SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1936 Supreme(Mad) 191

IN THE HIGH COURT OF MADRAS
Pandrang Row, J.
C.V. Ramachandra Ayyar
Versus
N.V. Sivaram Ayyar and Ors.
Decided On : 04.05.1936

The absence of a covenant to pay the shares of the co-mortgagees separately renders a suit by one of several co-mortgagees for his share of the mortgage money not maintainable.

Headnote:

Mortgage - Suit by one of several co-mortgagees - Evidence Act - Section 92 - [Evidence Act, Section 92] - The court discussed the maintainability of a suit by one of several co-mortgagees for his share of the mortgage money. The judgment highlighted the absence of a covenant to pay the shares of the co-mortgagees separately and the intention of the parties that there should be no separate payment till the entire amount was recovered and then that amount was to be shared between the co-mortgagees either in full according to their shares or proportionately. The court referred to various decisions and established the general principle that unless there is a covenant to pay the amount due to any particular co-mortgagee separately, there can be no suit for a share of the mortgage money.

Fact of the Case:

The suit was for the recovery of the amount due to the plaintiff on a mortgage bond by sale of the mortgaged property. The main ground of resistance was that the arrangement relied on by the plaintiff cannot be proved and that the suit being for recovery of only a portion of the mortgage money by one of several co-mortgagees was not sustainable.

Finding of the Court:

The court found that the suit by one of several co-mortgagees for his share of the mortgage money was not maintainable as there was no covenant to pay the shares of the co-mortgagees separately and the intention of the parties was that there should be no separate payment till the entire amount was recovered and then that amount was to be shared between the co-mortgagees either in full according to their shares or proportionately.

Issues: The main point for determination was whether the suit as framed is maintainable, namely suit by one of several co-mortgagees for his share of the mortgage money.

Ratio Decidendi: The absence of a covenant to pay the shares of the co-mortgagees separately and the intention of the parties that there should be no separate payment till the entire amount was recovered and then that amount was to be shared between the co-mortgagees either in full according to their shares or proportionately rendered the suit not maintainable.

Final Decision: The court dismissed the appeal and upheld the finding that the suit by one of several co-mortgagees for his share of the mortgage money was not maintainable.

JUDGMENT

Pandrang Row, J.

1. This is an appeal from the order of the Subordinate Judge of Madura, dated 15th April 1935 in an appeal from the decree of the District Munsif of Madura town dated 17th July 1933 in O.S. No. 270 of 1932, a suit for the recovery of the amount due to the plaintiff on a mortgage bond by sale of the mortgaged property. The mortgage was executed by defendants 1 and 2 who were carrying on trade in partnership. As the plaint recites defendants 1 and 2 incurred debts in the course of that trade and owed to various persons various amounts and as a result of an arrangement between the creditors and the debtors a mortgage, Ex. A, was executed by them on 26th November 1925 in favour of the creditors including the plaintiffs. The plaintiff alleges that his share of the mortgage money was fixed at Rs. 1,100. The total amount of the mortgage was Rs 19,950. Subsequently defendants 1 and 2 were adjudged insolvents and the Official Receiver was impleaded as defendant 11. Defendants 4, 6 and 8 to 10 are said to have assigned their mortgage rights under Ex. A to defendant 3 who is also a mortgagee. Defendant 5s right under the mortgage is said to have been purchased by defendant 3 in the name of defendant 12 and defendant 7s share is said to have been also got by defendant 3 in the name of defendant 13. The plaintiff contended that the arrangement between the creditors and the debtors was that each of the creditors was to be paid the amount due to him by the debtors.

2. He also pleaded that some time after the mortgage was executed, when he made a demand for payment of his share defendants 1 and 2 agreed to pay him his share separately. The main ground on which the suit was resisted by the contesting defendants was that the arrangement relied on by the plaintiff cannot be proved and that the suit being for recovery of only a portion of the mortgage money by one of several co-mortgagees was not sustainable. The District Munsif dismissed these contentions and passed a preliminary decree in the usual form for sale of the mortgaged property and directed that the amount realised by sale would be subject to further orders of the Court" to be obtained by an application by the plaintiff or defendant 3. On appeal by defendant 3 the Subordinate Judge came to the conclusion that the suit for a portion of the mortgage due to one of several co-mortgagees was not sustainable and that the agreements pleaded in the plaint, whereby it is said the mortgagors agreed to pay the plaintiffs share separately, could not be proved in view of Section 92, Evidence Act. He accordingly allowed the appeal and set aside the preliminary decree passed by the trial Court and remanded the suit to the trial Court with a direction that the plaint should be returned to the party for presentation to the proper Court after giving a chance to the plaintiff to amend his plaint. The present appeal is from that order.

3. The main point for determination in this appeal is whether the suit as framed is maintainable, namely suit by one of several co-mortgagees for his share of the mortgage money. No doubt in this suit the prayer is for the sale of the entire hypotheca and the other co-mortgagees have been impleaded as defendants. No objection can therefore be taken to the maintainability of the suit on the ground that the other co-mortgagees are not parties or on the ground that the prayer is for the sale of only a part of the mortgaged property. The objection is really based on the ground that there was no covenant in the deed for payment of separate amounts or fractions of the mortgage money to the co-mortgagees separately. The stipulation in Ex. A is for payment of the entire amount and in the operative part of the document it is not stated that any particular amount is to be paid to any particular co mortgagee. It is only in the account of particulars of money received that it gives the various amounts received from the various creditors separately making up the t


Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top