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  • provision of S. 4(c) of the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956 (hereinafter called the Act).
  • S. 4(c) of the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956 (Bihar Act No. 22 of 1956).
  • provisions of S. 11 of the Indian Contract Act
  • (sec. S. 7 of the Transfer of Property Act).
  • U.P Consolidation of Holdings Act, 1954
  • S. 7 of the Transfer of Property Act,
  • provision of the U.P Act
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citation codes
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  • provision of S. 4(c) of the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956 (hereinafter called the Act).
  • S. 4(c) of the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956 (Bihar Act No. 22 of 1956).
  • provisions of S. 11 of the Indian Contract Act
  • (sec. S. 7 of the Transfer of Property Act).
  • U.P Consolidation of Holdings Act, 1954
  • S. 7 of the Transfer of Property Act,
  • provision of the U.P Act
Smart Summary

Structured Summary of the Provided Opinion

Factual and Procedural Background

This appeal is brought by the heirs and legal representatives of the original plaintiff, Darbari (Darbhari) Upadhyay, against the judgment and decree of the lower appellate court which reversed the trial court's judgment and dismissed the suit.

The plaintiff sought a declaration that several deeds of gift (described in Schedules 2 and 3 and a Danpatra in Schedule 4 of the plaint), all executed on 5-12-1950 by Raktu Upadhyaya (also spelled Raktu Upadhyay), were illegal, fraudulent, void and not binding on the plaintiff because Raktu was allegedly of unsound mind at the time of execution. The deeds in question included:

  • Ext. A in favour of Mahesh Kahar;
  • Ext. E-1 in favour of defendant No. 6, Dwarika Pandey; and
  • Ext. A-1 in favour of defendant No. 1, Ram Subhag Pandey.

The plaintiff claimed he was Raktu Upadhyaya's nearest heir and that Raktu had lost his understanding (was insane) when the deeds were executed; further, Raktu allegedly continued in possession of the lands and after his death the plaintiff was in possession of those lands. The defendants who received the gifts contended Raktu was of sound mind, executed the deeds out of love and affection because they cared for him, and that the plaintiff was not the nearest heir but a stranger to the family.

At trial, the trial court accepted the plaintiff's case, found no evidence that the deeds had been executed by Raktu, and decreed the suit against the defendants. On appeal, the learned Subordinate Judge held the plaintiff was not the nearest agnate, that the plaintiff failed to prove Raktu was insane at the time of execution, found that Raktu understood the deeds, and that the deeds of gift were acted upon; the appellate court dismissed the suit.

While the appeal was pending, the appellants filed a petition arguing that consolidation operations under the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956 (the "Act") were in progress over the lands and that, under S.4(c) of the Act, the appeal had abated. The Subordinate Judge rejected that contention, holding the Act was not retrospective and S.37 did not bar the suit, and proceeded to decide the appeal on merits.

This Court admitted the present appeal on 23-11-1977 and framed two questions of law for decision (set out below).

Legal Issues Presented

  1. Whether a finding of fact recorded by the court of appeal below without consideration of the oral evidence adduced by the parties can be held to be binding on this Court?
  2. Whether an appeal filed by the defendants-respondents in the court below abated because of S.4(c) of the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956; and if it did abate, whether only the appeal abated or the suit filed on behalf of the plaintiffs-appellants also abated?

Arguments of the Parties

Appellants' Arguments (as presented)

  • Mr. A. Ojha for the appellants contended that the appellate court's finding that Raktu Upadhyaya executed the deeds after understanding their consequences and that the deeds were acted upon was illegal because those findings were reached without considering the oral evidence on the point.
  • Appellants argued that whether the suit abated should be decided with reference to the evidence and findings in the case (i.e., after evidence was adduced), not merely on pleadings.

