Ram Charan Das vs Girjanandini Devi And Ors
Supreme
Court of India
Ram
Charan Das vs Girjanandini Devi And Ors on 20 April, 1965
Equivalent
citations: 1966 AIR 323, 1965 SCR (3) 841
Author:
M R.
Bench:
Mudholkar, J.R.
PETITIONER:
RAM
CHARAN DAS
Vs.
RESPONDENT:
GIRJANANDINI
DEVI AND ORS.
DATE
OF JUDGMENT:
20/04/1965
BENCH:
MUDHOLKAR,
J.R.
BENCH:
MUDHOLKAR,
J.R.
SARKAR,
A.K.
BACHAWAT,
R.S.
CITATION:
1966
AIR 323 1965 SCR (3) 841
CITATOR
INFO :
F
1971 SC1041 (8)
R
1972 SC1279 (10)
F
1976 SC 807 (14,17,40)
ACT:
U.P.
Court of Wards Act, 1912 (Act 4 of 1912), s. 37(a)--Family' Settlement whether
amounts to transfer or creation of interest in property within the meaning of section.
Compromise in suit--Document recording compromise whether amounts to family
settlement--Monies paid by one of the parties under the document-Other parties
whether
estopped
from challenging its validity--Party receiving benefit under document--Whether
can challenge its validity.
HEADNOTE:
C's
property passed under his Will, drawn in 1883, to K and M who were brothers. M
died and K entered into possession of his share also. On K's death in 1922 his mother
entered into possession of the whole property. She gave over the management of
the property to the Court of Wards under s. 10 of the U.P. Court of Wards Act,
1912. The daughter of M however with the consent of K's mother got her father's
share released from the management of the Court of Wards in her favour. In 1932
G, sister's son of K, filed a suit in which he challenged the release of M's
share in favour of his daughter. Two other suits were filed in respect of the
property by descendants of C's brother who as collaterals claimed to be next
reversioners to the property. The plaintiff in one of these suits was the
present appellant; in the other suit the plaintiff was his brother. In these
suits a declaration was sought that G and M's daughter had no rights in the
properties in question. G, M's daughter. K's mother and the Court of Wards were
made parties to these suits. Both these suits were cornpromised. The suit of
the present appellant was compromised by ,a document Ex. Y-13, to which, among
others, the appellant, G, and K s mother were parties. G had withdrawn his own
suit shortly before. Acting on the document Ex. Y-13 G paid monies to the Court
of Wards to clear his liabilities and get released from its management the
properties in question. C, M's daughter, K's mother and the Court of promise. However,
subsequently, the appellant filed a suit in which he challenged the validity of
Ex. Y-13. Having failed in the trial court as 'well as in the High Court he
appealed to this Court by special leave. The questions that fell for
determination were: (1) whether Ex. Y-13 was binding on the parties as a family
arrangement or settlement, (2) whether certain reservation in the said deed,
leaving it open to the parties to challenge its recitals in certain
contingencies had the effect that the deed was not intended to be final, and
(3) whether the family settlement fell within the mischief of s. 37(a.) of the
U.P. Court of Wards Act.
HELD:
(i) The document Ex. Y-13 was in substance a family 'arrangement and therefore
binding on all the parties to it. On the face of it, the document was a
compromise of conflicting claims. The 842 parties recognised each others'
rights to property, which they had earlier disputed. The suit filed by G was
withdrawn shortly before the document was executed and those filed by the
appellant and his brother were compromised on the day of its
execution. All these transactions were part of one main transaction which was
the settlement by members of the family of all their property disputes once and
for all. Further, all those who could be said to be interested in the property
were made parties to the transaction. [845H-846A] In these circumstances, the
appellant who had taken benefit under
the transaction was not entitled to turn round and challenge its validity'. He
was also estopped from doing so because G, acting on the document had paid
monies to the Court
of Wards to get his property released. [850G] Ramgouda Annagouda v. Bhausaheb,
L.R. 54 I.A. 396, relied (ii) Courts give effect to a family settlement upon
the broad
and general round that its object is to settle existing or future disputes
general regarding property amongst members of a family. The word family in this
context is not to be given a narrow meaning. In Ramgouda Annagouda's case, of
the three parties, to the settlement of a dispute concerning the property of a
deceased person one was his widow, another her brother, and the third her son-in-law.
