25 April 2014
Supreme Court
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MATHAI MATHAI Vs JOSEPH MARY @ MARYKKUTTY JOPSEPH .

Bench: GYAN SUDHA MISRA,V. GOPALA GOWDA
Case number: C.A. No.-004479-004479 / 2007
Diary number: 19948 / 2005
Advocates: M. T. GEORGE Vs HIMINDER LAL


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                      REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.4479 of 2007

MATHAI MATHAI   ……APPELLANT Vs.

JOSEPH MARY @ MARYKKUTTY JOSEPH & ORS.   ……RESPONDENTS       

J U D G M E N T

V.Gopala Gowda, J.

This  appeal  is  directed  against  the  impugned  

judgment and order dated 1.7.2005 passed by the High  

Court  of  Kerala  at  Ernakulam  in  Civil  Revision  

Petition  No.  873  of  1997(C)  allowing  the  Civil  

Revision Petition and rejecting the O.A. No. 230 of  

1981, urging various facts and legal contentions.

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2. Necessary relevant facts of the case are stated  

hereunder:-

The  appellant  herein  filed  Original  Application  

No. 230 of 1981 before the Land Tribunal, Kottayam  

claiming to be a deemed tenant under Section 4A of the  

Kerala Land Reforms Act, 1963 (hereinafter referred to  

as “the K.L.R. Act”) read with Kerala Land Reforms  

Tenancy  Rules  (for  short  “the  Tenancy  Rules”)  and  

stating that his uncle had executed a mortgage deed in  

the year 1909-1910 in favour of the appellant’s mother  

late Smt. Aley as a collateral security for a sum of  

7000 Chakram which was the dowry amount.

3. It is the case of the appellant that his mother  

has been in possession of the land involved in the  

case as a mortgagee  from the date of execution of the  

mortgage deed referred to supra and she has been in  

continuous possession of the same for more than 50  

years as on the date of the commencement of the K.L.R.  

Act  (substituted  by  Act  35  of  1969)  immediately  

preceding  the commencement of the Kerala Land Reforms  

(Amendment)  Act,  1969  which  was  published  in  the  

Kerala Gazette Extraordinary No. 295 dated 17.12.1969  

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w.e.f. 1.1.1970. Therefore, he should be registered as  

deemed tenant in respect of the land in question as it  

has conferred a statutory right on him to purchase the  

mortgaged land in toto to the extent of 2 acres 48  

cents.  In  the  said  proceedings  the  father  of  the  

appellant got impleaded and opposed the claim made by  

the appellant and further denied that the mother of  

the appellant had  right as the mortgagee and was in  

possession and holding the land as a deemed tenant for  

the  50  years  immediately  preceding  the  amended  

provisions  of  Section  4A  of  the  K.L.R.  Act,  which  

provision came into effect from 1.1.1970. Therefore,  

he  has  contended  that  he  is  not  entitled  to  be  

registered  as  a  deemed  tenant  and  cannot  obtain  

purchase certificate of the land in question as per  

Section  72B  of  the  K.L.R.  Act.  Vide  order  dated  

21.3.1994,  the  Land  Tribunal,  after  recording  the  

finding of fact, held that the appellant is a deemed  

tenant  under  Sections  4A  of  the  K.L.R.  Act  and  

therefore,  he  is  entitled   to  get  the  purchase  

certificate.

 

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4. Aggrieved by the said order, the first respondent  

and  others  filed  an  appeal  before  the  Appellate  

Authority  (Land  Reforms)  under  Section  102  of  the  

K.L.R. Act questioning the correctness of the order  

dated 21.3.1994 passed by the Land Tribunal, Kottayam,  

on  various  factual  and  legal  contentions.  The  

Appellate Authority has adverted to certain relevant  

facts  in  respect  of  the  previous  proceedings  in  

relation to the same land initiated by the appellant  

under  Section  72  of  the  K.L.R.  Act  in  O.A.  

