Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Act No. XVI of 1864, or the Indian Registration Act, 1866, or the Indian Registration Act, 1871 or the Indian Registration Act, 1870, or this Act
  • clause (vi) of sub-section (2) of Section 17 of the Registration Act.11.
  • Section 17(1)(b) of the Registration Act, 1908
  • SECTION 41 TRANSFER OF PROPERTY ACT
  • property.8. Sub-section (2)(vi) of Section 17
  • clause (vi) of sub-section (2) of Section 17
  • SECTION 42 SPECIFIC RELIEF ACT
  • Section 17(1)(b)
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Act No. XVI of 1864, or the Indian Registration Act, 1866, or the Indian Registration Act, 1871 or the Indian Registration Act, 1870, or this Act
  • clause (vi) of sub-section (2) of Section 17 of the Registration Act.11.
  • Section 17(1)(b) of the Registration Act, 1908
  • SECTION 41 TRANSFER OF PROPERTY ACT
  • property.8. Sub-section (2)(vi) of Section 17
  • clause (vi) of sub-section (2) of Section 17
  • SECTION 42 SPECIFIC RELIEF ACT
  • Section 17(1)(b)
Smart Summary

Factual and Procedural Background

The plaintiff in the suit was a deity (Durga Devi) claiming ownership of house No. 211, Faithful Ganj, Kanpur. The original owner of multiple properties, including the property in dispute, was Pitamber Lal who died circa 1932. After his death a dispute arose: Raghubir Prasad claimed to be Pitamber Lal's adopted son; Smt. Rukmani Kunwar was the widow; Newaji Lal was Pitamber Lal's brother. Raghubir Prasad filed Suit No. 28 of 1933 seeking, in the alternative, (a) declaration that he was trustee in possession and management of properties under Pitamber Lal's will dated 17 September 1932, or (b) that he was the validly adopted son entitled to the properties. The property in dispute (house No. 211) was one of the items listed in that plaint.

Suit No. 28 of 1933 was ultimately compromised and the compromise was made an order (decree) of the court (Ext. 10). Under the compromise, house No. 87/167, Bhannapurwa became the property of the plaintiff deity and a temple was to be constructed and the deity installed. Certain bank deposits were to be used for that purpose. House No. 211 (the subject of the later suit) was given to Smt. Rukmani Kunwar to remain in her possession during her lifetime without power of alienation, and on her death the property was to stand dedicated to the deity Durga Devi. Trustees of the deity were appointed in terms of the compromise decree.

The plaintiff-deity alleged the compromise decree had been acted upon, the temple constructed and the deity installed; Smt. Rukmani Kunwar died on 9 January 1959 and, on her death, the deity became entitled to possession of house No. 211. The plaintiff alleged that defendants were disputing the plaintiff's title and pressuring tenants not to pay rent, and therefore sought a declaration of title.

The defendants contested the suit: they denied Raghubir Prasad's adoption, denied the compromise's validity (alleging fraud and collusion), asserted Smt. Rukmani Kunwar was full owner and had sold the property to defendant No. 2 who then sold to defendant No. 1 by registered deed dated 5 May 1960; they claimed to be bona fide purchasers for value without notice (invoking Section 41 of the Transfer of Property Act), pleaded the bar of Section 42 of the Specific Relief Act, limitation, adverse possession, and that the compromise was inadmissible in evidence for want of registration.

The trial court framed issues, negatived the defendants' pleas, and decreed the suit in favour of the plaintiff. The decree was affirmed on appeal by the lower appellate court. The defendants brought the matter in a second appeal before M.P. Mehrotra, J.

Legal Issues Presented

  1. Whether the compromise decree made in Suit No. 28 of 1933 required registration under Section 17(1)(b) of the Registration Act, 1908, and whether clause (vi) of sub-section (2) of Section 17 would save the compromise decree from the requirement of registration.
  2. Whether the nature or scope of the earlier suit or the content of the compromise (for example, dedication of property to a deity or laying down a scheme of management) affects the applicability of clause (vi) of sub-section (2) of Section 17.
  3. Whether the compromise decree effected a dedication to the deity such that, upon the death of Smt. Rukmani Kunwar, a fresh document was required to vest the property in the deity, or whether the compromise itself created a vested right in the deity requiring no further instrument.

