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Phul Chand v. Chhote Lal
Concise Analytical Summary of the Opinion
Factual and Procedural Background
This suit was for sale under a mortgage dated 3 September 1873 executed by Mohan Singh for Rs. 4,300 in favour of Mansukh Das and his son Dungar Mal. After the mortgagees' deaths, on 8 November 1891 the widow of Dungar Mal, three sons of Mansukh Das and the widow of another son assigned their rights under the mortgage to the first four plaintiffs for an alleged consideration of Rs. 10,000. Rs. 600 was paid before the registering officer and Rs. 1,858-9-3 was retained to discharge a decree held by Rao Balwant Singh against two of the assignors; that decree remained unsatisfied and was purchased by Kishan Lal (the fifth plaintiff), who put it into execution and caused the two-fifths share of Baldeo Das and Dungar Mal's widow in the mortgage to be sold and purchased that share himself.
The mortgaged property had been sold in execution of a decree obtained on a subsequent mortgage and bought by Than Singh and Nathu Ram, now represented by the appellant Phul Chand. The defendants were the mortgagor's legal representatives and subsequent transferees. The defendants contended that the mortgage had been discharged (supported by a mortgage bond bearing endorsements), that consideration was unpaid, that the purchase was to carry on litigation, and therefore recovery was barred or limited.
The Subordinate Court held the alleged payments were not proved, found the endorsements and the bond's return to mortgagors not genuine, found the 8 November 1891 assignment was in substance a purchase by Kishan Lal with only Rs. 600 paid by the first four plaintiffs (who were benami), and made a decree awarding two-fifths of the mortgage money (with interest) and Rs. 600 with incidental expenses and interest. Both sides appealed; Phul Chand (defendant) advanced contentions about discharge and the legal effect of Kishan Lal's purchase and decree-purchase; the plaintiffs contested those points and asserted full payment of consideration and inapplicability of Section 135 of Act No. IV of 1882.
Legal Issues Presented
- Whether the mortgage had been discharged by repayment as shown by the mortgage bond bearing endorsements of payment.
- Whether Kishan Lal was the real purchaser under the sale deed of 8 November 1891 (so that the first four plaintiffs were benami) and, if so, whether his purchase of Rao Balwant Singh's decree and subsequent auction sale extinguished or prevented transfer of title by auction.
- Whether Section 135 of Act No. IV of 1882 applies to limit the assignee's recovery to the price actually paid (with interest and incidental expenses), and if so, whether a debtor must pay the assignee's price before judgment in order to claim the benefit of Section 135.
Arguments of the Parties
Appellant (represented by Phul Chand) — principal contentions
- The mortgage had been discharged by payments evidenced by endorsements on the mortgage bond; those endorsements show full payment in 1889.
- Kishan Lal, being the real purchaser under the 8 November 1891 assignment, stepped into the place of the judgment-debtors to Rao Balwant Singh's decree; by purchasing the decree from Rao Balwant Singh the decree became extinct or incapable of execution and therefore the subsequent auction purchase conferred no title on Kishan Lal beyond what he had already acquired; accordingly Kishan Lal should be limited to recovering the price he paid for the assignment.
Plaintiffs' contentions (as represented in the opinion)
- There is nothing to show Kishan Lal was the real purchaser under the 8 November 1891 sale; the full consideration was paid for that sale.