The two latter were not heirs of the deceased, yet bearing in mind their
relationship to the widow the settlement of the dispute was regarded as the
settlement of a family dispute. The consideration for such a settlement is the
expectation that it will result in amity and goodwill amongst persons bearing
relationship to one another. That consideration having passed by each of the
disputants, the settlement consisting of recognition of the right asserted by
each other cannot be permitted to be impeached thereafter. [850F-H, 851A-B] (iii)
No doubt the parties to Ex. Y-13 recognised each others relationship to K only
for the purposes of the deed, and also reserved to themselves the right to
challenge the recitals to the deed, in certain contingencies. Thereby it is not
established that the document was not intended to be final. Read as a whole the
document left no doubt that it was
intended to be a final settlement. If it were intended otherwise there would
have been express mention to that effect in the deed. [848A-B] Moreover
what was permitted was a challenge to the recitals only. What the appellant's
suit challenged. However was not the recitals but the terms of the deed which
none of the parties was given liberty to derogate from. [849B-C] (iv) A family
settlement is not a transfer or creation of interest in the property within the
meaning of s. 37(a) of the U.P. Court of Wards Act, 1912. It is in no sense an alienation
by a limited owner of family property. Apart from that the two suits which were
pending were compromised with the full knowledge of the Court of Wards which
was also a party to both the suits and the Court of Wards in fact accepted
monies from G which were due to it. In these circumstances the appellant was
not entitled to press in his favour the provisions of s. 37(a) of the U.P.
Court of Wards Act. [851C-852H] Mst. Hiran Bibi v. Mst. Sohan Bibi, A.I.R. 1914
(P.C.) 44, Khunni Lal v. Govind Krishna Narain, I.L.R. 33 All. 35, Man Singh v.
Nowlakhbati, L.R. 46 I.A. 72 and Sureshwar Misser v.. Nachiappa Gounden, L.R.
46 I.A. 72, and Sureshwar Misser v. Maheshrani Misrainn L.R. 47 I.A. 233, 843
JUDGMENT:
CIVIL APPELLATE JUPRISDICTION: Civil Appeal No. 520 of 1961 Appeal by special
leave from the judgment and order dated September 23, 1958, of the Allahabad
High Court in First Appeal No. 392 of 1944.
S.P.
Sinha, E.C. Agarwala, S. Shaukat Hussain and P.C. Agarwala, for the appellant. Niren
De, Additional SolicitOr-General, Yogeshwar Prasad and A.N. Goyal, for
respondent No. 1. Mudholkar, J. The substantial question which falls for
decision in this appeal iS as tO the legal effect of a deed, EX. Y. 13, dated
March 31. 1933 described in the paper-book as a deed of partition., A subsidiary
question also arises for consideration which is, whether the validity of the
transaction evidenced by the deed is affected by reason of the fact that the
property comprised therein was at the time of its execution, under the
management of the Court of Wards. According to the plaintiff the deed was
invalid and did not affect his right to a share in the property in the suit.
His contention failed both in the trial court as well as in the High Court. The
property covered by the deed belonged t9 one Kanhaiyalal who died on June 10,
1922 without leaving a widow or any issue. This property, along with some other
property originally belonged to Kanhaiyalal's grandfather Chunnilal. It is said
by some of the parties that by a will executed by him in the year 1883 he
devised his property in favour of Kanhaiyalal and his brother Madho Prasad. Madho
Prasad, died during the life-time of Kanhaiyalal, leaving a daughter Maheshwari
Bibi. After Madho Prasad's death Kanhaiyalal entered into possession of the
property which had been bequeathed to Madho Prasad by Chunnilal. After
Kanhaiyalal's death Kadma Kuar, his mother, entered into possession of the
entire property which was in the possession of Kanhanyalal till his death.
