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  • Section 7-B of Act 1 of 1964
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  • Section 7-B of Act 1 of 1964
Smart Summary

Structured Summary of the Opinion — Second Appeal (Partition of Tavazhi Tarwad)

Factual and Procedural Background

The suit concerns partition of the B and C schedule properties belonging to members of an undivided tavazhi tarwad. Defendants 4 to 14 are appellants in this second appeal. The relevant chain of transactions began with Ext. B-2, a kanakuzhikanom deed executed by a prior karanavan in favour of Kamaran (a junior member) and a stranger named Kannan. Kamaran died unmarried and his half right devolved on the tavazhi. Kannan's right was transferred under Ext. B-6 to Cheeyyayi, who then assigned her rights by Ext. B-7 to defendants 1 and 2. Defendants 1 and 2 later transferred rights to the 4th defendant (the first appellant). The appellants rely on Ext. B-10 (an assignment of Ext. B-2/Ext. B-7 interests) to claim reservation of rights.

The controversy before the court is primarily about the character of Ext. B-7 — whether it was acquired with the separate funds of defendants 1 and 2 or was an acquisition on behalf of the tarwad (in the name of the karanavan). At trial the court upheld the appellants' contention (that Ext. B-7 was purchased with separate funds), but the first appellate court reached a contrary conclusion. This judgment decides the second appeal. The court also considered the validity and protection of a lease (Ext. B-8 of 1961) claimed by the 4th defendant.

Legal Issues Presented

  1. Whether the acquisition under Ext. B-7 (assignment from Cheeyyayi to defendants 1 and 2) was made with the separate funds of defendants 1 and 2 or whether it was an acquisition in the name of the karanavan for and on behalf of the tarwad.
  2. Whether the assignment Ext. B-10 (by which the 4th defendant claims reservation of a half-right) confers any separate allotment or special right on the 4th defendant-appellant.
  3. Whether the 4th defendant's claim under Ext. B-8 (a lease of 1961) is valid and, if invalid, whether protection under Section 7-B of Act 1 of 1964 is available to the 4th defendant.

Arguments of the Parties

Appellants' Arguments

  • The appellants (defendants 4 to 14) rely on Ext. B-10 and contend that the rights assigned under Ext. B-7 were acquired with the separate funds of defendants 1 and 2 (i.e., not as tarwad property), thereby supporting reservation of a separate allotment for the 4th defendant.
  • They challenge any claim that Ext. B-7 was acquired on behalf of the tarwad or in the name of the karanavan using tarwad nucleus.

