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Supreme Court of India

VALLIKAT THEKKEDATH VALAPPIL LAKSHMIKUTTY AMMA AND ORS.versusVALLIKAT THEKKEDATH VALAPPIL DEMODARA MENON AND ORS.

Citation
1996 INSC 1417
Decided
29 November 1996
Disposal
Dismissed

Holding

A partition suit filed within the twelve‑year limitation period for possession is maintainable, and co‑mortgagors may seek possession upon paying their share despite the appellant's subrogation.

Summary

The appellant redeemed a possessory mortgage on item 6 of the schedule property and, by operation of subrogation, stepped into the shoes of the mortgagee. The respondents, who were co‑mortgagors, did not redeem the mortgage within the statutory 30‑year period, leading the trial and district courts to hold that the appellant had become the absolute owner and that a suit for partition could not lie. The Kerala High Court reversed this finding, holding that the property remained partible. On appeal, the Supreme Court examined the effect of subrogation under Section 92 of the Transfer of Property Act, 1882, and clarified that a co‑mortgagor who has not redeemed may sue for possession of his share within the 12‑year limitation period for possession, provided he pays his proportionate share of the mortgage debt. Since the partition suit was filed within this limitation period, the Court allowed the suit to proceed, subject to payment of the respective mortgage shares, and dismissed the appeal.

Issues considered

  • Whether redemption and subrogation by the appellant extinguished the co‑mortgagors' rights, rendering a partition suit barred.
  • Whether the limitation period for a suit for possession of a co‑mortgagor's share after redemption is twelve years.
  • Whether the respondents can claim possession of their share upon payment of the proportionate mortgage amount within the limitation period.

Legislation cited

Subjects

Transfer of Property Actsubrogationpossessory mortgagelimitation periodpartition suitredemptionco‑mortgagorequitable contribution

Judgment

               VALLIKAT THEKKEDATH VALAPPIL                                    A
                LAKSHMIKUTTY AMMA AND ORS.
                                     v.
               VALLIKAT THEKKEDATH VALAPPIL
                 DEMODARA MENON AND ORS.
                                                                               B
                          NOVEMBER 29, 1996

            [K. RAMASWAMY AND G.T. NANAVATI, JJ]

      Transfer of Property Act, 1882 : Section 92.
                                                                               c
       Mortgaged property-Right of subrogatiorr-Suit for possession by Co-
mortgagor-Limitation period for-Possessory mortgage of property-Property
redeemed by appellant-Thereafter suit filed for partition of plaint schedule
prope1ty-The Trial Court and the District Cowt found that since the appel-
lant had redeemed the property, he subrogated himself into the shoes of the D
mortgagee-Since the respondents have not redeemed the mortgage within a
period of 30 years from the date of execution of Mortgage deed, the appellant
has become absolute owner of the property-As a result, the suit for partition
in respect of the Plaint Schedule Property does not lie-High Court reversed
the finding and held that property was partible-Appeal before Supreme
Coult'-fleld, one of the co-owners or one of the co-mortgagers is entitled to E
redeem the mortgage and on redemption, he subrogates into the shoes of the
mortgagees-To the extent of his liability for the mo1tgage,he gets discharge
and to the extent of the shares of other co-mortgagers, he stands in the position
of mo1tgagee vis-a-vis other co-mortgagers-Therefore, it would be open to the
other mortgagers to sue for possession of the property, after paying their share F
within the period of limitation-12 years is a period of limitation for posses-
sion of the property-Since the appellant came into possession to the extent
of the share of other co-owners, namely, their Karvans of the Tarwad as a
mortgagee, they are entitled to pay to the extent of the respective shares of the
mortgage amount and seek possession from the co-mortgagor, namely, appel- G
!ant within 12 yea1~ from the date of the redemption of the mortgage-Jn these
circumstances, suit has been filed within limitation for a partition of property
and preliminary decree shall follow subject to the payment of mortgage
amount to the extent of their share to the appellant.

      Valliamma Champaka Pillai v. Sivathanu Pillai & Ors., [1979] 4 SCC H
                                     387
    388                      SUPREME COURT REPORTS [1996] SUPP. 9 S.C.R.

A 429, held inapplicable.
            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 15610 of
    1996.

         From the Judgment and Order dated 22.7.95 of the Kerala High
B   Court in S.A. No. 616 of 1985.

            Sanjay Parikh for the appellants.

            M.P. Vinod for the Respondents.

C           The following Order of the Court was delivered :

            Leave granted.

            We have heard learned counsel on both sides.

D         This appeal by special leave arises against the judgment and decree
    of the Kerala High Court, made on 22.7.1993 in S.A. No. 616/85.

          The admitted facts are that item 6 of the Plaint Schedule Property
    belonged to the Tarawad. The Karanawan had executed the possessory
E   mortgage as per Exhibit B-1 for a sum of Rs.200. The appellant lthiridutty
    Appachi filed suit No. OS-114/70 in the Court of Munsiff, Pattambi for
    redemption of the mortgage, Exhibit B-1. The property was redeemed by
    the appellant. Thereafter, the present suit came to be filed for partition of
    the plaint schedule property in their respective shares. We are not con-
    cerned in this case with other items. We are concerned only with respect
F   to item 6 of the mortgage property. Based on the contentions, it was found
    and accepted by the· trial Court and the District Court that since the
    appellant had redeemed the property, he subrogated himself into the shoes
    of the mortgages. Since the respondents have not redeemed the mortgage
    within a period of 30 years from the date of execution of Exhibit B-1, the
G   appellant has become absolute owner of the property. As a result, the suit
    for partition in respect of item No. 6 of the Plaint Schedule Property is not
    partible; it does not lie. The High Court in the above impugned judgment
    has reversed the finding and held that item 6 is also partible.