Kadma Kuar died on October 14, 1937 and shortly thereafter the suit out of
which this appeal arises was instituted by Ram Charan Das, the appellant. It
may be mentioned that Kanhaiyalal and Madho Prasad had a sister by name Mst.
Pyari Bibi. She had a son named Gopinath who died in the year 1934 leaving a
widow, Girja Nandini, the first defendant to the suit. The plaintiff is the
sixth son of Diwan Madan Gopal. Diwan Madan Gopal was one of the two sons of
Brij lal and Brijlal was the only son of Deoki Nandan. Deoki Nandan himself was
the eider brother of Chunnilal. The plaintiff who is the appellant before us is
thus a collateral of Kanhaiyalal. It is not disputed that he and his brothers
were the next reversioners entitled to succeed to Kanhaiyalal's property
L/P(D)5SCI-15 after the death of his mother Kadma Kuar. To this suit he joined
Girja Nandini Devi, widow of Gopinath as defendant No. 1 and it is she who is
the contesting respondent before us. Soon after Kadma Kuar entered into
possession of the estate of Kanhaiyalal, she applied to the appropriate
authority for taking Over possession of management of the property which was in
the possession of Kanhaiyalal at the time of his death whereupon the Court of
Wards took over its management under s. 10 of the U.P. Court of Wards Act, 1912
(IV of 1912). This property consisted not only of the property which
Kanhaiyalal had obtained under the will of Chunnilal but also of the property
which had been bequeathed in that will to Madho Prasad and of which Kanhaiyalal
had obtained possession during his life time. Maheshwari Bibi, the daughter of
Madho Prasad laid a claim to the property which had been bequeathed by
Chunnilal on the ground that the two brothers who took these properties under
Chunnilal's will took them not as joint tenants but as tenants in common. The
claim made by her in this respect was examined by the Court of Wards and upon Kadma
Kuar agreeing, the Court of Wards released half of the estate under its
management, that is, the share in the property which iS said to have been
bequeathed to Madho Prasad.
It
is necessary to refer to three suits which came to be instituted during the
life time of Kadma Kuar, the first of which is 30 of 1932. This was instituted
by Gopinath who claimed to be the next reversioner upon the ground that he
being the sister's son of Kanhaiyalal, had become an heir preferential to the
present appell-. ant and his brothers because of the passing of the Hindu Law
of inheritance (Amendment) Act of 1929. To this suit Maheshwari Bibi and Kadma
Kuar and the Court of Wards were made defend. ants. He sought therein a
declaration to the effect that the Court of Wards had no right to release half
the property in favour of Maheshwari Bibi. This suit, however, was eventually
withdrawn. Two other suits, suit No. 53 of 1932 and 54 of 1932, came to be
filed' shortly thereafter. In the first of these the present plaintiff was
himself the plaintiff while in the second, his broher Hanuman Prasad (defendant
No. 6 in the present suit) was the plaintiff. Both of them claimed to be the
nearest reversioners upon the ground that the Act of 1929 did not affect their right
to the properties left by Kanhajyalal. Each of them sought a declaration that
Maheshwari Bibi and Gopinath had no right of any kind in respect of these
properties. These suits were rounded' on the ground among others that
Maheshwari Bibi had no right because Chunnilal could not by his will devise the
property to her father Madho Prasad and Gopinath had none because he was not in
fact Kanhaiyalal's sister's son. Gopinath, Maheshwari Bibi, Kadm.a Kuar and the
Court of Ward's, were made parties to these suits. It is common ground' that
the claims in both these suits were compromised. Under one of the compromises
the dispute with Maheshwari Bibi was settled and we are no longer concerned
with that matter. Under the other compromise the dispute with Gopinath and Kadma
Kuar was settled. Decrees were drawn up in these suits embodying the terms of
each of the compromises arrived at amongst the parties. The latter compromise
was entered into in suit No. 53 of 1932 and' its date was March 31, 1933. The
document, Ex. Y-13 embodies the terms of the compromise in suit No. 53 of 1932.
