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IN THE COURT OF THE FAMILY-CUM-IX ADDL. DISTRICT
JUDGE, EAST GODAVARI DISTRICT AT
RAJAMAHENDRAVARAM.
PRESENT:- Purushottam Kumar Chintalapudi
Judge,
Family Court-cum-Addl. District & Sessions Judge
Wednesday the 29th day of June, 2016
Appeal Suit Nos.183/2007 and 203/2007
Between: (AS No.183/2007) 1.Garapati Sowjanya. 2.Garapati Somasekhara Rao (died). 3.Garapati Lakshmi Kantham. … Appellants.
And
Anaparthi Venkata Ramana Murthy. … Respondent.
Appeal against the decree and Judgment dated
5.2.2007 passed by the Senior Civil Judge,
Ramachandrapuram in O.S.No.67/1999 made in
Between: Garapati Sowjanya. … Plaintiff.
And
1.Anaparthi Venkata Ramana Murthy.
2.Garapati Somasekhara Rao. ... Defendants.
Between: (AS No.203/2007) 1.Garapati Somasekhara Rao (died) 2.Garapati Sowjanya. (Being minor rep. by mother and natural Guardian Garapati Lakshmi Kantham) 3.Garapati Lakshmi Kantham. (Added as party as per orders in I.A.No.153/2016 Dt.28.3.2016). … Appellants.
And
Anaparthi Venkata Ramana Murthy. … Respondent.
Appeal against the decree and Judgment dated 5.2.2007
passed by the Senior Civil Judge, Ramachandrapuram in
O.S.No.158/2002 made in
Anaparthi Venkata Ramana Murthy. .. Plaintiff.
And
1.Garapati Soma Sekhara Rao. 2.Garapati Sowjanya. (Being minor rep. by mother and natural
Guardian Garapati Lakshmi Kantham.) .. Defendants.
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Both the appeals coming on 6.6.2016 for final hearing in the presence of Sri M.Siva Subba Rao, Advocate for appellant in both the appeals, Sri I.V.Ramana Murthy, Advocate for the respondent in both the appeals and the matter having stood over for consideration, till this day, this Court delivered the following:
C O M M O N - J U D G M E N T
A.S.No.183/2007:-
1.This appeal is preferred under Section 96 read with Order 41 Rule 1 of Civil Procedure Code (hereinafter referred to as ‘C.P.C.’) by Garapati Sowjanya, who is the plaintiff in OS No.67/1999. Respondent Venkata Ramana Murthy and 2nd appellant Soma Sekhara Rao are the defendants. The appeal is preferred challenging the impugned judgment dated 5.2.2007 passed in OS No.67/1999 on the file of Senior Civil Judge, Ramachandrapuram.
2.The Suit OS No.67/1999 was filed for the reliefs to order for cancellation of mortgage bond dated 16.4.1998 or in the alternative to declare the suit mortgage as not valid, not binding and effective in so far as plaintiff’s undivided share in the plaint schedule property is concerned, to redeem the mortgage property subject to proof of validity of mortgage deed or in the alternative to get re-conveyance and possession of mortgaged property from 1st defendant.
3.As per orders in I.A.No.424/2004 in OS No.67/1999 dated 22.6.2004 additional prayers are added as follows:
(a)For a preliminary decree for partition of plaint schedule property into two equal shares and separate possession of the plaintiffs share.
(b)To affect partition in terms of preliminary decree by appointing a commissioner.
(c)To pass a final decree embodying the commissioner’s report.
(d)For future profits and costs.
AS No.203/2007:-
4.This appeal is preferred under Section 96 read with Order 41 Rule 1 of C.P.C. by 1st defendant Garapati Soma Sekhara Rao and 2nd defendant Garapati Sowjanya. Respondent Anaparthi Venkata Ramana Murthy is the plaintiff in OS No.158/2002 on 3 the file of Senior Civil Judge, Ramachandrapuram. The appeal is preferred against the impugned common judgment and decree
dated 5.2.2007 in OS No.158/2002.
5.The suit OS No.158/2002 was filed by the
Respondent/plaintiff Anaparthi Venkata Ramana Murthy for the reliefs,
(a)Directing the 1st defendant to deposit the suit amount with subsequent interest and costs into the court within a time to be fixed by the court, failing which extinguishing the right of redemption of the 1st defendant in the plaint schedule mortgage property and enabling the plaintiff to recover the suit mortgage debt by bringing the plaint schedule property to sale and if the same is not sufficient to discharge the debt to pass personal decree against the 1st defendant to recover the balance personally.
(b)For costs.
6.Initially OS No.158/2002 was filed against 1st defendant
Garapati Soma Sekhara Rao for the above said reliefs. Thereafter Garapati Sowjanya daughter of 1st defendant impleaded herself as 2nd defendant.
