Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
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
Advocates
Judges
Smart Summary

Factual and Procedural Background

The appellant (plaintiff) sued for partition and separate possession of a one-fourth share in the properties described in Schedule A to the plaint and a half share in properties described in Schedules B and C, together with past and future profits and certain minor reliefs. The material family relationships and relevant transactions, as stated in the opinion, are:

  • Two brothers: Venkatarama Aiyar and Dharma Ayyar. Venkatarama Ayyar had two sons: Ramaswami Ayyar and Lakshmana Ayyar. Ramaswami Ayyar died in 1931 leaving two sons: Nataraja Ayyar (first defendant) and Krishnamurthy Ayyar (plaintiff/appellant). Lakshmana Ayyar is the 109th defendant. From Dharma Ayyar descended the 4th defendant.
  • In 1927 Ramaswami Ayyar and Lakshmana Ayyar divided family properties; Ramaswami received lands in Kolappad, Thethakudi and Mutharasapuram and a house in Kolappad.
  • On 10 July 1929 Ramaswami sold Kolappad lands and the house to Ramachandra Naidu for Rs. 99,000. About Rs. 30,000 was used to discharge debts. Because the plaintiff was a minor, the sale included a stipulation that the vendee execute a promissory note for Rs. 33,000 in favour of the plaintiff, payable on his attaining majority or earlier in certain circumstances.
  • How the remaining ~Rs. 36,000 was collected is unclear; much was allegedly spent on family expenses (including a daughter's marriage).
  • On 30 November 1931 two agreements (Exs. D‑1(a) and D‑2(a)) were executed: by Ex. D‑1(a) the first defendant (for himself and as guardian of the plaintiff) agreed to sell a half share in Thethakudi lands for Rs. 13,000; by Ex. D‑2(a) the second defendant agreed to sell certain Thozhudur lands for Rs. 55,350. On 4 January 1932 sale deeds Exs. D‑1 and D‑2 were executed. The transaction was in substance a combination of exchange and credit purchase with various adjustments, promissory notes and directions to discharge debts (including mortgage debt of Rs. 12,000 to Tanjore Permanent Fund).
  • Possession changed hands in accordance with Exs. D‑1 and D‑2. The first defendant failed to discharge the debts he had undertaken to pay, leading to creditor suits. The Tanjore Permanent Fund obtained a decree and sold 60 acres 20 cents; the Official Receiver later sold the first defendant's remaining right, title and interest in the Thozhudur lands after the first defendant was adjudicated insolvent (adjudication dated 18 Nov 1936; sale deed Ex. P‑5 dated 30 Sep 1943).
  • The plaintiff challenged the validity of Exs. D‑1 and D‑2 and disclaimed interest in the lands obtained under Ex. D‑2, seeking recovery of his share from the lands sold under Ex. D‑1 (Schedule A, Thethakudi lands). The plaintiff claimed a fourth share (55 acres 68 cents) of the 222 acres 71-1/2 cents in Schedule A.
  • The trial and appeals involved extended consideration of whether the transactions were valid as being for the "benefit of the estate" or otherwise, and whether the alienated items could be allotted to the alienating coparcener's share in a partition.

Legal Issues Presented

  1. Whether the transactions evidenced by Exs. D‑1 and D‑2 (entered into by the manager/guardian of a joint Hindu family) were valid as being for the "benefit of the estate" or otherwise binding on the (minor) plaintiff.
  2. If the transactions were not justified as benefiting the estate, whether equity in favour of the alienee permits the court, in a suit for partition, to allot the alienated items to the share of the alienating coparcener (thereby working out the alienee's equity).
  3. Whether the plaintiff's suit should be treated as one for general partition (permitting allotment of alienated items against the alienating coparcener's share) or whether a purchaser/alienee can compel conversion into a separate suit for full adjustment of rights.
  4. Whether, on the evidence and valuation (including the Rs. 33,000 promissory note), the plaintiff is entitled to recover his claimed share in the Schedule A properties given other family assets and the values relied upon by the parties.

