IN THE HIGH COURT OF MADRAS
A Ayyar
Kandaswami Mudaliar And Anr.
Versus
Ponnuswami Mudaliar
Decided On : 12 October, 1927
mortgage - redemption - Article 148, Lim. Act - [Transfer of Property Act, Section 49, Section 60, Section 4, Section 3, Section 2] - The court discussed the admissibility of unregistered sale-deed to prove the nature of subsequent possession, the effect of subsequent acts on the equity of redemption, and the bar to a suit for redemption due to adverse possession. Key legal provisions include Section 49 of the Transfer of Property Act and Article 148 of the Limitation Act. The court's decision was influenced by the interpretation of these provisions and their application to the facts of the case.
Fact of the Case:
The plaintiffs sued to redeem a mortgage. The defendant claimed to have become the absolute owner of the property through purchase and adverse possession. The lower courts had conflicting findings on the genuineness of the sale-deed and the nature of the defendant's possession.
Finding of the Court:
The court remitted the case to the lower appellate Court for fresh consideration and decision regarding the first plaintiff's rights. The court reversed the lower appellate Court's decision and directed the appellants to pay half the costs of the respondent in the second appeal.
Issues: The issues included the admissibility of unregistered sale-deed, the effect of subsequent acts on the equity of redemption, and the bar to a suit for redemption due to adverse possession.
Ratio Decidendi: The court held that the unregistered sale-deed was admissible to prove the nature of subsequent possession and discussed the effect of subsequent acts on the equity of redemption. The court also emphasized the principle that a mortgagee cannot acquire right by adverse possession against the mortgagor unless the equity of redemption is released.
Final Decision: The case was remitted to the lower appellate Court for fresh consideration and decision regarding the first plaintiff's rights. The court reversed the lower appellate Court's decision and directed the appellants to pay half the costs of the respondent in the second appeal.
Ananthakrishna Ayyar, J.
1. The plaintiffs sued to redeem a mortgage. It was alleged that the deceased elder brother of the plaintiff usufructually mortgaged the suit land to the defendant for Rs. 50 on 29th July 1903 under Ex. 1. The defendant while admitting the mortgage pleaded that he became the absolute owner of the property by purchase on 29th October 1906, from plaintiffs 2 and 3 and that his possession subsequent to 1906 was as an absolute owner; and though the sale-deed Ex. 2 of 1906 was unregistered, his possession since 1906 was as absolute owner and that he had acquired absolute title by adverse possession for more than 12 years. The plaintiffs impugned Ex. 2 as a forged document, and the. District Munsif found that Ex. 2 was not genuine and accordingly decreed redemption. On appeal by the defendant the learned District Judge came to the conclusion on the evidence that Ex. 2 was genuine, that it was executed by plaintiff 2 and attested by plaintiff 3. Holding that Ex. 2 was genuine he reversed the District Munsifs decision and dismissed the suit observing as follows:
I cannot bring myself to believe that Ex.2 was a forgery. I am satisfied the land was on that date sold to defendant. I find on issue 2 that the sale is true and that though the sale deed conveyed no title (being unregistered) I find under issue 3 that the possession of defendant was adverse since the date of Ex. 2 and the suit is therefore barred by limitation.
2. The plaintiffs have preferred this second appeal to the High Court and on their behalf it was contended by Mr. M.S. Venkatarama Ayyar, the learned vakil for the appellant, that accepting Ex. 2 to be genuine, the defendants possession having commenced lawfully as a usufructuary mortgagee under the plaintiffs family and the sale-deed, Ex. 2, being admittedly inadmissible to prove the sale, the defendants possession should all along be considered to be that of a mortgagee, since a mortgagee in possession could not change the nature of his possession as mortgagee, nor convert it into adverse possession against the mortgagor. He relied on the decision of Miller and Sadasiva Iyer, JJ. in Ariya Puthira v. Muthukumaraswami [1912] 37 Mad 423 to the effect that the unregistered sale-deed, Ex. 2, could not be referred to, to prove that the defendants possession was as vendee. He further contended that the mortgagor was entitled to redeem at any time within 60 years under Article 148, Lim. Act and that the plaintiffs ought to have been given a decree for redemption.
3. On behalf of the respondent Mr. Seshagiri Sastri contended that the sale-deed Ex. 2, though unregistered, was admissible to show the nature of the subsequent possession held by the respondent. The learned vakil relied on the decision of the Privy Council in Varada Pillai v. Jeevarathnammal A.I.R. 1919 P.C. 44 and of the decision of the Full Bench of this Court in llama Sahu v. Gowro Ratho A.I.R. 1921 Mad. 337, in support of his position. He also contended that the decision in Ariya Puthira v. Muthukumaraswami [1912] 37 Mad 423, is no longer law having been dissented from subsequently in this Court, and he relied on the decision of Sundara Ayyar and Sadasiva Ayyar, JJ. in Usuvian Khan v. Dasanna [1912] 37 Mad. 545, followed by Ayling and Odgers, JJ., in Kandaswami Pillai v. Chinnabha A.I.R. 1921 Mad. 82, as showing that the subsequent sale though invalid may be proved to show the nature of the possession subsequently held by the defendant.
4. In addition to the cases mentioned above reference may also be made to the following cases which support the above position. Ata Muhammad v. Shankar Das A.I.R. 1925 Lah. 491 (unregistered lease deed); Janki Kuer v. Birj Bhikhan Ojah A.I.R. 1924 Patna 641 (unregistered lease deed); Quadar Baksh v. Mangha Mal A.I.R. 1923 Lah. 495 (unregistered sale-deed); Jhamphu v. Kutramani [1917] 39 All. 696 (unregistered relinquishment deed); Jagannath v. Chandi Bibi A.I.R. 1921 Cal. 647, Mookerjee and Buck-land,
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