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  • article of the Limitation Act. (11)
  • Art. 44 of the Limitation Act,
  • S. 28, Limitation Act.
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Citation Codes
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citation codes
Case Number
Attorney(S)
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  • article of the Limitation Act. (11)
  • Art. 44 of the Limitation Act,
  • S. 28, Limitation Act.
Smart Summary

Factual and Procedural Background

The respondent filed a suit seeking declaration of a one-fourth share in a 40-cent garden land (with coconut plantations) and partition by metes and bounds. She grounded title on a document executed by her grandmother on 27 October 1942 granting the grandmother a life interest; after the grandmother's death, mutation was effected in the respondent's name and she paid tax. Even during the grandmother's lifetime the undivided one-fourth share was leased to the appellant, who continued as lessee after the grandmother's death.

The respondent alleged that in 1948 her father had conveyed her right in the property to the appellant by a release dated 25-4-1948 and that this release was void, inoperative and unsupported by consideration and necessity; she discovered this transfer in 1963 and filed the suit to recover her share. The appellant claimed the respondent had no subsisting right because the father had conveyed her share in 1948, that he had acquired possession of three-fourths (and had sold half the property), and alleged the release was executed to meet the respondent's marriage expenses and that the respondent had knowledge of the release.

At trial the trial court found the respondent's one-fourth share could not be disputed but held the release (Ex. A-6) valid and binding; the suit was dismissed. The respondent appealed to the District Court, Nagarcoil. During the appeal she was permitted to raise an additional ground (I.A. 128 of 1964) claiming the release had been registered in the wrong registration district (Colachal vs. Attingal) and was therefore a fraud on registration. The lower appellate court found the release supported by consideration and necessity but held it void on the new ground of fraud on registration, and remanded issues of mesne profits for fresh trial. The defendant (appellant before this Court) has preferred the present appeal against that judgment and decree.

Legal Issues Presented

  1. Whether the release deed Ex.A-6 executed by the respondent's father is void ab initio because it was registered outside the registration district in which the property is situated (i.e., whether registration in a wrong office renders the document void for fraud on registration).
  2. Whether the lower appellate court properly permitted the respondent to raise, for the first time on appeal, the plea of fraud on registration (alleged registration in the wrong sub-registrar's office) without that plea having been pleaded or supported by evidence at trial and without giving the appellant an opportunity to defend that new claim.
  3. If Ex.A-6 is treated as voidable (rather than void), whether the respondent's suit is time-barred under Section 28 of the Limitation Act because she did not sue within three years of attaining majority to set aside an alienation by her guardian.

Arguments of the Parties

Respondent's Arguments

  • She claimed a one-fourth share in the suit property based on a 1942 document executed by her grandmother which granted life interest to the grandmother; mutation was in her name and she paid the tax.
  • She asserted the 25-4-1948 release executed by her father conveying her right to the appellant was void, inoperative and unsupported by consideration and necessity; she sought declaration and partition of her one-fourth share.
  • On appeal she raised an additional ground (I.A. 128 of 1964) that Ex.A-6 had been registered in the wrong registration district (Attingal rather than Colachal) and was therefore a fraud on registration.

