was not subsisting on the date of filing the application.
K.A. Swami, CJ.
1. There is an unusual delay in representing the papers. Instead of troubling the respondent, on the question of condonation of delay in representing the papers, we wanted to satisfy ourselves about the merits of the case, as the appeal has been filed in time. There is a delay of 386 days in representing the papers. Hence the delay is condoned. We have heard the learned counsel for appellant on the merits of the appeal.
2. The one and the only contention urged before us is that the appellant is entitled to the benefits of the Tamil Nadu Debt Relief Act, 1972 (Tamil Nadu Act 38 of 1972) hereinafter referred to as the Act, therefore, he filed an application under Section 15 of the Act, that on the date of filing of the application the decree holder had not drawn the amount and the decree had no been fully executed. On the contrary, it was the contention of the decree holder that the application was filed only on 24. 1973; that before that date the decree was executed; that in execution of the decree the property of the judgment-debtor was sold in Court auction; that the auction purchaser deposited the amount; that the sale was confirmed; the possession was delivered and that the satisfaction of the decree was recorded, therefore, there was no decree and no debt subsisting on the date the application was filed.
3. The trial Court dismissed the petition holding that the petitioner/appellant was not a debtor. In the appeal, the learned single Judge came to the conclusion that even though the petitioner/appellant was a debtor and the trial Court had erroneously held that he was not a debtor, but on the date the application was filed, the decree had stood fully satisfied, therefore, there was no decree subsisting and there was no debt to be scaled down. The learned single Judge has followed the decision of a Division Bench of this Court in Vinsithurthan Chettiar v. The Government of Tamil Nadu , 95 L.W. 374 and distinguished a Full Bench decision of this Court in Bangaru Chettiar v. San Basha Sahib , 1976 (2) M.L.J. 171 (F.B).
4. In this background, the only point that arises for consideration is as to whether on the date the application was filed by the appellant under Sec. 15 of the Act the debt was subsisting. The Act was published in the Tamil Nadu Government Gazette on 15th December, 1972.
Clause (2) of Section 2 states: -
“ ‘debt’ means any liability in cash or kind, whether secured or unsecured, due from a debtor whether payable under a decree or order of a civil or revenue court or otherwise, but does not include rent as defined in clause (9)”
Clause 3 of Section 2 defines: -“debtor” means any person from whom any debt is due”
The proviso and explanation thereto are not relevant for our purpose in this case. Section 15 (1) of the Act provides thus:
“Where before the publication of this Act, a Court has passed a decree for the repayment of a debt, it shall, on the application of any judgment-debtor who is a debtor within the meaning of the Act, or in respect of a Hindu joint family debt, on the application of any member of the family whether or not he is the judgment-debtor or on the application of the decree-holder within six months from the date of publication of this Act, apply the provisions of this Act to such decree and shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (Central Act V of 1908) amend the decree accordingly or enter satisfaction, as the case may be:
Provided that all payments made or amounts recovered, whether before or after the publication of this Act in respect of any such decree shall first be applied in payment of all costs as originally decreed to the creditor.”
No doubt, in the instant case, the petitioner/appellant did make an application within six months from the date of publication of the Act, but on the date he filed the application there was neither a decree existing nor a debt was due. In order to avail the benefit of the Act,