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Madiammal v. Glory Chandrakantha

Madras High Court
Feb 3, 1976
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Factual and Procedural Background

The appellant (plaintiff at trial) sued for declaration of title and for a permanent injunction in respect of one acre of land with a terraced building (the "suit property") in Jegathala Village, Coonoor Taluk, alleging that the property had been purchased in 1944 by her brother Mutha Gowder (P.W.1) and Boja Gowder (father of D.W.1) as partners of "Mutha Gowder and Company" under Exhibit B-5. After Boja Gowder's death and dissolution of the partnership, a partition was said to have been effected by a list dated 1st December 1957 (Exhibit A-1). The appellant further alleged that P.W.1 gifted the suit property to her by Exhibit A-4 (15th December 1965) and that she was in possession since then. The respondent (D.W.4) claimed that the purchase B-5 was by the partners in their individual capacities (not partnership property), that Exhibit A-1 was unregistered/unstamped and therefore inadmissible, and that she had purchased an undivided half-share under Exhibit B-8 (9th October 1968) and exercised cultivation and possession.

At trial the learned Subordinate Judge admitted Exhibit A-1 in evidence and found that it was a memorandum of a previously accomplished partition (not requiring registration) and that the suit property fell to P.W.1, who later gifted it to the appellant; the trial court held the appellant to be in possession and entered the decree as prayed with costs. On appeal the Additional District Judge reversed: he held Exhibit A-1 to be a partition deed requiring registration, found the appellant had not proved exclusive title or exclusive possession, and allowed the appeal in favour of the respondent. The appellant then filed a second appeal (with an additional ground raised during the appeal process), leading to the opinion summarized here.

Legal Issues Presented

  1. Whether Exhibit A-1 (dated 1st December 1957) is a mere memorandum or list of a previously accomplished partition (not requiring registration) or whether it is a partition-deed/award that requires registration and stamp and is inadmissible for want of registration/stamp.
  2. Whether the suit property was a partnership asset of "Mutha Gowder & Company" and, if so, whether the division between a partner and the representative of a deceased partner is governed by Section 22 of the Indian Partnership Act such that the document evidencing division does not require registration.
  3. Whether the appellant had proved exclusive title and possession of the suit property (entitling her to declaration and injunction) or whether the respondent had established title and possession to an undivided half-share.
  4. Whether the trial Court's admission in evidence of Exhibit A-1 precluded the respondent from raising objections later in appeal regarding stamp and registration (including the application of Section 36 of the Indian Stamp Act and procedural rules on admission of documents).
  5. Whether the Additional District Judge was correct to treat Exhibit A-1 as excluded by prior litigation (O.S. No. 59 of 1961) or otherwise to treat P.W.1 as estopped from relying on Exhibit A-1.

Arguments of the Parties

Appellant's Arguments

  • The suit property was purchased by P.W.1 and Boja Gowder as partners in 1944 (Exhibit B-5) and so formed partnership property.
  • After dissolution and Boja Gowder's death, the assets of the partnership were divided by agreement/memorandum dated 1st December 1957 (Exhibit A-1), which is a partition list recording a prior partition, not a deed that creates rights requiring registration.
  • P.W.1 became exclusive owner of the suit property by that partition and subsequently gifted the entire property to the appellant by Exhibit A-4 (15th December 1965); the appellant has been in possession since then.
  • Exhibit A-1 does not require registration because Section 22 of the Indian Partnership Act treats partnership assets as personal estate between partners and representatives; decisions of higher courts support that a record of division between a partner and representative of a deceased partner does not require registration.
  • The point about Exhibit A-1's legal character (and applicability of Section 22) was a legal point raised later in the second appeal but is allowable to be raised as a point of law at any time; the C.M.P. for that additional ground was permitted.
  • Because Exhibit A-1 had been admitted in evidence at trial, the respondent cannot, at the appellate stage, complain about inadmissibility for want of stamp (invoking Section 36 of the Stamp Act and the trial Court's admission practice under Order 13 Rule 4).

