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  • court.4. Section 227 of the Indian Succession Act, 1925,
  • Indian Succession Act, 1925 (1979 Edition)
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Citation Codes
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citation codes
Case Number
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  • court.4. Section 227 of the Indian Succession Act, 1925,
  • Indian Succession Act, 1925 (1979 Edition)
Smart Summary

Factual and Procedural Background

The plaintiff (appellant) and the first defendant are siblings, both children of Roza Nazareth who died on 24th July 1954, along with other children. The first defendant claimed exclusive rights over the assets left by Roza Nazareth by setting up a Will and obtained probate on 6th March 1964. Subsequently, the first defendant sold the second item of the plaint schedule property to the second defendant on 6th December 1971. The plaintiff challenged the probate as having been obtained without notice, leading to its revocation on 3rd March 1975. The plaintiff then acquired shares of other siblings except the first defendant and filed suit claiming five out of six shares in the properties. The first defendant raised several defenses including adverse possession, which the trial court rejected. However, the trial court upheld the second defendant's title as a bona fide purchaser relying on the probate and held that the revocation of the Will related only to the date of the revocation application and did not invalidate prior transactions.

Legal Issues Presented

  1. Whether revocation of probate relates back to the date of the Will or only to the date of the revocation application.
  2. Whether the second defendant, as a bona fide purchaser from the first defendant who held probate, can have his title disturbed following revocation of the probate.
  3. The applicability of the doctrine of owelty and equitable adjustments between the plaintiff and the first defendant concerning the shares in the properties.
  4. The validity of the plea of adverse possession raised by the first defendant.
  5. The validity of the agreement under which the plaintiff obtained release of rights from other siblings.

Arguments of the Parties

Appellant's Arguments

  • The appellant contended that the revocation of probate should relate back to the date of the Will's creation, effectively negating the Will's existence from the outset.
  • Consequently, the first defendant would have no title to transfer the property to the second defendant, rendering the sale deed void.
  • The appellant sought declaration of his rightful share based on this premise.

The opinion does not contain a detailed account of the first and second defendants' specific arguments beyond general contentions such as adverse possession.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
P.H Alphonso v. Dr. C.F De Costa, AIR 1964 Mysore 187 Revocation of probate cannot be retrospective; revocation takes effect from the date of application for revocation. The court relied on this precedent to hold that the revocation of probate does not invalidate prior transactions made under the probate, thus protecting the bona fide purchaser's title.
A.B Neogi v. B.B Neogi, AIR 1938 Rangoon 43 Subsequent revocation of probate does not affect prior acts such as mortgage or alienation made under the probate. The court used this authority to affirm that prior alienations made by the executor under probate remain valid despite later revocation.

Court's Reasoning and Analysis

The court analyzed statutory provisions of the Indian Succession Act, 1925, including Sections 227, 273, 297, and 307(1), emphasizing the conclusive effect of probate and protection afforded to third parties acting bona fide. The court rejected the appellant's contention that revocation of probate relates back to the date of the Will, holding instead that revocation takes effect only from the date of the application for revocation, consistent with the precedent in P.H Alphonso v. Dr. C.F De Costa.

The court noted that while the first defendant's probate was obtained without notice to other heirs and was subsequently revoked, the second defendant, a bona fide purchaser relying on the probate, cannot be prejudiced by the first defendant's procedural lapses or fraud. The court underscored that law does not require third parties to investigate the validity of probate before dealing with the executor.

The court further held that the first defendant was responsible for the loss of property share to the plaintiff and equity demands adjustment via the doctrine of owelty. The first defendant's share in the first item of property would be limited and adjusted to compensate the plaintiff for the loss occasioned by the sale of the second item. Any remaining loss to the plaintiff could be adjusted against amounts payable by the second defendant under the sale deed.

Regarding the plea of adverse possession, the court found it untenable as the second defendant was a co-owner and there was no clear evidence of ouster. The trial court's rejection of this plea was affirmed. The court also upheld the validity of the agreement under which the plaintiff obtained release of rights from other siblings.

Holding and Implications

The appeal is partly allowed. The court directed the trial court to implement equitable adjustments through the doctrine of owelty in the final decree, ensuring the plaintiff receives appropriate compensation for loss of property share without disturbing the title of the bona fide purchaser, the second defendant.

This decision protects bona fide purchasers acting on the strength of probate and clarifies that revocation of probate is prospective, not retrospective. It balances equitable rights among heirs without invalidating prior transactions under probate. No new precedent beyond application of existing principles was established.

    Valerine Basil Pais (Dead) By L.Rs v. Gilbert William James Pais And Another

    1. The appellant before us is the plaintiff. The first defendant is the brother of the plaintiff and second defendant is the purchaser of the second item of the plaint schedule property. There is no dispute that the plaintiff and defendants are the children of Roza Nazareth, who died on 24th July, 1954. There were other children also. The first defendant set up a Will under which he claimed exclusive right in respect of the assets left by Roza Nazareth. On 6th March, 1964, the first defendant obtained a probate as per Ex. D.11 Subsequently, he sold the second item on 6th December, 1971, to the second defendant. According to the plaintiff, the probate obtained by the first defendant was without notice and was void. He approached the court for revocation of the probate and the revocation was ordered on 3rd March, 1975 as per Ex. P. 7. Subsequently he obtained the shares of other children of Roza Nazareth, except that of the first defendant, and proceeded to file the present suit claiming five out of six shares in the two items of properties. The first defendant raised several contentions including the plea of adverse possession. However, the trial court rejected all these contentions. But while decreeing the suit, the trial court held that the title of the second defendant cannot be disturbed because he is a bona fide purchaser from the first defendant and the second defendant was entitled to act on the basis of the probate obtained by the first defendant. The trial court held that the revocation of the Will would relate back to the date of filing of the application for revocation and all anterior acts cannot be set at naught by the court.

