S. Shanmugam Pillai And Ors vs K. Shanmugam Pillai
Supreme
Court of India
S.
Shanmugam Pillai And Ors vs K. Shanmugam Pillai And Ors on 4 May, 1972
Equivalent
citations: 1972 AIR 2069, 1973 SCR (1) 570
Author:
K Hegde
Bench:
Hegde, K.S.
PETITIONER:
S.
SHANMUGAM PILLAI AND ORS.
Vs.
RESPONDENT:
K.
SHANMUGAM PILLAI AND ORS.
DATE
OF JUDGMENT04/05/1972
BENCH:
HEGDE,
K.S.
BENCH:
HEGDE,
K.S.
GROVER,
A.N.
CITATION:
1972
AIR 2069 1973 SCR (1) 570
CITATOR
INFO :
R
1976 SC 807 (18,42)
R
1976 SC1715 (12)
R
1980 SC 312 (5)
RF
1992 SC1110 (33)
ACT:
Hindu
Law-Widow's estate-Family arrangement-Alienation by widow-When reversioners
precluded from challenging alienation-Charitable Trust-Tests for determining
whether
dedication
complete or partial.
HEADNOTE:
The
last male-holder endowed some of his properties for a charity the management of
which was hereditary. His widows alienated the properties inherited by them
including the properties endowed. The appellants, as reversioners, filed a suit
for setting aside the alienations and claiming the endowed properties as
'huqdars. The High Court dismissed the suit. HELD, dismissing the appeal, that
the appellants were precluded from questioning the alienations of the properties.
(i) Equitable principles such as estoppel, election and family settlement are
not mere technical rules of evidence. They have an important purpose to serve
in the administration of justice and their scope should not be narrowed
down. An alienation by a Hindu widow is voidable and not void. A reversioner to
the estate of a deceased separated Hindu, who has expressly assented to an
alienation of property forming part of the estate, made by the widow in
possession, cannot on succeeding to the estate after the widow's death repudiate
his action and sue for possession of the property alienated by the widow. If
the presumptive reversioner is a minor at the time he has taken a benefit under
the transaction, the principle of estoppel will be controlled by another rule
governing the law of minors. A minor cannot be compelled to take the benefit of
a transaction which will have the effect of depriving him of his legal rights
when the succession opens. But a minor can, after attaining majority, ratify
the transaction entered into on his behalf by his guardian. If he so ratifies
the transaction entered into by his guardian and accepts the benefit
thereunder, there cannot be any. difference in the application of the principle
of election. If the original transaction conferring
the benefit was in favour of the minor his enjoyment of the benefit after
attaining the majority may in itself be a sufficient act of ratification. [578
D-G] Krishna Beharilal v. Gulab Chand, [1971] 1 S.C.C. 837, T. V. R. Subbu
Chetty's Family Charities v. M. Raghava Mudaliar and Ors., [1961] 3 S.C.R. 624,
Fateh Singh v. Thakur Rukmini Pamanit
Maharan, I.L.R. XIV All . 339 Jagarlpudi Seetharamayya v. Sarva Chandralya
[1954] 2 M.L. J. 162, Makineni Virayya v. Madamanchi Sapayya, [1964] 1 M.L.J.
276,
and
Ramgouda Annagouda v. Bhausaheb, 54 I.A. 396, referred to.
Further,
if a person having full knowledge of his right as a possible reversioner enters
into a transaction which settles his claim as well as the claim of the
opponents at the relevant time he cannot be permitted to go back on that agreement
when reversion actually falls open. Although conflict of legal claims in
present or in future is generally a condition
for the validity of family arrangements it is not necessarily so. Even bona We
disputes, present or possible, which may not involve legal claims would be
sufficient. Members of a Joint Hindu family may, to maintain peace 571 or to
bring about harmony in the family, enter into such a family arrangement. If
such an agreement is entered into bona
fide and the terms thereto are fair in the circumstances of a particular case,
the courts would more, re-adily give assent to such an agreement than to avoid
it. [580 D, 581A] Sahu Madho Das v. Pandit Mukand Ram, [1955] 2 S.C.R. 22, Maturi
Pullaiah v. MaturI Narasimhan, A.I.R. 1966 S.C. 1836 and Krishna Beharilal v.
