P (PLP)
GHULAM SARWAR KHAN and others‑Appellants Versus ABDUL WAHAB KHAN and others‑Respondents
| Citation | P (PLP) |
| Forum / Court | |
| Bench Members | Lord Simonds, Lord Radeliffe, Sir Malcolm Macnaghten |
| Parties | GHULAM SARWAR KHAN and others‑Appellants Versus ABDUL WAHAB KHAN and others‑Respondents |
Q1: What are the key laws and sections cited in P (PLP)?
This judgment primarily cites: statutory provisions as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case P (PLP)?
The case was heard and decided by the bench comprising: Lord Simonds, Lord Radeliffe, Sir Malcolm Macnaghten.
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Cite this legal precedent as: P (PLP) (GHULAM SARWAR KHAN and others‑Appellants Versus ABDUL WAHAB KHAN and others‑Respondents). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Headnotes / Summary
Mortgage Security‑Is indivisible except by agreement between mortgagor and mortgagee. Facts ‑‑Certain mortgage rights in land were sold by the mortgagee to respondent No. 1 for a sum of Rs. 23,000 on 23rd August 1939. Previous to that on 16th May 1935, however, these rights had been sold to another person by the Revenue authorities at public auction for the recovery of arrears of Revenue in respect of the mortgaged land and the sale had been duly confirmed by the Revenue Commissioner. The transfer of mortgagee rights under the deed or 23rd August 1939‑(Respondent No. 1) brought a suit (out of which this appeal arose) to enforce his rights as mortgagee Held, that it could not be contended that in August 1939, the original mortgagee had any mortgage rights in respect of the original mortgage which he could sell or the first respondent buy. The original mortgagee could not part with his mortgage rights in respect of the whole of the mortgage debt and yet retain any part of his rights in respect of some part of the mortgaged land. The position is the same whether the mortgagee sells himself or, as here, his rights are sold by para mount authority. The general principle in this case was rightly applied that Except by agreement between. mortgagee and mortgagor a mortgage security is indivisible. The whole of the mortgage rights in respect of the sum of Rs. 23,000 became vested by purchase in the purchaser at Revenue sale there was nothing left in the original mortgagee to transfer to the first respondent. I. L. R. 22 Mad. 109 referred to.
Judgment & Decree
The first respondent to this appeal, Abdul Wahab Khan, claiming that under and by virtue of a deed of the 23rd August, 1‑939, he had acquired from one K. B. Muqarrab Khan, since deceased, all the rights which the latter enjoyed under a certain mortgage dated the 25th May, 1911, brought the suit out of which this appeal arises to enforce his rights as mortgagee under that mortgage. His suit was dismissed on various grounds by the Additional Subordinate Judge, Peshawar, on the 24th November, 1942, but his appeal from that decision was substantially allowed by the Court of the Judicial Commissioner. It appears to their Lordships that, apart from all other defences available to the appellant in the suit, it is a fatal objection to the claim of the first respondent that under the deed of the 23rd August, 1939, upon which he founds his claim, he acquired and could acquire no rights of any kind, inasmuch as K. Y. Muqarrab Khan had already parted with the rights which he then purported to dispose of. The history of the matter, so far as it is necessary to state with a mortgage deed of the 25th May, 1921, by which one Abdul Akbar Khan (through whom the appellants claim) mortgaged with possession to K. B. Muqarrab Khan for Rs. 23,000 certain lands in Shah Dhand and Shakara including an area of 307 kanals 4 marlas in Shah Dhand. The same and had previously been mortgaged to one Tara Chand for Rs. 12,
000. He was "' paid off out the Rs. 23,Q00 and transferred his mortgage rights to K. B. Muqarrab Khan, who will now be referred to as " the original mortgage " Of the steps taken by the original mortgagee to obtain possession of the mortgaged land and the disputes that have arisen in regard thereto it is not necessary to say anything. In 1935 there happened the crucial event which in their Lordship's opinion is decisive. On the 16th May in that year the Land Revenue in respect of all or some part of the mortgaged land being long in arrear, and proceedings having been taken for its recovery, the Naib Tahsildar (whose duty it was to report to his superior officer in the Revenue Department) reported as follows : " Sanction for the sale by auction of the mortgagee rights has been accorded by the Revenue Commissioner by letter No. 123000/RA dated the 15th November, 1934 The 16th of May, 1935, was fixed for holding the sale. The sale having been held the final bid was knocked down in the name of Faqi Muhammad Khan, Executive Engineer Mardan, through his brother Muhammad Safder Khan in lieu of Rs.5,
