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Singh Ram through legal representatives v. Sheo Ram

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 5198 of 2008)Decided 21 Aug 2014
Civil Appeal No. 5198 of 2008
Justice T.S. Thakur · Justice C. Nagappan · Justice Adarsh Kumar Goel

Background

Land had been mortgaged in 1903 for Rs. 80, with the mortgagee enjoying possession and profits and no fixed redemption period. The mortgagee's successors sought a declaration of ownership because many decades had passed without redemption. The connected appeals required clarification of conflicting decisions about when limitation begins for recovery by a usufructuary mortgagor.

Decision Breakdown

The three-judge Bench dismissed the appeals and affirmed the Punjab and Haryana High Court's view. The special right under Section 62 to recover possession arises when the mortgage money is paid through rents and profits or through the required combination of profits and payment or deposit. Until that point, limitation under Article 61 does not begin merely because the mortgage was created long ago. The mortgagee cannot become owner simply through expiry of thirty years from execution. The Court overruled the contrary Himachal Pradesh view and distinguished mortgages in which the relevant usufructuary features were absent.

Lesson Learnt

Long possession as a usufructuary mortgagee does not automatically turn the lender into owner. The right to recover the property and its limitation period depend on discharge of the mortgage in the statutory manner.

Official source (sci.gov.in)View Judgment (PDF)

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