RAMASWAMI Vs. C S VENKITASUBRAMANIA IYER

JUDGEMENT

(1.) THE only question that arises for consideration in this appeal is whether the amount claimed as mortgage amount due is liable to be scaled down under Sec.8 of the Tamil Nadu Agriculturists Relief Act, IV of 1938. This question has been answered by the trial court in the negative.

(2.) THE suit properties were sold by the plaintiff to the defendants 1 and 2 and their father Appichi Gounder for a sum of Rs.40,000. A sum of Rs.20,000 was paid in cash and for the remaining Rs.20,000 a mortgage deed mortgaging the same property was executed as per which the amount shall be paid with interest at the rate of 15% per annum within a period of one year. Alleging that the mortgage amount is due the suit has been filed. Appichi Gounder died and his wife has been impleaded as the third defendant on the allegation that she is also liable to pay the mortgage amount from out of the properties left by Appichi Gounder.

(3.) THE trial court held that it is true that an amount of Rs.3,000 has been paid by the defendants towards interest and therefore it has to be given credit to. As regards the other contentions raised by the defendants the trial court rejected them. As regards the contention raised by the defendants that the mortgage amount is liable to be scaled down under Act 4 of 1938 as amended by Act 8 of 1973 the trial court held that the mortgage has been executed as security for the unpaid balance purchase money and therefore under Sec.55 (4)(b) of the Transfer of Property Act, the plaintiff has a charge over the suit property and under Sec.10(2)(ii) such a liability is excepted from scaling down and as such the defendants will have no remedy under Act 4 of 1938. In the result the trial court passed a preliminary decree for the suit amount less Rs3,000.