    2. It was contended before us by Mr. B.L Acharya, the learned counsel for the appellants, that when the probate is revoked, it would relate back to the date of setting up of the Will by the propounder of the Will and, therefore, it has to be held that there was no Will at all from the very beginning; if so, the first defendant had no title to pass on the properly to the second defendant; the sale deed shall have to be declared as void and the appropriate share of the plaintiff should be decreed.

    3. It is not possible for us to accept the contention of the learned counsel for the appellants. The grant of probate establishes the genuineness and the enforcibility of the Will and the person in whose favour the probate is granted is entitled to convey appropriate title arising out of the Will which was probated by the court. May be, under certain circumstances, the probate could be revoked. It is also possible as happened in the present case, the propounder of the Will did not take appropriate steps to notify the other heirs before obtaining the probate. But the third party who acts bona fide and deals with the person who obtained the probate and purchases the property cannot be made answerable to the fraud or the mistakes committed by the propounder of the Will. Law does not expect the third party like the second defendant to examine whether the probate was properly obtained and whether all the procedural requirements were satisfied before the probate was granted by the court.

    4. Section 227 of the Indian Succession Act, 1925, says that probate of a Will when granted establishes the Will from the death of the testator and renders valid all intermediate acts of the executor as such. Section 297 declares that when a grant of probate is revoked, all payments bona fide made to any executor or administrator under such grant before the revocation shall, notwithstanding such revocation, be a legal discharge to the person making the same. ……, etc. Section 273 provides for the conclusiveness of probate and states that probate shall have effect over all the property and estate of the deceased throughout the State in which the same is granted and shall be conclusive as to the representative title against all debtors of the deceased, etc. The principle is brought out by the learned Author B.B Mitra in “The Indian Succession Act, 1925” (1979 Edition) at page 411, while referring to Section 273, thus:

    “This section affords protection to debtors making bona fide payments to an executor or administrator before revocation of the grant. Even though letters of administration have been obtained by fraud, still so long as the grant remains unrevoked, the grantee, though a rogue and an imposter, is to all intents and purposes the administrator. He alone represents the estate of the deceased…”

    5. Section 307(1) also states that an executor or administrator has power to dispose of the property of the deceased vested in him under Section 211.

    6. In P.H Alphonso v. Dr. C.F De Costa, AIR 1964 Mysore 187, a Bench of this court held that revocation of the grant of the probate cannot be made retrospectively and the order of revocation must take effect from the date of application made for the purpose. At page 190, it was observed thus:

    “….. The executor is competent to enter into contracts on behalf of the estate and possesses power to dispose of the property of the deceased vested in him in such manner as he thinks fit. We have also referred to the liability of the executor to be sued by a person interested in the property and intending to avoid the alienations made by him. The contracts entered into and the alienations made by an administrator are valid until they are set aside by a competent court at the instance of persons interested in the property. A retrospective revocation is not therefore contemplated by law. Any order of revocation passed under Section 263 of the Act must take effect from the date of the application made for the purpose.”

    7. The ratio of the decision of the Rangoon High Court in A.B Neogi v. B.B Neogi, AIR 1938 Rangoon 43 also is to the same effect. It was held that subsequent revocation of the probate by the court would not affect the prior mortgage of the property created by the administrator on the strength of the probate granted to him. In the above circumstances, the trial court was right in rejecting the plaintiff's claim on the second item which otherwise would have disturbed the title of the second defendant.

    8. However, the fact remains that the first defendant was responsible for the loss of the properly in which the plaintiff otherwise would have got ⅚th share. He is certainly entitled to seek equity from the court. The doctrine governing the owelty could be applied to the fact situation. In the first item the first defendant would be left with ⅙th share which could, as far as possible, be adjusted towards the loss of the property occasioned to the plaintiff by virtue of the sale of the second item. If still, the loss results to the plaintiff and cannot be compensated, the balance could be adjusted out of the amount remaining payable by the second defendant under the sale deed of the year 1971 under which the second defendant purchased the second item (Ex. P. 46). The trial court shall make an appropriate order in this regard in the final decree proceedings.

    9. The first defendant has raised the plea of limitation. According to the first defendant, he has been in exclusive possession of the properties and the plaintiff had lost his right by lapse of time.

    10. It is not possible to accept this contention because admittedly the second defendant was a co-owner. Unless the evidence is clinching and unambiguous to establish the case of ouster on the part of first defendant ousting the plaintiff from his rights, it cannot be held that the plaintiff would lose his right in the properties. The trial court is right in rejecting this contention of the first defendant. There was also a contention against the validity of the agreement under which the plaintiff obtained release of the rights of the other children of Roza Nazareth. We are in agreement with the finding of the trial court on this aspect also. No convincing argument is forthcoming as to why the said release in favour of the plaintiff should not be given effect to. Consequently the cross-objection filed by the first defendant is rejected.

    11. In the result, the appeal is partly allowed. The trial court is directed to give effect to the observations made regarding the allotment of properties and the owelty to the plaintiff in the final decree proceedings without affecting the title of the second defendant.

    12. No costs.

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    Comments

    Valerine Basil Pais (Dead) By L.Rs v. Gilbert William James Pais And Another
    (Mar 16, 1993)