1981 JTR(Raj) 471
1981 WLN 294
RAJASTHAN HIGH COURT
M.B.Sharma, J.
Khetsidas And Ors. - Appellant
Versus
Mst. Kanchan Bai And Ors. - Respondent
S.B. Civil Second Appeal No. 140 of 1980.
Decided On : 21-09-1981
An agreement of sale of right of redemption executed after the mortgage deed is not a clog on the equity of redemption.
REDEMPTION SUIT - Mortgage - Construction of mortgage deed and agreement of sale of right of redemption - Whether agreement of sale of right of redemption was a clog on the equity of redemption - Whether the mortgagees became the owners of the suit property by payment of Rs. 11/- as the sale price of the right of redemption.
Fact of the Case:
The respondent filed a suit for redemption of a mortgage executed by her father-in-law in favour of the appellants. The mortgagees claimed that they had become the owners of the property by payment of Rs. 11/- as the sale price of the right of redemption under an agreement of sale of right of redemption executed on the same day as the mortgage deed. The respondent denied the execution of the agreement of sale of right of redemption and claimed that the property was the self-acquired property of her father-in-law and that he had gifted it to her.
Finding of the Court:
The trial court decreed the suit for redemption. The lower appellate court affirmed the finding of the trial court that the agreement of sale of right of redemption was not an integral part of the mortgage deed and did not operate as a clog on the equity of redemption. However, it reversed the finding of the trial court that Rs. 11/- were not paid by the mortgagees to the mortgagor under the agreement of sale of right of redemption.
Issues: 1. Whether the agreement of sale of right of redemption was a clog on the equity of redemption? 2. Whether the mortgagees became the owners of the suit property by payment of Rs. 11/- as the sale price of the right of redemption? 3. Whether the property was the self-acquired property of the mortgagor or the ancestral property of the mortgagor and his sons?
Ratio Decidendi: 1. The agreement of sale of right of redemption was not a clog on the equity of redemption because it was executed after the mortgage deed and was a separate agreement. 2. The mortgagees did not become the owners of the suit property by payment of Rs. 11/- as the sale price of the right of redemption because the agreement of sale of right of redemption was not registered and the possession of the property was not transferred to the mortgagees. 3. The property was the self-acquired property of the mortgagor and he had gifted it to the respondent.
Final Decision: The appeal was dismissed with costs.
REDEMPTION SUIT - Mortgage - Construction of mortgage deed and agreement of sale of right of redemption - Whether agreement of sale of right of redemption was a clog on the equity of redemption - Whether the mortgagees became the owners of the suit property by payment of Rs. 11/- as the sale price of the right of redemption.
Fact of the Case:
The respondent filed a suit for redemption of a mortgage executed by her father-in-law in favour of the appellants. The mortgagees claimed that they had become the owners of the property by payment of Rs. 11/- as the sale price of the right of redemption under an agreement of sale of right of redemption executed on the same day as the mortgage deed. The respondent denied the execution of the agreement of sale of right of redemption and claimed that the property was the self-acquired property of her father-in-law and that he had gifted it to her.
Finding of the Court:
The trial court decreed the suit for redemption. The lower appellate court affirmed the finding of the trial court that the agreement of sale of right of redemption was not an integral part of the mortgage deed and did not operate as a clog on the equity of redemption. However, it reversed the finding of the trial court that Rs. 11/- were not paid by the mortgagees to the mortgagor under the agreement of sale of right of redemption.
Issues: 1. Whether the agreement of sale of right of redemption was a clog on the equity of redemption? 2. Whether the mortgagees became the owners of the suit property by payment of Rs. 11/- as the sale price of the right of redemption? 3. Whether the property was the self-acquired property of the mortgagor or the ancestral property of the mortgagor and his sons?
Ratio Decidendi: 1. The agreement of sale of right of redemption was not a clog on the equity of redemption because it was executed after the mortgage deed and was a separate agreement. 2. The mortgagees did not become the owners of the suit property by payment of Rs. 11/- as the sale price of the right of redemption because the agreement of sale of right of redemption was not registered and the possession of the property was not transferred to the mortgagees. 3. The property was the self-acquired property of the mortgagor and he had gifted it to the respondent.
Final Decision: The appeal was dismissed with costs.
