STATE BANK OF HYDERABAD Vs. JOINT FAMILY OF MUKUNDAS RAJA BHAGWANDAS AND SONS
HIGH COURT OF ANDHRA PRADESH
STATE BANK OF HYDERABAD
JOINT FAMILY OF MUKUNDAS RAJA BHAGWANDAS
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KUMARAYYA, J. -
(1.) questions referred to this Full Bench for opinion are -- 1. Whether, on a true construction of Section 25 (1) of the Act, it has application to suits, appeals and applications for execution and proceedings other than revisional in respect of debts not existing on or before the notified date under Section 11 of the Act pending in any civil or revenue Court involving questions set out in that Section? 2. Whether in execution proceedings relating to decrees obtained in suit filed after the notified date, the Court could go behind the decrees passed and trace the history of the transactions which resulted in the liability under the decree? 3. If the answer to question No. 1 is in the affirmative, whether Section 25 (1) of the Act has to be struck down as violating Articles 14 and 19 (1 ) (f) of the Constitution? The Act mentioned in question No. 1 is the Hyderabad Jagirdars Debt Settlement Act (XII of 1952).
(2.) The above questions have arisen in a civil revision petition preferred against the order of the Fourth Judge, City Civil Court, directing the execution petition pending before him to be transferred to the Board constituted under Act XII of 1952 for settlement of debts.
(3.) The facts of the case may be briefly stated. An action for recovery of Rs. 40,869-1-10 was laid by the State Bank of Hyderabad, admittedly a scheduled bank, on 31-7-1956 on the basis of A cash credit account against defendants 1 to 5 as principal debtors, and defendant No. 6 as a guarantor. Defendant No. 1 is a joint family firm carrying on business in the name and style of Mukundas Raja Bhagwandas and Sons and defendants 2 to 5 who constitute the joint family are brothers, defendant No. 2 being the karta. The cash credit account in question was opened in the month of February, 1951. The dealings were in progress when on 18-3-1952, the Jagirdars Debt Settlement Act came into force. Thereafter, there were further borrowings and payments. The balance was struck on 29-6-1956. A notice dated 5-7-1956 was thereafter issued to the defendants and the suit was brought on 31-7-1956. By that time, the last date fixed for making an application under Section 11 of Act XII of 1952 for settlement of debts of Jagirdar-debtors under the said Act had already expired.;
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