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Govindrao And Another v. Rajabai And Another

Privy Council
Dec 19, 1930
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Concise Analytical Summary of the Opinion

Factual and Procedural Background

The parties belong to a family of Mahratta Brahmins from Berar who, since 1839, carried on money‑lending/banking business at Pardi and later at Nagpur. The property in dispute was acquired in the business of the senior branch and was of large value (two crores of rupees). In 1916 Narayan Rao II, the last survivor of the senior branch, died leaving an infant daughter and no male issue.

In 1917 Govindrao (plaintiff 1), representing the junior branch together with his son (plaintiff 2), sued in the District Court of Nagpur claiming, by survivorship as joint family property, the whole of the suit property. The defendants included Narayan Rao II's daughter (respondent 1) and an alleged adopted son (respondent 2); the adoption was disputed but that issue was not decided as it proved unnecessary.

The District Court framed numerous issues. On appeal the Court of the Judicial Commissioner of the Central Provinces (the appellate Court) held that the businesses carried on by the four brothers were separate (i.e., there was no joint family business), which disposed of the case except as to four villages and some house property at Nagpur. The case was further taken to the Board (Privy Council), whose opinion is recorded in this text.

Legal Issues Presented

  1. Was the money‑lending business started in 1839 at Pardi a joint family business or the separate business of the eldest brother Gopal?
  2. If initially joint, did a separation occur in or about 1865 (when Gopal began to carry on business in his own name and Sonbaji opened a business in his own name), resulting in two separate businesses and separate properties?
  3. Is the suit with respect to all or part of the suit property barred by limitation?

Arguments of the Parties

Appellants' Arguments (as presented for Mr. Dube)

  • Because the four brothers lived together and were joint in food, residence and worship, and because the eldest brother Gopal managed the business, a presumption arose that the enterprise was a joint family business rather than Gopal's separate business.
  • The businesses carried on by Tanbaji and Ramchandra at Pardi prior to their deaths were, according to appellants, branches of that joint family business; after their deaths the assets were treated as joint family property and carried on by Gopal, indicating joint character.
  • On limitation, appellants relied on the principle (as cited in Corca v. Appuhamy) that possession by one tenant‑in‑common is not adverse to the other until ouster; this was put forward to resist a finding of adverse possession by the defendants over the four villages.

Respondents' Arguments (as presented for Mr. Upjohn / respondent 2)

  • Mr. Upjohn contended that the District Judge's decision was to the same effect as the appellate decision and that there were concurrent findings of fact which the Board should not disturb.
  • Defendants' factual case asserted that the businesses of the four brothers had always been separate; that Sonbaji and his descendants carried on a distinct money‑lending business at Pardi from 1865; and that plaintiff 1 had not asserted any right to share in the senior branch property during his active management period prior to 1916.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sudarsanam v. Narasimhulu Maistri, [1902] 25 Mad 149 = 14 M lj 358 (judgment of Sir Bhashyam Ayyangar) Authority regarding presumptions or principles relevant to whether a business carried on by members of a family is to be treated as joint family business. The Board noted the authority could be referred to, but held it unnecessary to pursue in detail because even if the business were assumed to have been joint initially, the subsequent evidence justified the lower Courts' finding of separation after 1865; thus the precedent was cited but not relied on to alter the result.
Corca v. Appuhamy, [1912] AC 230 = 81 LJ PC 151 = 105 LT 836 Authority for the proposition that possession by one tenant‑in‑common is not adverse to the other until an ouster (possession is not adverse merely by sole occupation). The appellants relied on this principle to argue non‑adverse possession; the Board observed that in Corca the Board decided possession would not be adverse until ouster, but applied the factual findings here (sole possession, revenue proceedings denying plaintiffs' title, long exclusion from profit and possession) to conclude the defendants' possession had been adverse for the statutory period and therefore the Corca principle did not save the appellants' claim.

Court's Reasoning and Analysis

The court proceeded by careful factual analysis and deference to the findings of the lower Courts where those findings were based on a detailed consideration of documentary and account evidence.

