HIGH COURT OF ORISSA
P. V. Balakrishnarao And S. Barman, JJ.
BRAHMANANDA PANDA - Appellant
Versus
KANDURI CHARAN DAS - Respondent
First Appeal 53 Of 1951
Decided On : NOVEMBER 29, 1958
MORTGAGE - Suit on registration copy of mortgage bond - Loss of original not satisfactorily explained - Maintainability of suit - Consideration for mortgage - Proof - Payment of mortgage debt - Endorsement on mortgage bond - Estoppel.
Fact of the Case:
Plaintiff filed a suit for recovery of money due on a mortgage bond executed by defendants 1 and 2. The original mortgage bond was not filed along with the plaint, and the plaintiff did not allege that it was lost. A registration copy of the mortgage bond was filed in a sealed cover and was later inspected by the defendants. The defendants contended that the plaintiff was a benamidar for the real Mahajan Kelu Charan Barik, that the consideration for the mortgage was only Rs. 4000/-, and that they had paid Rs. 4800/- towards the mortgage dues in 1943 and Rs. 400/- in 1944.
Finding of the Court:
The court held that the suit was maintainable even though the original mortgage bond was not filed, as the plaintiff was the benamidar and entitled to maintain a suit on the mortgage. However, the court found that the mortgage was not proved as against defendants 3 to 5, as the plaintiff failed to prove that the consideration of the mortgage bond was paid in discharge of their debts. The court also found that the mortgage bond was supported by consideration only to the extent of Rs. 4000/- as against defendants 1 and 2, and that they had paid Rs. 4800/- in 1943 and Rs. 400/- in 1944. The court held that the defendants were liable under the mortgage only to the extent of Rs. 500/- by 1-2-44 with 6% interest from that date till the date of the decree.
Issues: 1. Is the suit maintainable? 2. Is the suit barred by limitation? 3. Is there any fraud practised on the defendants? 4. Is the plaintiff entitled to sue? 5. What relief, if any, is the plaintiff entitled to? 6. Are defendants 3 to 5 liable to debts, if any, by defendant No. 1 being immoral? 7. Is the plea of payment of Rs. 4800/- by defendant No. 1 true? 8. Was the mortgage in suit for a consideration of Rs. 4000/- only?
Ratio Decidendi: 1. A suit on a mortgage is maintainable even if the original mortgage bond is not filed, provided that the plaintiff is the benamidar and entitled to maintain a suit on the mortgage. 2. The burden of proving that the mortgage bond is supported by consideration so as to make defendants 3 to 5 liable is on the plaintiff. 3. The defendants can successfully prove that the mortgage bond is supported by consideration only to the extent of Rs. 4000/- if they can show that they received only that amount from the mortgagee. 4. The endorsement of payment of Rs. 400/- on the mortgage bond is binding on the plaintiff and he is estopped from contending that it cannot be acted upon.
Final Decision: The court set aside the judgment and decree of the lower court and passed a preliminary mortgage decree against defendants 1 and 2 only for Rs. 500/- with interest at 6% per annum from 1-2-44 till the date of the decree. Time for redemption was three months. The cost of the parties in the two courts was to be in proportion to their success and defeat.
P. V. BALAKRISHNARAO, J.
( 1 ) DEFENDANTS 1 and 2 who are brothers filed this appeal against the judgment and decree of Shri B. S. Patnaik, Subordinate Judge of Cuttack, in a suit for recovery of money due on a mortgage bond. Respondent No. 1 is the plaintiff. Respondents 2, 3 and 4 are the sons of defendant No. 1, respondents 3 and 4 being minors. Respondent No. 5 is Sushila Dibya, widow of defendant No. 1. Appellant No. 1defendant no. 1 having died during the pendency of the appeal, respondents 2, 3, 4 and 5 are his legal representatives.
( 2 ) THE plaintiffs case is that the defendants formed a joint family of which defendants 1 and 2 are the managing members; that defendants 1 and 2 incurred a loan of Rs. 5999/- by registered mortgage bond dated 6-2-37 in order to pay off antecedent debts stipulating to repay it within one year with interest at 9 per cent per annum; and that defendants 1 and 2 not having repaid the loan except a sum of Rs. 400/- on 1-2-44, the suit is filed by the plaintiff for recovery of a sum of Rs. 11,598/- together with future interest within a time to be fixed by the Court failing which the mortgaged properties of the defendants should be sold for realisation of the decretal dues.
( 3 ) IT may be stated here that along with the plaint the original mortgage bond was not filed, but curiously the plaintiff did not allege in the plaint that the original was lost and that therefore be suit was filed on a registration copy of the said mortgage bond. Along with the plaint he filed an application to keep the document filed in a sealed cover which was done. This document put in the sealed cover ultimately turned out to be a registration copy of he mortgage bond. After notice to the defendants, the defendants filed an application to inspect this document and defendants 1 and 2 filed a written statement after the said inspection of the document kept in the sealed cover.
( 4 ) DEFENDANTS 1 and 2 contended that the plaintiff was not a money-lender and did not advance any sum as alleged to the defendants; that he was a benamidar for the real Mahajan Kelu Charan Barik who is related to him, Kelu Charan's son having married the plaintiff's sister that Kelu Charan was heavily assessed to income-tax in 1936 and for that reason he was no longer willing to advance money in his own name to any person; and that the advance was made benami in the name of the plaintiff. These two defendants also contended that defendant No. 1 received only Rs. 4000/- towards consideration, but under the pressure of Kelu charan he executed a mortgage bond for a higher sum, namely, Rs. 5999/ -. They further pleaded that defendant No. 1 sold away gold in 1943 and paid to Kelu charan a sum of Rs. 4800/- which payment was endorsed on the original bond which was then in the custody of Kelu Charan; that at that time it was decided that an amicable settlement of accounts would be made and on further payment, if necessary, the mortgage bond would be deemed discharged; that in 1944 in pursuance of an amicable settlement it was settled that the defendants were to pay about Rs. 900/-including some costs; that defendant No. 1 having with him only a sum of Rs. 400/- paid that amount and the same was endorsed on the mortgage bond; and that defendant No. 1 requested for remission of the balance. It is further stated that defendant No. 1 is an addict of opium and that on that day when Rs. 400/- were paid, that is, 1-2-44 he was very much intoxicated and under that planned intoxication he had endorsed the payment of Rs. 400/-and signed on a certified copy of the mortgage bond under the bona fide impression that the document was the original bond. Defendant No. 2 was also similarly intoxicated and he had signed after his elder brother defendant No. 1.
( 5 ) DEFENDANT No. 3 filed a written statement supporting the contentions of defendants 1 and 2 and denying the consideration of the mortgage, the necessity of the payment on the certified copy of the mort
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