Supreme Court Allows Appeal in Mortgage Redemption Case — Right of Redemption Affirmed. The court found that the right of redemption under Order 34 Rule 5 of the Code of Civil Procedure was not extinguished by the passing of a decree without specific declaration.

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Case Note & Summary

The case involved appeals against a judgment of the Kerala High Court which dismissed Civil Revision petitions under Order 34 Rule 5 of the Code of Civil Procedure, 1908. The decrees for sale were passed on 8.2.1989 and 30.7.1985, and the High Court ruled that the right to redemption was extinguished by the decree. The appellants contended that the High Court's view was untenable, arguing that the Kerala amendment was non-est due to the Amendment Act of 1976. The court analyzed the provisions of the Code and the Transfer of Property Act, emphasizing that the right of redemption continues until a final decree specifically extinguishes it. The court referred to precedents, including Mhadagonda Ramgonda Patil v. Shripal Balwant Rainade, asserting that without a specific declaration in the final decree, the right of redemption remains intact. The court concluded that the High Court's judgment was indefensible, allowing the appeals and affirming the mortgagor's right to redeem the property until the confirmation of sale.

Headnote

A) Civil Procedure - Right of Redemption - Extinguishment of Right - Code of Civil Procedure, 1908, Order 34 Rule 5 - The court held that the right of redemption is not extinguished merely by the passing of a decree unless specifically declared in a final decree. The High Court's reliance on the merger of mortgage debt into decretal debt was found erroneous as the right of redemption remains until confirmation of sale (Paras 12-13).

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Issue of Consideration

Whether the right of redemption under Order 34 Rule 5 of the Code of Civil Procedure was available to the mortgagor after the passing of the decree.

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Final Decision

The Supreme Court set aside the High Court's judgment, allowing the appeals and affirming the mortgagor's right to redeem the property until the confirmation of sale.

Law Points

  • Right of redemption
  • mortgage
  • final decree
  • Code of Civil Procedure
  • 1908
  • Kerala amendment
  • Transfer of Property Act
  • 1882
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Case Details

2006 LawText (SC) (02) 122

Appeal (civil) 1488-1489 of 2000

2006-02-02

Arijit Pasayat, Tarun Chatterjee

Philomina Jose

Federal Bank Ltd. & Ors.

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Nature of Litigation

Appeal against dismissal of Civil Revision petitions under Order 34 Rule 5.

Remedy Sought

Philomina Jose sought to establish her right to redeem the mortgage.

Filing Reason

The High Court dismissed her petitions regarding the right of redemption.

Previous Decisions

The High Court ruled that the right to redemption was extinguished by the decree.

Issues

Whether the right of redemption under Order 34 Rule 5 was extinguished by the decree. Validity of the Kerala amendment in light of the Amendment Act.

Submissions/Arguments

Appellants argued that the High Court's view was untenable and the Kerala amendment was non-est. Respondents contended that the Kerala amendment was in force and the right to redemption was extinguished by the decree.

Ratio Decidendi

The right of redemption under Order 34 Rule 5 of the Code of Civil Procedure is not extinguished by the passing of a decree unless specifically declared in a final decree.

Judgment Excerpts

The right of redemption will be extinguished (1) by the act of the parties or (2) by the decree of a court. The provisions of Order 34 have laid down in clear terms the circumstances when the right of redemption of the mortgagor would stand extinguished.

Procedural History

The appeals were filed against the dismissal of Civil Revision petitions by the Kerala High Court regarding the right of redemption under Order 34 Rule 5.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 34 Rule 5, Order 34 Rule 3, Order 21 Rule 90, Order 21 Rule 89, Order 21 Rule 92
  • Transfer of Property Act, 1882: Section 60
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