Respondents'/Defendants' Arguments (as recited)

  • The defendants maintained Raktu Upadhyaya was of sound mind at the time the deeds were executed and that the gifts were made out of love and affection because they cared for and served him in old age.
  • They denied that the plaintiff Darbhari Upadhyaya was the nearest heir and asserted he was a stranger to the family.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gorakh Nath Dube v. Hari Narain Singh (AIR 1973 SC 2451) Held that a suit for cancellation of deeds to the extent they are void or inoperative, where the question could be entertained by Consolidation Authorities under the corresponding consolidation Act, abates in civil court; distinguished between documents wholly/partially invalid (which consolidation authorities can declare ineffective) and documents whose legal effect can be removed only by cancellation by a court. The Court relied on this principle to conclude that a suit seeking cancellation of deeds of gift (on grounds rendering them void) relating to lands under consolidation operations falls within S.4(c) of the Act and abates.
Ram Krit Singh v. State of Bihar (1979 BBCJ (HC) 259; AIR 1979 Patna 250) Interpreted the provision corresponding to S.4(c) of the Act and treated suits for cancellation of deeds which are void (not merely voidable) as abating because such matters are within the jurisdiction of Consolidation Authorities. The Court cited the Special Bench's decision as supporting the conclusion that the present suit is of the category covered by S.4(c) and therefore abates.
Ram Adbar Singh v. Ram Rood Singh (AIR 1968 SC 714) Explained the object of the provision in the corresponding U.P. Act: to remove from ordinary civil and revenue courts those disputes which could be decided during consolidation proceedings before special courts with special procedure. The Court used this reasoning to reinforce that whether a suit abates depends on whether the dispute could be adjudicated in consolidation proceedings, a determination to be made with reference to pleadings and the nature of the claim, not on later evidence.
Ramadhar (Ramadhar/Ram Adbar) Singh's case (referred to as AIR 1968 SC 714) Cited for the proposition that the question of abatement was addressed after decision on the suit and was determined with reference to the nature of the suit rather than the evidence or findings recorded. The Court relied on this to reject the appellants' contention that abatement should be judged by subsequent evidence and findings; instead the nature of the suit as disclosed by the pleadings governs the abatement question.

Court's Reasoning and Analysis

The Court undertook a step-by-step legal analysis rooted in statutory interpretation of the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956 (the "Act") and findings of higher courts:

  1. Identification of statutory scope: The Court noted S.4(b) of the Act provides that "no suit or other legal proceedings in respect of any land in such areas shall be entertained in any court" and S.4(c) provides for abatement of suits instituted prior to notification under S.3 when consolidation operations are in progress.
  2. Application to the pleadings: The Court emphasized that the question of whether a court has jurisdiction to entertain a suit must be decided with reference to the pleadings and the nature of the dispute as pleaded — i.e., whether the dispute is one which could be adjudicated by Consolidation Authorities — and not by subsequent evidence or findings.
  3. Characterization of plaintiff's claim: The Court examined the plaintiff's pleaded case — that the deeds were void because Raktu was of unsound mind (invoking S.11 of the Indian Contract Act and S.7 of the Transfer of Property Act, as cited in the opinion) and therefore incapable of executing transfers — and concluded this pleaded ground rendered the deeds void ab initio, not merely voidable.
  4. Reliance on precedents: The Court relied on the Supreme Court's decision in Gorakh Nath Dube (AIR 1973 SC 2451) and the Special Bench decision in Ram Krit Singh (AIR 1979 Patna 250) to support the principle that suits seeking cancellation or declarations about deeds that are void in respect of lands under consolidation operations fall within the jurisdiction of Consolidation Authorities and therefore abate in ordinary civil courts during consolidation.
  5. Rejection of appellants' timing argument: The Court rejected the appellants' submission that abatement must be assessed after evidence and findings, explaining that precedent shows the nature of the suit is determined from the pleadings, and even where abatement was raised later (as in the cited Supreme Court decisions), it was resolved by reference to the nature of the dispute rather than the adduced evidence.
  6. Final legal conclusion: Given that the lands in dispute are within areas where consolidation operations were in progress and the plaintiff's pleaded claim sought cancellation on grounds rendering the deeds void, the Court concluded the suit (and accordingly the appeal) abated under S.4(c) of the Act.

The Court expressly noted statutory provisions relied upon in the analysis: S.11 of the Indian Contract Act (incompetency to contract for a person of unsound mind) and S.7 of the Transfer of Property Act (incapacity to transfer property), and applied the abatement principle from the cited consolidation Act jurisprudence.