Respondents' Arguments

  • The other members of the tavazhi (respondents) contended that the assignment was in the name of the then karanavan and for and on behalf of the tarwad, i.e., that Ext. B-7 enured to the tarwad.
  • The respondents' counsel argued for a presumption that an acquisition in the name of the karanavan is tarwad property, relying on observations in Achuthan v. Chinnamu (AIR 1966 SC 411) and related authorities.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Achuthan v. Chinnamu, AIR 1966 SC 411 (also cited as (1966) 1 SCWR 74) States a strong presumption that property acquired in the name of the karanavan is tarwad (joint family) property, but the opinion (as explained) assumes availability of a tarwad nucleus and was addressing acquisitions by members of a joint family/tarwad where nucleus exists. The court relied on the passage but emphasized its true scope: the presumption operates only where it is established that a sufficient tarwad nucleus existed. The court therefore required proof of nucleus before applying the presumption and found such proof lacking here.
Chathu Nambiar v. Sekharan Nambiar, AIR 1925 Mad 430 (2) Referenced as an authority on the presumption regarding acquisitions by karanavan/joint family members (as cited in Achuthan). Used as supporting precedent in the discussion of the presumption's scope; the court treated it as part of the body of authority showing that presumption depends on existence of nucleus.
AIR 1926 Mad 643 Referenced in the same group of Madras precedents cited with the same theme about presumption in favour of karanavan acquisitions. Referenced by the court to show the historical basis of the presumption; court reiterated that these authorities presuppose existence of a nucleus.
AIR 1947 Mad 137 Another Madras decision cited alongside the above cases on the presumption concerning karanavan acquisitions. Served as background authority; the court treated it as part of the line of cases showing that presumption arises where a nucleus exists.
Kunhukuttan Nair v. Devaki Amma, 1968 Ker LT 568 Quoted the Achuthan passage and stated that when a member (karanavan or junior) is proved to have been in management of tarwad properties yielding appreciable income, a presumption arises that acquisitions enure to the tarwad. Cited to support the proposition that proof of management/possession of appreciable income (nucleus) gives rise to presumption; court relied on this to clarify that nucleus must be shown before presumption applies.
Narayani Amma v. Narayani Amma, 1967 Ker LT 637; AIR 1967 Ker 90 Held in that case there was sufficient nucleus for the karanavan to acquire the properties; used to show that existence of nucleus must be established before drawing the presumption. The court cited it to illustrate that courts draw the presumption only where nucleus is actually proved; used as support for requiring proof of nucleus here.
R. Gopala Menon v. Rugmani, 1969 Ker LR 1 Explained scope of the Supreme Court decision and stated that the presumption applies provided there was sufficient nucleus in the hands of the karanavan or manager. Adopted by the court as further authority that the presumption is conditional on proof of nucleus; reinforced the court's limitation of the presumption.
A.S. Nos. 414 and 419 of 1966 (1971 Ker LT (SN) 41) — Division Bench Considered effect of Achuthan and held that presumption is available only if it is proved or admitted that the family possessed sufficient nucleus aiding the acquisition. Relied on by the court to conclude that a presumption will apply only when it is established that the karanavan had sufficient tarwad nucleus; applied this test to the facts and found nucleus not shown.

Court's Reasoning and Analysis

The court's analysis proceeded in distinct steps which are summarized below in the order they appear in the opinion:

  1. Legal principle on presumption: The court examined the line of authorities (including Achuthan v. Chinnamu and earlier Madras decisions) concerning the presumption that an acquisition in the name of a karanavan is tarwad property. The court clarified that those authorities assume or require proof that the karanavan (or acquiring member) possessed a sufficient tarwad nucleus with the aid of which the acquisition could be made. The presumption is not automatic in the absence of such a nucleus; in the case of a junior member even the presumption may not be available.
  2. Application to facts — sufficiency of nucleus: The court reviewed factual material about the tavazhi's impoverished condition, prior partitions and recognitions (Ext. B-1), debts, and the specific circumstances of the B schedule properties and the kanakuzhikanom. The family had limited income; evidence indicated that defendants 1 and 2 were masons who worked for a livelihood and that family funds were not readily available. The court concluded that nothing in Ext. B-7 showed that defendants 1 and 2 took the deed in their capacity as karanavan or on behalf of the tarwad, and that there was insufficient proof that they possessed a tarwad nucleus enabling them to acquire Ext. B-7.
  3. Conclusion on character of Ext. B-7: Given the lack of proof of nucleus, the court held that the presumption did not apply and therefore that Ext. B-7 must be treated as having been obtained with the separate funds of defendants 1 and 2.
  4. Equitable/descriptive qualification of that finding: The court then examined whether the 4th defendant (who derived title via subsequent transfers and Ext. B-10) could claim a reserved separate allotment on the basis of Ext. B-10. Although the court found Ext. B-7 to have been taken with defendants 1 and 2's own funds, it went on to consider the conduct of the karanavan (defendant 1) in relation to tarwad duties.
  5. Tarwad duty and deemed discharge: The court observed that the karanavan had a duty to protect tarwad interests and was in a position to discharge the kanakuzhikanom debt when tarwad funds came into his hands. Evidence showed the karanavan had been taking income from the property (from at least 1932) and had not paid anything to other tarwad members; the court found that the income that came into his hands over about 30 years exceeded the amount due for Ext. B-7. On that basis the court held that the karanavan's liability (to the tarwad) in respect of the kanakuzhikanom must be deemed discharged.
  6. Effect on Ext. B-10 claim: Because the subsequent tarwad income taken by the karanavan effectively discharged the amount due, the court held that Ext. B-10 cannot be used by the 4th defendant-appellant to claim any separate allotment or special right in the property. The court therefore agreed with the lower courts' conclusion (albeit for different reasons) that Ext. B-10 does not confer a special right on the 4th defendant-appellant.
  7. Ext. B-8 lease and Section 7-B (Act 1 of 1964): The court noted Ext. B-8 (a 1961 lease) had been rightly held invalid by earlier courts. It further held that protection under Section 7-B of Act 1 of 1964 was not available because the lease was of 1961 (prior to the statute) and the 4th defendant was not holding bona fide in the belief of being a tenant. Thus no reservation can be allowed on the basis of Ext. B-8.

