Baijnath Prasad And Ors. vs Jang Bahadur Singh And Anr. on 26 November, 1954
After considering the two rival views, the Supreme Court upheld the Rajasthan view in Lal Chand's case and the view taken by the Patna High Court in Baij Nath Prasad's case and Ram Narain Pasi's case and the Bombay High Court in Harilal Bhagwanji's case was overruled. The Supreme Court held that where a usufructuary mortgage was executed in respect of a house or other property and if the same property was leased out by the mortgagee to the mortgagor to secure his interest in the property, there was no reason, why he could not file a suit for realisation of money due under the rent note. It is always open to the mortgagee to sue the mortgagor on the basis of the rent note and take possession of the property or to induct some other tenant. The mortgagor has a right to redeem the mortgage, he can always pay off the mortgagee and get back the possession but till that is done, the mortgagee has a right to obtain the possession of the property.