Holding and Implications

Holding: The Court held that the appeal and the suit out of which the appeal arises have abated under S.4(c) of the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956, because the lands in question are in areas where consolidation operations are in progress and the plaintiff's pleaded claim seeks cancellation of deeds on grounds rendering them void.

Disposition: The appeal is disposed of. In the circumstances of the case the Court ordered that there shall be no order as to costs of the appeal.

Implications:

  • The direct effect on the parties is that both the suit and the appeal are abated for so long as consolidation operations under the Act are in progress in the areas encompassing the lands concerned.
  • The Court applied existing precedent and statutory interpretation; the opinion does not purport to create a new legal principle beyond applying S.4(c) and prior case law to the pleaded facts of this case. (The opinion relies on and follows existing decisions rather than announcing a novel precedent.)
Order accordingly.

    Tarkeshwar Upadhya And Another v. Mahesh Kahar And Others

    1. This appeal, by the heirs and legal representatives of the plaintiff, Darbari Upadhyay, is directed against the judgment and decree of the lower appellate court, by which the lower appellate court reversing the judgment and decree of the trial court has dismissed the suit.

    2. The principal relief claimed in the suit was a declaration that the several deeds of gift described in Schedules 2 and 3 and Danpatra mentioned in Schedule 4 of the plaint were illegal, fraudulent and not binding on the plaintiff and that they were never acted upon. Admittedly, all the deeds of gift, which are the subject matter of the suit have been executed on 5-12-1950 by Raktu Upadhyaya. One of them. Ext.-A is in favour of Mahesh Kahar. The second, Ext. E-1 is in favour of defendant No. 6, Dwarika Pandey and third. Ext. A-1 is in favour of the defendant No. 1 Ram Subhag Pandey. The plaintiff brought this suit for declaration on the footing that he was the nearest heir of the deceased Raktu Upadhaya and that Raktu Upadhaya had lost all powers of understanding and he was insane and of unsound mind at the time he is alleged to have executed these various deeds. The case of the plaintiff was that in spite of the execution of the aforesaid deeds of gift. Raktu Upadhyay continued to be in possession of the lands which are the subject matter of the gift and after his death, the plaintiff was in possession of the lands covered by the various deeds of gift.

    3. The defendants, in whose favour the aforesaid deeds of gift have been executed, resisted the suit on the ground that Raktu Upadhayay at the time of the execution of the said deeds was in sound mind and not insane and that he had executed these deeds of gift on account of love and affection as these defendants used to look after Raktu Upadhaya and served him in his old age and he had executed the same in favour of the defendants out of his free will. They further denied that the plaintiff Darbhari Upadhaya was the nearest heir of Raktu Upadhaya. According to them, he was a stranger to the family of Raktu Upadhaya.

    4. The trial court accepted the plaintiff's case and further held that there was no evidence that the deeds of gift had been executed by Raktu Upadhaya and it, accordingly, decreed the suit on contest with costs against the contesting defendants. On appeal, the learned Subordinate Judge held that the plaintiff was not the nearest agnate of Raktu Upadhaya and he has failed to establish that at the time of the execution of the aforesaid deeds Raktu Upadhyaya was insane and of unsound mind and that it appeared that Raktu Upadhaya executed the aforesaid deeds after thoroughly understanding their contents and further that the deeds of gift were acted upon.

    5. Before the appellate court, the plaintiff filed a petition stating that the lands, which were the subject matter of the various deeds of gift, were comprised in areas in which consolidation operations were going on and prayed that it may be declared that the appeal had abated in terms of the provision of S. 4(c) of the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956 (hereinafter called ‘the Act’). The learned Subordinate Judge held that the suit was not within the mischief of S. 4(c) of the Act as the suit was filed in the year 1975 and the Act had got no retrospective effect and that the suit was not barred by S. 37 of the Act. He accordingly, rejected the contention of the appellants that the appeal had abated. The learned Subordinate Judge, as already stated above, dismissed the suit and allowed the appeal with costs.

    5A. At the time of admission of this appeal, this court while admitting the appeal by its order dated 23-11-1977 framed the following questions of law for decision in the appeal:

    “(1) Whether a finding of fact recorded by court of appeal below without consideration of the oral evidence adduced by the parties can be held to be binding on this Court?

