{"id":189716,"date":"1965-05-06T00:00:00","date_gmt":"1965-05-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/sachdanand-prasad-vs-babu-sheo-prasad-singh-on-6-may-1965"},"modified":"2017-10-25T01:32:45","modified_gmt":"2017-10-24T20:02:45","slug":"sachdanand-prasad-vs-babu-sheo-prasad-singh-on-6-may-1965","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/sachdanand-prasad-vs-babu-sheo-prasad-singh-on-6-may-1965","title":{"rendered":"Sachdanand Prasad vs Babu Sheo Prasad Singh on 6 May, 1965"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Sachdanand Prasad vs Babu Sheo Prasad Singh on 6 May, 1965<\/div>\n
Equivalent citations: 1966 AIR 126, \t\t 1966 SCR (1) 158<\/div>\n
Author: R Bachawat<\/div>\n
Bench: Bachawat, R.S.<\/div>\n
           PETITIONER:\nSACHDANAND PRASAD\n\n\tVs.\n\nRESPONDENT:\nBABU SHEO PRASAD SINGH\n\nDATE OF JUDGMENT:\n06\/05\/1965\n\nBENCH:\nBACHAWAT, R.S.\nBENCH:\nBACHAWAT, R.S.\nSUBBARAO, K.\nDAYAL, RAGHUBAR\n\nCITATION:\n 1966 AIR  126\t\t  1966 SCR  (1) 158\n\n\nACT:\nIndian Trusts  Act, 1882 (Act 2 of 1882), s. 90 illustration\n(c)-Default  lo Pay entire rent by mortgagor and a  trifling\npart  of  rent by mortgagee-Rent decree\t and  sale-Mortgagee\npurchases the land-1f mortgagor entitled to redeem.\n\n\n\nHEADNOTE:\nThe   ancestors\t of  the  appellants  created\tusufructuary\nmortgages  in  favour  of  the\trespondent.   The  mortgaged\nproperty  was  a part of a larger holding.   The  mortgagee-\nrespondent  had agreed to pay a portion of the rent  of\t the\nentire holding and the mortgagors agreed to pay The  balance\nrent payable in respect of it.\tThe mortgagors defaulted for\nseveral\t years in payment of the rent.\tThe  mortgagee\tpaid\nalmost\tthe entire amount of the rent but defaulted  in\t the\npayment\t of a trifling sum.  The landlord obtained a  decree\nfor  arrears of rent, and at rent sales the  mortgagee\tpur-\nchased\tthe lands.  The appellant-s-mortgagors filed a\tsuit\nfor  redemption\t of the mortgage, which was decreed  by\t the\ntrial  court.  The mortgagee appealed, which was allowed  in\npart passing a decree for redemption of a small plot only on\nthe  ground  that this portion of land was not sold  at\t the\nrent  sale.   The mortgagors' appeal to the High  Court\t was\ndismissed.   In\t appeal\t by special  leave,  the  mortgagors\ncontended  that\t the  purchases at the\trent  sale  and\t the\ncertificate  sale  were made by the  mortgagee\tby  availing\nhimself of his position as such as having regard to s. 90 of\nthe  Indian  Trusts  Act and Illustration  (c)\tto  it.\t the\npurchases  enured for the benefit of the mortgaors and\tthey\nwere entitled to redeem the entire mortgaged lands.\nHELD : The portion of the rent which the mortgagee failed to\npay  was  so small that it was impossible to  say  that\t the\nproperty was brought to sale for it or that his default\t was\nin  any real sense a contributory cause of the site  of\t the\nproperty.  It was not shown that non-payment of the  titling\nsum by the mortgagee was made mala fide or with the ulterior\nobject\tof  the\t property  being put up\t for  sale  and\t his\nbecoming  the purchaser of it.\tThe mortgagee did  not\tgain\nany advantage by availing himself of his position as such or\nof  a  situation  brought about by his\tdefault.   The\treal\neffective  cause  of  the  sale\t was  the  default  of\t the\nmortgagor& alone.  L161 E-G]\nIn  the\t circumstances, s. 90 of the Indian Trusts  Act\t and\nIllustration (c) to it were not attracted, and the  purchase\nby  the\t mortgagee  did not enure for  the  benefit  of\t the\nmortgagors.    The  rent  sale\tand  the  certificate\tsale\nextinguished the right of redemption. [161 G-H]\nBasmat\tDevi v. Chamru Sao, A.I.R. 1964 S.C. 1707,  referred\nto.\n\n\n\nJUDGMENT:\n<\/pre>\n
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 180 of 1963.