        The learned counsel appearing for the appellant relied on Valliamma
H   Champaka Pillai v. Sivathanu Pillai & Ors., [1979] 4 SCC 429; and con-
      V.T. VLAPPILLAKSHMIKUJT\' AMMA '· V.T. VALAPPIL DEMO DARA MENON    389

 tended that the respondent have failed to redeem the property within the A
 limitation and, therefore, they cannot file a suit for partition. It is difficult
 to accept the contention of the learned counsel. It is seen that in that case
 in the suit for redemption by one of the mortgagers, he had redeemed the
 mortgage but the suit was filed for delivery of the possession after 50 years
 or after the expiry of 12 years from the date of the redemption of the B
 mortgage was decreed. The question, therefore, was : when the limitation
.for filing the suit for possession would arise? It was held in para 28 as
 under:

         "Steering clear of the tangled web of conflicting and confusing
         decisions rendered on an interpretation of the relevant provisions C
         of the Transfer of Property Act, 1882, as they stood before the
         amendment of 1929, we may say at once that even where the
         Transfer of Property Act was not in force, a redeeming co-
         mortgagor discharging the entire mortgage debt, which was the
         joint and several liability of himself and co-mortgagor was.in equity, D
         entitled to be subrogated to the rights of the mortgagee redeemed
         and to treat the non-redeeming co-mortgagor as his mortgagor to
         the extent of the latter's portion of share in the hypotheca and to
         hold that portion or share as security for the excess payment made
         by him. This equitable right of the redeeming co-mortgagor stems
         from the doctrine that he was a principal debtor in respect of his E
         own share only, and his liability in respect of his co-debtor's share
         of the mortgage debt was only that of a surety; and when the surety
         had discharged the entire mortgage debt, he was entitled to be
         subrogated to the securities held by the creditor, to the extent of
         getting himself reimbursed for the amount paid by him over and F
         above his share to discharge the common mortgage debt."

         "From what has been said above it is clear that where the Transfer
         of Property Act is not in force and a mortgage with possession is
         made by two persons, one of whom only redeems discharging the G
         whole of the common mortgage debt, he will, in equity, have two
         distinct rights : Firstly, to be subrogated to the rights of the
         mortgagee discharged, vis-a-vis the non-redeeming co-mortgagor,
         including the right to get into possession of the latter's portion of
         share of the hypotheca. Secondly, to recover contribution towards
         the excess paid by him on the security of that portion or share of H
    390                   SUPREME COURT REPORTS (1996] SUPP. 9 S.C.R.

A            the hypotheca which belonged not to him but to the other co-
             mortgagor. It follows that where one co-mortgagor gets the right
                                                                                    .
             to contribution against the other co-mortgagor by paying off the
             entire mortgage debt, a corelated right also accrues to the latter
             to redeem his share of the property and get its possession on
             payment of his share of the liability to the former. This cor-
B
             responding and get possession of his property from the redeeming
             co-mortgagor, subsists as long as the latter's right to contribution
             subsists. This right of the 'non-redeeming' co-mortgagor, as rightly
             pointed out by the learned Chief Justice of the High Court in his
             leading judgment, is purely an equitable right, which exists ir-
c            respective of whether the right of contribution which the redeem-
             ing co-mortgagor has as against the other co-mortgagor, amount
             to a mortgage or not.

             Since subrogation of the redeeming co-mortgagor would give him
             the right under the original mortgage to hold the non-redeeming
D
             co-mortgagor's property as security to get himself reimbursed for
             the amount paid by him in excess of his share of the liability, it
             follows that a suit for possession of his share or portion of the
             property by a non-redeeming co-mortgagor on payment of the
             proportionate amount of the mortgage debt, may be filed either
E            within the limitation prescribed for a suit for redemption of the
             original mortgage or within the period prescribed for a suit for
             contribution by the redeeming co-mortgagor against the other
             co-mortgagor."

p       It is now settled legal position that one of the co-owners or one of
  the co-mortgagers is entitled to redeem the mortgage and on redemption,
  he subrogates into the shoes of the mortgagees. To the extent of his liability
  for the mortgage, he gets discharge and to the extent of the shares of other
  co-mortgagors, he stands in the position of mortgages viz-a-viz other
  co-mortgagors. Therefore, it would be open to the other mortgagors to sue
G for possession of the property, after paying their share within the period
  of limitation. It is not in dispute that 12 years is a period of limitation for
  possession of the property since the appellant came into possession to the
  extent of the share of other co-owners, namely, their Karvans of the Tarwad
  as a mortgagee. They are entitled to pay to the extent of the respective
H shares of the mortgage amount and seek possession from the co-mortgagor,
     V.T. VLAPP!LIAKSHMIKUITY AMMM. V.T. VAIAPP!LDEMODARAMENON        391

namely, appellant within 12 years from the date of the redemption of the     A
mortgage. Under these circumstances, suit has been filed within limitation
for a partition of property and preliminary decree shall follow subject to
the payment of mortgage amount to the extent of their shares to the
appellant.

       The appeal is accordingly dismissed with the above modifications      B
but, in the circumstances, without costs.

T.N.A.                                                 Appeal dismissed.


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