    “(2) Whether an appeal filed by the defendants-respondents in the court bellow abated because of S. 4(c) of the Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956 (Bihar Act No. 22 of 1956). If the answer is that it did abate, whether only the appeal abated or even the suit filed on behalf of the plaintiffs-appellants also abated?

    6. Mr. A. Ojha on behalf of the appellants has contended that the finding of the appellate court that Raktu Upadhaya executed the deeds of gift etc. after thoroughly understanding the consequence of the registration of the deeds of gift and also the finding that the deeds of gift were never acted upon are illegal because they have been arrived at without consideration of the oral evidence on the point. I do not say that there is no force in this contention. But in my opinion, in view of the provisions of S. 4(c) of the Act, the appeal and the suit out of which the appeal arises, must be held to have abated. It is not in dispute that the lands, which are the subject matter of the deeds of gift, are comprised in areas in which consolidation operation under the Act is in progress. It is well settled that a suit for cancellation of deeds of gift on the ground that they are void and not merely voidable is a suit covered by S. 4(c) of the Act and abates. In the case of Gorakh Nath Dube v. Hari Narain Singh, (AIR 1973 SC 2451), the Supreme Court held that a suit for cancellation of some deeds to the extent of half share damped by the plaintiff in certain tenancy plots on the ground that the vendor, his uncle, had no right to execute the sale deeds in respect of lands involved in dispute, raised a question which could be entertained by the Consolidation Authorities under the U.P Consolidation of Holdings Act, 1954 and, therefore, the suit in the civil court had abated. In that case it was pointed out “We think that a distinction can be made between eases where a document is wholly or partially invalid so that it can be disregarded by any court or authority and one where it has to be actually set aside before it can cease to have legal effect. An alienation made in excess of power to transfer would be to the extent of the excess of power invalid. An adjudication on the effect of such a purported alienation would be necessarily implied in the decision of a dispute involving conflicting claims to rights or interests in land which are the subject matter of consolidation proceedings. The existence and quantum of rights claimed or denied will have to be declared by the consolidation authorities which would be deemed to be invested with jurisdiction, by the necessary implication of their statutory powers to adjudicate upon such rights and interests in land, to declare such documents effective or ineffective. But, where there is a document the legal effect of which can only be taken away by setting it aside or its cancellation, it could be urged that the consolidation authorities have no power to cancel the deed, and, therefore, it must be held to be binding on them so long as it is not cancelled by a court having the power to cancel it”. Though the aforesaid decision was given with respect to the provisions of the corresponding U.P Act, the principle laid down is applicable in cases covered by the Act. See the decision of a Special Bench of this Court in Ram Krit Singh v. State of Bihar, (1979 BBCJ (HC) 259) : (at p. 262) : (AIR 1979 Patna 250 at p. 251) provision of S. 4(c) of the Act relating to abatement of suit.

    6A. It is, therefore, manifest that the question of cancellation of the deeds of gift, in respect of lands which are under consolidation operation on the ground that the deeds are void and not merely voidable can be entertained by the Consolidation Authorities and, therefore, a suit in which such claim is made and has been instituted shall abate. Now, if cannot be disputed that the grounds on which the plaintiff sought to cancel the deeds of gift rendered the deeds void and not merely voidable. According to the plaintiff, the same had been executed by the person who was not of sound mind at the time of execution of the sale deeds. Such a person is not at all competent to transfer any property, belonging to him (sec. S. 7 of the Transfer of Property Act). A person of unsound mind, is in view of the provisions of S. 11 of the Indian Contract Act not competent to contract and, therefore, in view of S. 7 of the Transfer of Property Act, not competent to transfer any property by a deed of gift etc. a transfer by him would, therefore, be void ab initio. A dispute of this nature can only be tried by the Consolidation Authorities and, therefore, the suit instituted prior to the notification under S. 3 of the Act must abate.