Respondent's Arguments

  • The respondent denied that the property was partnership property; she contended it was purchased by P.W.1 and Boja Gowder in their individual capacities under Exhibit B-5, and the appellant was put to proof of the existence/dissolution/allotment arising from any partnership.
  • The respondent contended that Exhibit A-1 required registration and proper stamping as it was a partition deed or award and that it was therefore inadmissible in evidence for want of registration/stamp.
  • The respondent claimed to have purchased Boja Gowder's half-share under Exhibit B-8 and asserted possession and acts of cultivation on the southern half; in consequence the appellant was only a co-owner entitled to partition (not injunction/declaration of exclusive title).
  • The respondent relied on authorities (including Ramappa v. Thirumalappa and other precedents) to support the proposition that documents effecting post-dissolution allotment of immovable property may fall within Section 17/Registration Act and/or require stamping as partition-deeds.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bageshwai Charan v. Jagarnath Kurai (A.I.R. 1932 P.C. 55; 62 M.L.J. 296) Distinction between a mere recital of fact and an instrument which in itself creates title; an instrument to fall under Section 17(b) Registration Act must purport to create/declare/assign/limit/extinguish a right of value Rs.100 or upwards. The court noted the principle but held the decision would not help the appellant because the lower appellate court found Exhibit A-1 to be the effective partition itself (not merely a recital of a prior partition).
Jiwan Ali Beg v. Bana Mai (1887) I.L.R. 9 All. 108 Clarification of the meaning under Section 17(b) Registration Act about an instrument needing to create/declare rights to fall within the section. Quoted as part of the line of authorities explaining the distinction between recital and instruments creating title; used in analysis of admissibility but not held decisive for appellant.
Ranganayaki Ammal v. Virupakshee Rao Naidu (1923) 45 M.L.J. 100; A.I.R. 1923 Mad. 621 Supports the distinction between mere recital and document creating title (citing West, J. in Krishnagi's case). Referred to in the court's review of earlier authorities; did not help appellant because Exhibit A-1 was found to be the partition itself.
Baldeo Singh v. Udal Singh (A.I.R. 1921 All. 248) Part of the judicial line treating 'declare' narrowly when construing Section 17(1)(b) of the Registration Act. Not decisive for appellant; cited in the exposition of precedent distinguishing recitals from operative instruments.
Sakharam Krishnaji v. Madan Krishnaji (1880) I.L.R. 5 Bom. 232 Earlier authority (West J.) that 'declare' implies a document effecting a definite change in legal relation to property, not mere recital. Quoted by the court in discussing whether Exhibit A-1 created rights or merely recorded them; the court found Exhibit A-1 was the partition itself, so the Sakharam principle did not favour the appellant.
Nachiappa v. Subramaniam (Supreme Court) Reiterates the approach to 'declare' and whether documents require registration. The court held Nachiappa did not help the appellant for the same reason: there was no partition prior to Exhibit A-1 in the present case.
Kashinathsa v. Naraingasa Holds that records made by Panchas that merely acknowledge partitions already made are not required to be registered. The court said this precedent would not apply because in the present case Panchayatdars had advised P.W.1 and D.W.1 and there was no prior partition dissociated in time from Exhibit A-1; thus not merely a panchas' record of an earlier division.
Ramappa v. Thirumalappa (I.L.R. (1939) Mad. 971; 1939 2 M.L.J. 649; A.I.R. 1939 Mad. 884) Where partners divide assets on dissolution, immovable properties allotted on dissolution may be declared in a document; such declaration can fall within Section 17 Registration Act and be inadmissible for non-registration. The respondent relied on this decision; the court observed that the Supreme Court later expressed a different view and treated the Madras decision as effectively dissented from by subsequent Supreme Court authority.
Ratan Lal Sharma v. Purshottam Harit (Supreme Court) Where arbitrators' award purports to create exclusive allotment of immovable property (rights over property worth over Rs.100) it requires registration and is inadmissible if unregistered. Distinguished by the court: not applicable because there was no arbitrational award in the present case nor a transfer of all assets to one partner on payment; Exhibit A-1 was not such an arbitrators' award.
A. Narayanappa v. B. Krishtappa (Full Bench, Andhra Pradesh High Court) Held that a partner's interest in partnership assets cannot be regarded as a right or interest in immovable property within Section 17(1)(b) Registration Act; transfers/relinquishments of partners' interests do not require registration. Referred to with approval; the court relied on the Full Bench's view (and later Supreme Court treatment) to support that Exhibit A-1, being a division between a partner and a representative of a deceased partner, did not require registration.
Narayanappa v. Bhaskara Krishnappa (Supreme Court) Discusses treatment of partnership assets as personal estate between partners and heirs, and the legal effect on registration requirements. The court cited this Supreme Court decision as expressing a view which, while not specifically dissenting from the Madras decision, should be taken to have disagreed with it; this supported the conclusion that Exhibit A-1 did not require registration under Section 22 Partnership Act.
Commissioner of Income-tax, West Bengal, Calcutta v. Juggilal Kamalapet (1967) 63 I.T.R. 292; A.I.R. 1967 S.C. 401 Held that a deed of relinquishment in respect of individual interests in partnership assets in favour of another (even where partnership assets include immovable property) did not require registration and was valid without registration. Cited in support of the proposition that relinquishment/division of partners' individual interests does not attract registration even if immovable property is involved; used to bolster the court's view under Section 22.
Gopal Das v. Sri Thakurji (A.I.R. 1943 P.C. 83) Explains effect of admission of documents in evidence by trial Courts and principle that objection as to proof mode must be taken at trial; endorsement 'admitted against the plaintiff/defendant' indicates document admitted as proved. The court relied on this to hold that because Exhibit A-1 had been admitted at trial, the respondent could not later complain of inadmissibility for want of stamp; procedural bar applied (also invoking Section 36 Stamp Act).
Pit Sidik Mahomad Shah v. Musammat Saran (A.I.R. 1930 P.C. 57) Principle that "no amount of evidence could be looked into upon a plea which was never put forward"; a plea not raised in defence cannot be entertained later. The court relied on this (and Bhagat Singh v. Jagwant Singh) to hold that the Additional District Judge should not have entertained the question arising from O.S. No.59 of 1961 which was not pleaded by the respondent; the appellate judge erred in using that prior suit to deny Exhibit A-1's effect.
Bhagat Singh v. Jagwant Singh (1962 / A.I.R. 1966 S.C. 1861) Affirms the principle that where a claim/plea has never been made in the defence, evidence cannot be looked into on such an unpleaded plea. Applied to conclude the respondent could not raise res judicata/estoppel reliance based on a prior suit when that plea was not in the written statement; the Additional District Judge should not have acted on that matter.
Forbes v. Steven (1870) 10 Eq. 178 Statement of equity principle that real estate bought by a partnership for partnership purposes is, as between partners and heirs, personal property distributable as such (affecting assessment of partner's interest in immovable property). Quoted in the court's review of authorities supporting the view that partnership assets, even if immovable, are treated as personal estate between partners and representatives; used to support the applicability of Section 22.

