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Indernath Modi v. Nandram And Others

Rajasthan High Court
Aug 16, 1955
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Concise Analytical Summary of the Opinion (Wanchoo, C.J.)

Factual and Procedural Background

This is an appeal by Shri Indernath Modi against the judgment and decree of the District Judge, Jodhpur. The plaintiff-appellant sought recovery of possession of one of two houses that had been subject to a mortgage said to have been made by Nandram and his brother Achlu on Baisakh Badi 7, St. 1975 (22 April 1919). After the mortgage, Nandram executed a lease in favour of the mortgagee and remained in possession as a tenant.

The original mortgagee, Jainarain, sued Nandram for failure to pay rent and obtained a decree for ejectment and actual possession by execution on 19 November 1931. Subsequently Mst. Sarupi (mother of Nandram) took possession by trespass; she died in 1942, and thereafter Nandram and his sons remained in possession. Jainarain transferred his rights in 1944 to the father of the present appellant, and the present suit was instituted. One of the mortgaged houses had already been sold; the suit concerned the other house.

The suit named Nandram and his two sons Gauri Shanker and Jagdish as defendants. Nandram and Gauri Shanker did not contest; Jagdish alone contested. Jagdish raised multiple defences, including that the suit was barred under Order II Rule 2 CPC and by res judicata, and he contended that the mortgage lacked legal necessity and was not made in lieu of an antecedent debt. Jagdish was not born at the time of the mortgage.

This Court earlier negatived the pleas under Order II Rule 2 CPC and res judicata and remanded the matter to the trial Court with six specific issues to be framed and decided. On remand the trial Court found (inter alia) that the property was ancestral, the family was joint when the mortgage was made (Nandram as Karta), the alienation was for legal necessity and in lieu of antecedent debt, and that a partition had taken place between Nandram and Achlu by which the house in dispute came to Achlu’s share. The present appeal challenges the findings on issues 3 to 6, with special focus at this stage on issue No. 6 (partition between Nandram and Achlu).

Legal Issues Presented

  1. Is the property in dispute ancestral?
  2. Did such members of the family as were alive on the date of the mortgage form a joint Hindu family with Nandram as their Karta?
  3. Has Jagdish a right to challenge the alienation on the ground that though born after the alienation he had come into being before the right of the last member (who was alive at the time of the mortgage) to challenge had become extinguished?
  4. Was the alienation made for legal necessity?
  5. Was the transfer made in lieu of antecedent debt?
  6. Whether there was partition between Nandram and Achlu and this property came to Achlu's share? If so, what is its effect?

Arguments of the Parties

Respondent (Jagdish) — Principal Contentions

  • The suit was barred under Order II Rule 2 of the Civil Procedure Code and on the principle of res judicata.
  • The mortgage was without legal necessity and was not made in lieu of any antecedent debt — therefore it was not binding on Jagdish.
  • Jagdish was not born when the mortgage was executed (he asserted rights as someone born later).

