SHEO LAL AND ORS. v. SULTAN & ORS. September 15, 1969 40 5 [J. C. SHAH, V. RAMASWAMI AND A, N. GROVER, JJ.] c R_ede'.nption of Mortgc;ges (Punjab Act 2 of 1913) ss. 4. 9 and 12- Appllcatton for reden1pt1011 of 111ortgage under s. 4–Assistant Collector dismi.ssing application relegating parties to suit in view of co111Dli::ated questions of fact and law involved-If Art. 14 of Lbnitation ,4ci 1908 <.pplicable to ntbsequent suit for redetnption.
. In August. .1935 the owner of a piece of land mortgaged a part of it without possession to M. In November 1914 he mortgaged the cn;ire ~rea of the land to A. Thereafter he sold his rights in the land (except
1~ a smaU area) in May. 1943 to the plaintiffs. In May, 1951 the plain· tiffs applied under s. 4 of the Redemption of Mortgages (Punjab Act 2 of 1913) for redeeming the n1ortgage in favour of M but this application was rejected by the Assistant Collector on June 29. 1951.
A suit filed by the. plaintiffs in August, 1960 in a civil court for redemption of the mortgage was resisted, inter alia. on the ground that it was time-barred by virtue of Art. 14 of the Limitation Act. 1908 as it \\'as not filed \Vithin one year of the rejection of the application by the Assistant Collector. The trial court dismissed the suit for redemption of the mortgage in favour of M and granted a decree for redemption of the second mortgage of November. 1941. The District Court. allowing an appeal, ordered redemp- tion of the land including the mortgage in favour of M and this dechion was confirmed in second appeal by the High Court.
There \\'a~ a con- current finding by the courts helow that the petilion for redemption was not tried bv the Assistant Collector on the merits but that he rejected it holding tha·t the application raised complicated questions of fact anJ law and .on that account was not triable in exercise of the summary jurisdiction prescribed under Act 2 of 1913.
On appeal by special leave to this Court. HELD : Dismissing the appeal. The,_suit for redemption filed by the plaintiffs was not barred by the Law of Limitation. The Assistant Collector merely ordered that the case raised complicated questions of fact and law \vhich could ~o~ be tried in a summary pro- ceeding.
Such an order does not fall "'."1.th1n the t~rm.s of s. 9 of Act 2 of I 913. Even if by the order the petition v.·as d1sm1ssed, not the form of the order. but its substance will determine the application of the period of limitation prescribed by Art. 14 of the Limitation Act. An order
relegating the mortgagor to a civil suit for o_btaining an o~der of ~ede~1p tion even if it becomes final does not bar a suit fdr redemptton. for 1t raises no cloud on the title of the mortgagor arising out of the mortgage. Such
an order ls not one which is required to be set aside. An order required to be set aside is one which the officer making it has jurisdiction to make it and has the effect of barring the claim for relief unless it i'> ">Ct <t"idc. [410 F-HJ
L2Sup(Cl)/70-14 [I 970J 2 S.C.R. Tul>i Das v. piala Ram, I.LR. (1944] Lah. 1 (F. B.) and Dewan Chand v. Raghbir•Smgh, l.L.R. [1966] 1 Punjab 193; referred 10 and approved. C1v1L APPELLATE Jua1so1cT10N: C!vil Appeal No, 1115 of
1966. Appeal by special leave from the judgment and decree dated November·l8, 1965 of the Punjab High Court in Regular Second Appeal No. 1169 ot 1962. Rameshwar Dial and A. D. Mathur, for the appellants.
