Statutory right to interim compensation for mortgagees survives estate acquisition despite limitation and civil execution objections.

A mortgagee whose security is extinguished when an estate is taken over under the Abolition Act acquires a direct statutory right to receive interim compensation under the Act's distribution scheme. The statutory entitlement flows from the provisions requiring compensation to be paid to persons whose interests have been transferred to the Government, and it is not cut down by a separate provision addressing another purpose. The document also states that limitation objections based on ordinary civil execution rules do not defeat this statutory claim, because enforcement of compensation rights is distinct from execution of the original decree and is governed by the Act itself.

---

---

Issues: (i) Whether a mortgagee of an estate taken over under the Abolition Act is entitled to receive amounts deposited as interim compensation under the statute. (ii) Whether the claim was barred by limitation or could be defeated on the footing that interim compensation could be reached only by attachment in civil court.

Issue (i): Whether a mortgagee of an estate taken over under the Abolition Act is entitled to receive amounts deposited as interim compensation under the statute.

Analysis: The statutory scheme treats persons whose interests in the estate stand transferred to the Government as entitled to receive compensation, and Section 50(2) requires interim compensation to be paid to the persons entitled under Section 44(1). The mortgagee's security stands wiped out on the taking over of the estate, and the statute substitutes a right to receive compensation in place of the extinguished security. Section 50(8) does not cut down that entitlement, because it serves a different purpose and cannot be read so as to nullify the express distribution mechanism in Section 50(2).

Conclusion: The mortgagee was entitled to have his dues satisfied out of the interim compensation amount.

Issue (ii): Whether the claim was barred by limitation or could be defeated on the footing that interim compensation could be reached only by attachment in civil court.

Analysis: The decree was not barred on the date when the estate was taken over, and the rights then existing were replaced by the statutory right to draw compensation under the Act. Enforcement of that statutory entitlement is not the same as execution of the decree, so the limitation provision in Section 48 of the Civil Procedure Code does not apply. The earlier attachment adopted as a precaution did not exhaust or destroy the statutory remedy, and the statute itself, not civil court attachment, governs entitlement to the interim compensation.

Conclusion: The objection based on limitation and the necessity of attachment failed.

Final Conclusion: The appeal succeeded, and the Tribunal's view denying the mortgagee's claim to the interim compensation was set aside.

Ratio Decidendi: Where a statute extinguishes the mortgagee's security on acquisition of an estate and expressly provides for payment of compensation to persons whose interests are so transferred, the mortgagee acquires a direct statutory right to receive interim compensation under the distribution provisions, unaffected by ordinary execution or limitation objections.

---