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Structured Summary of the Opinion — Second Appeal in Title Suit No. 124/56

Factual and Procedural Background

This appeal arises from Title Suit No. 124/56. Adikanda Sahu (the father) executed a registered deed of settlement dated 20 April 1941 (Ext. A) settling 7.31 acres of suit land in favour of his wife Mukta (life-interest) and his three daughters, defendants 1 to 3. Mutation in respect of the suit property was effected in 1947 (Ext. B). Adikanda died in March 1953 and Mukta died in December 1953.

The present plaintiff, Raghunath (the only son), filed the suit on 22 June 1956 seeking a declaration that Ext. A was void because the father had no right to give away ancestral property, and sought a permanent injunction — the pleading proceeded on an assumption that the plaintiff still continued in possession of the property.

Defendants (the daughters and their husbands) contended that the father had the right to give away the suit land, that the plaintiff had knowledge of the transaction and was a consenting party, and they pleaded acquiescence, estoppel and limitation. Tenant-defendants maintained they were bhagchasis in possession under the donor and then under the donees.

The trial court dismissed the plaintiff's suit, holding inter alia that the father was competent to gift the portion, the plaintiff knew of Ext. A since 1941 (thus the suit was time-barred), and the plaintiff had not been in possession since 1941. The appellate court reversed: it held the suit to be in time, negatived limitation and estoppel, found the gift to be an unreasonable portion (about 1/5th of the estate) and found that the plaintiff had been dispossessed in 1955. The present second appeal challenges the appellate court's decision.

Legal Issues Presented

  1. Whether Adikanda (the donor) was competent to make a gift of the suit land unconnected with the marriage of the daughters — i.e., whether he could validly make such a gift apart from any marriage consideration.
  2. Whether the property so gifted (about 7.31–8 acres) constituted a "reasonable portion" of the donor's entire estate on the date of the gift and therefore was within his power to give.
  3. Whether pleas of limitation, acquiescence and estoppel barred the plaintiff's claim (these were raised below but not seriously challenged before this Court).

Arguments of the Parties

Appellants (Defendants 1 to 4, and associated parties)

  • The father had full right to give away the suit land; it represented only a small fraction of the total family property.
  • The plaintiff had knowledge of Ext. A since 1941 and was a consenting party to the transaction in substance even if not a formal party to the deed.
  • Pleadings included acquiescence, estoppel and limitation as bars to the plaintiff's suit.
  • Tenants asserted they were bhagchasis in possession under the donor and subsequently under the donees.

Respondent (Plaintiff Raghunath)

  • The plaintiff sought a declaration that Ext. A was void because the father had no right to alienate ancestral property by settlement and thus the settlement was not binding.
  • The plaintiff claimed injunctive relief, operating on the assumption that he continued in possession (the plaint contained assertions about dependence and transactions with the daughters and that some properties were settled/purchased with plaintiff's money).
  • The plaintiff attempted to adduce additional documentary evidence (gifts and settlements dated 1949–53) to show that the original settlement was not acted upon or that cumulative gifts represented a large portion of the estate.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sailabala Deb v. Baikuntha Nath Ghose, AIR 1926 Cal 486 That a reasonable portion of ancestral property can be given to daughters in consideration of marriage. Used with other authorities to establish the general proposition that gifts to daughters in consideration of marriage can be valid; here the Court noted those decisions but observed no specific evidence that Ext. A was made as marriage consideration.
Devabhaktuni Sithamahalakshmamma v. Pamulpati Kotayya, AIR 1936 Mad 825 Support for the proposition that a reasonable portion may be given to daughters as marriage consideration. Referred to among earlier decisions establishing that gifting a reasonable portion in connection with marriage is permissible; the Court relied on the broader principle in assessing validity when marriage consideration was not shown.
Pugalia Vettromal v. Vettor Gonedan, 1912 Mad WN 89 Authority upholding validity of a gift of 1/6th share of family property to an undivided brother's daughter. Cited to support that a gift approximating 1/5th of the estate (and in practical division resulting in about 1/16th per daughter) cannot be held unreasonable; comparison supported the Court's conclusion that Ext. A was not excessive.
Sundar Ramayya v. Sitamma, ILR 35 Mad 628 Holds that moral obligation to give to a daughter may persist and justify a gift made long after marriage. Relied upon to support the proposition that a father may validly discharge a moral obligation by making a gift later and that absence of an ante-nuptial gift does not invalidate a later gift.
Pratap v. Raj Bahadur Singh, AIR 1943 Oudh 316 Supports validity of a gift by a parent to a daughter even if no Sankalpa at time of marriage. Referred to as a precedent consistent with the view that a gift unconnected temporally to marriage may still be valid in discharge of moral obligation.
Ramalinga Annavi v. Narayana Annavi, AIR 1922 PC 201 Holds a father has power under Hindu law to make, within reasonable limits, a gift of immovable property to a daughter; gifts of small shares may be upheld. Cited to underline that the father retains the power to gift within reasonable limits; Court used the principle to validate Ext. A as within reasonable limits.
Kamala Devi v. Bachulal Gupta, AIR 1957 SC 434 Observes that some decisions recognize a moral or religious obligation to give a portion of joint-family property for benefit of daughter and son-in-law; a later gift may fulfill that obligation. Quoted to show modern Supreme Court recognition that moral obligation can justify later gifts; applied to support validity of a gift unconnected in time to marriage.

