LexVEMULA SIVIAH NAIDU versus STATE OF AP. AND ANR.
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-, • VEMULA SIVIAH NAIDU A v. STATE OF AP. AND ANR. NOVEMBER 28, 1996 [K. RAMASWAMY AND G.T. NANAVATI, JJ.] B A.P. Revenue Recovery Act, 1894 : Section 5-'Defaulter'-Wlzo is-Joint family property-Sale of land for realisation of debt due to govemmellt-Validity of-S and R members of joint C family-Debt contracted by S from Govemment .under a mortgage-Ai parti- tion R was granfed a greater share as he undertook to discharge all liabilities on the joint family properties including debt contracted by S-Default in payment of Government loan-Auction sale of land for recovery of debt-Ap- pellant purchased the land in auction sale-Suit instituted by R for setting D aside of sale-Dismissal by Trial Cowt and affinnation by first Appellate Court-On appeal suit decreed by High Court-Appeal by auction pur- chaser-Held, R is a defaulter for the purpose of Section 5-The word 'defaulter' connotes the person who ·is· liable to discharge the debt as the joint family property was hypothecated to the Government for recovery of the debt taken by S and R had undertaken to redeem the debt taken by S and the E partition was subject to the above undertaking, the property was liable to be. proceeded for recovery of the debt contracted upon it--The auction-sale was in accordance with law-171e sale certificate binds R. Chatrati Sarama Murthi & Ors. v. Official Receiver Krishna & Ors., (1957) 1 AWR 216, referred to. C. Dhanalakshmi Ammal v. lncome-Tax Officer, Madras, 31 ITR 460, distinguished. /' F CIVIL APPELLATE JURISDICTION : Civil Appeal No. 721 of G 1981. From the Judgment and Order dated 28.2.79 of the Andhra Pradesh High Court in S.A. No. 632 of 1977. A.V. Rangam and A. Ranganadhan for the Appellant: 341 H 342 SUPREME COURT REPORTS [1996] SUPP. 9 S.C.R. A K. Ram Kumar and A. Subba Rao for the Respondents. The following Order of the Court was delivered : The appellant is the auction-purchaser of 5.86 acres in Ped- dayyasamudram village in Nellore District. The said land was brought to B sale on November 2, 1967 to realise the debt due to the Govt. from one K. Sankaraiah, the brother of K Radhakrishaniah, the respondent-plaintiff. The appellant had purchased the same in the said auction. He was granted the sale certificate on April 30, 1969 under Ex. B-1. Later, the second respondent, Radhakrishaniah filed the suit for setting aside the sale. The C trial Court dismissed the suit. On appeal, the District Judge confirmed the same. Jn Second Appeal No. 632177 by judgment and decree dated February 28, 1979, the learned single Judge of the High Court of Andhra Pradesh decreed the suit. Thus, this appeal by special leave. The admitted facts are that K. Sankaraiah, the debtor and the second D respondent are members of the joint family. At a partition dated July 28, 1954 under Ex. B-13, Radhakrishnaiah was granted a greater share since he had undertaken to discharge all the liabilities on the joint family properties including the debt contracted by Sankaraiah from the Govern- ment under a mortgage. The contention raised by the second re8l'onden~ which was found acceptable by the High Court, was that since he was not E a defaulter within the meaning of Section 5 of the A.P. Revenue Recovery Act, 1894 (for short, the 'Act'), the property belonging to the respondent could not be brought to sale. In support thereof, the learned Judge has relied upon another judgment of that Court in Chatrati Srirama Murthi & Ors. v. Official Receiver Krishna & Ors., (1957) 1 A WR 216. The question is: whether the view taken by the High Court is correct in law? The F Learned District Judge recorded a finding, which was also accepted by the High Court, that the properties are joint family properties hypothecated to the Government for securing the loan by Sankaraiah. The second responded under Ex. B-13 had taken bulk of the properties including the suit schedule property allotted to him in the partition with an undertaking G "to discharge all the liabilities of the erstwhile joint family including the loan obtained from the Government". Thus, the question arises : whether the second respondent is a defaulter within the meaning of Section 5 of the Act? Section 5 reads as under : "Whenever revenue may be in arrear it shall be lawful for the H Collector or other officer empowered by the Collector in that I V.S.NAIDUv. STATE 343 behalf, to proceed to recover the arrear, together within interest A an
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