K. S. Chawla, K. L. Mehta and S. K. Meh:a, for respondents Nos. 1 to 7. The Judgment of the Court was delivered by Shah, J. Ram Sarup was the owner of a piec~ of land mea- suring 30 bighas 12 biswas. By· a deed dated August 16, 1935; Ram Sarup mortgaged without possession a part of the land mea- suring approximately 26 bighas with one Meda. Ram Sarup on November 27, 1941, mortgaged with possession the entire area of the land to- Ananda. Ram Sarup then sold his rights in 27 bighas and 1 biswa of ti:.~ land on May 14, 1943 to Buru and others-who may be collectively called 'the plaintiffs'-for Rs. 6,000. The
plaintiffs then applied on May 23, 1951, under s. 4 of the Redemp- tion of Mortgages (Punjab) Act 2 of 1913 for redeeming the mort- gage in favour of Meda. This application was rejected on June 29, 1951. Thereafter the plaintiffs instituted on August 20, 1960, a suit in the civil court for redemption of the mortgage. The suit was resisted, inter alia, on the ground that the period oi limitation prescribed by Art. 14 of the Indian Limitation Act, 1908, had ex- pirej. It was submitted that the plaintiffs had moved an applica· tion for redempcion of mortgage under s. 4 of the Redemption of Mortgages (Punjab) Act 2 of 1913 but the same was dismissed on June 29, 1951, by the Assistant Collector and since no suit was filed withig one year from that date, the suit for redemption of the first mortgage in favour of Meda was barred. The Trial Court dismissed the suit for redemption of the mortgage in favour of Meda, and granted a decree for redemption of the second mort- gage dated November 27, 1941.
The plaintiffs appealed to the District Court, Gurgaon. The District Court allowed the appeal and ordered redemption of the land including the mortgage in favour of Meda. The decree passed by the District Court was con- firmed in second appeal by the High Court of Punjab. With spe- cial leave, this appeal has been preferred by sons of Meda. The record of the proceedings be_fore the Assistant Collector was, it was reported, destroyed before the suit was filed, and an c
SHEO LAL v. SULTAN & ORS. (Shah, J.) extract from the register of redemption applications could be ten- dered in evidence. The last column of the extract contained the entry : "The application is rejected and should be consigned to the record room". An endorsement on the docket maintained by the Advocate who appe~red in the case before the Assistar.t Col· lector showed an endorsement dated June 29, 1951 : "Application rejected. The petitioner has today been ordered to file a civil suit." The Trial Court and the District Court held that the petition for redemption was not tried by the Assistant Collector; he rejected the petition holding that the application raised complicated ques- tions of fact and law, and on that account was not triable in exer- cise of the summary jurisdiction prescribed under Act 2 of 1913. With this view the High Court agreed.
Counsel for the appellants contends that the order of the Assistant Collector rejecting the petition under s. 4 of the Punjab Ac~ 2 of 1913 became final by virtue of s. 12 of the Act and the mortgagor could not sue to redeem the mortgage in favour of Meda after the expiry of one year from the date of the order. The relevant provisions of the Redemption of Mortgages (Pun- jab) Act 2 of 1913 may first be noticed. Bys. 4 it is provided: "The mortgagor or other person entitled to institute
a suit for redemption may, at any time after the principal money becomes payable and before a suit for redemption is barred, present a petition to the Collector applying for a.n order directing that his mortgage be redeemed,
and where the mortgage is with possession that he be put in possession of the mortgaged property. Sections 5, 6 and 7 deal with the procedure to be followed in the trial of applications under the Act.
Section 8 provides : "Where both parties appear when the petition is called on for hearing, the Collector shall enquire from the mortgagee whether he admits that the petitioner is
entitled to redeem, whether he is willing to accept the sum in deposit in full discharge of the mortgage debt, and wher·e the mortgage is with possession whether he is willing to surrender possession of ti,~ mortgaged
property. If the mortgagee replies in the affirmative, the Col- lector shall make an order as laid down in section 6(a), (b), (c) and (d) of tltis Act. [ 1970] 2 S.C.R. Section 9 on which reliance is primarily placed provides : "If the mortgagee raises
objection on any ground other than the amount of the deposit, or if the petitioner is not willing to pay the sum demanded by the mort- gagee, the Collector may either (a) for reasons to be
recorded c!ismiss the petition, _•r (b) make a summary enquiry regarding the objection raised bv the mortgagee or regarding the sum due." Section I 0 provides for enquiry into objections raised by the mort- gagee, and s. l l provides for enquiry regarding the sum due under the mortgage and further provides for making deposit by the mort- gagor within the period to be fixed by the Collector.