JUDGMENT
(1) that in arriving at the finding that the consideration of Rs. 11/-was not paid by the mortgagees to Daulatram, the mortgagor under Ex. A3, the lower appellate court has not taken into consideration material piece of evidence having a bearing on the finding and as such finding of fact arrived at by appellate court is not binding on this court Under Section 100 Civil Procedure Code in the second appeal. If the evidence is looked into it can be said that the passing of the consideration of Rs. 11/- under Ex. A3 is proved;
(2) that the learned lower appellate court has misconstrued Ex. A1 and Ex. A2 in holding that suit talias were the self acquired property of Daulatram, father in law of Smt. Kanchan Bai. If those documents are property of Daulat Ram and as such the gift made by him of the suit talias in favour of Smt. Kanchan Bai is void. Mr. D.S. Shishodia, learned Counsel for plaintiff-respondent besides supporting the judgment of the learned lower appellate court on the contained therein, has also tried to support it on the ground that agreement Ex. A2 to sell the right of redemption was a clog on the enquity of redemption and as such is unenforceable Under Section 60 of the Transfer of Property Act.
(1) Whether the finding of the lower appellate court that the consideration of Rs. 11/-under Ex. A3 did not pass to Daulatram, father in law of Smt. Kanchan Bai, is vitiated because in arriving at that finding the lower court has not considered the material piece of evidence? If so (i) whether on the evidence on record passing of consideration of Rs. 11/- under Ex. A3 is proved, (ii) whether the right of the redemption of mortgage was sold by deceased Daulatram to the mortgagees and they became absolute owners of the suit property?
(2) Whether the lower court has misconstrued Ex. A 1 and Ex. A2 in holding that the suit talias were the self acquired property of Daulatram? If so, whether on proper construction of the two documents the suit talias were the ancestral property of Daulatram and as such the gift deed under Ex. A 1 in favour of Smt. Kanchan Bai is void ?
(3) Whether agreement Ex. A2 operates as a clog on the right of redemption and as such is not enforceable?
"Issue No. 3
Whether on the date of mortgage itself an agreement of sale relating to the suit talias was executed by defendant No. 11 (Daulatram) in favour of the mortgagees. And whether a sum of Rs. 11/- as the sale price, was paid to Daulatram on Mangar Sud 5, Samvat year 2004, and thus he sold the right of redemption to the mortgagees and since then the mortgagees have become the owners of the suit property.
13. To my mind the later part of issue No. 3 is also to be further sub-divided into two parts. The first part is whether Rs. 11/- were received by deceased Daulatram as the sale price from the mortgagees under agreement of sale Ex. A2. The second part is--if so, whether the right of redemption was sold by Daulatram to the mortgagees and since then they become the full owners of suit property?14. I have already said earlier that the finding of the learned lower appellate court about the payment of Rs. 11/- under Ex. A3 is not binding on this court. I will presently show that so far as payment of Rs. 11/- by mortgagees to deceased Daulatram is concerned, there is sufficient material on record. The burden of proof of issue No. 3 was rightly placed on the appellants in view of the pleadings of the parties. It were the appellants who pleaded in the written statement the payment of Rs. 11/- to deceased Daulat Ram as the sale price of right of redemption. In the rejoinder filed by respondent No. 1 Smt. Kanchan Bai it was not admitted. Therefore, the burden of issue No. 3 was rightly placed on the appellants and argument of the learned advocate for the appellants Shri H.M. Parekh to the contrary has no force. Burden of proof of an issue is to be placed on such of the party who if he does not produce any evidence on that issue, the issue will be decided against it. But during the course of the trial, onus may shift from one party to the other depending on the fact as to whether the party on whom the burden of proving an issue was placed has lead some evidence. In the instant case the signatures of deceased Daulatram on original of Ex. A3 stand proved on record. The execution of Ex. A3 has been proved by secondary evidence, which as already stated earlier, was permitted to be led by the court. The argument of Mr. Shishodia, learned Counsel for respondent No. 1 that Ex. A3 cannot be said to be secondary evidence being copy of the copy, has no force. A look at Ex. A3(which is in
"that the agreement of Chait Sud 3 Samvat year 1999 was executed on three stamps of the value of 8 annas as required under law. That the two supporting stamps of value of 2 annas each attached with the agreement were also signed by non-petitioner No. 8 having been with held by petitioners. The receipt of Rs. 11/-on 2 annas stampt is one of the said two stamps which has forged and except the signatures."
