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S. Kanthimathinatha Pillai v. Vayyapuri Mudaliar .

Madras High Court
Mar 1, 1962
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Structured Summary of the Opinion

Factual and Procedural Background

The suit concerned recovery of possession with mesne profits against a usufructuary mortgagee (the 13th defendant). The key facts established by the record are:

  • Velayudhan Pillai, the original owner of the suit property, died on 6-1-1954 leaving a registered will.
  • After his death, his widow Ramu Ammal held the property in her own right under stridhana law of succession.
  • Their daughter Kanthimathi Ammal succeeded to the property; under Hindu Mitakshara succession she had only a life (limited) interest.
  • Kanthimathi executed a usufructuary mortgage over the suit property; the assignee of that mortgage ultimately was the 13th defendant.
  • Kanthimathi was alive when the Hindu Succession Act, 1956 (Act XXX of 1956) came into force; she died without issue on 7-2-1957.
  • The plaintiff (appellant) sued for recovery of possession as (a) reversioner of Velayudhan Pillai and (b) as heir of Kanthimathi Ammal. The trial court decreed the suit.
  • On first appeal the District Judge observed that Section 14 of the Hindu Succession Act had enlarged Kanthimathi's limited interest into an absolute interest before her death; the parties do not dispute that enlargement occurred.
  • This opinion arises on second appeal (the text refers to the "second appeal" being allowed to the extent indicated).

Legal Issues Presented

  1. Whether the enlargement of Kanthimathi Ammal's limited (life) interest into an absolute interest by Section 14 of the Hindu Succession Act, 1956, operated to enlarge the rights of the usufructuary mortgagee (assignee) ipso facto.
  2. Whether the doctrine of "feeding the estoppel" under Section 43 of the Transfer of Property Act can operate to estop the heir (plaintiff) from questioning the mortgagee's right to continue in possession when the mortgage was taken from a limited owner who later acquired an absolute interest.
  3. Whether the heir (plaintiff) was required, before suing for possession, to bring a specific suit to set aside the alienation made by the limited owner.

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The plaintiff asserted rights both as the reversioner of Velayudhan Pillai and as the heir of Kanthimathi Ammal and claimed entitlement to possession of the mortgaged property.
  • The plaintiff relied on the position that Kanthimathi's original interest was limited (life interest) and that ordinarily such an interest would not subsist in favour of the mortgagee beyond her lifetime.
  • The record also establishes that no attempt was made to show that the usufructuary mortgage was executed for any necessity that would bind the reversioner to the limited owner.

Respondent's (Usufructuary Mortgagee / Assignee) Arguments

  • The mortgagee argued that because Kanthimathi's interest was enlarged into an absolute interest by Section 14 before her death, the mortgagee's interest must also have been enlarged ipso facto.
  • The mortgagee contended that the doctrine of "feeding the estoppel" embodied in Section 43 of the Transfer of Property Act prevented the heir from questioning the mortgagee's right to continue in possession until the mortgage was extinguished.
  • The mortgagee argued that the heir (plaintiff) should have first sued specifically to set aside the alienation executed by the limited owner before seeking possession.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kotturu-swami v. Veerawa, AIR 1959 SC 577 Establishes that enlargement of a woman's limited interest under Section 14 of the Hindu Succession Act does not automatically enlarge the rights of an alienee (including a mortgagee) who took the interest with knowledge that it was limited and without necessity. The court relied on this Supreme Court authority to hold that the mortgagee's rights were not enlarged by Section 14 and that the mortgagee should not be benefited by the subsequent statutory enlargement.
Marudakkal v. Arumugha Gounder, 1958-1 Mad LJ 101; AIR 1958 Mad 255 Interprets Section 43 of the Transfer of Property Act, holding that the portion dealing with erroneous representation cannot be invoked where the alienation is by the holder of a woman's estate that is not binding on reversioners. The court adopted and associated itself with this bench judgment to reject application of Section 43 estoppel in the present facts, concluding that there was no representation by the limited owner which the alienee relied upon.