Gulab Chand, [1971] 1 S.C.C. 837, referred to. (ii)
A dedication of a property to religious or charitable S. Shanmugam Pillai And
Ors vs purposes may be either complete
or partial. If the dedication is complete a trust in favour of a charity is created.
If the dedication is partial, a trust in favour of a charity is not created but
a charge in favour of charityis attached to, and follows the property which
retains its original private and secular character. Whether or not a dedication
is complete would naturally be a question of fact to be determined in each case
on the terms of the relevant document if the dedication in question was made
under a document. If the income of the property is substantially intended to be
used for the purpose of a charity and only an insignificant and minor portion
of the income is expected or required to be used and a substantial or the
manager, it may be possible to take the view that dedication is complete. If on
the other hand, for the maintenance of charity a minor portion of the income is
expected or required to be used and a substantial surplus is left in the hands
of the manager or worshipper for his own private purposes, it would be difficult
to accept the theory of complete dedication. In the present case the appellants
failed to establish that the dedication was complete. The dedication being only
partial the properties retained the character of private properties and
therefore the widows had a beneficial interest in those properties.. [582 D-H] Menakuru
Dasaratharmal Reddi v. V. Duddukuru Subha Rao , A.I.R. 1957 S.C. 797. referred
to.
JUDGMENT:
CIVIL
APPELLATE JURISDICTION : Civil Appeal No. 693 of 1967. Appeal from the judgment
and decree dated November 10, 1966 of the Madras High Court in Appeals Nos. 245
and 530 of 1961. M. C.Chagla and B. R. Agrawala, for the appellant. S. T.
Desai, K. R. Nagaraja, D. P.Mohanthy and S. Gopala- kishnan, for the
respondents Nos. 1, 3 and 4. The Judgment of the Court was delivered by Hegde,
J.-This is a plaintiffs' appeal by certificate. The plaintiffs sued for
possession of the properties described in Sch. I and IV of the plaint as
reversioners of one V. Rm. Shanmugam Pillai who admittedly was the last male
holder of those properties as well as several other properties. They also
claimed past and future mesne profits in respect of those properties.
Properties detailed in Sch. 1 were said to have been endowed for a charity by
name Annadhana Chatram Charity. The plaintiffs claimed possession of those
properties as "Huqdars". They claimed possession of Sch. IV properties
as reversioners. The trial court decreed the plaintiffs' claim in part. It gave
a decree in favour of the plaintiffs in respect of plaint Sch. 1 properties but
dismissed their claim regarding Plaint-Sch. IV properties. Both the parties
appealed Against the judgment and decree of the trial court. The High Court
allowed the appeal of the defendants and dismissed that of the plaintiffs. In
the result the entire suit was dismissed. In order to examine the various
contentions advanced at the hearing, it' is necessary to state in brief various
events that took place prior to the institution of the suit. One Ramalingam
Pillai was the owner of a substantial part of the suit properties. He had a
brother by name Kuppan Pillai. Ramalingam Pillai's wife pre-deceased him. He
had no children. Ramalingani Pillai and Kuppan Pillai had married sisters.
Ramalingam Pillai in 1898 but Kuppan Pillai had pre-deceased him. He had died
in 1894, leaving behind him his two daughters Palani Achi Ammal and Pichai
Ammal. Kuppan Pillai's wife had also predeceased Ramalingam Pillai. Ramalingam
Pillai had brought up his brother's daughters Palani Achi Ammal and Pichai
Amnial as his foster daughters. Before his death, Ramalingam Pillai had got
married Palani Achi Ammal to V. Rm. Shanmugham Pillai, his maternal uncle's son
by his first wife. The said Shanmugam Pillai was associated with Ramalingam
Pillai in his business. Du September 29, 1898 Ramalingam Pillai executed a
settlement deed (Ex. A-2) settling his properties principally on Palani Achi
Ammal, Pichai Ammal and Shanmugam Pillai Under that dead, he gave some
properties to his deceased wife's sister's son, Subramania Pillai. Subramania
Pillai was the son of Chitravadavammal, sister of the wives of Ramalingam
Pillai and Kuppan Pillai. Under Ex. A-2 Plaint-Sch. I properties except item
No. 4. were set apart for charities which Ramalingam Pillai was carrying on.