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The transaction evidenced by Exs. D‑1 and D‑2 is invalid as to the plaintiff because the first defendant, then acting as manager/guardian of the joint family, could not validly convey the plaintiff's share under the surrounding circumstances.
  • The plaintiff disclaimed interest in the Ex. D‑2 lands and sought recovery from the Ex. D‑1 (Thethakudi) lands only.
  • Counsel Mr. Viswanatha Sastri relied on Virupaksha Reddi v. Sivareddi for the proposition that property values should be taken at the time of division (i.e., valuation date for partition), and on Iburamsa Rowthen v. Thiruvenkatasami Naick to argue that a coparcener may sue for his share in alienated items without being forced into a general partition suit and that a stranger purchaser cannot compel conversion into a suit for general partition.

Respondents' Arguments (including first and second defendants)

  • The second defendant (represented by Mr. Venkatarama Ayyar) argued that even if the transaction were not justified as beneficial to the estate, the alienated Thethakudi properties could properly be allotted to the share of the alienating coparcener (Nataraja Ayyar), and that doing so would not prejudice the plaintiff because the totality of family assets would still satisfy the plaintiff's entitlement.
  • The respondents relied on established authorities to justify the court working out the equity in favour of the alienee by allotting the alienated item to the alienating coparcener's share where that can be done without prejudice to other coparceners.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Panday v. Mussamat Babooee Munraj Koonwaree (1856) 6 M.I.A. 393 (referred to as Hanoomanpersad Panday) Established that an alienation by a guardian of a minor or a manager of a joint Hindu family can be justified where it is either for "legal necessity" or "for the benefit of the estate"; "need" and "benefit" are distinct grounds. The Court acknowledges this as settled law forming the baseline for judging transactions by managers/guardians and frames subsequent discussion in light of the "benefit" doctrine.
Palaniappa Chetty v. Sreemath Devasikamony Pandara Sannadhi (1917) 33 M.L.J. 1; L.R. 44 I.A. 147; I.L.R. 40 Mad. 709 (P.C.) Privy Council: impossible to give a precise universal definition of "benefit of the estate"; provided examples and warned against strict definition; left scope elastic. The Court cites this authority to support the proposition that "benefit" must be judged flexibly and on the circumstances surrounding a transaction.
Jagat Narain v. Mathuradas (1928) I.L.R. 50 All. 969 (Full Bench) Rejected the theory that "benefit" must be defensive in character; held a transaction must be judged by expected results at the time it was entered into and a higher degree of prudence (approaching that of a trustee) may be required of a manager dealing with joint family property. The Court treats Jagat Narain as authoritative for applying a prudence standard and for assessing the expected results at the time of the transaction rather than actual later events.
Raj Singh v. Kishan Lal A.I.R. 1935 All. 299 Attempted to narrow Jagat Narain by requiring that a transaction be so advantageous that a prudent person would certainly enter into it. The Court notes Raj Singh as an effort to whittle down Jagat Narain but contrasts later Full Bench decisions that reaffirm Jagat Narain's approach.
Amrej Singh v. Shambu Singh (1932) I.L.R. 55 All. 1 (F.B.) Reaffirmation of Jagat Narain's principles concerning assessment of benefit and the standard of prudence. Used to support the view that Jagat Narain's standard remains good law and that strict limiting tests should not be applied.
Ramnath v. Chiranji Lal (1934) I.L.R. 57 All. 605 (F.B.) Another reaffirmation of Jagat Narain's approach to "benefit" and prudence. Cited alongside Amrej Singh as authority sustaining the Jagat Narain standard.
