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Titali Venkata Seetharamaya Vs. Vedvla Venkataramaya and ors. - Court Judgment

LegalCrystal Citation
CourtChennai
Decided On
Judge
Reported in15Ind.Cas.334a
AppellantTitali Venkata Seetharamaya
RespondentVedvla Venkataramaya and ors.
Cases ReferredGhulam Husain v. Dina Nath
Excerpt:
.....act (iv of 1882), sections 85, 91 - attachment of mortgaged property by holder of a money-decree--suit on mortgage--decree--attaching creditor not made party, effect of. - securitisation & reconstruction of financial assets & enforcement of security interest act, 2002 [c.a. no. 54/2002]section 17; power of tribunal to impose condition relating to deposit for grant of stay of auction held, there is no specific provision made under section 17 of securitisation act or under any other provisions of the said act empowering the tribunal to pass any interim order. but under sub-section (12) of section 19 of the recovery of debts due to banks and financial institutions act, 1993, the tribunal has been empowered to pass various interim orders. if sub-section (7) of section 17 of securitisation..........defendant and attached the mortgaged property. after the attachment, the plaintiff instituted a suit for sale on his mortgage, but impleaded only the 3rd defendant as a party and obtained a decree for sale. the defendants nos. 1 and 2 then made an application to bring the property to sale in pursuance of their attachment. the plaintiff then put in a claim petition stating that the 3rd defendant had no longer any saleable interest in the property as he had brought it to sale in pursuance of his mortgage decree. the claim was disallowed and he instituted the present suit for a declaration that the 1st and 2nd defendants are no longer entitled to bring the property to sale. an attaching creditor is one of the class of persons that are entitled to redeem a mortgage under section 91 of the.....
Judgment:

1. In this case, the plaintiff is a person holding a mortgage from the 3rd defendant over some properly belonging to him; the 1st and 2nd defendants obtained a money-decree against the 3rd defendant and attached the mortgaged property. After the attachment, the plaintiff instituted a suit for sale on his mortgage, but impleaded only the 3rd defendant as a party and obtained a decree for sale. The defendants Nos. 1 and 2 then made an application to bring the property to sale in pursuance of their attachment. The plaintiff then put in a claim petition stating that the 3rd defendant had no longer any saleable interest in the property as he had brought it to sale in pursuance of his mortgage decree. The claim was disallowed and he instituted the present suit for a declaration that the 1st and 2nd defendants are no longer entitled to bring the property to sale. An attaching creditor is one of the class of persons that are entitled to redeem a mortgage under Section 91 of the Transfer of Property Act. A private alienation by the mortgagor after attachment would admittedly be invalid as against an attaching creditor's claims to bring the property to sale in pursuance of his attachment. Section 85 of the Transfer of Property Act requires all parties interested in the property to be made parties to a suit for sale. Section 91 recognises an attaching creditor as one who, by virtue of his interest in the property, is entitled to redeem the mortgage. There can be no doubt that the plaintiff ought to have made the attaching creditors, defendants Nos. 1 and 2, parties to his suit for sale, and, as he failed to do so, the sale is not binding on them, and they are entitled to bring the properties to sale under their attachment. The decision in Ghulam Husain v. Dina Nath 23 A.P 467 is in accordance with this view. The fact that there was an order for sale in that case made no difference in the rights of the attaching creditor. A mere order for sale does not increase the interest in the property which the attaching creditor has by virtue of his attachment.

2. The second appeal must be dismissed with costs.


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