Under that document Shanmugam Pillai was declared "Huqdars" of the
afore mentioned Annadhana charity. The Huqdarship was to be hereditary in the family
of Shammugam Pillai. Ramalingam died very soon after executing Ex. A-2. After
the-death of Ramalingam Pillai, Shanmugam Pillai took as his second wife Pichai
Ammal, the sister of his first wife Palani Achi Ammal. While managing the
Annadhana Charities, Shanmugam Pillai acquired ' item No. 4 of Sch. T. and
treated that property as that of the Charity. Shanmugam Pillai had no issues.
He had executed a will on December 19, 1926. It was a registered will. That
will be revoked on December 29, 1926. He died on December 31, 1926. After his
death, his widows put forward another will said to have been executed by him on
December 30, 1926 under which substantial bequests were made to Shanmugam
Pillai known as Vendor Shanmugam Pillai, the step brother of V. Rm. Shamnugam
Pillai as well as to his step sisters Irulammai and her husband Subramania Pillai.
5 73 On September 29, 1898, the widows of V. Rm. Shanmugam Pillai and Vendor
Shanmugar Pillai, his sister Irulammai and her husband Subramania Pillai
entered into a registered agreement styled as "agreement of peaceful
settlement". This document is marked as Ex. B-2. To that document Vendor
Shanmugam Pillai's sons, the present plaintiffs 1 and 2 were also parties. At
that time, they were minors. They were represented by their father Vendor
Shanmugam Pillai. Ex. A-2 primarily affirms the alleged will said to have been
executed by V. Rm. Shanmugam Pillai on December 30, 1926. As per the agreement
entered into under Ex. B-2, Vendor Shanmugam Pillai obtained possession of
various items or properties left behind by V. Rm. Shanmugam Pillai. In his turn
he admitted that the widows of V. Rm. Shanmugam Pillai were the absolute owners
of. the properties said to have 'been bequeathed to them under the alleged will
dated December 30, 1926.. Ex. B-2 purports to be a' family arrangement. In that
deed Vendor Shanmugam Pillai acknowledged the right of the widows to manage the
charities and pass on that right to others.
Shortly
after the execution of Ex. B-2, the senior widow Palani Achi Ammal filed a suit
for partition of the properties mentioned in Ex. B-2. That suit was decreed.
Thereafter on July 20, 1931, the senior widow settled the properties that she
got as her share under the partition decree Ex. B-3 on Kanthimathimatha Pillai,
his wife Pichai Ammal and their minor daughters as per the registered settlement
deed Ex. B-3. This Pichai Ammal is the daughter of Subramania Pillai son of the
original settlor's wife's sister Chitravadamal. The two widows Palani Achi
Ammal and Pichai Ammal had brought up Pichai Ammal daughter of Subramania
Pillai as their foster daughter and had got her married to the aforesaid
Kanthimathinatha Pillai. The settlement proceeds on the basis that Palani Achi
Ammal is absolutely entitled to the properties settled. Thereafter the junior
widow Pichal Ammal
settled the properties that she got under the partition decree in favour of
Palani Pillai, the 4th defendant in the suit, as per the registered settlement
deed Ex. B-4 dated December 20, 1937. Palani Pillai is the son of
Kanthimathinatha Pillai. He is referred to in the settlement deed as the second
son of the foster daughter of the widows, Pichal Ammal. After the execution of
Ex. B-2, Sankaralingam Pillai, brother of Vendor Shanmugam Pillai who was not a
party to Ex. B-2 filed a suit for declaration that the alleged will dated
December 30. 1926 is a forged document. The suit was decreed. The trial court
held the will put forward to be a forgery. Palani Achi Ammal and Pichai Ammal
were defendants in that suit. The defendants appealed against the decision of
the trial court.
When
the matter was pending in appeal in the High Court Sankara- lingam Pillai died.
