PULIGORU SUBBARAMA REDDI (DEAD) Vs. PALAMKOTA KRISHNIAH CHETTI

JUDGEMENT

(1.) This second appeal arises out of a suit to erfforce a mortgage dated 10 January, 1924, executed by one Ganji Guruva Reddi in favour of one Dhupam Gangakka. The said mortgage has now become vested in the plaintiff by two successive transfers. The interest of the mortgagor is vested in defendants 1 and 2 by purchase. The main question for decision in this appeal is whether the first defendant is entitled to have priority over the mortgage sued on in respect of two prior mortgage debts discharged by him, namely, one in favour of Kathi Chandra Reddi and another in favour of Dhupam Narayana Reddi. The learned District Munsif decided the question in favour of the first defendant, but the learned Subordinate Judge reversed his decision. It is against this decision that the first defendant has preferred this appeal.

(2.) The relevant facts are not in dispute. The owner of the suit property which formed the subject-matter of the several mortgages in question was one Ganji Guruva Reddi who effected the suit mortgage in favour of Dhupam Gangakka who transferred it in favour of her son Ramiah, who again transferred it in favour of the plaintiff. On the 17 September, 1925, that is, subsequent to the date of the suit mortgage, the said Guruva Reddi borrowed a sum of Rs. 1,200 from the first defendant partly by selling a portion of the mortgaged property and partly by mortgaging a portion of the mortgaged property to him. The transactions are evidenced by two documents, Exs. E and F. Ex. E purports to be a deed of sale for Rs. 800 and the purpose of effecting the sale is, thus stated in the deed: Kathi Chandra Reddi having died, his heir and brother Venkata Reddi, the said Chandra Reddi's sons (1) minor Bhathi Reddi and (2) Yanadi Reddi, being minors, by guardian and junior paternal uncle the said Venkata Reddi, obtained a decree against me in O.S. No. 173 of 1924 on the file of the District Munsif's Court, Tirupati and executed the decree in E.P No. 374 of 1925. For paying the said decree amount and costs, etc., and for paying the mortgage-debts of Dhupam Gangakka and others, I have received from you this day Rs. 800 excluding the amount received under the hypothecation deed executed in your favour separately this day, and for this amount, I have this day sold to you the house and site, etc.

(3.) Ex. F purports to be a mortgage for Rs. 400 and the purpose for which the mortgage was executed is thus stated: Kathi Chandra Reddi, having died, his heir and brother Venkata Reddi, and his minor sons, Bhathi Reddi and Yanadi Reddi, by guardian and junior paternal uncle the said Venkata Reddi brought O.S. No 173 of 1924 on the file of the District Munsif's Court, Tirupati, obtained a decree and is executing the decree in E.P. No. 374 of 1925. For paying the said decree amount, etc., and for paying the mortgage amount of Dhupam Gangakka and others, I have received this day in cash Rs. 400 excluding the amount received by my selling the house, etc., in your favour. I have become indebted to that extent.