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Issues:
Validity of usufructuary mortgage of an occupancy holding under U.P. Zamindari Abolition and Land Reforms Act, 1951. Detailed Analysis: Issue 1: The main question in this appeal is whether a Division Bench of the Allahabad High Court was correct in following the decision that a usufructuary mortgage of an occupancy holding was only valid to the extent that the mortgagee could retain possession until repayment of the mortgage debt. The case involved a suit under Section 202 of the U.P. Zamindari Abolition and Land Reforms Act, 1951, where the appellants claimed they were sirdars and not liable to ejectment. The High Court, following precedent, held that such transactions were not valid mortgages but still fell under Section 21(1)(d) of the Act. Issue 2: The appellants contended that the usufructuary mortgage in question was valid under the Recovery of Rents (Bengal) Act, 1859, as it was executed before the Act's repeal. However, the High Court reiterated that a usufructuary mortgage of an occupancy holding did not transfer any interest to the mortgagee beyond possession rights until the debt was repaid. The court emphasized the long-standing view that such mortgages did not extinguish the right of an occupancy tenant and were not subject to redemption suits. Issue 3: The appellants argued that observations in a previous case supported the validity of the mortgage under the Bengal Act. The court disagreed, stating that the consistent view of the Allahabad High Court was that such mortgages were not valid as traditional mortgages but only allowed the mortgagee to retain possession until repayment. The court invoked the doctrine of stare decisis to maintain legal certainty and prevent disruption of established law. Issue 4: The court also rejected the argument that Section 6 of the Recovery of Rents (Bengal) Act allowed for such mortgages, citing a judgment that occupancy rights were non-transferable under the Act. The court clarified that the terms of the mortgage bond governed the relationship between the parties, allowing the mortgagee to retain possession until the debt was paid off, in line with the U.P. Debt Redemption Act, 1940. In conclusion, the Supreme Court dismissed the appeal, upholding the High Court's decision that a usufructuary mortgage of an occupancy holding did not confer full mortgage rights but only allowed the mortgagee to retain possession until the debt was cleared. The court emphasized the long-standing legal precedent in the Allahabad High Court and the legislative intent behind the U.P. Zamindari Abolition and Land Reforms Act, 1951.
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