Appellant's Arguments

  • The appellant contended that the respondent had no subsisting right because her father conveyed her right in 1948 and he became absolute owner, possessing three-fourths and having sold half the property.
  • He alleged the release was executed to meet marriage expenses of the respondent and that the respondent had knowledge of the release and had acquiesced in the arrangement.
  • At the appellate stage he effectively argued he was prejudiced because the fraud-on-registration plea was not pleaded at trial and he had no opportunity to meet it; implicitly he contended the lower appellate court should not have allowed the new plea without evidence and opportunity to defend.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Lakshmikantaraju v. Jagannatharaju, AIR 1924 Mad 281 Registration is not vitiated by inclusion of property not belonging to the executant where there is no collusion between parties and no intention to include land not belonging to the executant. The Court relied on this principle to indicate that mere registration in the wrong office, absent collusion, does not invalidate the deed as fraud on registration.
Veerasalingam v. Kondayya, AIR 1925 Mad 430 Followed the principle that registration is not vitiated by an inclusion of non-existent or non-owned property unless there is collusion intended to defraud the registrar. Followed as authority supporting the view that there must be collusion to constitute fraud on registration.
Sobhanadri Apparao v. Venkatarama Rao, AIR 1931 Mad 45 To establish fraud on the registration law there must be collusion between parties; tests include whether the executant had property to convey or genuinely believed he could convey it, and whether the parties intended the conveyance. The Court used this authority to emphasize that absence of collusion means no fraud on registration; mere smallness of property or intent to register in a particular office is not by itself fraud.
Ramanathan v. Delhi Badaha Thevar, AIR 1931 Mad 335 There must be the strongest evidence of collusion before depriving mortgagees (or parties) of their rights because of invalid registration; burden of proving fraud rests on the party alleging it. The Court applied this to place the burden on the respondent to adducing "strong, cogent and clear" evidence of collusion, which was absent on the record.
Seth Suganmal v. Umraobi, AIR 1938 Nag 550 (citing Sah Mukhunlall v. Sah Koondunlal (1875) 24 Suth WR 75 (PC)) Registration by an officer without jurisdiction is invalid; where a document was registered in a wrong office innocent persons may be misled but the proper course may include re-registration or remedies under relevant statutes; mistakes by parties or officers can occur. The Court invoked these authorities to observe that registration in a wrong office might be due to mistake and that remedies such as re-registration may exist; but also to stress that the specific plea of fraud on registration was not pleaded or proved at trial.
Siddik Mahomed Shah v. Mt. Saran, AIR 1930 PC 57 No amount of evidence can be considered upon a plea that was never put forward at trial; appellants cannot ordinarily raise new grounds for the first time on appeal if they are factual in nature and could have been dealt with at trial. The Court relied on this Privy Council authority to hold that the lower appellate court should not have entertained the new plea of fraud on registration raised for the first time in appeal when it depended on facts not on the record.
Bajroga Khatun v. Province of Bengal, AIR 1940 Cal 113 Where facts are not clear and undisputed, questions like limitation should not be raised in appeal if the necessary facts were not pleaded and attention was not drawn to them at trial. The Court relied on this to support the conclusion that matters dependent on facts (such as registration locality and limitation) cannot be raised belatedly on appeal without relevant pleadings or evidence at trial.
Ramaswami v. Govindammal, 56 Mad LJ 332 (AIR 1929 Mad 313) A suit by a ward to recover possession to set aside an alienation by her guardian must be filed within three years of attaining majority (S. 28 Limitation Act applies). The Court applied this rule to hold that if Ex.A-6 is only voidable, the respondent's claim was barred because she did not file within three years after attaining majority.
Alamelummal v. Krishna Chetti (cited as following Ramaswami) Followed the principle in Ramaswami regarding limitation for wards seeking to set aside guardian's alienation. The Court cited it as an authority consistent with Ramaswami in support of applying S.28 to bar the respondent's suit.

Court's Reasoning and Analysis

The Court structured its reasoning around three linked points: jurisdictional/fraud issues about registration, the evidentiary burden to prove collusion, and the consequences under limitation law if the deed is only voidable.

First, the Court identified the central factual-legal contention: Ex.A-6 had been registered in an office other than the registration district where the property was situate, and the lower appellate court allowed this new plea of "fraud on registration" though it was not pleaded or argued at trial. The Court observed that the lower appellate court allowed the parties to argue the point without giving the appellant an opportunity to defend against a newly raised factual allegation.

Second, relying on a line of Madras High Court authorities (Lakshmikantaraju; Veerasalingam; Sobhanadri Apparao; Ramanathan), the Court explained the controlling legal principle: registration will be vitiated as a fraud on the registration law only if there is collusion between the parties to practise a fraud upon the registering officer. Absent collusion, registration in a wrong office does not automatically amount to fraud. The Court reiterated that the party alleging fraud bears the burden to prove it by strong, cogent and clear evidence.

Third, applying those principles to the record before it, the Court found "absolutely no material" to show collusion between the respondent's father and the appellant. The Court reasoned that at best the registration in a wrong office could have been a mistake by the parties or the sub-registrar (circumstances recognized in Seth Suganmal and the cited Privy Council authority), which does not amount to the requisite fraud that would render a document void ab initio.

