IN THE HIGH COURT OF MADRAS
V Rao
M. Doraiswami Aiyangar And Bros.
Versus
P. Varadarajulu Naidu And Ors.
Decided On : 7 October, 1927
Amendment - Mortgage Suit - Bhuban Mohan v. Co-operative Hindusthan Bank Ltd. A.I.R. 1925 Cal. 973, Zahir Baza v. Madhusudan [1918] 4 Pat. L.W. 417, O. Ramlakshmanna, In re [1914] M.W.N. 623, Jageshwar Dutt v. Bhuban Mohan Mitra [1906] 33 Cal. 425 - The court discussed the permissibility of adjudicating on the title of a person claiming adverse to the mortgagor and the mortgagee in a mortgage suit, citing relevant case laws and emphasizing that in certain circumstances, it may be proper and desirable to implead such a party and try the issue in the mortgage suit itself.
Fact of the Case:
The plaintiff sought permission to amend the plaint in a mortgage suit to raise the question of ownership in regard to certain properties. Defendant 3 opposed the amendment, arguing that her paramount title cannot be litigated in the plaintiffs mortgage suit.
Finding of the Court:
The court found that in certain circumstances, it may be proper and desirable to implead a person claiming adverse to the mortgagor and the mortgagee and try the issue in the mortgage suit itself.
Issues: The main issue was whether the proposed amendment to raise the question of ownership in a mortgage suit could be allowed.
Ratio Decidendi: The court held that the issue of ownership could be raised and tried in the mortgage suit itself, citing relevant case laws and emphasizing that in certain circumstances, it may be proper and desirable to implead such a party and try the issue in the mortgage suit.
Final Decision: The court allowed the proposed amendment to raise the question of ownership in the mortgage suit, directing the applicant to pay defendant 3 her costs and granting liberty to defendant 3 to file a fresh written statement and raise a point of jurisdiction if the amendment is allowed.
Venkatasubba Rao, J.
1. This is an application made by the plaintiff for permission to amend his plaint. The amendment proposed affects defendant 3, who opposes the application. The question I have to decide is: can the proposed amendment be allowed? I shall refer to such allegations in the plaint as are relevant to the present purpose. The suit is brought to enforce an equitable mortgage created by defendant 1, by his depositing certain title-deeds. There were dealings between the plaintiffs firm and in the course of those dealings the latter executed promissory notes in favour of the former. About the month of December 1925, there was a sum of little over Rs. 12,000 due to the plaintiffs and it is alleged that defendant 1 then deposited with them title-deeds of properties mentioned in Schedules B, C and D to the plaint with a view to create an equitable mortgage over them. Although the deeds were deposited by defendant 1, it is alleged that he represented that he was making the deposit both on his own behalf and on behalf of defendant 3, who was described as his adoptive mother. The properties mentioned in Schedule B stood in the name of defendant 3, and the plaint alleges that defendant 1 represented at the time that he was duly authorized by defendant 3, to deposit the title-deeds of those properties. There is a further allegation in the plaint that defendant 3, is bound in respect of the last-mentioned properties for the additional reason that she allowed defendant 1 to be in possession of the title-deeds relating to them and is therefore estopped from disputing the plaintiffs right thereto.
2. The first point to note is, that the plaintiffs seek to enforce the mortgage both against defendants 1 and 3. Although in this respect the plaint is lacking in clearness, there can be no reasonable doubt, on a reading of the whole plaint, that this is what is intended. In para. 9 it is stated that defendant 1 agreed that when called upon he and defendant 3 would execute a deed of mortgage in due form and get it registered. It is then alleged that the plaintiffs got prepared a draft deed of mortgage, but that neither did defendant 1 nor defendant 3 execute it in spite of demands. Then again the first prayer in the plaint is that a mortgage decree may be passed against both defendants 1 and 3. The suit must be, therefore, regarded as one to enforce a mortgage against both defendants 1 and 3 alike.
3. Defendant 3 has filed a written statement denying: (a) that defendant 1 is her adopted son,; (b) that she authorized the mortgage; (c) that she empowered defendant 1, to make the deposit of the title-deeds of the properties in Schedule B; or (d) that she is estopped by her conduct from questioning the plaintiffs right to the last-mentioned properties.
4. On these pleadings issues were raised on the 19th day of July and the Judges summons for the amendment in question was taken out on the 19th August. The plaintiffs seek to amend the plaint by alleging that, as a matter of fact, the properties in Schedule B belong to defendant 1 by whom they were acquired benami in the name of defendant 3; in other words, the plaintiffs desire to raise the question of ownership in regard to these properties. Defendant 3s objection is that her paramount title cannot be litigated in the plaintiffs mortgage suit and that as the object of the amendment is to obtain a decision on this adverse right, the same ought not to be allowed.
5. The question I have to decide is, therefore, one of law; can the title of a person claiming adverse to the mortgagor and the mortgagee be adjudicated on in a mortgage suit?
6. In Bhuban Mohan v. Co-operative Hindusthan Bank Ltd. A.I.R. 1925 Cal. 973, which was a suit on a mortgage, those that were impleaded as defendants were the mortgagors as well as a lady by name Susila, the wife of one of them. She was made a defendant on the ground that she was the benamidar in respect of the premises mortgaged, the true owner being her h
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