Court's Reasoning and Analysis

The Court proceeded by focusing on the principal contested point before it: whether the donor (Adikanda) was competent to make the settlement of the suit land unconnected with marriage and whether the gift was a reasonable portion of his estate. Other issues (limitation, acquiescence, estoppel) were not seriously contested in this Court.

The Court first considered whether Ext. A had been acted upon. It found that mutation in 1947 (Ext. B) recorded Mukta and the daughters as mutated proprietors and that Muchalikas (documents of transfer of usufruct) were executed by tenants in favour of Mukta and the daughters. These facts demonstrated that Ext. A had been acted upon and that acceptance by the mother (Mukta) and subsequent mutation amounted to acceptance by all donees.

The Court then examined the size of the donor's estate as a factual matter. It accepted the appellate court's finding that the family had at least forty acres of land and possibly about sixty acres when other purchases and gifts were accounted for; thus the settlement of about eight acres represented, at most, roughly one-fifth of the estate. The Court further observed that this eight-acre parcel was to be divided among three daughters, making each daughter's share very small in relation to the total estate (the Court calculated the individual share to be approximately 1/16th of the total estate in the scenario where the donor had forty acres).

On legal principles, the Court reviewed authorities holding that:

  • A father can give a reasonable portion of ancestral property to a daughter, especially in consideration of marriage (earlier cases cited),
  • A moral or religious obligation to provide for a daughter may persist and can validate a gift made long after marriage (Sundar Ramayya; Pratap; Kamala Devi), and
  • The father has the power under Hindu law to make gifts within reasonable limits (Privy Council and other precedents such as Ramalinga Annavi and Pugalia).

Applying these precedents to the facts, the Court concluded that the settlement was not unreasonable in amount. The Court specifically compared the proportion gifted here to the ratio approved in Pugalia (gift of 1/6th upheld) and reasoned that, even on the appellate court's findings that the donor had only forty acres, the aggregate gift of eight acres to three daughters was not excessive — and, when divided among three, resulted in small individual shares.

The Court also held that even where there was no evidence the gift was made as an ante-nuptial consideration, the father could validly make a gift later to discharge moral obligations to dependent daughters. The Court relied on Sundar Ramayya, Pratap, Ramalinga Annavi and the Supreme Court decision in Kamala Devi to support the proposition that a gift unconnected in time with marriage may nonetheless be valid if it constitutes a reasonable disposition within the donor's power.

Considering the documentary additional evidence admitted in this Court (sale-deed of 18-5-49 and subsequent deeds/settlements Exts. 8–10 showing other settlements/gifts between 1949–53), the Court observed that such materials corroborated both dependence of the daughters on the family and the fact that various gifts and settlements had been given and acted upon.

On the totality of these facts and authorities, the Court concluded that Ext. A was a valid transaction and binding on the plaintiff.

