IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mr. P.V. Rajamannar, Chief Justice and Mr. Justice Panchapakesa Ayyar
The Canara Banking Corporation Ltd.
Versus
The South Indian Bank Ltd., Shevapet, Salem,
Appeal Nos. 299 and 746 of 1953.
Decided On : 02 August 1957
The learned Subordinate Judge who tried the suit held that the suit mortgage was true and valid, that it was binding on the second defendant’s share as well in the suit properties,and that the third defendant was not entitled to priority over the plaintiff. The learned Judge found that the amount claimed by the plaintiff was correct and on his above finding passed a preliminary decree against defendants I and 2 for sale of the mortgage properties described in the plaint schedule, except one item which had been given up by the plaintiff, for recovery of the amount due to the plaintiff with subsequent interest and costs. A.S. No. 299 of 1953 is by the third defendant, and A. S. No. 746 of 1953 is by the second defendant.
A.S. No. 299 of 1953: The only question for determination is whether the appellant-third defendant is entitled to claim priority over the plaintiff on any ground. [After considering the facts and circumstances the Court concluded:]
Admittedly the mortgage in favour of the third defendant is of a subsequent date. The third defendant is not, therefore, entitled to priority.
As this is the only contention urged by learned counsel for the appellant-third defendant, and that contention fails, A.S. No. 299 of 1953, must be and is hereby dismissed with costs of the plaintiff-respondent.
The other appeal, A.S. No. 746 of 1953, by the second defendant raises an interesting question of law on which there is not much of decided authority. It involves the question raised by the second defendant that the suit debt was incurred for a new business started, by his father, the first defendant, which was not an ancestral business and, therefore, the suit mortgage was not binding on him or his share of the joint family properties. The second defendant was born on 30th October, 1947. He was therefore in his mother’s womb in July, 1947, when the mortgage in favour of the plaintiff was created. Prima facie therefore, he would be entitled to challenge the validity of the alienation in favour of the p
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