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LAKSHMI ACHI AND OTHERS versus T.V.V. KAILASA THEVAR AND OTHERS

Citation: [1964] 2 S.C.R. 259 · Decided: 07-03-1963 · Supreme Court of India · Bench: S.K. DAS · Disposal: Dismissed

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Judgment (excerpt)

2 S.C.R. 
SUPREME COURT '.'IBPORTS 
259 
we uphold the decision of the High Court and dismiss 
each of 
these appeals with costs. There will, 
however, be only one hearing fee. 
Appeal& dismissed. 
--
LAKSHMI ACRI AND OTHERS 
v. 
T.v.v. KAILASA TREVAR AND OTHERS 
(S. K. DAS, A. K. SARKAR, 1\1. HrnAYATULLAH and 
N. RAJAGOPALA AYYANGAR JJ.) 
D<bt Relief-Agriculturist-Scaling down of decree debt-
Enabling statute coming into force pending appeal-Application 
made 1Jfter appellate decree, if barred by res-judicata-Madras 
Agric1.tturists Relief Act, 1938 (Mad. 4 of 1938), as amended by 
Madras Act 23 of 1948, BB. 16 (iii), 19 (2). 
The appellants had filed a suit on a mortgage against 
respondent No. I and others as defendants and had obtained 
a preliminary decree in it on May, 15, 1937 and a tinal decree 
on January 20, 1938. Appeals were filed against the preliminary 
Decree in the High Court of Madras. 
While the app.·als were 
pending there, the Madras Agriculturi•ts Relief Act, 1938 came 
into force. The defendants in this suit other than respondent 
No. 1 thereupon applied for relief under this Act. The appli-
cations succeeded and the High Court passed a new preli-
minary decree on 
March 
~!5, 1942 after sca1ing down the 
amount recoverable in accordance with the Act. 
The respondent No. I had neither contested the suit nor 
appeared in the appeal! nor made any application under the 
Act for relief. 'T'he preliminary decree passed by the High 
Court, therefore, confirmed a• against him the decree passed 
by the trial Court. 
Respondent No. I thrreafter applied to 
the trial Court for relief under the Act but the application was 
dismissed on the ground that in view of the judgment of the 
High Court the application was not maintainable in the trial 
Court. 
Respondent No. I thereafter applied to the Hig;. 
1969 
A. S. Krishnappo 
Chaltiar 
... 
NorhiaPP• Chmiar 
Mudholkor /, 
1963 
Morch 7 
I 
1963 
Lakshmi Achi 
v. 
T. V. V. Kai/au 
Thevar 
260 
SUPREME COURT REPORTS (1964]VOL. 
Court for setting aside the exparte decree in so far as it deprived 
him of the right to relief under the Act but that application 
was also dismissed. 
OnJanuary 25, 1949, Madras Act XXIII of 1948 was 
passe<l amending the 
A~t of 1938 by adding a sub-s. (2) 
to 
s. 19. 
After 
this 
amendment 
s. 
19 
read, "(l) 
where 
before 
the commencement of this Act, a court 
has passed a decree for the repayment of a debt, it shall, on 
the application of any judgment-debtor who is an agriculturist 
.... apply the provisions of this Act to such decree and shall 
notwithstanding anything contained in the Code of Civil 
Procedure, 1908, amend the decree accordingly or enter satis-
faction, as the case may be. 
(2) The provisions of sub-sec-
tion (I) shall also apply to cases where, after the commence-
ment of this Act, a Court has passed a decree for the repayment 
of a debt payable at such commencement." Section 16 of the 
amending Act provided, "The amendments made by this Act 
shall apply to the following suits and proceedings, namely :-
...... (iii) all suits and proceedings in which th• decree or 
order passed has not been executed or satisfied in full before the 
commencement of this Act ....... ". Respondent No. 1 again 
applied to the trial Court for relief under the Act in view of the 
amendment but this application was rejected. 
Respondent 
No. 1 then appealed to the High Court which granted re!iei 
under the Act. 
The appellants thereupon appealed to the 
Supreme Court. 
Held, that the decree passed by the trial Court was 
superseded by the preliminary decree passed by the High Court 
on March 25, 1942. 
The final decree on the basis of this 
preliminary decree was passed by the District Judge on Septem-
ber 25, 19+3, and this was the only operative decree in the case. 
Hence s. 19 (2) of the Act of 1938 read withs. 16 (iii) of the 
amending Act created a new right in favour of defendant No. 1. 
Jowad Hussain v. Gendan Singh, A. I. R. (1926) P. C. 93, 
Gajadhar Singh v. Kishan Jiwan Lal, ( 1917) I. L. R. 39 All. 
641, The Collector of Customs Calcutta v. 
Th~ Ea•t Indian 
Commercial Go. Ltd. [1963] 2 S. C.R. 563, referred to. 
In the Act the word "debt" includes a decretal debt. 
Narayanan 
Ohettiar v. 
Amm.amalai 
Ohettiar, [1959] 
Supp. I S. C. R. 237, followed. 
Clause (iii) of s. 16 of the amending Act applies to this 
~ase because the final decree had not been s~tisJ!ed in fu)l before 
2 S.C.R. 
SUPREM;E COURT REPORTS 
261 
the 

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