Having concluded that Ex.A-6 was not shown to be void for fraud on registration but, at most, voidable because of erroneous registration, the Court turned to the limitation consequence: where a guardian alienates a ward's property, a suit to set aside such alienation must be brought within three years of attaining majority under Section 28 of the Limitation Act (Ramaswami and related authorities). The respondent had not filed suit within that period after attaining majority.

The Court therefore held that the respondent's remedy was time-barred. The Court also criticized the lower appellate court's allowance of a new factual plea in appeal (fraud on registration) in the absence of pleadings or evidence at trial, citing Siddik Mahomed Shah and Bajroga Khatun to support the position that matters depending on disputed facts cannot be raised for the first time on appeal.

Holding and Implications

Core Ruling: Appeal allowed; the suit is dismissed.

Implications:

  • The Court held there was no evidence of collusion to establish a fraud on registration; registration in a wrong office, without collusion, does not make the deed void ab initio but at most voidable.
  • Because the deed was at most voidable, the respondent's action to set aside the alienation by her guardian was governed by Section 28 of the Limitation Act; the respondent did not sue within three years of attaining majority and therefore her claim was time-barred.
  • The immediate consequence is that the respondent's suit for declaration and partition fails and is dismissed. Each party was ordered to bear their own costs throughout. The Court declined leave (as recorded in the order).
  • The opinion does not purport to lay down a new legal precedent; it applies and explains existing authorities on fraud in registration, the burden of proof for collusion, and the limitation consequence for wards seeking to set aside guardian alienations.

Order in the original opinion: "In the result, the appeal is allowed and the suit is dismissed. Each party will bear his or her costs throughout. No leave. Appeal allowed." (as recorded in the source text)

    Muhammad Abdul Razack v. Syed Meera Ummal Alias Raviyathummal

    (1) This appeal arises out of a suit filed by the respondent for declaration of her one-fourth share in the suit property and for partition of the same by metes and bounds.

    (2) The suit property is a garden land of an extent of 40 cents with coconut plantations. The respondent based her title to the property on the foot of a document executed by her grand-mother on 27th October 1942, providing life interest for herself. After the demise of the grandmother, mutation was effected in the name of the respondent and she was paying the tax. Even during the lifetime of the respondent's grandmother, her undivided one fourth share was leased to the appellant(defendant) and therefore even after the death of the grandmother the appellant continues to be a lessee. In the meantime the respondent's father divorced her mother. Therefore her mother married a second time and the respondent was living with her mother. Her marriage was performed by her mother. In 1963, the respondent came to know that her father had conveyed the very property, which belonged to her to the appellant, by a document dated 25-4-1948 in the form of a release in favour of the appellant. The respondent herein, therefore, filed the present suit for declaration as aforesaid, as the document of release was void, inoperative and not supported by consideration and necessity.

    (3) The suit was resisted by the appellant that the respondent had no subsisting right over the suit property, that her right in the property was conveyed by her father in the year 1948 and thus the appellant has become the absolute owner of the property, having already possessed the three-fourth share. He had already sold half of the suit property and was therefore in possession of the remaining half. He also alleged that the document of release was executed for the purpose of meeting the expenses in connection with the marriage of the respondent. The respondent was aware of the execution of the release by her father conveying her right in the property, and had acquired in that all these years.

    (4) On these pleadings, the parties went to trial. The trial court found that the respondent's one-fourth share over the property could not be disputed, that the release deed Ex. A-6 was valid and binding on the respondent, as she had failed to set aside the same at that distance of time. In the end, the suit was dismissed. The plaintiff preferred an appeal to the District Court, Nagarcoil. During the hearing of the appeal, the plaintiff filed an application I. A. 128 of 1964, for raising an additional ground namely that the release deed in respect of the property situated within the registration district of Colachal was registered in the office of the Sub-Registrar of Attingal and that it was void as being fraud on registration. Hearing the appeal on merits, the lower appellate court found that the release deed by the respondent's father was supported by consideration and necessity but found that the release deed was void on the additional ground raised in the lower appellate court. However, as the trial court had not considered the evidence with regard to mesne profits the lower appellate court remanded the suit for fresh trial on those issues. It is against this judgment and decree, the defendant has preferred this appeal.