1. Presumption of Joint Business vs. Evidence of Separation:

  • The court acknowledged the appellants' argument that the brothers' co‑residence, joint worship and Gopal's management could raise a presumption of a joint family business. The court referenced an authoritative judgment (Sudarsanam v. Narasimhulu Maistri) as material to that line of argument but considered it unnecessary to treat that authority at length because the specific evidential matrix here supported a contrary conclusion.
  • Both lower Courts conducted detailed examinations of a substantial mass of accounts and documents covering the period from 1865 to Sonbaji's death in 1880. The appellate Court and the District Judge (on closer reading) reached the conclusion that Gopal and Sonbaji had separated in mess, residence, estate, worship and business from about 1865.
  • Specific facts supporting separation included: in 1865 Gopal stopped carrying on business in the name of the family god and began business in his own name; Sonbaji opened his own shop in 1865; there were multiple prior branches already at Pardi so Sonbaji opening another shop in his name indicated separate operations; and the parties' subsequent conduct (management, lists of property, and what was handed over at the minors' majority) reinforced the conclusion of separation.
  • The court also accepted the lower Courts' inference that plaintiff 1 had suppressed his father's business books for the relevant years, and therefore drawing an adverse inference was justified.

2. Conduct after Sonbaji's Death and Acceptance of Separate Property:

  • After Sonbaji's death (1880) plaintiff 1's mother was guardian and asserted separation; when plaintiff 1 attained majority, lists of the minor's property were prepared and those properties were handed over and accepted by plaintiff 1 as his separate property, which he enjoyed for over twenty years.
  • At a 1912 re‑settlement, plaintiff 1 admitted that he was separate in business from Ganpat (Gopal's son), opposing only the claim that one specific village was joint. After Ganpat's death, plaintiff 1 did not assert senior coparcenary rights to management but allowed Narayan Rao II to manage properties; plaintiff 1 first asserted survivorship only after Narayan Rao II's unexpected death in 1916.
  • Viewed cumulatively, the court regarded these actions as strongly indicating long‑standing separation and the absence of any share by Govindrao in the senior branch business.

3. Limitation and the Four Villages:

  • The appellate Court had allowed the defendants' cross‑appeal as to four villages, holding that the suit as to those villages was barred by limitation. The Board agreed with this conclusion.
  • The appellate Court found the defendants' predecessors had been in sole possession and had enjoyed profits of three villages for more than the statutory period; there had also been revenue proceedings (in 1884) where Gopal claimed mutation in his sole name and denied plaintiff 1's interest.
  • As to the fourth village, although there was no express evidence of denial before the 1912 settlement proceedings, the court found on the totality of the circumstances (separation of branches, plaintiff 1's lack of possession or profit participation, exclusion since 1880, and omission from the properties handed over at majority) that plaintiff 1 must have known his interest was not admitted; accordingly the defendants' possession was adverse for more than the statutory period.
  • Even if the villages had originally been joint family property (as the District Judge had held), the Board agreed with the appellate Court that, because the brothers had separated before Sonbaji's death, the effect was that any undivided immovable property ceased to be joint family property governed by Art. 127 and instead came under Art. 144; thus limitation under Art. 144 applied.

4. Deference to Concurrent Findings Where Appropriate:

  • The Board declined Mr. Upjohn's submission that there were concurrent findings of the lower Courts that ought not to be disturbed because the District Judge's judgment was read differently on close examination; the appellate Court's reading and the careful analysis by both lower Courts led their Lordships to accept the conclusion of separation and the related findings.

Holding and Implications

APPEAL DISMISSED.