No.  531  of  1975,  which  was  allowed  by  order  dated  

25.4.1978  which  order  was  challenged  by  the  first  

respondent  herein  before  the  Land  Reforms  Appellate  

Authority,  Ernakulam  as  L.R.A.S.  534  of  1978  which  

appeal came to be allowed and the case was remanded to  

the  Land  Tribunal  for  reconsideration.  In  the  said  

proceedings the Revenue Inspector had filed his Report  

dated 23.4.1992 as contemplated under Section 105A of  

the K.L.R. Act. The same was marked as Exh.C1, after  

examining  Revenue  Inspector  in  the  proceedings.  The  

said  report  was  not  challenged  by  the  first  

respondent’s father and the same was accepted in toto  

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by the Land Tribunal. It is further stated that the  

objection of the father of the first respondent was  

taken  in  the  original  application  before  the  Land  

Tribunal  but  he  was  not  examined  as  a  witness  in  

support of his claim as he died during the pendency of  

the case. However, he was examined as a witness before  

the  Land  Tribunal  in  the  previous  O.A.  No.  531  of  

1975. In his deposition he has clearly stated that the  

possession and enjoyment of the disputed property was  

by the appellant herein. The said deposition is marked  

as Exh.A8 before the Land Tribunal.

 5.  The  Appellate  Authority  after  referring  to  the  

registered mortgage deed which is marked as Exh.A1,  

has  recorded  the  finding  of  fact  holding  that  the  

property involved in the original application of the  

appellant has been in his possession and enjoyment of  

the appellant and he has effected improvements on it  

and  cultivated  the  property  and  that  the  first  

respondent  has  no  title  or  possession  over  the  

property at any time. To prove the mortgage deed, A1  

the  appellant  herein  and  independent  witnesses  were  

examined on behalf of the appellant as A2 and A3 and  

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documentary evidence produced were marked as Exhs.A1  

to A9 in support of his claims. The said evidence has  been  corroborated  by  the  Revenue  Inspector’s  report  

and the first respondent was examined and she did not  

have direct knowledge of the property in dispute and  

her evidence was not accepted by the authorities. It  

is  observed  by  them  that  the  respondent’s  evidence  

does not carry any weight and reliance was placed upon  

both oral and documentary evidence of the appellant  

and the finding recorded by the appellate authority  

holding that he is the deemed tenant and the order  

passed  by  the  Land  Tribunal  does  not  call  for  

interference as there is no merit in the appeal and  

the  order  of  the  Land  Tribunal  was  confirmed  by  

dismissing the appeal of the first respondent with no  

cost  by  its  order  dated  9.4.1997.  This  order  was  

challenged  by  the  first  respondent  before  the  High  

Court of Kerala under Section 103 of the K.L.R. Act,  

urging  various  legal  contentions.  The  High  Court  

passed  a  cryptic  order  after  adverting  to  certain  

rival contentions and examined the correctness of the  

same in the Revision Petition. The learned Judge of  

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the High Court at para 3 of the impugned order has  

recorded the finding of fact holding that the factum  

of possession of the appellant cannot be disputed in  

view of the concurrent finding of fact. However, he  

has further held that mere possession of the disputed  

land does not give right of tenancy of the same on the  

basis of Exh.A1, the registered mortgage deed, which  

is the hypothecation bond and held that no possession  

of  the  disputed  land  was  granted  under  the  said  

document. Hence, it is held that Section 4A of the  

K.L.R. Act is not attracted to the fact situation of  

the  case  on  hand  to  enable  the  appellant  to  get  

purchase certificate in respect of the disputed land  

under  Section  72B  of  the  K.L.R.  Act  as  it  was  

necessary to prove that he is a cultivating tenant  

holding  the  property  in  possession  as  a  mortgagee  

which is absent in the present case. The learned Judge  

of the High Court held that the concurrent finding of  

fact by both the appellate authority as well as the  

Land Tribunal that Exh. A1 is the deed of mortgage  

under which the appellant is claiming possession of  

the  land  in  question  as  the  mortgagee,  is  not  

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factually  and  legally  correct  and  accordingly  has  

allowed the Revision Petition of the first respondent  

and rejected the Original Application No. 230 of 1981  

filed by the appellant.

6.  The  correctness  of  the  said  order  is  under  

challenge before this Court raising certain questions  

of law. Mr. M.T. George, the learned counsel for the  

appellant has contended that the High Court exceeded  

its jurisdiction under Section 103 of K.L.R. Act in as  

much as there is a failure to decide any question of  

law  and  has  rendered  an  erroneous  decision  on  the  

question of law framed by the appellate authority. He  

further urged another legal contention that the High  

Court was not justified in interfering with the orders  

of the Land Tribunal and the Appellate Authority, both  

on  the  factual  and  legal  question  which  was  not  

agitated  by  the  first  respondent  before  the  Land  

Tribunal  and  the  Appellate  Authority.  Further,  the  

High Court was not justified in reversing the orders  

of  the  Land  Tribunal  as  well  as  the  Appellate  

Authority, when it found that the appellant’s mother  

was a mortgagee and it is further found by both the  

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authorities as well as the High Court the fact that  