Court's Reasoning and Analysis

The court's analysis proceeded by examining (a) the evidence about purchase, partnership and partition; (b) the admissibility and character of Exhibit A-1; (c) the procedural effect of the trial Court's admission of Exhibit A-1; and (d) the legal effect of Section 22 of the Indian Partnership Act as informed by higher court decisions.

First, on the factual evidence the court found (on the basis of oral testimony of P.W.1 and D.W.1 and documentary material such as kist receipts and house-tax receipts) that:

  • The suit property had been purchased in 1944 by P.W.1 and Boja Gowder while they were partners of Mutha Gowder & Company (Exhibit B-5).
  • After the death of Boja Gowder and dissolution of the partnership, the assets were divided by agreement reflected in Exhibit A-1 on 1st December 1957; the evidence showed signatures were placed on Exhibit A-1 after discussion and settlement of each item, and other items in Exhibit A-1 were acted upon.
  • P.W.1 executed Exhibit A-4 (gift deed, 15th December 1965) transferring the suit property to the appellant, and there was supporting possession evidence (occupancy, rents, kist receipts and house-tax receipts) indicating the appellant's possession from around the time of the gift.

Second, on the legal character of Exhibit A-1 the court considered competing positions:

  • The Additional District Judge had treated Exhibit A-1 as a partition-deed requiring registration and thus inadmissible for want of registration.
  • The learned Subordinate Judge had admitted Exhibit A-1 and treated it as a memorandum of an already accomplished partition (thus not requiring registration in his view).

The appellate court examined precedents and statutory provisions. It held that Exhibit A-1 represented the division of assets of a dissolved firm between a partner (P.W.1) and the representative of a deceased partner (D.W.1). Because the partition was between a partner and the representative of a deceased partner, Section 22 of the Indian Partnership Act applied: partnership assets treated as personal/movable as between partners and representatives. The court relied on the Supreme Court decisions and the Full Bench of the Andhra Pradesh High Court which support that in such cases the record evidencing division of assets between a partner and the representative of a deceased partner is not to be treated as a document creating rights in immovable property within Section 17(1)(b) of the Registration Act; consequently such a document does not require registration.

The court also analyzed the procedural posture concerning stamp and admission. It observed that Exhibit A-1 had been admitted in evidence at the trial (the endorsement "admitted against the plaintiff" being the customary form used under Order 13 Rule 4). The respondent did not insist that the document be admitted subject to later determination of admissibility on stamp/registration grounds. The court relied on authority (Gopal Das v. Sri Thakurji) and on Section 36 of the Stamp Act to conclude that once an instrument has been admitted in evidence at trial, its admissibility on the ground of insufficiency of stamp cannot be challenged later in the same suit at the appellate stage (except in the limited circumstances allowed by Section 61). Thus the respondent could not, at this stage, complain of want of stamp even if Exhibit A-1 were properly chargeable with any stamp duty.

Addressing the Additional District Judge's reliance on the prior suit O.S. No. 59 of 1961 (in which P.W.1 had denied any agreement dated 1st December 1957), the court held that the respondent had not pleaded res judicata/estoppel in her written statement. The court therefore applied authorities (Pit Sidik Mahomad Shah and Bhagat Singh v. Jagwant Singh) to conclude it was not open to the Additional District Judge to entertain that matter afresh and treat P.W.1 as foreclosed from relying on Exhibit A-1.

On possession and title, the court preferred the findings of the Subordinate Judge: the appellant was in possession of the building and cultivated/rent receipts, house-tax receipts and kist receipts supported that position; the respondent did not produce comparable documentary proof of possession and had knowledge of the municipal records showing the appellant's name. The court rejected respondent's oral evidence of cultivation and possession and upheld the trial court's finding of appellant's possession.

Synthesizing the factual findings and legal principles, the court concluded that Exhibit A-1 did not require registration for the reason that it recorded or effected the division of partnership assets between a partner and the representative of a deceased partner and therefore fell within the ambit of Section 22 of the Indian Partnership Act and the line of Supreme Court and Full Bench authority cited.

Holding and Implications

Holding: The second appeal is allowed. The court held that Exhibit A-1 does not require registration under the Registration Act (for the reasons stated), that the appellant has title to the suit property and was in possession thereof on the date of the suit, and that she is entitled to the declaration and injunction sought. The decree of the trial Court in favour of the appellant is restored; the second appeal is allowed with costs throughout.

Implications:

  • Direct effect on the parties: The appellant succeeds — she is declared owner of the suit property by virtue of the gift from P.W.1 and is entitled to the permanent injunction restraining the respondent from interfering with her possession. Costs were awarded in favour of the appellant throughout.
  • On admissibility and procedural consequences: Because Exhibit A-1 was admitted in evidence at trial and the respondent did not insist on conditional admission, the respondent cannot, at the appellate stage in the same suit, object to its admissibility on grounds of insufficient stamp (Section 36 of the Stamp Act) — subject to the limited revisional jurisdiction provided by Section 61 of the Stamp Act.
  • On legal principle concerning partnership assets: The court applied and followed higher court decisions to hold that a division of partnership assets between a partner and the representative of a deceased partner falls within the scope of Section 22 of the Indian Partnership Act and is to be regarded as dealing with partners' personal interests rather than creating separate rights in immovable property for the purposes of registration; hence such a record does not require registration. (This was the primary legal conclusion that determined admissibility and the title outcome in this case.)
  • Precedential note: The court expressly considered and distinguished contrary earlier High Court authority (Ramappa v. Thirumalappa) in light of subsequent Supreme Court authority; the opinion relies on a line of Supreme Court and Full Bench decisions to support its conclusion. The court's ruling is based on those authorities and the facts of the case; the opinion itself applies established principles rather than announcing a novel rule beyond the holdings discussed.
Show all summary ...

