SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

ALLAHABAD HIGH COURT
Sudhir Agarwal, J.
Gurudeo Sahai —Appellant
versus
Swarjanik Pustkalaya & Ors. —Respondents
Second Appeal No.2479 of 1977
Decided on 20.5.2013

Counsel for the Parties:
For the Appellant:S.K.Singh, Mahendra Narain Singh, Mahesh Narain Singh, V.K. Singh, Advocates.
For the Respondents:Rajendra Kumar,Y.K.Srivastava, Rajendra Kumar Srivastava, Advocates.

IMPORTANT POINT
In absence of any stipulation in mortgage deed, original mortgagor cannot be forced to treat tenant inducted by mortgagee to be his tenants after redemption of mortgage.

Headnote:(a) Transfer of Property Act, 1882—Sections 60 and 76(a)—Redemption of mortgage—Protection of tenants of mortgagee—Mortgagor had a separate and distinct interest—He is not successor-in-interest of mortgagee—An interest created by a mortgagee shall wipe out on redemption of mortgage or expiry of period of mortgage, unless and until a different stipulation is made and provided in mortgage deed itself, in respect of such interest—Mortgagor, on redemption of mortgage, gets back his own right. Interest created by mortgagee on mortgagor’s right must disappear on ceasing of interest of mortgagee—There is nothing on record to show that mortgage deed contains any clause or stipulation, protecting rights of tenants to be inducted or may be inducted by mortgagee to continue to enjoy tenancy rights even after redemption of mortgage—Superior right of mortgagor comes, not in place of mortgagee, but, as a result of an independent title, and as such mortgagor cannot be bound by any act created or any relationship contracted between mortgagee and the tenant unless it is permitted by mortgage-deed—Judgment of lower Appellate Court set aside and that of Trial Court restored and affirmed. (Paras 8, 9, 16 and 17)

       (b) Transfer of Property Act, 1882—Sections 60 and 76(a)—Redemption of mortgage—Protection of tenants of mortgagee—In a case where tenant has been inducted by mortgagee on his own without there being any stipulation in mortgage deed, protecting tenant’s right to continue with tenanted accommodation even after redemption of mortgage, will not create a relation of “landlord” and “tenant” between mortgagor and tenant since he was a tenant inducted by mortgagee, a person having a limited right which extinguishes on redemption, causing extinction of tenancy rights of the tenant also—In absence of any stipulation in mortgage deed, original mortgagor cannot be forced to treat tenant inducted by mortgagee to be his tenants after redemption of mortgage. (Para 10)

       Result: Second Appeal allowed.

       

JUDGMENT

Sudhir Agarwal, J.—This is defendant’s appeal under Section 100 CPC. The plaintiffs/respondents (13 in numbers) (hereinafter referred to “plaintiffs”) instituted original suit No.359 of 1974 against defendant appellant Gurdev Sahai (now deceased and substituted by his heir and representative) (hereinafter referred to as “defendant”) seeking a declaration that plaintiffs are tenants in house No. 113, Mohalla Gai Ghat, Varanasi and they cannot be evicted pursuant to a decree passed in original suit No.195 of 1970, which will have no impact upon them.

2. Sri K.D.Rai, City Munsiff, Varanasi dismissed the suit vide judgment dated 8.5.1975 whereagainst two appeals were filed i.e. civil appeal No.360 of l975 by plaintiff/respondent No.1 and 364 of 1975 by rest of the plaintiffs.

3. Sri A.B.Hajela, learned Additional District & Sessions Judge (V Court), Varanasi vide judgment dated 24.8.1977 has allowed both the aforesaid appeals, hence this appeal by the defendant.

4. This court formulated following two substantial questions of law:

1. Whether defendant-appellant was entitled to dispossess the plaintiff/respondent in execution of his decree for redemption of mortgage?

2. Whether the act of mortgagee of letting out the property was a prudent act?

5. Sri M.N.Singh, learned counsel appearing for the defendant appellant contended, when tenants are inducted by mortgagee after redumption of mortgage, the tenants cease to have any right to continue to stay in the tenanted accommodation and therefore, are liable to be evicted and placed reliance on Apex Court’s decision in Carona Shoe Co. Ltd. and another v. K.C.Bhaskaran Nair, AIR 1989 SC 1110.; and Hariram Lehrumal Sindhi v. Anandrao Narayanrao Mukat; and others, AIR 1992 MP 1.

6. Per contra, Sri RK.Srivastava, learned counsel appearing for respondents submitted that finding has been recorded by lower appellate court that mortgagee’s act of letting the house was a prudent act and it is a finding of fact. That being so, tenants of mortgagee are protected under Section 76(a) of Transfer of Property Act, 1882 (hereinafter referred to as “1882 Act”) and they cannot be evicted at the time of redemption of mortgage. Their tenancy would stand permanent as the mortgagee has created tenancy in a prudent marmer. Reliance is placed on two judgments in Habib Seth v. Kashi Nath & Ors., 1968 ALJ 446. and Manzoor Husain & Ors. v. Mir Khan & Ors., 1974 ALJ 274. He further contended that after 60 years of tenancy, plaintiff-respondents are protected under the rent statute which is a special statute and gives fresh rights to the tenants hence he carmot be evicted and placed reliance on Apex Court’s decision in Mahabir Gope & Ors. v. Harbans Narain Singh & Ors., 1952 SC 205.

7. From record, the undisputed facts borne out are that house No.K1/3 (old No.66/43) initially belong to Mahadeo Dutt, father of Gurudeo Sahai, the defendant/appellant. He executed a usufructuary mortgage on 14.8.1922, of the aforesaid house, for a consideration of Rs.7,000, in favour of Smt.Rani Jagarnath Kunwar, widow of Raja Bahadur Sarpal Singh of Tiloi State of Rai Bareli district. The mortgagee died on 7th August, 1933. The plaintiffs though initially claimed that they were let out different portions of house in question by Sri Mahadeo Dutt but this fact could not be proved by plaintiffs before Courts below. The lower appellate court has found that none of the plaintiffs could prove commencement of their tenancy before 14th August, 1922 i.e. the date on which the mortgage deed was executed. A finding of fact has been recorded by both the Courts below that their tenancy rights have come into existence on various dates after 1922 and therefore, their basic contention that any or all the plaintiffs were tenants of erstwhile owner of building namely Mahadeo Dutt is not correct. On the contrary, what has been found proved is that tenancy of plaintiffs had arisen at different points of time during the period when the property w














Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top