Plaintiff-Appellant — Principal Reliance and Evidence

  • Copy of the registered partition deed of 1920 (the original was summoned but the respondents stated inability to produce it).
  • Order of the Revenue Member dated 6 June 1931 (stating the house belonged to Achlu and that possession might be delivered to the mortgagee).
  • Order of the Development Officer dated 17 April 1935 (refusing an application to gift the house to Gourishanker on the ground that partition had occurred in 1920 and the house belonged to Achlu).
  • Statement of Ajairaj in the trial Court, who stated he knew Nandram and Achlu from 1913, that the house was mortgaged to Jainarain for Rs. 3,000 as Nandram needed money, that there was later a partition and the house came to Achlu, and that he had seen the partition deed before registration and that it bore the signatures of Nandram and others.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mohanlal v. Rasula, ILR (1951) 1 Raj 17; AIR 1951 Raj 117 Held that evidence of due registration may itself be evidence of execution of a document (relying on registration endorsements under Section 60(2) of the Registration Act). The trial Court relied on this authority to treat the registered partition deed (copy, original not produced) as proved by virtue of registration, subject to the qualifications discussed by this Court concerning Section 67 of the Evidence Act.
Gangamoyi Debi v. Troiluckhya Nath Chowdhry, ILR 33 Cal 537 (PC) Registration is a solemn act performed in presence of Registrar; everything done before him is presumed to have been done duly and in order unless deliberate fraud on the Registrar is shown. The Court cited this Privy Council observation to explain the strength of registration and the presumption arising under Section 60(2) of the Registration Act in the absence of proof of fraud.
Gopal Das v. Sri Thakurji, AIR 1943 PC 83 Use of presumption under Section 60(2) where proof under Section 67 Evidence Act is unavailable (e.g., long lapse/absence of witnesses); evidence of due registration is some evidence of execution. The Court relied on the reasoning that where proof under Section 67 cannot be had, presumption from registration is rightly used; the present facts (document of 1920, original not produced, executant/witnesses not available) fitted that approach.
Naresh Chandra Bose v. State of West Bengal, AIR 1955 Cal 398 Emphasised Section 67 of the Evidence Act: the signature of the executant must be proved; mere registration by itself is not sufficient proof of execution where proof under Section 67 is available. The respondent relied on this authority to argue mere registration insufficient; the Court distinguished it on the ground that in the present case the proof under Section 67 was not available (original missing; executant/marginal witnesses not shown to be available).
Lachhman Prasad v. Samam Singh, AIR 1917 PC 41 Addressed validity of alienation by Karta: if not for family necessity or discharge of antecedent debt, the alienation could be declared void in toto. The Court interpreted this authority to mean that such mortgages are voidable (and may be declared void in a suit by a competent coparcener) but are not ipso facto void ab initio; used to reject the submission that the mortgage must be treated as void ab initio.

Court's Reasoning and Analysis

The Court proceeded through the following analytical steps, applying statutes and precedents expressly relied upon in the opinion:

  1. The trial Court's finding that the property was ancestral and that the family was joint with Nandram as Karta at the time of the mortgage was uncontested on appeal and stood as a factual background.
  2. The Court examined the proof of partition (Issue No. 6). The partition deed dated 1920 was not produced in original despite being summoned; the respondents stated inability to produce the original. The Court therefore considered whether the copy together with surrounding circumstances sufficed to prove partition.
  3. The Court reviewed the law concerning proof of execution of registered documents. It analysed Section 60(2) of the Registration Act (endorsement by the Registrar) and the endorsements referred to in Section 59 (including the Section 58 endorsement which records admissions of execution). It balanced that presumption against Section 67 of the Evidence Act, which ordinarily requires proof of handwriting/signature where a document is alleged to be signed by a person.
  4. Relying on Mohanlal v. Rasula and Privy Council authorities (Gangamoyi Debi and Gopal Das), the Court explained that the presumption arising from registration under Section 60(2) is available and of evidentiary weight particularly where proof under Section 67 cannot be had because executant or marginal witnesses are dead or cannot be found.
  5. The Court distinguished authorities (e.g., Naresh Chandra Bose) that emphasise Section 67 where witnesses are available; it held such authorities do not apply where the method of proof under Section 67 is not practicable.
  6. Turning to the facts, the document was executed in 1920, the original was not forthcoming, and it did not appear that the executant and marginal witnesses were available. The Court therefore considered that the presumption under Section 60(2) could be invoked to treat the partition deed as duly executed.
  7. The partition finding was further corroborated by subsequent official orders: (a) the Revenue Member in 1931 releasing the house under attachment on the ground it belonged to Achlu and allowing possession to be delivered to the mortgagee; and (b) the Development Officer in 1935 refusing a proposed gift to Gourishanker on the ground that partition of 1920 had given the house to Achlu. Additionally, Ajairaj’s statement that he had seen the partition deed before registration and that it bore signatures strengthened the conclusion.
  8. On these combined grounds — statutory presumption from registration in circumstances where Section 67 proof could not be used, corroborating administrative orders, and witness statement — the Court concluded that there had been a partition between Nandram and Achlu and that the house in dispute came to Achlu’s share. The trial Court's finding to this effect was upheld.
  9. The Court then addressed consequences: because the property passed to Achlu’s share after partition, and on Achlu’s death passed through succession first to Nandram and thereafter to Jagdish (as described in the opinion), Jagdish could not challenge the alienation on grounds that Achlu himself could not pursue (i.e., want of legal necessity or absence of antecedent debt). On that basis, issues 3–5 needed not be decided.
  10. The Court also considered the submission that the mortgage was void ab initio (relying on Lachhman Prasad). It held that a mortgage by a Karta, even if not for family necessity or in lieu of antecedent debt, is not void ab initio but voidable at the instance of a competent coparcener; therefore the mortgage could not be treated as inherently void on that ground in the present context where Jagdish lacked the right to attack it after partition.

