PUNJAB & HARYANA HIGH COURT
Hemant Gupta, J.
Gokal Chand
Versus
Shanti Devi
Regular Second Appeal No. 2805 of 2009,
Decided On : AUGUST 24, 2009
Succession Certificate - Mortgage Agreement - Indian Succession Act, 1925, Section 214 - Summary of Acts and Sections: Section 214 of the Indian Succession Act, 1925 - The court discussed the provisions of Section 214 of the Indian Succession Act, 1925, which stipulates the conditions precedent to recovery through the courts of debts from debtors of deceased persons. The court highlighted the interpretations and influences of Section 214, emphasizing that the provisions of grant of succession certificate being summary in nature, the prohibition contained in Section 214 of the Act can be said to be directory alone.
Fact of the Case:
The defendant-appellant, owner of land, entered into an agreement to mortgage with the predecessor-in-interest of the plaintiff. The plaintiff sought specific performance of the agreement after the defendant failed to perform his part. The defendant denied executing any agreement and argued that the suit was not maintainable without a succession certificate as per Section 214 of the Indian Succession Act, 1925.
Finding of the Court:
The court found that the agreement of mortgage was executed and a sum of money was paid to the defendant as earnest money. The court negated the argument that the suit was not maintainable without a succession certificate, emphasizing that the relationship between the parties was not that of creditor and debtor, and the provisions of Section 214 did not apply.
Issues: The issues revolved around the maintainability of the suit without a succession certificate as per Section 214 of the Indian Succession Act, 1925, and the execution of the mortgage agreement.
Ratio Decidendi: The court held that the provisions of Section 214 of the Indian Succession Act, 1925, were not applicable in the present case, as the relationship between the parties was not that of creditor and debtor, and the provisions of grant of succession certificate were considered to be directory in nature only.
Final Decision: The court dismissed the appeal, emphasizing that the objection raised by the defendant was not bona fide and the judgment cited by the appellant was not applicable within the jurisdiction of the court.
Hemant Gupta, J.
1. Defendant No.1 is in appeal aggrieved against the judgment and decree passed by the learned Courts below arising out of suit for possession by way of specific performance of contract of mortgatge dated 13.03.2000 whereby decree for recovery of earnest money of Rs.1,06,500/- along proportionate costs and interest @ 12% per annum from the date of execution of agreement Exhibit P-3 till the date of passing of the decree and @ 6% per annum from the date of passing of the decree till the recovery of the decretal amount, was granted.
2. The defendant-appellant as owner of land measuring 24 Kanals purportedly entered into an agreement to mortgage with Girdhari Lal, predecessor-in-interest of the plaintiff, for a total consideration of Rs.1,10,000/-. A sum of Rs.1,06,500/- was received as earnest money by defendant No.1 from Girdhari Lal in the presence of the marginal witnesses and the balance was to be received at the time of registration of mortgage deed before the Sub Registrar on 16.01.2001. Defendant No.1 signed the said documents in Hindi after the contents thereof were read over and explained to him in presence of the scribe and the marginal witnesses. The possession of land measuring 24 Kanals though mentioned in the agreement as delivered was actually not delivered. The plaintiffs claimed that Girdhari Lal till his death and thereafter the plaintiffs as his legal heirs were ready and willing to perform their part of the contract but defendant No.1 has failed to perform his part of the contract. Girdhari Lal died on 21.05.2001 and the present suit to seek specific performance of the agreement to mortgage was filed on 4.12.2001 after serving notice upon the defendants. Thus, decree aforesaid was granted.
3. Defendant No.1 denied to have executed any agreement. It was pleaded that until and unless the plaintiffs produce succession certificate as per provisions of Section 214 of the Indian Succession Act, 1925 (for short "the Act"), no decree can be passed. It is also alleged that defendant No.1 was not exclusive owner of the land as he had a joint Khata in the entire khewat and no amount was ever received by the defendant nor any agreement was executed by the defendant. Both the learned Courts below have returned a concurrent finding of fact that agreement of mortgage Exhibit P-3 stands proved to be executed and that a sum of Rs.1,06,500/- was paid to defendant No.1 as earnest money.
4. The only argument raised by learned counsel for the appellant in the appeal is that in terms of Section 214 of the Act, the suit is not maintainable as it prohibits grant of decree against a debtor of a deceased person for payment of his debt except on production of succession certificate in terms of Section 214(1)(iii) of the Act. Reliance was placed upon a Single Bench judgment of Orissa High Court reported as Basanta Kumar Das v. Smt. Lakshmi Priya Dasi and another, AIR 1988 Orissa 269. Learned counsel for the appellant has argued that since Girdhari Lal with whom the defendant-appellant purportedly entered into agreement died before the filing of the suit, therefore, in terms of Section 214 of the Act, succession certificate is required. Learned counsel for the appellant has further argued that it is not a case where the plaintiff has died after the filing of the suit as such situation is taken care of by the provisions of Order 22 Rule 3 of the Code of Civil Procedure but in case of a creditor having died prior to institution of lis, the suit is not maintainable without obtaining succession certificate.
5. The said argument has been negated by the both the learned Courts below for the reason that there is no relationship of creditor and debtor between Gokal Chand and Girdhari Lal as the said amount was mortgage money and not the loan amount. At this stage, certain provisions of law need to be reproduced :-
"214. Proof of representative title a condition precedent to recovery through the Courts of debts from debto
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