To that document, amongst other, the appellant, Gopinath and Kadma Kuar were
parties. According to the plaintiff the compromise in question was not in law a
surrender nor a family arrangement and that in any case Kadma Kuar was not
entitled to make a family settlement and that what she did' does not amount in
law to a surrender. Also according to him Kadma Kuar was a person under
disability being at the relevant time a ward under the Court of Wards and,
therefore, the transaction was void. On behalf of the contesting defendant it
was urged in the courts below that the transaction amounted to surrender of her
estate by Kadma Kuar and alternatively that it was a family settlement to which
the plaintiff was one of the parties and, therefore, he is estopped from
challenging the validity of the compromise, particularly so as he has taken
benefit thereunder and also because in view of the compromise Gopinath had
discharged the debts of Kanhaiyalal which at law were recoverable from the
property in question. Alternatively the defendants contended that the
transaction evidenced by the document was an effective surrender by Kadma Kuar
in favour of Gopinath who was the presumptive reversioner at that time. At this
stage it is desirable to point out that out of the properties described in List
A of the Schedule to the plaint the plaintiff-appellant lays no claim to items
1 and 2 which are respectively described as properties at Hewett Road,
Allahabad, and Goshain Tola, Allahabad' nor to item 7(1) described as 8 anna
share in a Zamindari village. Such a concession was made before this Court by
Mr. S.P. Sinha, counsel for the appellant, when the matter was argued before
this Court on April 14, 1964, when the hearing was adjourned to enable the
parties to arrive at a settlement. No settlement was arrived at and the matter
was re-argued before this Court on March 8 and 9, 1965. Mr. Sinha has not withdrawn
the concession made by him on the earlier occasion. We may also make a mention
of the fact that Mr. Niren De, the Additional Solicitor General has not argued
that Ex. Y-13 purports to show that Kadma Kuar surrendered the widow's estate.
In the circumstances we proposed to confine ourselves to the consideration of only
one matter and that is whether the deed (Ex. Y-13) is a family arrangement
and' as such binding upon the plaintiff. It seems to us abundantly clear that
this document was in substance a family arrangement and, therefore, was binding
on all (D) 5SCI—16 the parties to it. Moreover it was acted upon by them. For,
under certain terms thereof one of the parties, Gopinath, paid off certain
liabilities to which the property which was allotted to his share was
subjected. According to Mr. Sinha, however, the transaction evidenced by the
document was not a family settlement but only a surrender by Kadma Kuar though
in law it could not operate as a surrender firstly because it was not of the
entire estate of which she was in possession as a limited owner and secondly
because of the two sets of persons between whom she divided the property only one
could be said to be her reversioner or reversioners and the other a stranger or
strangers. In our opinion the document on its face appears to effect a
compromise of the conflicting claims of Gopinath on the one hand and the
present plaintiff Ram Charan Das and his brothers on the other to the estate of
Kanhaiyalal. In the document Kadma Kuar is referred to as 'first party'.
Gopinath as 'second party' and Ram Charan Das, the appellant before us and his
brothers as the 'third party'. In cl.(1) of the document it is stated
"That the first party renounces all her claims to the estate of her son M.
