MAHENDRAKUMAR JAMNALALSA Vs. MOJILALSA MUKUNDSA

JUDGEMENT

(1.) THIS is a Letters Patent appeal against the order of Hemeon J. dated 19th December 1944 in Miscellaneous Second Appeal No. 87 of 1943.

(2.) MUKUNDSA and others applied to the Debt Conciliation Board for conciliation of their debts including the debts due to the creditors Jamnalalsa and Dhannalalsa under decrees of civil Courts. A settlement was reached before the Board in which it was agreed inter alia that in satisfaction of the debt due to Jamnalalsa half of the debtors' house should be transferred to him and the other half should be transferred in satisfaction of the debt due to Dhannalalsa. In pursuance of this settlement dated 14th July 1938, the debtors executed two sale deeds on 27th July 1938, one in favour of each of the aforesaid two creditors. As a term of this settlement incorporated in the sale deeds, the debtors averred that all municipal taxes due from the house had been paid off by them. They also further agreed that they would be liable to the vendees in case anything by way of arrears of taxes were realised from the vendees.

(3.) THE execution of this decree was objected to by the debtors on the ground that under Section 15(3), Debt Conciliation Act the decree could not be executed until all amounts recorded as payable under the agreement had been paid or such agreement had ceased to subsist. This objection was overruled by the executing Court mainly on the ground that the liability to pay taxes accrued anterior to the registration of the agreement dated 11th July 1938, i.e. on the date on which those taxes became payable to the municipal committee. This order was set aside by the appellate Court, i.e. the Court of the Additional District Judge, Nimar, holding that the civil suit filed by Jamnalalsa's legal representatives was in respect of a debt which as between the parties to the suit was incurred after the registration of the agreement, dated 14th July 1938, i.e. either on 1st March 1940 when the taxes were actually realised from the vendee Jamnalalsa, or on 20th April 1942 when the decree in respect thereof was passed in favour of his legal representatives. In the Miscellaneous Second Appeal No. 87 of 1943 which was heard and disposed of by Hemeon J. the learned Judge confirmed the order of the Additional District Judge, Khandwa, and dismissed the appeal. According to the learned Judge it was only when the municipal committee realised the arrears of taxes from Jamnalalsa on 1st March 1940 (that is long after the registration of the agreement before the Debt Conciliation Board) that the debtors incurred the debt payable to Jamnalalsa or his legal representatives, and the decree obtained by Jamnalalsa's legal representatives for the recovery of a liability thus incurred after the date of the registered agreement fell within Section 15(3), Debt Conciliation Act and consequently it could not in law be recovered until all amounts payable' under the agreement had been paid or the agreement had ceased to subsist.