Holding and Implications

HOLDING: The appeal is allowed; the deed of settlement (Ext. A) is held to be valid and binding; accordingly, the plaintiff's suit is dismissed.

The Court directed that each party will bear his own costs throughout. The direct consequence is that the plaintiff's challenge to the 1941 settlement fails and the donees' title as established by Ext. A (further evidenced by mutation and Muchalikas) stands upheld.

The opinion applies existing principles from prior decisions to the facts and sustains the gift as within reasonable limits; it does not indicate that it is announcing a new legal principle or precedent beyond the application of established authorities.

Disposition: Appeal allowed; plaintiff's suit dismissed; each party to bear own costs.

    Tara Sahuani And Others v. Raghunath Sahu And Another

    1. This is a defendants' appeal against a decision dated 16-7-60 of Sri C. Mahapatra. Additional District Judge of Berhampur, reversing a decision dated 22-8-58 of Sri S. Naik, Munsif of Berhampur in Title Suit No. 124/56. The appeal arises under the following circumstances; One Adikanda Sahu had four daughters, Tara (defdt. I), Surekha, (defdt. 2), Rajamani (defendant 3), Chandra (who is not a defdt. here) and the only son Raghunath the present plaintiff. Defendants 4 and 5 are the husbands of defendants 1 and 3 respectively, and defendants 6 to 14 are tenants in possession of the suit land. On 20th April, 1941, Adikanda by a registered deed of settlement (Ext. A) settled the suit-property comprising 7.31 acres situate in Mouza Pratapkrishna Chandrapur in the district of Ganjam, in favour of his wife Mukta and daughters, defendants 1 to 3, stipulating Mukta to have life-interest and after her death the property was to go to her daughters defendants 1 to 3.

    2. In accordance with the aforesaid Ext. A, mutation was made in favour of Mukta and defendants 1 to 3 in 1947 (Ext. B). Adikanda died in March 1953 and his widow Mukta in December 1953. Thereafter the defendants 1 to 3 wanted the tenants to execute a Muchalika in their favour and to deliver them the usufruct of the suit-lands. Then some controversy arose in respect of the title and possession of the suit lands, and the present suit was filed by the plaintiff Raghunath on 22-6-56 claiming a declaration that the father had no right to give away the ancestral property as per the settlement deed (Ext. A) which is a void transaction, and is not binding on him. He also prayed for a permanent injunction against the defendants obviously on the assumption that he still continued in possession of the property.

    3. The case of defendants 1 to 4 is that the father has every right to give away the property, the suit land which represents only a small fraction of the entire property which was gifted to the defendants with full knowledge of the plaintiff who was a consenting party to the transaction even though he was not a formal party to the document (Ext. A). They also raised the plea of acquiescence, estoppel and limitation. The case of the tenants-defendants was that they were the bhagchasis under the plaintiff's father, and after him, under Mukta who possessed the property by reason of the aforesaid deed of settlement, and after Mukta they are continuing as Bhagchasis under the daughter-defendants.

    4. The trial court found that the family had sufficient property and the father was perfectly within his rights to gift away a small fraction of the same in favour of his daughters. The plaintiff knew of this document since 1941, and therefore the suit was barred by limitation and the plaintiff was never in possession since 1941, and he thus dismissed the plaintiff's suit.

    5. The appellate court, however, negatived the plea of limitation, estoppel and held the suit to be in time and maintainable. He also held that the family having only about forty acres of land, a gift of about eight acres represented almost 1/5th of the whole estate, cannot be construed to be a reasonable portion of the family property which the father was competent to give away to his daughters. He also found that the plaintiff has been dispossessed from the suit property in the year 1955. Against this decision of the appellate Court, the present second appeal has been filed.

    6. At the hearing of this appeal an application was filed on behalf of the plaintiff-respondent under O. 41, R. 27 of the CPC to take by way of additional evidence some documents filed before this Court. These documents wherefrom it appears that the plaintiff and his father made some other gifts of some other properties to the contesting defendants between the year 1949-53, were produced obviously with the object that the original settlement (Ext. A) was not in fact acted upon and assuming it was acted upon, that taken with the subsequent gifts of the year 1949-53 would represent a large portion of the family property, a gift of which is not permissible in law. It may also be noted that the respondent also moved the lower appellate court for admitting these documents as additional evidence, but that prayer was rejected on the ground that it will give an opportunity to the plaintiff to make out a new case resulting in prejudice to the defendants.

