IN THE HIGH COURT OF MADRAS
Venkataramana Rao, J.
Ramaswami Chetti
Versus
Anaiya Padayachi and Ors.
Decided On : 15.01.1936
mortgage - enforcement of mortgage bond - Transfer of Property Act, Section 83 - The court discussed the validity of the endorsement on the mortgage deed, the amount deposited in Court under Section 83 of the Transfer of Property Act, and the plaintiff's attempt to rely on an acknowledgment of liability by the mortgagor. The court also considered the permissibility of amending the plaint in second appeal and the principles governing such amendments.
Fact of the Case:
The suit arose from a mortgage bond dated 15th September 1900, with disputes over the validity of endorsements, the amount due, and the bar of limitation. The plaintiff sought to enforce the mortgage, while the defendants contested the genuineness of the endorsements and the amount deposited in Court.
Finding of the Court:
The court found that the endorsement on the mortgage deed was false, the suit was time-barred, and the plaintiff's attempt to rely on an acknowledgment of liability was not permissible. The court also refused to allow the amendment of the plaint at the late stage of second appeal.
Issues: Validity of endorsements, amount due under the mortgage, bar of limitation, permissibility of relying on an acknowledgment of liability, and the amendment of the plaint in second appeal.
Ratio Decidendi: The court held that an amendment is not permissible when it would prejudice the right of the opposite party existing on the date of such amendment. It also emphasized the importance of showing the ground upon which exemption from limitation is claimed in the plaint.
Final Decision: The court dismissed the second appeal and refused to allow the amendment of the plaint. No order as to costs was made in this Court.
Venkataramana Rao, J.
1. This second appeal arises out of a suit to enforce a mortgage bond dated 15th September 1900. It was executed by one Karuppa Padayachi, the late undivided father of defendants 1 to 3 in favour of one Devantha Chetty for Rs. 1,000. The plaintiff obtained an assignment for the mortgage on 21st August 1908. The mortgaged properties were sold in Court auction between 9th October 1918 and 31st December 1918, in execution of simple money decrees against the mortgagor and was purchased by one Krishnadesikachariar from whom the plaintiff purchased in 1924. Prior to his purchase defendant 4 was also a puisne mortgagee under two mortgages dated 1904 and 1911. As puisne mortgagee, in O. P. No. 37 of 1919 on the file of the District Munsifs Court of Cuddalore, defendant 4 deposited a sum of Rs. 2,707 into Court under Section 83, T.P. Act, in redemption of and full discharge of the suit mortgage.
2. The plaintiff contended that more was due to him but a consent memo seems to have been filed in that O. P. on 29th January 1920, Ex. D, in and by which it was agreed that without prejudice to the contentions of the parties the plaintiff might draw the amount and the plaintiff accordingly received the said amount. The suit is filed on 9th October 1930. To save the bar of limitation, he relied on a number of payments endorsed on the mortgage-deed, the last of which was on 9th October 1918. Defendants 1 to 3 were ex parte and defendant 4 pleaded that the endorsement dated 9th October 1918 was false, that the said mortgage was long ago discharged by the deposit of the amount due in the said O. P. No. 37 of 1919 and the suit was not maintainable. The learned District Munsif found the endorsement not genuine. He also found that nothing was due under the document as according to him the amount that was deposited in Court went in full discharge of the mortgage. He came to this conclusion on a construction of the document. It may be stated that the plaintiffs case is that upon a proper construction of the document interest at a particular rate should be allowed and if that was done, a considerable sum of money would be due to him and that was the amount which he claimed in the suit. It is this contention which the learned District Munsif negatived.
3. On appeal the learned Subordinate Judge concurred in the opinion of the District Munsif that the endorsement was a forgery and the alleged payment was false, but he was of opinion that the amount deposited into Court should not be taken to be in full discharge as according to his construction of the document more would be due, but however in the view he took of the endorsement he dismissed the appeal. In view of the findings of the fact that the endorsement of 9th October 1918 was not true, the suit is barred and the second appeal ought to be dismissed. But Mr. Panchapagesa Sastri contends that the suit is not barred by reason of an acknowledgment of liability by the mortgagor in Ex. C, dated 31st December 1918, executed by the mortgagor in favour of the plaintiff. That document purports to be executed in discharge of the suit mortgage for the principal amount due thereunder, the reason, for such execution being that the plaintiff had obtained an assignment of the original suit mortgage bond. It was admittedly after the Court sale of the suit properties. In the plaint, it may be stated the plaintiff did mention Ex. C, but he alleged that so far as defendant 4 was concerned he was not acting on it. It may also be pointed out that this ground of exemption now relied on has neither been stated in the plaint nor put forward in either of the two Courts but is now taken for the first time in second appeal.
4. Mr. Panchapagesa Sastri contends that he is entitled to rely on it, and at any rate, leave to amend the plaint may now be given to him. His argument is as some ground of exemption was stated in the plaint, if the plaintiff is not able to support on that ground, he can rely upon
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