    (5) In this appeal, the most important question that has to be considered is whether the release deed Ex.A-6 by the respondent's father is void ab initio as it was registered outside the registration district in which the property is situate. This plea was not taken by the respondent in her plaint, nor was it argued during the trial of the suit. It was only at the appellate stage the lower appellate Court allowed the additional ground to be raised by the respondent. No opportunity was given to the appellant by way of defence. The lower appellate court straightway allowed the parties to argue whether the document, Ex. A-6 was a fraud on registration. Even assuming that Ex. A-6 was a fraud on registration still we have to consider whether there is any material on record to come to the conclusion that on account of fraud played by the parties the document was registered.

    (6) As far as our High Court is concerned, it has been held in Lakshmikantaraju v. Jagannatharaju, AIR 1924 Mad 281 that where there was no collusion between the mortgage and the mortgagors and there was no intention on the part of the mortgagee to include a land not belonging to mortgagors, registration is not vitiated by the fact that property not in existence was included in the deed to effect registration at a particular place. The principle laid dowse in the above case has been followed in Veerasalingam v. Kondayya, AIR 1925 Mad 430 (1). The learned Judge, while considering the point whether the mortgage was void on the ground that its registration was effected by a fraud on the registering officer, inasmuch as the mortgagor intentionally included therein for purposes of registration property which did not belong to him, observed that in those circumstances, he must accept the ruling of the Bench in AIR 1924 Mad 281 and held:

    "Where no collusion by the mortgagee to assist a fraud by the mortgagor in respect of the registration of the document has been made out, the registration is not valid, at least so far as the interests of the mortgagee are concerned"
    .

    (7) Similarily in Sobhanadri Apparao v. Venkatarama Rao, AIR 1931 Mad 45, a Division Bench of this Court observed:

    "The general effect of all these decisions is that to establish fraud on the registration law there must be collusion between parties to practise a fraud upon the registering officer, and that as a test of whether the parties had an intention to practise such a fraud, it had primarily to be considered whether there was a property that could be conveyed by the party executant or as to which a genuine belief existed that he could convey it. Another point to be considered is whether there was any intention on the part of the parties that it should be conveyed to the executee, though it is not perfectly clear that it will follow as a matter of course that a fraud on the registration law has to be deduced from the absence of such intention. The facts that the property is small, or that the primary intention was that registration should be in a particular office will not in themselves constitute acts of fraud"
    .

    (8) Again in Ramanathan v. Delhi Badaha Thevar, AIR 1931 Mad 335 a D.B. of this court consisting of Beasley, C.J and Curgenven, J have observed that there should be that strongest possible evidence on the fact that there was collusion between the mortgagors and the mortgagees before the mortgagees can be deprived of the mortgage amount owing under the mortgage by reason of its registration being invalid because of the inclusion of a small item of property not belonging to the mortgagors, and that it is not a question of negligence but of fraud and the burden of proving this lies upon the party alleging it.

    (9) On a review of the case law on this subject, I am of opinion that in the instant case there is absolutely no material on record to prove that there was any collusion between the respondent's father and the appellant. It is the duty of the respondent to prove that there was collusion by adducing strong, cogent and clear evidence. As I said there is absolutely nothing on record to give a finding that there was collusion. At the most it would be a case where by mistake of the parties concerned the release deed which have been registered in a wrong office and that would not amount to fraud being played by any one. Really if it is a mistake of the parties concerned, what it is to happen. Are the unfortunate parties to be without any remedy ? These questions were posed by the learned Judges of the Nagpur High Court in Seth Suganmal v. Umraobi, AIR 1938 Nag 550. The learned Judges extracted the observations of Sir Barnes Peacock in Sah Mukhunlall v. Sah Koondunlal, (1875) 24 Suth WR 75 (PC)

    "If the registering officer refuses to register the mistake may be rectified upon appeal under S. 38 (now S. 72) or upon petition under S. 84 (now Ss.73-75) as the case may be but if he registers where he ought not to register innocent persons may be misled and may not discover until it is too late to rectify it the error by which if the registration is on consequence of it to be treated as a nullity, they may be deprived of their just rights"

