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IN THE HIGH COURT OF MADRAS
Leach, C.J.
Calicut Bank Ltd. in Liquidation by Official Liquidators
Versus
Smt. C. Radhalakshmi
Decided On : 15.09.1944
Madras House Rent Control Order, 1941 - Execution Proceedings - Possession of House Property
Fact of the Case:
The P and O Banking Corporation obtained a mortgage decree against C. Unnithiri, including his minor children as defendants. The Bank of Calicut held a second mortgage on the property, including the house where the respondent and her children lived. The Official Liquidator purchased the house in execution of the mortgage decree, and the minors filed a case challenging the sale.
Finding of the Court:
The Court considered whether the provisions of the Madras House Rent Control Order, 1941, must be regarded in execution proceedings related to the possession of house property. The application for an interim injunction against the Official Liquidator was dismissed, and an appeal was also dismissed.
Issues: The main issue was whether the Court must consider the provisions of the Madras House Rent Control Order, 1941, in execution proceedings related to the possession of house property.
Ratio Decidendi: The Court held that it was necessary to consider the provisions of the Madras House Rent Control Order, 1941, when deciding in execution proceedings an application with regard to the possession of house property.
Final Decision: The Court dismissed the application for an interim injunction against the Official Liquidator and upheld the dismissal of the appeal.
Leach, C.J.
1. The question here is whether a Court must have regard to the provisions of the Madras House Rent Control Order, 1941, when deciding in execution proceedings an application with regard to the possession of house property. In O.S. No. 25 of 1938 in the Court of the Subordinate Judge of South Malabar the P and O Banking Corporation Limited obtained a mortgage decree for a large sum of money against one C. Unnithiri. Certain members of the mortgagors family, including his three children, who were minors, were made defendants. The minors were represented by their mother Radhalakshmi, the respondent in this appeal. The Bank of Calicut Limited which is now in liquidation held a second mortgage on the properties of which one was the house in which the respondent and her children were living. At the sale held on 4th January 1943 in execution of the mortgage decree the Official Liquidator of the Calicut Bank Ltd., (hereinafter referred to as the Official Liquidator) purchased the house for the sum of Rs. 52000. The sale was confirmed on 6th February 1943. Through their mother as their next friend the minors filed O.S. No. 6 of 1943 in which they challenged the right of the mortgagees to sell the house and certain other properties. In the course of the proceedings they applied for an interim injunction against the Official Liquidator restraining him from taking possession of the house and from seeking confirmation of the sale. This application was dismissed by an order dated 11th March 1943. An appeal followed, but this was also dismissed.
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