- Section 135 of Act No. IV of 1882 does not apply to a case like this (i.e., they contest the application of the statutory limitation on recovery by an assignee of an actionable claim).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Rani v. Ajudhia Prasad, I.L.R. 16 All. 315 | Chapter VIII of Act No. IV of 1882 applies to a debt secured by a mortgage. | The court accepts this ruling and treats a mortgage-debt which has become actionable as falling under Chapter VIII (and thereby within the scope of Section 135). |
| Muchiram Barik v. Ishan Chunder Chuakerbutti, I.L.R. 21 Cal. 568 (Full Bench) | Held that a debtor cannot claim the benefit of Section 135 unless he pays the assignee's price before judgment. | The court notes this as an authority in favour of the respondents but does not follow it; the court rejects the requirement that payment must be made before judgment. |
| Jani Begam v. Jahangir Khan, I.L.R. 9 All. 476 | Holds that a debtor may claim benefit under Section 135 without being required to pay before judgment. | The court follows this authority as supporting its interpretation that Section 135 does not require payment prior to judgment to secure the section's benefit. |
| Hakim-un-nissa v. Deonarain, I.L.R. 13 All. 103 | Same principle as Jani Begam: Section 135 can be invoked without pre-judgment payment. | The court follows this authority in rejecting the Calcutta Full Bench view and in construing Section 135 to permit a debtor to require proof of the price and to claim limitation of recovery accordingly. |
| Nilakanta v. Krishnasami, I.L.R. 13 Mad. 225 (Full Bench) | Full Bench view supporting the position that Section 135 need not be defeated by requiring pre-judgment payment; interprets Clause (d) and the section's scope. | The court expressly agrees with the observations in this Full Bench case and adopts the construction that Clause (d) deals with claims already affirmed by judgment and that the section's object is to prevent trafficking in litigation. |
Court's Reasoning and Analysis
The court proceeded in distinct analytical steps, each tied to facts and legal principle stated in the opinion.
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On the question of discharge by repayment, the court accepted the Subordinate Judge's factual findings that, despite the mortgage deed being produced by the mortgagor's heirs and bearing endorsements, the endorsements were not genuine and the mortgage had not been repaid. The court relied on several factual indicators:
- It was highly improbable that impecunious mortgagors who could not meet revenue and had to sell movable property and farm out zamindari shares would have paid large sums (Rs. 7,025) within a six-year span after ten years of no payments.
- Testimony of Lala Lokman Das that shortly before February 1888 Dungar Mal showed him the bond without indorsements, undermining the authenticity of later indorsements.
- Dungar Mal's own affidavit of 16 December 1889, filed to execute a decree, in which he stated there was a subsisting mortgage for Rs. 4,200 — inconsistent with a prior full discharge in June 1889; the debtors did not traverse his statement that the mortgage subsisted.
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On the nature of the 8 November 1891 sale, the court agreed with the lower court that Kishan Lal was the real purchaser and that the first four plaintiffs were benami:
- Findings included the impecunious state of the first four plaintiffs, absence of account-books, fabrication of accounts, non-production of documents supposedly securing debts discharged, and that the decretal amount due to Balwant Singh remained unpaid by those plaintiffs.
- The court accepted the Subordinate Judge's conclusion that only Rs. 600 had actually been paid before registration and that Kishan Lal purchased the decree and used execution-auction devices to acquire the two-fifths share in the mortgage.
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On the legal effect of Kishan Lal's purchase of Rao Balwant Singh's decree and the subsequent auction sale, the court reasoned:
- Because Kishan Lal had acquired Baldeo Das and Dungar Mal's interests by the sale deed of 8 November 1891, those interests ceased to be the judgment-debtors' property before the auction sale conducted under Balwant Singh's decree.
- As assignee of Rao Balwant Singh's decree, Kishan Lal could not cause his own property (i.e., interests he already owned) to be sold in execution of that decree; therefore the auction sale could not and did not confer any title to the purchaser at that execution-sale.
- The court characterized the auction-sale as a device to avoid Section 135 and held it did not produce title; Kishan Lal's only title to the mortgage interests rested on the 8 November 1891 sale deed.
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On the question whether Section 135 of Act No. IV of 1882 applied and whether a debtor must pay before judgment, the court:
- Accepted as admitted that on 8 November 1891 the debt had become an actionable claim and that Chapter VIII applies to mortgage debts (citing Rani v. Ajudhia Prasad).