Section 12 provides by the first paragraph : "Any party aggrieved by an order made under sec- tions 6, 7, 8, 9, l U or 11 of this Act may institute a suit to establish his rights in respect of the mortgage: but,
sul-; ct to the result "of such suit, if any, the order shall be v11clusive." Article 14 of Sch. 1 of the Limitation Act. I 908, provides that a suit to set aside any act or order of an officer of Government in his official capacity. not herein otherwise expressly provided for, shall be filed within one year of the date of the act or order.
We are unable to agree with the appellant's contention that since no suit was filed within one year of the date on which the application of the plaintiffs was rejected by the Assistant Collector, the order dismissing the application was conclusive, and the suit for redemption by the plaintiffs was not maintainable.
Section 9(l)(a)of the Act authorises the Collector or dismiss the :Jetition for reasons to be recorded, where the morgagee raises objection on a ground other than the amount of deposit or if the mortgagor is not willi.ng to pay the sum demanded by the mortgagee. There is 110 evidence that the mortgagor declined to pay the sum demanded by the mortgagee.
Again the Assistant Collector did not pass an order dismissing the petition for any reasons recorded by him. He merely ordered that the case raised complicated questions of fact and law which could not be tried in a summary proceeding. Such an order, in our judgment, does not fall within the terms of s. 9 of Act 2 of 1913.
Even if by the order the petition was dis- missed, not the form of the order, but its substance will determine the application of the period of limitation prescribed by Art. 14 of the Limitation Ac .. An order relegating the mortgagor \o a civil suit for obtaining an order of redemption even if it becomes final does not bar a suit for redemption, for it raises no cloud on the title of the mortgagor arising out_ of the mortgage. Such c
SHEO LAL v. SULTAN & ORS. (Shah, J,) an order is not one which is required to be set aside. An order required to be set aside is one which the officer making it has juris- diction to make and has the effect of barring the claim for relief unless it is set aside. The order of the Assistant Collector merely declared the rights of the plaintiff under the common law: it did not bar the claim to r~lief for redemption in a civil suit, and on that account it was not an order which was required to be set aside. c
In Tulsi Das v. Dia/a Ram('), Tek Chand, J., delivering the principal judgment of the Court dealt with the question which falls to be determined in this case. The learned Judge observed : " …. the suit referred to in s. 12 is to establish the
'erroneous nature of the order'. Now what is the.error committed by the Collector in his order which the mort- gagor must seek to have set right by a declaratory suit ? No civil court can grant a declaration that the Collector's view that the matter was too difficult for summary re-
demption was wrong and compel him to proceed with the summary enquiry. The order of the Collector does not atiect the rights of the parties in any way; it is conclu- sive to this extent only that the petition for summary re- demption has been dismissed and no other petition under
the Act would lie. No suit under s. 12 being necessary or competent, there· was no bar to the mortgagor s1Jing for redemption in the civil courts within the period al- lowed by law in ordinary course."
The same view was expressed in a judgment of the Punjab High Court Dewan Chand v. Raghbir Singh('). The Court, in that case pointed out, in our judgment rightly, that Art. 14 of Sch. I to the Limitation Act does not apply to a suit which does not seek to set aside the order of an officer of the Government. When the .Collectcr decides nothing against the mortgagor and directs that the matter be settled in a civil court, the Collector's decision does not stand in the way of the suit for redemption.
The appeal fails and is dismissed with costs. R.K.P.S. Appeal dismissed. (I) l.L.R. [1944] Lah. l (P.B.) (2) 1.L.R. [1966] l Punj .b 193.