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2003 (11) TMI 622 - HC - Indian Laws

Issues:
1. Appellant's claim for recovery of debt from respondent.
2. Applicability of Section 52 of the Code of Civil Procedure.
3. Legal representative's liability for deceased's debt.
4. Interpretation of legal rights to raise defense in a debt recovery suit.

Analysis:
1. The appellant, a bank, filed a suit for recovery of a debt of Rs. 25,234.92 from the respondent, who was the mother and legal representative of the deceased debtor. The deceased had taken a loan and made partial payments before passing away, leaving the outstanding amount due. The trial court dismissed the suit, stating that the deceased had not left any assets to the respondent, making her not liable for the debt.

2. The appellant contested the trial court's decision, citing Section 52 of the Code of Civil Procedure, which allows legal representatives of debtors to object to the deceased leaving no property only during execution proceedings, not in the suit itself. The appellant argued that the trial court should have decreed the suit based on the debt being due from the deceased and the respondent being the legal representative.

3. The key question was whether the respondent could raise the defense of not inheriting any property from the deceased in the suit. Referring to previous judgments, the court noted a difference of opinion on when such a defense should be raised. However, considering the circumstances and evidence presented, the court held that the respondent had the right to raise the defense in the suit itself, and the trial court's decision was legally sound.

4. Drawing from legal precedents, the court affirmed that a legal representative can resist a debt recovery suit by claiming no inheritance of assets from the deceased. The court emphasized that the respondent's defense was valid and within her rights, leading to the dismissal of the appeal. Despite dismissing the appeal, the court ordered each party to bear their own costs for the appeal proceedings, confirming the trial court's decree.

In conclusion, the High Court upheld the trial court's decision, ruling in favor of the respondent based on her legal right to raise the defense of not inheriting any property from the deceased in the debt recovery suit. The judgment highlighted the importance of legal representatives' rights in such cases and clarified the applicability of Section 52 of the Code of Civil Procedure in debt recovery proceedings.

 

 

 

 

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