- Considered and rejected the Calcutta Full Bench view (Muchiram Barik) that a debtor loses the benefit of Section 135 unless he pays the assignee's price before judgment. The court aligned instead with authorities (Jani Begam, Hakim-un-nissa, and the Madras Full Bench in Nilakanta) holding that Section 135's object is to discourage trafficking in litigation and to limit recovery by an assignee to the actual price paid plus incidental expenses and interest, and that the statute does not require pre-judgment payment to secure the debtor's discharge.
- Interpreted Clause (d) of Section 135 as directed to sales of claims already affirmed by judgment (or those about to be so affirmed) and intended to exclude them from the first paragraph's operation because gambling in litigation would be unlikely for such claims.
- Applied this construction to the facts: the court found the true consideration for the 8 November 1891 sale to be Rs. 600 paid at registration plus Rs. 1,800 paid (or treated as paid) to Rao Balwant Singh for his decree — the latter being regarded as part of the consideration because the sale agreement provided that Balwant Singh's decree should be discharged out of the consideration and Kishan Lal obtained an assignment of that decree instead of a cash payment. Thus the court fixed the actual price at Rs. 2,400.
- Having determined the proper price under Section 135 to be Rs. 2,400, the court concluded Kishan Lal was entitled only to that amount, interest and incidental expenses, rather than the larger mortgage demand asserted by plaintiffs.
Holding and Implications
Holding: The court's core rulings are summarized as follows:
- The mortgage was not discharged by the purported payments shown on the bond; the endorsements were not accepted as genuine and repayments were not proved.
- Kishan Lal was the actual purchaser under the sale deed of 8 November 1891; the first four plaintiffs were benami and had no beneficial interest in that purchase.
- The auction sale under Rao Balwant Singh's decree did not confer title because the interests sold at that auction had already ceased to belong to the judgment-debtors (having been purchased by Kishan Lal) and the auction was a device to evade Section 135.
- Section 135 of Act No. IV of 1882 applies to this actionable mortgage-debt and limits the assignee's recovery to the actual price paid plus interest and incidental expenses; the debtor need not pay the price before judgment in order to claim the section's protection.
Direct consequences and remedial orders made by the court:
- The decree below is varied: Kishan Lal (the fifth plaintiff) is awarded Rs. 2,400 (the found price), with interest at 9% per annum from 8 November 1891 to 20 August 1898 (the date fixed for payment), and Rs. 39 for incidental sale expenses.
- If the decretal amount is not paid on or before 20 August 1898, the mortgaged property, or a sufficient part thereof, is to be sold.
- The remainder of Kishan Lal's claim is dismissed; the claims of the other plaintiffs are totally dismissed with costs.
- The appellant (Phul Chand) will recover from Kishan Lal costs in both courts proportionate to the extent of his success.
Broader implications: The opinion adopts and applies existing authorities construing Section 135 to limit recovery by assignees of actionable claims to the actual price paid (plus interest and expenses) and rejects a rule that would require debtors to pay before judgment to claim that protection. The judgment does not purport to announce a novel legal principle beyond the application and preference for certain earlier authorities; the direct effect is the limitation of recovery to the proved consideration and dismissal of claims by benami purchasers.