Holding and Implications

Core Ruling: Appeal allowed. The Court upheld the finding of partition between Nandram and Achlu (1920) by which the house in dispute came to Achlu's share, and concluded that the mortgage in respect of that house subsists.

Direct consequences for the parties:

  • The plaintiff-appellant is entitled to a decree for possession of the house described at 'A' in the plaint schedule.
  • The plaintiff is awarded mesne profits of Rs. 570 up to the date of the suit and further mesne profits at the rate of Rs. 15 per month from the date of the suit until the plaintiff is put in possession.
  • The plaintiff will recover costs of the suit from the contesting defendant.
  • No interest was awarded on the mesne profits (the Court passed no decree as to interest).

Broader implications: The opinion applies existing principles on the evidentiary effect of registration (Section 60(2) of the Registration Act) and the limits imposed by Section 67 of the Evidence Act. The Court emphasised that registration-based presumption is appropriately invoked when proof under Section 67 is not practicable. The opinion does not announce or purport to establish any new legal precedent beyond the application and clarification of these established principles to the facts of this case.

Show all summary ...

Wanchoo, C.J:— This is an appeal by Shri Indernath Modi against the judgment and decree of the District Judge. Jodhpur, which had come up for hearing once before, and some of the points in dispute-were decided on the 7th of October, 1952. That judgment will be treated as a part of the present judgment. The facts are all given in that judgment and it is not necessary to repeat them in detail here. Suffice it to say that the suit by the plaintiff-appellant was for recovery of possession on the basis of a mortgage said to have been made by one Nandram and his brother Achlu on Baisakh Badi 7, St. 1975 (22nd April, 1919)., After the mortgage, Nandram executed a lease in favour of the mortgagee and remained in possession as a tenant.

2. The original mortgagee Jainarain however sued Nandram on his failure to pay the rent, and got a decree for ejectment and obtained actual possession by execution on the 19th of November, 1931. Thereafter, there was trouble between Jai Narain and Mst. Sarupi, mother of Nandram. She had taken possession of the house by trespassing on it, and Jainarain's attempts to oust her through the criminal Courts failed. She died in 1942, and thereafter Nandram and his two sons remained in possession of the house. In the meantime. Jainarain transferred his rights to the father of the present appellant in 1944, and that is how the present suit was brought. It may be added that one of the houses mortgaged has already been sold, and the present suit is only about the other house.

3. The suit was filed against Nandram and his two soils Gauri Shanker and Jagdish. Nandram and Gaurishanker did not contest it, and it was Jagdish alone who contested the suit. The main contentions of Jagdish were two-fold, namely that the suit was barred under the provisions of O. II. R. 2 of the CPC and on the principle of resjudicata and that the mortgage was without legal necessity, and had not been made in lieu of an antecedent debt, and was therefore not binding on Jagdish. It may be added that Jagdish was not born when the mortgage was executed, but sometime afterwards.