Hemraj Dattubuva v. Nathu (1935) I.L.R. 59 Bom. 525 (F.B.) Observed that the "benefit" need not be protective and critiqued Jagat Narain for perhaps going too far in equating manager's duty to that of a trustee. The Court cites this to show judicial debate about the precise standard but ultimately rejects imposing a stricter trustee standard than warranted.
Sellappa v. Suppan (1937) 1 M.L.J. 422; I.L.R. 1937 Mad. 906 Approved the decision in Jagat Narain (supporting its principles). The Court refers to Sellappa as a Bench of this Court approving Jagat Narain, reinforcing the accepted standard.
Ramaswami Iyer v. Venkatarama Aiyar (1923) 45 M.L.J. 203; I.L.R. 46 Mad. 815 Recognised an equity in favour of an alienee of a family item (alienation not for necessity or benefit), permitting a court to allot the alienated item to the share of the alienating coparcener where this can be done without prejudice to other coparceners; share computed as at date of alienation. The Court relies on this precedent to allow that the Thethakudi (and Mutharasapuram) lands could be allotted to the first defendant's share, and to support working out the alienee's equity in this suit.
Dharmarao v. Bapanayya (1941) 1 M.L.J. 15 Referenced as part of the same line of authority recognising the equity in favour of alienee and allotment principle. Cited with Ramaswami Iyer to support the court's power to allot alienated items to the alienating coparcener's share.
Unreported judgments of Leach C.J. and Kuppuswami Aiyar, J., in A.S. Nos. 182 of 1938 and 62 of 1940 Used as additional authority for the principle that alienated items may be allotted to the share of the alienating coparcener if this can be done without prejudice. Referred to as part of the body of authority supporting allotment to the alienating coparcener's share.
Sthapathiar v. Sivanarayana Pillai (1932) 64 M.L.J. 66; I.L.R. 56 Mad. 534 Contains a dissenting note opposing aspects of the allotment principle; noted for its dissent rather than as authority contra. The Court records the dissent but treats the weight of authority as supporting allotment and the computation of share as at date of alienation.
Virupaksha Reddi v. Sivareddi (1943) 2 M.L.J. 87; I.L.R. 1944 Mad. 212 Cited by plaintiff's counsel for the proposition that values of properties must be taken as at the time of division (valuation date question). The Court notes the citation but observes that the counsel did not state authority for that proposition from the case; in any event the evidence here does not show that Schedules A and C together exceed Rs. 33,000 plus interest.
Iburamsa Rowthen v. Thiruvenkatasami Naick (1910) 20 M.L.J. 743; I.L.R. 34 Mad. 269 (F.B.) Held that a coparcener can sue for his share in one or more alienated family items without instituting a general partition suit, and that a stranger purchaser cannot compel conversion into a suit for general partition. The Court declines to treat Iburamsa Rowthen as establishing an absolute rule preventing courts in a coparcener's suit from working out the alienee's equity; where facts are simple and no injustice is caused, the Court may exercise its equitable jurisdiction.
Subba Goundan v. Krisknamachari (1941) 1 M.L.J. 15 Cited in the context of partition/allotment authorities. The Court finds nothing in Subba Goundan directly opposed to the view in Ramaswami Iyer that supports allotment to the alienating coparcener's share.
Kandasami Udayar v. Velayudha Udayan (1926) 51 M.L.J. 99; I.L.R. 50 Mad. 534 Cited among partition/allotment authorities. The Court finds nothing in this authority directly opposed to the principle allowing allotment to the alienating coparcener's share as in Ramaswami Iyer.

Court's Reasoning and Analysis

The Court's reasoning unfolded in two main stages: (1) assessment of the validity of the transactions Exs. D‑1 and D‑2 under the "benefit" doctrine applicable to guardians/managers of joint family property; and (2) consideration of equitable relief in favour of the alienee by allotting alienated items to the alienating coparcener's share.

