Case Note & Summary
The Supreme Court adjudicated an appeal arising from an ejectment suit by the appellant-landlord against respondents-tenants who were inducted by a mortgagee. The appellant's father had created a usufructuary mortgage of the agricultural land in dispute. The mortgagee admitted the respondents as tenants. During the continuance of the mortgage and while the respondents were in possession as tenants, the Rajasthan Tenancy Act, 1955 came into force. The mortgage was subsequently redeemed, but the respondents continued in possession. The appellant then sued for possession before the revenue authorities. The Board of Revenue in appeal held that by virtue of Section 15 of the Rajasthan Tenancy Act, the respondents had become khatedars and their possession was unassailable; they could be ejected only in accordance with the provisions of the Act, and none of the grounds for ejectment had been proved. The High Court dismissed the appellant's writ petition challenging the Board's decision. The appellant appealed to the Supreme Court on the question whether the respondents could be ejected on the ground that the mortgage had been redeemed. The Court held that under the Transfer of Property Act, 1882, a mortgagee cannot create an interest in the mortgaged property which will enure beyond the termination of his interest as mortgagee. However, the rights of tenants inducted by the mortgagee may be improved by virtue of statutory provisions which may meanwhile come into operation. In the present case, during the continuance of the mortgage, Section 15 of the Rajasthan Tenancy Act came into operation and made the respondents khatedars entitled to statutory protection. Consequently, the respondents could not be ejected except in accordance with the provisions of the Act. The appeal was dismissed.
Headnote
A) Property Law - Rights of Tenants Inducted by Mortgagee - Statutory Improvement of Tenancy Rights - Transfer of Property Act, 1882, Section 76(e); Rajasthan Tenancy Act, 1955, Sections 15, 161 - The mortgagee inducted respondents as tenants during the subsistence of a usufructuary mortgage. The Rajasthan Tenancy Act, 1955 came into force during the tenancy, conferring khatedar rights on the tenants under Section 15. Upon redemption of mortgage, the landlord sought ejectment, but the Court held that while a mortgagee cannot create an interest enduring beyond the mortgage term, the tenants' rights were statutorily improved, and they could only be ejected in accordance with the Act. Held that the tenants' possession is protected.
Issue of Consideration
Whether respondents could be ejected on the ground that the mortgage had been redeemed, given the provisions of the Rajasthan Tenancy Act
Final Decision
The Supreme Court dismissed the appeal, holding that although a mortgagee cannot create an interest surviving the redemption, the rights of the tenants inducted by the mortgagee were improved by the Rajasthan Tenancy Act, 1955, and they could only be ejected in accordance with that Act.
Law Points
- Mortgagee cannot create an interest beyond mortgage term
- tenants' rights may be improved by subsequent statute
- Section 15 of Rajasthan Tenancy Act confers khatedar rights
- ejectment only as per Act