1. The plaintiff, who succeeded in the trial Court but lost in the lower appellate Court, is the appellant. She filed the suit for declaration of her title to the suit property which is one acre of land with a terraced building in S. No. 153/6 of Jegathala Village in Coonoor Taluk and for a permanent injunction restraining the respondent from interfering with her possession of the property. Her case is that the suit property was purchased for Rs. 8,000 under Exhibit B-5, dated 8th December, I9I4, by her brother, Mutha Gowder (P.W 1) and one Boja Gowder, the tather of Sevanan (D.W. 1), who were partners of 'Mutha Gowder and Company'. There was a partition subsequent to the death of Boja Gowder in the begining of 1957 after dissolution of the partnership had taken place prior to 1957 between P.W. 1 and D.W. 1 on 1st December, 1957 According to the appellant, Exhibit A-1 dated 1st December, I957, which is unregistered is a partition list signed by P.W. 1 and D.W. 1 as well as the panchayatdars at whose instance the assets of the partnership were divided. Subsequently Mutha Gowder P.W. 1 gifted the suit property to the appellant under Exhibit A-4 dated 15th December, 1965 and she was in possession and enjoyment of the property since that date. But the respondent (D.W. 4) had taken the sale-deed, Exhibit B-8, dated 9th October, 1968, from D.W. 1 in respect of an undivided half-share in the suit property. Taking advantage of that sale-deed, D.W. 4 attempted to interfere with the appellant's possession of the suit property. The appellant claimed to have leased the cultivable land and to be living in the downstairs portion of the building. She alleged that the suit property is comprised in patta No. 460 and prayed for declaration and injunction.

2. The respondent denied that the suit property was purchased by the partnership, Mutha Gowder, as alleged in the plaint and contended that the property was purchased by P.W. 1 and Boja Gowder under Exhibit B-5 in their individual capacity. She put the appellant to proof of the existence of the partnership and its dissolution, as well as the allotment of the suit property to Mutha Gowder and contended that Mutha Gowder was entitled only to a moiety in the suit property and had no right to deal with it in its entirety. She claimed to have purchased Boja Gowder's half-share in the property under Exhibit B-8 and to have taken possession of her share on the south and to be exercising acts of cultivation and she contended that the appellant is only a co-owner who could sue only for partition and not for injunction.

3. The purchase of the suit property under Exhibit B-5 by Mutha Gowder (P.W. 1) and Boja Gowder and the execution of Exhibit A-1 by P.W. 1 and Boja Gawder's eldest son (D.W. 1) were admited before the learned Subordinate Judge who tried the suit. The respondent (D.W. 4) objected to the admission of Exhibit A-1 in evidence for want of stamp and registration. But the learned Subordinate Judge, however, admitted it in evidence and considered only the question of its admissibility for want of registration. He found that P.W. 1 and D.W. 1 had not executed any arbitration muchalika in favour of their friends who acted as panchayatdars and that Exhibit A-1 was neither an award nor a partition-deed, but only a memorandum or list of a previously accomplished partition which had been acted upon and was admissible in evidence and that the suit property fell to the share of P.W. 1 in that partition and the appellant became the owner of the suit property by virtue of the gift under Exhibit A-4. He also found that the appellant was in possession and decreed the suit as prayed for with costs'

4. But, on appeal, the learned Additional District Judge found that in the prior suit, O.S. No. 59 of 1961 filed by D.W. 1 against P.W. 1 and another for including his name as a sharer to a moiety of the share taken in the name of P.W. 1 in 'N.M.T. Transport,' on the basis of an agreement, dated 1st December, 1957, P.W. 1 denied any agreement dated, 1st December, 1957, and that it was, therefore, not open to P.W. 1 to base any claim on Exhibit A-1 subsequently. He further found that the partition of the partnership assets on dissolution of the partnership of P.W. 1. and D.W. 1's father was made only under Exhibit A-1 and that Exhibit A-1 is a partition deed requiring registration and that' it could not be admitted in evidence for want of registration. He found that the appellant had not proved her exclusive title to the suit property and her exclusive possession thereof and that, on the other hand, the respondent had proved her title to a half share and her possession of the property as a co-owner. On these findings he allowed the appeal with costs throughout.