  1. Assessment of validity under "benefit" doctrine:
    • The Court reviewed the background facts (family structure, prior division, the 1929 sale with a Rs. 33,000 promissory note for the minor plaintiff, the 1931–1932 transactions and subsequent insolvency and executions). The materials available to judge whether Exs. D‑1 and D‑2 were entered into "for the benefit of the estate" were described as meagre.
    • Guided by established authorities (including Panday, Palaniappa Chetty and Jagat Narain), the Court emphasised that the question of "benefit" must be judged by the circumstances at the time of the transaction and by what might reasonably have been expected to flow from it, applying a prudence standard appropriate to a manager of joint family property (not a rigid, single definition).
    • Applying those principles to the limited evidence before it, the Court concluded that it was "unable to uphold the transaction evidenced by Exs. D‑1 and D‑2 as beneficial to the estate" and therefore not binding on the plaintiff.
  2. Equitable relief in favour of alienee and partition consequences:
    • Even after finding the transactions not shown to be for the benefit of the estate, the Court considered the body of authority (notably Ramaswami Iyer v. Venkatarama Aiyar) recognising an equity in favour of an alienee of family property, permitting the court to allot the alienated item to the alienating coparcener's share when that can be done without prejudice to other coparceners.
    • The Court accepted the principle that the alienating coparcener's share for such computation should be taken as at the date of alienation (subject to absence of contrary evidence).
    • Relying on the recitals in the sale documents (Exs. D‑1 and D‑7) and, in the absence of contradicting evidence, the Court assumed values: Thethakudi lands = Rs. 13,000; Mutharasapuram (Schedule C) = Rs. 6,900. The Court observed that these together are less than the Rs. 33,000 promissory note owed to the plaintiff.
    • Therefore, allotting the Thethakudi and Mutharasapuram lands to the first defendant's share would still leave more than half the family property from which the plaintiff's share could be satisfied. The Court thus found it permissible to work out the equity in favour of the alienee by allotment.
    • The Court rejected the argument that because the Official Receiver (representing the first defendant's estate) was a party to another suit (O.S. No. 9 of 1943) the present defendants were barred from seeking their equity here.
    • Finally, the Court concluded that on the whole facts—particularly that the plaintiff was "in possession of family assets far exceeding in value the properties set out in" Schedules A and C—the plaintiff was not entitled to claim a share in the Schedule A properties.

Holding and Implications

Core Ruling: The appellant (plaintiff) is not entitled to claim a share in the properties in Schedule A; the Court was unable to uphold Exs. D‑1 and D‑2 as being for the benefit of the estate but permitted the equity of the alienee to be worked out by allotting the alienated items to the alienating coparcener's share where this can be done without prejudice to other coparceners.

Immediate consequences for the parties:

  • The plaintiff's claim to the Schedule A properties was rejected by the Court on the basis that the plaintiff already possessed family assets of value exceeding Schedules A and C, and on the further equitable conclusion regarding the allotment of the alienated items to the first defendant's share.
  • The appellant (plaintiff) was ordered to pay one set of costs to all contesting respondents, divisible among them according to the value of the properties held by each; the respondents were also entitled to their printing charges.

Broader implications and precedential effect:

The opinion applies and discusses established authorities on the "benefit" doctrine and the equity in favour of an alienee, but it does not purport to lay down a new general rule; rather it applies existing principles to the facts before the Court. It does not state that it is creating a new precedent beyond applying recognized lines of authority.

