SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1981 Supreme(Ori) 208

IN THE HIGH COURT OF ORISSA
P.K. Mohanti, J.
SAMARU ORAM - APPELLANT
Versus
MST. SIBAN MUNDANI AND OTHERS - RESPONDENT
Second Appeal No. 87 of 1977
Decided On : 24-11-1981

Advocates Appeared:
M. Patra, for the Appellant; S.C. Mohapatra, for the Respondent

A usufructuary mortgage stands discharged after the expiration of fifteen years from the date of the mortgage, and the mortgagee's possession thereafter is permissive and not adverse. A party who has prosecuted a proceeding in a court that lacked jurisdiction in good faith may be entitled to the benefit of Section 14 of the Limitation Act.

Headnote:

LIMITATION ACT - SECTION 14 - ORISSA MONEY-LENDERS ACT, 1939 - SECTION 17 - DISCHARGE OF USUFRUCTUARY MORTGAGE - POSSESSION OF MORTGAGEE - NATURE OF POSSESSION - ADVERSE POSSESSION - GOOD FAITH - SECTION 14 OF THE LIMITATION ACT.

Fact of the Case:

Plaintiffs filed a suit for recovery of possession of mortgaged property, claiming that the usufructuary mortgage stood discharged under Section 17 of the Orissa Money-Lenders Act, 1939. The defendants, sons of the original mortgagee, contested the claim, asserting that the mortgage was not discharged and that they had acquired title to the property through adverse possession.

Finding of the Court:

The courts below concurrently found that the mortgage stood discharged under Section 17 of the Act, that the defendants' possession was permissive and not adverse, and that the plaintiffs were entitled to the benefit of Section 14 of the Limitation Act, as they had prosecuted the proceedings before the Sub-Divisional Magistrate in good faith.

Issues: 1. Whether the mortgage stood discharged under Section 17 of the Orissa Money-Lenders Act, 1939? 2. Whether the defendants' possession was adverse? 3. Whether the plaintiffs were entitled to the benefit of Section 14 of the Limitation Act?

Ratio Decidendi: 1. Section 17 of the Orissa Money-Lenders Act, 1939 provides that a usufructuary mortgage shall be deemed to stand discharged after the expiration of fifteen years from the date of the mortgage. 2. The possession of a mortgagee after the discharge of the mortgage is permissive and not adverse, unless the mortgagee exercises hostile animus. 3. Section 14 of the Limitation Act allows for the exclusion of time spent in prosecuting a proceeding in a court that lacked jurisdiction, provided that the proceeding was pursued in good faith.

Final Decision: The appeal was dismissed, and the decision of the courts below was affirmed.

JUDGMENT :

P.K. Mohanti, J. - The second appeal is by Defendant No. 1 against the concurrent decisions of the Courts below decreeing the Plaintiffs' suit for recovery of possession of the mortgaged property on adjudication that the usufructuary mortgage stood discharged u/s 17 of the Orissa Money-Lenders Act, 1939.

2. The Plaintiffs are the sons of the original mortgagor and Defendants 1 and 2 are the sons of the original mortgagee. The Plaintiffs case was that on 3-4-1923 their father mortgaged the property usufructuarily with the father of Defendants 1 and 2. The mortgagee died about ten years before the suit without delivering possession of the mortgaged property and Defendants 1 and 2 being in possession of the same did not also deliver possession of the mortgaged property to the Plaintiffs. The Plaintiffs filed an application u/s 17(2) of the Orissa Money-Lenders Act on 19-2-1966 which was registered as Revenue Case No. 31/7-1 of 1966 in the Court of the Sub-Divisional Magistrate, Sambalpur and on 14-9-1969 the Sub-Divisional Magistrate passed orders declaring the mortgage to have stood discharged and directing Defendants 1 and 2 to deliver possession of the mortgaged property in favour of the Plaintiffs. Since the Defendants 1 and 2 did not comply with the order, the Plaintiffs filed a petition on 6-11-1969 for execution of the order. But the Sub-Divisional Magistrate by his order dated 30-1-1970 held that he had no jurisdiction to deal with the matter u/s 17(2) of the Orissa Money-Lenders Act. The Plaintiffs accordingly alleged that the period from 19-2-1966 to 30-1-1970 should be excluded u/s 14 of the Indian Limitation Act while computing the period of limitation for the suit.

3. Defendants 1 and 2 admitted that the suit property was usufructurily mortgaged with their father. But they disputed the allegation that the mortgage security stood discharged u/s 17 of the Act. They also admitted that the Plaintiffs had filed an application u/s 17(2) of the Act before the Sub-Divisional Magistrate, Sambalpur, but contended that the period spent in prosecuting the proceeding before the Sub-Divisional Magistrate should not be excluded u/s 14 of the Limitation Act. Their further contention was that the Plaintiffs executed a sale deed on a plain paper on 18-1-1932 in respect of the suit property on a consideration of Rs. 250/- and that since then they were in possession of the same by virtue of the sale. They alternatively pleaded that they had acquired title to the suit property by adverse possession.

4. Both the Courts below came to the concurrent findings that the sale deed dated 18-1-1932 (Ext. A) is a false and fabricated document; that the mortgage security stood discharged u/s 17 of the Act on the expiry of 15 years from the date of the mortgage; that Defendants 1 and 2 continued in possession of the mortgaged property on behalf of the mortgagor and the nature of their possession was permissive and not adverse and that the Plaintiffs having prosecuted the proceedings before the Sub-Divisional Magistrate, Sambalpur in good faith they were entitled to the benefit of Section 14 of the Indian Limitation Act.

5. The sole contention in the second appeal is that the suit is barred by limitation and the Plaintiffs are not entitled to the benefit of Section 14 of the Indian Limitation Act.

6. The suit mortgage was executed on 3-4-1923. The Orissa Money-Lenders Act of 1939 came into force in the district of Sambalpur with effect from 15-4-1940. Section 17(1) of the Act as it stood on 15-4-1940 reads as follows:

17. Discharge of usufructuary mortgage: (1) Notwithstanding anything to the contrary contained in any other law or anything having the force of law or in any contract, a usufructuary mortgage, which is executed after the commencement of the Act, shall, unless discharged previously, be deemed to stand discharged after the expiration of fifteen years from the date of the mortgage and the mortgagee shall deliver up to the mortgagor all















Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top