15. From this admission it can straight away be said that the original of Ex. A3 was signed by deceased Daulatram. Admission is the best evidence against a party unless either it is successively withdrawn or is proved erroneous. Once signatures are proved on a document the onous is on the other party to then prove that the consideration mentioned therein did not actually pass. The person who alleges that the consideration did not pass under a document which is proved to be signed by him is ordinarily bound to prove his allegation and his mere denial of receipt of consideration acknowledged in the receipt or in the deed is not sufficient to prove that consideration was not received by him. Apart from this admission of deceased Daulatram about his signatures on Ex. A3 there is also evidence of a 'Rokad' entry dated December 17, 1947 (Ex. A4) about payment of Rs. 11/- to deceased Daulatram, which has been proved by Daulatram, D.W. 3. Bhagat Ram, DW 1 states that the original of Ex. A3 was executed in his presence and Rs. 11/- were also paid in his presence. The learned lower appellate court has mis-read the statement of Daulatram, DW 3 when it observed that from his statement the loss of original of Ex. A3 is not proved It only read a part of his statement and not the whole relevant portion of the statement. The relevant portion of the statement of Daulat Ram is as follows:
Gyara Sau ki Alag Rasid Likhwai Thi Usi Vakat Likhai Thi Jo Gai Pesi Par Mene Dekhi Thi/Mene Bhanwarlal se Puchha tha ki Rasid Kahan Hai To imhone kaha ki Vakil Sahib ke Pas Hai/Vakil Sahib ke Pas Ja kar Mene Nahin Dekhi/Gai Peshi Par Dekhi Nahin Thi Bhai Sahib Ne kaha Tha ki Vakil Sahib ke Pas Hai
It is clear from the extracted portion that he did not see the original receipt, Therefore, finding of the learned court which is based on the misreading of the statement of Daulatram, DW 3 is wrong. As already stated earlier execution of Ex. A3 by secondary evidence has been proved. Khetsidas, DW 5 has also proved the payment of Rs. 11/- to deceased Daulatram. DW 6 Ganpat, one of the witnesses to the original Ex. A3 has stated that he had signed the original at the instance of deceased Daulatram. In rebuttal Smt. Kanchan Bai was examined. She could not have said as to whether Rs. 11/-under Ex. A3 were received by deceased Daulatram or not. Banshi Lal PW 5 was examined who only gave negative evidence to the effect that there is no entry of Rs. 11/- in the 'Khata' Ex. A5 or 'rokad' Ex. 6 which were kept at the firm of deceased Daulatram. He aubmitted that balance was not struck daily Some time it was struck within 2 days some time in 3 days. Nand Lal, husband of Smt. Kanchan Bai who appeared as a witness for her, in his statement dated 4-7-78 admitted that Ex. A33 is signed by him at C to D. Thus, Ex. A33 also contains the admission that Ex. A3 was signed by his father.16. A look at Ex. A2 will show that it was only written on a stamp on the value of Annas 4. There is no entry in it that two supporting stamps of value of Annas 2 each which numbered 2815 and 2816 were also signed by the deceased Daulatram. A look at Ex. A1, the mortgage deed will show that there is mention about supporting stamps. Therefore, the possibility cannot be excluded that Ex. A2 was only executed on 4 annas stamp though two more stamps of the value of Annas 2 each were also purchased. No doubt under the Mewar Stamps Act (Act No. v of 1908) for an agreement of the type of Ex. A2 stamps of the value of Annas 8 were required. For receipts of more than Rs. 20/- ticket of Anna 1/ was required and they were not to be written on stamp sheets. But there being no mention of the supporting stamps in Ex. A2, it cannot be said that at the same time Daulatram signed them and handed them over to the mortgagees. It can also not be said that on one of those stamps signed by Daulatram Ex. A2 was forged except the signatures. So far as the effect of Ex. A30 and order dated April 13, 1964 of the learned District Judge in proceedings under Rule 58 Order 21 is concerned, it may be stated that it can not be res judicata because the proceedings under Order 21 Rule 58 are not a suit. In
"The party against whom an order is made in the claim proceeding may institute a suit to establish the right which he claims to the property in dispute, but subject to the result of such suit, if any, the order is conclusive (Rule 63). If no suit is brought under Rule 63 within the prescribed period of limitation, the order in the claim proceeding is conclusive on the question whether the property was or was not liable to attachment and sale in execution of the particular decree. But the order is not conclusive for all purposes, See