Arguments of the Parties

Appellants' (Defendant) Arguments

  • The compromise decree arising out of Suit No. 28 of 1933 was not admissible in evidence because it was not registered; it purported to create or extinguish interests in immovable property and therefore required registration under Section 17(1)(b) of the Registration Act, 1908.
  • Clause (vi) of sub-section (2) of Section 17 would not save the compromise decree because, as argued, the scope and nature of the earlier suit were such that no dedication or scheme of management in favour of the deity could lawfully be the subject of compromise; therefore the decree was not the kind of court order exempted from registration.
  • Reliance was placed on the Full Bench decision in Ram Gati Chaube v. Ram Adhar Chaube (A.I.R. 1961 Alld. 537) to support the contention that an ambiguous court order (or a compromise not properly embodying required terms) could not be treated as a valid unregistered instrument affecting immovable property.
  • It was further contended that there was no effective dedication to the deity by the compromise and that, after Smt. Rukmani Kunwar's death, a fresh document would be necessary to vest the property in the deity.
  • Earlier defenses at trial also included denials of adoption, allegations of fraud and collusion in the compromise, claims of bona fide purchase for value without notice (Section 41, Transfer of Property Act), plea under Section 42, Specific Relief Act, limitation and adverse possession.

Plaintiff's (Deity's) Allegations and Position

  • The plaintiff alleged the compromise decree in Suit No. 28 of 1933 had been fully acted upon: the specified Bhannapurwa house was converted into a temple and the deity installed as directed by the compromise.
  • That the compromise expressly provided that on the death of Smt. Rukmani Kunwar the disputed house (No. 211) would be dedicated to the deity and vest in the deity; Smt. Rukmani had died on 9 January 1959 and therefore the deity was entitled to possession.
  • The plaintiff asserted defendants had no right to question the deity's title and were wrongfully pressuring tenants so as to prevent payment of rent to the deity.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ram Gati Chaube v. Ram Adhar Chaube, A.I.R. 1961 Alld. 537 (Full Bench) Consideration of effect of an ambiguous one-word order ('approved') passed by a mutation court and whether such order embodied the entire terms of a compromise application. The court distinguished this Full Bench decision on facts: Ram Gati Chaube concerned an ambiguous mutation order that required judicial exposition; in the present case the entire compromise application was explicitly made part of the decree, so the Full Bench decision was not applicable.
Hemanta Kumari Debi v. Midnapur Zamindari Co. Ltd., 46 Ind. App. 240, A.I.R. 1919 P.C. 79 Illustration that an order which explicitly records the entire compromise application poses no problem as to its effect. Used to support the proposition that where a court order explicitly records the entire compromise, there is no ambiguity and no difficulty in treating the compromise as forming part of the decree.
Pranal Anni v. Lakshmi Anni, I.L.R. 22 Mad. 508 P.C. Recognition that an ambiguous order needs judicial exposition to determine its true import. Cited to contrast the present, non-ambiguous decree—i.e., to show that the present compromise being incorporated in full into the decree does not suffer from the infirmities that required exposition in the Pranal Anni line of authority.

Court's Reasoning and Analysis

The court proceeded by addressing the principal contention that the compromise decree required registration under Section 17(1)(b) of the Registration Act, 1908 and that clause (vi) of sub-section (2) of Section 17 would not operate to save the decree from the requirement of registration.

Key statutory provisions as considered by the court:

  • Section 17(1)(b) (text quoted in the opinion) — which requires registration of "other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish ... any right, title or interest ... to or in immovable property" of the specified value.
  • Sub-section (2)(vi) of Section 17 — which provides that "Any decree or order of a Court except a decree or order expressed to be made on a compromise and comprising immovable property other than that which is the subject-matter of the suit or proceeding" (language as reproduced in the opinion).

The court articulated the controlling criterion under clause (vi): the decisive question is whether the immovable property in question was the subject-matter of the suit in which the compromise was recorded. If the immovable property is the subject-matter of the suit, then the fact that the compromise disposes of that property in a particular manner (e.g., dedication to a deity, creation of a life estate, appointment of trustees or a scheme of management) is irrelevant to the question of whether the decree requires registration.

