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Smart Summary

Factual and Procedural Background

The dispute concerns an occupancy holding. The appellant, Sheonandan, along with another party, initiated a suit in the revenue Court against the plaintiff for arrears of rent, asserting that the holding had been mortgaged to certain mortgagees who sublet the land to Ram Lagan Singh. Sheonandan claimed that the mortgage had been redeemed, but Ram Lagan Singh remained as a subtenant liable for rent arrears. Ram Lagan Singh contended he held the land as a mortgagee in possession under an old mortgage dated 1920 Sambat. The revenue Court ruled that Ram Lagan Singh failed to prove the mortgage and decreed in favor of Sheonandan for arrears of rent.

Subsequently, Sheonandan and his companion filed another suit in the revenue Court to eject Ram Lagan Singh and another as subtenants. Ram Lagan Singh again claimed to hold as a mortgagee under the old mortgage. The revenue Court referred Ram Lagan Singh to the civil Court to obtain a declaration regarding his status as a mortgagee. Thereafter, Ram Lagan Singh and another plaintiff filed the present suit against Sheonandan seeking a declaration that they held the land as mortgagees.

The Court of first instance dismissed the suit, but the lower appellate Court reversed the decision and decreed the suit. Sheonandan appealed to the higher Court on two grounds: that the matter was res judicata due to the revenue Court’s earlier decision in the rent suit, and that the plaintiffs failed to prove the alleged mortgage.

Legal Issues Presented

  1. Whether the issue of the mortgage and the status of the parties is res judicata by virtue of the earlier revenue Court decision in the rent suit.
  2. Whether the plaintiffs successfully proved the existence and validity of the mortgage under which they claimed to hold the land.

Arguments of the Parties

Appellant's Arguments

  • The point in dispute is res judicata due to the prior decision by the revenue Court in the rent suit.
  • The plaintiffs failed to prove the mortgage they asserted, as the mortgage deed is unregistered and its authenticity is questionable.

Respondents' Arguments

  • The plaintiffs claimed to hold the land as mortgagees under an old mortgage deed dated 1920 Sambat.
  • The lower appellate Court presumed the document to be genuine under Section 90 of the Evidence Act, accepting the handwriting evidence and possession as supportive of the mortgage claim.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Section 90 of the Evidence Act Presumption of genuineness of documents and signatures executed or attested by persons whose handwriting is established. The lower appellate Court applied Section 90 to presume the mortgage deed was genuine and duly executed; however, the higher Court rejected this application because the document was not executed by the mortgagors themselves but by the scribe without proven authority.

Court's Reasoning and Analysis

The Court declined to address the res judicata issue, focusing instead on the plaintiffs' failure to establish the mortgage. The mortgage deed in question was unregistered and entirely handwritten by a single person, Gajadhar Das, including the names of the executants and witnesses. There was no evidence that Gajadhar Das had authority from the alleged mortgagors to sign their names. The alleged mortgagors, witnesses, and the scribe were all deceased, and the plaintiffs could only produce the scribe’s son to testify to the handwriting. The Court found the lower appellate Court's assumption of authority on the part of the scribe to be unjustified.

Section 90 of the Evidence Act was inapplicable to presume authority where the document did not purport to be executed by the mortgagors themselves. The Court noted the peculiarity of the respondents’ claim, as possession consistent with a mortgage for over 52 years should have been provable by government records, yet only 14 to 15 years of possession was admitted by the defendants.

The Court concluded that possession as mortgagees could not be recognized without establishing the existence of a valid mortgage. Since the mortgage deed was not proved to be duly executed or authorized, the plaintiffs could not be declared mortgagees. Accordingly, the Court allowed the appeal, set aside the decree of the lower appellate Court, and restored the decision of the Court of first instance.

Holding and Implications

Appeal allowed.

The Court held that the plaintiffs failed to prove the mortgage deed and, therefore, could not be declared mortgagees of the disputed land. The decree of the lower appellate Court was set aside, and the dismissal by the Court of first instance was restored. The appellant was awarded costs in all Courts. This decision directly affects the parties by denying the mortgagee status to the plaintiffs and does not establish any new legal precedent beyond the application of existing evidentiary principles.