1. This was a suit for sale under a mortgage dated the 3rd of September 1873, executed by one Mohan Singh for Rs. 4,300 in favour of Mansukh Das and his son Dungar Mal. After the death of the aforesaid mortgagees the widow of Dungar Mal, three of the sons of Mansukh Das and the widow of another son assigned, on the 8th of November 1891, their rights under the mortgage to the first four plaintiffs for a consideration of Rs. 10,000. Out of that amount Rs. 600 was paid in the presence of the registering officer and Rs. 1,858-9-3 was kept back for the purpose of discharging a decree held against the widow of Dungar Mal and Baldeo Das, one of the sons of Mansukh Das, by Rao Balwant Singh. That decree was, however, not satisfied, and it was purchased from Balwant Singh by Kishan Lal, the fifth plaintiff. He put the decree into execution, and having caused the two-fifths share of Baldeo Das and Dungar Mai's widow in the aforesaid mortgage to be sold by auction, purchased it himself, The five plaintiffs having thus acquired the rights of the mortgagees have instituted this suit, claiming Rs. 10,500 as due under the mortgage. The mortgaged property was sold in execution of a decree obtained upon a subsequent mortgage, and was purchased by Than Singh and Nathu Ram, who are now represented by the appellant Phul Chand. The defendants to the suit were the legal representatives of the mortgagor and subsequent transferees of the mortgaged property. The defence raised on behalf of the defendants, whom Phul Chand appellant represents, was that the mortgage had been discharged and the mortgage bond returned to the mortgagors; that the plaintiffs had not paid consideration for their purchase; that the purchase had been made to carry on litigation and that the plaintiffs were not entitled to recover any portion of the amount claimed. The defendants produced the mortgage bond bearing endorsements of payment, which, if genuine, showed that the mortgage had been discharged in full in 1889. The Court below has held the plea of payment not to be established, It found that the bond had somehow come into the possession of the mortgagors, that the indorsements on it were not genuine and that the mortgagors and their heirs had not the means to make the alleged payments. It also held that the assignment of the mortgage bond to the first four plaintiffs was the transfer of an actionable claim to which Section 135 of the Transfer of Property Act applied; that the purchase of the bond was in reality made by Kishan Lal in the names of the other plaintiffs; that only Rs. 600 were paid as consideration for that purchase, and that in virtue of that purchase the plaintiffs could not recover more than that amount and incidental expenses. As regards the share of the mortgage debt purchased by Kishan Lal at auction, the Court below was of opinion that by reason of Clause (d) of Section 2 of Act No. IV of 1882 the first portion of Section 135 of that Act did not apply. That Court accordingly made a decree for two-fifths of the mortgage money, with interest, and for Rs. 600 with incidental expenses and interest.
2. Both parties have appealed from this decree. In this appeal, which has been preferred by the defendant Phul Chand, two contentions have been raised on behalf of the appellant; first, that it has been proved that the mortgage has been discharged by payments, and, second, that since it has been found that Kishan Lal plaintiff was the real purchaser of the mortgage under the assignment of the 8th of November 1891, he took the place of the judgment-debtors to the decree of Balwant Singh, and the purchase of that decree by him had the effect of discharging that decree. Consequently by virtue of the auction purchase of the rights of Dungar Mal and Baldeo Das he acquired no interest in the mortgage in question and is only entitled to recover the price paid by him for the assignment of the 8bh of November 1891, with incidental expenses and interest. On behalf of the plaintiff it is urged that there is nothing to show that Kishan Lal is the real purchaser under the sale of the 8th of November 1891; that payment of the full amount of consideration for that sale has been proved and that Section 135 of Act No, IV of 1882 does not apply to a case like this.