500. The one‑fourth Rs. 1,375 has b3en deposited into the Treasury. Hence this report is submitted for the confirmation of the final bid under section 92 (Land Revenue Act) in the name of the auction purchaser named above." Objection was taken to this report by the first respondent but his objection was overruled by the Deputy Commissioner at Peshawar. On the 3rd June, 1935, the Collector approved of the sale of the mortgagee rights of Rs. 23,000 and the recommendation of the Assistant Collector that " Mr: Faqir Muhammad Khan may be declared the purchaser of the mortgage rights of 307 kanals 4 marlas ..... ...after which the sanction of the Revenue Commissioner for confirmation of the sale under section 92 Land Revenue Act, will be obtained." On the 25th November, 1935, a certificate was issued by Collector to Faqir Muhammad Khan in the following terms:‑ " Certificate of Sale under Section 95, Land Revenue Act, 1887. I, the Collector of Peshawar, hereby certify that Faqir Muhammad Khan, resident of Charsadda, Executive Engineer, Malakand Division. Tahsil Charsadda, District Peshawar has been declared the purchaser at sale by public auction held on the 16th day of May, 1935, of the mortgagee rights of the value of Rs. 23,000 in respect of 307 kanals 4 marlas of land situate in the village of Shah Dhand, Tehsil Char sadda sold for the recovery of arrears due in respect thereof and that the sale has been duly confirmed by the Revenue Commissioner under section 92 of the Land Revenue Act, 1887." In accordance with this certificate Faqir Muhammad Khan was recorded as owner of the mortgagee rights on 307 kanals 4.marlas of land in the relevant Revenue papers, and on the lath October, 1939, the remaining area., in Shah Dhand covered by the mortgage was entered in the mutation register as being redeemed. The order was reviewed by the Assistant Collector but "finally restored by the Revenue Commissioner on the 1st March, 1940. It may be observed here, though it is not strictly relevant to the present issue, that already in the proceedings the first respondent had attempted to establish his position as purchaser of the mortgagee rights of the original mortgage under a deed of transfer of the 19th August, 1933, but this attempt after an original hearing and two appeals failed, all the Courts agreeing that the so‑called transfer had been made without consideration. It was consequent upon this that the deed of the 23rd August, 1939, which has already been referred to, was executed by which the mortgagee rights of the original mortgagee for Rs. 23,000 were transferred to the first respondent. But before this the events of 1935 had happened and it appears to their Lordships that in the face of transactions and documents which, even if they are open to challenge have not been challenged, it cannot be contended that in August, 1939, the original, mortgagee had any mortgage rights in respect of the mortgage which he could sell or the first respondent buy. It may be true, as was submitted by learned counsel for the firs respondent, that the normal and proper course for the Land Revenue authori ties to take was to put up for sale not the mortgage rights of the original mortgagee but a sufficient part of the mortgaged land : it may even be true that they were deflected from this course by the Lambardar who as one of the mortgagors had other interests to serve. Upon these matters their Lordships express no opinion. For they, can only deal with the documents before them, and from these it is plain that the rights of the original mortgagee in the full sum of Rs. 23,000 were transferred to Faqir Muhammad Khan and nothing was left in the original mortgagee. The first respondent relied on the fact that the mortgage rights were stated in the relevant, documents to be mortgage right " of " or " in respect of " 307 kanals 4 marlas of land in the village of Shah Dhand, arguing from this that the mortgage rights were outstanding in the original mortgagee and his transferee, the first respondent, in respect of the rest of the land originally mortgaged, To this view their Lordships cannot assent. A sufficient explanation of the limitation to 307 kanals may perhaps be found in the earlier disputes in regard to the mortgaged land to which it has not been thought necessary to refer. But whatever the explanation of this apparent inconsistency, the original mortgagee could not part with his mortgage rights in respect of the whole of the mortgage debt and yet retain any part of his respect of some part of the mortgaged land. The position is the same whether the mortgagee sells himself or, as here, his rights are sold by paramount authority. It appears then to their Lordships that upon this aspect of the case a correct view was formed by the learned Subordinate judge who rightly applied the general principle (properly applicable, no doubt, to the N.‑W. Frontier Province) that except by agreement between mortgagee and mortgagor a mortgage security is indivisible : see, e.g., I. L. R. 22 Mad. 209.1 If it were otherwise, it would presumably be necessary in some way to apportion the amounts recoverable in respect of the mortgage debt by 'the purchaser Faqir Muhammad Khan and original mortgage respectively. No feasible or satisfactory way of doing so was suggested by learned counsel. In the Court' of the Judicial Commissioner a different view was taken on this point upon the ground which is thus stated : " Whatever may be the position as regards that part of land we do not think that the whole of the mortgage debt can be considered to have been sold." If this were the right view a different conf‑lesion might have to be reached, though the difficulty of determining what part of the mortgage debt had been sold and ‑of working out the result might well prove insuperable. But it appears their Lordships that the transaction does not admit of the construction placed upon it by the Court of the Judicial Commissioner. The whole of the mortgage rights in respect of the sum of Rs. 23,000 became vested by purchase in Faqir Muhammad Khan, there was nothing left in the original mortgagee to transfer to the first respondent, and upon this ground their Lordships are of opinion and will humbly advise His Majesty that this appeal should be allowed, the judgment of the Court of the Judicial Com missioner set aside and that of the Subordinate judge restored. The first respondent must pay the costs of the appellants of this appeal and in the Courts of the N.W. Frontier Province.