IN THE HIGH COURT OF MADRAS (FULL BENCH)
Arnold While, C.J., Davies, Benson, Bhashyam Ayyangar and Moore, JJ.
Vedapuratti and Ors.
Versus
Vallabha Valiya Raja and Ors.
Decided On : 14.02.1902
Whether, notwithstanding the institution of a suit and the passing of a decree for redemption, a subsequent suit for redemption of the same mortgage can be brought when the decree in the former suit has not been executed.
Fact of the Case:
The plaintiff's predecessor in title brought a suit to redeem a mortgage in 1889. The decree was confirmed on appeal by the District Judge and the High Court. The decree directed that on payment by the plaintiff into Court of a certain sum on or before a fixed date the defendants should deliver up to him all documents relating to the mortgaged property and retransfer the property to him, and that if such payment was not made on or before the date fixed, the property should be sold. The plaintiff did not pay within the prescribed date, and the defendants did not apply under Section 93 of the Transfer of Property Act for an order for sale. The plaintiff, after the date fixed had expired paid the money into Court and the Subordinate Judge directed the defendants to receive it and put the plaintiff in possession of the mortgaged property. Subsequently, the plaintiff was ousted from possession of the mortgaged property, and he subsequently, in 1897, filed the suit which has led to the present reference in which he, on the same cause of action as that on which the prior suit had been based, sued a second time to redeem the mortgage of 1858.
Finding of the Court:
The Full Bench held that a second suit for redemption was barred by Section 13 of the Civil Procedure Code, and that the decree in the first suit operated as res judicata.
Issues: Whether a subsequent suit for redemption of the same mortgage can be brought when the decree in the former suit has not been executed.
Ratio Decidendi: The Court held that the decree in the first suit operated as res judicata and barred the second suit. The Court reasoned that the right to redeem is inseparable from the relation of mortgagor and mortgagee, and that this relation is not extinguished until the passing of an order for foreclosure absolute or sale. However, the Court also held that the plaintiff could have applied for an extension of time to pay the mortgage money under Section 93 of the Transfer of Property Act, and that the decree was therefore capable of execution. The Court concluded that the plaintiff was not entitled to bring a second suit for redemption.
Final Decision: The Court allowed the appeal, reversed the decrees of both the lower Courts, and dismissed the suit.
Arnold White, C.J.
1. The question which has been referred in this case is whether, notwithstanding the institution of a suit and the passing of a. decree for redemption, a subsequent suit for redemption of the same mortgage can be brought when the decree in the former suit has not been executed. I take it that for the purposes of this reference the words "when the decree in the former suit has not been executed" mean when the order provided for by Section 93 of the Transfer of Property Act for foreclosing the right to redeem, or for sale, as the case may be, has not been made.
2. The view which has been generally adopted by this High Court, though the decisions are not altogether uniform, is that a second suit will lie. The Bombay and Allahabad High Courts have held otherwise.
3. The answer to the question appears to me to depend-not upon whether or not at the time of the bringing of the second suit the relation of mortgagor and mortgagee subsists between the parties, but upon whether the mortgagor is precluded, by the operation of the doctrine of res judicata, by reason of the adjudication which he has already obtained, from bringing a second suit.
4. On the construction of Sections 92 and 93 of the Transfer of Property Act it is perfectly clear that the equity of redemption remains unforeclosed, and the relation of mortgagor and mortgagee continues, until the order absolute which is contemplated by Section 93 is made. Section 92 requires the Court if the plaintiff succeeds (i.e., if the plaintiff establishes that he is entitled to the decree which by Section 92 the Court is empowered to make) to order that, if the plaintiff pays in pursuance of the order of the Court, certain things shall be done, and that if he does not pay certain legal consequences shall ensue. Section 93 provides that, if payment in pursuance of the order of the Court has not been made, the defendant may apply, and the Court shall order, that the mortgaged property be sold or the plaintiffs right to redeem be foreclosed, as the case may be; and the section expressly enacts that on the making of an order under the section the right to redeem and the security shall both be extinguished. If the right to redeem is only extinguished when an order is made under Section 93, it follows that the right is a subsisting right until the order is made. It does not, however, follow that the right is enforcible by means of a second redemption suit. It seems to me that though the right subsists the remedy is barred by operation of the rule of law which is embodied in Section 13 of the Code of Civil Procedure. The Legislature has laid down what is the "matter in issue" in a redemption suit. In order to succeed the mortgagor has to show that he is entitled be a decree ordering that if he pays off the mortgage debt in pursuance of the order of the Court, the mortgagee shall re-transfer the property and if necessary put him in possession. The matter in issue is-aye or no-is the mortgagor entitled to the decree which, if he succeeds, the Court is required by Section 92 to make. The question whether a decree under Section 92 operates as res judicata, as a final adjudication on the matter in issue between the same parties, is, as it seems to me, entirely different from the question whether such a decree is in itself capable of execution without the order absolute which is contemplated by Section 93 having been made.
5. As regards the authorities, the view which has usually prevailed in this Presidency, as already observed, has been that a second suit will lie.
6. In Sami v. Somasundram I.L.R. 6 Mad. 119 Periandi v. Angappa I.L.R. 7 Mad. 423 and Karuthasami v. Jaganatha I.L.R. 8 Mad. 478 where it was held that a second suit would lie, the decree in the first suit contained no direction that in default of payment by the mortgagor the equity of redemption should be foreclosed. In the case in which the present reference has been made the decree directed (the mortgage being a usu
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