AIR 1951 ALLAHABAD 643

Allahabad High Court

Hon'ble Judge(s): B. B. Malik , C.J. AND Misra, Kidwai , JJ

(A) Uttar Pradesh Debt Redemption Act (13 of 1940) , S.9— Debt Laws - 'Net profits realised', meaning of - Mtgee. of under-proprietary plot in cultivating possession Calculation of net profits - Circle rate. Transfer of Property Act (4 of 1882) , S.76(h)— I. l. R. (1944) All. 616 : AIR (31) 1944 All. 283 : 218 i. C. 120; I. l. R. (1950) All. 228 : AIR (37) 1950 All. 192; C. R. No. 197 of 1945, D/-05-01-1949 and C. R. No. 100 of 1946, D/-10-02-1950, Overruled. @page-All644 The expression 'net profits' in S. 9 (1), U. P. Debt Redemption Act, should be interpreted in the same sense in which the expression 'fair occupation rent' is used in S. 76 (h), T. P. Act.(Para 42 72) A mtgee. of proprietary or under-proprietary land who enter into actual occupation and raises crops which he sells for profit fills two capacities. As mtgee. he is a transferee of the owner's rights and as an actual occupier of the land he is virtually a tenant. For the profits derived by him as a mtgee., he is accountable to the owner, in other words, he must credit his debtor with the rents which he collects or might have collected but for his wilful default. The gains of cultivation do not arise from the exercise by him of any rights as a mtgee. and the mtgor, therefore, cannot lay any claim to them. This being t....