the  appellant’s  mother  and  the  appellant  were  in  

possession of the property for the statutory period  

prescribed under Section 4A of the K.L.R. Act. The  

Land Tribunal and the Appellate Authority recorded the  

finding on the contentious issue and held that the  

appellant is the deemed tenant of the land in question  

under Section 4A of the K.L.R. Act, which order has  

been erroneously interfered with by the High Court in  

exercise of its revisional jurisdiction. It was urged  

on  behalf  of  the  appellant  that  the  appellant  is  

entitled for the relief as he is the deemed tenant  

under Section 4A of the K.L.R. Act when his deceased  

mother was admittedly the mortgagee of the land in  

question and he continued as such and both the fact  

finding  authorities  have  found  them  to  be  in  

possession of the land in question for more than the  

statutory period as provided under the above provision  

of the Act. It was contended that the High Court in  

exercise  of  its  revisional  jurisdiction  should  not  

have interfered and annulled the orders of both the  

Land Tribunal and the Appellate Authority and it has  

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erroneously set aside the concurrent findings of fact  

recorded  by  both  the  authorities  vide  the  impugned  

order passed in the Revision Petition. Therefore, he  

submits that the impugned order is liable to be set  

aside as it is not only erroneous but also suffers  

from error in law. The appellant’s contention is that  

the property was mortgaged as a collateral security  

for  the  Stridhan  amount  given  on  behalf  of  the  

appellant’s mother at the time of her marriage with  

the  father  of  both  the  appellant  and  the  first  

respondent and though the document does not contain  

anything  regarding  delivery  of  possession  of  the  

property to the deceased mother of the appellant in  

the mortgage deed, nonetheless the appellant was put  

in possession of the property in question on the date  

of  the  mortgage  itself  and  she  continued  to  be  in  

possession  with  the  same  till  her  death  and  

thereafter,  the  appellant  came  into  possession.  The  

appellant’s counsel has contended that the conclusion  

of  the  High  Court  on  the  contentious  issue  is  

unwarranted and not justified and that both the Land  

Tribunal  and  the  appellate  authority  have  correctly  

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held on facts that the appellant is the mortgagee and  

has been in possession together with his mother for  

more  than  50  years  as  on  the  date  the  amended  

provision  has  come  into  force,  and  therefore,  they  

have rightly held that he is a deemed tenant of the  

land,  and  hence  entitled  to  get  the  purchase  

certificate in respect of the property in question. He  

has further contended that all that the law requires  

is that the tenure of the appellant as a mortgagee  

must be for a period of not less than 50 years and  

Section 4A does not demand that the mortgagee has to  

be put in possession under the mortgage deed itself.  

Therefore,  the  finding  of  the  High  Court  in  the  

impugned  order  that  ‘no  possession  of  the  land  in  

question  was  given  under  the  document’  is  an  

unwarranted  finding  which  is  outside  the  scope  of  

revisional  jurisdiction  while  examining  the  

correctness  of  the  concurrent  finding  on  the  

contentious issue.

 7.  This  appeal  is  strongly  opposed  by  the  first  

respondent’s  counsel  who  sought  to  justify  the  

correctness of the finding recorded by the High Court  

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in  its  order  in  exercise  of  its  revisional  

jurisdiction  after  noticing  the  pleadings  and  

documentary evidence on record. The first respondent,  

in her counter affidavit and written submissions has  

stated that the appellant is bound to prove the fact  

that he is the mortgagee and that the possession of  

the property has come to him as the mortgagee and that  

his deceased mother and the appellant have continued  

in possession of the property in dispute for more than  

50 years as on 1.1.1970, the date on which the K.L.R.  

Act  came  into  force  to  get  the  benefit  of  deemed  

tenancy upon the land in question. It is contended by  

the learned counsel that there is no recital in the  

document of the mortgage deed and that Ex. A1, the  

mortgage deed does not stipulate that the mortgagee is  

put in possession by virtue of that document. There is  no express clause for delivery of possession of the  

schedule property in favour of the mortgagee at the  

time of registering the document nor impliedly or by  

implication which binds the mortgagor to deliver the  

possession of the mortgage property to the mortgagee.  

