CHATRAPPA TIPPANNA Vs. DASTGIRSAHEB MAHAMADSAHEB

JUDGEMENT

(1.) This is an application by certain debtors who were the applicants in a debt adjustment application No. B-154 of 1945 before the Chairman of the Debt Adjustment Board at Muddebihal. It appears that between the applicants and the creditors there were certain transactions and the dispute with respect to those transactions resulted in an award decree dated October 16, 1931. The terms of the award decree were as follows:

(2.) The applicants-debtors contended that they could not pay the amount as ordered and, therefore, they voluntarily surrendered the land to the creditors at the expiry of two years with an oral agreement that the creditors should enjoy possession in lieu of interest and satisfaction of the principal. Nearly twelve years after that, i.e., on August 15, 1945, the applicants-debtors made the debt adjustment application in question contending that the relationship of debtor and creditor continued to subsist in spite of the award decree, and in support of Chatrappa Tippanna and Ors. vs. Dastgirsaheb Mahamadsaheb and Anr. (21.02.1951 -... Page 2 of 9 that allegation, relied upon the oral agreement which I have just referred to. The Chairman of the Debt Adjustment Board raised preliminary issues as required by Section 35 of the Bombay Agricultural Debtors' Relief Art, 1939, corresponding to Section 17 (1) of the Bombay Agricultural Debtors' Relief Act, 1947. The issues raided by him were : "(1) Whether the debt due to creditor No. 1 from the debtors under the decree in civil suit No. 740 of 1931 still subsists ? (2) Are the applicants debtors under the Act? (3) Whether the total amount of debts claimed as being due from them does not exceed Rs. 15,000 on May 1, 1945?"

(3.) It appears that the Chairman recorded only the statement of one of the debtors and relying on the statement and on the fact that the debtors had voluntarily delivered possession of the land, the value of which was nearly double the amount of debt due to creditor No. 1, he came to the conclusion that there must have been an oral agreement as suggested by the debtors. He, therefore, gave a decision on those preliminary issues, holding that the applicants were debtors under the Act and that the total amount of debts claimed as being due from them did not exceed Rs. 15,000. This finding was given on May 26, 1946. The matter stood at that stage for nearly two years. The matter was thereafter taken before the Joint Civil Judge, Junior Division, Muddebihal, under the Bombay Agricultural Debtors' Relief Act 1947, by which the Debt Adjustment Boards were abolished and the matters were directed to be proceeded with before the Courts. The learned Judge decided the other issues between the parties and ultimately made an award, holding that Rs. 550- 12-0 were due to the creditors from the debtors. The debtors were ordered to pay the sum by instalments. This award was given on April 12, 1949.