JAGO Vs. NARAYAN

JUDGEMENT

(1.) . 1. This is a second appeal by defendants 1 and 2 against the decree of the lower appellate Court which on reversing the decree of the trial Court granted to the plaintiff-respondent the relief prayed for.

(2.) THE relevant facts are these. In Civil Suit No. 241 of 1933, the plaintiff obtained on 44-1934 a money decree against defendants 1 and 2 (appellants). Only a day before this decree was passed i.e. on 3.4-1934, the appellants mortgaged their entire attachable property in favour of their relative, Laxman (respondent 2). On 6-12-1935; the appellants applied to the Debt Conciliation Board for conciliation of their debts and in thatapplication besides the plaintiff they showed themselves indebted to Laxman for Rs. 600-0-0 due on mortgage and to one Vithoba for a petty amount of Rs. 10-0-0. Laxman did not comply with a notice-under Section 8(1), Debt Conciliation Act, nor was present on 7-10-1936, the date of hearing before the Board and his debt stood discharged. After some hearing on 4-6-1937, the Board issued a certificate under Section 15 of the Act against the plaintiff and passed an order embodying the settlement of debts due to. Laxman and Vithoba. Laxman's debt, i.e. Rs. 600-0-0 due on mortgage, was settled at Rs. 200-0-0 and was made payable in twenty years by an annual instalment of Rs. 10-0-0 and Vithoba's debt was made payable in two instalments at Rs. 5-0-0 each per year. An agreement as required by Section 12 was duly executed and registered.

(3.) ON 28-4-1942, the plaintiff filed a suit from which this second appeal arises and asked the following relief: That it be declared that the proceedings, Order dated 4-6-1937, agreement effected and registered and the certificate issued to the plaintiff in respect of his aforesaid decretal debt are null and void on account of fraud stated above and the plaintiff was entitled to execute his aforesaid decree against the defendants.