    R. Krishnamoorthy Iyer v. R. Nataraja Aiyar And Others.

    1. The appellant unsuccessfully sued for partition and separate possession of a fourth share of the properties described in schedule A to the plaint and a half share in the properties described in schedules B and C together with past and future profits and certain minor reliefs to which no specific reference is necessary. The relevant relationships are admitted and may be shortly stated as follows. There were two brothers Venkatarama Aiyar and Dharma Ayyar. Venkatarama Ayyar left two sons, Ramaswami Ayyar and Lakshmana Ayyar. Ramaswami Ayyar died on the 17th July, 1931, leaving two sons, the first defendant Nataraja Ayyar and the plaintiff Krishnamurthy Ayyar. Lakshmana Ayyar was the 109th defendant. Dharma Ayyar had a son Subramania Ayyar whose son is Thiagaraja Ayyar, the 4th defendant. The family originally belonged to a village called Thozhudur in Tanjore district. On the 24th August, 1927, Ramaswami Ayyar and Lakshmana Ayyar divided their properties where by the former got for his share lands in the villages of Kolappad, Thethakudi and Mutharasapuram and a house in Kolappad. On the 10th of July, 1929, Ramaswami Ayyar sold the Kolappad lands and the house for Rs. 99,000 to one Ramachandra Naidu. It is common ground that about Rs. 30,000 out of it was utilised for the discharge of debts. Nataraja Ayyar who joined in the sale deed as an adult was then aged about 19 or 20. The plaintiff however on whose behalf the sale deed was executed was a minor, and it was therefore stipulated that the vendee should execute a promissory note in favour of the plaintiff for Rs. 33,000 with interest at six per cent per annum, that the amount should be payable to the plaintiff on his attaining majority and on his executing a deed ratifying the sale or earlier if properties of the value of Rs. 33,000 should be purchased for the benefit of the plaintiff and the vendee is given adequate security against the possible claim of the plaintiff after he attained majority. It is not quite clear as to how the balance of about Rs. 36, 000 was collected by Ramaswami Ayyar and in fact this is one of the several dark patches in the case. It is however common ground that that amount was collected somehow and was utilised mostly for the expenses of the marriage of a daughter and for other purposes binding on the family leaving even according to the plaintiff's first witness only Rs. 6,000 or Rs. 7,000 by the time of Ramaswami Ayyar's death. P.W. 1 deposes that the wedding of Ramaswami Ayyar's daughter cost as much as Rs. 15, 000 or Rs. 16,000 while the fourth defendant who was examined as D.W. 5, states that a sum between Rs. 8,000 and Rs. 1 0,000 was spent and not Rs. 15,000. This however is immaterial.

    2. With this short family history as the background it will now be convenient to deal separately with the claim in respect of each of the plaint schedules. First as to A schedule properties which are all in Thethakudi village

    3. On 30th November, 1931, two agreements (Exs. D-1 (a) and D-2 (a) were executed between the first defendant for himself and as guardian of his undivided younger brother, the plaintiff on the one hand and the second defendant on the other. By Ex. D-1 (a) the first defendant agreed for himself and his younger brother to sell to the second defendant their half share out of 211 acres 15 cents of land in Thethakudi village including wet and dry lands for Rs. 13,000. Under Ex. D-2 (a) the second defendant undertook to sell to the first defendant and the plaintiff lands of the total extent of 140 acres 71 cents including wet and dry lands in the village of Thozhudur for Rs. 55,350. On 4th January, 1932, the sale deeds Exs. D-1, and D-2 were executed in pursuance of Exs. D-1 (a) and D-2 (a). Notwithstanding that the documents were drafted as sale deeds there is no doubt that the transaction was in substance a combination of an exchange and a credit purchase whereby while the properties in Thethakudi and Thozhudur changed hands a heavy payment had to be made by the first defendant and the plaintiff to the second defendant or for his benefit in the manner set out in Ex D-2. Apart from the Rs. 13,000 which was the consideration for Ex. D-1 and which was to be adjusted against the price of the Thozudhur lands sold under Ex. D-2, Rs. 1,000 was paid in cash by Nataraja Ayyar, Rs. 3,064-4-0 was adjusted towards a promissory note executed by the second defendant in favour of the first defendant and the plaintiff. The first defendant executed a promissory note in favour of the second defendant for Rs. 1,935-12-0 and the balance of Rs. 36,350 was directed to be paid by the first defendant in discharge of the debts of the second defendant set out in a schedule attached to the sale deed. These debts included an amount of Rs. 12,000 due by way of principal and interest on a mortgage executed in favour of the Tanjore Permanent Fund by the second defendant on the 19th March, 1931, over the properties covered by the sale deed Ex. D-2. There is no doubt that the parties went into possession of the properties which they respectively got under Exs. D-1 and D-2. Nataraja Ayyar was unable to pay the debts which he had undertaken to discharge except to an inconsiderable extent with the result that there were a number of suits by the second defendant's creditors against the first defendant and the plaintiff most of which were decreed against the first defendant alone and the rest both against the first defendant and the plaintiff. The Tanjore Permanent Fund obtained a decree on foot of its mortgage in O.S. No. 20 of 1936 on the file of the Court of the Sub-ordinate Judge, Tiruvarur, against 60 acres 20 cents out of the properties covered by Ex. D-2 and sold them away in the execution of that decree. The second defendant himself obtained a decree in O.S. No. 38 of 1941 on the file of the Court of the District Judge of Negapatam for a portion of the purchase money and subject to the charge for the amount of Rs. 6,924-7-6 due under that decree, the Official Receiver, East Tanjore sold the right, title and interest of the first defendant in the rest of the Thozhudur lands by the sale deed Ex. P-5 dated 30th September, 1943, the first defendant having been adjudicated insolvent on 18th November, 1936, in I.P. No. 9 of 1936 in the Court of the Subordinate Judge of Tiruvarur.

