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C.S. Ramier vs B.N. Srinivasiah on 18 September, 1940

2. It is contended that the Court below was wrong in allowing the mortgagors to redeem the mortgages as a whole by payment only of the mortgage moneys as scaled down under the Act without providing that the properties in the hands of the purchaser should be redeemed only on payment of the entire amounts due under the mortgages. It was said that otherwise the purchaser who is a non-agriculturist would be benefited by the scaling down of the debts, a result not contemplated by the Act. Reliance was placed upon the decision in Ramier v. Srinivasiah (1940) 2 M.L.J. 872 and in. Arumugham Pillai v. Sadasivam Pillai C.R.P. No. 1655 of 1940 as supporting this contention. These decisions no doubt establish that in a suit to enforce a mortgage brought against the mortgagor who is not an agriculturist and the alienee of part of the hypotheca who is an agriculturist a decree can be passed for the full amount due against the party who is a non-agriculturist while scaling down the mortgage debt as against the party who is an agriculturist. But they do not, in our opinion, assist the appellant. There it was a suit for sale and the purchaser who was an agriculturist claimed and was allowed the benefit of the Act, it having been held that his liability qua purchaser to pay the mortgage money was a debt within the meaning of the Act, while as against the mortgagor who was not an agriculturist, a decree for the full amount of the debt was passed. In the present case, however, the mortgagors are agriculturists and they seek to redeem the property under Section 60 of the Transfer of Property Act which (so far as it is material here) provides :
Madras High Court Cites 1 - Cited by 12 - Full Document

Marina Ammayi vs Mirza Bakhar Beg Saheb And Ors. on 19 December, 1940

The mortgage money being liable to be scaled down under the Madras Agriculturists' Relief Act, it follows from the provision cited above that, on payment of the scaled down amount, the mortgagors are entitled to call upon the mortgagee to deliver up the mortgage deed duly discharged or in other words to redeem the mortgage as a whole. This conclusion is in accord with the decision in Marina Ammaryi v. Mirza Bakhar Beg Saheb (1941) 1 M.L.J. 547 which indeed rules this case. There a decree for redemption of a mortgage was obtained by the mortgagors and transferees of portions of the hypotheca suing as co-plaintiffs. The mortgagors were and the purchasers were not agriculturists and the question arose whether the decree as a whole could be scaled down even as against the purchasers. It was held that there was nothing in the Act to prevent the decree being scaled down as a whole and it was pointed out that the Court would not, by so scaling down the decree, be benefiting the non-agriculturist purchaser as the latter might have to refund the portion of the purchase money which as a result of the scaling down, he would not have to pay to the mortgagee. The position here is, in our opinion, very similar. As between the mortgagors who sold a portion of the hypotheca under Ex. II and the purchaser, the sale was free from the encumbrances except to the extent of the balance due under the first mortgage after deducting the sum of Rs. 19,680, which the purchaser was directed to pay towards that mortgage.
Madras High Court Cites 2 - Cited by 12 - Full Document
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