Thereafter the third plaintiff who was his adopted son was brought on record as
the legal representative of Sankaralingam Pillai. He was represented by his
guardian Meenakshi Ammal. That appeal was dismissed. The High Court came to the
conclusion that on the evidence on record, it was not satisfied about the
genuineness of the will. The present third plaintiff became major in 1938. Even
after obtaining a decree in his favour in the will suit, the third plaintiff
entered into an agreement with the two widows on October 27, 1938 (Ex. B-5).
Under this deed he took substantial properties and acknowledged the absolute
right of the widows as regards the other properties detailed therein. It may be
noted that by the time Ex. B 5 came to. be executed alienations in favour of
Defendants 1 to 4 had already taken place. Under Ex. B-5, the third plaintiff
also acknowledged the right of those defendants who were also parties to that
deed, to the properties settled on them. Further under that document the third
plaintiff acknowledged the right of the two widows and defendants 1 to 4 to manage
the properties set apart for charities. We have earlier mentioned that at the
time Ex. B-2 was executed, plaintiffs 1 to 2 were minors. As seen earlier, the
father of the plaintiffs had secured for himself and for is sons several items
of properties under that agreement. The first plain tiff became major on
January 10, 1931 Thereafter he, on his own behalf and as the guardian of his
minor brother joined his aunt, Irulammal in partitioning the properties jointly
obtained by them under Ex. B-2. Ex. B- 10 dated October 11, 1931 is a
settlement deed executed by the first plaintiff for himself-and as the guardian
of his brother, the second plaintiff settling some of the properties obtained
under Ex. B-2 on their sister. The second plaintiff after becoming a major
joined with the first plaintiff in conveying an item of property secured under
Ex. B-2 in favour of one Subbiah Konar (Ex. B-11). Plaintiffs 1 and 2 effected
various alienations under Ex. B-12, B-15 and B-16 to B-42 of the properties
obtained by them under Ex. B-2. All these transactions proceeded on the basis
that the arrangement entered into under B-2 as was valid one. Those
transactions show that plaintiffs 1 and 2 ratified the arrangement made under
Ex. B-2. The third plaintiff in his turn alienated several items of the
property obtained by him under Ex. B-5. On October 16, 1939, he sold some
portions of that property under Ex. B-34 for Rs. 4,000/-. Again under Ex. B-36,
he sold some other items on July 13, 1953 for a sum of Rs. 25,000/-. He also
effected certain exchanges under Ex. B-34 and B-35., All these transactions
proceeded on the basis that the arrangement made under Ex. B-5 was a valid one.
Having set out the course of events, we shall now examine whether it is open to
the plaintiffs to challenge the alienations effected in favour of D-1 to D-4.
We shall first take up the question whether the
alienation of the Plaint-Sch. IV properties by Palani Achi Ammal and Pichai
Ammal is open to challenge. There is now no dispute that these two widows had
only widows' estate in the properties left by their husband. The impugned
alienations were not effected to meet any necessity of the estate of the
deceased last male holder. Hence prima facie, the impugned alienations, are not
binding on the reversioners. But it is now well settled that an alienation by a
Hindu widow is only void-able and not void. The reversioners may or may not
choose to avoid the same,-see Ramgouda Annagouda and ors. v. Bhausaheb and ors.
(1) and T. V. R. Subbu Chetty's Family Charities v. M. Raghava Mudaliar and
ors(2). Both the trial court as well as the appellate court have come to the
conclusion that the plaintiffs are not entitled to avoid the alienations in
question either on the ground of estoppel or election.
So
far as the third plaintiff is concerned, he is clearly estopped from
challenging those alienations made. As seen earlier even after the High Court
came to the conclusion that the will put forward by the widows is not proved to
be genuine, he entered into an agreement with those widows under which he
obtained some properties as absolute owner. In his turn he acknowledged the
right of the widows to the remaining properties including those that had been
alienated in favour of defendants 1 to 4. As seen earlier by the time Ex. B-5.
came to be executed on October 27, 1938, the alienations in favour of
defendants 1 to had taken place. D-1 to D-4 were parties to Ex.-B-5. It is
clear from Ex. B- 5 that the, third plaintiff was aware of those alienations.
In Ex. B-5, he accepted the validity of those alienations. In other words with
full knowledge of facts the third plaintiff represented to the widows as well
as to defendants 1 to 4-that he accepts the validity of the alienations in
favour of defendants 1 to 4. By doing so he secured immediate advantage of
getting possession of fairly extensive properties which he would not have
otherwise got till the death of the two widows. Hence he is clearly estopoed
from contesting the validity of the alienations in favour of defendants 1 to 4.
