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RAJA SAILENDRA NARAYAN BHANJ DEO versus KUMAR JAGAT KISHORE PRASAD NARA YAN SINGH

Citation: [1962] SUPP. 2 S.C.R. 119 · Decided: 13-12-1961 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Appeal(s) allowed

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Judgment (excerpt)

:! S.C.R. 
SUPREME COURT REPORTS 
119 
RAJA SAILENDRA NARAYAN BHANJ DEO 
v. 
KUMAR JAGAT KISHORE PRASAD 
NARA YAN SINGH 
(P. B. GAJENDRAGADKAR, A.K. SARKAR, K. c. DAS 
GuPTA and N. RAJAGOPAI.A AYYANGAR, JJ.) 
Suit for redemption decreed and accounts ordered-Appeal 
pending-Mortgage tenure vested in the Stat• by virtue of notifi-
cation .free for all encumbrances-Effect-Jurisdiction of Civil 
Courts, if barnd-Decree of redemption, if becomes infructuous-
Bihar Tenancy Act, 1885. (Bihai· 8 of 1885), s. 171-Bihar Land 
Reforms Act, 1950 (Bihar 30 of 1950), ss. 14, 35. 
K the mortgagee of certain Mokarrari tenures obtained 
a decree on his mortgage and put it into execution. Pending 
execution, C the mortgagor having failed to pay the rent of 
the mortgaged and some other tenures· they became liable to 
be solG. ;or the realisation of the ar1ears of rent under a certi-
ficate issued for the purpose. 
K whose security was thereby 
jeopardised paid the arrears and became under s. 171 of the 
Bihar Tenancy Act a mortgagee of the tenures for the amount 
paid and entitled to possc'5ion of them till repayment. K 
thereafter took possession of the tenures. After C had died in 
1941, the respondent claiming to represent his estate as recei-
ver and executor under bis will sued the appellant who had 
5uccetded to K's interest, for redemption of the mortgages on 
the allegation that K and the appellant bad realised from the 
rents of the tenures in their possession more ~ban what was 
due. The suit was decreed by the trial court. The ap-
pellant appealed to the High Court at Patna. While the 
appeal was pending there the Bih.ar Land Reforms Act, 1950, 
came into force and as a result of a notification issued under it 
all the tenures beca1ne vested in the State of Bihar free from 
all encun1brances and the proprietors, tenure-holders and all 
other persons ceased to have any interest in them _but became 
entitled to comp..::nsation £Or the divestrr1ent. 
As required by 
s. l 4 of the Land Reforms Act, the appellant filed a claim 
before the officer appointed under the .Act in respect of his 
1nortgages on the tenures and such claim was adjudge at a cer-
tain sum on notice to C's repre~entatives \vhich adjudication 
later. becarr1C final under a. l 8. 
Under the provisions of the 
Land Reforms Act, the amount so found due became payable 
out of the con1pensation awarde<l. to the proprietors and tenure-
holdcrs. 
Ther~after the appeal before the High Court came 
up for hearing. The appeltant contended that in view of the. 
provisions of s.35 of the Land Reforn1s Act a civil c.:>urt must 
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120 SUPREME COURT REPORTS (1962J SUPP· 
be deemed to have no jurisdiction to decide any question con-
cerning claims under mortgages of tenures vested in the 
Government under the Act. The High Cuurt rejected this 
CJntcntion observing that the Act barred a suit by a mortgagee 
only and not a suit by a mortgagor and confirmed the decree. 
Held, that though the Act did not expressly bar a suit b}· 
a mortgagor for redcmptiun, that was the practical and inevi-
table effect of it. The mongage accounts could not be taken 
over again by the civil court "·hen they had been taken under 
the Act and the decision in the proceedings under the Act had 
become final. 
Held, further, m the proceedings under the Act to ascer-
tain the claim of a creditor, the debtor. was entitled to show 
what had been paid to the creditor or what the creditor had 
realised from the mortgaged property. 
Held, alJO, that after a mortgagor had been divested of 
the mortgaged property under 
the Act 
a 
redemption 
decree would be infructuous as the mortgagor would not then 
be entitled to have it reconveycd to hirn. 
4'\Jeithl:r would il 
then be in the power of the mongagce tu cou \'Cy that pro-
perty. In fact the mortgagor having been dive><ed of the 
property and lost his right of redemption. 
Qtury-Whether if the mortgagee had re•lised from the 
profits of tile mortgage property more than wha1 wa> due 
him on his mortgage, a suit by the mortgagor for refund 
would lie? 
CIVIL APPELLAT.t: JURISDICTION: Civil Appeal 
No. 246 of U15ll. 
Appeal from the judgment and decree dated 
December 4, 1956; of the Patna High Court in First 
Appeal No. 429 of 1951. 
A. V. Vi8wanatha Saatri and Mohan Be/iari .Lal, 
for the appellant. 
B. K. P. SinJia and .4. G. Ratnapa

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