IN THE HIGH COURT OF ALLAHABAD
Agarwala and P. L. Bhargava, JJ.
GOPAL - Appellant
Versus
JAGDISH SINGH - Respondents
Second Appeal 757 Of 1947
Decided On : 08/09/1950
AGRICULTURISTS RELIEF ACT - SECTION 34 - INTERPRETATION - PENALTY FOR NON-COMPLIANCE WITH SECTION 32 - APPLICABILITY TO SUIT BY AGRICULTURIST DEBTOR AGAINST CREDITOR - ORDER 20, RULE 10, CIVIL P. C. - DECREE FOR REDEMPTION OF ORNAMENTS - ALTERNATIVE VALUE TO BE STATED IN DECREE.
Fact of the Case:
Plaintiffs, agriculturists, sued to redeem ornaments pawned by their father with the defendant, a creditor, under the U. P. Agriculturists Relief Act, 1934. The trial court dismissed the suit, finding that the ornaments were no longer available and the plaintiffs failed to prove the rate of gold at the date of the institution of the suit. The lower appellate court decreed the suit, reducing the interest and disallowing interest after 31-3-1935 under Section 34 of the Act.
Finding of the Court:
The court held that Section 34 of the Act, which imposes a penalty for non-compliance with Section 32 (duty of creditor to maintain and furnish accounts to the agriculturist debtor), applies only to suits or proceedings against an agriculturist, not to suits by an agriculturist. The court also held that the decree passed by the lower appellate court was not in conformity with Order 20, Rule 10, Civil P. C., as it did not state the amount to be paid as an alternative if the ornaments were not returned.
Issues: 1. Whether Section 34 of the U. P. Agriculturists Relief Act, 1934 applies to suits by an agriculturist debtor against a creditor? 2. Whether the decree passed by the lower appellate court was in conformity with Order 20, Rule 10, Civil P. C.?
Ratio Decidendi: 1. Section 34 of the Act, which imposes a penalty for non-compliance with Section 32 (duty of creditor to maintain and furnish accounts to the agriculturist debtor), applies only to suits or proceedings against an agriculturist, not to suits by an agriculturist. The language of Section 34 is plain and simple, and there is no justification for adding anything to the wordings used by the legislature. A penal provision has to be interpreted strictly, and if it is so interpreted it is not likely to defeat the object of the enactment or to lead to undesirable results. 2. The decree passed by the lower appellate court was not in conformity with Order 20, Rule 10, Civil P. C., as it did not state the amount to be paid as an alternative if the ornaments were not returned. The value of the ornaments on the date of the institution of the suit should have been determined in the present suit and entered in the decree.
Final Decision: The appeal was allowed, the decree by the lower appellate court was set aside, and the case was remanded to the lower court for determination of the value of the ornaments and for the passing of a decree in accordance with law.
( 1 ) THIS appeal arises out of a suit, instituted by Jagdish Singh and his brother, Vijay Bahadur singh, the plaintiffs-respondents, to redeem certain ornaments, which had been pawned by their father, Deep Chand, with the appellant Gopal alias Gopla (defendant l), who will hereafter be referred to as the defendant, to secure a loan through Behari (defendant 2 ). The plaintiffs case was that their father had pawned three ornaments; but the defendant admitted the pawning of only two ornaments. The Courts below have found that, in fact, only two ornaments were pawned.
( 2 ) THE plaintiffs alleged that the defendant had failed to allow redemption of the ornaments in spite of notice and the offer to repay the loan. They further alleged that they and their father, deep Chand, have always been agriculturists and the defendant was a creditor by profession; consequently, they were entitled to relief under the U. P. Agriculturists Relief Act, 1934.
( 3 ) THE case put forward on behalf of the defendant was that when the plaintiffs father was unable to repay the loan, the ornaments pawned with him were sold with his consent and the sale proceeds were appropriated towards the satisfaction of the loan. He denied the plaintiffs allegation that they were agriculturists and contended that they were not entitled to any relief under the Agriculturists Relief Act.
( 4 ) THE Courts below found that the defendant had failed to prove the alleged consent or the actual sale of the ornament pawned; that the plaintiffs and their father were agriculturists while the defendant was a "creditor" and that the plaintiffs were entitled to relief under the agriculturists Relief Act. The trial Court, however, dismissed the suit on the ground that the ornaments were no longer available and the plaintiffs having failed to prove the rate of gold at the date of the institution of the suit it was not possible to find out whether anything would be due to them or the defendant.
( 5 ) THE lower appellate Court, however, came to the conclusion that the suit ought to have been decreed. The Court reduced the rate of interest and, as the defendant had not complied with the provisions of Section 32, Agriculturists Relief Act, also disallowed interest after 31-3-1935, in view of the provisions of Section 34 of the Act. Accordingly, the Court passed a preliminary decree for redemption declaring the amount due from the plaintiffs and allowing them six months time for payment. The decree contains a direction that on payment by the plaintiffs of the amount found due minus the costs of the suit, the defendant shall deliver the ornaments pawned; and that, in the event of default, the plaintiffs shall get their value calculated at the rate of gold on the date of payment in the execution department.
( 6 ) THE defendant has preferred this appeal; and the main contention put forward on his behalf is that Section 34, Agriculturists Relief Act, in terms did not apply and the lower Court had no jurisdiction to disallow any portion of the interest, payable on the loan. It has been argued that the penalty provided in Section 34 of the Act can be imposed only in any suit or proceeding relating to a loan against an agriculturist" while this was a suit by an agriculturist debtor against a creditor.
( 7 ) ADMITTEDLY, the present suit was not one against an agriculturist; it had been instituted by an agriculturist. And, Section 34, Agriculturists Relief Act, clearly lays down that the penalty provided therein is to be imposed only in a suit or proceeding relating to a loan against an agriculturist.
( 8 ) LEARNED counsel for the respondents has, however, urged that, in interpreting the relevant provision, we have to bear in mind that the Agriculturists Relief Act was enacted with the object of providing relief to agriculturists; and that in order to give relief the provisions ought to be interpreted liberally. He has pointed out that the provisions of Section 32 of the Act are
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.