Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Displaced Person Usufructuary mortgage |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Displaced Person-Debt-Adjustment-Usufructuary mortgage-Whether mortgagor a debtor-Scaling down of mortgage debt-Whether only in a suit for redemption of mortgage- Tribunal's jurisdiction -"Value of the lands"-How to be computed- Whether in terms of market value alone-Whether in terms of comparable Standard acres -Displaced Persons (Debts Adjustments) Act, 1951 (LXX of 1951) ss. 2 (6), 2 (9), 4, 5, 16, 29. Both the appellants as well as the respondents originally belonged to that part of Punjab which is now in Pakistan. In 1933 respondent No. 2 effected an usufructuary mortgage of a certain land to the father of appellants Nos. 1 to 3 and to the 4th appellant's father to secure a sum of Rs. 39,000/-. Apart from the provisions for the payment of interest the mortgage deed also fixed a term of 10 years beyond which alone the mortgagee could sue for the recovery of the mortgage money. Four years after the execution of the mortgage deed the mortgagor sold a major portion of the property to one Guranditta Ram. Out of the consideration for this sale a sum of Rs. 26,500/- was left with the transferred to be paid in discharge of the mortgage. This sum was not paid to the mortgagee and thus the entire mortgage amount remained outstanding. On the partition of the country in l 94 7 both the mortgagor as well as the mortgagee moved into India and they were "displaced persons''. The mortgagor was as displaced person allotted agricultural land in India on the basis of his original holding in Pakistan. The appellants as the mortgagees entitled to possession of the lands were put in possession of this land. The respondents applied under s. 5 of the Displaced Persons (Debts Adjustment) Act, 1951, to get the mortgage - debts adjusted according to the provisions of s. 16 of the Act. Certain objections raised by the appellants to this application were overruled and the mortgage debt was scaled down. An appeal was preferred to the Punjab High Court and the Single Judge who heard the appeal dismissed it. A Letters Patent Appeal preferred by the appellants was dismissed in limine and a certificate of fitness was refused. The present appeal is by way of special leave granted by this Court. The first contention raised before this Court was that the first respondent was not a "debtor" within the meaning of s. 2 (6) of the Act because there was no contractual relation· ship of debtor and creditor between him and the displaced creditor i. e. the appellants. The next contention was that the liability under a mortgage debt could be scaled down and adjusted under the Act only in a suit for redemption filed by the creditor and that it was incompetent for a debtor to invoke the jurisdiction of the tribunal to effect the scaling down by an application under s. 5. Finally it was argued that under the proviso to s. 16 (4) of the Act the reduction of the debt has to be in the same proportion as "the value of the lands" allotted to the creditor in India bears to the "value of the lands'' left by him in Pakistan and "value" according to the appellant meant market value. |
Judge | Hon'ble Mr. Justice N. Rajagopala Ayyangar |
Neutral Citation | 1963 INSC 56 |
Petitioner | Naunihal Kishan And Others |
Respondent | R. S. Ch. Pratap Singh And Another |
SCR | [1964] 2 S.C.R. 293 |
Judgement Date | 1963-03-13 |
Case Number | 594 |
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