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1983 Supreme(P&H) 171

PUNJAB & HARYANA HIGH COURT
G.C.Mital, J.
Kundan Singh Represented By His L.Rs.
Versus
Dalip Singh
Regular Second Appeal No. 259 of 1975,
Decided On : MARCH 26, 1983

A compromise decree that cancels a sale and deems the vendee as a mortgagee with possession for a specified period creates a new right of redemption for the mortgagor, and the limitation for redemption starts after the expiry of the specified period.

Headnote:

REDEMPTION OF MORTGAGES ACT, 1913 - SECTION 2(1)(a) - SECTION 12 - SALE DEEMED TO BE MORTGAGE - LIMITATION FOR REDEMPTION - SALE CANCELLED BY COMPROMISE DECREE - MORTGAGEE CONSIDERED AS MORTGAGEE WITH POSSESSION - MORTGAGOR CAN REDEEM ONLY AFTER FIVE YEARS - LIMITATION FOR REDEMPTION STARTS AFTER FIVE YEARS.

Fact of the Case:

Harnam Singh sold his 1/4th share of ancestral land to Bhan Singh for Rs. 1100/-. Kashmir Singh, another son of Lal Singh, filed a declaratory suit challenging the sale. A compromise was reached, and the sale was treated as canceled. Bhan Singh was considered a mortgagee with possession for Rs. 1100/- for five years, and Kashmir Singh could redeem the mortgage after five years. Kundan Singh, the assignee of Kashmir Singh's mortgagor rights, applied for redemption under the Redemption of Mortgages Act, 1913, after the expiry of five years. The legal representatives of Bhan Singh challenged the order of redemption, arguing that the declaratory decree had lapsed as Harnam Singh's collateral did not file a suit for recovery of possession within three years of his death.

Finding of the Court:

The court held that the compromise decree dated 10.2.1945 was not the usual declaratory decree but a compromise decree under which Bhan Singh vendee agreed to give up his rights under the sale and agreed that he would be considered as a mortgagee with possession for Rs. 1100/- for a period of five years. It was made clear in the compromise as also the statements of the parties that Kashmir Singh could redeem the mortgage only after five years of the compromise and, therefore, it was not necessary to file the suit for possession on the death of Harnam Singh and only a suit for redemption within limitation was permissible, which was done in this case.

Issues: Whether the compromise decree dated 10.2.1945 was the usual declaratory decree or a compromise decree under which Bhan Singh vendee agreed to give up his rights under the sale and agreed that he would be considered as a mortgagee with possession for Rs. 1100/- for a period of five years.

Ratio Decidendi: The court held that the compromise decree dated 10.2.1945 was not the usual declaratory decree but a compromise decree under which Bhan Singh vendee agreed to give up his rights under the sale and agreed that he would be considered as a mortgagee with possession for Rs. 1100/- for a period of five years. It was made clear in the compromise as also the statements of the parties that Kashmir Singh could redeem the mortgage only after five years of the compromise and, therefore, it was not necessary to file the suit for possession on the death of Harnam Singh and only a suit for redemption within limitation was permissible, which was done in this case.

Final Decision: The court allowed the appeal, set aside the judgment and decree of the lower Appellate court, and restored those of the trial Court, leaving the parties to bear their own costs.

Judgment

G.C.Mital, J.

1. The following pedigree table would be of help in understanding the facts of the case.

The estate left by Lal Singh was inherited by all the four sons in equal shares. Harnam Singh sold his 1/4th share in favour of Bhan Singh by oral sale for Rs. 1100/- on the basis of which mutation was sanctioned on 30.10.1937. On 2.10.1944, Kashmir Singh filed a declaratory suit under custom to challenge the aforesaid sale on the ground that the land in dispute was ancestral and the sale was without consideration and legal necessity and, therefore, did not bind his reversionary interest. On 10.2.1945, a compromise was arrived at between Kashmir Singh plaintiff and Bhan Singh vendee. Copy of the compromise is Exhibit D.1. Under the compromise, it was agreed that the sale will be treated as cancelled and it will be considered that Kashmir Singh had mortgaged the land in favour of Bhan Singh for Rs. 1100/- for a period of five years and that Kashmir Singh could redeem the same after the expiry of five years. Exhibit D.2 are the statements of the parties in those proceedings. Consequently, on the basis of the compromise and the statements of the parties, the suit was decreed. Exhibit P.3/D.5 are the copies of the decree- sheets produced by the parties. On 24.1.1946 mutation No. 521 was sanctioned in terms of the compromise decree and Bhan Singh was shown as mortgagee in possession under Kashmir Singh. After the sanction of the aforesaid mutation, Kashmir Singh sold his mortgagors right to Kundan Singh and mutation in that behalf was sanctioned. In the Jamabandis for the year 1957-58, Exhibit P.1 and for the year 1963-64, Exhibit P.2 Kundan Singh is shown as a mortgagor and Bhan Singh is shown as a mortgagee with possession for Rs. 1100/-. On 11.4.1967, Kundan Singh applied for redemption before the Collector under the Redemption of Mortgages Act (hereinafter referred to as the Act). By order dated 13.12.1968, copy Exhibit P.4, the Collector ordered redemption and in pursuance of the same, Kundan Singh obtained possession from Dalip Singh and Kishan Kaur, son and daughter of Bhan Singh mortgagee. On 21.12.1968, Dalip Singh and Kishan Kaur, legal representatives of Bhan Singh mortgagee and their vendees filed a civil suit to challenge the order of redemption under section 12 of the Act. The basis of challenge was that the declaratory decree dated 10.2.1945 had lapsed as the collateral of Harnam Singh did not file a suit for recovery of possession within three years of his death and, therefore, no order of redemption could be passed. The suit was contested by Kundan Singh who pleaded that decree dated 10.2.1945 was not the usual declaratory decree but was a compromise decree under which Bhan Singh vendee agreed to give up his rights under the sale and agreed that he would be considered as a mortgagee with possession for Rs. 1100/- for a period of five years and it was made clear in the compromise as also the statements of the parties that Kashmir Singh could redeem the mortgage only after five years of the compromise and, therefore, it was not necessary to file the suit for possession on the death of Harnam Singh and only a suit for redemption within limitation was permissible, which was done in this case.

2. The trial Court found merit in the stand taken by Kundan Singh defendant and by judgment and decree dated 30.1.1972 dismissed the suit. Earlier to this also suit was dismissed and on plaintiffs appeal, the matter was remanded for framing four more issues. On plaintiffs appeal the learned Senior Sub-Judge, Amritsar, by judgment and decree dated 18.1.1975 reversed the decision of the trial Court after accepting the stand taken on behalf of the plaintiff. In doing so, reliance was placed on Fazal Ahmad and others v. Shahab Din and others, 711 P.L.R. 1909, and Jagan Singh v. Teja Singh, 1970 P.L.R. 569. Kundan Singh defendant has come to this Court in this second appeal.

3. After perusing the entire record and considering

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