The first respondent has further contended that as far  

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as the mortgage deed is concerned, the brother of the  

appellant’s father is the mortgagor and the claim can  

only be made against him and his property but however,  

the appellant has not claimed the right against him  

but  instead  against  the  first  respondent  and  their  

father. The mortgagor was not impleaded as a party and  

it is the contention of the first respondent that the  

appellant is attempting to get the ownership of the  

entire property. Further, both the Land Tribunal and  

the  Appellate  Authority  have  failed  to  take  into  

consideration the relevant fact namely, that at the  

time of the death of his mother, the appellant was a  

minor  and  therefore,  could  not  have  acquired  

possession  over  the  property  as  claimed  by  him.  

Therefore, they have not taken into consideration the  

fact that after the death of the mortgagee, the mother  

of the appellant, possession of the land came to the  

father of the appellant and the first respondent and  

therefore,  the  appellant  is  not  entitled  to  claim  

continuous possession of the same to get the benefit  

under  Section  4A  of  the  K.L.R.  Act,  even  assuming  

without conceding that the appellant’s mother acquired  

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a right under Exh.A1, the mortgage deed. Both the Land  

Tribunal  and  the  Appellate  Authority  should  have  

noticed  the  fact  that  the  mortgagee-mother  of  the  

appellant was not at all in possession of the property  

but it was in the exclusive possession of his father.  

As per family settlement of the year 1965, 94 cents of  

property covered under Exh. A1 was allotted to the  

first respondent. Again as per the sale deed of 1975,  

1 acre 68 cents of land covered under Exh. A1 was  

given to first respondent and ever since she is in  

exclusive possession and enjoyment of that extent of  

the property which was originally covered under Ex.  

A1-mortgage  deed.  Therefore,  it  is  seen  that  the  

property covered by Ex. A1-mortgage deed was in the  

exclusive possession and enjoyment of the appellant’s  

father. It was contended by the learned counsel that  

this aspect of the matter has not been considered by  

the  Land  Tribunal  and  the  Appellate  Authority.  

Further, it is urged that the appellant and the first  

respondent are children of the deceased Mathai Mathai,  

though  they  are  only  half-brother  and  sister  being  

born to two different mothers. Therefore, the first  

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respondent is also one of the legal heirs and entitled  

to  inherit  the  property  of  her  father  but  the  

appellant  utilizing  or  misusing  the  position  as  a  

mighty  man  with  muscle  power  managed  to  get  oral  

evidence in his favour though there was no documentary  

evidence supporting his claim and he has tried to grab  

the entire property left behind by their father in  

exclusion of the first respondent and therefore, she  

requested  this  Court  not  to  interfere  with  the  

impugned order.

8. We have heard the learned counsel for the parties  

and  with  reference  to  the  above  factual  and  rival  

legal contentions urged on behalf of the parties the  

following points would arise for our consideration :-

(1) Whether Exh.A1, the mortgage deed dated  

1909-1910  is  a  valid  mortgage  deed  and  

even if it is so, whether it is a simple  

or  usufructuary  mortgage  in  terms  of  

Sections 58(b) and 58(d) of the Transfer  

of Property Act, 1882?  

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(2) Whether  the  concurrent  finding  of  the  

Appellate  Authority  in  its  judgment  

passed in AA No. 216 of 1994 is based on  

legal  evidence  on  record  and  in  

accordance with law?

(3) Whether  the  finding  recorded  in  the  

impugned  judgment  by  the  High  Court  in  

exercise  of  its  revisional  jurisdiction  

with regard to possession of the property  

holding  that  the  appellant  is  not  in  

possession  under  the  document  Exh.  A1-

mortgage deed, and therefore, he is not  

the deemed tenant of the land in question  

under Section 4A of the K.L.R. Act, is  

legal and valid?

(4) What order?

 

Answer to Point No. 1 9. The first point is required to be answered against  

the appellant for the following reasons:-

It  is  an  undisputed  fact  that  Exh.  A1  is  the  

mortgage deed executed by the uncle of the appellant  

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and the first respondent in favour of the deceased  