    The learned Judges answered the question to the effect that the registration was invalid because the concerned Sub-Registrar had no jurisdiction to accept the document for registration, the property comprised in it being outside the territorial limits of his jurisdiction and that was enough to enable the parties to present the document for registration and was enough to enable the proper registering officer to proceed as if the document was being presented before him for the first time, and that no question of limitation could arise because there was no limitation for the-re-registration of a document. In this case also, anything might have happened, namely, the parties, without knowing the correct registration office, might have registered the document in a wrong office. Or the property might have been situated on the border between two registration districts and that the parties might have presented the document at the correct registration office and the Sub-Registrar might have thought that the document presented to him could not be registered in his office and directed them to the other registration office. Or the Sub-Registrar of the office might have been under the genuine impression that the could register the document in his office and he might have registered it in good faith. The plaintiff respondent has not at all pleaded this fact of fraud on registration in her plaint and her plaint is completely silent on this point. This point was neither raised nor argued at the stage of trial and there is no evidence also on the point. The lower appellate Court, therefore, ought not to have allowed the plaintiff to raise a new plea. As observed by the Privy Council in Siddik Mahomed Shah v. Mt. Saran, AIR 1930 PC 57 (1), no amount of evidence can be looked into upon a plea which was never put forward. The general rule is that the appellant cannot be allowed to raise in his memorandum of appeal a new ground; nor can be raise in his memorandum of appeal any objection, which if it had been taken in the trial Court, might have been cured by appropriate amendment or otherwise. It is true that there are certain exceptions to this rule such as question of law, question of limitation, res judicata, etc., which can be substantiated on the facts already on record. But a matter which though of law, depends upon the question of fact for its determination cannot be raised for the first time in appeal. As I said, in this case, there is no plea taken either in the plaint or is there anything in evidence as to the document being registered at a wrong registrar's office where the property is not situate. Unless there is evidence on the record that the property is situate in a wrong place or the parties had deliberately chosen a wrong registration office, this fact cannot be urged in the court of appeal as an act of fraud on registration. In Bajroga Khatun v. Province of Bengal, Air 1940 Cal 113 the learned Judges observed that where the facts are not clear and undisputed the question of limitation should not be allowed to be raised in appeal as the necessary facts had not been pleaded and so attention had not been drawn to them at the time of the trial.

    (10) Once I come to the conclusion that the document is not void, because it has been registered in wrong office, I must hold that it is only voidable in character. If it is voidable in character, then it is clear and settled law that a suit to recover possession by a ward should be filed within 3 years of attaining majority, to set aside the alienation made by her guardian. If the ward fails to file a suit within 3 years then her title becomes extinguished under S. 28, Limitation Act. The law on the subject is so clear that it is unnecessary to discuss the principle in extenso, and it is enough to cite the decision in Ramaswami v. Govindammal, 56 Mad LJ 332: (AIR 1929 Mad 313) which has been followed in Alamelummal v. Krishna Chetti, . It is clear that in the instant case, the plaintiff respondent did not file the suit within 3 years after attaining majority, and her suit has therefore to fail. Further both the courts have gone into the question of consideration and the trial Court has found that Ex. A-6 is supported by consideration and the lower appellate Court has characterised the question as not very relevant. However, I do not see any equity in this case, because the property has been alienated by the father to meet the marriage expenses of his daughter. The respondent has filed the suit long after her marriage only for reasons best known to herself for recovering the property against her brother. Because the trial court found that Ex. A-6 was valid and binding on the plaintiff the plea of fraud on registration was presumably taken in the appellate court to escape the inconvenient Art. 44 of the Limitation Act, and the parties cannot be encouraged to take such a new plea in the appellate stage to circumstance this article of the Limitation Act.

    (11) In the result, the appeal is allowed and the suit is dismissed. Each party will bear his or her costs throughout. No leave.

    (12) Appeal allowed.

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    Comments

    Muhammad Abdul Razack v. Syed Meera Ummal Alias Raviyathummal
    (Dec 8, 1965)