The claim of the third plaintiff may be examined from another angle. It is seen
from the record that within about a month of the decision of the High Court in
the litigation relating to the will, the guardian of the third plaintiff
entered into a compromise (1) 54 I.A. 396. (2)
[1961] 3 S.C.R. 624. with the two widows possibly with a view to avoid further
litigation. Evidently in pursuance, of that agreement Ex. B-5 came to be
executed after the third plaintiff became a major. Hence Ex. B-5 can be
considered as a family settlement. That is not all. As seen earlier after he
became a major, on the strength of Ex. B-5, he alienated several items of
property obtained by him under that document. We shall presently examine the
relevant decisions but at present it is sufficient to say that the third plain-
tiff is precluded from challenging the validity of the alienation made in
favour of defendants 1 to 4. Let us now examine whether plaintiffs 1 and 2 can
challenge the alienations made in favour of defendants 1 to 4. The trial court
has come to the conclusion that they are estopped from challenging the validity
of the alienations in favour of defendants 1 to 4 in respect of the properties
mentioned in Plaint-Sch. IV. The High Court has affirmed that. decision on the
ground that after they became majors they had elected to stand by Ex. B-2.
Hence they cannot challenge the alienations in question. We have earlier seen
that very soon after the death of V. Rm. Shanmugam Pillai, the father of the
plaintiffs, Vendor Shanmugam Pillai on his own behalf and as the guardian of
plaintiffs 1 and 2 entered into an agreement with the widows of V. Rm.
Shanmumugam Pillai (Ex. B-2). Under that agreement he secured immediate
possession of considerable properties for himself and his minor sons,
plaintiffs 1 and 2. Under Ex. B-2, Vendor Shanmugam Pillai by implication,
admitted the genuineness of the alleged will of V. Rm. Shanmugam, Pillai which
was ultimately found to be not genuine by the High Court as seen earlier. But
for the agreement under Ex. B-2 Vendor Shanmugam Pillai would not have got any
portion of the properties left by V. Rm. Shanmugam Pillai during the life time
of the widows of V. Rm. Shanmugam Pillai. It was said that at the time when Ex.
B-2 was entered into V. Rm.Shanmugam Pillai might not have been aware of the
fact that the will put forward by the widows was not a genuine one. Our
attention was invited to the finding of the trial court that Ex. B-2, was a
part of a scheme on the part of the widows of V. Rm. Shanmugam Pillai and
Vendor Shanmugam Pillai to defeat the claims of Sankarlingam Pillai, the father
of the third plaintiff. It is true that the plaintiffs who were minors on the
date of Ex. B-2 would not have been bound by the agreement contained therein if
they had not chosen to stand by it. It was oven to them on attaining majority
either to stand by the agreement or renounce the same. By the time they attained
majority, the will case had been decided by the High Court. It is reasonable to
assume that they
were aware of the fact that the High Court had come to the conclusion that the
will put forward was not genuine. Therefore it was open to them to denounce the
agreement under Ex. B- 2,But they did not choose to do so. On the other hand
they not only continued to enjoy the properties that they and their father got
under Ex. B-2 but also went on allienating various items of those properties,
see Ex. B-9, B-10, B-11, B-12, B-15 and B-16 to B-42. From these transactions,
it is clear that plaintiffs 1 and 2 ratified the agreement entered into under
Ex. B-2. It is also reasonable to hold that after becoming majors instead of
renouncing the benefit obtained under Ex. B-2, they elected to stand by that
agreement and retained the benefit obtained under that docu- ment. Ex.
B-2 and B-5 read together may also be considered as con- stituting a family
arrangement. The plaintiffs and the widows of V. Rm. Shanmugam Pillai are near
relations. There were several disputes between the parties. The parties must
have thought it wise that instead of spending their money and energy in courts,
to settle their disputes amicably. The father of plaintiffs 1 and 2 and later
on the plaintiffs were only presumptive reversioners, so also was the third
plaintiff. None of them had any vested right in the suit properties till the
death of the widows. Hence first the father of plaintiffs 1 and 2 and later on
the plaintiffs must have thought that a bird in hand is worth more than two in
the bush. If in the interest of the family properties or family peace the close
relations had settled their disputes amicably, this court will be reluctant to
disturb the same. The courts generally lean in favour of family arrangements.