Court's Reasoning and Analysis

The court proceeded by addressing each defence advanced by the mortgagee and explaining why none of them provided a valid bar to the plaintiff's action:

  1. On the effect of Section 14 of the Hindu Succession Act: the court accepted (as the parties did) that Kanthimathi's limited interest had been enlarged into an absolute interest prior to her death. However, relying on the reasoning in Kotturu-swami v. Veerawa, the court held that this statutory enlargement did not operate to enlarge the mortgagee's rights. The legislative purpose was to improve the legal status of Hindu women who were in possession when the Act came into force; it was not intended to benefit purchasers or other alienees who, "with their eyes open", had taken an interest from a limited owner without necessity. The court explained there was no principled distinction between a sale and a mortgage for this purpose.
  2. On Section 43 (doctrine of "feeding the estoppel"): the court noted that Section 43 can operate where there was a fraudulent or erroneous representation by the alienor that he had an absolute title. Applying the reasoning from Marudakkal v. Arumugha Gounder, the court held that in the case of an alienation by a holder of a woman's estate (which is not binding on reversioners) there is no such representation that the alienee can be said to have relied upon. Therefore the estoppel doctrine could not be invoked to protect the mortgagee in the present facts.
  3. On the contention that the heir must first set aside the alienation: the court characterised the District Judge's contrary observation as resting on a fallacy. Because the alienation (the usufructuary mortgage) was valid only during the lifetime of the limited owner and the mortgagee's interest was not enlarged by the subsequent statutory change, there was no necessity for the heir to first set aside the alienation to obtain possession. A straightforward suit for recovery of possession on the ground that the usufructuary mortgage had ceased to subsist was maintainable.
  4. Having rejected the mortgagee's substantive defences, the court nevertheless recognised equities in favour of the mortgagee because Kanthimathi had died not long after execution of the mortgage. To balance these equities, the court limited the relief: it granted a decree for possession only (denying mesne profits), made the decree enforceable only after three months if possession was not surrendered in the meantime, and provided that future mesne profits would accrue only after enforcement. The court expressly declined to decide on the enforceability of the mortgage debt against the heir, leaving parties to their remedies on that point.

Holding and Implications

The second appeal was allowed to the extent indicated: the plaintiff is entitled to a decree for possession of the mortgaged property, but without mesne profits, and the decree is enforceable only after a period of three months from the date of the judgment if possession is not rendered earlier by the assignee in possession.

Implications and direct consequences:

  • The mortgagee (assignee / 13th defendant) cannot rely on the statutory enlargement of Kanthimathi's interest under Section 14 to claim an enlarged or perpetual right to possession.
  • The doctrine of "feeding the estoppel" under Section 43 of the Transfer of Property Act does not assist the mortgagee in these facts because there was no representation by the limited owner that she had an absolute title on which the mortgagee relied.
  • The plaintiff need not first set aside the alienation by way of a separate proceeding to obtain possession where the alienation was valid only during the life of the limited owner and did not vest an enlarged interest in the mortgagee.
  • The decree grants possession but denies mesne profits until after three months; mesne profits will begin to accrue only after the decree becomes enforceable if possession has not already been surrendered.
  • The court expressed no view on whether the mortgage debt is extinguished or whether it is enforceable as a money claim against the heir; that issue is left open for the parties to pursue their remedies.
  • Costs: the parties will bear their own costs. The court refused leave as noted in the record.

The court's decision applied existing precedents and statutory interpretation; it did not purport to set a novel principle beyond the application of those authorities to the facts before it.

Show all summary ...

1. This appeal by the plaintiff in a suit for recovery of possession with mesne profits, involves a question of considerable interest. We may take the following facts as established beyond controversy by the record. One Velayudhan Pillai, the original owner of the suit property, died on 6-1-1954, leaving a registered will. After the death of this testator, the common ground now between the parties is that his widow Ramu Ammal held the property in her own right, according to the stridhana law of succession. Her daughter Kanthi-mathi Ammal succeeded to the property after Ramu Animal, and the parties are agreed that, according to the law of Hindu Mitakshara succession, Kan-thimathi Ammal had only a life interest. This Kanthimathi Ammal executed a usufructuary mortgage in respect of the suit property, the assignee of which, ultimately, was the 13th defendant in the suit. Kanthimathi Ammal was alive when the Hindu Succession Act XXX of 1956 came into force. She died on 7-2-1957, without issue.