Implications and direct consequences:

  • The plaintiffs' claim that the senior branch properties formed joint family property entitling Govindrao (plaintiff 1) to take them by survivorship was rejected; the Board upheld the conclusion that the two branches and their businesses had long been separate and that Govindrao had no share in the senior branch business.
  • As to the four villages in question, the Board upheld the appellate Court's conclusion that the plaintiffs' suit was barred by limitation (Art. 144 applicable); the District Judge's application of Art. 127 (on joint family property) was considered incorrect in light of the finding of separation.
  • The decision disposes of the appeal against the defendants and confirms the appellate Court's decree, with costs awarded against the appellants.
  • This opinion does not purport to establish any new general legal principle beyond applying existing rules of evidence, findings of fact, and limitation law to the particular factual matrix; the Board primarily affirmed the lower Courts' fact‑based conclusions and their legal consequences in this case.

Appeal dismissed; the Board advised His Majesty accordingly.

Show all summary ...

Sir John Wallis -

The parties to this suit belong to a family of Mahratta Brahmins from Berar, who ever since the year 1839 have been carrying on business as money-lenders or bankers at Pardi, three of four miles from Nagpur, in the Central Provinces.

The property in suit, which is valued at two crores of rupees (considerably more than one and a half millions sterling), was acquired in the business carried on by the senior branch of the family at Pardi and in recent years at Nagpur. In 1916 Narayan Rao II (so, described to distinguish him from the common ancestor of the same name), who was then the sole survivor of the-senior branch, died, leaving an infant daughter, but no male issue. Thereupon Govindrao, plaintiff 1, who, with his son, plaintiff 2, now represents the junior branch of the family, claimed to-have become entitled by survivorship to-the whole of the suit property as the joint family property of the undivided family, and in 1917 filed the present suit in the District Court of Nagpur, impleading, as defendant 1 Narayan Rao II's daughter, and, as defendant 2, a boy who is alleged to have been adopted by his widow. This adoption was disputed by the plaintiffs, and was made the subject of an issue which it was found unnecessary to decide. The relationship of the parties and their descent from the-common ancestor are shown in the following genealogical table :

The defendants' case is that the business was the separate property of Narayana 1's eldest son, Gopal, from whom they are descended, that Gopal's youngest brother, Sonbaji, plaintiff 1's adoptive father, never had any interest in it, but had carried on a separate money-lending business in his own name at Pardi from 1865 until his death in 1880, and that after attaining majority plaintiff 1 had carried on this business for more then twenty years until the death of Narayan Rao II without putting forward any claim to share in the business or property of the senior branch.

Very numerous issues were framed by the District Court with reference to the specific, allegations in the pleadings, but the questions which arise on the evidence, and on which the case has beer disposed of in the lower Courts, may be formulated as follows :

I. Was the money-lending business, which was started in the name of the family god in 1839 at Pardi, where the four brothers were living together, and was managed by the eldest son Gopal, a joint family business, or was it Gopal's separate business ?

II. If the business was originally a joint family business, was there a separation in 1865, some years after the death of the second and third brothers, when Gopal began to carry on business in his own name instead of in the name of the family god, and Sonbaji began to carry on business in his own name at Pardi, and were there two businesses thenceforth, the separate properties of each of the two brothers ?

III. Is the suit as to the whole or part of the suit property barred by limitation ?

It appeared from the accounts produced by the defendants that the second brother, Tanbaji, who died in 1853, and the third brother, Ramchandra, who died in 1861, had each carried on a money lending business in separate premises at Pardi and it was held by the Court of the Judicial Commissioner of the Central Provinces, on appeal from the decree of the District Court, that there never was any joint family business, and that the businesses carried on by the four brothers were separate. This finding disposed of the case except as to four villages and to some house property at Nagpur, which will be dealt with later.

Mr. Upjohn, for respondent 2, contended that the judgment of the District Judge was to the same effect, and that there were concurrent findings with which the Board would not interfere.

