Supreme Court Allows Appeal in Mortgage Redemption Suit; Compromise Decree Obtained by Fraud Not Binding. Legal heirs of a mortgagor not heard for seven years entitled to redeem mortgage; appellate court reversal set aside under Article 136 of Constitution of India.

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Case Note & Summary

The dispute pertained to redemption of agricultural land mortgaged with possession by Mehtaba, who held a 1/12th share, to the defendant on 4.8.1937 for Rs. 190. The plaintiffs, claiming to be the cousin and sister of Mehtaba, filed a suit for redemption contending that Mehtaba had not been heard of for more than seven years and was therefore deemed dead under law, making them his legal heirs entitled to redeem. They alleged that they offered the mortgage amount to the defendant but he refused to deliver possession. The defendant contested the suit, asserting that Mehtaba was alive, the plaintiffs lacked locus standi, the suit was time-barred, and plaintiff No. 2 had not appended her thumb impression. During the pendency of the first appeal, the defendant obtained an amendment to introduce a compromise decree dated 9.1.1973 in Civil Suit No. 223/1972, allegedly based on an agreement of sale executed by Mehtaba on 13.4.1966. After remand, the trial court again decreed the suit for redemption, holding that the compromise decree was obtained by fraud and impersonation. The first appellate court reversed this finding, holding that the plaintiffs had not proved Mehtaba's death and that the compromise decree was not fraudulent. The High Court dismissed the second appeal summarily. The Supreme Court found that the first appellate court had misappreciated the evidence, particularly the contradictory testimonies of DW 3 and DW 4 regarding the place and circumstances of the alleged agreement, and the defendant's failure to examine material witnesses like the scribe or the counsel who represented Mehtaba in the compromise suit. The Supreme Court held that the compromise decree was obtained by fraud and misrepresentation, and that the plaintiffs were entitled to redeem the mortgage as heirs of Mehtaba. It concluded that the Additional District Judge and the High Court had committed serious errors, and allowed the appeal, restoring the trial court's decree for redemption.

Headnote

A) Civil Law - Presumption of Death - Locus Standi to Redeem - Indian Evidence Act, 1872, Section 108 - In a suit for redemption, legal heirs of a mortgagor who had not been heard of for more than seven years were entitled to sue on presumption of death; trial court's finding that plaintiffs had locus standi was correct, and appellate court's reversal was unjustified. Held that the plaintiffs had locus standi to file the suit for redemption (Paras 4-5).

B) Civil Procedure - Fraud and Impersonation - Validity of Compromise Decree - Code of Civil Procedure, 1908, Order XXIII Rule 3 - The defendant alleged a compromise decree dated 9.1.1973 for specific performance of an agreement of sale dated 13.4.1966, but the evidence of DW 3 and DW 4 contained material contradictions and the defendant failed to examine material witnesses; the court found the decree was obtained by fraud and misrepresentation and thus not binding on the plaintiffs. Held that the Additional District Judge's finding that no fraud was proved was perverse and unsustainable (Paras 5-7).

C) Constitutional Law - Appellate Jurisdiction - Article 136 of Constitution of India - The Supreme Court exercised jurisdiction under Article 136 and held that the High Court's summary dismissal of RSA No. 211/1986 was unjustified as the lower appellate court had taken a superficial view of evidence. Held that the appeal deserved to be allowed and the trial court's decree restored (Paras 5-7).

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Issue of Consideration

Whether the plaintiffs had locus standi to sue for redemption on the presumption of death of Mehtaba after not being heard of for more than seven years; whether the compromise decree dated 9.1.1973 was obtained by fraud and impersonation and not binding on the plaintiffs; whether the first appellate court and High Court erred in reversing the trial court's findings and dismissing the second appeal summarily.

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Final Decision

The Supreme Court found merit in the plaintiffs' appeal, held that the Additional District Judge and the High Court erred in reversing the trial court, and concluded that the compromise decree was obtained by fraud and misrepresentation; the appeal was allowed and the trial court's decree for redemption was restored.

Law Points

  • Presumption of death after seven years
  • legal heir's right to redeem mortgage
  • fraud and impersonation vitiate compromise decree
  • appellate court cannot reverse well-reasoned trial court findings without proper appreciation
  • summary dismissal of second appeal unjustified
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Case Details

1995 LawText (SC) (11) 57

1995-11-24

Faizan Uddin, S.C. Sen

1996 AIR 757, 1996 SCC (7) 186, JT 1995 (8) 338, 1995 SCALE (6)584

Beli Ram & Anr.

Salio Ram (Salig Ram)

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Nature of Litigation

Civil suit for possession of agricultural land by redemption of mortgage.

Remedy Sought

The plaintiffs sought possession of the mortgaged land by redemption after offering the mortgage amount of Rs. 190 to the defendant.

Filing Reason

The defendant declined to redeem the land by delivery of possession despite the plaintiffs' offer, compelling the plaintiffs to institute the suit.

Previous Decisions

The trial court decreed the suit on 14.12.1981; the Additional District Judge reversed the decree on 20.3.1986; the High Court dismissed the second appeal summarily on 3.7.1986 (though one paragraph records 11.9.1975).

Issues

Whether the plaintiffs had locus standi to sue for redemption on the presumption that Mehtaba was dead after not being heard of for more than seven years. Whether the compromise decree dated 9.1.1973 in Civil Suit No. 223/1972 was obtained by fraud and impersonation and therefore not binding on the plaintiffs. Whether the first appellate court and High Court erred in reversing the trial court's well-reasoned findings and dismissing the second appeal summarily.

Submissions/Arguments

Plaintiffs contended that Mehtaba had not been heard of for over seven years, was deemed dead, and as his legal heirs they were entitled to redeem the mortgage; they claimed the compromise decree was obtained by fraud and impersonation. Defendant contended that Mehtaba was alive, plaintiffs were not his cousin/sister, had no locus standi, the suit was time-barred, plaintiff No.2's thumb impression was not on the plaint or mukhtarnama, and the defendant was estopped by conduct; he relied on the compromise decree.

Ratio Decidendi

A person not heard of for more than seven years is presumed dead, and his legal heirs can sue to redeem a mortgage. A compromise decree obtained by fraud and impersonation is vitiated and not binding. An appellate court should not set aside well-reasoned findings of the trial court without just cause or by taking a superficial view; summary dismissal of second appeal by the High Court was unjustified.

Judgment Excerpts

The plaintiffs brought the suit for possession of land in question by redemption contending that mortgagor of land Mehtaba was not heard of for the last more than 7 years and, therefore, he is deemed to be dead under the law and the plaintiffs being the only heirs of Mehtaba are entitled to redeem the land. Having regard to these facts and circumstances the learned Additional District Judge was wholly unjustified in reversing the well reasoned c recorded by the Trial Court that the defendant had obtained the compromise decree by fraud and misrepresentation.

Procedural History

Mehtaba mortgaged his 1/12th share in agricultural land with possession to Salig Ram on 4.8.1937 for Rs. 190. The plaintiffs filed suit for redemption on 30.12.1970. The trial court initially decreed the suit, which was affirmed by the District Judge on 11.8.1975. The High Court on 28.6.1978 allowed an amendment to the written statement and remanded the case with additional issues. After remand, the trial court again decreed the suit on 14.12.1981. The Additional District Judge allowed the defendant's appeal and dismissed the suit on 20.3.1986. The High Court dismissed the plaintiffs' second appeal summarily on 3.7.1986, leading to the present appeal to the Supreme Court.

Acts & Sections

  • Constitution of India: Article 136
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