5. The suit property called "Aravankadu Building" forms item 4 in Exhibit A-1 which is to the effect that P.W. 1 should take it and pay Rs. 5,000 to D.W. 1. Pallivasal Veedu, forming item 3 in Exhibit A-1 should go according to it, to D.W. 1, who should pay Rs. 2,000 to P.W. 1 for taking it. D.W. 1 has admitted that he bad subsequently sold away this property to a third party under Exhibit A-2, dated 28th May, 1960. Exhibit A-1 is to the effect that some other properties would have to be divided in moieties subsequently. Therefore, if there had been a partition between P.W. 1 and D.W. 1, who is stated to have represented his father in the partition, of the assets of the dissolved firm 'Mutha Gowder & Company' and Exhibit A-1 is admissible in evidence, it would be clear that P.W. 1 would have had exclusive title to the suit property before he gifted it to the appellant under Exhibit A-4, dated 15th December, 1965. The respondent had put the appellant to proof of not only the existence of the partnership firm but also of its dissolution and allotment of the suit property to P.W. 1. P.W. 1 has stated in his evidence that the suit property belonged to himself and Boja Gowder by right of purchase and they were carrying on partnership business. He has also stated that the partnership had come to an end in about 1956 and that after the death of Boja Gowder there was a partition of the assets of the partnership and that the suit property fell to his share in that partition effected in the presence of panchayatdars between himself and P.W. 1. He has stated that Exhibit A-1 is a list signed by himself and D.W. 1 as well as by the panchayatdars. He has admitted that the partition was effected only on 1st December, 1957, as decided by the panchayatdars and that there is no partition-deed apart from Exhibit A-1. D.W. 1 had stated in his examination-in-chief that no partition had yet been effected although Exhibit A-1 had been executed and that there was no partition prior to Exhibit A-1. He had also stated that he had a half share in the suit property until he sold it to the respondent under Exhibit B-8. But in his cross-examination he has admitted that he and P.W. 1 put their signatures under each item in Exhibit A-1 after the completion of the discussion in respect of each item, that he took over the tea-shop mentioned as item 1 in Exhibit A-1 and carried on the business solely from 1958 as per Exhibit A-1, that he is exclusive possession of the commission shop forming item 8 in Exhibit A-1 and that he had not obtained the signature of P.W. 1 in the sale-deed executed by him in favour of a third party in respect of Pallivasal Veedu forming item 3 in Exhibit A-1. He has added that Exhibit A-1 has not been acted upon only in respect of the suit property. The evidence of P.W. 1 and D.W. 1 establishes that the assets of the partnership had been divided between them and the partition had been accepted and agreed upon by both of them P.W. 1 had executed the settlement deed, Exhibit A-4, in respect of the entire suit property in favour of the appellant. The appellant would have title to the suit property by virtue of the gift under Exhibit A-4 if P.W. 1 had become the exclusive owner of the property which had been purchased by himself and the other partner Boja Gowder by reason of the said partition.

6. The learned Subordinate Judge held on a consideration of the evidence, that the appellant was in possession of the suit property on the date of the suit. The respondent has admitted in her evidence that possession of the house had not been handed over to her in pursuance of the sale under Exhibit B-8 and that the appellant's son, P.W. 5, is living in a portion of the building and had rented out the other portion. The learned Subordinate Judge rightly disbelieved the evidence of D.W. 4 that she is cultivating a portion of the cultivable portion of the suit property having regard to the fact that the respondent claimed to be in passession of the southern half of the land while the sale-deed, Exhibit B-8, is in respect of an undivided half-share in the suit property. A part from the oral evidence on the side of the appellant there are the kist receipts (Exhibit A-5 series) and house-tax receipts (Exhibit A-6 series). There is no dispute that the suit land is comprised in patta No. 460. Exhibit A-5 series shows that both Mutha Gowder and Sevanan (P.W. 1 and D.W. 1) paid the kist for the suit property for faslis 1373 to 1376 and that the appellant had paid kist for the property for fasli 1378. The house-tax receipts (Exhibit A 6 Series) show payment of property tax for the house by the appellant for some half-years from 1966 to 1968. The respondent, who was admittedly aware at the time of her purchaae under Exhibit B-8 that the suit building stood in the name of the appellant in the municipal records, did not ask D.W. 1 as to how it happened to be so and had taken the sale-deed, Exhibit B-8, with full knowledge of the fact that P.W. 1 had already executed the gift-deed Exhibit A-4, in favour of the appellant, and has not produced any kist receipt or house-tax receipt to show her possession of the suit property. The learned Sub-ordinate Judge was, therefore, perfectly justified in rejecting the oral evidence on the side of the respondent and accepting the evidence on the side of the appellant and holding that the appellant was in possession of the suit property on the date of the suit, without attaching much significance to the complaint, the original of Exhibit B-7, given by P.W. 5 to the Sub-Inspector of Police, Aravankadu, that she saw the respondent trying to exercise acts of cultivation on a portion of the suit-land which was lying fallow after both the parties has given an undertaking before the Inspector of Police, Goonoor, that nobody should enter on the land until he came and inspected the same. Exhibit B-7 would not amount to any admission of the respondent's possession of the suit property. Under the circumstances, the finding of the learned Additional District Judge that the appellant had not proved her exclusive possession of the suit property is not at all acceptable. I agree 'with the learned Subordinate Judge and find that the appellant was in possession of the suit property on the date of the suit.