4. When the matter first came before this Court the plea raised under O. II, R. 2, and on the principle of res judicata by the respondent was negatived. Some other minor points raised on behalf of the respondents were also decided, but as this Court was of opinion that certain material issues had not been framed, it framed the following six issues and remanded the suit to the Court below for decision of those issues:

1. Is the property in dispute ancestral?

2. Did such members of the family as were alive on the date of the mortgage form a joint Hindu family with Nandram as their Karta?

3. Has Jagdish a right to challenge the alienation on the ground that though born after the alienation he had come into being before the right of the last member (who was alive at the time of the mortgage) to challenge had become extinguished?

4. Was the alienation made for legal necessity?

5. Was the transfer made in lieu of antecedent debt?

6. Whether there was partition between Nandram and Achlu and this property came to Achlu's share? If so, what is its effect?

5. The findings on remand on the various issues have now been given. It was found that the property in dispute was ancestral, and that the family was joint on the date of the mortgage with Nandram as Karta. Jagdish's right to challenge the alienation was negatived. It was also held that the alienation was for legal necessity, and in lieu of antecedent debt. Lastly, it was held that there had been a partition between Nandram and Achlu and this property came to the share of Achlu. Consequently Jagdish could not, in any case, challenge the alienation after the partition.

6. The findings on issues 3 to 6 have been challenged on behalf of the respondent before us. So far as the findings on issues 1 and 2 are concerned, there was no dispute in the Court below between the parties. We have heard learned counsel for the parties on issue No. 6 relating to partition between Nandram and Achlu. If the decision of that issue by the trial Court is upheld, the appeal must succeed, for Jagdish would then have no right to challenge the alienation on the ground of want of legal necessity, or on the ground that the transfer was not in lieu of antecedent debt.

7. The plaintiff-appellant relied in this connection on

(a) a cony of the registered partition deed of 1920.

(b) order of the Revenue Minister, dated 6th June, 1931.

(c) order of the Development Officer, dated 17th April, 1935, and

(d) the statement of Ajairaj in the Court below.

8. It may be mentioned that the original of the partition deed was summoned from the respondents, but they expressed their inability to produce it.

9. The Court below has held that the partition deed is proved as it is a registered document, and has relied on Mohanlal v. Rasula, ILR (1951) 1 Raj 17 : (AIR 1951 Raj 117) (A). In that case it was held that ‘evidence of due registration may itself be evidence of the execution of document’. It has, however, been contended on behalf of the respondent that case lays down the law too broadly, and mere registration cannot take the place of proof of execution of a document.

10. The basis of the proposition laid down in Mohanlal's case (A) is to be found in Section 60(2) of the Registration Act which provides that the Registrar would endorse a certificate on the document as to its registration. Such certificate then becomes admissible for purposes of proving that the document has been duly registered in the manner provided by the Registration Act, and that the facts mentioned in the endorsements referred to in S. 59 have occurred as therein mentioned.

11. Among the endorsements referred to in S. 59, is the endorsement under S. 58. The endorsement under S. 58 includes the signature and admission of every person admitting the execution of the document. It is from this admission of execution made under S. 58 that the Courts have held that the registration of documents is some proof of its execution. At the same time, it may be remembered that this mode of proof cannot take the place of proof as provided by Section 67 of the Evidence Act which lays down that if a document is alleged to be signed or to have been written wholly or in part by any person, the signature or the hand-writing of so much of the document as is alleged to be in that person's handwriting must be proved to be in his handwriting.

12. It is only where it is not possible to take recourse to the method provided in S. 67 because of the fact that the executant and the marginal witnesses are either dead or cannot be found that the Courts have taken recourse to the presumption under Section 60(2) of the Registration Act. Mohanlal's case (A) was based on the decision of their Lordships of the Privy Council in Gangamoyi Debi v. Troiluckhya Nath Chowdhry. ILR 33 Cal 537 (PC) (B), where it was held that

“the registration of a document is a solemn act to be performed in the presence of a competent official appointed to act as Registrar, whose duty it is to attend the parties during the registration and see that the proper persons are present, and are competent to act, and are identified to his satisfaction, and all things done before him in his official capacity and verified by his signature will unless it be shown that a deliberate fraud on him has been successfully committed, be presumed to be done duly and in order.”

