In Brief
A permanent Mirashi tenant (Respondents) mortgaged watan land to a mortgagee (Appellants) in 1947. When the Abolition Act came into force in 1951, the watan land was resumed by the government. The mortgagee later obtained a re-grant by paying occupancy price, while the mortgagor did not. The Respondents sued for mortgage redemption. The Supreme Court held that a permanent tenant's rights survive under the Abolition Act, therefore the mortgage relationship persists. The mortgagee, by obtaining re-grant through his position as mortgagee, gained an advantage under Section 90 of the Indian Trust Act that must benefit the mortgagor. The Court set aside lower courts' dismissal and decreed the redemption suit.
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