P NIRATHILINGAM Vs. ANNAYA NADAR

JUDGEMENT

(1.) The effect of institution of a civil suit by the creditor on the proceeding initiated on the application filed by the debtor under the Tamil Nadu Debt Relief Act, 1980 (Act XIII of 1980) (for short 'the Act'), is the question that falls for determination in this case.

(2.) A learned single Judge of the High Court of Madras held that on filing of the civil suit the Special Tahsildar who was the competent authority under the Act ceased to have jurisdiction in the matter and the decision of the civil Court would be binding on the parties. The judgment was confirmed by the Division Bench. Therefore, the debtor has filed this appeal assailing the judgment in Writ Appeal No. 971/96 confirming the judgment of the learned single Judge in Writ Petition No. 3409/1983.

(3.) The short resume of the facts relevant for appreciating the case may be stated thus: The appellant herein mortgaged his land measuring about 3.07 acres for a sum of Rs. 10,000/- in favour of one Ramummal wife of Madasami Raja on 28-2-1965. The said mortgage was assigned in favour of the respondent No. 1 for consideration on 12-6-1974. The appellant filed the application dated 11-9-1980 before the Special Tahsildar (Debt Relief), Sivakasi, seeking relief under the provisions of the Act on the ground that the annual household income during 1979 was Rs. 3,600/- and the immovable properties owned by him were worth Rs. 22,840/-. The assignee-creditor, respondent No. 1 herein, opposed the application. When the application was pending before the Special Tahsildar the assignee creditor filed O.S. No. 123/81 on 25-4-1981 in the Sub-Court, Ramanathapuram, which was re-numbered as O.S. No. 150/81 on the file of Sub-Court, Srivilliputhur.