Kanhaya Lal deceased according to the provisions of this deed in favour of the
Second' and Third party out of which the second party shall be the absolute
owner and possessor of the properties detailed in List "A" annexed
hereto; and the third party shall be the absolute owner and possessors of the
properties detailed in the List "B" annexed hereto". These
recitals, taken in conjunction with the surrounding circumstances indicate that
Kadma Kuar purported to recognize thereby the rights of these parties to her
son's properties though earlier she disputed them. Similarly the recitals
"that the first party shall remain in de facto management of Arrah Kalan
property for her life without any interference from the second or the third
party to whom she shall in no case be liable to render any accounts and that
after her death the second party or his heirrs representatives, assigns or
transferees and Babu Sehat Bahadur Advocate Allahabad as representing the third
party or
their heirs, representatives, assigns or transferees shall manage and enter
into possession of the said village Arrah Kalan jointly", indicate that
the 2nd and 3rd party were disputing and interfering with the right of Kadma
Kuar to the management of one of the properties but ultimately, under the document
in question, they agreed not to do so. Further, as we have already pointed out,
three suits had been instituted in the year 1932 concerning this very property,
one by Gopinath and the other two by the plaintiff and his brother Hanuman
Prasad. In his suit Gopinath claimed to be the next reversioner. The plaintiff
appellant Ram Charan Das claimed that he and his brothers were the next reversioners
and not Gopinath. A similar claim was made by Hanuman Prasad in his suit. It is
worthy of note that the plaintiff's suit was compromised on the very day on
which this document, Ex. Y-13, was executed and that the terms of the
settlement were recited in Ex. Y-13. This document further makes express
mention of the two suits which were companion suits, suit No. 53 of 1932 and suit
No. 54 of 1932, and says, categorically that these suits shall be deemed to be
compromised in terms of this deed. By compromising those two suits the
plaintiff and his brother Hanuman Prasad withdrew their challenge to the claim
put forward by Gopinath to the estate of Kanhaiyalal. Prior to this Gopinath
had withdrawn his suit in which he had claimed to be the next reversioner to
the estate of Kanhaiyalal after the death of Kadma Kuar. All these transactions
are quite evidently part of one main transaction which is the settlement by the
members of the family of all those disputes once and for all. No doubt
according to the plaint allegation this was merely a temporary arrangement but
no reasons have been given nor any material was placed before the Court from which
it could be inferred that it was not the intention of the parties that the
disputes amongst them should be finally settled'.
Mr.
Sinha, however, places reliance upon the following recital in Ex. Y-13 and
contends that the arrangement was not final. The recital runs thus:
"That
in pursuance of and for the purpose of this deed the First and the Third Party do
admit and recognise Babu Gopi Nath, the Second party to be the son of Musammat
Peari Bibi the own sister of the late Munshi Kanhaya Lal and the daughter of
Musammat Kadma Kuar the First Party; and similarly for the purposes of and in
pursuance of this deed, the First and the Second party admit and recognise the Third
party as the sons of Dewan Madan Gopal a great-grandson of M. Lalji, the greatgrand
father of M-Kanaya Lal as per pedigree set up by them in suits Nos. 53 and 54
of 1932--referred to above. Provided always that if the rights of the second or
the third party to the ownership and possession of their respective properties
as detailed in List 'A' items Nos. 1 to 5 and seven, in List 'B' item Nos. 1,
2, 4, 5 and 8 respectively are ever questioned they shall not be precluded from
setting up any claim, right or title, propositions of law or fact consistent or
inconsistent with the recital of this deed, and if the rights of ownership or
possession of the second party to item No. 6 in List 'A' annexed hereto or the
rights of ownership or possession of the third party to items Nos. 3.6 and 9 in
List 'B' annexed hereto are ever questioned they shall only be entitled to set
up claims only consistent with the terms of this deed." No doubt, the
recognition of relationship claimed' by the second pary to Kanhaiyalal was
admitted by the first and third parties in pursuance and for the purposes of
the deed. Similarly recognition of the relationship of the. third party by the
first and the second parties to Kanhaiyalal was admitted by the first and'
second parties and: also in pursuance and for the purposes of the deed. This,
however, does not show that the settlement arrived at and sought to be given
effect to by the deed was not intended to be final. As already stated, the
document read as a whole leaves no doubt that it was intended to be a final
settlement of the disputes amongst the parties. If it were intended to be otherwise
it would have been natural to find an express statement somewhere in the
document to show that it was intended to be a temporary settlement only. The
proviso to the aforesaid clause was pressed in aid by Mr. Sinha to support his
contention that the settlement was only temporary. The document itself was
drawn up in English and looking at the formal manner in which it is drawn up and
bearing also in mind the fact that it came into being when litigations were,
pending in court in which the parties to the deed also figured as parties and was
intended to compromise those suits, it would be legitimate to infer that it was
drawn up or at least approved by a lawyer. In that proviso at one place the
word "recitals" and at another the word "terms" were used.