Holding and Implications

Holding:

SECOND APPEAL DISMISSED.

More specifically:

  • Ext. B-7 — The court held that Ext. B-7 was taken with the separate funds of defendants 1 and 2 because the existence of a sufficient tarwad nucleus was not proved, so the presumption in favour of an acquisition being tarwad property did not apply.
  • Ext. B-10 — Although Ext. B-7 was taken with defendants 1 and 2's funds, the court held that the karanavan had received tarwad income subsequently in an amount greater than what was due for Ext. B-7; that liability is therefore deemed discharged and Ext. B-10 does not confer any special right or separate allotment on the 4th defendant-appellant.
  • Ext. B-8 — The 1961 lease was invalid and Section 7-B of Act 1 of 1964 does not protect the 4th defendant; the 4th defendant cannot claim a reservation under Ext. B-8.
  • The second appeal is dismissed and the court made no order as to costs.

Implications: The immediate consequence is that the 4th defendant-appellant gains no special allotment or reservation from either Ext. B-10 or Ext. B-8. The opinion confines itself to applying established principles about the presumption of tarwad acquisitions and the requirement to prove a sufficient nucleus; it does not announce or purport to establish any novel legal principle beyond applying those precedents to the facts of this case. No broader precedent is pronounced beyond the application of the existing line of authorities as described in the court's reasoning.

Disposition

Appeal dismissed. No order as to costs.

    Vannarath Parvathi Amma And Others v. Vannarath Lakshmi Amma And Others

    1. Defendants 4 to 14 are the appellants in this second appeal. Plaintiffs and the defendants are members of an undivided tavazhi tarwad and the suit is for partition of the B and C schedule properties. The appellants claim reservation of their rights under Exhibit B-10 which is an assignment of Exhibit B-2 kanakuzhikanom deed in respect of Item 1 and some trees in Item 2. There is no controversy regarding the validity of Ext. B-2 kanakuzhikanom deed. That was executed by a prior karanavan of the tavazhi in favour of a junior member by name Kamaran and a stranger by name Kannan. Kamaran was unmarried and died. On his death his half right devolved on the tavazhi. Kannan's right was transferred under Ext. B-6 to one Cheeyyayi and the latter assigned under Ext. B-7 her rights to defendants 1 and 2. They subsequently transferred their rights to the 4th defendant who is the first appellant in this second appeal. The controversy relates to the character of Ext. B-7 assignment. The appellants contend that the acquisition was with the separate funds of defendants 1 and 2 whereas the other members of the tavazhi claimed it to be an assignment in the name of the present karanavan and for and on behalf of the tarwad. The trial Court upheld the appellants' contention. But, the first appellate Court came to a different conclusion and hence this second appeal.

    2. B schedule consists of two items. These and two other items were obtained under an earlier partition by two tavazhies jointly. These tavazhies were enjoying portions of the properties separately. While so, under Ext. B-1 of 1910 the two tavazhies recognised their separate possession and also recognised the improvements effected by each. Though the improvements alone were recognised as belonging to the respective tavazhies separately, the arrangement under Exhibit B-1 was by the subsequent transactions treated for all effects as a partition between the two tavazhies. The tavazhy of the parties to this suit was always finding it difficult to make both ends meet. This tavazhy had to incur debts. It was to discharge some of the debts that Ext. B-2 kanakuzhikanom was executed and an amount of Rs. 500/- borrowed. The income of the property included in Exhibit B-2 was not sufficient to cover the interest on the amount borrowed. So there was a separate undertaking in Ext. B-2 to pay the interest on Rs. 100/- out of Rs. 500/- borrowed.

