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1906 DIGILAW 31 (CAL)

Munshi Bajrangi Sahai v. Udit Narain Singh

1906-02-19

body1906
JUDGMENT Maclean, C.J. - This is a suit to enforce a mortgage under a conditional deed of sale of the 3rd March 1888. The principal money mentioned in the mortgage is Rs. 500, bearing interest at the rate of Rs. 2 a month. The lower Appellate Court has found that the whole of the Rs. 500 was not advanced but only Rs. 279 and both Courts have taken the view that, as the whole principal amount was not advanced, the mortgage has ceased to exist as a mortgage and cannot be enforced as such. There is nothing to show that the mortgagor ever asked for the payment of the balance or that the Plaintiff mortgagee ever refused to pay it. It is said that in these circumstances the Plaintiff is not even entitled to enforce his security to the extent of the principal money actually advanced. I find it difficult to accept that view. I do not for myself see why the mortgage which was registered is not a perfectly good mortgage to the extent of the money actually advanced. It is said that this view is inconsistent with that taken by the Madras High Court in the case of Minakshi Sundrum v. Ayyathoral I. L. R. 18 Mad. 136 (1894). But when we come to examine that case, I do not think it is an authority for the proposition contended for. There the Court seems to have found in effect that the mortgagor had a right to cancel the contract and cancelled the contract and it was also found that the mortgagee had acquiesced in that cancellation for about 8 years. Whether there was any power in that case to cancel the contract is a question which we need not enter into. There is no such suggestion in the present case. There is no suggestion that the mortgagor has cancelled the contract or that he had power to do so. The mortgage seems to me perfectly good to the extent of the money actually advanced and the Plaintiff is entitled to a decree for foreclosure upon the footing of the principal advanced being Rs. 279 which will carry interest at the rate provided for in the deed. The mortgage seems to me perfectly good to the extent of the money actually advanced and the Plaintiff is entitled to a decree for foreclosure upon the footing of the principal advanced being Rs. 279 which will carry interest at the rate provided for in the deed. The Plaintiff will also be entitled to costs in proportion to his success which may be added to his security, This decree will cover any surplus sale-proceeds which may be in deposit in the Collectorate representing portions of the mortgaged property which has been compulsorily taken under the provisions of the Land Acquisition Act.