PUNJAB & HARYANA HIGH COURT
S.S.Sandhawalia, Prem Chand Jain and G.C.Mittal JJ.
Siri Chand
Versus
Nathi
Civil Revision No. 345 of 1981,
Decided On : JANUARY 21, 1983
LIMITATION - ORAL MORTGAGE - VALIDITY - PERIOD OF LIMITATION FOR REDEMPTION - TRANSFER OF PROPERTY ACT, 1882, SEC. 59 - EXTENSION TO HARYANA - EFFECT.
Fact of the Case:
Plaintiff filed a suit for possession by way of redemption on the ground that the land in dispute had been mortgaged by him with possession with the defendants by an oral mortgage on June 14, 1948 for a sum of Rs. 2,000.00. The mutation with regard to this oral transaction was sanctioned later on Sept. 17, 1948. The case of the plaintiff was that he had already paid Rs. 2,000.00 to the defendants on or about April 1, 1976, but the latter did not get the revenue entries corrected in his name, hence the suit for a decree of possession by redemption and in the alternative if the payment of Rs. 2,000.00 was not proved, a decree for possession by way of redemption on payment of mortgage money. In the said suit, apart from other defendants, Smt. Ram Kali was also impleaded as defendant No. 3.
Finding of the Court:
The court held that prior to the extension of Section 59 of the Transfer of Property Act, 1882 to Haryana, oral or unregistered mortgages were valid in the eye of law and the fact whether the mortgage was registered or not, was wholly irrelevant with regard to the issue of its validity. Consequently, the terminus for limitation for redemption has to run from the date of the oral mortgage.
Issues: Whether an oral mortgage was a valid one in the eye of law on June 14, 1948, in the erstwhile State of Punjab, that is, prior to the extension of the provisions of Section 59 of the Transfer of Property Act, 1882.
Ratio Decidendi: The court distinguished the case of Purusottam Das V/s. S.M. Desouza, AIR 1950 Orissa 213, which was relied upon by the Division Bench in Inder Singh V/s. Mst. Kishno, (1966) 68 Pun LR 408, on the ground that in Purusottam Das's case, the mortgage was void and invalid as it was unregistered, whereas in the present case, the oral mortgage was valid and legally enforceable as the provisions of Section 59 of the Transfer of Property Act had not been extended to Haryana at the time of the mortgage.
Final Decision: The court allowed the civil revision petition, set aside the impugned order of the trial court, and dismissed the application for bringing the legal representatives on the ground of limitation.
S.S.SANDHAWALIA, J.
1. A meaningful challenge to the ratio of the Division Bench judgment in Inder Singh V/s. Mst. Kishno, (1966) 68 Pun LR 408, has inevitably necessitated this reference to the Full Bench.
2. As would be apparent hereinafter, the legal issue falls within a somewhat narrow compass. It, therefore suffices to notice briefly the facts which are directly relevant to the question.
3. The plaintiff-respondent Nathi instituted a suit for possession by way of redemption on Oct. 4, 1977 on the ground that the land in dispute had been mortgaged by him with possession with the defendants by an oral mortgage on June 14, 1948 for a sum of Rs. 2,000.00 . The mutation with regard to this oral transaction was sanctioned later on Sept. 17, 1948. The case of the plaintiff was that he had already paid Rs. 2,000.00 to the defendants on or about April 1, 1976, but the latter did not get the revenue entries corrected in his name, hence the suit for a decree of possession by redemption and in the alternative if the payment of Rs. 2,000.00 was not proved, a decree for possession by way of redemption on payment of mortgage money. In the said suit, apart from other defendants, Smt. Ram Kali was also impleaded as defendant No. 3.
4. All the defendants except Smt. Ram Kali defendant No. 3 contested the suit inter alia on the ground that the same was not within time and further that it was barred on the principle of res judicata. The factum of mortgage was also denied. Specific objection was taken that since defendant No. 3 had already expired on Aug. 14, 1972, the suit had been filed against a dead person and was, therefore, incompetent.
5. The application giving rise to the present Civil Revision was presented on behalf of the plaintiff on Aug. 16, 1978 for bringing the legal representatives of defendant No. 3 on the record stating that he had come to know about the death of Smt. Ram Kali defendant No. 3 on July 21, 1978. This application was contested on behalf of the defendants and was ultimately dismissed on Nov. 24, 1979 by the order of the then trial Judge Shri B.L. Singal. This dismissal was assailed by way of revision which was allowed by this Court in the following terms :-
"It is agreed between the counsel that the impugned order may be set aside but the finding that Smt. Ram Kali died on Aug. 14, 1972 be kept intact. It is further agreed that application dated August 14, 1978 for bringing legal representatives of Ram Kali on record be treated under O.1, R.10 of the Civil P.C. and be decided taking into consideration sub-rule 5 of O.1, R.10 of this Code, Sec.21 of the Limitation Act, and observation in Joginder Singh V/s. Krishan Lal, AIR 1977 Punj and Har 180."
In compliance with the above, the trial Court then heard the arguments afresh and by its detailed order dated Dec. 17, 1980, which is under revision, allowed the application and directed the impleading of the legal representatives of Smt. Ram Kali to be brought on the record. In doing so, it relied primarily on the Division Bench judgment in Inder Singh case (1966-68 Pun LR 408) (supra) for holding that the application was within the period of limitation of 30 years which would start after the expiry of twelve years from the date of the original oral mortgage. It is this stand which has been assiduously assailed in this revision petition which was admitted for hearing by the Division Bench at the motion stage and the case was later directed to be placed before the Full Bench vide the lucid referring order of the Division Bench dated Nov. 2, 1981.
6. Now it would be manifest on a reference to the material facts that the core question herein is whether an oral mortgage was a valid one in the eye of law on June 14, 1948, in the erstwhile State of Punjab, that is, prior to the extension of the provisions of Section 59 of the Transfer of Property Act, 1882. To clear the decks for the consideration of this legal issue, an arena of admitted premises on which there is n
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