VANKAYALA SUBBARAYUDU Vs. KOLLURI VENKATARATNAM

JUDGEMENT

(1.) The only point raised and argued in this Second Appeal is one of some difficulty, but after carefully considering the point and the arguments advanced by the learned gentlemen on both sides I have come to the conclusion ultimately without any hesitation that the appeal should be dismissed.

(2.) The 4 defendant is the appellant in this Court. The plaintiff instituted the action from which this appeal has arisen as mortgagee for an ordinary mortgage decree. Defendants 1 to 3 did not defend the suit and allowed the case to proceed ex parte. The defence that was set up by the 4 defendant was that Item No. 3 in the plaint, with which alone we are concerned in this Second Appeal, was part of an estate governed by the Estates Land Act and that for the arrears of rent due in respect thereof the landholder had obtained a decree in a Revenue Court, had it transferred to a Civil Court and brought the holding for sale and that he (the 4th defendant) became the purchaser. His contention is that on such sale according to the true construction of the various sections in the Estates Land Act the purchase by him has been free of the encumbrance created by the mortgage in favour of the plaintiff. Both the lower Courts found against the 4 defendant-appellant on this contention and gave a decree to the plaintiff and hence this Second Appeal by him.

(3.) Mr. Lakshmanna, the learned vakil for the appellant, has argued strenuously before us that, according to the proper construction of the various sections, to which I shall presently advert, in the Estates Land Act, there could be no difference with regard to the effect between sales held by Revenue Courts and sales held by Civil Courts. The material sections are these. Section 5 is the section which creates a charge in favour of the landholder for the rent payable in respect of the holding. Under Section 77, the landholder is authorised for arrears of rent to institute a suit or distrain certain kinds of property, such as moveable property. Section 111 and the following sections under the heading of Sales of holding enable the landholder by following the prescribed procedure to effect a sale of the holding for the arrears of rent. Section 125 prescribes that, when a holding is sold for arrears due in respect thereof, the sale shall be free of all encumbrances, and Section 132 extends the provisions of Chapter VI of the Act as far as may be to execution by Revenue Courts. Section 201 in the Act prescribes that a decree or order for payment of money passed by a Revenue Court may be transferred only to a Civil Court for execution. These are the only relevant provisions which have to be considered with reference to the argument advanced.