7.The learned Judge dismissed OS No.67/1999 in toto and counter claim in OS NO.158/2002. OS No.158/2002 is preliminarily decreed with subsequent interest at 6% per annum from the date of suit till realization on principal amount of Rs.2 lakhs. Time for redemption is given six months. OS No.158/2002 dismissed against 2nd defendant Sowjanya.
8.Before the trial court, the above two suits were tried together and common judgment was passed. For better appreciation parties are referred with their names as both suits are clubbed together.
9.Brief facts of both the cases are as follows:
(a)Garapati Sowjanya is the only daughter of Garapati
Somasekhararao, who is the 2ndDefendant in OS 4
No.67/1999. She pleads that Mr. Soma Sekhararao was addicted to vices like drinking ever since from 1994 and has been acting detriment to the interest of plaintiff by contacting Avya Vaharika debts, which are neither for the benefit or legal necessity of joint Hindu Family. The plaint schedule property is the joint family property of Sowjanya and said Soma Sekhararao by merging the same by Soma Sekhara Rao and has been treating and enjoying the joint family property. Sowjanya born on 12.6.1991, she became a co-parcener. She is entitled for equal share in the said joint family property. As such, she is having half share in the property.
(b)While so, Soma Sekhara Rao was addicted to vices.
A.V.Ramana Murthy 1st defendant in OS NO.67/1999 hatching a plan with active abetment and help of Arumilli Rama Krishna, Yerramsetti Ramarao, Undavalli Krishna and Padala Satyanarayana Reddy and obtained fraudulent and unenforceable, void, registered, usufructuary mortgage deed
dated 16.4.1998 pertaining to the joint family property
without knowledge and consent of Sowjanya, Soma Sekahararao executed the usufructuary mortgage deed.
(c)The mortgage details are as follows:
Date of Mortgage 16.4.1998. Name of the Mortgager Second defendant (Garapati Soma Sekhara Rao) Name of the Mortgagee First Defendant (Anaparthi Venkata Ramana Murthy) Sum secured Rs.2,00,000/-. Rate of interest 24% per annum. Mode of payment of Mortgage has to cultivate the interest mortgaged property and has to receive the income from the produce and has to appropriate the value of 46.25 kata bags of paddy every year in lieu of interest of said mortgage debt.
Due date for discharge 15.4.2002. of mortgage money Mortgage hypothecate Plaint schedule property.
(d)The mortgage deed provides the conditions that, (1)Some Sekhararao delivered the possession of the property to Ramana Murthy on the date of execution of 5 mortgage authorizing Ramanamurthy to retain possession.
(2)Ramanamurthy would cultivate land and would appropriate to himself the income from produce in lieu of interest of the mortgage debt.
(3)The Mortgager can redeem the mortgage property by paying the entire mortgage money.
(4)Here mortgager is Soma Sekhararao and the mortgagee is
Ramanamurthy.
(e)Accordingly, Soma Sekhararao delivered the possession of schedule property to Ramana Murthy, Sowjayna pleads that she being co-sharer and co-parcener and daughter of Soma Sekhararao has every right to redeem the mortgaged property. While so, Ramanamurthy making efforts to enter into sale transaction with regard to the schedule property. Therefore, Sowjanya filed suit for redemption of mortgage as by repaying the whole mortgage debt since the schedule property is joint family property she has a right to redeem the property.
(f)She also took a plea that mortgage bond is not true and valid. If redemption is not possible at least her share property may be ordered to be redeemed.
10.After filing OS No.67/1999 by Sowjanya for redemption, Mr.
Ramanamurthy has filed suit OS No.158/2002 against Soma Sekhara Rao initially and thereafter Sowjanya was impleaded in the year 2004. Mr. Ramana Murthy pleads that,
(a)The mortgage deed is existing. The time for discharge of the mortgage is 15.4.2002. Meanwhile he is entitled to cultivate the plaint schedule land and appropriate the rentals 25 bags per acre. Mr. Soma Sekhararao fell into due for Rs.3,82,440/-. A mortgage deed was executed after Soma Sekhara Rao borrowing amount of Rs.2 lakhs. Ramanamurthy was continuing possession of the schedule property. Ramanamurthy maintained accounts under mortgage transaction from 16.4.1998 up to the date of suit.
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He adjusted rentals out of interest payable by Soma Sekhararao for the years 1999, 2000, 2001 and 2002. Mr. Ramana Murthy is in possession and cultivating the schedule land.
(b)While so, Ramanamurthy has received a notice dated 20.6.2000 from Varahi Agricultural Co-operative Society of Vedurupaka demanding to pay Rs.35,683/- as due from Soma Sekhararao. Mr. Ramanamurthy has paid that amount and cleared the debt and waived the charge of Varahi Agricultural Co-operative Soceity. Thus, Soma Sekhara Rao is liable to pay Rs.3,82,440/- together with interest on Rs.35,683/-. Therefsore, Ramanamurthy has filedk the suit for recovery of an amount of Rs.3,82,440/- and Rs.35,683/-.