7. The suit property had been purchased under Exhibit B-5, dated 8th December, 1944, by P.W. 1 and D.W. 1's father, Boja Gowder, who indisputably, were partners of Mutha Gowder & Company at that time. The evidence of P.W. 1 that the partnership properties were divided subsequent to the dissolution of the partnership after the death of Boja Gowder on 1st December, 1957, has not been challenged in cross-examination. The respondent has not disputed the allegation in the plaint that Boja Gowder died early in Ia.57. The partition was, therefore, between P.W. 1, one of the partners of the dissolved firm, and D.W. 1, the eldest son of the other deceased partner. This is also made clear by Exhibit A-1 which reads:

The evidence of P.W. 1 is only to the effect that at the instance of the Panchayatdars he and D.W. 1 got the assets of the dissolved firm divided and not that the panchayatdars themselves effected the division and he and D W 1 accepted the same. As already stated, P.W. 1 has admitted in his evidence that the partition was effected only on 1st December, 1957 and that there is no other document evidencing the partition except Exhibit A-1. No doubt the evidence of D.W. 1 shows that he and P.W. 1 put their signatures under each item after a settlement was reached in regard thereto by discussion. But it is not possible to infer that the partition of the assets of the dissolved firm was prior in point of the time and dissociated in any way from Exhibit A-1. As regards the suit property and Pallivasal Veedu it is stated in Exhibit A-1 that D.W. 1 should take Pallivasal Veedu and pay Rs. 2,000 to P.W. 1 and that P.W. 1 should take the suit properly and pay Rs. 5,000 to D.W. 1. Therefore, I agree with the learned Additional District Judge that the partition has been effected only under Exhibit A 1 and that it required registration as a partition-deed if it did not relate to the division of the assets of the dissolved firm between a partner and the representative of the deceased partner.

8. The learned Counsel for the appellant submitted that Exhibit A-1 is only a list of a previously accomplished partition and that it does not require registration. In this connection he relied upon the decision of the Privy Council in Bageshwai Charan v. Jagarnath Kurai 62 M.L.J. 296 : 59 I.A. 130 : 136 I.C. 798 : A.I.R. 1932 P.C. 55 where it is observed:

In the case of Jiwan Ali Beg v. Bana Mai (1887) I.L.R. 9 All. 108 the head-note accurately sets forth one of the points in the case:

'An instrument to come within Section I7(b), Registration Act (III of I877), must in itself purport or operate to create, declare, assign, limit or extinguish some right, title or interest of the value of Rs. 100 or upwards in immovable property.' Then in the case of Ranganayaki Ammal v. Virupakshee Rao Naidu (1923) 45 M.L.J. 100 : 17 L.W. 588 : 72 I.C. 456 : A.I.R. 1923 Mad. 621 the learned Judge in the High Court expressly cited the words of West, J., in Krishnagi's case (1880) I.L.R. 5 Bom. 232 and in the case of Baldeo Singh v. Udal Singh A.I.R. 1921 All. 248 precisely the same thing is done.

Their Lordships have no doubt that this track of decision is right. Though the word 'declare' might be given a wider meaning, they are satisfied that the view originally taken by West, J. is right. The distinction is between a mere recital of a fact and something which in itself creates a title. The distinction has been acted on in cases connected with mortgages by deposit of documents of title.... In the present case the statement in the petition of the respondent did not create any right in the Thakur. It merely acknowledged as a fact that such right was his. There was therefore no necessity for registration.

The question in that case was whether a particular statement in the petition signed by the maker amounted to an acknowledgment of liability within the meaning of Section 19 of the Limitation Act.

This decision will not help the appellant, having regard to the fact that the lower appellate Court found, and I agree with it, that the partition was effected only under Exhibit A-1 and that it is not a list of properties which had been previously divided.

9. The other decision relied on by the learned Counsel for the appellant is of the Supreme Court in Nachiappa v. Subramaniam . There it is observed;

In Sakharam Krishnaji v. Madan Krishnaji (1880) I.L.R. 5 Bom. 232 West J., had observed that the word 'declare' in Section I7(1)(b) is placed along with 'create', 'assign' 'limit' or 'extinguish' a right, title or interest, and these wordsimplya definite change of legal relation to the property by an expression of will embodied in the document referred to, and had added that he thought that it is equally the case with the word 'declare'. On the other hand, certain other decisions had construed the word 'declare' liberally in a very wide sense and it was on those decisions that the objection against admissibility of the petition was founded. In repelling the objection Lord Dunedin observed that 'though the word "declare" might be given a wider meaning they are satisfied that the view originally taken by West, J., is right. The distinction is between a mere recital of fact and something which in itself creates a title.

This decision also will not help the appellant, as there is no partition dissociated from Exhibit A-1 in point of time.

10.The third decision relied on by the learned Counsel for the appellant is of the Supreme Court in Kashinathsa v. Naraingasa where it is observed:

The records made by the Panchas were documents which merely acknowledged partitions already made and were not by law required to be registered. On a perusal of Exhibit 456-A which is a translation of the Tippan book in which are recorded the decisions which are signed by the parties, it is evident that the Panchas were merely recording what had been actually divided and they were not seeking to set out their decisions relating to division of property to be made.

This decision also would not apply to the facts of the present case where the panchayatdars appear to have merely advised P.W. 1 and D.W. 1 to have the assets of the dissolved firm divided and had not themselves actually divided the same, and there was no prior partition.

