NDLI: Raja Kamakshya Narayan Singh Bahadur Vs. Chohan Ram and Another

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Transfer of Property Act Mortgagor in possession
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Transfer of Property (amendment) Supplementary Act, 1929 (21 of 1929) Transfer of Property Act, 1882 (4 of 1882)
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Transfer of Property Act (IV of 1882), ss. 66, 65-A-Mortgage -Mortgagor in possession-Power to lease-Law before amendment Act of 1929-Permanent lease by mortgagor-Validity. Under the law as it stood prior to the enactment of s. 65-A of the Transfer of Property Act, by Act XX of 1929, the question whether the mortgagor in possession had power to lease the mortgaged property has got to be determined with reference to the authority of the mortgagor as the bailiff or agent of the mortgagee to deal. with the property in the usual course of management. It has to be determined on general 'principles and not on the distinction between an English mortgage and a simple mortgage or,on the considerations germane to s. 66 of the Transfer of Property Act, and the true position is that the mortgagor in possession may make a lease conformable to usage in the ordinary course of management; for instance, he may create a tenancy from year to year in the case of agricultural lands or from month to month in the case of houses. But it is not competent to him to grant a lease on unusual terms or to alter the character of the land or to authorise its use in a manner, or for a purpose, different from the mode in which he himself had used it before he granted the mortgage. And it is for the lessee, if he wants to resist the claim of the mortgagee, to establish that the lease in his favour was granted on the usual terms in the ordinary course of management. Where a mortgagor granted a permanent lease of the mortgaged property in the year 1925 and the High Court upheld the lease as against a person who had purchased the properties in a sale held in execution of a decree obtained by the mortgagee on the mortgage, on the ground that the lease did not impair the security of the mortgagee: Held, that the lease was not binding on the mortgagee or the auction purchaser as it was not a lease granted in the usual course of management, even though it did not impair the security. Madan "Mohan Singh v. Ra.j Ki shore Kumari (1916) 21 C.W.N. 88, approved. Balmukund v. Molila.l (1915) 20 C.W.N. 350, dissented from. Banee Prasad v. Reet Bhuninn Singh (1868) 10 W.R. 325, explained.
Judge	Hon'ble Mr. Justice Natwarlal Harilal Bhagwati
Neutral Citation	1952 INSC 46
Petitioner	Raja Kamakshya Narayan Singh Bahadur
Respondent	Chohan Ram And Another
SCR	[1953] 1 S.C.R. 108
Judgement Date	1952-10-23
Case Number	73

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Raja Kamakshya Narayan Singh Bahadur Vs. Chohan Ram and Another

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