\nAppeal\tby special leave from the judgment and decree  dated
\nFebruary  19,  1958 of the Patna High Court in\tAppeal\tfrom
\nAppellate Decree No. 919 of 1954.\n<\/p>\n
Sarjoo Prasad and B. P. tha, for the appellants,
\n159<\/span>
\nA.   V.\t Viswanatha Sastri, B. K. P. Sinha and A. G.  Ratna-
\nparkhi, for the respondent.\n<\/p>\n
The Judgment of the Court was delivered by
\nBachawat, J. The plaintiffs-appellants instituted Title Suit
\nNo.  91\t of  1950,  out of which  this\tappeal\tarises,\t for
\nredemption   of\t two  usufructuary  mortgages\tcreated\t  by
\nplaintiff  No.\t1 and ancestors of plaintiffs Nos.  2  to  6
\ndated  July  5,\t 1927 and April 15, 1928 in  favour  of\t the
\ndefendant  for\tRs. 1,000 and Rs. 1,300\t respectively.\t The
\nmortgage dated July 5, 1927 was in respect of 7.20 acres  of
\noccupancy raiyati lands, consisting of four plots Nos.\t149,
\n155, 955 and 957, in village Hichapur under the Tikari\tRaj.
\nThe  mortgaged lands were part of a larger holding of  23.69
\nacres under khata No. 59, and the annual rent of the  entire
\nholding\t was Rs. 153-3-0.  The mortgage deed  provided\tthat
\nthe  mortgagee would pay Rs. 33-14-9 out of the\t total\trent
\npayable\t to  the landlord and the mortgagors would  pay\t the
\nbalance\t rent.\t There was default in payment  of  rent\t for
\nseveral years.\tThe landlord obtained a, decree for  arrears
\nof  rent,  and at the rent sale held on June 18,  1934,\t the
\nmortgagee-defendant  purchased\tthe Hichapur  lands  in\t the
\nfarzi name of Dwarkalal.\n<\/p>\n
The  mortgage  dated April 15, 1928 was in respect  of\t7.20
\nacres  of lands in village Utrain tinder kahas\tmahal.\t The
\nmortgaged  lands were part of a larger holding of  1988\t 1\/2
\nacres in khata No. 269.\t The, rent of the entire holding was
\nRs. 155-4-0.  The mortgage deed provided that the  mortgagee
\nwould pay Rs. 68-10-9 out of the total rent and the  balance
\nrent would be payable by the mortgagors.  There was  default
\nin   payment  of  rent\tfor  several   years.\t Certificate
\nproceedings were started for the recovery of the arrears  of
\nrent,  and at a certificate sale held on January  22,  1934,
\nthe  Utrain  lands were purchased by the  defendant  in\t the
\nfarzi name of Deonarain.\n<\/p>\n
It  appears that out of the sum of Rs. 33-14-9 pay  able  by
\nthe  mortgagee\tannually  on  account of  the  rent  of\t the
\nHichapur  lands,  the  mortgagee consistently  paid  Rs.  33
\nannually,  but\tdid not pay the balance sum of\t14  annas  9
\npies,  whereas\tthe  mortgagors\t consistently  defaulted  in
\npayment\t of the sum of Rs. 119-4-3 payable by them  annually
\non  account of the total rent.\tIt also appears that out  of
\nthe sum of Rs. 68-10-9 payable by the mortgagee annually on-
\naccount\t of  the  rent of the Utrain  lands,  the  mortgagee
\nconsistently  paid  Rs.\t 68 annually but  did  not  pay\t the
\nbalance\t sum  of  10 annas 9 pies,  whereas  the  mortgagors
\nconsistently defaulted
\n160<\/span>
\nin payment of the sum of Rs. 86-9-3 payable by them annually
\non account of the total rent.\n<\/p>\n
The trial Court decreed the suit.  The first appellate Court
\nallowed\t the appeal in part, passed a decree for  redemption
\nof  3.93 acres of plot No. 955 only on the ground that\tthis
\nportion\t of the land was not sold at the rent sale and\tgave
\nleave  to the defendant to withdraw Rs. 1,000  deposited  by
\nthe plaintiff in respect of the mortgage dated July 5, 1927.