Applying that test, the court found:

  • House No. 211 was expressly part of the properties detailed in the plaint in Suit No. 28 of 1933 — i.e., the immovable property was the subject-matter of that suit and of the compromise which was made the rule of court.
  • Because the compromise was specifically made part of the decree and the property was the subject-matter of the earlier suit, the decree fell within clause (vi) and did not require registration under Section 17(1)(b).
  • The nature of the compromise (that it dedicated the property to a deity, created a life interest for Smt. Rukmani Kunwar, provided for trustees and construction of a temple) did not affect the applicability of clause (vi); such aspects were extraneous to the registration question.

The court distinguished the Full Bench decision in Ram Gati Chaube on the ground that that case concerned an ambiguous, one-word order ('approved') by a mutation court where it was necessary to determine whether the order embodied the terms of the compromise application — a problem of interpretation not present where the court's decree explicitly records the entire compromise application. The court relied on Hemanta Kumari Debi (and the general principle in Pranal Anni) to underscore that an explicitly recorded compromise poses no difficulty.

On the separate contention that the compromise did not effect a dedication and that a fresh document would therefore be necessary after Smt. Rukmani Kunwar's death, the court held that the clear recital in the compromise that "after the death of Smt. Rukmani Kunwar, the property shall be a property dedicated to the deity Sri Durga Devi" created a vested right in the deity. Although the enjoyment and management were postponed until the widow's death (i.e., a life enjoyment was granted to her), the underlying right in the deity was vested by the compromise decree and no further document was required to vest the property in the deity upon her death.

Having rejected the central contentions of the appellants (that registration was necessary and that no dedication had been effected), the court concluded that the appeal must fail.

Holding and Implications

Core Ruling: The appeal is dismissed with costs. The compromise decree passed in Suit No. 28 of 1933 did not require registration, and the compromise created a vested right in the deity such that no further document was necessary upon the death of Smt. Rukmani Kunwar to vest the property in the deity.

Implications and consequences:

  • Direct effect between the parties: The decree in favour of the plaintiff-deity (as affirmed by the courts below) stands; the defendants' contention that the compromise decree was inadmissible for want of registration was rejected.
  • On the specific legal question of registration: where an immovable property is the subject-matter of the suit in which a compromise is recorded and the court makes the compromise application part of its decree, clause (vi) of sub-section (2) of Section 17 protects such a court order from the registration requirement under Section 17(1)(b). The content, nature or form of the compromise (including dedication to a deity or managerial schemes) are extraneous to that registration inquiry.
  • On vesting/dedication: A compromise decree that expressly creates a dedication and is made a part of a court decree can create a vested right in the beneficiary (here, the deity), even if enjoyment or management is postponed (e.g., during the lifetime of another person). No subsequent document is necessary to effect the vesting when the terms of the decree operate on the contingency (here, on the death of the life-holder).
  • The court did not hold that the decision sets a broader, novel rule beyond applying clause (vi) of sub-section (2) of Section 17 to the facts: its reasoning limits itself to the criterion of whether the immovable property was the subject-matter of the suit and whether the compromise was made part of the decree.

This summary is based exclusively on the information contained in the provided opinion and does not add or infer facts beyond that text.

    Hari Shankar v. Shree Durga Devi And Another

    M.P Mehrotra, J.:— This is the defendant's second appeal. They have lost in both the courts below and have come up in the instant appeal.