11.In both the cases the defence taken by the respective parties are as follows:
(a)In OS No.67/1999 Mr. Ramanamurthy has took a defence that Sowjanya is not having any right for redemption as she has no interest in the schedule property. She is not a mortgagor. It is Soma Sekhararao, who alone has got right, interest over the property. He denied that schedule property is a joint family property and she is co-parcener. He denied that mortgage bond was executed fraudulently. The property of Soma Sekhara Rao is self acquired property, which was given under gift exclusively belonging to Some Sekhararao, who mortgaged the said land after availing loan of Rs.2 lakhs from Ramanamurthy. The mortgage deed was acted upon. Mortgage bond is valid. Sowjanya has no right to claim any relief.
(b)In the said suit Soma Sekhara Rao also filed written statement denying the defence that mortgage deed is void, the property belongs to joint family property. He has no objection for redemption of mortgage by Sowjanya.
12.In OS No.158/2002 Soma Sekhara Rao has filed written statement stating that mortgage deed is not valid, rate of interest at 12% is not legal. The amount to be received are 25 kata bags 7 as makhta is Rs.415/- but it was calculated much less. The rate of interest to be calculated at 6%. He denied that he borrowed any amount of Rs.2 lakhs and executed mortgage bond. The suit is fraudulently filed. The suit is bad for non-joinder of daughter of Garapati Soma Sekhara Rao i.e., Sowjanya.
13.Subsequent to the filing of written statement, same was amended wherein Soma Sekhararao sought for rendition of account that all profits realized from the schedule land and appropriate the same towards interest as well principal amount due. The interest being calculated at 12% per annum simple as per the calculation memo annexed to the written statement. The relief sought for as the relief to render accounts of profits from Ramanamurthy from the plaint schedule land.
14.In the said suit Sowjanya was impleaded as one of the defendant. She filed written statement as a counter claim. She took the plea as per her pleadings in OS No.67/1999 that the property is a joint family property, it cannot be mortgaged, she has a share in it as a co-parcener. Ramanamurthy has realized excessive amounts and hence rendition of accounts is required and sought for relief directing Ramanamurthy to render accounts of profits realized from the plaint schedule property from 16.4.1998 onwards till such time he delivers the schedule property.
15.To the said counter claim Ramana Murthy has filed written statement. He denied all the allegations. She cannot claim rendition of accounts as she has no right. Ramanamurthy justified in adjusting the yearly rentals. Rate of interest is not high, but it is as per understanding. Sowjanya cannot seek rendition of accounts, she is not a proper and necessary party.
16.Before the trial court both the cases were come up together individually. The learned Judge after going through the pleadings framed as many as 11 issues for both the suits, which are as follows:
1. Whether mortgage deed dated 16.4.1998 is true, valid binding on the plaintiff and 2 nd defendant in OS No.67/1999?
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2. Whether the schedule property is ancestral property or separate property of 2 nd defendant Garapati Soma Sekhara Rao?
3. Whether the plaintiff in OS No.67/1999 is entitled to seek relief of redemption of mortgage or not?
4. Whether the plaintiff in OS No.67/99 is entitled for partition of schedule property or not?
5. Whether the plaintiff in OS No.67/1999 is entitled for seeking relief of accounting for the income from the schedule property from 16.4.1998 or not?
6. Whether the plaintiff in OS No.67/1999 is entitled for possession of the schedule property or not?
7. Whether the plaintiff in OS No.67/1999 is entitled for future profits?
8. Whether the plaintiff in OS 158/2002 is entitled for preliminary decree as prayed for?
9. Whether the 2 nd defendant in OS No.158/2002 is entitled for counter claim or not?
10. Whether the interest is liable to be scale down?
11. To what relief?
17.From Garapati Sowjanya side five witnesses were examined, from Ramanamurthy side three witnesses were examined. Exs.A.1 to A.5 were marked on behalf of Sowjanya and Exs.B.1 to B.20 are marked on behalf of Ramanamurthy.
18.After hearing both sides, the learned Judge while answering the issues opined that Garapati Sowjanya failed to prove that the schedule property is joint family property and treated as such, therefore, she is not entitled for redemption of the mortgage property and she is not entitled for any share, she cannot demand for accounting of the profits, she is not entitled for partition of the property and she also cannot claim for rendition of accounts. The learned judge further came to conclusion that Mr. Ramanamurthy has paid amounts to Varahi Agricultural Co-operative society and paid taxes, which is not disputed by Soma Sekhara Rao. Therefore, Mr. Ramanamurthy is entitled for recovery of amount and also did not accept that interest to be scaled down and finally concluded that OS No.67/1999 was dismissed in toto and counter claim in OS NO.158/2002 was dismissed. OS No.158/2002 is preliminarily decreed with subsequent interest at 6% per annum from the date of suit till realization on principal amount of Rs.2 lakhs. Time for redemption is given six months. OS No.158/2002 dismissed against 2nd defendant Sowjanya.
