IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mr. Justice Mack and Mr. Justice Krishnaswami Nayudu, JJ.
A. Bacha Saheb.
Versus
Nariman K. Irani.
A.A.O. Nos.501, 502, 552 and 553 of 1954.
Decided On : 27 January 1955
My learned brother has made some interesting observations on the powers of private sales by mortgagees under sections 69 and 69-A of the Transfer of Property Act as amended by Act XX of 1929 being abused by mortgagees in conditions prevailing in India which are rather different from those in the United Kingdom at the time of the English Conveyancing and the English Property Act of 1925, in the light of which Act XX of 1929 was enacted. This is unfortunately true and not the only instance in which advanced English legislation has been made applicable to India without regard to Indian conditions and the machinery available here, with unfortunate results. The abuse has not however been one-way traffic, and mortgagors also show sometimes reciprocal resourcefulness in suits for injunctions, paying practically no court-fee in the lowest Court of civil jurisdiction to restrain bona fide honest mortgagees from exercising their powers of sale on some ground or other. I am in substantial agreement with my learned brother on the desirability for amended legislation to minimise, if not, avoid, abuse by a statutory provision for a right to a mortgagor, when served with notice of sale under section 69 (2), to apply to the Court having jurisdiction to have the sale held through a commissioner appointed by the Court, acting under the Court’s control and instructions, on a reasonable fixed court-fee, the resulting sale, of course paying the full stamp duty as in a private sale. It also appears necessary for the Court-fees Act to be radically amended so as to make it impossible for mortgagors to file injunction suits valued by them at will in any but the Court having jurisdiction to try suits arising out of the mortgage itself.
Krishnaswami Nayudu, J.-These appeals arise out of the two applications filed by the plaintiffs before the 2nd Additional City Civil Judge, Madras in O.S. Nos.980 and 996 of 1954 for an order of temporary injunction restraining the mortgagees, defendants 1 and 2, from bringing certain properties to sale in pursuance of a power of sale under section 69 of the Transfer of Property Act.
The properties sought to be brought to sale consist of two Cinema houses, one in the City and another at Pallav
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