2. The plaintiff (appellant) instituted the suit for recovery of possession as against the usufructuary mortgagee in possession (13th defendant) on the following basis. Kanthimathi Ammal was, admittedly the holder of a limited or life interest. She could certainly create a usufructuary mortgage over the property, but, ordinarily, that interest would not subsist in favour of the mortgagee beyond her lifetime. Under those circumstances, the plaintiff broadly pleaded, both as the reversioner of Velayu than Pillai and as the actual heir of this Kanthimathi Ammal, that he was entitled to possession of the mortgaged property. The usufructuary mortgagee (respondent) contested the suit upon certain grounds which we shall immediately examine. In the trial court, the suit was decreed. In the first appeal, the learned District Judge of Tirunelveli observed, and the correctness this observation is not in dispute, that the lower court was in error in thinking that S. 14 of Act XXX of 1956 did not enlarge the limited interest of Kanthimathi Ammal in the suit property to an absolute interest. The learned Judge pointed trot that the word “possession” as occurring in section 14 of the Act, would imply possession of any character or category recognised by law, and not merely physical possession. As I have stated it, the parties now do not dispute that the interest of Kanthimathi Ammal became enlarged to an absolute interest before her death.

3. The following questions obviously arise for determination, before, the mortgagee (respondent) could be called upon to surrender possession to the plaintiff, whether the plaintiff be viewed as the reversioner of Velayuthan Pillai, or as the heir of Kanthimathi Animal Before formulating the questions that arise for determination, I may clarify one of two ancillary issues of fact Firstly, it was well established that plaintiff was the heir of Kanthimathi Ammal, in addition to being the nearest reversioner of Velayuthan Pillai. Secondly, no attempt was made to show that the usufructuary mortgage, Ex. B.1, was executed for any necessity, which would ordinarily bind the reversioner to a Hindu widow, or other limited holder of a woman's estate. It is sufficient to set forth the following observation from paragraph 16 of the judgment of the first court:

“No attempt has been made to show that Ex. B. 1 was executed for any necessity.”

We may hence take it (1) that plaintiff is the heir of Kanthimathi Ammal and (2) that the assignee (13th defendant) cannot plead, on the facts of the record, that the mortgage was executed for legal necessity which would bind the reversioner to the limited owner.

4. Nevertheless, it is obvious that the mortgagee (13th defendant) could prima facie resist the suit upon other grounds as well. He could plead, for instance, that since the interest of Kanthimathi Ammal was enlarged to an absolute interest, before her death, the interest of the mortgagee or the assignee was also enlarged ipso facto. Secondly, the mortgagee could plead that upon the doctrine of “feeding the estoppel”, the principle embodied in Section 43 of the Transfer of Property Act. The heir of Kanthimathi Animal was estopped from questioning the right of the mortgagee to continue in possession till the extinction of the mortgage, because Kanthimathi Ammal acquired an absolute interest before her death. Thirdly, it could be pleaded by such a mortgagee that the heir (plaintiff) could not sue for possession, without specifically suing to set aside the alienation by the person under whom he claims, the limited owner. This argument is sought to be pressed, upon the basis that the plaintiff is suing as the heir of Kanthimathi Ammal, as far as the arguments in second appeal are concerned, since the source of his right as the reversioner to Velayuthan Pillai is not now in controversy or agitated in his favour.

5. I have carefully examined all these arguments. The last of them appears to have found favour with the learned District Judge, in the first appeal. But I have no doubt that on deeper scrutiny, it will be found that none of these arguments is a valid defence to the present suit. There are also other authorities in support of this view. It will hence be sufficient to set them forth here.

6. As far as the enlargement of the right of Kanthimathi Ammal under Sec. 14 is concerned, there can be no doubt whatever that this enlargement, which is admitted, does not affect the right of the mortgagee or enlarge his interest thereby. This was pointed out, in no uncertain terms, by their Lordships of the Supreme Court in Kotturu-swami v. Veerawa, AIR 1959 SC 577 in a passage. The reason for this view is that the real object of the Act was to improve the legal status of Hindu women, enlarging their limited interest in property inherited or held by them into an absolute interest, provided that such limited owners were in possession of the property when the Act came into force. The legislature never intended that alieness from such holders of a Hindu Woman's estate, who, in the language of their Lordships “with their eyes open purchased the property from the limited owners without justifying necessity before the Act came into force, and at a time when the vendors had only a limited interest of Hindu woman”, should be benefited by any consequential and auto matic enlargement of their interest. The passage applies with equal force to a mortgagee from a limited owner, without necessity and with due knowledge of the character of the rights possessed by the mortgagor.