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19.In crux the learned trial court had accepted that there is valid mortgage deed existing between Ramanamurthy and Garapati Soma Sekararao. It is admitted that Ramanamurthy is in possession of the schedule property. The principal amount was borrowed by Soma Sekhararao. No dispute that Sowjanya is the sole legal heir. The learned Judge came to conclusion that Soma Sekhararao was due and he is liable to pay that amount to Ramanamurthy. Whereas the reliefs sought for by Sowjanya were dismissed solely on the ground that the schedule property is not a joint family property and she is not entitled for seeking redemption and consequently she is not entitled for partition, even redemption alone for her share.
20.There is no dispute that Soma Sekhararao and Sowjanya are the only persons to the schedule property having legal heirship.
21.The appeals have preferred by Sowjanya as well as
Somaseskhararao on the grounds in brief that:
1. The learned Judge wrongly came to conclusion that the property is not a joint family property and Sowjanya is not entitled for redemption of property.
2. The learned Judge did not take proper note of rate of interest to be calculated.
22.Pending of the appeal Sowjanya and Soma Sekhararao preferred amendment of grounds of appeal as well as written statement, which were allowed in part. Again revisions were preferred before the Honourable High Court of A.P., which were modified by the Honourable High Court. Grounds of appeal were permitted to be added, but amendment of written statement is not accepted. Thereafter hearing was proceeded. While pending the appeals Garapati Soma Sekhara Rao died. Thereafter I.A.Nos. 152/2016 and 153/2016 was filed to add Garapati Sowjanya as sole legal heir to Garapati Soma Sekhararao along with Garapati Lakshmi Kantham. The same were allowed and grounds of appeal were also amended, wherein it was specifically pleaded that one Garapati Sowjanya and Garapati Lakshmi Kantham undisputedly became legal heirs of Soma Sekhararao, no need to discuss further about joint family status of the schedule property and Garapati Sowjanya has a right to lien mortgage and she is entitled 10 for redemption of mortgaged property on payment of Rs.2 lakhs with a direction to deliver the possession of the plaint schedule property.
23.It is brought to the notice of this court that pending the appeal Sowjanya has already deposited an amount of Rs.2 lakhs
before the trial court, it is lying before the learned trial court. The
learned counsel for Sowjanya and Soma Sekhararao vehemently argued that the property is a joint family property and she has a right to redeem. In fact, it is submitted that Soma Sekhararao has executed a gift deed and application is filed to receive the said gift, which was not filed earlier and consequently amend the pleadings. While pending those applications Garapati Soma Sekhararao died.
24.Consequently learned counsel for Sowjanya submitted that as Mr. Soma Sekhararao died, Sowjanya and Lakshmi Kantham became legal heirs and they are entitled to redeem the debt irrespective of the joint family status. To the said contention, learned counsel for Ramanamurthy submitted that there is no dispute with regard to the legal heirship and as a legal heir after death of Soma Sekhararao, Sowjanya has accrued right to redeem the property and no dispute to that extent.
25.Now, the points that would arise for determination in both the appeals are:
1. Whether Garapati Sowjanya is entitled to seek relief of redemption of mortgage or not?
2. Whether Garapati Sowjanya is entitled for seeking relief of accounting of income from the schedule property from 16.4.1998?
3. Whether Garapati Sowjanya is entitled for possession of schedule property?
4. Whether Garapati Sowjanya is entitled for future profits?
5. Whether Garapati Sowjanya is entitled for partition of schedule property?
6. Whether the schedule property is ancestral property or separate property of Garapati Somasekhara Rao?
7. Whether the mortgage deed dated 16.4.1998 is true, valid and binding on Garapati Sowjanya and Garapati Somasekhara Rao?
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8. Whether Anaparthi Venkata Ramana Murthy is entitled for preliminary decree and recovery of amount?
9. Whether Garapati Somasekhara Rao is entitled for counter claim?
10. Whether the interest levied is proper and liable to be scaled down?
11. To what relief?
26.The learned counsel for both parties have submitted that
Garapati Somasekhara Rao died. In such a case, Garapati Sowjanya, who is the only surviving daughter of Garapati Somasekhara Rao and Garapati Lakshmikantham, is the legal heir of the deceased Garapati Somasekhara Rao. Garapati Sowjanya is the plaintiff in OS No.67/1999 and 2nd defendant in OS No.158/2002. During the pendency of appeal after death of Garapati Somasekhara Rao, Garapati Sowjanya was impleaded as a legal heir to the deceased Garapati Somasekhara Rao. Therefore, Garapati Sowjanya as a plaintiff in OS No.67/1999 and 2nd defendant in OS No.158/2002 has come into picture.
27.The learned counsel for Mr. A.V.Ramana Murthy submits that prior to death, Garapati Somasekhara Rao had been contesting, the taking of loan by Somasekhara Rao was proved. The schedule property was mortgaged. The mortgage was usufructuary mortgage. Garapati Sowjanya was not a party to the mortgage, the schedule property was never a joint family property and she is not coparcener. Therefore, she cannot claim for partition or redemption or furnishing of accounts. Garapati Somasekhara Rao alone is entitled for redemption after paying the dues.
