FEDERAL BANK LTD. Vs. K. MEENAKSHY KANIKAN

JUDGEMENT

(1.) The question which arises for consideration is whether the petitioner, a Scheduled Bank, as defined in the Reserve Bank of India Act, 1934, is "a Corporation" or "any other financial agency not being a private agency" within the meaning of clause (c) of S.3 of the Kerala Scheduled Tribe (Restriction on Transfer of Lands and Restoration of Alienated Lands) Act, 1975 (hereinafter referred to as the Act). Clause (c) of S.3 of the Act lists the entities to whom the Act docs not apply. The question arises out of the facts stated in Para.2 and 3 below.

(2.) The petitioner instituted suit No. 280/76, for recovery of Rs. 71,836.66 secured through mortgage of lands of the respondents. A final decree was made. In E. P. No. 182 of 1979, the property of the respondents was brought to sale. However, the respondents filed E.A. No. 414 of 1981 for postponement of the sale under R.83 of O.21 of the Code of Civil Procedure, which was dismissed. The respondents challenged the dismissal of E.A. No. 414 of.1981, in C.R.P. No. 1832 of 1981 B. While dismissing the C.R.P., this Court granted to the respondents six months' time, running from 6th November 1985, for the purpose of depositing the decretal debt and postponed the sale till then. The respondents did not urge in E.A. No. 414 of 1981 or in C.R.P. No. 1832 of 1981 that they were members of a Scheduled Tribe and that their properties were exempt from sale by virtue of the Act.

(3.) The respondents filed one more execution application E.A. No. 181/87. The respondents are admittedly members of a Scheduled Tribe. They claimed the benefits under the Act. In reply, the petitioner relied upon clause (c) of S.3 of the Act which takes away the benefit of the Act in certain cases. In his order dated 11th October 1990 in E.A. No. 181/87, which is impugned in this petition, the learned I Additional Sub Judge held that the petitioner was not "any other financial agency not being a private agency" and that therefore S.3 (c) of the Act did not assist them. Since the petitioner was out of the statutory exemption, the Act which makes the mortgage of lands by members of Scheduled Tribes to persons who are not members of such Tribes invalid, applies to them. Therefore the Trial Court concluded that the transfer of property by the respondents in favour of the petitioner is invalid.