    3. I am referring to this to show the condition of the family and the family property. It was not possible for the members to manage their affairs with the family income; and naturally the male members went to work-defendants 1 and 2 were masons - to earn a livelihood. The rights of the other tavazhi over Items 1 and 2 were taken assignment of in 1927 under Ext. A-1 for Rs. 1,500/-. For this the family had to sell away the remaining items for Rs. 500/- and make good the balance otherwise. That shows that the position of the family did not improve even by 1927. It has come out in evidence that the female members of the family were residing in the building in Item 1 and that the family cannot get on with the yield from the old trees referred to in Ext. B-1. The income of the properties covered under Ext. B-2 was being taken by the kuzhikanomdars; and that arrangement continued until the death of Kamaran and the transfer of Kannan's right to defendants 1 and 2 under Ext. B-7. No doubt. Kamaran's half right was treated as having devolved on the tavazhi; but there was hardly any time to make up anything out of the income of his share for defendants 1 and 2 to acquire Ext. B-7. There is nothing in Ext. B-7 to show that defendants 1 and 2 took the deed in their capacity of the karanavan and senior anandiravan of the tavazhi. The consideration is ready cash of Rs. 400/-, and it is difficult to presume that family funds were available with defendants 1 and 2 to acquire the rights under Ext. B-7. The evidence let in by the plaintiff is practically of no use to show that there was any tarwad nucleus for defendants 1 and 2 to acquire the rights under Ext. B-7. The respondents' counsel contended that there is a presumption that the acquisition under Ext. B-7 was for the tavazhi, because the assignees are the karanavan and senior anandiravan of the tavazhi; and in support of this reliance is placed on some of the observations of the Supreme Court in Achuthan v. Chinnamu, AIR 1966 SC 411. He referred, in particular, to the following passage from it:—

    “But it is settled law that if a property is acquired in the name of the karnavan, there is a strong presumption that it is a tarwad property and that the presumption must hold good unless and until it is rebutted by acceptable evidence : see Chathu Nambiar v. Sekharan Nambiar, AIR 1925 Mad 430 (2) : AIR 1926 Mad 643 and AIR 1947 Mad 137.”

    4. This passage, if taken out of the context, may be capable of an inference that any acquisition in the name of a karanavan will be presumed to be tarwad property even if it is not shown that the tarwad is possessed of sufficient nucleus with the aid of which the property might be acquired. But, Subba Rao, J. (as he then was) was referring to the presumption available in the case of an acquisition by the members of a joint Hindu family and the acquisitions in the names of members of Marumakkathayam tarwad. In the case of a joint Hindu family it is incumbent upon those asserting that an acquisition is a joint family property to establish it and if they prove that the family is possessed of sufficient nucleus with the aid of which the member might have made the acquisition, the law raises a presumption that it is a joint family property and the onus is shifted to the individual member to establish that the property was acquired by him without the aid of the said nucleus. This presumption was said to be not available in the case of an acquisition of properties in the name of a junior member of a tarwad. It was held that there is no presumption either way and the question has to be decided on the facts of each case. It is after stating this that Subba Rao, J. made the above quoted observation. In the context the availability of tarwad nucleus is assumed. His Lordship was distinguishing the presumption available in the case of a karanavan who is shown to be possessed of sufficient tarwad nucleus from the non-availability of such a presumption in the case of an acquisition by a junior member even if he was shown to be in possession of tarwad nucleus. The above observations cannot be understood to mean that those who claim an acquisition in the name of a karanavan need not prove that the karanavan was possessed of sufficient nucleus with the aid of which the property might have been acquired. In Kunhukuttan Nair v. Devaki Amma, 1968 Ker LT 568, Madhavan Nair, J., before quoting the above observations of Subba Rao, J. in (AIR 1966 SC 411), observed thus at page 574:—

    “When a member of a tarwad, whether he be the karnavan or a junior member, is proved to have been in management of tarwad properties yielding appreciable income, a presumption arises that his acquisitions enure to the tarwad. That rule of presumption has in no way been affected by AIR 1966 SC 411 x x x”.