    2. The brief facts are these:—

    3. The deity sued as the plaintiff for a declaration that the deity was the owner of house No. 211, Faithful Ganj, Kanpur. One Pitamber Lal was the original owner of many properties including the one in dispute in the suit. He died some time in 1932 and on his death, dispute arose between various parties. One Raghubir Prasad claimed to be the adopted son of the said Pitamber Lal. Smt. Rukmani Kunwar was the widow and Newaji Lal was the brother of the said Pitamber Lal. Raghubir Prasad filed Suit No. 28 of 1933 in the court of the Civil Judge, Kanpur, wherein Newaji Lal and Smt. Rukmani Kunwar were made defendants. There were certain other defendants also in the said suit. The prayer in the suit was that a declaration be granted that in terms of the will dated September 17, 1932 of the said Pitamber Lal, the plaintiff Raghubir Prasad was the trustee in valid possession and management of the properties detailed at the foot of the plant. In the alternative, the relief sought was that in case the aforesaid relief could not be granted to the plaintiff, than the latter was entitled to the said property as the validly adopted son of the said Pitamber Lal and that he was in possession of the said properties in the said capacity. Admittedly the property in dispute before me was one of the items of the properties detailed at the foot of the plaint. The said Suit No. 28 of 1933 was ultimately compromised and the said compromise was made the rule of the court. A certified copy of the compromise decree is Ext. 10 in the suit. Under the terms of the compromise, it was settled that house No. 87/167, Bhannapurwa would be the property of the plaintiff deity and the temple of the deity would be constructed therein and the deity would be installed in the temple and it was also agreed that certain amounts in deposit with the Punjab National Bank Limited belonging to Pitambar Lal were to be utilised for the said purpose. It was further stipulated that house No. 211, which is the subject-matter of dispute before me, was to be given to Smt. Rukmani Kunwar to remain in her possession during her life-time but she was not given any power of alienation and on her death the property was to stand dedicated to the deity Durga Devi who was to be its owner. Certain trustees of the deity were appointed in terms of the compromise decree. The plaintiff deity alleged that the said compromise decree passed in suit No. 28 of 1933 was fully acted upon and the deity was installed with full religious ceremony in the aforesaid Bhannapurwa house after the temple had been constructedt therein as stipulated in the compromise decree. It was stated that on January 9, 1959, Smt. Rukmani Kunwar died and on her death, the deity became entitled to the possession of the said house which had been declared to be a Waqf property vesting in the deity after the death of Smt. Rukmani Kunwar by the aforesaid compromise decree passed in suit No. 28 of 1933. It was alleged that the defendants were questioning the plaintiffs' title which they had no right to do and, therefore, it had become necessary for the plaintiff deity to seek a declaration of her title. The property happens to be in possession of the tenants who were sought to be pressurised by the defendants so that they did not pay the lent to the plaintiff deity.

    4. The defendants contested the suit. Inter alia, the defence was that Raghubir Prasad was not the adopted son of Pitambar Lal and the entire property of the latter was his self-acquired and on his death his widow Smt. Rukmani Kunwar succeeded to the properties of her husband. It was denied that there was any valid compromise arrived at in Suit No. 28 of 1933 and the suit itself was alleged to be vexatious, frivolous and collusive. The compromise said to have been arrived at in Suit No. 28 of 1933 was alleged to be brought about by fraud and collusion. The decree, in any case, was alleged to be not binding on the defendants. Smt. Rukmani Kunwar as the full owner of the house in dispute sold the same by a sale deed in favour of defendant No. 2 and the defendant No. 2 in his turn sold the same to defendant No. 1 by means of a registered sale deed dated May 5, 1960. It was claimed that the defendants were bona fide purchasers for value without notice and, therefore, they were entitled to the benefit of Section 41 of the Transfer of Property Act. The bar of Section 42 of the Specific Relief Act was also pleaded and a plea of limitation was also raised. Smt. Rukmani Kunwar was said to have acquired absolute title by adverse possession and lastly it was contended that the compromise between the parties arrived at in suit No. 28 of 1933 was inadmissible in evidence because it was not a registered document.

    5. The trial court framed the necessary issues and tried that suit. The defence pleas were negatived and the suit was decreed. The decree of the trial court was affirmed by the lower appellate court.

    6. In the second appeal before me, Sri K.C Saxena learned counsel for the appellant, has contended that the compromise decree was not admissible in evidence for want of registration. He has relief on Section 17(1)(b) of the Registration Act, 1908 and has contended that the exception laid down in clause (vi) of sub-section (2) of Section 17 of the said Act will not save the compromise decree in the instant case because the scope of the suit in the earlier litigation was such that no dedication could be made in favour of the deity in respect of the property in dispute and further, no scheme of the management could be laid down in the compromise decree looking to the nature of the suit and the reliefs claimed therein. Learned counsel has also placed reliance on Ram Gati Chaube v. Ram Adhar Chaube . A.I.R 1961 Alld. 537. which is a Full Bench decision of this Court. In my opinion, this contention is not tenable. So far as the Full Bench case is concerned, it is obviously distinguishable. In the said decision, the court was called upon to consider the effect of an ambiguous one word order passed by the mutation court. The one word order was ‘approved’. Looking to the nature of the prayer made in the application, the Full Bench held that the mutation court by its order directed the names of the parties to be mutated over the properties which were so specified in the compromise application. The Full Bench has clearly observed as follows:—

    “The Sub-Divisional Officer, to whom the application was presented, passed a nominal order, ‘approved’, and thereafter the names of the parties were mutated in village records. The primary question is whether that order embodies the entire terms of the compromise application. An order, which explicitly records the entire compromise application, poses no problem (See Hemanta Kumari Debi v. Midnapur Zamindari Co. Ltd. . 46 Ind. App. 240, A.I.R 1919 P.C 79. but an ambiguous order needs judicial exposition as to what it does and what it omits to do, See Pranal Anni v. Lakshmi Anni . I.L.R 22 Mad. 508 P.C..”