    7. In this Court, however, with the consent of parties, the following documents were admitted as additional evidence (1) A sale-deed dated 18-5-49 executed by Adikanda, and the plaintiff in favour of Surekha (defendant 2) and Rajmani (defendant 3) in respect of A.O 12 decimals in Berhampur town, (marked Ext. I) in this Court; (2) A deed of settlement made by Adikanda and the plaintiff in favour of defendant 2 in respect of a house (marked Ext. 8) in the Berhampur Town; (3) A feed of settlement of the same date executed by Adikanda and the plaintiff in favour of Kajmoni defendant 3) in respect of a house in Berhampur own (Ext. 9), and a deed of settlement executed on 3-6-52 by Adikanda and the plaintiff along with his son Ramsankar in favour of defendant 2 ??? respect of a house situated in Berhampur town Ext. 10).

    8. The questions of limitation, acquiescence and estoppel were not seriously challenged in this Court and the only point that was seriously contested before me is whether Adikanda was competent to make a gift of that extent of ancestral property which he did in favour of defendants 1 ??? 3.

    9. From paragraph 3 of the plaint itself it ??? that

    “the defendants 1 to 3 were married in poor milies, and were dependent on the plaintiff and ??? late father. So the plaintiff and his late ??? settled some properties to defendants 1 to and also purchased some properties in their ??? with the money of the plaintiff and his ???.”

    10. Further from Ext. A the deed of settlement, appears that the daughters in whose favour the it was made were dependent on the father and consideration of that position the father made gift in favour of his daughters, and there are ??? also in that document that the donor was; exclusive owner of the property: but since that ??? was not taken in the courts below and both the Courts acted upon the assumption that it was the ancestral property and not the exclusive property of Adikanda, it is unnecessary for me to examine that point in this appeal. It may be noted in this connection that even in Exts. 8 and 9 referred to above there are clear recitals to show that the defendants were dependents on the plaintiff's family. From Ext. B it also appears that Mukta and defendants 1 to 3 were mutated in respect of the suit property. Obviously therefore, the deed of settlement (Ext. A) was acted upon which is also supported by the Muchalika executed by the various tenants in favour of Mukta and defendants 1 to 3. In view of this position, the contention of the respondent that the deed of settlement was not acted upon cannot prevail. It cannot also be disputed under the circumstances that the acceptance of the gift by the mother, one of the done, is sufficient to constitute acceptance by all the donees, particularly when they got their, names mutated in 1947 in pursuance of the deed of settlement (Ext. A) which comes from the custody of the donees.

    11. Coming to the main controversy, however, two contentions are raised by the appellants before me; (1) The gift is reasonable in consideration of the total property held by the donor on the date of the gift; and (2) the father was competent to gift away the suit-land to his daughters, defendants 1 to 3, who admittedly are poor and dependent on the father.

    12. That a reasonable portion of the ancestral property can be given away by the father to his daughters in consideration of the marriage cannot be disputed in view of a number of decisions on this point, Sailabala Deb v. Baikuntha Nath Ghose, AIR 1926 Cal 486, Devabhaktuni Sithamahalakshmamma v. Pamulpati Kotayya, AIR 1936 Mad 825. But in the present case nothing specific appears that the gift was made by the father in consideration of marriage of defendants 1 to 3. Therefore the only question that has to be considered is whether the donor was competent to make a gift unconnected with the marriage and whether the property so gifted was a reasonable proportion of the entire estate in the hands of the donor on the date of the gift. In the present case, the appellate court on the assessment of evidence before it found;

    “Therefore, it is evident that the family was substantially rich inasmuch as, they had already 40 acres of land and 95 Bharans or 19 acres have been purchased from out of the gold belonging to the family not to speak of certain houses and other lands which admittedly had been gifted to the daughters after 1941. Therefore, the family must be said to have had sufficient nucleus as to be possessed of about 60 acres of land. There has also been some admission on the side of the plaintiff that his father had gifted 80 Bharanams of land to a deity, meaning about 16 acres. Of course, it is not known whether these 80 Bharanams appertain to these forty acres.”