    7. Shri Ojha, however, attempted to argue that after evidence has been adduced in the case a question whether the suit abates or not must be decided not with reference to the pleadings of the parties, but with reference of the findings arrived at by the Court. In my opinion, this contention is completely untenable. S. 4(b) of the Act lays down “no suit or other legal proceedings in respect of any land in such areas shall be entertained in any court” (emphasis supplied) and S. 4(c) of the Act provides for abatement of such suits, which have also been instituted in such areas prior to the issue of the notification under S. 3 of the Act. Whether the court has jurisdiction to entertain a suit, must be decided with reference to the pleadings of the parties and the question whether the suit had abated or not must, accordingly, also be decided with reference to the pleadings, namely, the nature of the dispute. That this is the correct legal position is clear from the decision of the Supreme Court in Gorakh Nath's case (AIR 1973 SC 2451) (supra) as also from the decision of this Court in Ram Krit Singh's case (AIR 1979 Patna 250) (FB) (supra). In deciding the (question whether a dispute raised by the suit could be adjudicated upon by the Consolidation Court, the Supreme Court speaking through Beg, J., as he then was in Gorakh Nath's case stated that in the case before them “the plaintiffs' claim is that the sale of his half share by his uncle was invalid, inoperative and void, such a claim could be adjudicated upon by consolidation courts”. So according to the Supreme Court the question to be determined is whether the claim could be adjudicated upon by the Consolidation Courts, not whether the claim was justified by the evidence on record or not. Their Lordships of the Supreme Court referred to the object of the corresponding provision of the U.P Act as stated in the earlier decision of the Supreme Court in Ram Adbar Singh v. Ram Rood Singh (AIR 1968 SC 714) and observed (at p. 2453 of AIR 1973 SC 24511 “the whole object of this provision of the Act was to remove from the jurisdiction of the ordinary civil and revenue courts, for the duration of consolidation operations, all disputes which could be decided in the course of consolidation proceedings before special courts governed by special procedure”. In deciding whether a suit abates or not, therefore, what has to be determined is whether the disputes could be decided in the course of consolidation proceedings before the Special Courts or whether the claim could be adjudicated upon by the civil court. In Ram Krit's case (supra) a Special Bench of this Court came to the conclusion that the suit was a suit of the first category i.e it was for cancellation of the deed which was void and not merely voidable and thus hit by S. 4(c) of the Act and gave the following reason for the conclusion: (at p. 256 of AIR 1979 Pat):

    “A perusal of the plaint, gist whereof has been given, makes it abundantly dear that the suit is in respect of declaration of right and interest in lands which are subject matter of consolidation proceedings. The deed executed by the first party in favour of the second party, according to the claim in the suit, is not binding unless set aside by the Court of competent jurisdiction. The present suit is a suit of the first category, and not the second category mentioned, in Gorakh Nath Dubey's case (supra)”. The decision whether the suit was of the first category or of the second category mentioned in Gorakh Nath Dubey's case was arrived at on a perusal of the plaint in that case and not with reference to the evidence adduced in the case.

    8. Shri Ojha attempted to distinguish these decisions on the ground that in those cases the evidence does not appear to have been adduced on the question. I do not think that the distinction is tenable. Mr. Ojha concedes that the question whether the suit is of the category referred to in S. 4(c) of the Act, has at the initial stage, to be determined on the basis of the pleadings of the parties. Why the decision of the same question at a later stage must be made not with reference to the pleadings, with reference to the evidence in the case and the findings if point is raised at a later stage is not easy to comprehend. Further, it must be remembered that in Ramadhar Singh's case (AIR 1968 SC 714) the question of abatement of the suit had been raised after the decision of the suit which was the subject matter of the appeal at the Supreme Court stage and the question was decided with reference to the nature of the suit without any consideration of the evidence adduced on the findings recorded in the suit or appeal. This contention must, therefore, fail. On the pleadings of the parties, as I have already held, there is no doubt that the suit is a suit of the first category and not the second category in the Gorakh Nath Dubey's case (AIR 1973 SC 2451) (supra) and the claim of the plaintiff is one which could be entertained by the Consolidation Court and, therefore, the suit must be held to have abated in view of the provision of S. 4(c) of the Act. I accordingly, hold that the appeal as well as the suit out of which the dispute arises stand abated during the period in which the consolidation operation is in progress in the areas in which the lands are situated and I order accordingly. The appeal is accordingly disposed of. In the circumstances of the case, there shall be no order as to costs of this appeal.

    Order accordingly.

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    Comments

    Tarkeshwar Upadhya And Another v. Mahesh Kahar And Others
    (May 22, 1981)