RAMDEVI Vs. STATE OF M P

JUDGEMENT

(1.) THIS First Appeal is directed against the dismissal of late plaintiffs suit for declaration and permanent injunction by the IVth Additional District judge, Gwalior, under latter's Judgment and decree dated 18-8-1980. The following points arise for decision thereunder :-

(2.) THE facts, relevant to the disposal of the present appeal, which are not in dispute, are as follows :-Under the "low Income Group Housing Scheme" of the Government of India, a sum of Rs. 8, (XX)/- was advanced as loan to late Narayan Singh for building a house in azad Nagar locality of Morar, a suburb of Gwalior, in pursuance Of the agreement dated 27-3-1956 (Ex. P. 1), entered into between the Collector Gwalior, on behalf of the raj-Pramukh and borrower Narayan Singh. The loan was advanced in three approximately equal. instalments, which were paid to the borrower between 24-3-1956 to 20-2-1957. Under the terms of the agreement, the borrower was liable to pay interest at the rate of 5',a% per annum, commencing from the date of payment of the first instalment of the loan by the State Government, and was repayable in thirty annual equated instalments, the first instalment being due twelve months after the date of first loan advance. As a security for the repayment of the loan and the interest, the hoasing site, alongwith the house to be constructed thereon, were to remain charged by way of a mortgage and the remedies in the case of a simple mortgage were to be available to the creditor-State Government, without intervention of the court. Other terms of the agreement can be readily collected from a reading of the agreement dated 22-3-1956 (E^x. P. l), but in this appeal, we are primarily concerned with Column No. 9 thereof, which reads as follows :-

(3.) IT is also not in dispute that there were defaults, either partly or fully, in the payment of some initial instalments and, thereafter, the repayments have been made in larger amounts, so that by 28-5-1976 the appellant had paid, in all, Rs. 11,087. 73 Paise towards the repayment of the loan, including the interest after which, according to the appellant, nothing remained due to be paid. On the other hand, in accordance with the calculations made on behalf of the State Government by the concerning Department, a sum of Rs. 9,150/- inclusive of penal interest was still due to be recovered from the appellant. Therefore, under the terms of the loan agreement, the house, constructed by the appellant, was sought to be put to auction sale on. 21/22-12-1976 for the recovery of this amount. On 21-12-1976, the appellant brought the present suit in the lower Court, seeking the declaration that no amount was due as against him and also seeking a permanent injunction to restrain the respondent-defendant from putting the house to sale. The Civil Suit having been dismissed by the trial Court, the appellant-plaintiff has filed the present appeal against the dismissal.