Bombay High Court Dismisses Second Appeal in Mortgage Recovery Suit — No Substantial Question of Law Arises. Transfer of Mortgage Rights Requires Proper Registration Under Section 17 of Registration Act, 1908.

High Court: Bombay High Court Bench: GOA
  • 146
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Case Note & Summary

The appellant, Milagres Sales Coutinho, filed a second appeal before the Bombay High Court at Goa challenging the judgment and order dated 22.06.2012 passed by the Ad-hoc District Judge-1, Margao in Regular Civil Appeal No. 34 of 2011. The lower appellate court had dismissed the appellant's appeal against the judgment and decree dated 06.12.2010 passed in Special Civil Suit No. 125/2007 by the Civil Judge, Junior Division, Margao, which had dismissed the appellant's suit for recovery of money due under a mortgage. The appellant claimed that he had acquired rights in a mortgage by transfer from the original mortgagee, Dr. Francisco da Piedade Abranches, and sought to recover the mortgage money from the respondents. The trial court framed four issues and answered them against the appellant, finding that the transfer of mortgage rights was not properly proved as the document of transfer was unregistered. The lower appellate court concurred with these findings. In the second appeal, the appellant argued that substantial questions of law arose regarding the validity of the transfer and the requirement of registration. The High Court, however, held that no substantial question of law was involved as the findings of fact were concurrent and based on evidence. The court noted that the transfer of mortgage rights requires registration under Section 17 of the Registration Act, 1908, and the appellant's failure to produce a registered document was fatal to his claim. The appeal was dismissed with no order as to costs.

Headnote

A) Civil Procedure - Second Appeal - Substantial Question of Law - Section 100 Code of Civil Procedure, 1908 - The court held that no substantial question of law arose in the appeal as the findings of fact by the lower courts were concurrent and based on evidence, and the appellant failed to show any perversity or error of law. (Paras 1-3)

B) Property Law - Mortgage - Transfer of Mortgage Rights - Registration - Section 17 Registration Act, 1908 - The transfer of mortgage rights by an unregistered document is invalid and cannot be enforced. The court upheld the dismissal of the suit for recovery of money due under a mortgage where the appellant claimed rights through an unregistered transfer deed. (Paras 2-3)

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Issue of Consideration

Whether the transfer of mortgage rights by an unregistered document is valid and enforceable, and whether any substantial question of law arises in the second appeal.

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Final Decision

The High Court dismissed the second appeal, holding that no substantial question of law arose and the findings of fact were concurrent and based on evidence. No order as to costs.

Law Points

  • Transfer of mortgage rights requires registration under Section 17 of Registration Act
  • 1908
  • Unregistered document cannot be relied upon to enforce mortgage
  • No substantial question of law in second appeal under Section 100 CPC
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Case Details

2014 LawText (BOM) (03) 97

Second Appeal No. 182 of 2012

2014-03-05

S.B. Shukre, J

Mr. C. Padgaonkar for Appellant, Mr. C. Fernandes for Respondents No. 1, 7 and 8, Mr. J. Godinho for Respondents No. 2, 3, 4 and 6

Shri Milagres Sales Coutinho

Smt. Maria Angelica da Costa and others

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Nature of Litigation

Second appeal against dismissal of suit for recovery of money due under a mortgage.

Remedy Sought

Appellant sought to recover money due under a mortgage from the respondents.

Filing Reason

Appellant claimed rights in a mortgage by transfer from original mortgagee and sought enforcement.

Previous Decisions

Trial Court dismissed suit; First Appellate Court dismissed appeal.

Issues

Whether the transfer of mortgage rights by an unregistered document is valid and enforceable. Whether any substantial question of law arises in the second appeal.

Submissions/Arguments

Appellant argued that he had acquired rights in the mortgage by transfer and was entitled to recover the money. Respondents opposed the claim, and the courts below found the transfer document unregistered and invalid.

Ratio Decidendi

Transfer of mortgage rights requires registration under Section 17 of the Registration Act, 1908; an unregistered transfer deed cannot be relied upon to enforce a mortgage. In a second appeal under Section 100 CPC, the court will not interfere with concurrent findings of fact unless a substantial question of law is involved.

Judgment Excerpts

By this appeal, the appellant has challenged the judgment and order dated 22.06.2012, passed by the Ad-hoc District Judge-1, Margao in Regular Civil Appeal No. 34 of 2011, dismissing the appeal filed by the appellant against the judgment and decree dated 06.12.2010 passed in Special Civil Suit No. 125/2007 by Civil Judge, Junior Division, Margao thereby, dismissing the suit of the appellant brought for recovery of money due under a mortgage. The suit was filed by the appellant against the respondents for recovery of money, which was based upon the right acquired by him in a transfer of mortgage, by the original mortgagee, Dr. Francisco da Piedade Abranches.

Procedural History

The appellant filed Special Civil Suit No. 125/2007 for recovery of money due under a mortgage. The trial court dismissed the suit on 06.12.2010. The appellant appealed to the District Court in Regular Civil Appeal No. 34 of 2011, which was dismissed on 22.06.2012. The appellant then filed the present second appeal under Section 100 CPC before the High Court of Bombay at Goa.

Acts & Sections

  • Registration Act, 1908: Section 17
  • Code of Civil Procedure, 1908: Section 100
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High Court Bombay High Court Dismisses Second Appeal in Mortgage Recovery Suit — No Substantial Question of Law Arises. Transfer of Mortgage Rights Requires Proper Registration Under Section 17 of Registration Act, 1908.
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