The appellate Court however read the judgment of the District Judge as holding that Gopal and his three brothers were originally joint in mess, worship and business, and that, after the death of the other two brothers, Gopal and Sonbaji separated at or about the time when Sonbaji opened a shop in his own name in the year 1865, and that henceforth there was a separation. Though the language of the judgment is not entirely consistent, the finding at which the trial Judge ultimately arrives in para. 70 of his judgment is that Gopal and Sonbaji were separate in mess, residence, estate, worship and business, some years before the death of Sonbaji in 1880, and that Gopal and Sonbaji's son Govindrao, plaintiff 1, were so separate all along; and later in his judgment, when dealing with the four villages already mentioned, which had been registered in the joint names of Gopal and Sonbaji, he applied Art. 127, Lim. Act, which deals only with joint family property, thereby indicating that he regarded them as having been acquired in a joint family business. Their Lordships are therefore of opinion that Mr. Upjohn's contention as to concurrent findings cannot be sustained.

NARAYAN RAO I.

Gopalpanth Tanbaji=Laxmibai Ramchandra Sonbaji=Sitabai

(died 1885). alias Babaji. (died 1880) (died 1887).

(Tanbaji and Ramchandra predeceased

Gopalpanth and Sonbaji).

Ganpatrao=Gangabai Govindrao

(died 1913) (adopted in 1874). (adopted ;

appellant 1).

Narayan Rao II=Chandrabhagabai

(died 8th February 1916. died 21st June 1916). Sadasheo alias Baburao

(appellant 2).

Anna alias Madhorao Rajabai

(alleged adopted son; (respondent 1).

respondent 2).

It is obviously impossible eighty years later, and in the absence of any written record, to say whence came the funds with which the business was started. Narayan Rao I is said to have been a poor man, and it is not proved that the business was started with the aid of any nucleus of ancestral property derived from him. Even so, it has been strenuously contended by Mr. Dube for the appellants that the facts that the four brothers were living together and were joint in food, residence and worship, and that the business was managed by the eldest brother Gopal, raise a presumption that it was a joint family business and was not his separate business. He also contended that the businesses carried on at Pardi and by Tanbaji till his death in 1853, and by Ramchandra till his death in 1861, were merely branches of the joint family business, as appears from the fact that they were not inherited after their deaths without male issue by their wives and daughters, but were treated as joint family property and carried on for a great many years by the eldest brother Gopal, who ultimately closed to them and transferred the assets and liabilities to the main business.

It is, in their Lordships' opinion, unnecessary to pursue this subject, as to which reference may be made to the judgment of the late Sir Bhashyam Ayyangar in Sudarsanam v. Narasimhulu Maistri, [1902] 25 Mad 149=14 M lj 358 because, assuming in the appellants' favour that, to begin with, there was a business belonging to the joint family, there is no sufficient reason for differing from the District Judge's finding that after 1865 Gopal and Sonbaji, the surviving brothers, were separate and had separate businesses. This finding is based on a most careful and exhaustive examination of the mass of accounts and documents put in evidence regarding the period between 1865 and Sonbaji's death in 1880. The appellate Court has also most carefully analyzed this evidence in its judgment and has arrived at the same conclusion.

It would be very difficult for their Lordships to differ from what is practically a concurrent finding of both the lower Courts in this particular matter, and they are the less disposed to do so because in their opinion that finding is in accordance with the general probabilities of the case and the subsequent conduct of the parties.

In 1865 Gopal ceased to carry on business in the name of the family god and began to carry on business in his own name, and Sonbaji opened a new business in his own name. There were already, according to the plaintiffs' case, three branches of the joint family business at Pardi, and it is difficult to explain Sonbaji's action in opening another business there except on the footing that the two brothers were thenceforth to carry on business separately.

Further, both the lower Courts have assigned good reasons for holding that plaintiff 1 has suppressed the books of his father Sonbaji's business for those years, and have rightly drawn the inference that, if produced, they would not have supported him.

Lastly, what happened after Sonbaji's death, especially after plaintiff 1 attained majority in 1896 or earlier in their Lordships' opinion, affords practically conclusive evidence that the two businesses were separate.

After Sonbaji's death in 1880, plaintiff 1's mother was appointed guardian of his property and asserted that he was separate. She died in 1887, two years after the death of Gopal, and Gopal's son Ganpat, as the nearest agnate took over the management of the minor's business; but before doing so he took care to have lists prepared of the minors property, and it is found by both the lower Courts that the listed properties were duly handed over to the plaintiff on his attaining majority as his separate property and accepted by him as such.