17. It can, therefore, be said that the scope of the proceeding either under Rule 58 order 21 as stood prior to the amendment in 1976 or under Rule 63 of Order 21 is only limited to the extent as to whether the property attached was liable to be said in execution of decree or not but those orders are not conclusive on the question of the title to the property. That apart Smt. Kanchan Bai was not even a party to those proceeding and gift deed was executed in her favour even before the objections were filed. But order Ex. A30 is relevant Under Section 13 read with Section 43 of the Evidence Act. But its probative value is not much so far as the title of the property is concerned because the inquiry therein was only of summary nature and intricate questions of law and the title of suit property could not be decided. Thus, on the material on record it can be said that Rs. 11/-were paid by the mortgagees to deceased Daulatram when the orginal of Ex. A3 was written. Smt. Kanchan Bai on whom the onus shifted in view of admission about signatures of deceased Dault Ram on the original of Ex A3 has failed to prove that Rs. 11/- were not paid to deceased Daulatram by the mortgagees. Thus, finding of the lower appellate court that Rs. 11/- were not paid to deceased Daulatram is set aside and it is held that Rs. 11/- were paid to decased Daulatram by mortgagees under Ex. A3.18. But the matter does not end here. Rs. 11/- are said to have been paid in terms of Ex. A2. The relevent portion of Ex. A2 is as follows:
Rupia 2200/- Akhare Baiso Kaldar Rokra Lekar Gajavat ko Khat Mand Ditto...upar Kam Kamalya Kuli Ave jo Banvago Lagat Kuli Avejo Aap Legavego Makan Aap Banaya Pochh Be Bap ko jab Aapne Likh Devago Tabi ka...ka Rs. 11/- Akhare Rupiya Gyare...Upar Leyage...Taliya ka kid Malkana Rak Aap ko Rahega
19. Ex. A2 was an agreement of sale of right of redemption. A look at it will make it clear that it required construction of a house at any cost the mortgagees deemed proper and there after the sale deed was to be executed by deceased Daulatarm and the sale price of Rs. 11/-was to be received, only there after the ownership was to vest in the mortgagees. Under the Mewar Registration Act (Act No. III of 1988) Under Section 5 sale deeds of immovable properties irrespective of their value were eompulsorily registerable and Under Section 17 of that Act in case the deed was not registered in accordance with that Act, it had no effect and was not admissible in evidence. Thus, under Ex. A2 the intention of the parties was that a sale deed was to be executed on payment of Rs. 11/- and it required registration. Under Ex. A2 mere payment of Rs. 11/- as the price of the right of redemption to deceased Daulatram was not sufficient to make the mortgagees owners of the property and a written sale deed was contemplated. At best it can be said that Rs. 11/-, the sale price agreed to be paid was under Ex.A2 was paid and it might have given a right to the other party the mortgagees to take action for specific performance of contract.20. A case of oral sale of right of redemption by deceased Daulatram in favour of the mortgagees has been set up in the written statement. But there is absolutely no proof of oral sale. Though Transfer of Property Act was not in force in Mewar State but its principles will still be attracted. Under section 9 of the Transfer of property Act, 1882 (for short Transfer of Property Act). A transfer of property maybe made with out writing in every case in which a writing is not expressly required by law. 'Sale' is defined in Section 54 of the Transfer of Property Act. It is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. The mode of sale is also provided therein. In case of tangible immovable property, of a value of less than one hundred rupees such transfer may be made either by a registered instrument or by delivery of the property. Thus, even in an oral sale before it can be said that a sale of tangible immovable property of a value of less than one hundred rupees has taken place, it is necessary that price must be paid or promised to paid and the delivery of the property must be given to the purchaster. A look at the written statement of the appellant will show that they have not come out with a case that under Ex. A3 when Rs. 11/-were paid the possession was also transferred to them or that because they were already in possession as mortgagees. Deceased Daulatram renounced his rights in the property. There is no evidence either on behalf of the appellants that there was renunciation of his rights by deceased Daulat Ram and it amounts to delivery of possession. In
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