IN THE HIGH COURT OF MADRAS
Venkataramana Rao, J.
Periakaruppa Pillai
Versus
Minor Satyanarayanamoorthi
Decided On : 27.03.1936
Redemption - Mortgage - Section 60, T.P. Act - Summary of Acts and Sections: Section 60, T.P. Act - The judgment discusses the application of Section 60 of the Transfer of Property Act, which engrafts an exception to the general rule of indivisibility of a mortgage. It highlights the interpretation of the section and its exceptions, emphasizing the rights of the mortgagor and mortgagee in cases where the integrity of the mortgage is broken. The court's decision is influenced by the recent decision of the Privy Council in Yadalli Beg v. Tukaram AIR 1921 PC 125, which clarified the rights of the mortgagor and assignees of the equity of redemption.
Fact of the Case:
The plaintiff filed a suit for redemption of a mortgage involving multiple properties. The defendant declined to accede to the plaintiff's request for redemption of the entire mortgage property and raised defenses regarding the entitlement to redeem all items and the necessity of other parties to the suit.
Finding of the Court:
The court held that the plaintiff would be entitled to redeem items 1 to 6 upon payment of the proportionate share of the mortgage amount chargeable thereon, and that the other parties were not necessary to the suit.
Issues: The main issues were the entitlement of the plaintiff to redeem the entire mortgage property and the necessity of other parties to the suit.
Ratio Decidendi: The court's decision was based on the interpretation of Section 60, T.P. Act and the recent decision of the Privy Council in Yadalli Beg v. Tukaram AIR 1921 PC 125, which clarified the rights of the mortgagor and assignees of the equity of redemption.
Final Decision: The court modified the decrees of the lower courts by directing redemption of the property purchased by the plaintiff on payment of a proportionate amount of the mortgage. Each party was directed to bear their own costs, and the plaintiff was awarded costs of the trial court from the defendant.
Venkataramana Rao, J.
1. This is a suit for redemption of a mortgage. One Muthayya Thevar mortgaged items 1 to 6 of the plaint schedule with one Krishna Iyengar who in his turn mortgaged items 1 to 7 in respect whereof he had the mortgage right and item 7 which belonged to him absolutely to the defendant under a deed of mortgage dated 7th June 1904. At a rent sale the plaintiff purchased a portion of item 3 and took symbolical delivery of the same subject to the mortgage in favour of the defendant. Then the plaintiff called upon the defendant to take a proportionate amount of the mortgage or allow him to redeem the entire mortgage (by payment of the entire mortgage amount). The defendant declined to accede to either of the courses suggested by the plaintiff. Then the plaintiff filed O.P. No. 28 of 1927 on the file of the District Munsifs Court of Ramnad and deposited a sum of Rs. 600, the amount which according to him was payable under the deed of mortgage in favour of the defendant and asked for delivery of possession of the properties but the defendant declined to receive the amount deposited in Court and the said amount still remains in the Court. One of the defences raised by the defendant was that on 10th June 1912, eight years subsequent to the mortgage in his favour, item 7 was purchased by him from Krishna Iyengar under a sale deed dated 10th June 1912 and the plaintiff cannot claim redemption of it. In pursuance of this objection the plaintiff expressed his willingness to give up his claim in respect of item 7. The defendant filed an application to implead Krishna Iyengars widow Lakshmi Ammal as party defendant being the person interested in the other items of the mortgaged property. But the Court dismissed the application on the opposition of the plaintiff.
2. The main defences of the defendant are that the plaintiff is not entitled to redeem all the items even on payment of the entire mortgage amount and that Lakshmi Ammal and her son are necessary parties to the suit. The learned District Munsif negatived both the contentions and held that the plaintiff would be entitled to redeem items 1 to 6 upon payment of the proportionate share of the mortgage amount chargeable thereon, and that Lakshmi Ammal and her son were not necessary parties to the suit. This decision was confirmed on appeal by the learned Subordinate Judge. Mr. Bhashyam Iyengar on behalf of the defendant has raised two contentions before me: (1) the integrity of the mortgage having been broken by the defendant having purchased item 7, the plaintiff is not entitled to redeem the entire mortgage property on payment of the mortgage amount but is entitled to redeem the item purchased by him on payment of a proportionate part of the mortgage amount, and (2) the suit is bad for non-joinder of Lakshmi Ammal and her son, the representatives of the mortgagor Krishna Iyengar. In regard to the first contention Mr. Bhashyam Iyengar relied on Section 60, T.P. Act, and on the decision of this High Court in Ganapathi Bhatta v. Beeru Bhandary AIR1927Mad1039 . The general rule is that a mortgage is indivisible and that where more than one person is interested in the mortgaged property or where more properties than one are comprised in the mortgage, the mortgagee is entitled to insist on redemption of the entire mortgage and neither the mortgagor nor any one of the mortgagors is entitled to redeem his share or a portion of the mortgaged property on payment of a proportionate amount. Section 60 engrafts an exception in cases, where a mortgagee, or, if there are more mortgagees than one, all such mortgagees, has or have acquired, in whole or in part the share of a mortgagor.
3. But that section does not say that if the mortgagor desires to redeem the entire mortgaged property he will be precluded from doing so. The recent decision of the Privy Council in Yadalli Beg v. Tukaram AIR 1921 PC 125 makes this position clear. In that case 16 fields were mortgaged in 1893. In
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