RAJKUMARI KAUSHALYA DEVI Vs. BAWA PRITAM SINGH

JUDGEMENT

(1.) , J. : This is an appeal by special leave against the judgment of the Punjab High Court The brief facts necessary for present purposes are these. The appellant has executed two usufructuary mortgages with respect to two properties situate in Ferozepore city in favour of the respondents in 1946. She also took both properties on lease on the same date. An application was filed by the respondents under S. 13 of the Displaced Persons (Debts Adjustment) Act, No. LXX of 1951. (hereinafter called the Act) for recovery of the principal sum due as well as the rent which was said to be in arrears. The application was resisted by the appellant on various grounds, one of which was that no such application lay as the liability was not a debt under the Act. The tribunal negatived the contention of the appellant and passed a preliminary decree for sale. Six months' time was allowed to the appellant to pay the decretal amount, failing which the respondents were at liberty to get to final decree prepared and bring the properties to sale. The appellant went in appeal to the High Court but the appeal was dismissed. Then there was a Letters Patent Appeal, which was also dismissed. The appellant then applied for and was granted special leave by this Court, and that is how the matter has come up before us.

(2.) THE only point for our consideration is whether the liability created under a mortgage is a debt within the meaning of S. 2 (6) of the Act. THE relevant part of that provision runs as follows :

(3.) IT is next urged that when the legislature excepted the property in India which was encumbered from being dealt with under sub-cl. (b) so far as displaced debtors were concerned, there is no reason why it should allow the displaced creditors to proceed under the Act with respect to mortgage debts. This argument, however, overlooks the provision in sub-cl. (a) under which a displaced debtor can take the benefit of the Act, once it is held that the words "pecuniary liability" also include mortgage debt. As we have said before sub-cl. (b) was dealing with a special situation which was worked out in S. 16 of the Act and the general right of a displaced debtor to take advantage of the Act is to be found in sub-cl. (a) and that sub-clause will cover a mortgage debt as it is a pecuniary liability.