IN THE HIGH COURT OF MADRAS
Curgenven, J.
Yaddanapudi Lakshmi Narasimham
Versus
Dorapalli Lakshmipathi and Ors.
Decided On : 31.07.1931
Remand - Mortgage Right - O.S. No. 368 of 1920, O.S. 88 of 1925 - Order 2, Rule 2, Civil P. C. - Sukh Lal v. Bikhi [1889]11All.187 - Fateh Singh v. Jagannath Baksh - Specific performance of the agreement and consequential enforcement of mortgage - Res judicata
Fact of the Case:
Defendant 2 appeals against an order of remand of a suit made by the Additional Subordinate Judge of Bezwada. Defendant 2 obtained a mortgage decree against defendant 1, and an arrangement ensued between the three defendants and the plaintiff. The plaintiff sued for the recovery of the mortgage amount, and the District Munsif gave him a decree which merely declared his mortgage right over the property and left him at liberty to enforce his right in a separate suit. The plaintiff filed another suit against the same three defendants to enforce this right. The District Munsif found that this suit was barred both by res judicata and under Order 2, Rule 2, Civil P. C. The Additional Subordinate Judge differs from this view and remanded the suit for trial upon the other issues framed.
Finding of the Court:
The Court found that the earlier suit was for the recovery of the amount advanced by the plaintiff under the mortgage, and the suit was tried upon this footing. The Court also held that the second suit was not barred by res judicata or under Order 2, Rule 2, Civil P. C.
Issues: The issues included whether the plaintiff was entitled to any charge on the scheduled land by virtue of the mortgage executed by defendant 3 pursuant to the agreement alleged by the plaintiff.
Ratio Decidendi: The Court held that the earlier suit was for the recovery of the amount advanced by the plaintiff under the mortgage, and the second suit was not barred by res judicata or under Order 2, Rule 2, Civil P. C.
Final Decision: The appeal failed and was dismissed with costs.
Curgenven, J.
1. Defendant 2 appeals against an order of remand of a suit made by the Additional Subordinate Judge of Bezwada. Designating the parties as they stand in the present suit, the few facts which have to be known are these. Defendant 2 obtained a mortgage decree against defendant 1, and in the Court sale defendant 3, it is said benami for the second, bought defendant 1s property. There then ensued. an arrangement between the three defendants and the plaintiff who appears to have been a creditor of the judgment-debtor in that suit, according to which defendant 1 executed a mortgage to the plaintiff for Rs. 400 of the property which had already been sold by the Court, and the auction purchaser, defendant 3, undertook to get the Court sale, set aside. He failed to do this, so that, as matters stood, the mortgage bond passed no legal title to the plaintiff. In these circumstances the plaintiff sued in O.S. No. 368 of 1920 for the recovery of the mortgage amount which the defendants had received from him, by the sale if necessary of the mortgaged property. The District Munsif who tried the suit gave him a decree which merely declared his mortgage right over the property and left him at liberty to enforce his-right in a separate suit. He accordingly filed another suit, O.S. 88 of 1925,. against the same three defendants to enforce this right. The District Munsif found that this suit was barred both by res judicata and under Order 2, Rule 2, Civil P. C. In the judgment appealed against, the learned Additional Subordinate Judge differs from this view, holding that the former suit was not one for the recovery of the money paid by sale of the hypo-theca but was a suit for damages for breach of contract. He considered that the two suits were based upon different causes of action. He accordingly restored the suit and remanded it for trial upon the other issues framed.
2. So far as the decree in O.S. 368 of 1920 declares the plaintiff at liberty to enforce his charge by a separata suit, it is, as the learned District Munsif has held, a nullity. There is ample authority: see for instance Sukh Lal v. Bikhi [1889]11All.187 and Fateh Singh v. Jagannath Baksh that except where such a power is conferred by law, as for example under Order 23, Rule 1, Civil P. C., a Court is not competent to give a party leave to file a separate suit in respect of any relief which it does not itself grant. The plaintiff cannot therefore rely upon this term in the decree to save his suit if it is otherwise barred.
3. The learned Subordinate Judge considers, as I have said, that the earlier suit was for damages, but in this view I am unable to concur. The first nine paragraphs of the plaint recount the facts. In para. 10 it is stated that the plaintiff is entitled to recover from the defendants the amount of Rs. 400 received by the defendants from the plaintiff the reason given being that defendants have fraudulently defeated the object of the contract entered into by them.
4. It is added that as the defendants have received money from the plaintiff on the liability of the suit properties by giving assurance to the plaintiff, he is entitled to recover the suit amount by the sale of the scheduled properties.
5. In para. 12 the cause of action is stated to have arisen on 21st December 1918, which was the date of the mortgage and of the alleged oral agreement, and 23rd July 1920 the date upon which the sale was confirmed.
6. The relief which the plaintiff prayed for was a direction to the defendants to pay the plaintiff the suit amount and as they had received the suit amount on the liability of the scheduled properties, in default of payment to order the sale of the properties; a declaration that the Court sale is not binding on the plaintiff was also asked for.
7. The District Munsif who tried the suit described it as a suit to recover money from the defendants after establishing the plaintiffs right to a charge upon the plaint properties.
8. The only issue
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