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1976 Supreme(All) 32

Allahbad High Court
CHANDRAPRAKASH
Harish Chandra - Appellant
Versus
Chandra Shekhar - Respondent
Decided On : 01/27/1976

Advocates:
N.L. Ganguly and Rajeshwar Prasad, for Appellants; Rajendra Kumar, G.P. Bhargava and A.N. Bhargava, for Respondents.

A deed of release can transfer title to one having no title before the transfer.

Headnote:

MORTGAGE - REDEMPTION - SUIT FOR - DEED OF RELEASE - EFFECT - TRANSFER OF TITLE - EQUITY OF REDEMPTION - DEED OF RELEASE CAN TRANSFER TITLE TO ONE HAVING NO TITLE BEFORE THE TRANSFER.

Fact of the Case:

Plaintiff filed a suit for redemption of a mortgage executed by his mother in 1930. The defendants, who were the successors of the mortgagee, resisted the suit on the ground that the property in dispute devolved on the plaintiff's sister, Smt. Kalawati, after the death of their mother and that the deed of relinquishment executed by her in favor of the plaintiff and his brothers did not confer any title. The plaintiff claimed that the deed of relinquishment executed by Smt. Kalawati in favor of him and his brothers amounted to a deed of conveyance and that he was entitled to redeem the mortgage.

Finding of the Court:

The trial court and the lower appellate court found that the transaction in dispute was a usufructuary mortgage and not a sale, and that the deed of relinquishment executed by Smt. Kalawati in favor of the plaintiff and his brothers amounted to a deed of conveyance. The courts also found that the suit was properly valued and the court-fee paid was sufficient, and that the suit did not abate on the death of Devi Prasad.

Issues: 1. Whether the transaction in dispute was a usufructuary mortgage or a sale. 2. Whether the deed of relinquishment executed by Smt. Kalawati in favor of the plaintiff and his brothers amounted to a deed of conveyance. 3. Whether the suit was properly valued and the court-fee paid was sufficient. 4. Whether the suit abated on the death of Devi Prasad.

Ratio Decidendi: 1. The courts below were right in finding that the transaction in dispute was a usufructuary mortgage and not a sale. 2. The deed of release relied upon by the plaintiff amounted to deed of conveyance and therefore, the plaintiff was certainly entitled to redeem, and after executing of the deed of release in his favour by his two brothers he was the sole person to redeem the usufructuary mortgage. 3. The Supreme Court ruling in Kuppuswami v. Arumugam (AIR 1967 SC 1395) is applicable to the facts of the case and supports the finding that a deed of release can transfer title to one having no title before the transfer.

Final Decision: The appeal was dismissed with costs.

JUDGMENT :- This is a defendants mortgagees second appeal against the judgment and decree dated 7-8-1971, dismissing the appellants appeal after confirming the judgment and decree of the trial Court.

2. The following pedigree is undisputed:-

Smt. Laxmi Bahu was undisputed owner of the house in dispute. On 10-1-1930 she executed a deed of mortgage in favour of Ram Sumer in respect of the house for Rs. 2,500. Defendants Nos. 1 and 2 are admittedly the successors in respect of all the property of Ram Sumer.

3. The suit giving rise to this appeal was filed by respondent No. 1 for the redemption of aforesaid mortgage on the allegations that Smt. Laxmi Bahu was the owner of the disputed property. She died on 30th January, 1930 leaving behind her three sons including the plaintiff and a daughter Smt. Kalawati, Defendant No. 4. By a deed of sale dated 10th December, 1947 Smt. Kalawati defendant No. 4 executed a deed of relinquishment in favour of the plaintiff and his brothers defendants Nos. 5 and 6. On 16th January, 1950, defendants Nos. 5 and 6 relinquished their shares in favour of the plaintiff by a deed of relinquishment of that date. Plaintiff alone therefore, filed the suit aforesaid for redemption against the defendants Nos. 1 and 2. The defendant No. 3 was the husband of Smt. Laxmi Bahu deceased.

4. Defendants Nos. 3 to 6 did not contest the suit and the case proceeded ex parte against them. Defendants Nos. 1 and 2 died during the pendency of the suit. Defendants Nos. 1 and 2 filed a joint written statement. They resisted the case on the ground that after the death of Laxmi Bahu, the property in dispute devolved on Smt. Kalawati, defendant No. 4 alone and the deed of relinquishment by her executed in favour of the plaintiff and her two brothers defendants Nos. 5 and 6 would not confer any title. It was denied that any deed of relinquishment was executed by Smt. Kalawati, defendant No. 4 in favour of the plaintiff or her brothers defendants Nos. 5 and 6, It was further alleged that the transaction evidenced by the deed of mortgage was in fact a sale and it was given the shape of a usufructuary mortgage in order to defeat a claim of pre-emption or custom of Zari Chaharam. According to the plaintiff, this evidence was barred by Indian Evidence Act. It was further pleaded that the suit was undervalued and the court fee paid was insufficient. It was further alleged that after the death of Devi Charan, all his heirs should have been impleaded. It was further pleaded that the suit had abated against defendant No. 3. It was also alleged that the plaintiff and his co-sharer had relinquished their rights in the mortgaged property in favour of defendants Nos. 1 and 2. Defendants Nos. 1 and 2 further claimed that they had effected improvements.

5. The trial court framed the following twelve issues in the case:-

1. Whether the plaintiff and his co-sharers, if any, have relinquished their rights in the mortgaged property in favour of the defendants Nos. 1 and 2 in the month of April 1932? If so, its effect?

2. Whether the defendants 1 and 2 have invested any amount over repairs, improvement and tax? If so, how much and whether they are entitled to recover the same?

3. To what relief, if any, is the plaintiff entitled?

4. Whether the document dated 10-1-1930 executed by Laxmi Bahu in favour of Ram Sumer Mishra was got written in the form of usufructuary mortgage instead of sole for the reasons given in para 10-K of the written statement?

5. Whether the plea taken by the defendants 1 and 2 in para 10-K of the written statement is barred by Section 91 of the Indian Evidence Act?

6. Whether Smt. Kalawati executed any deed of relinquishment on 10-12-1947 in favour of the plaintiff? If so, its effect?

7. Whether the alleged deed of relinquishment entitles the plaintiff to redeem the alleged mortgage?

8. Whether the suit is undervalued and the court-fee paid is insufficient?

9. Whether the suit is barred by limitation?

10. Whether the suit is bad for non-joi











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