IN THE HIGH COURT OF MADRAS
Alfred Henry Lionel Leach, C.J.
K. Vengannan Chettiar and Sons, through Managing Partner K.V. Muthukrishna Chettiar
Versus
N. Ramaswami Pillai
Decided On : 23.02.1943
Limitation - Mortgage - Section 14 of the Limitation Act - Sub-mortgagee's right to relief - Amendment of plaint - Cause of action
Fact of the Case:
The plaintiff lent a sum of money on the security of a sub-mortgage. After amending the plaint to abandon the claim for the sale of certain properties, the plaintiff faced a limitation issue raised by the fifth defendant.
Finding of the Court:
The Subordinate Judge found that the plaintiff acted in good faith and was entitled to the benefit of Section 14 of the Limitation Act. However, the appeal was allowed, and the decree of the Subordinate Judge was restored with costs throughout.
Issues: The main issue was whether the amendment made in the plaint changed the plaintiff's cause of action and affected the application of Section 14 of the Limitation Act.
Ratio Decidendi: The court held that the plaintiff's cause of action remained the same despite amending the plaint to abandon certain reliefs. The cause of action was still based on the sub-mortgage, and the amendment did not change it.
Final Decision: The appeal was allowed, and the decree of the Subordinate Judge was restored with costs throughout.
Alfred Henry Lionel Leach, C.J.
1. The only question in this appeal is one of limitation. On the 20th April, 1933, the plaintiff lent to the first and second defendants a sum of Rs. 2,000 on the security of a sub-mortgage of three separate mortgages, executed by the third, fourth and fifth defendants respectively in favour of the second defendant, i The first of these mortgages was executed by the third defendant on the 22nd July, 1927, to secure a sum of Rs. 3,500, the second on the 5th January, 1923, by the fourth defendant to secure Rs. 750 and the third on the 30th June, 1925, by the fifth defendant to secure Rs. 1,000. On the 29th June, 1937, the plaintiff instituted in the Court of the District Munsiff of Dindigul a suit to recover the amount due to him by the first and second defendants in respect of the sub-mortgage. As he had the right to do, he asked for the sale of the mortgaged property. On the 6th June, 1938, the plaint was returned to him for presentation to the Subordinate Judge. In Vellavan Chettiar v. Mahalinga Pallian AIR1938Mad30 , this Court had held that when a sub-mortgagee sues for the sale of the properties mortgaged to his mortgagor he must pay a court-Ice based on the amount due on the original mortgage and not merely on the amount due in respect of his sub-mortgage.
2. In these circumstances the plaintiff decided to abandon his claim for the sale of the properties mortgaged by the third and fourth defendants. He was content to ask for the sale of the property mortgaged by the fifth defendant and for the sale of the " mortgage right" of the second defendant so far as it concerned the other two properties. By abandoning the claim for the sale of the properties mortgaged by the third and fourth defendants the valuation of the suit became sufficiently low to allow the suit to be instituted in the District Munsiffs Court. Having amended the plaint the plaintiff on the day on which it was returned to him re-presented it to the District Munsiff. By the 6th June, 1938, more than twelve years had elapsed from the date of the mortgage created by the fifth defendant, who then pleaded that the suit so far as he was concerned was barred by the law of limitation. This plea was accepted by the District Munsiff who dismissed the suit so far as the fifth defendant was concerned, but granted a decree against the first and second defendants for the amount due under the sub-mortgage. In the event of the decretal amount not being paid he directed that the sub-mortgage. should be sold. The plaintiff appealed to the Subordinate Judge, who held that the suit was not barred against the fifth defendant. Thereupon the fifth defendant appealed to this Court. His appeal was heard by Chandrasekhara Aiyar, J., who agreed with the District Munsiff and accordingly allowed the appeal. The learned Judge having given the necessary certificate, this appeal has been filed from his judgment under the provisions of Clause 15 of the Letters Patent.
3. It was found by the Subordinate Judge that in instituting his suit originally in the District Munsiffs Court, the plaintiff acted in good faith and therefore he was entitled to the benefit of Section 14 of the Limitation Act. Chandrasekhara Aiyar, J., agreed that the plaintiff had acted in good faith but he considered that by the amendment made in the plaint the plaintiff had changed his cause of action. The plaintiff says that there was no change in the cause of action, but only a change in the reliefs asked for and that this has not been appreciated by the learned Judge. We consider that the contention is well founded.
4. The plaintiff, both in the plaint as it originally stood and in the plaint as amended, was suing on his sub-mortgage. The right to relief arose from the fact that he was the sub-mortgagee and the failure of the sub-mortgagor to pay his debt was his cause of action. A sub-mortgagee has two courses open to him. He can, if he wishes, limit his suit to the sub-mortgagor, in
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