3. As regards the discharge of the mortgage by repayment of the mortgage money we agree with the conclusion at which the learned Subordinate Judge has arrived. The mortgage deed is no doubt in the possession of the heirs of the mortgagor, Mohan Singh, by whom it has been produced. It also bears indorsements of payments. These circumstances certainly raise a presumption in favour of the defendants; but the evidence and the probabilities to which the Subordinate Judge has referred in detail completely negative that presumption. According to the indorsements on the mortgage deed, payments were made on account of it between the 9th of June 1883 and the 2nd of June 1889, and the number of payments was five. It is rather surprising that for ten years from the date of the mortgage not a farthing was paid to the mortgagees, but in the course of the next six years such a large sum as Rs. 7,025 was paid by the mortgagors, and the bond was taken back. The evidence on the record clearly shows that the mortgagor had not the means to make such large payments, that they were in very involved circumstances, that they were not even in a position to pay the Government Revenue, that their movable property had to be sold for the realisation of the revenue and that their zamindari share had to be let out in farm for the recovery of arrears of revenue. It is in the highest degree improbable that persons in such impecunious circumstances made the alleged payments. It appears from the evidence of Lala Lokman Das, a respectable pleader of the District Court of Aligarh, that shortly before February 1888, Dungar Mal, one of the mortgagees, showed the bond to him with a view to raise money for the purpose of bringing a suit on the basis of the bond, and, as far as Lala Lokman Das could recollect, it bore no indorsements of payment. If the indorsements which now appear on the bond are genuine, all of them, except the last, must have been on it at the time when it was shown to Lala Lokman Das, and his attention would undoubtedly have been attracted by them. Further, the only amount which would have remained due on the mortgage at that time would have been a sum below Rs. 800, upon payment of which about eighteen months afterwards the mortgage is alleged to have been discharged. It seems to us to be extremely improbable that for the purpose of meeting the expenses of instituting a suit to recover that small sum Dungar Mai would have been endeavouring to raise money by negotiating with Lala Lokman Das. There is another piece of evidence which to our minds clearly shows that no payments were made to the mortgagees on account of the bond in question. On the 16th of December 1889, Dungar Mal applied for the execution of a decree held by him against Chitra Singh and others, heirs of the mortgagor Mohan Singh, and he prayed for the sale of the 10 biswas share comprised in the mortgage now in suit subject to that mortgage. With his application he filed an affidavit in which lie stated that he held a mortgage over that property for Rs. 4,200, that is, the mortgage upon which the present claim has been brought. Had the mortgage been discharged in the preceding month of June, Dungar Mal's statement that there was a subsisting mortgage on the property for Rs. 4,200 would not have been allowed by the debtors to go unchallenged. It appears that they did raise objections in regard to Dungar Mai's application for execution, but they never traversed his statement that their property was subject to the mortgage for Rs. 4,200.
4. These facts, and the other facts stated in the judgment of the lower Court, clearly show that the mortgage was never discharged and that payments were never made on account of it. We agree with the learned Subordinate Judge in considering the oral evidence adduced on the point to be wholly unworthy of credit. The Subordinate Judge has also, in our opinion, conclusively shown that the purchase of the mortgage bond in suit in the names of the first four plaintiffs on the 8th of November 1891, was in reality a purchase by Kishan Lal, and that the amount paid as consideration for that purchase before or at the time of the sale was Rs. 600, the sum which was paid in the presence of the registering officer. We have carefully considered the evidence on the point to which cur attention has been directed, and we think it unnecessary to refer to it in detail further than to say that we fully concur with the Court below in its estimate of that evidence and with the conclusions at which that Court has arrived. The impecunious circumstances of the first four plaintiffs, the non-production of account-books, the fabrication of accounts, the non-production of the documents by which were secured the debts alleged to have been discharged with the consideration money, and the fact that the decretal amount due to Balwant Singh was not paid by those plaintiffs clearly show that the full amount of consideration for the sale deed of the 8th of November 1891 was nob paid and that the first four plaintiffs did not make that purchase on their own account. Had they been the real purchasers, why did they leave the decree of Balwant Singh unsatisfied? Why did they allow Kishan Lal to purchase that decree and why did' they allow the shares of the judgment debtors to that decree to be sold for the small sum of Rs. 200 and purchased by Kishan Lal himself? The fact is, as the learned Subordinate Judge has pointed out, that under the deed of the 8th of November 1891, Kishan Lal himself purchased the rights of the mortgagees, that, being apprehensive that the subsequent purchasers of the mortgaged property would olaim the benefit of the provisions of Section 135 of the Transfer of Property Act, he took an assignment of the decree held by Rao Balwant Singh, and, putting that decree into execution, purchased at auction the shares of Dungar Mal and Baldeo Das in the mortgage in order to avoid the operation of that section. We hold, in concurrence with the Court below, that Kishan Lal plaintiff was the real purchaser of the interests of the mortgagees by virtue of the sale deed of the 8th of November 1891; that the other plaintiffs were only benami for him and that they were not beneficially interested in the purchase. That being so, the contention of the learned Counsel for the appellant that the claim of the first four plaintiffs ought to have been dismissed must prevail.