\nThe  High Court dismissed a second appeal preferred  by\t the
\nplaintiffs.   The  plaintiffs now appeal to  this  Court  by
\nspecial leave.\n<\/p>\n
The  plaintiffs contend that the purchases at the rent\tsale
\nand  the  certificate  sale were made by  the  mortgagee  by
\navailing  himself of his position as such and having  regard
\nto  s. 90 of the Indian Trusts Act and Illustration  (c)  to
\nit,  the purchases enured for the benefit of the  plaintiffs
\nand they are entitled to redeem the entire mortgaged  lands.
\nThe defendant-mortgagee disputes this contention, and claims
\nthat   the  aforesaid  sales  extinguished  the\t equity\t  of
\nredemption.\n<\/p>\n
Section 90 of the Indian Trusts Act and Illustration (c)  to
\nit are as follows :\n<\/p>\n
\t      “Where  a tenant for life, co-owner  mortgagee
\n\t      or  other qualified owner of any property,  by
\n\t      availing\thimself\t of his\t position  as  such,
\n\t      gains an advantage in derogation of the rights
\n\t      of   the\tother  persons\tinterested  in\t the
\n\t      property,\t  or  where  any  such\t owner,\t  as
\n\t      representing  all persons interested  in\tsuch
\n\t      property,\t gains any advantage, he must  hold,
\n\t      for the benefit of all persons so\t interested,
\n\t      the  advantage  so  gained,  but\tsubject\t  to
\n\t      repayment\t by such persons of their due  share
\n\t      of  the expenses properly incurred, and to  an
\n\t      indemnity\t  by   the  same   persons   against
\n\t      liabilities  properly contracted,\t in  gaining
\n\t      such advantage.<\/p><\/blockquote>\n
\t      (c)   A  mortgages land to B, who enters\tinto
\n\t      possession.   B allows the Government  revenue
\n\t      to  fall into arrears with a view to the\tland
\n\t      being put up for sale and his becoming himself
\n\t      the purchaser of it.  The land is\t accordingly
\n\t      sold  to\tB. Subject to the repayment  of\t the
\n\t\t\t    amount due on the mortgage and of his
\n expenses
\n\t      properly\tincurred as mortgagee, B  holds\t the
\n\t      land for the benefit of A.”\n<\/p>\n
\t      161<\/span><\/p>\n
In Basmat Devi v. Chamru Sao(1), a part of one entire  hold-
\ning was mortgaged, both the mortgagor and the mortgagee were
\nliable\tto  pay\t the  rent of  the  holding,  both  of\tthem
\ndefaulted  in  payment\tof the rent,  the  default  of\tboth
\ncontributed to the passing of a rent decree and the sale  of
\nthe holding in execution of, the decree, the default of\t the
\nmortgagee being substantial, and the mortgagee purchased the
\nholding\t at the execution sale.\t On these facts, this  Court
\nheld  that  the\t mortgagee clearly gained  an  advantage  by
\navailing himself of his position as such, and having  regard
\nto  s. 90 of the Indian Trusts Act his purchase\t must  inure
\nfor  the  benefit of the mortgagor, and\t the  mortgagor\t was
\nentitled  to redeem the mortcaged property.  In\t that  case,
\nDas Gupta, J. observed
\n\t      “Whether\tthis  would be true even  where\t the
\n\t      portion  which the mortgagee is liable to\t pay
\n\t      is  so  very small that the  property  is\t not
\n\t      ordinarily  likely to be brought to  sale\t for
\n\t      that  amount,  it\t is unnecessary\t for  us  to
\n\t      decide in the present case.”\n<\/p>\n
The question left open by Das Gupta, J. arises for  decision
\nin  the\t present case.\tThis is a case where  the  mortgaged
\nproperty  is part of a larger holding, the mortgagee  agreed
\nto pay a portion of the rent of the entire holding, and\t the
\nmortgagors agreed to pay the balance rent payable in respect
\nof  it.\t  The mortgagors defaulted in payment  of  the\trent
\npayable\t by  them.   The mortgagee paid\t almost\t the  entire
\namount\tof the rent payable by him but defaulted in  payment
\nof  a  trifling\t sum.  The portion of  the  rent  which\t the
\nmortgagee failed to pay is so small that it is impossible to
\nsay that the property was brought to sale for it or that his
\ndefault\t was in any real sense a contributory cause  of\t the
\nsale  of the property. it is not shown that  non-payment  of
\nthe  trifling  sums by the mortgagee was made mala  fide  or
\nwith  the ulterior object of the property being put  up\t for
\nsale  and his becoming the purchaser of it.   The  mortgagee
\ndid  not  gain\tany advantage by  availing  himself  of\t his
\nposition as such or of a situation brought about by his\t own
\ndefault.   The\treal  effective cause of the  sale  was\t the
\ndefault\t of the mortgagors alone.  In the circumstances,  s.