Equitable
principles such as estoppel, election, family settlement etc. are not mere
technical rules of evidence. They have an important purpose to serve in the
administration of _justice. The ultimate aim of the law is to secure justice.
In recent times in order to render justice between the parties, courts have
been liberally relying on those principles. We would hesitate to narrow down
their scope.
Now
let, us proceed to consider the decided cases read to us at the hearing of the
appeal.
In
Fateh Singh v. Thakur Rukmini Ramanji Maharaj(1), a Full Bench, of the
Allahabad High Court held that a reversioner to the estate of a deceased
separated Hindu, who has expressly assented to an alienation of property
forming part of the estate, made by the widow in possession, cannot on succeeding
to the estate after the widow's death repudiate his action and sue for
possession of the property alienated by the widow. The ratio of that decision
clearly applies to the claim made by the third plaintiff in this case.
In
Jagarlapudi Seetharamayya v. Sarva Chandrayya and ors.,(1) Andhra Pradesh High
Court was Called upon to consider a claim somewhat similar to that made by
plaintiffs 1 and 2. Therein the court ruled that during the life time of the
widow a presumptive reversioner has only a Spec successionis in the estate of
the last mate holder and he cannot, therefore, purport to convey the Said
interest or otherwise deal with it. His rights in the property would be
crystallised only after succession opens.. But after succession opens or even
during the widow's life time he may elect to stand by the transaction entered
into by the widow or otherwise ratify it, in which case he would be precluded
from questioning the transaction. Proceeding further the court enumerated the
three classes of estoppels that may arise for consideration in dealing with
reversioner's challenge to a widow's alienation. They are : ( 1 ) that which is
embodied in s. 1 1 5 of the Evidence Act, (2) election in the strict sense of
the term whereby the person electing takes a benefit under the transaction and (3)
ratification, i.e., agreeing to abide by the transaction. A presumptive
reversioner coming under any one of the aforesaid categories is precluded from
questioning the transaction, when succession opens and when he becomes the
actual reversioner. But if the presumptive reversioner is a minor at the time
he has taken a benefit under the transaction, the principle of estoppel win be
controlled by another rule governing the law of minors. A minor obviously
cannot be compelled to take the benefit of a transaction which will have the
effect of depriving him of his legal rights when the succession opens. But a
minor can certainly after attaining majority ratify the transaction entered
into on his behalf by his guardian. If he so ratifies the transaction entered
into by his guardian and accepts the benefit thereunder, there cannot be any
difference in the application of the principle of election. The effect would be
the same. It is as if he was a major at the time the transaction was affected
and the benefit was conferred on him. What he could not do at the time of the
transaction must be deemed to have been done by him by his act of ratification.
It may be that on attaining majority he as the option to disown the transaction
and disgorge the benefit or to accept it and adopt it as his own. Whether after
attaining majority the quandum minor accepted the benefit or disowned it, is a question
to be decided on the facts. of each case.
In
the course of the judgment Subba Rao C.J. (as he then was) dealing with the
case of persons who were minors at the time the transaction was entered into
observed "The mere act of succession to the father may not amount to
ratification as the son's enjoyment is consistent (1) [1954] 2, M.L.J. P. 162. with
his right of inheritance to the father. But he can either expressly or by
necessary implication ratify the transaction entered into by the father. But if
the original transaction conferring the benefit was in favour of the minor,
different considerations would arise. His enjoyment of the benefit after attaining
majority may in itself be a sufficient act of ratification."
In
support of the contention that the plaintiffs are not estopped which expression
includes not only the estoppel proper but also "election" Mr. M. C.