5. It is next urged on behalf of the appellant that as Kishan Lal was the real purchaser under the sale deed of the 8th of November 1891, and thus acquired the rights of Dungar Mal and Baldeo Das in the mortgage of 1873, which Rao Balwant Singh had caused to be attached in execution of the decree held by him against Baldeo Das and the widow of Dungar Mal, he took the place of the judgment-debtors to that decree, and, as he subsequently purchased the decree from Rao Balwant Singh, the decree became extinct and incapable of execution, and consequently he acquired nothing under the auction purchase which subsequently took place at his instance in execution of that decree. The correctness of the proposition raised by this contention seems to us to be open to doubt. We are, however, of opinion, upon another ground, that no title passed to Kishan Lal under the auction sale referred to above. We have held that he was the actual purchaser of the property conveyed by the sale deed of the 8th of November 1891, so that he acquired the interests of Baldeo Das and Dungar Mal in the mortgage in question by virtue of that purchase. As the assignee of the decree held by Rao Balwant Singh against those persons he could not put up to sale and purchase the interest which those persons originally had in the mortgage and which he himself had purchased before the date of the assignment of the decree. Those interests had on the date of the auction sale ceased to be the property of the judgment-debtors to the decree and had become his own property. He could not, as the holder of Rao Balwant Singh's decree, cause his own property to be sold in execution of that decree, and, as that property had, as we have said, ceased to be the property of the judgment-debtors to the decree, the auction-sale of the interests of the judgment-debtors in that property, which were DO longer in existence at the time of the sale, could not and did not confer any title to the property on the auction purchaser. The auction-sale was only a device resorted to by Kishan Lal for the purpose of evading the operation of section 135 of act No. IV of 1882 and in our opinion he did not acquire any title by virtue of the auction purchase. His only title in respect of the mortgage in suit consequently rests on the sale deed of the 8th of November 1891. The consideration for that sale was not only the sum of Rs. 600 which was paid in cash at the time of the registration of the sale deed, but the amount paid to Rao Balwant Singh as the price of the decree purchased from him must also be deemed to be a part of the consideration. The agreement under the sale deed was that Rao Balwant Singh's decree should be discharged out of the consideration. Instead of paying him the amount due upon the decree Kishan Lal took from him an assignment of the decree and adopted this mode of satisfying his claim. The amount paid to him must therefore, we think, be regarded as a part of the consideration for the sale deed of the 8th of November 1891. That amount, it has been proved was Rs. 1,800. The total 8urn which was paid as the price of this mortgage debt in suit was thus Rs. 2,400, and if section 135 of act No. IV of 1882 is applicable, that is the only amount which Kishan Lal is entitled to recover, besides interest on that amount and the incidental expenses of the sale. The learned vakil for the respondent, however, contends that section 135 of act No. IV of 1882 has no application in this case.