7. For clearly there is no room, in principle, for distinguishing the case of a mortgage, which is one kind of alienation, from an outright sale, which is another kind. The usufructuary mortgagee in the present case, therefore, obtained this mortgage with full knowledge that it would subsist only during the lifetime of Kanthimathi Ammal. He was further aware that the loan was not for any necessity that would bind the reversioner to the lady. He was prepared to take that risk. I do not see why the subsequent coming into force of Sec. 14 of the Act should enlarge his rights, in any sense.

8. The argument with regard to Sec. 43 obviously fails, upon the plain terms of that section itself. For the doctrine of “feeding the estoppel” can apply only where alienor, vendor or mortgagor, makes a fraudulent or erroneous representation-that he was authorised to transfer interest in the property by virtue of an absolute title possessed by him. It is only in such case that the subsequent enlargement of the interest of the alienor or transferor will benefit the transferee; in such a case, certainly, an heir or person claiming under the alienor may be equally estopped. The matter was noticed at some length in Marudakkal v. Arumugha Gounder, 1958-1 Mad LJ 101 : (AIR 1958 Mad 255), the judgment of a Bench of this court. After setting forth the terms of Sec. 43, the learned Judges observed:

“The first part of Sec. 43 relating to erroneous representation cannot therefore be brought into play in the case of an alienation by the holder of a woman's estate, which is not binding on the reversioners.”

The learned Judges gave the reason that, in such a context, “it cannot be said that there was any representation on the part of the woman, which the alienee, unaware of its truth or effectiveness, acted upon.” I respectfully associate myself with this reasoning, and hold that the principle cannot be invoked to benefit the mortgagee in the present case.

9. Finally, I have to notice the argument that a suit of this character is not maintainable, because the plaintiff is suing as the heir of Kanthimathi Ammal, and he is hence bound to sue specifically to set aside the alienation, before he could obtain possession. The matter has been put in the following form by the learned District Judge in first appeal:

“If in the view I have taken Kanthimathi Ammal was the full owner by virtue of Section 14 of the Hindu Succession Act, any person claiming under her will have to set aside any alienation which he attacks.”

I think that this observation is based upon an evident fallacy. The observation would certainly hold good if Sec. 14 had operated, not merely to enlarge the interest of Kanthimathi Ammal into an absolute interest, but equally to enlarge the right of the mortgagee. But that is not the case. There is no necessity to set aside the alienation, for the simple reason that the alienation was valid during the lifetime of the limited owner alone, and, was understood to be so valid between the parties. The subsequent enactment did not operate, in law, to enlarge the interest of the mortgagee. That being the case, the simple suit for recovery of a possession, on the indisputable ground that the mortgage was no longer subsisting, was certainly maintainable. I have been shown no reason for thinking otherwise.

10. For all these reasons, I am of the view that the mortgagee or the assignee cannot resist this action for recovery of possession of the hypo-theca, because of the simple ground that the usufructuary mortgage is no longer subsisting. However, since there are certainly some equities in favour of the mortgagee or the assignee, Kanthimathi Ammal, having died not very long after the execution of the suit mortgage, I direct that the their (plaintiff) shall now have a decree for possession only, without mesne profits. I further direct that the decree shall be enforceable only after a period of three months from this date, if possession is not rendered in the meanwhile by the assignee in possession (respondent). Future mesne profits will accrue only thereafter. With regard to the mortgage debt itself, learned counsel for the respondent urges that the debt is not extinguished, and that it is enforceable against the heir as such as a claim for money lent. I express no view upon the tenability of this argument, and the parties will have to be left to their remedies, if any, in that respect. The second appeal is accordingly allowed to the extent indicated above.

11. The parties will bear their own costs throughout. Leave refused.

IF/N/V.B.B

12. Appeal allowed.