Chagla, learned Counsel for the appellants relied on the decision of a Division
Bench of the Madras High Court in Makineni Virayya and ors. v. Madamanchi
Bapayya(1). On the facts of that case, the learned judge came to the conclusion
that the plaintiffs- reversioners in that case were not estopped from claiming
the suit property on the death of the widow. But in the course of his judgment,
after examining several decisions Patanjali Sastri J. (,as he then was)
speaking for the Court observed "These decisions will be found on
examination to proceed on the principle that an allienation by a Hindu widow
without justifying necessity is not void but only voidable at the instance of
the reversionary heir who may either affirm or avoid it, but will be precluded
from questioning it if he does something which amounts to an affirmation of the
transaction. Such election to hold the sale good, as it has sometimes been
expressed, may, it has been held, take place even before the death of the widow
while the reversionary heir was only a presumptive reversioner." In our
opinion this decision instead of helping the, plaintiffs definitely supports
the contentions of the defendants. It was urged on behalf of the plaintiffs
that it was not permissible for the father of the plaintiffs 1 and 2 as well as
the third plaintiff to transfer their contingent interest as remote
reversioners; hence we must hold that the transactions entered into under Exs.
B-2 to B-5 were wholly void. This contention can best be answered by quoting a
passage from the decision of the Judicial Committee in Ramgouda Annagouda's
case ( 2 ). Therein repelling a similar contention the Judicial Committee observed
"It was argued that Annagouda's contingent interest as a remote
reversioner could not be validly sold by him, as it was a mere spec succession
is, and an agreement to sell such interest would also be void in law. It is not
necessary to consider that question because he did not (1) [1946] 1, M.L.J.
276.
(2)
54 I.A. 396. in fact either sell or agree to sell his reversionary interest. It
is settled law that an alienation by a widow in excess of her powers is not
altogether void but only voidable by the reversioners, who may either singly or
as a 'body be precluded from exercising their right to avoid it either by
express ratification or by acts which treat it as valid or binding." It is
true that a widow cannot enlarge her own estate by entering into a contract.
But as observed by this Court. in Krishna Beharilal V. Gulab Chand(1):
"It
is well settled that a Hindu widow cannot enlarge her estate by entering into a
compromise with third parties to the prejudice of the ultimate reversioner. But
the same will not be true if the, compromise is entered into with persons who
ultimately become the reversioners." As observed by this Court in T. V. R.
Subbu Chetty's Family Charities Case (supra), that if a person having full knowledge
of his right as a possible reversioner enters into a tra nsaction which settles
his claim as well as the claim of the opponents at the relevant time, he cannot
be permitted to go back on that agreement when reversion actually falls open.
The
application of the tests laid down in the above decisions leads to the firm
conclusion that, the plaintiffs are precluded from questioning the alienations
of the various items of property covered by Sch. IV of the plaint. Now turning
to the plea of family arrangement, as observed by this Court in Sahu Madho Das
and ors. v. Pandit Mukand Ram and another(2), the Courts lean strongly in
favour of family arrangements that bring about harmony in a family and do
justicto its various members and avoid, in anticipation, future disputes which
might ruin them all. As observed in that case the family arrangement can as a
matter of law be inferred from a long course of dealings between the parties.
In Maturi Pullaiah and anr. v. Maturi Harasimhan and ors. this Court held that
although conflict of legal claims in presenti, or in future is generally a
condition for the validity of family arrangements, it is not necessarily so.
Even bona-fide disputes present or possible, which may not involve legal claims
would be sufficient. Members of a joint Hindu family may, to maintain peace or to
bring about harmony in the family, enter into such i (1) [1971] S.C.C 837. (3)
[1955] 2, S.C. R. 22, (2) A.I.R. 1966 S.C 1836. family arrangement. If such an
agreement is entered into bona. fide and the terms thereto are fair in the
circumstances of a particular case, the courts would more readily give assent
to such an agreement than to avoid it. In Krishna Beharilal's case (supra),
this Court observed: "The dispute between the parties was in respect of a
certain property which was originally owned by their common ancestor namely
Chhedilal. To consider a settlement as a family arrangement, it is not necessary
that the parties to the compromise should all belong to one family. As observed
by this Court in Ram Charan Das v. Girjanandini Devi and ors. [1965] 3, S.C.R.