It is, however, urged that Gopal and his son were interested in making out a case of separation, and that no weight should be attached to what they did or to what was done by the minors' mother and guardian, as she may have had no knowledge of the real state of things and have acted under their influence.

Their Lordships are fully alive to this consideration, but in this case, as already stated, there is strong evidence to show that a separation in business had taken place before Sonbaji's death, and plaintiff 1's own conduct after he attained majority appears to be inexplicable on any other basis. According to his present case, he might at any time have insisted on a partition, which would have made him a very rich man, but he accepted the properties which were then handed over to him, and enjoyed them as his separate property for more than 20 years.

At the re-settlement in 1912, when Ganpat applied that one of the four villages which had been acquired before 1865, and stood in the names of Gopal and Sonbaji, should be registered in his own name, as he had been in possession of it for many years, it appears from the order of the Settlement Officer that plaintiff 1, who opposed the application, admitted that he was separate in business from Ganpat, and merely put forward the case that this particular village was joint family property which had not been divided.

Ganpat died in the following year, and plaintiff 1 made no claim as the senior coparcener to the management of the joint family business, but allowed Ganpat's son Narayan Rao II to succeed to the management of the properties now in suit. It was only after Narayan Rao's unexpected death, without male issue in 1916, that he for the first time asserted that they were joint family properties which he was entitled to take by survivorship.

In their Lordships' opinion, looking at the evidence as a whole the only possible conclusion seems to be that the two branches of the family and their businesses had long been separate, and that Govindrao had no share in the business of the senior branch, and that the claim put forward on this footing was rightly rejected by both the lower Courts.

On the defendants' cross-appeal as to four villages for which the plaintiffs bad obtained a decree the appellate Court allowed the appeal and held that the suit was barred by limitation.

In accordance with their finding that there never was any joint family property, they held that if the plaintiffs' branch ever had any interest in these villages, which they seem to have doubted, the suit was barred by limitation, as the defendants' possession had been adverse to them for more than the statutory period. If the villages were not joint family property, it was not disputed that Art. 144 was the article applicable, and the question was whether the defendants' possession had been adverse to the plaintiffs for more than the statutory period. It was contended by Mr. Dube that, if not, they were held by the parties as tenants-in-common, and that the possession of one tenant-in-common was not adverse to the other, citing Corca v. Appuhamy, [1912] AC 230=81 LJ PC 151=105 LT 836. In that case however what was decided by the Board was that the possession would not be adverse until ouster.

The defendants' predecessors had not only been in sole possession and perception of the profits of these villages for more than the statutory period, but as regards three of them there were revenue proceedings between Gopal and plaintiff 1's guardian Sitabai in 1884, in which Gopal claimed mutation in his sole name and denied that plaintiff 1 had any Interest in them.

As regards the fourth village, there is no express evidence of his title having been denied before the settlement proceedings in 1912, which have been al-ready referred to; but having regard to the separation of the two branches of the family, and to the fact that plaintiff 1 never had possession or participation of profits in all these four villages ever since his father's death in 1880, and that they were not included in the property handed over to him by Ganpat, on his attaining majority, he must have known that his interest in them was not admitted, and their Lordships are of opinion that on these facts the appellate Court was justified in holding that the possession of the defendant was adverse for more than the statutory period.

Their Lordships are also of opinion that, even if the villages were originally joint family property, as held by the District Judge, the claim was equally barred under Art. 144, and that the District Judge was wrong in applying Art. 127. Assuming that Gopal and Sonbaji were at one time joint in estate, the District Judge has found, and their Lordships see no reason to differ from that finding, that they had separated before Sonbaji's death, and the effect of that separation was that any immovable joint property which continued undivided was no longer joint family property so as to come under Art. 127, but came under Art. 144.

For these reasons their Lordships are of opinion that the decree of the appellate Court was right; and that the appeal should be dismissed with costs; and they will humbly advise His Majesty accordingly

Appeal dismissed.