13. That was a case of a will executed in April, 1867 and the suit was brought sometime in 1897. The original will was produced and so was an attesting witness. It was not necessary, therefore, in that case to rely on the presumption under Section 60(2) of the Registration Act. The remarks of their Lordships to which we have referred above were with respect to another contention in that case, namely that the testator had not a disposing state of mind. It was in that connection that their Lordships observed that registration was a solemn act, and everything must be presumed to have been done duly and in order unless a fraud on the Registration Officer was shown to have been committed.

14. In Gopal Das v. Sri Thakurji, AIR 1943 PC 83 (C) their Lordships again made certain observations in connection with Section 60(2) of the Registration Act. That was a case relating to a document executed in 1881, and the suit in which the question arose was filed sometime before 1930 more than 40 years after the document had been executed. In that connection, their Lordships used the presumption of Section 60(2) of the Registration Act after making the following observations at p. 87:

“It seems clear that any objection to the sufficiency of the proof upon this point would have been idle the circumstances being such that the evidence of due registration is itself some evidence of execution as against the plaintiffs. Wills and documents which are required by law to be attested raise other questions but this receipt was not in that class.”

15. It is obvious from these observations of their Lordships that the presumption under S. 60(2) is raised when evidence to prove execution in the manner provided in Section 67 of the Evidence Act is not available due to the executant or the marginal witnesses being dead or for some other reason. The presumption of S. 60(2) cannot take the place of proof as required by Section 67 of the Evidence Act when witnesses are available to prove the document in the manner provided by the Evidence Act.

16. Learned counsel for the respondent in this connection relied on Naresh Chandra Bose v. State of West Bengal, (S) AIR 1955 Cal 398 (D). Reliance in this case was placed on Section 67 of the Evidence Act, and it was held that the signature of the executant must be proved before such a document is admitted in evidence, and that mere registration of a document would not by itself be sufficient proof of its execution. These observations were with respect to sale deeds of 1945 about which evidence as required by S. 67 could be available.

17. If we may respectfully say so, the proposition of law laid down in Mohanlal's case (A), namely, that evidence of due registration may itself be evidence of registration of document is not incorrect if the other circumstances to which we have referred in the present judgment are kept in mind by Courts when using the presumption arising under Section 60, sub-section (2) of the Registration Act.

18. In the case before us the document was executed in 1920. The original is not forthcoming. It does not appear that the executant and the marginal witnesses are alive. In these circumstances, presumption of S. 60, sub-s. (2) may be raised by the Court to hold that the document was duly executed by Nandram and others. This document shows that there was a division between Nandram and Achlu and other members of the family and the house in dispute came to the share of Achlu. The fact that there was partition between Nandram, Achlu and other members of the family, and the house in dispute came to the share of Achlu is strengthened by subsequent orders by the State in which the partition deed of 1920 had been relied upon.

19. In 1931 the Revenue Member released the house under attachment on the ground that it belonged to Achlu, and said that possession might be delivered to the mortgagee namely Jainarain. Then in 1935 Mst. Sarupi, mother of Nandram, wanted to gift the house in dispute to her grandson Gourishanker. That application was rejected on the ground that there had been a partition in 1920 between Nandram, Achlu and other members of the family, by which the house came to the share of Achlu.

20. Lastly the Court below relied on the statement of Ajairaj who said that he knew Nandram and Achlu etc. from 1913. He stated that the house in dispute was mortgaged to Jainarain for Rs. 3,000/- as Nandram stood in need of money. He further stated that later there was a partition between Nandram and his brothers, and the house in dispute came to the share of Achlu. He further stated that he had seen the partition deed before it was registered and it bore the signature of Nandram and others.