841, the word "family" in the context of a family arrangement 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 $hare
in the property in dispute. If the dispute which is settled is one between near
relations then the settlement of such a dispute can be considered as a-family
arrangementsee Ramcharan Das]s case (supra)." Judged by the tests laid
down in these decisions, we can reasonably come to the conclusion that Ex. B-2
and B-5 read together brought about a family settlement. This leaves us with
the dispute relating to properties set out in Sch. I of the plaint. So far as
the properties set out in Sch. I of the paint are concerned, the High Court and
the trial court have reached different conclusions. The trial court held that
under Ex. A-2, Ramalingam Pillai had made a complete dedication of those
properties for charities and the management of the charities had been left to
V. Rm. Shanmugam Pillai and after him to his successors. On the basis of those
conclusions that Court held that the alienation of those properties is invalid
and not binding, on the plaintiffs. The High Court felt unable to come to any
firm conclusion on the evidence on record, as to whether the dedication made
under Ex. A-2 by Ramalingam Pillai was complete or partial. Further it came to
the conclusion that the plaintiffs are precluded from questioning the management
of those properties by defendants 1 to 4 in view of the various transactions
between the parties referred to earlier. It may be noted that the parties are
agreed that charities mentioned in Ex. A-2 have to be conducted in accordance
with the directions given in Ex. A-2. The only question is who should conduct
them. The further controversy between the parties is whether the dedication made
under Ex. A-2 is partial or complete.
We
agree with the High Court that the evidence on record is not satisfactory
enough to reach a firm conclusion as to the nature of the dedication.
Plaintiffs have failed to adduce acceptable evidence as regards the income of
the properties set apart for charities. That being so, even if we accept the estimate
made by the trial court regarding the expenses to be incurred for conducting
those charities, we have no basis to find out the extent of the surplus that is
likely to be left in the hands of the persons who manage those charities. Under
the-se circumstances it is not possible to come to the conclusion that under
Ex. A-2, Ramaligam Pillai had created a trust in respect of those properties
for conducting the charities mentioned in Ex. A-2. As observed by this Court in
Menakuru Dasaratharami Red-di and anr. v. Duddukuru Subba Rao and ors. (1) that
dedication or a property to religious or charitable purposes may be either
complete or partial. If the dedication is complete a tr ust in favour of ,a
charity is created. If the dedication is partial, a trust in favour of a charity
is not created but a charge in favour of the charity is attached to, and
follows, the property which retains its original private and secular character.
Whether or not a dedication is complete would naturally be a question of fact
to be determined in each case on the terms of the relevant document if the
dedication in question was made under a document. In such a case it is always a
matter of ascertaining the true intention of the parties, it is obvious that
such an intention must be, gathered on a. fair and reasonable construction of
the document considered as a If the income of the property is substantially
intended to be used for the purpose of a charity and only an insignificant and
minor portion of it is allowed to be used for the maintenance of the worshipper
or the manager, it may be possible to take the view that dedication is
complete. If, on the other hand, for the maintenance of charity a minor portion
of the income is expected or required to be used and a substantial surplus is
left in the hands ,of the manager or worshipper for his own private purposes,
it would be difficult to accept the theory of complete dedication. Ex. A-2,
after setting out the various charities to be conducted concludes by saying
that "If, after conducting the said charities properly, there be any
surplus, the same shall be utilised by the 'said Shanmugam Pillai and his heirs
for family expenses. They should also look after the same carefully and
properly." This shows that the entire income of the properties set apart
for charities was not thought to be necessary for conducting the charities. 'It
was for the plaintiffs to establish that the dedication was complete and consequently
there was a resulting trust. As they have (1) AIR 1957 S.C. 797. failed to
establish the same, for the purpose of this case, we have to proceed on the
basis that the dedication was only partial and the properties retained the
character of private properties. Therefore the, widows of V. Rm. Shanmugam
Pillai had a beneficial interest in those properties see Kalipada Chakraborti
and anr. v. Palani Bala Devi and ors(1). As seen earlier they had alienated
their interest in those properties. For the reasons already mentioned, the
plaintiffs are precluded from questioning the validity of those alienations. It
is not open now to them to contend that the alienations in question are
invalid. It is not necessary for as to decide in this case whether their successors
can challenge those alienations. Suffice it to say that the plaintiffs are
precluded from challenging those alienations.
No comments:
Post a Comment