    13. Thus, in view of the appellate Court's finding, Adikanda had at least forty acres of land when he made the settlement of about 8 acres in favour of his daughters, defendants 1 to 3. In a case reported in Pugalia Vettromal v. Vettor Gonedan, 1912 Mad WN 89, a gift of 1/6th share of the family property to an undivided brother's daughter was held to be valid. Even assuming that the plaintiffs father had only forty acres — though according to the finding of the appellate Court he had more — a gift of about 8 acres to three of his daughters representing only 1/5th of the estate, cannot be said to be an unreasonable proportion when specially the eight acres is further divided between the three donees, it ultimately comes to about 2½ acres, that is, about 1/16th of the total estate held by the donor. The gift therefore in my opinion cannot be considered as unreasonable.

    14. The next question is whether apart from the reasonableness of the gift, the father at all had any power to make the gift unconnected with the marriage, which appears to be a crucial question in this appeal. In this connection the case of Sundar Ramayya v. Sitamma, reported in ILR 35 Mad 628 was cited on behalf of the appellants. In that case the gift was made forty years after the marriage, and there was no evidence that the father had any intention to give any property at the time of marriage and the question was whether in such circumstances the gift was valid. Their Lordships held:

    “The father or the widow is not bound to give any property. There may be no legal, but moral obligation. It was also true that in the case before us the father did not make any gift in discharge of the moral obligation at the time of the marriage, but it is difficult to say why the moral obligation cannot sustain a gift because it was not made to the daughter at the time of the marriage, but only sometime later.”

    15. Therefore the moral obligation of the plaintiff's father in the above case continued in force till it was discharged by the gift.

    16. In another case more or less on the same point reported in AIR 1943 Oudh 316, Pratap v. Raj Bahadur Singh, their Lordships held that the gift by the mother in favour of her daughter and son-in-law was valid even though she did not make any ‘Sankalpa’ at the time of the marriage. In a case reported in AIR 1922 PC 201, Ramalinga Annavi v. Narayana Annavi, their Lordships of the Privy Council while dealing with a case of gift made by the father to his daughter which appeared to be a case unconnected with the marriage held:

    “The father has undoubtedly the power under the Hindu Law of making within reasonable limits a gift of immoveable property to a daughter. In one case the Board upheld the gift of a small share of immoveable property on the ground that it was not shown to be unreasonable.”

    17. In a recent decision of the Supreme Court reported in (S) AIR 1957 SC 434, Kamala Devi v. Bachulal Gupta, their Lordships after reviewing the previous decisions on the point including the aforesaid Privy Council decision observed as follows:

    “Some decisions go to the length of holding that there is a moral or religious obligation of giving a portion of the joint family property for the benefit of the daughter and the son-in-law, and a gift made long after the marriage may be supported upon the ground that the gift when made fulfils that moral or religious obligation.”

    18. But as the case before their Lordships was a case of gift relating to an ante nuptial agreement, their Lordships did not think it necessary to apply the aforesaid principles to this case. Therefore, it cannot be doubted that apart from marriage considerations, it is open to the father to give a reasonable extent of ancestral property by way of gift to the daughter particularly when she is in distress. I have held already that the property covered under Ext. A represents only a small portion of the total property in the hands of Adikanda. Thus he was quite competent to gift it to his daughters. The fact that some small houses or house-sites have also been given to two of his daughters both by Adikanda and the present plaintiff does not in any way affect the reasonable character of the gift made previously by Adikanda Admittedly the plaintiff's family has a good number of houses other than their residential house, and it is just possible that in order to give separate accommodation to the daughters, the plaintiff and his father also agreed to settle some house and house-sites in their favour. In view of this position, the deed of gift (Ext. A) is a valid transaction and is binding on the plaintiff. Accordingly, the appeal is allowed, the plaintiff's suit is dismissed, but each party will bear his own costs throughout.

    FF/M/K.S.B

    19. Appeal allowed.

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    Comments

    Tara Sahuani And Others v. Raghunath Sahu And Another
    (Feb 14, 1962)