28.Now, the changed scenario is Garapati Sowjanya has become Garapati Somasekhara Rao after his death, as his legal heir. Now legal position is, she stepped into the shows of Garapati Somasekhara Rao as mortgagor. The mortgagor is always entitled to redeem the property after paying the due amounts. Once mortgagor pays the amount, expresses his willingness to clear the dues, the mortgagee has no option to redeliver the property. That legal position is not disputed by the learned counsel for Mr. A.V.Ramana Murthy. Therefore, now the grounds on which suit 12 for redemption filed by Garapati Sowjanya was dismissed that she is not a coparcener, the schedule property is not a joint family property, therefore, partition does not arise and she cannot claim redemption as well as for furnishing of accounts, becomes dilute.
29.Now, Garapati Sowjanya becomes Garapati Somasekhara
Rao and she as Garapati Somasekhara Rao mortgagor and seek redemption of usufructuary mortgaged property and all other reliefs as a mortgagor. The concept of joint property now also gets diluted as even according to A.V.Ramana Murthy the property is not a joint property and solely belongs to Garapati Somasekhara Rao, so Garapati Sowjanya becomes the legal heir of Garapati Somasekhara Rao. Therefore, it becomes exclusive property of Garapati Sowjanya. Therefore, the contention of joint property also cannot be considered. Therefore, most of the findings given by learned Judge that Garapati Sowjanya is not a coparcener, property is not a joint property, she is not entitled for redemption, not do not stand. In the light of background, now the points are to be answered.
POINT NO.5:-
Whether Garapati Sowjanya is entitled for partition of schedule property?
30.The learned Judge has given a finding that the schedule property is not a joint property and Garapati Sowjanya is not entitled for partition of schedule property. Now, this issue becomes irrelevant, as after death of Garapati Somasekhara Rao, his legal heir is Garapati Sowjanya. In such a case, she becomes the owner of the property. In such a case no partition is required, as no other legal heirs are there. Therefore, it is answered that Garapati Sowjanya is not entitled for partition of the suit schedule property. Accordingly, the point is answered.
POINT NO.6:- Whether the schedule property is ancestral property or separate property of Garapati Somasekhara Rao?
31.In the light of above discussion that after death of Garapati
Somasekhara Rao, Garapati Sowjanya has become his successor, there need not be any further discussion as it is ancestral property 13 or separate property. For the reason Garapati Sowjanya stepped into shoes of Garapati Somasekhara Rao. The learned counsel for Mr. A.V.Ramana Murthy did not oppose this legal position. No further discussion with regard to the property whether it is ancestral property or separate is required. For the reason the learned Judge held that the property is exclusive property of Somasekhara Rao. Now, after death of Somasekhara Rao, Garapati Sowjanya has become the successor. Therefore, I find that the property is the property of Garapati Somasekhara Rao alone.
POINT NO.7:- Whether the mortgage deed dated 16.4.1998 is true, valid and binding on Garapati Sowjanya and Garapati Somasekhara Rao?
32.Garapati Somasekhara Rao died and Garapati Sowjanya impleaded as a legal heir. A mortgage deed, according to Mr.A.V.Ramana Murthy was executed by Garapati Sowjanya. It is relevant that Garapati Sowjanya is seeking redemption of the schedule property basing on this mortgage deed Ex.B.1. In fact she has deposited principal amount of Rs.2 lakhs before the trial court. The contention of Garapati Somasekhara Rao was, the mortgage deed was executed fraudulently. The contention of Sowjanya was that Garapati Somasekhara Rao addicted to vices and when he was in abrogative condition, the deed was executed. However, Somasekhara Rao while he was alive and examined as witness as D.W.3, did not show any evidence that the document was fraudulently executed. Garapati Sowjanya through her mother was examined as P.W.1 and through her evidence also nothing much was elicited that the deed was executed fraudulently. P.W.1 deposed in her evidence that Mr. A.V.Ramana Murthy was in possession of the property. More so, Somasekhara Rao as well as Garapati Sowjanya sought for furnishing of accounts and this relief arising out of Ex.B.1 usufructuary mortgage deed. In the absence of any cogent evidence of fraudulent execution of Ex.B.1, more so, deposit of principal amount before the trial court by Garapati Sowjanya, as a principal amount and claiming the reliefs basing on Ex.B.1, would establish that mortgage deed dated 16.4.1998 is true, valid and it binds now 14 on Garapati Sowjanya as a mortgagor after death of Somasekhara Rao. Accordingly, the point is answered.