    5. In Narayani Amma v. Narayani Amma, 1967 Ker LT 637 : (AIR 1967 Ker 90) Krishnamoorthy Iyer, J. after referring to the Supreme Court decision referred to above and referring to the earlier Hindu law cases requiring the proof of existence of a nucleus held that in that case there was sufficient nucleus for the karanavan to acquire the properties. That shows the existence of a nucleus has to be established before a presumption is drawn. Again, in R. Gopala Menon v. Rugmani, 1969 Ker LR 1 a Division Bench of this Court had occasion to consider the scope of the above mentioned Supreme Court decision. Krishna Iyer, J. at p. 19 observed thus:—

    “It may be observed, in this context, that the leading case on the point at present is that of the Supreme Court reported in (1966) 1 SCWR 74 : (AIR 1966 SC 411). Their Lordships applied the presumption to the case of a manager of a tarwad who was not the karanavan under the law and also to the karanavathi of the tarwad provided that there was sufficient nucleus in his or her hands wherewith the acquisition could be made.”

    (underlining is mine)

    6. Again, another Division Bench in A.S Nos. 414 and 419 of 1966 (see 1971 Ker LT (SN) 41) considered the effect of the abovementioned decision and held that the presumption is available if it is proved or admitted that the family possessed sufficient nucleus with the aid of which the member might have made the acquisition. Thus, according to me, it is well settled that a presumption will apply only if it is established that the karanavan had in his hands sufficient tarwad nucleus with the aid of which the acquisition might have been made. In this case I have tried to show that defendants 1 and 2 have not been shown to have had sufficient tarwad nucleus in their hands to raise a presumption. Therefore, Exhibit B-7 must be taken to be obtained with their own funds.

    7. Then the further question is whether the claim of the 4th defendant for reservation of this one-half right of the kanakuzhikanom can be allowed. Defendants 1 and 2 are the karanavan and the senior anandiravan. The property belongs in jenmom to the tavazhi. One-half kanakuzhikanom right also devolved on the tavazhi on the death of Kamaran. There was no impediment in the karanavan paying off the kanakuzhikanom amount.

    8. It was really a mortgage transaction. He was bound to discharge the debt when tarwad funds came into his hands. He cannot claim a benefit to himself on his own default. He was taking the income of the property at least from 1932. He has stated as P.W 1 that he was not paying anything out of the income to other members of the tarwad. He has a duty to protect the interest of the tavazhi. The amount that has come into his hands from out of the half right of the tavazhi for a period of 30 years will be much more than what was due to him for taking Ext. B-7. Therefore, though I have found that Ext. B-7 was taken with his own funds, the tarwad income which had come into his hands subsequently being more than the amount due to him, that liability must be deemed discharged. Therefore, the assignment deed Ext. B-10 does not avail to the 4th defendant-appellant to claim any separate allotment of any portion of the property. Therefore, I agree with the learned Judge, though for different reasons, that the assignment deed Ext. B-10 does not confer any special right on the 4th defendant-appellant.

    9. Another point pressed before me relates to the reservation of Ext. B-8 right claimed by the 4th defendant. That lease has been found to be invalid rightly, and since it is only of the year 1961, protection under Section 7-B of Act 1 of 1964 is not also available to the 4th defendant. She cannot be said to be holding the property bona fide believing herself to be a tenant. Therefore, I agree with the Courts below in holding that the 4th defendant is not entitled to get any reservation for Ext. B-8 lease.

    10. No other point arises for consideration. Hence. I dismiss the second appeal. But, in the circumstances, I make no order as to costs.

    11. Appeal dismissed.

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    Comments

    Vannarath Parvathi Amma And Others v. Vannarath Lakshmi Amma And Others
    (Dec 18, 1974)