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1964 Supreme(P&H) 133

PUNJAB & HARYANA HIGH COURT
D.K.Mahajan, J.
Mathra Puri
Versus
Hukam Chand
Second Appeal No. 789 of 1963,
Decided On : SEPTEMBER 2, 1964

A tenancy created by a mortgagee will not necessarily come to an end with the redemption of the mortgage. However, the tenant inducted by the mortgagee must prove that the tenancy was created as a prudent owner of property in the usual course of management.

Headnote:

TENANCY - MORTGAGE - REDEMPTION - EFFECT ON TENANCY - TENANCY CREATED BY MORTGAGEE - BINDING ON MORTGAGOR AFTER REDEMPTION - CONDITIONS - TRANSFER OF PROPERTY ACT, 1882, S. 76(A).

Fact of the Case:

The plaintiffs, mortgagees of land, redeemed the mortgage from Pratap Chand, who had inducted the defendants as tenants on the land. The defendants claimed that they were tenants of the plaintiffs and that the redemption of the mortgage did not affect their tenancy.

Finding of the Court:

The court held that the defendants were not tenants of the plaintiffs and that the redemption of the mortgage put an end to their tenancy.

Issues: Whether the redemption of the mortgage by the plaintiffs put an end to the defendants' tenancy.

Ratio Decidendi: A tenancy created by a mortgagee will not necessarily come to an end with the redemption of the mortgage. However, the tenant inducted by the mortgagee must prove that the tenancy was created as a prudent owner of property in the usual course of management. In the present case, the defendants failed to prove this exception and therefore their tenancy came to an end with the redemption of the mortgage.

Final Decision: The appeal was dismissed with costs.

Judgment

1. In this second appeal the only question that has been debated before me is covered by issue No. 5 which is in these terms:

"5. Whether the plaintiffs got the land redeemed for Pratap Chand if so what is the effect on the tenancy of the defendants?"

This facts of this case are that the land in dispute which was owned by the defendants Mathra Puri and Somwar Puri was mortgaged by their mother Mst. Partapi when they were minors to secure an advance of Rs. 3, 421. This amount was due by the husband of Mst. Partapi to the father of the defendants Hukam Chand and others on the basis of a bahi entry. The mortgage was in favour of Hukam Chand and other s plaintiff-respondents. The plaintiffs mortgaged their mortgagee rights in this land to Pratap Chand. Partap Chand inducted the respondents as tenants on the land in the year 1956. In the year 1957 the plaintiffs brought a suit for possession of the land in dispute by redemption. The trial Court dismissed the suit holding that the defendants were not bound by the mortgage created by their mother. On appeal by the plaintiffs the trial Courts decree was the aside and it was held that he mortgage was binding on the defendants and accordingly redemption of the mortgage in favour of Pratap Chand was ordered. It appears that in the suit claim was made for possession against the defendants but that question was left open by the court and the plaintiffs were directed to seek possession so far as defendants were concerned by a separate suit. Accordingly on 22nd October, 1959, the present suit for possession was filed against the defendants. The defendants raised the plea that they were in possession of the land as owners inasmuch as the mortgage by their mother was not binding on them. They also raised the plea that even if they were tenants they could not be evicted. The trial Court held that the mortgage by the mother was binding on the minor as it was for the minors benefit. IT was however held that the mortgage could not be challenged by the minors as more than three years had elapsed after their attaining majority.

It was further held that the plaintiffs were in possession of the property as mortgagees for over 12 years and had got it redeemed from Partap Chand and the rights of the defendants came to an end as soon as the mortgage in favour of Pratap Chand was redeemed. Against this decision the defendants went up in appeal and before the District Judge only tow contentions were advanced: (1) that the defendants were the tenants of the plaintiffs and therefore the order of redemption in their favour and against Pratap Chand did not in any manner affect them and (2) that in any case the defendants being tenants of Pratap Chand the redemption of the mortgage by the plaintiffs put an end to the defendants tenancy because the tenancy would fall with the mortgage the tenancy having been created by the mortgagee. It is against this decisions that the present second appeal has been preferred.

2. Mr. Jagan Nath Kaushal, learned counsel for the defendant-appellants, has rightly not contested the finding of the learned District Judge that the defendants are not proved to be the tenants of the plaintiffs. He has only confined his argument to the second contention that was raised before the learned District Judge. his contention is that the redemption of the mortgage does not put an end to the defendants who were inducted on the land by the mortgagee because the tenancy is an agricultural tenancy.

In this connection the relies on the decision of the Supreme Court in Asa Ram V/s. Mst. Ram Kali, AIR 1958 SC 183, wherein their Lordships made the following observations- "The law undoubtedly is that no person can transfer property so as to confer on the transferee a title better than what he possess. Therefore any transfer of the property mortgaged by the mortgagee must cease, when the mortgage is redeemed. Now S. 76(a) (of the Transfer of Property Act ) provides that a mortgagee in possession


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