POINT Nos.1 and 3:-
1. Whether Garapati Sowjanya is entitled to seek relief of redemption of mortgage or not?
3. Whether Garapati Sowjanya is entitled for possession of schedule property?
33.The law of redemption is stated under Section 60 and right of usufructury mortgagor to recover possession is stated under Section 62 of Transfer of Property Act, 1882 (hereinafter referred to as ‘T.P. Act’), which reads as follows:
60. Right of mortgagor to redeem :- At any time after the principal money has become due, the mortgagor has a right, on payment or tender, at a proper time and place, of the mortgage-money, to require the mortgagee (a) to deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee, (b) where the mortgagee is in possession of the mortgaged property, to deliver possession thereof to the mortgagor, and (c) at the cost of the mortgagor either to re-transfer the mortgaged property to him or to such third person as he may direct, or to execute and (where the mortgage has been effected by a registered instrument) to have registered an acknowledgement in writing that any right in derogation of his interest transferred to the mortgagee has been extinguished :
Provided that the right conferred by this section has not been extinguished by the act of the parties or by decree of a Court.
The right conferred by this section is called a right to redeem, and a suit to enforce it is called a suit for redemption.
Nothing in the section shall be deemed to render invalid any provision to the effect that, if the time fixed for payment of the principal money has been allowed to pass or no such time has been fixed, the mortgagee shall be entitled to reasonable notice before payment or tender of such money. Redemption of portion of mortgaged property
Nothing in this section shall entitle a person interested in a share only of the mortgaged property to redeem his own share only, on payment of a proportionate part of the amount remaining due on the mortgage, except only where a mortgagee, or, if there are more mortgagees than one, all 15 such mortgagees, has or have acquired, in whole or in part, the share of a mortgagor.
62. Right of usufructury mortgagor to recover possession :- In the case of a usufructuary mortgage, the mortgagor has a right to recover possession of the property together with the mortgage-deed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee,
(a) where the mortgagee is authorised to pay himself the mortgage-money from the rents and profits of the property, - when such money is paid ;
(b) where the mortgagee is authorised to pay himself from such rents and profits or any part thereof a part only of the mortgage-money, - when the term (if any) prescribed for the payment of the mortgage-money has expired and the mortgagor pays or tenders to the mortgagee the mortgage- money or the balance thereof or deposits it in Court as hereinafter provided.
34.The provision reads the mortgagor has a right to redeem after the principal became due he can pay the payment at proper time and place, then he can seek redemption of property. That right is a legal right. If the property is mortgaged extinguish by any means if mortgagor is ready to pay the mortgaged amount with interest thereon. The said legal position is again reiterated by the Honourable High Court in the case of M.Amarender Reddy Vs. Canara Bank and another 1 . The Honourable High Court at para Nos. 21, 23 and 24 was pleased to held that once a mortgage always a mortgage. So long as the mortgagor has a right to redeem the mortgage, he can always pay all the debt together with interest to the mortgagee and get back possession of the mortgaged property. This possession shall continue so long as the property was not sold under a final decree of sale brought about in accordance with the provisions of Order 34 of C.P.C., or any other law provided thereof.
35.The said observations of Honourable High Court do show that mortgagor had every right to redeem. Now, applying the provision of law laid down to the present facts of the case, the facts of this case do Somasekhara Rao had executed mortgage deed and Mr. A.V.Ramana Murthy is in possession of the schedule property. He is adjusting the yield out of the schedule property. Now, Garapati Sowjanya as a mortgagor in the place of Garapati 1 2016 (4) ALT 193 (D.B) 16
Somasekhara Rao, is entitled for redemption of mortgage after expressing her interest to clear the dues. In fact, she deposited the principal amount before the trial court. A mortgagor always having a right to redeem the property. Mortgagor is only a protector of the property and under usufructuary mortgage can claim income out of the property. But, never become owner of the property. Therefore, as Garapati Somasekhara Rao now Garapati Sowjanya is a legal heir and becoming mortgagor, is entitled for redemption of the property. Her right cannot be curtailed. Even according to P.W.1 and evidence let in Mr. A.V.Ramana Murthy is in possession of the schedule property. Therefore, after paying the due amounts under mortgage deed Ex.B.1, Garapati Sowjanya is entitled for redemption of the property and Mr. A.V. Ramana Murthy is entitled for redemption as well as possession of the schedule property. The defence that as a third party or the property is not ancestral property or joint property, Garaparti Sowjanya is not entitled for possession or redemption does sustain as she is now contesting as Garapati Somasekhara Rao after death of her father. Accordingly, the points are answered.
36.As per the above discussion most of the aspects, which were challenged by both parties on the ground that Garapati Sowjanya is not entitled for redemption or possession becomes not acceptable. If the mortgagor is ready to pay the mortgage debt, the mortgagee has to deliver the property. The legal position with regard to Garapati Sowjanya has become the legal heirs and as mortgagor, is not in dispute. Therefore, as mortgagor she is entitled when she expresses ready and willingness to pay the amount to take the property. No further objections would be there either legally or factually.
37.In the light of above discussion, I am of the view that it is safely concluded that Garapati Sowjanya is entitled to seek relief of redemption of mortgaged property as now she became the mortgagor in the shoes of her father and it applies under Section 60 of T.P. Act. Under Section 62 of T.P. Act, the mortgagor to the usufructury mortgage is always entitled to recover the schedule property after mortgaged amount is paid. Accordingly, the point is answered.
