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1949 Supreme(Nagpur) 39

HIGH COURT OF NAGPUR
Sen
MANOHAR JANARDHAN AND ANOTHER – Appellant
Versus
YADO ISINATH AND OTHERS – Respondent
Second Appeal No. 182 of 1945
Decided on : 04-04-1949

Advocates Appeared:
P R Padhye, R R Dandige, Advocates

The main legal point established in the judgment is the entitlement to exclude the period during which proceedings were pending before the Debt Conciliation Board and the Debt Relief Court, as provided by the Central Provinces and Berar Debt Conciliation Act, 1933, and the Central Provinces and Berar Relief of Indebtedness Act, 1939, in computing the period of limitation for filing the suit on the mortgage.

Headnote:

Limitation - Mortgage - Central Provinces and Berar Debt Conciliation Act, 1933, Central Provinces and Berar Relief of Indebtedness Act, 1939 - Section 23 of the Central Provinces and Berar Debt Conciliation Act, 1933, and section 24 of the Central Provinces and Berar Relief of Indebtedness Act, 1939 - Acknowledgment of liability by mortgagor - Exclusion of period during which proceedings were pending - Subsequent mortgagees' liability - Entitlement to exclude period in computing limitation

Fact of the Case:

The plaintiff filed a suit to enforce a mortgage dated 26th May 1928, which was held to be barred by limitation. The plaintiff claimed exemption from limitation based on acknowledgment by the mortgagor and exclusion of the period during which proceedings were pending before the Debt Conciliation Board and the Debt Relief Court.

Finding of the Court:

The plaintiff's claim was initially dismissed as barred by limitation, but the appellate court reversed the decision, holding that the plaintiff was entitled to exclude the period during which proceedings were pending, and thus, the claim was within limitation.

Issues: Whether the plaintiff's claim for enforcement of the mortgage was within limitation based on acknowledgment by the mortgagor and exclusion of the period during which proceedings were pending.

Ratio Decidendi: The court held that the plaintiff was entitled to exclude the period during which proceedings were pending before the Debt Conciliation Board and the Debt Relief Court, as provided by the Central Provinces and Berar Debt Conciliation Act, 1933, and the Central Provinces and Berar Relief of Indebtedness Act, 1939. The acknowledgment of liability by the mortgagor and the subsequent mortgagees' liability were also considered in determining the claim's limitation.

Final Decision: The appellate court reversed the dismissal of the plaintiff's suit, granting a preliminary decree for sale in favor of the plaintiff against the defendants, and allowing the plaintiff to exclude the period during which proceedings were pending, thus holding the claim to be within limitation.

JUDGMENT

Sen—This is a plaintiff's appeal and arises out of a suit on a mortgage. The question for decision in this appeal is whether the plaintiff's claim for enforcement of the mortgage dated the 26th May 1928, made on the 7th September 1943, was within limitation.

2. Both the Courts below have held that the claim was barred by limitation and accordingly dismissed the claim. It is. against this decree that the plaintiff Janardan filed the present appeal. After the filing of the appeal he died and his widow Indirabai, and son Manohar, were substituted as his legal representatives. The mortgagor Isinath also died and his widow Mst. Laxmi and sons Yado and Sadu were substituted as his legal representatives. One of the subsequent mortgagees, Bapu, also died and in his place his widow Satya-bhamabai, and his four sons, Namdeo and others, were substituted.

3. Isinath executed a simple mortgage (Exhibit P-1) on the 26th May 1928 in favour of Janardan for Rs. 625. The amount was payable with interest at 1 per cent per mensem compound with annual rests. The amount of the mortgage with interest was payable in 9 months i.e. on the 26th February 1929. Under the mortgage Isinath mortgaged his absolute occupancy plot No. 202, area 13.21 acres, rental Rs. 18-8-0 and his house at mouza Utikata, measuring 22 cubits east-west and 15 cubits north-south.

4. Isinath subsequently executed a mortgage by conditional sale on the 19th July 1929 in favour of Nanhosao, Bapu, Pandurang, and Bala, for Rs. 825 with prospective interest Rs. 100, in all Rs. 925. He agreed to pay interest at 11/2 per cent per mensem compound with annual rests. Under this mortgage, in addition to the property already mortgaged under the mortgage Exhibit P-1. dated the 26th May 1928, to Janardan, Isinath mortgaged his absolute occupancy plot No. 205 and a 'kotha'. The amount was not paid and the mortgagees Nanhosao and others filed civil suit No. 171 of 1932 to enforce the mortgage against Isinath and Janardan. Exhibit P-3 is a certified copy of the plaint. The details of the mortgage were set out and the mortgagees claimed foreclosure of the mortgaged property in default of the payment of the decretal amount on the due date. The plaint shows that the dimensions of the house mortgaged were 13 cubits east-west and 14 cubits north-south. This was less than the area which had been mortgaged to Janardan.

5. A preliminary decree for foreclosure was passed on the 7th July 1932 and a final decree on the 11th March 1933. Certified copies of the decrees are not on the record and it is not possible to state what was the decree that was passed against Janardan. Presumably, no decree could have been passed against him because he was a prior mortgagee and the subsequent mortgagees wanted merely to foreclose the mortgage. On the 29th March 1933 the mortgagee decree-holders obtained possession of both the occupancy plots Nos. 205 and 202, area 14.12 acres, rental Rs. 20/12 and half of the tiled house and half of the 'kotha' belonging to the mortgagor. Exhibit P-2 is a certified copy of the receipt for possession dated the 29th March 1933. The dimensions of the house as given in the receipt are 22 cubits east-west and 9 cubits north-south, which was less than the area that had been mortgaged to Janardan.

6. Notwithstanding that Isinath had lost the property by forclosure in civil suit No. 171 of 1932, he made an application on the 17th December 1936 to the Debt Conciliation Board, Sausar, for conciliation of his debts and he made the creditors, namely Janardan, Bapu and Bala as parties to the application. Exhibit P-4 is a certified copy of a register entry and it shows that the application was dismissed on the 28th September 1938. The proceedings before the Debt Conciliation Board were pending for 1 year, 9 months, and 11 days.

7. On the 15th November 1940 Isinath made a fresh application (Exhibit P-7) to the Debt Relief Court, Sausar, for determination of his debts. The application was dismissed on














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