11. The learned Counsel for the appellant submitted that Exhibit A-1 is only a list showing the division of the assets of the dissolved firm between a partner and the representative of the deceased partner, having regard to the provisions of Section 22 of the Indian Partnership Act, which lays down that where land or any beneficial interest therein has become partnership property, it shall, unless the contrary intention appears, be treated, as between the partners including the representatives of a deceased partner and also as between the heirs of a deceased partner and his executors or administrator!, as personal or movable and not real or heritable estate. Having regard to the fact that the suit property had been purchased by P.W. 1, and D.W.1's father Boja Gowder under Exhibit B-5 on 8th December, 1944, when they were partners of 'Mutha Gowder & Company' and it is seen from not only Exhibit A-1 but also from the evidence of P.W. 1 and D.W. 1 that even this item of property had been divided between them after the death of Boja Gowder which had taken place subsequent to the dissolution of the firm, the suit property must have been a partnership asset. Therefore, it is not possible to agree with the learned Counsel for the respondent that it was not an asset of the dissolved firm.

12. The learned Counsel for the respondent relied upon a decision of a Bench of this Court in Ramappa v. Thirumalappa I.L.R. (1939) Mad. 971 : (1939) 2 M.L.J. 649 : 60 L.W. 331 : A.I.R. 1939 Mad. 884 where it is observed:

When allotting on a dissolution what remains after making provision for the firm's debts and the remaining assets include immovable properties, it does not follow that the partners will take the immovable properties in equal shares, even if they had equal rights in the partnership. What each partner receive's will depend on the circumstances and the nature of the assets which remain for division. A partner, for instance, may have overdrawn his account and disentitled himself to equal rights, but it might have been otherwise. Exhibit A was drawn up and signed in order that the post-dissolution rights should be declared and placed beyond dispute. In our opinion, the declaration clearly falls within Section 17, Registration Act, which means that the document cannot now be admitted in evidence (by reason of non-registration).

This decision is referred to in the decision of the Supreme Court in Narayanappa v. Bhaskara Krishnappa , which will be referred to presently and though not specifically dissented from, must in my opinion, be deemed to have been dissented from. In that decision a different view has been expressed by the Supreme Court.

13. The next decision relied on by the learned Counsel for the respondent is of the Supreme Court in Ratan Lal Sharma v. Purshottam Harit. where the partners of a firm fell out and agreed to refer their disputes to two arbitrators. The arbitrators gave an award which expressly made an exclusive allotment of the partnership assets, including the factory and liabilities between the partners in consideration of a sum of Rs. 17,000 and another sum to the other on his renouncement of the right to share in the firm. So in express words the award purported to create rights in immovable property worth above Rs. 100 in favour Of the other partner and it has been held that it therefore required registration and was inadmissible in evidence for want of registration. This decision will not apply to the facts of the present case where there is no award of the arbitrators and all the assets of the dissolved firm had not been transferred to one of the partners on payment of any money to the share of the other partner or his representative. A Full Bench of the Andhra Pradesh High Court expressed the following view in A. Narayanappa v. B. Krishtappa In determining whether transfers of shares of partnerships which hold immovable property among other assets, require registration the Court must be influenced by the policy of the Partnership Act. The legal conception of the share of a partner in a partnership cannot be assessed in our opinion by reference to the possibility of his getting a share in the immovable property possessed by the partnership, for his getting a share in the immovable property is only an uncertain factor.... The interest in a partnership asset cannot be regarded as a right or interest in immovable property within the meaning Section 17(1)(5) of the Registration Act.

After the expression of this view by the Full Bench, the learned Judge who disposed of the Second Appeal observed:

The Full Bench has held that the interest of a partner in partnership assets cannot be regarded as a right or interest in immovble property within the meaning of Section I7(1)(b) of the Registration Act. It follows that in so far as there is a relinquishment of their interest in the suit firm by the plaintiffs and, defendants 10 to 12 who executed Exhibit B-18, the document does not rquire registration.

In Narayanappa v. Bhaskara Krishnappa which arose out of that decision the Supreme Court has observed:

While it is true that the position so far as third persons are concerned would be different it may be pointed out that in Forbes v. Steven (1870) 10 Eq. 178 James V.C. has, as quoted by the learned Judge, said: It has long been the settled law of this Court that real estate bought or acquired by a partnership for partnership purposes (in the absence of some controlling agreement or direction to the contrary) is, as between the partners and as between the heirs of a deceased partner and his executors or administrator his personal property, and devolve and is distributable and applicable as personal estate and as legal assets.

In the subsequent decision in Commissioner of Income-tax, West Bengal, Calcutta v. Juggilal Kamalapet (1967) 1 I.T.J. 142 : 63 I.T.R. 292 : (1967) 1 S.C.J. 177 : (1967) 1 S.C.R. 748 : A.I.R. 1967 S.C. 401 the Supreme Court has observed:

The deed of relinquishment in this ease was in respect of the individual interest of the three Singhania brothers in the assets of the partnership, a firm in favour of the Kamala Town Trust and consequently, did not require registration, even though the assets of the partnership firm included immovable property, and was valid without registration. As a result of this deed, all the assets of the partnership vested in the new partners of the firm.

14. The partition of the partnership assets of the dissolved firm in the present case was between P.W. 1, a partner, and D.W. 1, the representative of a deceased partner, and not between a partner and any third party; Section 22 of the Partnership Act would, therefore, apply. The aforesaid two decisions of the Supreme Court, as well as the opinion of the Full Bench of Andhra Pradesh High Court, referred to above, lay down that in such a case the record evidencing the division of the assets of the firm cannot be treated as relating to immovable properties even if they concerned such properties but must be regarded as personal estate and as legal assets. Therefore, I agree with the learned Counsel for the appellant that Exhibit A-1 is a record showing the 'division of the assets of a dissolved firm and that Section 22 of the Partnership Act applies and that it does not require registration.