mother of the appellant as collateral security towards  

the  dowry  amount.  At  the  time  of  execution  and  

registration of the document, it is an undisputed fact  

that the age of the mortgagee, the deceased mother of  

the  appellant  was  15  years  as  mentioned  in  the  

mortgage deed itself. Therefore, she had not attained  

the majority under the Indian Majority Act, 1875. To  

acquire the competency to enter into a contract with  

the  uncle  of  both  the  appellant  and  the  first  

respondent  the  parties  should  have  been  of  age  of  

majority as required under Section 11 of the Indian  

Contract  Act,  1872.  The  aforesaid  aspect  fell  for  

interpretation before the Privy Council in the case of  

Mohori Bibee v.  Dharmodas Ghose1, wherein the Privy  

Council after interpretations of relevant provisions  

of Section 11 of the Indian Contract Act, 1872, has  

held that the contracting parties should be competent  

to contract as per the above provision and the minor’s  

contract  was  held  to  be  void  as  he  cannot  be  the  

mortgagor, the relevant paragraphs referred to in the  

aforesaid decision are extracted hereunder :- 1 (1903) I.L.R. 30 Calc. 539

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“Looking  at  these  sections  their  Lordships are satisfied that the Act  makes  it  essential  that  all  contracting  parties  should  be  “competent  to  contract,”  and  expressly  provides  that  a  person,  who  by  reason  of  infancy  is  incompetent to contract, cannot make  a contract within the meaning of the  Act”  

In the later part of the same paragraph, it is stated,

“The question whether a contract is  void  or  voidable  presupposes  the  existence of a contract within the  meaning  of  the  Act,  and  cannot  arise  in  the  case  of  an  infant.  Their  Lordships  are  therefore  of  opinion  that  in  the  present  case  there  is  not  any  such  voidable  contract  as   is  dealt  with  in  section 64.”

Thus, it was held that a minor cannot be a contracting  

party, as a minor is not competent to contract as per  

Section  11  of  the  Indian  Contract  Act.  At  this  

juncture, it is also necessary to extract Sections 2  

and 11 of the Indian Contract Act, 1872 which read as  

under:-

“2.Interpretation-clause.  In  this  Act  the following words and expressions are  used in the following senses, unless a  contrary  intention  appears  from  the  context :-     

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(a)  When  one  person  signifies  to  another  his  willingness  to  do  or  to  abstain  from  doing  anything,  with  a  view  to  obtaining  the  assent  of  that  other to such act or abstinence, he is  said to make a proposal;    (b)  When  the  person  to  whom  the  proposal is made signifies his assent  thereto,  the  proposal  is  said  to  be  accepted.  A  proposal,  when  accepted,  becomes a promise;    (c)  The person making the proposal is  called  the  “promisor”  and  the  person  accepting  the  proposal  is  called  the  “promisee”;    (d)  When,  at  the  desire  of  the  promisor,  the  promisee  or  any  other  person  has  done  or  abstained  from  doing, or does or abstains from doing,  or promises to do or to abstain from  doing,  something,  such  act  or  abstinence  or  promise  is  called  a  consideration for the promise;

(e)  Every  promise  and  every  set  of  promises, forming the consideration for  each other, is an agreement;    (f)  Promises,  which  form  the  consideration  or  part  of  the  consideration  for  each  other,  are called reciprocal promises;    (g)   An  agreement  not  enforceable  by  law is said to be void;  

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(h)  An agreement enforceable by law is  a contract;    (i)  An agreement which is enforceable  by law at the option of one or more of  the  parties-  thereto,  but  not  at  the  option  of  the  other  or  others,  is  a  voidable contract;    (j)  A  contract  which  ceases  to  be  enforceable by law becomes void when it  ceases to be enforceable.  

11.  Who  are  competent  to  contract-  Every person is competent to contract  who is of the age of majority according  to the law to which he is subject, and  who  is  of  sound  mind  and  is  not  disqualified  from  contracting  by  any  law to which he is subject.”  

This  important  factual  and  legal  aspect  has  been  

conveniently ignored by the authorities including the  

High  Court  while  adverting  to  Exh.A1,  the  mortgage  

deed. A strong reliance was placed upon it by both the  

Land Tribunal and the Appellate Authority in allowing  

the claim application of the appellant holding that he  

is a deemed tenant under Section 4A of the K.L.R. Act  

without noticing the aforesaid relevant factual aspect  

of the matter. Therefore, we have to hold that the  

mortgage  deed-Ex.  A1  executed  by  the  uncle  of  the  

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appellant and the first respondent, in favour of the  

deceased  mother  of  the  appellant,  is  not  a  valid  

mortgage deed in respect of the property covered in  

the said document for the reason that the deceased  

mother at the time of execution and registration of  

the document was a minor, aged 15 years, and she was  

not represented by her natural guardian to constitute  

the document as valid as she has not attained majority  

according to law. Many courts have held that a minor  

can be a mortgagee as it is transfer of property in  

the interest of the minor. We feel that this is an  

erroneous application of the law keeping in mind the  

decision of the Privy Council in  Mohori Bibee’s  case  

(supra).

