IN THE HIGH COURT OF MADRAS
Krishnan Pandalai, J.
Ishwara Shetty
Versus
Ramappa Shetty and Ors.
Decided On : 29.03.1934
Mortgage - Rights of Lessee and Lessor - Transfer of Property Act - Sections 69 and 70 of the Contract Act - Sections 108(c) and 109 of the Transfer of Property Act
Fact of the Case:
The plaintiff, a sub-mulgenidar, paid off a mortgage to protect his possession after the property was ordered to be sold free of his sub-mulgeni right. He sued the appellant, the purchaser from the lessor, for recovery of the money.
Finding of the Court:
The Subordinate Judge held that the plaintiff was not a volunteer and was entitled to protect his sub-mulgeni right. The appellant was found liable under Sections 108(c) and 109 of the Transfer of Property Act. The suit was dismissed against the representatives of the lessor.
Issues: The issues revolved around the liability of the appellant as the purchaser from the lessor and the rights of the sub-mulgenidar to recover the amount paid to satisfy the mortgage.
Ratio Decidendi: The court found that the plaintiff had the right to protect his sub-mulgeni interest and the appellant was liable under Sections 108(c) and 109 of the Transfer of Property Act. The lessee's election to proceed against the appellant was final, and the representatives of the lessor were not held severally liable.
Final Decision: The appeal was dismissed, and the appellant was held liable for the amount paid by the plaintiff, while the suit against the representatives of the lessor was dismissed.
Krishnan Pandalai, J.
1. The first defendant is the appellant in this Court. The following facts are material:--One Venku Shetty was the mulgenidar of some immovable property. He mortgaged his interest in the same to Appanna Rai and Kantha Rai two brothers for Rs. 500, on a simple mortgage dated May 4, 1892. Venku Shetty sold his interest to one of the mortgagees Kantha Rai on December 2, 1910. Thus Kantha Rai having become himself the owner of the mortgagors interest, his own half interest in the mortgage was satisfied by the purchase and he became liable to pay the other half Rs. 250, and interest thereon to the other mortgagee Appanna Rai. Immediately after the purchase, Kantha Rai granted a sub-mulgeni to the plaintiff and one Muthaya Manai on December 3, 1910. On January 4, 1912, Kantha Rai sold his interest to the 1st defendant-appellant. Manais interest was subsequently acquired by the plaintiff who is, therefore, the only person entitled to the sub-mulgeni right. Soon after the creation of the sub-mulgeni, the other mortgagee Appanna Rai brought his suit for recovery of half the mortgage amount. To this suit, Order 8. No. 23 of 1912, Venku Shetty, the original mortgagor and Kantha Rai the purchaser from him and the 1st defendant the purchaser from Kantha Rai were impleaded but not the sub-mulgenidar, the plaintiff, and Manai. In execution the mortgaged property was brought to sale and the Court on the then plaintiffs application ordered the sale subject to the plaintiffs sub-mulgeni right which was not represented in the suit. But the present appellant objected and appealed to the District Court which ordered that the sale should take place free of the plaintiffs snb-mulgeni right. The result of this order, if carried out, was that the plaintiffs suh-mulgeni right would be sold in execution of the decree to which he was not a party and his interest in the property would be converted into a right to receive surplus sale proceeds, if any. He would no doubt have the right of proceeding by separate suit to redeem the mortgage ignoring the sale and the decree by which he was not bound. This would involve expense and trouble and risk of losing possession pending the proceedings. Therefore, when the property was advertised for sale the plaintiff paid the amount due under the mortgage decree, O.S. No. 23 of 1912, on January 24, 1923, and had the sale stopped. Then he brought this suit against the 1st defendant-appellant and defendants Nos. 2 to 4 the legal representatives of Kantha Rai, for recovery of the money. Both sets of defendants denied liability. The 1st defendants plea wasthat he had become the purchaser from Kantha Rai under a deed, Ex. III, which expressly mentioned only Rs. 276-4-0, as payable on the mortgage. He contended that he was not liable to pay more and that as he had bought the mulgeni right subject to the plaintiffs suh-mulgeni, both he and the plaintiff were liable to contribute to, the mortgage. The 3rd defendants legal representatives contended that Kantha Rai was also not personally liable for the mortgage debt although he had taken the mortgaged property on sale after the mortgage and that Kantha Rais assets are not liable. It was also contended for the defendants that plaintiff was not entitled to recover anything as he was a mere volunteer. The District Munsif upheld the contention that the plaintiff was a mere volunteer and that he was not entitled to recover anything as he did not satisfy the conditions of Section 69 of the Contract Act and although he worked out the figures which the plaintiff and the 1st defendant would have to contribute in case the plaintiff was entitled to contribution, he dismissed the suit on the ground that the plaintiff was a mere volunteer.
2. In appeal the learned Subordinate Judge of South Kanara held that the District Munsif had misunderstood the legal rights of the parties. After stating the facts he held that the plaintiff was not a volunteer because, though
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