21. We are of opinion that in the circumstances of this case, this evidence is sufficient to establish that there was partition between Achlu and Nandram soon after the mortgage deed, and that the house in dispute came to the share of Achlu. The finding of the Court below to this effect must therefore be upheld.

22. We have now to see what is the effect of this finding. The property was certainly joint when the mortgage was made, but thereafter there was a partition, and this particular property came to the share of Achlu. After the death of Achlu this property would go by succession to Nandram, and thereafter to Jagdish. Jagdish therefore could not raise any objection to the validity of the mortgage by Achlu and Nandram, which Achlu himself could not. Jagdish's interest in the property now is not by survivors hip, but by virtue of his succession to Achlu's property through his father Nandram.

23. In these circumstances, Jagdish cannot, in our opinion, raise the plea that the mortgage was not for legal necessity or for antecedent debt, for Achlu himself, whose successor Jagdish is, could not raise these pleas. In this view of the matter, it is not necessary to decide issues 3, 4 and 5, for it is not open to Jagdish to challenge the alienation on the ground that he was a member of a joint Hindu family of Achlu, and that the alienation was for legal necessity or for an antecedent debt.

24. Lastly, it was urged on behalf of the respondent that the mortgage deed of St. 1975 was void ab initio, and reliance in this connection was placed on Lachhman Prasad v. Samam Singh, AIR 1917 PC 41 (E). The argument is put this way. The mortgage deed was executed when the family was undoubtedly a joint Hindu family. It is open, to the Court to see whether at that time there was any legal necessity for the alienation, or whether the alienation was for an antecedent debt.

25. If the Court comes to the conclusion that there was no legal necessity or there was no ante-cent debt, the mortgage would be void ab initio, and therefore this Court should go into the question of want of legal necessity or absence of antecedent debt even though after the partition of 1920 Jagdish may not have a right to raise this point. It is enough to say that a mortgage by the Karta of a joint Hindu family is not void ab initio even though it may turn out later that it was not for legal necessity or in lieu of an antecedent debt.

26. It is only voidable at the instance of other coparcener. If such a suit is brought the Court will certainly declare the alienation void in its entirety if legal necessity or payment of an antecedent debt is not proved. But it is one thing to say that the mortgage could be declared void in its entirety by the Court, and it is quite another thing to say that it is void ab initio. In Lachhman Prasad's case (E) all that their Lordships of the Privy Council said was that if it were found that the mortgage was neither for family necessity nor for discharge of an antecedent debt, it would be void in toto. Their Lordships never held that it would be void ab initio.

27. The matter is different from gifts, as gift of an undivided interest in a joint family property is void altogether. As, however, it is not possible for Jagdish to challenge the validity of the mortgage after the partition between Achlu, Nandram and others, it is not necessary to go into the question whether the mortgage was for legal necessity or for payment of an antecedent debt, the mortgage being only voidable at the instance of some person entitled to avoid it and not void ab initio.

28. The final result therefore is that the mortgage with respect of the house in dispute subsists and the plaintiff appellant is entitled to possession as for mesne profits, the plaintiff claimed it at the rate of Rs. 15/- per month. This claim was not challenged in the written statement, and under the circumstances, the plaintiff is entitled to mesne profits amounting to Rs. 570/- up to the date of the suit and Rs. 15/- per month thereafter till he is put in possession. We, therefore, allow the appeal, and grant the plaintiff a decree for possession of the house described at ‘A’ in the schedule annexed to the plaint. We also grant the plaintiff Rs. 570/- for mesne profits up to the date of the suit, and further mesne profits at the rate of Rs. 15/- per month from the date of the suit to the date the plaintiff is put in possession of the house. The plaintiff will get his costs of the suit from the contesting defendant. We do not think however that any interest should be allowed on mesne profits, and therefore pass no decree as to interest.

G.M.J

29. Appeal allowed.