The expression "recitals" occurs in the first part of the proviso and
it is only with respect to them that a party is given the liberty to set up in
a certain circumstance "any claim or right or title, propositions of law
or fact consistent or inconsistent with the recitals in the deed". Now the
expression "recitals" means, according to the Dictionary of English
Law by Jowitt: "Statements in a deed', agreement or other formal
instrument, introduced to explain or lead up to the operative part of the
instrument." It is stated further that recitals are generally divided into
narrative recitals which set forth the facts on which the instrument is based
and introductory recitals which explain the motive for the operative part.
Where the recitals are clear and the operative part is ambiguous the recitals
govern the construction. Normally a recital is evidence as against the parties
to the instrument and those claiming under them and in an action on the
instrument itself the recitals operate as an estoppel, though that would not be
so on a collateral matter. It is not clear why this clause was put in. But even
if we assume that the parties did so because they were apprehensive that the
rights of the second or the third party to the ownership and possession of the
respective properties--that is items 1 to 5 and 7 in List A allotted to the
second party and items 1, 2, 4, 5 and 8 in List B allotted to the third party
were liable to be challenged by persons not bound by the settlement the
reservation was only of the right to challenge the explanatory or narrative
recitals in the documents but not of the right to challenge the terms thereof.
It therefore affords little assistance to the plaintiff. The expression
"terms" used in a document, would, according to webster's New World'
Dictionary, mean "conditions of a contract, agreement sale etc. that limit
or define its scope or action involved." Those parts of Ex-13 which
prescribe the conditions upon which the disputes among the parties were settled
would be the terms of this document and so far as these are concerned the
proviso shows that none of the parties was given the liberty to derogate from
them. Thus, far from showing that the settlement arrived at was of a temporary
character the proviso read as a whole further fortifies the conclusion that the
settlement was to be binding upon the parties for all time. We may add that the
contentions now raised on behalf of the plaintiff denying the rights of
Gopinath and of those who claim through him are not based upon any challenge to
the "recitals" in the documents, as that expression is understood in
law, but to the terms and conditions contained in that document. It may be that
the properties to which the suit relates would' fall under the items allotted
to Gopinath as specified in the first part. of the proviso but no liberty has
been reserved therein to permit any of the parties to derogate from the terms
and conditions upon which the settlement was arrived at. The view that the
transaction is a family arrangement is borne out by the decision of the Privy
Council in Ramgouda Annagouda v Bhausaheb(1). The facts of the case which have
been correctly summarised in
the head note are briefly these: "A Hindu died in 1846, leaving a widow
who survived until 1912, and a daughter. On the death of the widow A was heir
to the estate. In 1868 the widow had alienated nearly the whole property by
three deeds executed and registered on the same day. By the first deed she gave
a property to her brother, by the second she sold half of another property to
A, and by the third she sold the other half of that property to her son-in-law.
The signature of each of the deeds was attested by the two other aliences. A
who survived the widow for six years, did not seek to set aside any of the alienations.
After his death his son and grandsons brought a suit to recover the whole property."
