IN THE HIGH COURT OF MADRAS
Patanjali Sastri, J.
Vasudevan Nambudri
Versus
Raman Nambudri
Decided On : 11.09.1940
Section 15 - Madras Agriculturists Relief Act - Ex. A - Section 15 of Madras Act IV of 1938 - The court discussed the applicability of Section 15 of the Madras Agriculturists Relief Act to the surplus reserved as payable to the mortgagor under a possessory mortgage after appropriating part of the usufruct in lieu of interest due on the mortgage money. The court held that the amount payable under Ex. A is not rent in the proper sense of the term and does not fall within the scope of Section 15 of the Madras Agriculturists Relief Act.
Fact of the Case:
The petitioner's predecessor-in-interest held lands on a kanom granted by the respondent. A possessory mortgage was executed, and the petitioner, who purchased the mortgagee's rights, claimed the benefit of Section 15 of Madras Act IV of 1938.
Finding of the Court:
The court held that the amount payable under the possessory mortgage is not rent in the proper sense and does not fall within the scope of Section 15 of the Madras Agriculturists Relief Act.
Issues: The main issue was whether the purappad reserved under the possessory mortgage was considered rent within the meaning of the Act, entitling the petitioner to the benefit of Section 15.
Ratio Decidendi: The court relied on previous decisions and held that the transaction embodied in the possessory mortgage was not considered rent in the proper sense of the term, and therefore, did not fall within the scope of Section 15 of the Madras Agriculturists Relief Act.
Final Decision: The Civil Revision Petition was dismissed with costs.
Patanjali Sastri, J.
1. The question that falls to be decided in this Civil Revision Petition is whether Section 15 of the Madras Agriculturists Relief Act is applicable to the surplus reserved as. payable to the mortgagor under a possessory mortgage after appropriating part of the usufruct in lieu of interest due on the mortgage money. The petitioners predecessor-in-interest held the lands here in question on a kanom granted by the respondent on May 25, 1911, for Rs. 1,137-2-4. In consideration of a further advance of Rs. 862-13-8 making up a total of Rs. 2,000 the respon,detit executed on August 17, 1925, the deed (Ex. A) styled Kaivasam panayam (possessory mortgage) under which the mortgagee was to appropriate, out of anestimated yield of 430 paras of paddy, 200, paras in lieu of interest on the mortgage money, pay 60 paras for assessment on the property and then pay the balance of 230 paras to the respondent as panaya purappad in two instalments during the harvest season. The document further provided that if the panaya purappad and assessment were allowed to fall into arrears, such arrears together with interest at the rate fixed should be applied in payment of the mortgage money, the value of paddy being calculated at the current market rate. There was also a provision charging such arrears of purappad, assessment and interest on the crops standing on the properties, the improvements thereon, and also the mortgage money. The panaya purappad fell into arrears and the petitioner who purchased the mortgagees rights in execution sale and obtained delivery of the properties claims the benefit of Section 15 of Madras Act IV of 1938, depositing the purappad due for the year 1937-1938. It is not disputed that the petitioner is an agriculturist within the meaning of the Act and the only question is whether the purappad reserved under the panayam deed as payable to the jenmi is rent within the meaning of the definition in S: 3, Clause (iii) of the Act, so as to entitle the petitioner to the benefit of Section 15. The Court below held that it was not and dismissed the petitioners application. This revision petition is directed against that order.
2. It is argued for the petitioner that the transaction embodired in Ex. A, though styled a possessory mortgage operates also as a lease so far as the amount of paddy fixed as payable to the jenmi is concerned, and stress is laid on the use of the word purappad (rent) in the document. The respondent, on the other hand, contends that Ex. A is nothing more than a possessory mortgage with an undertaking by the mortgagee to pay to the mortgagor the estimated surplus profits after paying the assessment due on the land and appropriating a specified portion of the usufruct in lieu of interest, The use of the word purappad, it is urged, is inconclusive and stress is laid on the provision already referred to that if the purappad is allowed to fall into arrears, the same with interest shall be applied in payment of the mortgage money. We are of opinion that the contention for the respondent is supported by the authorities cited on his behalf and must prevail. In Venkateswara v. Kesava Shetti I.L.R.(1879)Mad. 187, there was a mortgage with possession for a term of eight years of a piece of ground with a warehouse standing thereon. The rent of the warehouse was fixed at Rs. 16-12-0 per annum and it was agreed that out of this sum the mortgagee should appropriate Rs. 14 towards the payment of interest on the principal, and pay Rs. 2-12-0 as rent to the mortgagor. Sometime after the mortgage the warehouse was destroyed by fire but not owing to any fault or neglect of the mortgagee who thereupon ceased to pay the rent reserved to the mortgagor. In a suit by the latter to recover the site together with arrears of rent on the ground of default in payment of the rent, the question arose whether there was a contract of tenancy apart from the mortgage and the mortgagor was entitled to call upon the mor
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