R. Dayal, J. - (1.) The following question has been referred to this Court for decision under Sec. 113 of the Code of Civil Procedure by the Special Judge, Second Grade, Ballia. "Is a decree passed by the Special Judge under Sec. 14 of the U. P. Encumbered Estates Act (U.P. Act XXV of 1934) in respect of secured debt to which the U.P. Zamindar's Debt Reduction Act, 1952 applies liable to be reduced under the said Act -
(2.) The question arose at the hearing of an application under Sec. 19A of the U.P. Encumbered Estates Act made to the Special Judge for reducing the amount of debt, for which a decree had been passed under Sec. 14 of the Encumbered Estate. Act in accordance with the provisions of the U. P. Zamindar's Debt Reduction Act (XV of 1953). Sec. 19A of the U. P. Encumbered Estates Act is : "Amendment of decree transmitted to the Collector. Where a decree has been passed by the Special Judge before the commencement of the U.P. Encumbered Estates (Amendment) Act, 1954, and the decree not having been already fully satisfied is in respect of secured debt to which the U.P. Zamindar's Debt Reduction Act, 1952, applies, the Special Judge shall upon reduction of the amount of the debt in accordance with the provisions of the said Act-, (a) inform the Collector of the reduction so made; and (b) certify the amount, if any of the decree aforesaid which is not legally recoverable otherwise than out of the compensation and rehabilitation grant payable to the landlord in respect of the mortgaged estate; and the decree transmitted to the Collector under Sec. 19 shall be deemed to have been amended accordingly."
(3.) The section is clear and directs the Special Judge to take certain action upon. reduction of the amount of the debt in accordance with the provisions of the U. P. Zamindar's Debt Reduction Act, 1952 in connection with decrees passed by him in respect of secured debt to which the said Act applies in case the decree was passed before the commencement of the U. P. Encumbered Estates (Amendment) Act, 1954 and is at the time not fully satisfied in respect of the secured debt. This action the Special Judge has to take upon the reduction of the amount of the debt in accordance with the provisions of this Debt Reduction Act. It follows therefore that the amount of the secured debt had to be reduced. Sec. 18 of the U. P. Encumbered Estates Act is: "Effect of finding of Special Judge. - Subject to the right of appeal or revision conferred in Chapter VI, the effect of a decree of the Special judge under sub-Sec. (7) of Sec. 14 shall be to extinguish the previously existing rights, if any of the claimant, together with all rights, if any of mortgage or lien by which the same are secured and, where any decree is given by the Special Judge to substitute for those rights a right to recover the amount of the decree in the manner and to the extent hereinafter prescribed. Provided that secured debts which, in accordance with the provisions of Sec. 8 of the U.P. Zamindar's Debt Reduction Act, 1952, are not legally recoverable otherwise than out of the compensation and rehabilitation grant payable to the landlord shall be recoverable from the compensation and rehabilitation grant aforesaid as though the security had not been extinguished.";