Upon
these facts the Privy Council held as follows:
"Their
Lordships consider that the decision of this case depends upon how far the three
documents can be taken as separate and independent, or so connected as to form
one transaction. The long lapse of time between the execution of the deeds and
the institution of the suit has rendered it impossible to prove what actually
occurred between the parties on
that occasion. There is not sufficiently definite evidence to come to a
conclusion as to how far any of those properties were validly encumbered, or
what was done with the purchase money alleged to have passed on the two deeds
of sale. But the parties to the documents included, or after so great a lapse
of time may be presumed in a very real sense to have included, all persons who
(1) L.R. 54 I.A. 396. LP(D)5SCI---17 had any actual or possible interest in the
properties-namely, the widow herself, her brother, who was a natural object of
her affection and bounty, her son-inlaw, who was the natural protector of the
interests of her daughter and grandson, and the nearest kinsman on the
husband's side and the only person from whom any opposition might be
apprehended with regard to dealings by the widow concerning her husband's
estate.
Their
Lordships conclude that all the circumstances strongly point to the three documents
being part and parcel of one transaction by which a disposition was made of
Akkagouda's estate, such as was likely to prevent disputes in the future and therefore
in the best interests of all the parties. The three deeds appear thus to be inseparably
connected together and in that view Annagouda not only consented to the sale of
Shivgouda and the gift to Basappa but these dispositions formed parts of the
same transaction by which he himself acquired a part of the estate." In
our case, however, there is fortunately only one transaction and we have
definite evidence to show that there were disputes amongst the members of the
family and it was avowedly for settling them that the transaction was entered
into. Further we have material to show that all the persons who can be said' to
be interested in the property were joined as parties to the transaction. In
that sense this case is stronger than the one which the Privy Council had to
consider. We have therefore no hesitation in holding that the plaintiff who has
taken benefit under the transaction is not now entitled to turn round and say
that that transaction was of a kind which Kadma Kuar could not enter into and
was therefore invalid.
Moreover
acting on the terms of that document Gopinath paid monies to the Court of Wards
for obtaining release from its management of the properties which were allotted
to him. The rule of estoppel embodied in s. 115 of the Indian Evidence Act,
1872 would, therefore, shut out such pleas of the plaintiff. Courts give effect
to a family settlement upon the broad and general ground that its object is to
settle existing or future disputes regarding property amongst members of a
family. The word 'family' in the context is not to be understood in a narrow
sense of being a group of persons who are recognised in law as having a right
of succession or having a claim to a share in the property in dispute. In Ramgouda
Annagouda's(1) case, of the three parties to the settlement of a dispute concerning
the property of a deceased person one was his widow, other her brother and the
tlhird her son-in-law. The two latter could not, under the Hindu Law, be
regarded' as the (1)L.R. 54 I.A. 396. heirs of the deceased. Yet, bearing in
mind their near relationship to the widow the settlement of the dispute was
very properly regarded as a settlement of a family dispute. The consideration
for such a settlement, if one may put it that way, is the expectation that such
a settlement will result in esablishing or ensuring amity and goodwill amongst
persons bearing relationship with one another. That consideration having been
passed by each of the disputants the settlement consisting of recognition of
the right asserted by each other cannot be permitted to be impeached
thereafter. The final contention of Mr. Sinha is based upon s. 37(a) of the
U.P. Court of Wards Act, 1912. The relevant portion of this provision runs
thus:
"A
ward shall not be competent-
(a)
to transfer or create any charge on, or interest in, any part of his property
which is under the superintendence of the Court of Wards, or to enter into any
contract which may involve him in pecuniary liability; ................ "
Here
the transaction in question is a family settlement entered into by the parties
bona fide for the purpose of putting an end to the dispute among family
members. Could it be said that this amounts to a transfer of or creation of an
interest in property? For, unless it does, the action of Kadma Kuar would not
fall within the purview of the aforesaid clause of s. 37. In Mst. Hiran Bibi v.