    4. The plaintiff questions the validity of the transaction evidenced by Exs. D-1 and D-2. He disclaims all interest in the lands obtained under Ex. D-2 and seeks to recover his share out of the lands sold under Ex. D-1. These are lands of the total extent of 222 acres 71-1/2 cents in which the 109th defendant admittedly has a half share and the plaintiff therefore claims for himself only a fourth of 222 acres, 71 cents, i.e., 55 acres 68 cents. It is argued on his behalf that the first defendant who was admittedly the manager of the joint Hindu family at that time could not validly convey the plaintiff's a share in view of the circumstances in which the transactions were entered into.

    5. A large number of cases have been cited on both sides as to the principles governing the validity of transactions of this kind. It is unnecessary to discuss these decisions in any detail. It is clear law established as far back as in Hanoomanpersad

    6. Panday v. Mussamat Babooee Munraj Koonwaree (1856) 6 M.I.A. 393 that an alienation by a guardian of a minor or manager of a joint Hindu family can be justified where it is either for legal necessity or " for the benefit of the estate," " need " and " benefit" being distinct grounds of justification. In Palaniappa Chetty v. Sreemath Devasikamony Pandara Sannadhi (1917) 33 M.L.J. 1 : L.R. 44 I.A. 147 : I.L.R. 40 Mad. 709 (P.C.) the Privy Council observed that it is impossible to give a precise definition applicable to all cases of what would come under the description " benefit of the estate " and that they are therefore not attempting to do so. They however give three instances of what would obviously be benefits, finally adding that it is difficult to draw a line as to what are, in this connection to be taken as benefits and what not. Relying on the nature of the instances given by the Privy Council in that case there was an attempt in several cases to construe the expression " the benefit of the estate " as confined to transactions which are of a " defensive nature " in the sense of being for the protection and preservation of property. In Jagat Narain v. Mathuradas (1928) I.L.R. 50 All. 969 (F.B.) however, a Full Bench of the Allahabad High Court repelled the theory that a transaction must be of a defensive character in order to be regarded as being for the benefit of the estate. The Full Bench further held that:

    a transaction must be judged, not by its actual results but by what might have been expected to be its results, at the time that it was entered into

