High CourtsDivision Bench(1941) 02 MAD CK 0030

Kuntamukkala Venkateswara Rao vs Sree Raja Kunduru Lakshmikantharao Bahadur Zamindar Garu and Others

Madras High Court · Decided on 17 February 1941 · Citation: AIR 1941 Mad 638 : (1941) 53 LW 672 : (1941) 1 MLJ 633

HON’BLE JUDGES
Wadsworth, J

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Judgment

12 paragraphs · 314 words

Wadsworth, J.—Petitioner contended in defence to a suit on a promissory note that the amount was not due because it represented rent

which must be deemed to be discharged by reason of Section 15 of Act IV of 1938. A Bench of which I was a member held in Ramadoss

Reddiar Vs. Munuswami Reddiar, , following The Commissioner of Income Tax, Madras v. Zamindar of Kirlampudi (1931) 63 M.L.J. 20 :

I.L.R.1931 Mad. 830 that a decree on a promissory note for arrears of rent is a decree for a debt and not a decree for rent and that it is to be

scaled down under Sections 9 and 19 and not u/s 15. An attempt has been made to distinguish that decision on the ground that it related to a

decree, whereas, here, we are concerned with a suit on a promissory note to which a plea of failure of consideration may be raised. The distinction

made is, in my opinion, fallacious. The basis of our decision was that on the taking of the note the character of the liability changed and that it

ceased to be rent. Granted that the promissory note would operate only as a conditional discharge of the liability for rent and that if it was found to

be defective the promisee might (if it was not barred) fall back on the original right to claim rent, I do not think that it follows that the debtor can

compel the promisee to treat his claim as one for rent whereas in fact it is nothing of the kind, or that he can treat the note which was in substitution

for a liability for rent as being without consideration, because a claim based on the liability for rent, which has not been made, would be met by a

defence u/s 15. In this view I dismiss the petition with costs.