Mst. Sohan Bibi(1) approving the earlier decision in Khunni Lal v. Govind
Krishna Narain(2) the Privy Council held that a compromise by way of family
settlement is in no sense an alienation by a limited* owner of family property.
This case, therefore, would support the conclusion that the transaction does
not amount to a transfer. Mr. Sinha, however, contends that the transaction
amounts to creation of an interest by the ward in property which was under the
superintendence of the Court of Wards and in support of his contention relies
on Man Singh v Nowlakhbati(3). In the first place once it is held that the
transaction being a family settlement is not an alienation, it cannot amount to
the creation of an interest. For, as the Privy Council pointed out in Mst.
Hiran Bibi's(1) case in a family settlement each party takes a share in the
property by virtue of the independent title which is admitted to that extent by
the other parties. It is not necessary, as would appear from the decision in
Rangasami Gounden v. Nachiappa Gounden(4) that every party taking benefit under
a family. settlement must necessarily be shown to have, under the law, a claim
to a share in the property. All that is necessary is that the parties must be
related to one another in some way and have a possible claim to the property or
a claim or (1) A.I.R. 1914 P.C. 44.
(2)
IL..R. 33. An. 356. (3) L.R. 53 I.AII. (4) L.R. 46 I.A. 72 even a semblance of
a claim on some other ground as, say, affection. In the second place, in the
case relied upon by Mr. Sinha there was no question of the transaction being a family
settlement. It was sought to be supported upon the ground that it was a
surrender. The Privy Council, however, held that it was not a bona fide
surrender evidently because the widow was to get a very substantial amount for
maintenance from the reversioners in whose favour she had purported to
surrender the estate and also held that there was in fact no necessity for a
surrender of interest of the widow. Since it was not a bona fide surrender it
was regarded as one creating only an interest in the property which was under
the superintendence of the Court of Wards. Had' it been a bona fide surrender
s. 60 of the Bihar Court of Wards Act upon which reliance was placed in that
case would not have been attracted. Indeed, reliance was placed before the
Privy Council on the decision in Sureshwar Misser v. Maheshrani Misrain(1) in
support of the appellant's contention that the transaction was valid. While
distinguishing this case the Privy Council observed:
"In
that case there were serious disputes in the family as to title, and the next reversioners
to the son sued the widow and her daughters to set aside the will of her husband
under which the daughters were entitled to succeed to the immovable property on
the death of the son without issue. A family compromise was agreed to, and in
performance of it the widow surrendered all her rights of sucession to the immovable
property, and the plaintiff the next reversioner and her daughters gave her for
her life a small portion of the land for her maintenance. The Board held that the
compromise was a bona fide surrender of the estate and not a device to divide
it with the next reversioner, the giving of a small portion of it to the widow
for her maintenance not being objectionable, and' consequently that the
transaction was valid under the principles laid down by the board in Rangasami
Gounden v Nachiappa Gounden (L. R. 46 I.A. 72)".
We
may further point out that this decision does not refer to their decisions in
Mst. Hiran Bibi v Mst. Sohan Bibi(2) and Khunni Lal v. Govind Krishna Narain(3)
and it cannot be assumed that they intended to depart from their earlier view.
Apart
from that it may be pointed out that the two suits which were then pending were
compromised with the full knowledge of the Court of Wards which was also a
party to both the suits and (1) L.R. 47 I.A. 233. (2) A.I.R. 1914 P.C. 44. (3)
.I.L.R. 33 All. 356. the Court of Wards in fact released the estate by
accepting from Gopinath monies which were due to it. In these circumstances we
hold that the plaintiff is not entitled to press in aid the provisions of s. 37(a)
of the U.P. Court of Wards Act. For all these reasons we uphold the decree of
the trial Court as affirmed by the High Court and dismiss the appeal with costs
throughout.
Appeal
dismissed.
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