BASMATI DEVI versus CHAMROO SAO AND ORS.

BASMATI DEVI versus CHAMROO SAO AND ORS.

Section 90 of the Trusts Act applies even if the mortgagor also defaulted, because the mortgagee's position and default contributed directly to bringing about the sale and the mortgagee gained an advantage by purchasing the property. Thus, the right of redemption survives and the purchase enures for the benefit of the mortgagor.

Parties
Appellant: Basmati Devi; Respondent: Chamroo Sao; Respondent: Besolal
Jurisdiction
India
Judgment Date
03 April 1964
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Redemption of Mortgage, Court Sale of Mortgaged Property, Application of Section 90 Trusts Act, Liability for Rent
Property Law Equity Redemption of Mortgage Court Sale of Mortgaged Property Application of Section 90 Trusts Act Liability for Rent

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Parties

Basmati Devi

Appellant

Chamroo Sao

Respondent

Besolal

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the right of redemption survives when mortgaged land is sold in execution due to default by mortgagor and mortgagee and purchase by mortgagees
  2. 2 Whether section 90 of the Indian Trusts Act applies when both mortgagor and mortgagee default
  3. 3 Whether purchase at court sale by mortgagees is for the benefit of mortgagor

Ratio Decidendi

Section 90 of the Trusts Act applies even if the mortgagor also defaulted, because the mortgagee's position and default contributed directly to bringing about the sale and the mortgagee gained an advantage by purchasing the property. Thus, the right of redemption survives and the purchase enures for the benefit of the mortgagor.

Court Disposition

Appeal allowed

Orders

  • Judgment and decree of High Court set aside
  • Decree by Additional District Judge, Patna restored