UNDER S. 9A(10) (II) (B) OF THE MADRAS AGRICULTURISTS RELIEF ACT
BENCH: SUBBARAO, K. DAYAL, RAGHUBAR BACHAWAT, R.S.
FACTS:
- The predecessors-in-interest of the appellants executed a registered mortgage deed in 1930 in favor of the respondent family for Rs. 31,000.
- The nature of the mortgage was usufructuary which was redeemable after 60 years.
- A petition was filed by the mortgagers under s. 9A and s.19A of the Madras Agriculturists Relief Act to scale down the mortgage debt
- The Learned subordinate judge did not scale down the mortgage debt based on the findings and in an appeal to the High court, it was observed to be a transfer for valuable consideration hence couldn’t be scaled down.
ISSUE:
- Whether s. 9A(10) (ii) (b) of the Madras Agriculturists Relief Act was attracted to the mortgage
APPELLANT’s CONTENTIONS:
- That there was no transfer of the mortgage property in trust for a charity
- That there was no transfer of the mortgage interest for valuable consideration
RESPONDENT’s CONTENTIONS:
- That the mortgage interest had been transferred to a charity for valuable consideration
- That the s 9A(10)(ii)(b) of the Act was not attracted and hence the mortgage debt was not liable to be scaled down under the Act.
JUDGEMENT:
Following the order of the High court, it was held that the family transferred the mortgage interest in trust to the charity for valuable consideration within the meaning of s. 9-A(10)(ii)(b) of the Act and the mortgage deed was not liable to be scaled down under the provisions of the Act. The appeal fails and dismissed with costs.
