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1950 DIGILAW 374 (MAD)

Nallamilli Veerayamma. v. Nallamilli Venkanna.

1950-12-04

SUBBA RAO

body1950
Judgment.- The only question in this appeal is whether a widow is entitled to a share in a mortgage debt under the Hindu Women’s Rights to Property Act, before it was amended by Act XXVI of 1947. The second defendant and Ammi Reddi were brothers and sons of the first defendant, Venkanna. The third defendant is the son of the second defendant. The fourth defendant is the widow of the first defendant, who died pending suit. The father and sons constituted members of a joint Hindu family. The plaintiff as the widow of Ammi Reddi filed the suit for partition and for recovery of possession of her share in the joint family property under the Hindu Women’s Rights to Property Act. The learned Subordinate Judge gave her a decree for partition in regard to the properties other than agricultural lands. Items 4 and 5 of schedule B are properties mortgaged in favour of the family. Exhibit D-2, dated 7th March, 1945, is the mortgage deed in respect of item 4. Exhibit D-1, dated 21st June, 1937, is the mortgage deed in regard to item 5. The properties secured under the aforesaid two documents consist of both agricultural and house property. The learned Subordinate Judge held that the mortgage debts are liable for partition proportionate to the value of the house property and that the plaintiff is not entitled to a partition of the balance of the debt. The plaintiff preferred the above appeal against the decree and judgment of the Subordinate Judge in so far as it was against her. The solution to the problem depends upon the nature of a mortgage debt, and whether the debt is separable from the security for certain purposes. Fortunately this question had an authoritative treatment in the hands of the Judicial Committee in Imperial Bank of India v. Bengal National Bank1. The facts in that case are, as security for a loan the Bengal National Bank issued to the Imperial Bank of India debentures creating a floating charge upon their whole undertaking, properties, assets, interests, present and future. The debentures were not registered under the Indian Registration Act. It was conceded in that case that the debentures as they were not registered did not create a charge upon any immoveable property. The debentures were not registered under the Indian Registration Act. It was conceded in that case that the debentures as they were not registered did not create a charge upon any immoveable property. The Judicial Committee held that the debentures created a charge over the debts due to the National Bank, whether secured on immoveable property or not, and therefore the Imperial Bank was entitled to the benefit of all sums received in reduction of the debts whether from the realisation of securities or otherwise. When an argument was addressed to the effect that as the debentures were not registered no charge was created in respect of the debts in favour of the Imperial Bank, the Judicial Committee negatived that contention and made the following observations: "The debts may be secured either on immoveable property or on merchandise; they may be wholly secured or partly secured; the security may have been given when the debt was created or later; but in any case, the debts exist as moveable property; and do not, if secured, become identified with the security or transformed into land in the one case or merchandise in the other The separation between debt and security is well established; the creditor is entitled to take a judgment for the debt without having recourse to his security. There would, therefore, appear to be no reason in principle why a creditor should not be able to charge his moveable assets, the debts due to him, even if he be unsuccessful by reason of statutory restrictions in transferring the security." When the difficulty created by the exclusion of the mortgage debt from the definition of actionable claim was pointed out their Lordships met that objection as follows:- "The effect of the amendment is to restrict the statutory rights on transfer such as the right to sue in the transferee’s name, etc., to such transfers as are transfers of actionable claims as defined. There appears to be no difficulty in a transfer of the debt without security; the original debtor can always redeem; the relations between him and the original creditor are not altered; indeed, in the present case, it would appear that the Imperial Bank can only enforce the debt in the name of the respondent bank, which, no doubt, the latter bank must permit. The transferee takes no further interest than the tranferor was able to give him. The transferee takes no further interest than the tranferor was able to give him. The rights of the parties are further declared by the amended section 134 of the Transfer of Property Act, which would appear to apply to their case." The same principle has been applied and followed by the Judicial Committee in Fanny Skinner v. Bank of Upper India, Ltd.1. After considering the earlier decision at some length their Lordships observe: "Applying that case, which need not be gone into in more detail, to the present the result is this, as it appears to their lordships: the transfer of this mortgage debt was effective as between the transferor and the transferees. Rut any proceedings to recover the debt brought against the mortgagor must be, not in the name of the transferee, but in that of the transferor". From the aforesaid two judgments it is clear that a debt, apart from the security can be transferred though the debt could be realised by enforcing the security by the mortgagee or an assignee from him. If it is assignable as a debt simpliciter it is equally partible. Applying the aforesaid principle, I hold that the mortgage debt covered by Exhibits D-1 and D-2 are partible and the plaintiff will be entitled to her share. Respondents 1 to 3 preferred a memorandum of objections in regard to item 20 of C schedule property. Item 20 is 250 bags of paddy. The Commissioner found only 140 bags in three cells belonging to the family. One Karri Subbanna and Karri Venkatarayudu claimed 70 and 40 bags stored in two of the cells. Karri Subbanna was not a witness in the case, but Karri Venkatarayudu was examined as D.W.2. He gave conflicting evidence and prevaricating answers in the witness box, and therefore the learned Subordinate Judge rightly disbelieved his evidence As the cells admittedly belonged to the family, in the absence of any other evidence it is reasonable to assume that the bags found therein belonged to the family I accept the finding of the Court below in regard to this item.‘ In the result, the appeal is allowed with costs, but the memorandum of objections is dismissed with costs. K.C. ----- Appeal allowed.