    7. and that the degree of prudence which might fairly be required from a person who was not the sole owner of the property might naturally be somewhat greater than that which might be expected in the case of a sole owner and might well be held to be that which could be demanded in ordinary cases from a trustee. In some of the later Allahabad decisions for instance in Raj Singh v. Kishan Lal A.I.R. 1935 All. 299 there was an attempt to whittle down this principle and lay down that a transaction in order to be justifiable must be so advantageous that a prudent person must certainly enter into it. In Amrej Singh v. Shambu Singh (1932) I.L.R. 55 All. 1 (F.B.) and Ramnath v. Chiranji Lal (1934) I.L.R. 57 All. 605 (F.B.) however the correctness of Jagat Narain v. Mathuradas (1928) I.L.R. 50 All. 969 (F.B.) was re-affirmed. In Hemraj Dattubuva v. Nathu (1935) I.L.R. 59 Bom. 525. (F.B.) a Full Bench of the Bombay High Court while no doubt holding that the benefit contemplated by Hanoomanpersaud Panday v. Mussamat Babooee Munraj Koonwaree (1856) 6 M.I.A. 393 need not be of a protective character observed that the Full Bench in Jagat Narain v. Mathuradas (1928) I.L.R. 50 All. 969 (F.B.) went too far in holding that the question turns on what a prudent owner would do in dealing with his own estate. The Allahabad Full Bench no doubt says in one place that the degree of prudence would be the prudence which an ordinary man would exercise with the knowledge available to him; but they immediately follow this up by stating that when a person is dealing with property of which he is not the sole owner the degree of prudence which would be required of him would be somewhat greater and then they proceed to approximate it to what is required of a trustee. While on the one hand there would be no justi-fication for treating a manager of a joint Hindu family as if he were the sole owner and to require of him no more prudence than what would be expected in a transaction concerning his own individual property, there is on the other hand no justification for laying down any stricter standard than what would be applicable to a trustee. The decision in Jagat Narain v. Mathuradas (1928) I.L.R. 50 All. 969 (F.B.) was approved by a Bench of this Court in Sellappa v. Suppan (1937) 1 M.L.J. 422: I.L.R. 1937 Mad. 906 and in an unreported decision in A.S. No. 206 of 1942. The expression " Kutumbarthe," in the Mitakshara which provides the ultimate textual basis for the doctrine of benefit as applied to transaction entered into by a manager of a joint Hindu family is elastic and we do not see any justification for laying down any hard and fast rule restraining its meaning. It is obvious that the question is essentially one of fact to be decided on a gathering together of all the circumstances surrounding the transaction at the time when it was entered into and that later events particularly if they were unexpected at the time of the transaction should not be taken into consideration.

    8. The circumstances in which the transaction evidenced by Exs. D-1 and D-2 were entered into have been the subject of elaborate discussion before us. (After discussing the evidence their Lordships proceeded.)

    9. The materials on winch the validity of the transaction has to be judged are meagre but giving our best consideration to such facts as can be gathered from the evidence that has been adduced, we are unable to uphold the transaction evidenced by Exs. D-1 and D-2 as beneficial to the estate and therefore binding on the plaintiff.

    10. It has however been argued by Mr. Venkatarama Ayyar for the second defendant that even so his client could claim that the Thethakudi properties should be allotted to the share of Nataraja Ayyar and that those properties would be far below the one half share to which Nataraja Ayyar would be entitled in a partition between him and the plaintiff. It is established by Ramaswami Iyer v. Venkatarama Aiyar (1923) 45 M.L.J. 203 : I.L.R. 46 Mad. 815 Dharmarao v. Bapanayya (1941) 1 M.L.J. 15 and the unreported judgment of Leach C.J. and Kuppuswami Aiyar, ]., in A.S. Nos. 182 of 1938 and 62 of 1940 and other cases that in working out the equity which had been recognised in favour of an alienee of an item of family property the alienation being neither for necessity nor for benefit, it is open to a court to allot the alienated item to the share of the alienating coparcener where that could be done without prejudice to the rights of the other coparceners. It is equally clear notwithstanding the dissentient note struck in Sthapathiar v. Sivanarayana Pillai (1932) 64 M.L.J. 66 : I.L.R. 56 Mad. 534 that for this purpose the share of the alienating coparcener should be computed as at the date of his alienation. Assuming, as we must in the absence of any evidence contra, that the Thethakudi lands were worth Rs. 13,000 and the Mutharasapuram lands comprised in Schedule C to the plaint were worth Rs. 6,900 as recited respectively in Exs. D-1 and D-7 it is obvious that the two together are less than the amount of Rs. 33,000 which was due from Ramachandra Naidu and that if the Thethakudi and Mutharasapuram lands are allotted to the share of the first defendant there would still be more than half the property out of which the plaintiff's share could easily be satisfied.