6. This contention leads us to the consideration of the only point which remains to be determined, namely whether the appellant is entitled to the benefit of the provisions of section 135 of act No. IV of 1882. It is admitted that on the 8th of November 1891, when the mortgage-debt now in suit was assigned by the mortgagees, the debt had become recoverable by suit, and had matured into an actionable claim. It is also conceded that the provisions of chapter viii of act No. IV of 1882 apply to a debt secured by a mortgage. That is the effect of the ruling of the Full Bench of this Court in Rani v. Ajudhia Prasad I.L.R. 16 All. 315. It is urged, however, that a debtor cannot claim the benefit of section 135 of act No. IV of 1882 unless he pays before judgment the amount paid by the assignee of the actionable claim, and in support of that contention the Full Bench ruling of the Calcutta High Court in Muchiram Barik v. Ishan Chunder Chuakerbutti I.L.R. 21 Cal. 568, has been cited. That ruling is no doubt an authority in favour of the respondents. But a contrary view has been held in this Court in Jani Begam v. Jahangir Khan I.L.R. 9 All. 476, and Hakim-un-nissa v. Deonarain I.L.R. 13 All. 103, and by a Full Bench of the Madras High Court in Nilakanta v. Krishnasami I.L.R. 13 Mad. 225. We agree with the learned Judges who decided the cases last mentioned. The object with which Section 135 was enacted was evidently to discourage trafficking in litigation by precluding the purchaser of an actionable claim from recovering any thing beyond the actual price paid by him and the incidental expenses of the sale together with interest. That object would surely be defeated were we to hold that it was the intention of the Legislature that a debtor could not avail himself of the provisions of section 135 if he put the assignee to proof of the price paid by him and waited till the amount of the price had been determined and declared by the Court. The section, it is true, provides that the debtor is discharged by payment to the assignee of the price and incidental expenses and interest on the price, but it does not limit the period within which the payment must be made in order to secure a discharge. There is nothing in the section, as far as we can judge, which would preclude the debtor from securing his discharge by payment after decree. Clause (d) of that Section in our opinion contemplates the case of the sale of an actionable claim in respect of which at the time of the sale a judgment has been delivered affirming the claim or the claim has been made clear by evidence. The four Clauses of Section 135 were evidently intended to provide for oases of sale of actionable claims which would not be affected by the provisions of the first paragraph of the section, as in those cases the probability of gambling in litigation would be very remote. The "claim" referred to in Clause (d), we consider, is the claim which is sold and which at the date of the sale has been affirmed by a judgment or is about to be so affirmed. Such a claim, if sold, would in the ordinary course of things fetch its proper value, and therefore, like the actionable claims referred to in the preceding clauses, it was excluded from the operation of the section. We fully agree with the observations contained in the judgment of Shephabd, J., in the Full Bench case of Nilakanta v. Krishnasami cited above, and we are of opinion that it would be placing an unreasonable construction on Section 135 to hold, as we have said above, that a debtor would lose the benefit of the Section if he called upon the assignee of the debt to prove the price paid by him. Such a construction would, we think, frustrate the very object with which the Section was enacted. We may refer to the present case as an instance in point. The assignee alleged the price to be Rs. 10,000. The defendant denied that any price had been paid. We have held the true price to be Rs. 2,400. We do not think the Legislature intended that such a case would not come within the purview of Section 135, and that the defendant must pay the full amount due upon the mortgage, namely, upwards of Rs. 11,000, although the plaintiff actually paid for his purchase a much smaller sum. We hold that Section 135 precludes the assignee of an actionable claim from recovering from the debtor any sum in excess of the price paid by him, the interest thereon and the incidental expenses of the sale. That being so, the plaintiff Kishan Lal was only entitled to a decree for Rs. 2,400, the price paid by him, to interest on that amount at the rate payable under the mortgage from the 8th of November 1891, and to Rs. 39, the incidental expenses of the sale.
7. We accordingly vary the decree below by making a decree in favour of Kishan Lal plaintiff for Rs. 2,400, together with interest thereon at the rate of 9 per cent, per annum from the 8th of November 1891, to the 20th of August 1898, which we hereby fix as the date on or before which the decretal amount should be paid, and also for Rs. 39 the incidental expenses of the sale to him. We award to him proportionate costs here and in the Court below, and we direct that, in the event of the amount decreed by us not being paid on or before the date above mentioned, the mortgaged property, or a sufficient part thereof, be sold. We dismiss the remainder of Kishan Lal's claim, and totally dismiss the claim of the other plaintiffs with costs. The appellant will recover from Kishan Lal his costs here and in the Court below proportionately to the amount of his success.
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