15. The appellant had not raised this point in her original memorandum of grounds of second appeal and had therefore filed C.M.P. No. 493 of 1976. The point raised in this additional ground is one of law and can be raised at any time. The petition is, therefore, allowed.

16. The learned Counsel for the respondent submitted that Exhibit A-1 can be construed even as a deed of partition and has to be stamped as such, having regard to Section 6 of the Indian Stamp Act and that since objection had been taken to the admissibility of that document in evidence, it could not be admitted for want of stamp. Section 6 of the Indian Stamp Act reads thus;

Subject to the provisions of the last preceding section, an instrument so framed as to come within two or more of the descriptions in Schedule I, shall, where the duties chargeable thereunder are different, be chargeable only with the highest of such duties;

Provided that nothing in this Act contained shall render chargeable with duty exceeding four rupees fifty-nine paise, a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid.

The learned Subordinate Judge has, no doubt stated in paragraph 7 of his judgment that exception was taken to the admission of Exhibit A-1 in evidence on the ground that it was a partition-deed or an award and was inadmissible in evidence for want of stamp and registration. The record shows that Exhibit A-1 had, however, been admitted in evidence, and the learned Subordinate Judge, who had admitted it in the evidence subject to the question of its admissibility being considered later, has considered only the question of its inadmissibility in evidence for want of registration. The learned Additional District Judge has erred in thinking that the trial Court had admitted Exhibit A-1 subject to the determination of the question of its admissibility for want of stamp. The Privy Counil has observed in Gopal Das v. Sri Thakurji (1943) 2 M.L.J. 51 : 56 L.W. 593 : A.I.R. 1943 P.C. 83.

The endorsement 'admitted against the plaintiff is in the form generally employed by the trial Judge under Order 13, Rule 4, for documents tendered by the defendant's just as the plaintiff's documents are marked 'admitted against the defendant'. The endorsement means that the document is admitted in evidence as proved. Where the objection to be taken is not that the document is in itself inadmissible but that the mode of proof put forward is irregular or insufficient it is essential that the objection should be taken at the trial before the document is marked as an exhibit and admitted to the record. A party cannot lie by until the case comes before a Court of appeal and then complain for the first time of the mode of proof. A strictly formal proof might or might not have been forthcoming had it been insisted on at the trial.

The respondent had not insisted on Exhibit A-1 being admitted in evidence subject to the question of its admissibility for want of stamp and registration being considered subsequently by the trial Court and she cannot, therefore complain about its admissibility for want of stamp even if it requires any stamp. The Supreme Court has observed in Kashinathsa v. Narasingasa referred to above, that "the documents were admitted in evidence by the trial Court and no question of admissibillity of those documents can be raised at a later stage of the suit, or in appeal'. Section 36 of the Stamp Act lays down:

Where an instrument has been admitted in evidence, such admission shall not, except as provided in Section 61, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.

Section 61 provides for revision by the appellate Court of certain decisions of Court regarding the sufficiency of stamps, of its own motion or on the application of the Collector. Therefore, I agree with the learned Counsel for the appellant that it is not open to the respondent to contend at this stage that Exhibit A-1 is inadmissible in evidence for want of stamp, even if it required any stamp, as it has already been admitted in evidence by the trial Court.

I7. There is evidence to show that O.S. No. 59 of 1961 had been filed by D.W. 1 aganist P.W. 1 and another for the inclusion of his name as a sharer in "N.M.T. Transports' on the basis of an agreement dated, 1st December, 1957. Exhibit A-1 had not been produced in that suit and P.W. 1 had denied the existence of any agreement, dated 1st December, 1957 between them. Now P.W. 1 has admitted that there is no other agreement, dated 1st December, 1957 besides Exhibit A-1. The learned Additional District Judge had, therefore, inferred that the agreement, dated 1st December, 195 7 involved in O.S. No. 59 of I96I must be only Exhibit A-1, and he has observed in paragraph 6 of his judgment that it is no more open to P.W. 1 to rest any claim on the foot of the transaction evidenced by Exhibit A-1. The respondent had not raised any plea of res judicata or estoppel as regards Exhibit A-1 in her written statement. Therefore, the learned Counsel for the appellant relied upon the decision of the Privy Council in Pit Sidik Mahomad Shah v. Musammat Saran 121 I.C. 204 : (1930) 58 M.L.J. (P.C.) A.I.R. 1930 P.C. 57 (1) and that of the Supreme Court in Bhagat Singh v. Jagwant Singh (1962) 1 S.C.J. 162 : A.I.R. 1966 S.C. 1861 in which the said decision of the Privy Council is referred to, and submitted that the learned Additional District Judge ought not to have gone into that question. The Privy Council has observed in that decision that "no amount of evidence could be looked into upon a plea which was never put forward" and following it, the Supreme Court has observed that "where a claim has never been made in the defence, no amount of evidence can be looked into upon a plea which was never put forward". Therefore, I agree with the learned Counsel for the appellant and hold that it was not open to the learned Additional District Judge to go into the question and hold that it is no more open to P.W. 1 to rest any claim on Exhibit A-1.

18. For the reasons mentioned above, I agree with the learned Subordinate Judge that Exhibit A-1 does not require registration, though for another reason, and that the appellant has title to the suit property and was in possession. There of on the date of the suit and is entitled to the declaration and injunction The second appeal, is therefore, allowed with costs throughout. No leave.