    11. Mr. Viswanatha Sastri for the plaintiff cited the decision in Virupaksha Reddi v. Sivareddi (1943) 2 M.L.J. 87 : I.L.R. 1944 Mad. 212 in support of his argument that the value of the properties must be taken as at the time of the division. The learned Judges do not state any authority in support of this proposition; but even assuming that the values of the several properties must be estimated as at the time of partition it has not been shown by any evidence in this case that the properties in Schedules A and C are worth more than the amount of Rs. 33,000 together with interest at 6 per cent. per annum which it has been carrying since 1932. It has also been argued on behalf of the plaintiff relying on Iburamsa Rowthen v. Thiruvenkatasami Naick (1910) 20 M.L.J. 743 : I.L.R. 34 Mad. 269 (F.B.) that it is open to a coparcener to sue for his share in one or more items of family property which have been alienated by another coparcener without instituting a general suit for partition of the entire family property, that a stranger purchaser cannot compel the plaintiff in such a case to convert his suit into one for general partition and that the only remedy open to such purchaser is for himself to file a suit in which all rights and equities could be worked out and adjusted. We do not regard Iburamsa Rowthen v. Thiruvenkatasami Naick (1910) 20 M.L.J. 743 : I.L.R. 34 Mad. 269 (F.B.) as laying down an absolute rule that a Court cannot, in a suit by a coparcener to recover his share in an alienated item or items, give effect to the equity in favour of the alienee even where the alienor's share in the family property is easily ascertainable and that the alienee must, even in such a case, be driven to a separate suit. We are unable to see any principle behind any such absolute rule. In most cases no doubt it would not be easy in such a suit to work out the equity as there may be several other coparceners who are not parties to it and several other properties available for division. But where that difficulty does not exist and the facts are simple, there is no justification for compelling the alienee nevertheless, to file a suit for partition. That would lead to unnecessary multiplication of litigation and further, what is in effect a rule of convenience should not be transformed into a rigid rule of procedure to be enforced regardless of circumstances. We are in this matter substantially in agreement with what was said in Ramaswami Iyer v. Venkatarama Iyer (1923) 45 M.L.J. 203 : I.L.R. 46 Mad. 815. We do not find either in Subba Goundan v. Krisknamachari (1941) I M.L.J. 15 or in Kandasami Udayar v. Velayudha Udayan (1926) 51 M.L.J. 99 : I.L.R. 50 Mad. 534, anything directly opposed to the view expressed in Ramasami Iyer v. Venkatarama Iyer (1923) 45 M.L.J. 203 : I.L.R. 46 Mad. 815.

    12. In any view it is not denied that if the alienating coparcener himself files a suit for partition there is no legal impediment to the alienated items being allotted to the share of the alienating coparcener; but it is contended that the present is not such a suit. We are unable to agree with this argument. On a fair reading of the plaint it is abundantly clear that the suit is one for general partition.

    13. After setting out the averments in the plaint and the written statement and the facts relating to the claim of the plaintiff for partition and allotment of the properties in the hands of the alienee, the Court proceeded.

    14. In this case it is a matter of indifference whether that equity can be regarded as arising on the date of the alienation in 1932 or on the date of the present suit. The result is in either view the same. It is true that the Official Receiver representing the estate of the first defendant was a party to O.S. No. 9 of 1943, but we are unable to see how the adjudication in that suit would bar the defendants from seeking their equity. We are therefore of the opinion that the plaintiff is not entitled to claim a share in the properties in Schedule A as he is in possession of family assets far exceeding in value the properties set out in that schedule and in Schedule C.

    15. The appellant will pay one set of costs to all the contesting respondents divisible among them according to the value of the properties held by each and they will also be entitled to their printing charges.

    Use AI to get other relevant cases.

    Comments

    R. Krishnamoorthy Iyer v. R. Nataraja Aiyar And Others.
    (Apr 15, 1947)