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1 - 3 of 3 (0.18 seconds)The Indian Trusts Act, 1882
Sidhakamal Nayan Ramanuj Das vs Bira Naik And Ors. on 10 April, 1953
The following three conditions shall be satisfied before s.
90 of the Indian Trusts Act can be applied to a case: (1)
the mortgagee shall avail himself of his position as
mortgagee; (2) he shall gain an advantage; and (3) the
gaining should be in derogation of the right of the other
persons interested in the property. The section, read with
illustration (c), clearly lays down that where an obligation
is cast on the mortgagee and in breach of the said
obligation he purchases the property for himself, he stands
in a fiduciary relations ship in respect of the property so
purchased for the benefit of the owner of the property.
This is only another illustration of the well settled
principle that a trustee ought not to be permitted to make a
profit out of the trust. The same principle is comprised in
the latin maxim commodum ex injuria sua nemo habere debet,
that is,,convenience cannot accrue to a party from his own
wrong. To put it in other words, no one can be allowed to
benefit from his own wrongful act. This Court had occasion
to deal with a similar problem in Sidhakamal Nayan v. Bira
Naik (1). There, as here, a mortgagee in possession of a
tenant's interest purchased the said interest in execution
of a decree for arrears of rent obtained by the landlord.
It was contended there, as it is contended here, that the
defendant, being a mortgagee in possession, was bound to pay
the rent and so cannot take advantage of his own default and
deprive the mortgagors of their interest. Bose, J.,
speaking for the Court, observed at p. 337 thus:
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