    7. In the instant case, the entire compromise application was made the rule of the court. The prayer of the parties was that a decree be passed in terms of the compromise between the parties as set out in the application and the court made the entire compromise application a part of the decree. In this view of the matter, the Full Bench decision has no relevance to the present controversy. I do not think the learned counsel for the appellant is right in his attempt to emphasise the nature of the suit and the relief sought while seeking to contend that clause (vi) of sub-section (2) of Section 17 would not be applicable to the compromise decree in the instant case. Section 17(1)(b) lays down as under:—

    “17. (1) The following documents shall be registered, if the property to which they relate is situate in a district in which, and if they have been executed on or after the date on which, Act No. XVI of 1864, or the Indian Registration Act, 1866, or the Indian Registration Act, 1871 or the Indian Registration Act, 1870, or this Act came or comes into force, namely:—

    (a) …. …… …… .. .. .. .. .. .. …. ..

    (b) other non-testamentary instruments which purports or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property.”

    8. Sub-section (2)(vi) of Section 17 lays down as under:—

    “Any decree or order of a Court except a decree or order expressed to be made on a compromise and comprising immovable property other than that which is the subject-matter of the suit or proceeding.”

    9. It is obvious that the criterion which has been laid down in clause (vi) is whether the immovable property in respect of which the compromise is being made is the subject-matter of the suit or not. If an immovable property is the subject-matter of the suit then it is not relevant as to how the property is sought to be disposed by the compromise between the parties. It is also not relevant as to what was the nature of the suit in which the compromise was entered into or as to what was the nature of the relief sought in the said suit. It is also wholly irrelevant as to the manner in which the property is being dealt with in the compromise application such as whether it is being dedicated to a deity or it is to be owned during lifetime or a full ownership is being conferred. In my opinion, these aspects of the matter really do not fall for any scrutiny. In other words, the nature, scope and content of the compromise between the parties are extraneous considerations when we have to decide whether a decree or order of a court made on a compromise between the parties and comprising immovable properties needs registration or not. We have only to see whether the immovable property is the subject-matter of the suit or not. In this view of the matter, I reject the contention raised on behalf of the defendant-appellants and hold that the compromise decree passed in suit No. 28 of 1933 did not require registration.

    10. It was next contended by Sri K.C Saxena that there was no dedication by the aforesaid compromise decree and that after the death of Smt. Rukmani Kunwar a fresh document was to be executed to enable the property to be vested in the deity. I again do not find any merit in this contention. The clear recital in the compromise decree is that after the death of Smt. Rukmani Kunwar, the property shall be a property dedicated to the deity Sri Durga Devi. This term in the compromise clearly created a vested right in the deity and only/the enjoyment for her life-time was given to Smt. Rukmani Kunwar. In other words, even though the deity got an immediate vested right by the compromise decree, still, the enjoyment and management of the property was postponed till the death of Smt. Rukmani Kunwar, I do not think that any further docucent was, therefore, needed after the death of Smt. Rukmani Kunwar to vest the property in the deity. Learned counsel for the appellant contended that if there was dedication by a deed, then such a document needed to be registered. This contention has also no force because it is the repetition of the earlier contention which was raised by the learned counsel which I have already rejected. If the dedication is made as a result of the compromise, between the parties concerning immovable property and if such a compromise is made the rule of the court, then unless the immovable property is not subject-matter of the suit in which the compromise is arrived at, the same shall be saved from the necessity of registration in view of the aforesaid clause (vi) of sub-section (2) of Section 17 of the Registration Act.

    11. The appeal, therefore, fails and is dismissed with costs.

    Use AI to get other relevant cases.

    Comments

    Hari Shankar v. Shree Durga Devi And Another
    (Mar 31, 1977)