10. As per the Indian Contract Act,1872 it is clearly  

stated that for an agreement to become a contract, the  

parties must be competent to contract, wherein age of  

majority  is  a  condition  for  competency.  A  deed  of  

mortgage  is  a  contract  and  we  cannot  hold  that  a  

mortgage  in  the  name  of  a  minor  is  valid,  simply  

because it is in the interests of the minor unless she  

is  represented  by  her  natural  guardian  or  guardian  

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appointed  by  the  court.  The  law  cannot  be  read  

differently for a minor who is a mortgagor and a minor  

who is a mortgagee as there are rights and liabilities  

in respect of the immovable property would flow out of  

such a contract on both of them. Therefore, this Court  

has to hold that the mortgage deed-Ex.A1 is  void ab  

initio  in  law  and  the  appellant  cannot  claim  any  

rights under it. Accordingly, the first part of first  

point is answered against the appellant.

11. As  regards  to  the  later  portion  of  the  first  

point, even if we assume that it is a valid mortgage  

deed as per recitals of the documents, it is evident  

that it is a simple mortgage in terms of Section 58(b)  

of  the  Transfer  of  Property  Act,  1882,  but  not  a  

usufructuary mortgage as defined under Section 58(d)  

of  the  Transfer  of  Property  Act.  The  relevant  

provisions of the same are extracted hereunder :-  

“58.(b)-Simple  mortgage -  Where,  without delivering possession of the  mortgaged  property,  the  mortgagor  binds himself personally to pay the  mortgage-money, and agrees, expressly  or impliedly, that, in the event of  his failing to pay according to his  contract, the mortgagee shall have a  

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right to cause the mortgaged property  to be sold and the proceeds of sale  to  be  applied,  so  far  as  may  be  necessary,  in  payment  of  the  mortgage-money,  the  transaction  is  called  a  simple  mortgage  and  the  mortgagee a simple mortgagee.  

(d) Usufructuary mortgage - Where the  mortgagor  delivers  possession  or  expressly  or  by  implication  binds  himself to deliver possession of the  mortgaged property to the mortgagee,  and  authorises  him  to  retain  such  possession  until  payment  of  the  mortgage-money,  and  to  receive  the  rents and profits accruing from the  property or any part of such rents  and  profits  and  to  appropriate  the  same  in  lieu  of  interest,  or  in  payment  of  the  mortgage-money,  or  partly in lieu of interest or partly  in payment of the mortgage-money, the  transaction is called an usufructuary  mortgage  and  the  mortgagee  an  usufructuary mortgagee.”  

On a careful reading of the recitals in Exh.A1, the  

mortgage  deed  and  the  aforesaid  provisions  of  the  

Transfer  of  Property  Act,  i.e.  the  definitions  of  

simple  mortgage  and  usufructuary  mortgage,  wherein  

simple  mortgage  is   defined  as  the  mortgage  where  

property is mortgaged without delivering possession of  

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the  mortgaged  property  to  the  mortgagee  whereas  

usufructuary mortgage is defined as the mortgage where  

the mortgagor delivers possession or  expressly or by  

implication binds himself to deliver  possession of  

the mortgaged property to the mortgagee and further  

authorises him to retain such possession until payment  

of the mortgage- money, and to receive the rents and  

profits accruing from the property or any part of such  

rents and profits and to appropriate the same in lieu  

of interest, or in payment of the mortgage-money, or  

partly in lieu of interest or partly in payment of the  

mortgage-money. It is clear that in the present case,  

it  is  a  simple  mortgage  and  not  a  usufructuary  

mortgage. Here, it is relevant to mention the case of  

Pratap Singh @ Babu Ram & Anr. v. Deputy Director of  

Consolidation,  Mainpuri  &  Ors.2,  wherein  this  Court  

held as under :- “In  the  case  of  possessory  or  usufructuary mortgage, possession is  delivered to the mortgagee. Delivery  of possession to the mortgagee is a  sine qua non of such a mortgage. It  is delivered in terms of the mortgage  by the mortgagor of his own volition  to the mortgagee. The mortgagee gets  possession over the land only because  

2 (2000) 4 SCC 614

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it has been delivered to him in terms  of  the  mortgage  deed  which  equally  binds him.”