\n90  of the Indian Trusts Act and Illustration (c) to it\t are
\nnot  attracted, and the purchase by the mortgagee  does\t not
\ninure for the benefit of the mortgagors.  The rent sale\t and
\nthe  certificate sale extinguished the right of\t redemption.
\nConsequently,  the suit by the mortgagors for redemption  of
\nthe mortgaged property is liable to be dismissed.
\nThe  first  appellate  Court, however,\tgave  a\t decree\t for
\nredemption of 3.93 acres of plot No. 955 in Hichapur village
\nand gave
\n(1)  A.I.R. 1964 S.C. 1707.\n<\/p>\n
162<\/span><\/p>\n
liberty\t to the mortgagee to withdraw the entire sum of\t Rs.
\n1,000 deposited by the plaintiffs in respect of the mortgage
\nof the Hichapur lands.\tBefore the High Court the plaintiffs
\ncontended,  relying upon the last paragraph of s. 60 of\t the
\nTransfer  of Property Act, 1882, that they were entitled  to
\nredeem\tthe aforesaid 3.93 acres of Utrain lands on  payment
\nof  the proportionate amount of the mortgage  money  payable
\nunder  the  mortgage  dated July 5, 1927.   The\t High  Court
\nnegatived  this contention.  The Courts below observed\tthat
\n3.93  acres of plot No. 955 of the Hichapur lands  were\t not
\nsold  at  all at the sale held on June 18, 1934,  but  quite
\ninconsistently,\t the  Courts below also\t observed  that\t the
\naforesaid sale held on June 18, 1934 was a rent sale and was
\nmade  in  execution of a rent decree.\tLearned\t counsel  on
\nbehalf\tof both parties conceded before us that there  could
\nbe no rent sale in respect of a portion of the holding.\t  It
\nmay be that there was a rent sale, and by mistake, the\tsale
\ncertificate  omitted to mention the 3.93 acres of  plot\t No.\n<\/p>\n
955.   The relevant documents are not printed in  the  paper
\nbook.\tHaving regard to the value of the subject-matter  in
\ndispute, it is not worthwhile to call for a fresh finding on
\nthis  point.   We, therefore, indicated to counsel  on\tboth
\nsides  in course of the argument that we shall\tdecide\tthis
\nappeal\ton the footing that the sale held on June  18,\t1934
\nwas  a rent sale and the entire Utrain lands were  purchased
\nby the defendant at the rent sale.  On this footing the last
\nparagraph of s. 60 of the Transfer of Property Act, 1882 can
\nhave  no application.  The plaintiffs-appellants do not\t now
\nown the equity of redemption in any portion of the  Hichapur
\nlands.\t The Courts below, therefore, should have  dismissed
\nthe  entire  suit  for\tredemption,  and  the  question\t  of
\nredemption  of\ta portion of the property on  payment  of  a
\nproportionate amount of the mortgage money does not properly
\narise in this case.  However, the first appellate Court gave
\na decree for redemption of the aforesaid 3.93 acres of land.
\nThe High Court affirmed this decree, and there is no  cross-
\nappeal\tby the defendant-respondent.  In the  circumstances,
\nthe decree passed by the Court below must be maintained.
\nIn the result, the appeal is dismissed with costs.
\nAppeal dismissed.\n<\/p>\n
163<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Sachdanand Prasad vs Babu Sheo Prasad Singh on 6 May, 1965 Equivalent citations: 1966 AIR 126, 1966 SCR (1) 158 Author: R Bachawat Bench: Bachawat, R.S. PETITIONER: SACHDANAND PRASAD Vs. RESPONDENT: BABU SHEO PRASAD SINGH DATE OF JUDGMENT: 06\/05\/1965 BENCH: BACHAWAT, R.S. BENCH: BACHAWAT, R.S. SUBBARAO, K. DAYAL, RAGHUBAR CITATION: 1966 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-189716","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nSachdanand Prasad vs Babu Sheo Prasad Singh on 6 May, 1965 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/sachdanand-prasad-vs-babu-sheo-prasad-singh-on-6-may-1965\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sachdanand Prasad vs Babu Sheo Prasad Singh on 6 May, 1965 - 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