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38.Now, the other relevant aspects that would come into picture are, (1) with regard to the counter claim by Somasekhara Rao, (2) Claim by Garapati Sowjanya for furnishing of accounts and (3) recovery of amount sought for by Mr. A.V.Ramana Murthy, failing which, sale of mortgage property. That is to say whether the usufructuary mortgage, the loan amount was cleared by Somasekhara Rao or not, if the claim of Mr.A.V. Ramana Murthy is that Somasekhara Rao do not pay the amount even after deducting the income from the property is he entitled for due amount and till then can he hold possession of the property or on failing to pay of amount, can he go for sale of the property. If it is proved that no due amounts are there, he is not entitled to hold the possession and consequently has to deliver the possession to Somasekhara Rao. The relevant points to be discussed are,
1. Whether Garapati Sowjanya is entitled for seeking relief of accounting of income from the schedule property from 16.4.1998?
4. Whether Garapati Sowjanya is entitled for future profits?
8. Whether Anaparthi Venkata Ramana Murthy is entitled for preliminary decree and recovery of amount?
9. Whether Garapati Somasekhara Rao is entitled for counter claim?
10. Whether the interest levied is proper and liable to be scaled down?
39.OS No.158/2002 is the suit filed by Mr. A.V.Ramana Murthy on the grounds that Garapati Somasekhara Rao has failed to discharge his debt and therefore, he is entitled for preliminary decree. For deposit of suit amount with interest and expenses and failing which sale of the property extinguishing the right of redemption.
40.The initial burden lies on Mr. A.V.Ramana Murthy that there is a due amount. He relied on accounts of calculation attached along with plaint. Prior to that it is relevant to go through the contents of mortgage deed under Ex.B.1. It is held by this court that there is no doubt or cloud being not proved by Garapati Somasekhara Rao or Garapati Sowjanya with regard to non-execution of mortgage deed and binding. Therefore, the mortgage deed binds both parties including Garapati Sowjanya 18 now. As per Ex.B.1, principal amount is Rs.2 lakhs and rate of interest is 24% per annum. The mortgage details are as follows:
Date of Mortgage 16.4.1998. Name of the Mortgager Second defendant (Garapati Soma Sekhara Rao) Name of the Mortgagee First Defendant (Anaparthi Venkata Ramana Murthy) Sum secured Rs.2,00,000/-. Rate of interest 24% per annum. Mode of payment of Mortgage has to cultivate the interest mortgaged property and has to receive the income from the produce and has to appropriate the value of 46.25 kata bags of paddy every year in lieu of interest of said mortgage debt.
Due date for discharge 15.4.2002. of mortgage money Mortgage hypothecate Plaint schedule property.
41.The mortgage deed provides the condition that the
Mortgager can redeem the mortgage property by paying the entire mortgage money. The time is stipulated for discharge is 15.4.2002. Mr. A.V.Ramana Murthy was permitted to cultivate the schedule property as a lessee. Yearly returns of 25 bags per acre i.e., 46.25 kata bags for Ac.1-85 cents of schedule land be deducted as the value of the same towards interest after Makara Sankranthi every year.
42.The above extract of Ex.B.1 deed show the mode of adjustment of income yield out of the schedule property where Mr. A.V.Ramana Murthy was permitted to cultivate and adjust that amount towards his interest. Garapati Sowjanya though in her suit challenged the maintainability of Ex.B.1, but during the course of proceedings as well as in the appeal she did not raise much objections with regard to Ex.B.1. Further, relied on payment of mortgage amount and seeking redemption of the property. This shows that she took objection of Ex.B.1 as fraudulently executed, but she came forward with deposit of mortgage money and also seeking redemption on the ground that she paid the mortgage money. Therefore, the stand challenging Ex.B.1 does not arise. Now, it is to be seen whether the calculation i.e., levied by Mr. A.V.Ramana Murthy is arriving the due amounts as on the date of filing the suit. Mr. A.V.Ramana Murthy has calculated the principal amount as Rs.2 lakhs and 19 levied interest at 24% on the principal amount. Thereafter he deducted the amounts at the rate of Rs.360/- per bag of 46.25 bags and arrived to the amount, which according to him by 21.12.2002 is Rs.3,82,440/-
43.It is the contention of learned counsel for Garapati Sowjanya and Garapati Somasekhara Rao that 24% of interest is not valid. Garapati Somasekhararao was an agriculturist, therefore, interest should be 12% or 6% calculating at 24% is not valid. The learned counsel also objected that Mr. A.V.Ramana Murthy has paid amount of Rs.35,683/- to Varahi Agricultural Co-operative society and included the same to the due amounts.