Thus, it is apparent that if a mortgage needs to be a  

usufructuary mortgage, possession has to be delivered  

under the aegis of the mortgage deed itself. Further,  

as per section 58(d) of the Act, in a usufructuary  

mortgage,  the  mortgagor  authorises  the  mortgagee  to  

receive  the  rents  and  profits  accruing  from  the  

property  in  order  to  pay  off  the  loan  and  in  the  

present case, there is nothing to show that this was  

happening and it is not substantiated by the appellant  

by  producing  documentary  evidence.  Further,  the  

mortgagor has agreed to pay interest at the rate of  

‘half  chakram  per  year  for  every  hundred’  towards  

repayment of the loan  amount and this is detailed in  

the mortgage deed itself and hence we can infer that  

there was no intention on the part of the parties to  

allow  the  mortgagee  to  appropriate  the  rents  and  

profits accruing out of the mortgaged property. It is  

also stated in the mortgage deed that, on payment of  

the principal, this mortgage deed will be redeemed,  

and if the principal and interest are not repaid, then  

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it was agreed ‘to realize it charged upon the security  

property and on me’, meaning the mortgagor. Thus, it  

is very clear that the mortgage deed only purports to  

be that of a simple mortgage. Merely the fact that the  

mortgagee herein happened to be in possession of the  

mortgaged property will not make it sufficient to rule  

that he/she was a mortgagee in possession under the  

deed.  Further,  the  argument  that  possession  of  the  

property was delivered immediately after the deed was  

executed  also  cannot  be  a  ground  to  hold  that  

mortgagee was in possession  of the land in question  

as per the deed as there is no recital in the deed  

which delivers possession of the land to the mortgagee  

under the deed. In the case of Ramkishorelal & Anr. v.  

Kamal Narayan3, it was held that the course of conduct  

of the parties is of no relevance for the construction  

of a document which is in itself, unambiguous. In the  

present case, the mortgage deed is unambiguous and it  

is patently clear that the mortgagor did not intend to  

deliver possession of the mortgaged property as he has  

clearly mentioned that he is paying interest but there  

is no delivery of possession of land as per the deed.  3 AIR 1963 SC 890

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12. By perusing the recitals of the mortgage deed, it  

is seen that it neither expressly or by implication  

binds the mortgagor, the uncle of the first respondent  

to  deliver  possession  of  the  property  and  for  the  

mortgagee to retain such possession of the same until  

payment of the mortgage money but on the other hand  

the mortgage is a simple mortgage as the recitals fall  

within the definition of simple mortgage and there is  

no express recital in the deed to deliver possession  

of the mortgaged property.  

By a careful reading of the orders passed by the  

authorities, it is clear that the appellant has not  

produced any revenue records to evidence the fact that  

after  Exh.A1-mortgage  deed  was  executed  by  the  

mortgagor in the name of the deceased mother of the  

appellant, her name was entered in the revenue records  

as  the  mortgagee  in  possession  of  the  mortgagor’s  

property covered in Exh. A1, and in this regard no  

piece of evidence has been produced to establish this  

fact  which  would  have  been  material  documentary  

evidence. But on the other hand, the Land Tribunal and  

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the Appellate Authority have preferred to simply rely  

on  the  Revenue  Inspector’s  report  as  well  as  the  

deposition of the father of the first respondent and  

the appellant as per Exh.A8 in the proceedings in O.A.  

No. 531 of 1975 in order to hold that the appellant  

was in possession as the mortgagee. Even assuming the  

said document Exh.A8 deposition of the father is taken  

on record as evidence under Section 80 of the Evidence  

Act, the said document at best will disclose the fact  

that the appellant is in possession of the property  

but not as a successor of the deceased mother, the  

mortgagee  of  the  property.  He  also  could  not  have  

claimed that he has succeeded in possession of the  

land in question of the deceased mother for the reason  

undisputedly as stated by the first respondent that at  

the time of death of the deceased mother-mortgagee,  

the appellant was a minor and therefore, he could not  

have come into possession and continued as such after  

the  death  of  the  deceased  mortgagee  and  so  the  

possession  of  the  land  falls  to  the  father  of  the  

appellant.  The  appellant  has  failed  to  produce  and  

establish the fact in the absence of recital in the  

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mortgage deed Exh.A1 as to how the mortgagee has come  

