EAPEN THOMASversusSYED MOHAMMED KUNJU MOHAMMED KUNJU
- Citation
- 1992 INSC 85
- Decided
- 13 March 1992
- Disposal
- Dismissed
Holding
The sale under Section 20 of the Kerala Agriculturists Debt Relief Act is indivisible; possession of any portion of the property suffices to maintain a debt‑relief petition, and the purchaser is not entitled to cost of improvements or mesne profits.
Summary
In execution of a money decree, three parcels of agricultural land belonging to the judgment‑debtor were sold at a court‑sale, the decree‑holder purchasing the property. The debtor retained possession of two parcels while the purchaser occupied the third. The debtor filed a petition under Section 20 of the Kerala Agriculturists Debt Relief Act, 1970 seeking restoration of the entire property, arguing that possession of any part sufficed for eligibility. The purchaser contested, claiming the Act did not apply unless the debtor possessed the whole property and that he was entitled to cost of improvements under s.20(5) and mesne profits. The Supreme Court held that the sale contemplated by Section 20 is indivisible and that possession of any portion of the sold land makes the debtor eligible to maintain a debt‑relief petition; consequently, the purchaser was not entitled to compensation for improvements or mesne profits. The appeal was dismissed, and the property was ordered to be returned to the debtor without any cost award against him.
Issues considered
- The applicability of Section 20 of the Kerala Agriculturists Debt Relief Act, 1970 when the judgment‑debtor is in possession of only part of the property sold.
- Whether the purchaser is entitled to cost of improvements under sub‑section 5 of Section 20 and to mesne profits.
- The interpretation of the ‘sale’ under the Act – whether it is indivisible or can be set aside partially.
Legislation cited
- Kerala Agriculturists Debt Relief Act, 1970s. 20, s. 20(5)
Subjects
Judgment
EAPEN THOMAS A
v.
SYED MOHAMMED KUNJU MOHAMMED KUNJU
MARCH 13, 1992
[MADAN MOHAN PUNCHHI AND K. JAYACHANDRA B
REDDY, JJ.]
Kera/a Agriculturists Debt Relief Act, 1970-Section 2()-{)ebt Relief
Petition under-Requirement for maintainability-Object of legislation-Inter-
pretation beneficial to indebted peasentry to be accepted-Cost of improve- c
ments and mesne profits whether payable.
In execution of a money decree, a court-sale took place. Three pieces
of agricultural land of the judgment-debtor-respondent were put to auc-
tion. The decree-holder-appellant purchased the same.
D
Item Nos.1 and 2 of the auctioned property remained in possession
of the respondent, but item no. 3 went into the possession of the appellant.
The respondent approached the executing court filing a petition u/s.
20 of the Kerala Agriculturists Act, 1970, for retrieval of the entire proper-
ty on the basis that he had continued to be in possession of a part of it. E
The appellant contested the Debt Relief Petition contending that as
the respondent was not in possession of the entire property, Section 20 of
the Act was inapplicable and that in case it was then before possession of
property, item no. 3 could be asked to be given, cost of improvements had
F
to be paid under sub-section (5) of Section 20.
All the courts below decided against the appellant.
This appeal by special leave was confined to a claim to property Item
No. 3 of the Debt Relief Petition. G
Dismissing the appeal of the decree-holder, this Court,
HELD : 1.01. The Kerala Agriculturists Debt Relief Act is a local
-~-
legislation and had come to give some succour to the indebted agricul-
turists. The conditions which led to the passing of such legislation H
307
308 SUPREME COURT REPORTS. ' [1992] 2 S.C.R.
A presumably were well known to the Kerala State Legislature and the pulse
of it was felt by the High Court of Kerala in its interpretive role~ [3090)
1.02. The sale concei"ed of under Section 20 is one and indivisible
and when it is required to be set aside only a portion of the property sold
need be in possession of the judgment-debtor to make him eligible to
B maintain the Debt Relief Petition. [309E]
1.03. An interpretation, beneficial as it is to the indebted peasentry
is approved. The courts below as well as the High Court let the respondent
maintain his Debt Relief Petition. Such a course is concurred with. Sequal-
ly property item no. 3 has also to be retrieved from the hands of the
c appellant. [309F]
1.04. In the interests of justice, neither is the appellant held entitled r
to any cost of improvements nor would he be liable for payment of any
mesne profits for the preceding three years. [310A-B]
D Syed Mohammed Beevi Amma v. Mathai Devasia, 1960 KLT 163;
Ramasuppa Iyer v. Daveed Christudas, 1963 KLT 886, approved.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2578 of
1980.
