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1946 DIGILAW 49 (CAL)

Harinarayan Sen v. Aswini Kumar De

1946-02-18

body1946
JUDGMENT Mukherjea, J. - This Rule is directed against an order made by the District Judge of Nadia under sec. 40A of the Bengal Agricultural Debtors Act. The facts material for our present purposes may be shortly stated as follows. The Petitioner along with his brother Hare Krishna Sen, Opposite Party No. 4, obtained a mortgage decree against the Opposite Parties Nos. 1 to 3 for a sum of Rs. 1,144 on the 29th January, 1935. The decree was put into execution, and the mortgaged properties were sold and purchased by the decree-holders on the 7th November, 1935. On the 6th March, 1946, possession of the properties was taken by the decree-holders auction-purchasers. The mortgage sale did not wipe out the entire amount due under the mortgage and the decree-holders started a proceeding under Or. 34, r. 6 of the CPC and got a personal decree in that proceeding on the 18th August, 1936. On the 10th December, 1938, the debtors were adjudicated insolvents and they obtained their discharge on the 18th March, 1940. 2. On the 23rd March, 1943, an application presented by the debtors under sec. 37A of the Bengal Agricultural Debtors Act praying for restoration of possession of the mortgaged properties which were sold in execution of the mortgage decree on the 7th November, 1935. As the learned District Judge has held in his judgment, there is absolutely no doubt that the three conditions specified in cls. (a), (b) and (c) of sec. 37A (1) of the Bengal Agricultural Debtors Act are fulfilled in this case. The mortgagors were debtors at the date of the sale, and the sale was admittedly held before an appointment was made under sub-sec. (2) of sec 3 in relation to the Board established for the local area within which the debtors ordinarily reside. The properties sold were also in possession of the decree-holders after the 28th December, 1933, and were alienated by them by way of lease much after that date. 3. Mr. Das appearing for the Petitioner auction-purchaser contends before us that the insolvency proceedings which were started against the debtors are a bar to the present application under sec. 37A of the Bengal Agricultural Debtors Act. What is said is this, that under sub-sec. (7) of sec. 3. Mr. Das appearing for the Petitioner auction-purchaser contends before us that the insolvency proceedings which were started against the debtors are a bar to the present application under sec. 37A of the Bengal Agricultural Debtors Act. What is said is this, that under sub-sec. (7) of sec. 37A of the Bengal Agricultural Debtors Act, the debt to be included in the award must be the amount of the decree or certificate in execution of which the properties were sold. The argument is that here the properties were sold in execution of the mortgage decree amounting to Rs. 1,144. That portion of the decretal amount which was not satisfied by the sale of the mortgaged properties was subsequently embodied in the personal decree under Or. 34. r. 6 of the Code of Civil Procedure, and this protion of the mortgage decree must be deemed to be wiped out or obliterated as a result of the in solvency proceedings. It is contended, therefore, that the debtors cannot now be compelled to pay the entire amount for which the mortgage decree was passed. We do not think that this contention is of any assistance to the Petitioners in the present case. 4. It is not disputed that the properties were sold in execution of the mortgage decree and if the other conditions of sec. 37A of the Bengal Agricultural Debtors Act are fulfilled there would be an award as provided for in sub-secs. (5) and (7) of sec. 37A. The judgment-debtors must be and are prepared to pay the amount clue under the award as directed by the Debt Settlement Board as a condition precedent to their getting back the properties which were sold in the mortgage sale. This would not touch the insolvency proceedings in any way, nor would the sales, if any, of the mortgagors' other properties in the course of the insolvency proceedings be affected. We cannot, therefore, agree with Mr. Das that the institution of the insolvency proceedings against the judgment-debtors operates as a bar to their seeking relief under sec. 37A of the Bengal Agricultural Debtors Act provided all the conditions specified in that section are fulfilled. This Rule is accordingly discharged. We make no order as to costs in this Court. Sharpe, J. I agree.