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1941 Supreme(Mad) 22

IN THE HIGH COURT OF MADRAS
Patanjali Sastri, J.
Arunachalam Pillai
Versus
Seetharam Naidu and Ors.
Decided On : 23.01.1941

The Madras Agriculturists Relief Act applied to limit the decree for sale against a non-agriculturist Court auction purchaser, scaling down the debt in accordance with its provisions.

Headnote:

mortgage - enforcement of mortgage against non-agriculturist Court auction purchaser - Madras Agriculturists Relief Act - Section 8 - [Section 8] - The court discussed the applicability of the Madras Agriculturists Relief Act in a case where a mortgagee sought to enforce the mortgage against a non-agriculturist Court auction purchaser. The court held that the Act applied, and the debt was liable to be scaled down in accordance with its provisions, limiting the decree for sale to the scaled-down amount of the debt against the non-agriculturist purchaser.

Fact of the Case:

The appellant brought a suit for recovery of Rs. 8,500 by the sale of mortgaged properties. The Madras Agriculturists Relief Act came into force, and the mortgagors claimed to have the debt scaled down under its provisions. The appellant relinquished his personal remedy against the mortgagors, seeking a decree for sale of the properties in the hands of a non-agriculturist Court auction purchaser.

Finding of the Court:

The court found that the Act applied, and the debt was liable to be scaled down, limiting the decree for sale to the scaled-down amount of the debt against the non-agriculturist purchaser.

Issues: The main issue was whether the Madras Agriculturists Relief Act applied to limit the decree for sale against a non-agriculturist Court auction purchaser.

Ratio Decidendi: The court held that the Act applied, and the debt was liable to be scaled down in accordance with its provisions, limiting the decree for sale to the scaled-down amount of the debt against the non-agriculturist purchaser.

Final Decision: The appeal was dismissed with costs of respondent 12.

JUDGMENT

Patanjali Sastri, J.

1. The question raised in this appeal is whether a mortgagee who sues to enforce his mortgage is entitled to a decree for the whole amount due under the mortgage against a non-agriculturist Court auction purchaser of the equity of redemption when the agriculturist mortgagor claims to have the debt scaled down under the provisions of the Madras Agriculturists Relief Act. The appellant brought the suit out of which this appeal arises in August, 1937, for recovery of Rs. 8,500 by the sale of the mortgaged properties on foot of a mortgage executed by the managers of the joint family of respondents 1 to 8 (hereinafter referred to as the mortgagors) for Rs. 5,000 on 29th October, 1931. Respondents 9 to 11 are subsequent encumbrancers in respect of one of the properties comprised in the mortgage, and respondent 12 is the purchaser of all the properties subject to the mortgage in execution of a decree for money obtained by a third party against the mortgagors. While the suit was pending, the Madras Agriculturists Relief Act came into force on 22nd March, 1938, and the mortgagors were allowed to file an additional written statement on 4th August, 1938, raising the plea that they were agriculturists as defined by the said Act and that the debt was liable to be scaled down in accordance with the provisions thereof. The appellant filed on 12th August, 1938, a reply statement , whereby he relinquished his personal remedy against the mortgagors, confining the relief sought in the suit to a decree for sale of the properties in the hands of respondent 12. There is no dispute that all the respondents except respondent 12 are agriculturists within the meaning of the Act and that the amount due as scaled down under Section 8 is Rs. 3,050. The learned Subordinate Judge of Madura who tried the suit overruled the contention of the appellant that the debt should not be scaled down under the Act so far as the twelfth respondent was concerned and passed a preliminary decree for sale for the sum of Rs. 3,050 with interest thereon from 1st October, 1937, against all the respondents.

2. It is argued for the appellant that inasmuch as all the mortgaged properties are now in the hands of the twelfth respondent who is not an agriculturist and a decree is sought only against such properties, the Act has no application and a decree for sale for the full amount due under the mortgage ought to be passed against the twelfth respondent. In support of this contention, reliance is placed by learned counsel upon the decision reported in Ramier v. Srinivasiah AIR1941Mad204 , where it was accepted as a general proposition that the right of an agriculturist judgment-debtor to scale down a decree should not be allowed to enure for the benefit of a non-agriculturist judgment-debtor. That was a case where the mortgagor was not an agriculturist and the puisne mortgagee who claimed the benefit of the Act was an agriculturist and it was held, in view of an earlier decision, that the pusine mortgagee must be regarded as a debtor within the meaning of the Act and, being an agriculturist, was entitled to have the debt scaled down so far as his interest in the hypotheca was concerned, notwithstanding that it was payable in full by the non-agriculturist mortgagor. It is undoubtedly true that agriculturist debtors alone are entitled to the relief provided in the Act which does not contemplate any scaling down of debts due by others, but it does not follow that a non-agriculturist debtor can in no circumstances be benefited by the scaling down of a debt under the provisions of the Act. The properties now held by the twelfth respondent are liable only as security for the debt due by the mortgagors, and if as a result of the Act there is a statutory discharge or reduction of the debt, the properties cannot, it seems to us, be proceeded against for anything more than the scaled down amount of the debt. S. 8 of the Act so far as it is material here says:

Debts




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