E
From the Judgment and Order dated 9th June, 1980 of the High
Court of Kerala at Ernaculam in C.R.P. No. 3168 of 19i8.
S. Padmanabhan and E.M.S. Anam for the Appellant.
F K.M.K. Nair for the Respondent.
The Order of the Court was delivered :
This appeal by special leave is confined to a claim to property Item
No. 3 of the Debt Relief Petition, which succeeded in the courts below.
G In execution of a money decree a court-sale took place in which three
pieces of agricultural land of the judgment-debtor, respondent herein, was·
put to auction and purchased by the decree-holder, the appellant herein.
On the facts found by the courts below item Nos. 1 and 2 ofihe auctioned
property remained in possession .of the respondent, but item No. 3 went
H into the possession of the appellant. The respondent taking the aid of
EAPEN THOMAS v. MOHD. KUNJU 309
Section 20 of the Kerala Agriculturists Debt Relief Act, 1970, approached A
the executing court for retrieval of the entire property on the basis that he
had continued to be in possession of atleast a part of it, i.e., two survey
numbers as itemized. The Debt Relief Petition was contested by the
appellant herein on the ground that since the judgment-debtor-respondent
was not. in possession of the entire property, Section 20 of the aforesaid
Act was inapplicable and in case it was then before possession of property
B
item No. 3 could be asked to be given cost of improvements had to be paid
under sub-section (5) of Section 20, which the appellant assessed at Rs.
2,000. All the courts below inclusive of the High Court have gone against
the applellant and the dispute herein, as said before, is confined to proper-
ty item No. 3. c
The above-named Act is a local legislation and had come to give
some succour to the indebted agriculturists. The conditions which led to
the passing of such legislation presumably were well known to the Kerala
State Legislature and the pulse of it was felt by the High Court of Kerala D
in its interpretive role. There are two decisions of that Court in support of
the claim of the respondent. The first one is by a Division Bench, i.e., 1960
KLT 163 titled Syed Mohammed Beevi Amma v. Mathai Devasia followed
by a single bench in 1963 KLT 886 titled Ramasuppa Iyer v. Daveed
Christudas (even though passed o~ the earlier statute) wherein it has been
held that the sale conceived of under Section 20 is one and indivisible and E
- >t-- when it is required to be set aside only a portion of the property sold need
be in possession of the judgment-debtor to make him eligible to maintain
the Debt R~lief Petition. These two decisions have governed the field
without any discordant note in that State. We will rather frown on setting
aside such an interpretation, beneficial as it is to the indebted peasentry. F
The courts below as well as the High Court followed these decisions in
letting the respondent maintain his Debt Relief Petition. We concur with
such a course. Sequally property item No. 3 has also to be retrieved from
the hands of the appellant. We order accordingly maint;iining the judgment
and orders of the courts below.
G
The appellant laid a claim of Rs. 2,000 for improvements wayback in
the year 1970. A period of over 20 years has passed by. It would be fair to
presume that the appellant has derived the fruits of the improvements in
these past years. It would also be fair correspondingly to assume that on
the maintenance of the orders of the courts below he would be liable to H
310 SUPREME COURT REPORTS [1992] 2 S.C.R.
A pay mesne profits for the preceding three years on having remained in
possession of the property item No. 3. We square these two claims in the
~-
interests of justice and close the matter. Neither is the appellant held
entitled to any cost of improvements nor would he be liable for payment
of any mesne profits for the preceding three years. There would cor-
respondingly be a duty on the respondent.
B
For the aforesaid reasons this appeal fails and is hereby dismissed
but added with the above directions and without any order as to costs.
V.P.R. Appeal dismissed.
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