    Sheo Nandan Ahir v. Ram Lagan Singh

    1. This is a defendant's appeal and arises out of the following circumstances: The property in dispute is an occupancy holding. The appellant Sheonandan and one other brought a suit against the plaintiff in the revenue-Court for arrears of rent. Sheonandan's case was that the holding had been mort—gaged to certain mortgagees who had sublet the land to Ram Lagan Singh, that the mortgage had been redeemed, that Earn Lagan Singh remained on as a subtenant and that he was liable for arrears of rent. Ram Lagan's case was that he was not a subtenant but that is held the land as a mortgagee in possession on an old mortgage of 1920 Sambat. The revenue Court went into the matter, held that Ram Lagan had failed to establish any mortgage and gave Sheonandan a decree for arrears of rent. Then Sheonandan and his companion brought another suit in the revenue Court to eject Ram Lagan Singh (and one other) as being a subtenant. The latter again put forward his plea that he held as a mortgagee under this old mortgage. The revenue Court referred Ram Lagan to the civil Court to obtain a declaration as to whether or not he held this land as a mortgagee. Thereupon Ram Lagan Singh and another plaintiff brought the present suit against Sheonandan Ahir, and claimed a declaration that the plaintiffs held the land as a mortgagee.

    2. The Court of first instance dismissed the suit. The lower appellate Court decreed the suit. The defendant Sheonandan comes here on second appeal. Two points were pressed. The first is that the very point in dispute between the parties is res judicata by reason of the decision by the revenue Court in the rent suit. The second point is that the plaintiff have failed to prove the mortgage which they put forward. I do not propose to touch the question of res judicata because in my opinion it is quite clear that the plaintiffs in the present suit have failed to establish any mortgage whatsoever in their favour. The mortgage deed set up by them is dated 1920 Sambat corresponding to February 1864. The document is unregistered.

    3. It is in the handwriting completely from beginning to end of one person. It purports to be in the handwriting of Gajadhar Das. The names of the executant and the names of the witnesses purport to have been written upon the document by the hand of Gajadhar Das. No porstion of the document purports to have been written by the mortgagors. The alleged executants and the alleged attesting witnesses and the scribe are all said to have died. The plaintiffs procuced the son of the scribe to testify to the fact that the whole of the document is in the handwriting of his father. There is not a scrap of evidence to prove that Gajadhar Das had any authority from the alleged mortgagors or the alleged attesting witnesses to sign their names upon the document. The lower appellate Court in the course of its judgment remarks as follows:

    “The scribe has signed for all the executants. It therefore appears that he was authorized by them to do so and the plaintiffs have proved the handwriting of the man who signed for the executants.”

    4. It is a mere assumption on the part of the lower appellate Court that the scribe appears to have been authorized, by the alleged mortgagors to sign their names. The lower appellate Court also purported to apply Section 90 of the Evidence Act, and to presume the document to be genuine. Under S. 90 a Court may presume that the signature and every other part of a document which purports to be in the handwriting of any particular per-son is in that person's handwriting, and in the case of a document executed or attested, that it was duly executed and attested by the persons by whom it purports to be executed and attested. The present document does not purport to be executed by the mortgagors at all. It purports to have been executed by Gajadhar Das for the mortgagors. S. 90 does not allow a Court to presume that Gajadhar Das had any authority from the mortgagors to sign their names upon this document. The respondents' case is somewhat peculiar. If this mort-gage-deed be a true one, then they and their predecessor in-title must have held possession for at least 52 years, and one would have thought that it would be easy to prove their possession by means of the Government record. But apparently they have been unable to prove possession for anything more than 14 or 15 years, and that only by the admission of the opposite party. The lower appellate Court in its judgment says:

    “It has been produced from proper custody, and as I shall show later on, the plaintiffs-mortgagees have been in possession in accordance with this deed.”

    5. Later on what the lower appellate Court says about the plaintiffs' possession is as follows:

    “The possession of the plaintiffs for at least 14 or 15 years has been admitted by the defendants. The oral evidence, coupled with the mortgage deed, shows that the plaintiffs have been in possession as mortgagees.”

    6. It is impossible to hold that the plaintiffs-respondents held possession as mortgagees, unless and until it could be established that a mortgage was ever created. The document under which the plaintiffs claim as mortgagees no doubt exists and purports to have been written and the names of the executants to have been signed thereon by one Gajadhar. No authority from the mortgagers in favour of Gajadhar has been proved. Therefore it is impossible to say that this mortgage deed was executed by or with the consent of the alleged mortgagors. The mortgage not having been established it is impossible to give to the plaintiffs a decree declaring that they hold the land as mortgagees. In my opinion the decision of the Court of first instance was quite correct. I allow this appeal, set aside the decree of the lower appellate Court and restore that of the Court of first instance. The appellant will have his costs in all Courts.

    V.B/R.K

    7. Appeal allowed.

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    Sheo Nandan Ahir v. Ram Lagan Singh
    (Jul 13, 1915)