FEDERAL COURT
H.J. Kania, Chief Justice, S. Fazl Ali, Mehrchand Mahajan and B.K. Mukherjea, JJ.
Thota China Subba Rao and nine others
Versus
Mattapalli Raju and twelve others
Civil Appeals Nos. II and III of 1948.
Decided On : 10 May 1949
On the 2nd January, 1914, the mortgagor acting for himself and as the guardian of his undivided minor son granted a mortgage of 51.20 acres of Inam lands along with other lands (which need not be hereafter referred to as they were later on disposed of by consent of parties) to secure a sum of Rs. 30,000 lent by the mortgagees. In respect of the suit lands it was a non-possessory mortgage. On the 27th November, 1915, he executed another mortgage with possession of the suit lands for Rs. 4,000, but as the lands were in the occupation of the lessees under a lease for 15 years from F.1320 to 1334 (1910-11 to 1924-25) at an annual rent of Rs. 1,000 it was stipulated that the mortgagees were to receive the rent from the lessees and to take possession of the lands on the expiry of the lease. On the 31st July, 1916, there was a further mortgage of the suit lands along with two other properties to the mortgagees for Rs. 4,000. In that deed it was provided, inter alia, that on the expiry of the lease at the end of F.1334 (30th June, 1925) the mortgagees should take possession of the suit lands and pay a rent of Rs. 4,000 per annum from F.1335. It was further provided that after payment of the revenue and taxes payable in respect of the lands, the balance should be applied first in reduction of the debt due under the mortgage of 1915, next in discharge of the principal and interest due under the bond of 1916 and thereafter towards the interest due under the first mortgage of 1914. The mortgagees were however to relinquish the lands irrespective of the terms of the lease, whenever the mortgagor paid the amounts due under all the mortgages.
As provided in the mortgage of 1915, the lessees paid the rent to the mortgagees till 1922 when the mortgagor alleging that the mortgages had all been discharged demanded rent from the lessees for himself. The lessees accordingly paid rent for the subsequent period to the mortgagor till the expiry of the lease in June, 1925. The lease was thereafter renewed by the mortgagor at first for one year and thereafter for 10 years by a registered document. In view of the repudiation of their rights, the mortgagees brought a suit against the lessees in 1926 to recover possession and arrears of rent from 1922 till 1925 and for mesne profits thereafter till possession was given. They contended that the mortgages had not been fully discharged and they were entitled to possession under the mortgages of 1915 and 1916. In that suit several interlocutory orders were passed under one of which the mortgagor was added as a party. The litigation appears to have taken an unduly long time and ultimately a a preliminary decree for sale was passed on the 31st October, 1942. The mortgagees filed an appeal against that decree to the High Court.
As a counter-move to the mortgagees suit, in 1929 the mortgagor filed a suit to redeem and to recover possession of the mortgaged properties, offering to pay what was due under the mortgages.After the hearing of the suit had proceeded to some extent, it was dropped as it was thought that the parties had settled their disputes. The compromise is now contended by the mortgagees to be evidenced by two documents dated the 7th November, 1932.The first document executed by the mortgagor is an agreement in favour of the mortgagees. It stated that having regard to the fact that the debts due to the mortgagees under the different mortgages executed by the mortgagor cannot be fully satisfied from the properties and to prevent the mortgagees from recovering the balance from the other pro
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.