into the possession and how he continued possession as  

successor of the mortgagee. The aforesaid factual and  

legal aspect has not been taken into consideration by  

both the authorities while coming to the conclusion on  

the basis of  Exh.A1 and instead, accepted the oral  

testimony  of  the  appellant,  and  the  finding  is  

erroneously  recorded  by  them  in  his  favour  holding  

that the deceased mortgagee was in possession of the  

land in question and after her death he continued in  

possession as a mortgagee. Therefore, the concurrent  

finding of fact of the appellate authority that he has  

proved this claim as a deemed tenant under Section 4A  

of  the  K.L.R.  Act  and  he  is  entitled  to  get  the  

purchase certificate of the owner of the property is  

not only an erroneous finding but suffers from error  

in law and it has been rightly set aside by the High  

Court in exercise of its wider civil jurisdiction by  

recording a finding that the appellant’s possession of  

the  property  is  not  that  of  a  mortgagee  under  the  

mortgage deed.

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Answer to Point Nos. 2 and 3

13. Even in the absence of the reasons which we have  

given  in  this  judgment,  the  conclusion  and  the  

concurrent  finding  of  fact  arrived  at  by  the  Land  

Tribunal and the First Appellate Authority is not only  

an erroneous finding but suffers from error in law.  

Further, another important aspect of the case that has  

been  ignored  by  both  the  authorities  and  the  High  

Court is that the mortgagor (or his legal heirs) have  

not been impleaded as a party to the original claim or  

to subsequent proceedings. There is also no mention  

whatsoever of the status of the original dowry amount  

for  which  the  property  was  mortgaged  in  the  first  

place.  Was  the  obligation  discharged?  What  is  the  

mortgagor’s  stand  on  the  issue?  Nothing  is  clear.  

Further,  the  first  respondent’s  claim  of  ownership  

through her father is also highly curious as it is not  

stated how the father is claiming ownership over the  

property. In the absence of this important evidence,  

we  cannot  adjudicate  upon  the  ownership  of  the  

property. We can only hold that the appellant cannot  

claim to be a deemed tenant of the land in question  

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under the K.L.R Act and it is open to the parties to  

litigate on the question of ownership of the property  

in question before the appropriate authority. We hold  

that  the  impugned  judgment  of  the  High  Court  is  

perfectly legal and valid, and that the orders of the  

Land  Tribunal  and  Appellate  Authority  are  erroneous  

for the reason that the facts and legal evidence have  

been wrongly appreciated and held in favour of the  

appellant, although it is contrary to the recitals of  

Exh.A1,  as  well  as  the  provisions  of  the  Indian  

Contract Act and the provisions of the Transfer of  

Property  Act.  Therefore,  the  findings  and  reasons  

recorded by both the Land Tribunal and the Appellate  

Authority are erroneous and suffer from error in law  

for the reasons referred to supra. We answer the point  

Nos. 2 and 3 against the appellant.  

Answer to Point No. 4

14. In view of our findings on the point Nos. 1 to 3  

against the appellant, we hereby dismiss this appeal  

and uphold the impugned judgment of the High Court  

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passed in the Civil Revision Petition. It is open to  

the parties to litigate before the appropriate court  

with regard to the ownership rights of the property  

under  the  relevant  provisions  of  law  to  get  their  

rights  settled  upon  the  property  in  question.  No  

costs.

                     

               ………………………………………………………………………J.

                        [GYAN SUDHA MISRA]                       

                                                          ………………………………………………………………………J.

           [V. GOPALA GOWDA] New Delhi, April 25, 2014    

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ITEM NO.1C               COURT NO.13             SECTION XIA FOR JUDGMENT

           S U P R E M E   C O U R T   O F   I N D I A                          RECORD OF PROCEEDINGS

               CIVIL APPEAL NO(s). 4479 OF 2007

MATHAI MATHAI                                     Appellant (s)

                VERSUS

JOSEPH MARY @ MARYKKUTTY JOPSEPH & ORS.           Respondent(s)

Date: 25/04/2014  This Appeal was called on for judgment today.

For Appellant(s) Mr. M.T. George,Adv.

For Respondent(s) Mr. Roy Abraham, Adv.

        

Hon'ble  Mr.  Justice  V.  Gopala  Gowda  pronounced  the  judgment  of  the  Bench  comprising  Hon'ble  Mrs.  Justice  Gyan  Sudha  Misra  and  His  Lordship.

Civil Appeal is dismissed in terms of signed  reportable judgment. No costs.

  

(Pardeep Kumar)  AR-cum-PS

(Renu Diwan)  Court Master

[SIGNED REPORTABLE JUDGMENT IS PLACED ON THE FILE]

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