44.Garapati Sowjanya has filed a calculation memo, in reply to the calculation levied by Mr. A.V.Ramana Murthy. He calculated the principal amount as Rs.2 lakhs and added interest at 12% per annum. She calculated 90 kata bags for two crops, at the rate of 45 bags per crop and calculated a total amount at the rate of Rs.360/- and he deducted expenses amounts and calculated the interest further. Therefore, according to her calculation, the amount due is Rs.90,875/- with interest, it amounts to Rs.2,99,041/-. I have gone through these two calculation memos in the light of Ex.B.1. Ex.B.1 the mode of recovery of interest is specifically stated 24% interest on principal amount and 46.25 kata bags. It is not specifically stated either for two crops or one crop. In Ex.B.1 it is not specifically established the mode of recovery is stated under Ex.B.1 is to be valid. Now, in my view it cannot be said that 90 kata bags for two crops and it can be valued.
45.Even otherwise Garapati Sowjanya through P.Ws.1 to 5, has not specifically let in evidence with regard to the calculation of the interest anomalies in calculating the due amount by Mr. A.V.Ramana Murthy or to support her counter claim. When liberal meaning of Ex.B.1 is applied that for adjustment of interest recovery mode, that clause is to be followed rather than Sowjanya or Somasekhara Rao for calculating interest. As discussed above after going through the evidence of P.Ws.1 to 5, nothing much elicited to support their claim or D.W.1 to D.W.3 evidence do not show any evidence contra to Ex.B.1. Therefore, I am of the view that calculations levied by Mr. A.V.Ramana Murthy are proper, 20
Garapati Sowjanya is not entitled for furnishing of accounts and counter claim is not sustained.
46.Therefore, in the light of above discussions it can be safely concluded that Garapati Sowjanya is not entitled for account for income from the schedule property, not entitled for future profits, not entitled for preliminary decree and recover of amount as well as she is not entitled for counter claim. Interest left as discussed above. Accordingly the points are answered.
POINT NO.11:-
To what relief?
47.In the light of discussion made above, it is admitted by both counsels that Garapati Sowjanya deposited Rs.2 lakhs before the trial court on 29.6.2006 and it is lying in Civil Courts Accounts. From that period interest might have been accrued. The principal amount is proved to be of Rs.2 lakhs.
48.In the light of holding points in favour of Garapati Sowjanya that she is entitled for redeem the property, after paying the due amounts, as it is established by Mr. A.V.Ramana Murthy the due amount is Rs.3,82,440/- .
49.It is relevant that the learned Judge while answering the issue dismissed the suit OS No.67/1999 and counter claim in OS No.158/2002 by Garapati Sowjanya and granted preliminary decree in OS No.158/2002 is requires to be interfered by this court.
50.In the result,
(a)A.S. No.183/2007 is allowed setting aside the judgment and decree dated 5.2.2007 passed in OS No.67/1999 on the file of Senior Civil Judge, Ramachandrapuram and
OS No.67/1999 is hereby decreed as follows:
(i)Garapati Sowjanya is hereby declared as entitled to redeem the schedule property.
(ii)Mr. A.V.Ramana Murthy is hereby directed to deliver the mortgaged property and relevant documents relating to the mortgaged property, which are in his possession.
(iii)Mr. A.V.Ramana Murthy is hereby directed to deliver the possession of mortgaged property and 21 documents subject to payment of Rs.3,82,440/- due amount with interest on principal amount of Rs.2,00,000/- from the date of filing the suit OS No.158/2002 till 29.6.2006.
(iv)Garapati Sowjanya and Mr. A.V.Ramana Murthy are permitted to deduct the amount of Rs.2,00,000/- deposited by Garapati Sowjanya on 29.6.2006 with accrued interest from 2006 till the date of delivery of possession and documents from the due amounts.
(v)Both parties are permitted to file calculation memos of compliance of decree before the trial court within two months from the date of decree.
(vi)The relief sought for cancellation of mortgage deed and declaration that mortgage deed is invalid and binding and the relief for partition of the plaint schedule property and rendition of accounts, are hereby dismissed.
(b)A.S.No.203/2007 is allowed and the judgment and decree dated 5.2.2007 passed in OS No.158/2002 on the file of Senior Civil Judge, Ramachandrapuram granting of preliminary decree with subsequent interest at 6% per annum from the date of suit till realization on principal sum of Rs.2,00,000/- and time for redemption six months against 1st defendant i.e., Garapati Somasekhara Rao is hereby set aside and the claim of Mr. A.V.Ramana Murthy in OS No.158/2002 is hereby dismissed. Dismissal of counter claims by Garapati Somasekhara Rao and Garapati Sowjanya is hereby confirmed.
(c)Both parties in both the appeals shall bear their own costs.
Dictated to the Stenographer, transcribed by him, corrected
and pronounced by me in the open court this the 29th day of June, 2016.
JUDGE
FAMILY COURT-CUM-IX ADDL. DISTRICT COURT,
RAJAMAHENDRAVARAM.
Copy to the Senior Civil Judge, Ramachandrapuram.