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Sirish Chandra Banerjee And Anr. v. Debendra Nath Banerjee And Ors.

Calcutta High Court
Jul 26, 1929
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Summary of Opinion — Debuttar Estate Appeal

Factual and Procedural Background

This appeal arises from a dispute concerning rights in a debuttar estate. The appellant challenges two rulings of the lower appellate court: (1) cancellation of a lease that had been granted by a receiver (appointed by the Court) in favour of defendant 2; and (2) the holding that the plaintiffs, as co-shebaits with defendant 1, were entitled to remove the idol into their exclusive custody for seven and a half months each year under the terms of a prior compromise.

The lease was challenged on grounds that the receiver who effected it concealed material facts from the Court — specifically, that the lessee was the receiver's grandson and a brother of Sirish Chandra Banerjee (the adopted son of Bama Sundari, who had been the previous shebait of the six annas share under a compromise with Promotho Nath Banerjee). Promotho Nath Banerjee had been the predecessor of the plaintiffs and the shebait of the ten annas share under that compromise. Promotho Nath Banerjee died in 1924 and the receivership has since been terminated by the Court.

The trial Court had made findings that the lease was to the advantage of the estate; the appellate Court cancelled the lease; the present Court reviews both the cancellation and the question about custody of the idol.

Legal Issues Presented

  1. Whether a lease granted by a Court-appointed receiver to defendant 2 was rightly cancelled by the lower appellate Court, given alleged concealment by the receiver and an added clause in the lease.
  2. Whether the lower appellate Court was correct in holding that the plaintiffs, as co-shebaits with defendant 1, were entitled to remove the idol to their exclusive custody for seven and a half months of the year under the terms of the compromise.

Arguments of the Parties

Appellants' Arguments

  • The appellants contended that the decision of the lower appellate Court on both the lease cancellation and the idol custody was not justified in the circumstances.

Other Positions Noted in the Opinion

  • The Court noted that the lessee (through Ground 7 of the appeal) wished to continue the lease provided the objectionable added clause (about remaining in possession if not paid for permanent structures) was deleted.
  • The defendants objected to provision in the proposed building for accommodation for the shebaits; the Court recorded this objection and considered it unnecessary to provide such accommodation.
  • The parties (or their representatives) discussed and agreed in the Court's presence that a suitable building should be erected for the idol, with the expense to be met from land acquisition funds due to the estate.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court proceeded through a sequence of legal findings and practical considerations:

  1. Receiver's authority and concealment: The Court reaffirmed the principle that a receiver has no power to lease debuttar property without the sanction of the Court. It also endorsed the proposition that any misrepresentation or concealment of material facts made to the Court in connexion with a proposed lease would vitiate the receiver's authority to grant the lease. In the present case the Court found concealment: the receiver failed to disclose the familial relationship between the lessee and the receiver.
  2. Effect of the added clause in the lease: The lease contained an added clause (not in the terms proposed for sanction) that, in essence, allowed the lessee to remain in possession if he were not paid the price of any permanent structures as settled by an engineer appointed by both parties. The sanctioned application had required the shebaits to pay the full value of such structures. The Court observed that, practically speaking, if the value were not paid the lessee would at least have a lien, so the added clause did not materially change entitlement to compensation for permanent structures.
  3. Balance between procedural defect and estate benefit: Although the concealment of relationship was a serious defect, the Court weighed this against the factual finding of the trial Court (which the appellate Court had not disturbed) that the lease had been to the advantage of the estate and that its continuance appeared likely to be beneficial. The Court noted it was therefore doubtful that fraud had been practised or intended at the time the lease was granted.
  4. Practical consequences of cancellation: The trial Court had surmised that cancelling the lease might lead to wastage of the property through disputes among the shebaits. Given the finding that the lease was advantageous, the Court concluded that suspicion of impropriety at inception did not, by itself, justify complete cancellation of the lease where continuation served the estate's interests.
  5. Remedy tailored to defects: Taking into account Ground 7 (the lessee's willingness to continue without the objectionable clause), the Court decided the appropriate remedy was modification of the lower appellate Court's order — preserving the lease but excluding the clause entitling the lessee to remain in possession after termination of the lease.
  6. Idol custody and practical accommodation: On the idol issue, the Court reviewed the compromise terms: Pramatha (and his successors) were entitled to worship the deity at any convenient place during their pala (turn). The trial Court had refused plaintiffs' prayer to move the idol, citing danger to puja. The appellate Court had held plaintiffs could not be refused their right under the compromise to have the idol during their seven and a half months when they can worship it conveniently. Recognising the practical difficulty that the plaintiffs had no suitable permanent place and that the idol had been housed for 35 years in a rented house (with no specific temple), the Court favored building a separate abode on a part of the debuttar estate. This would allow orderly worship in turn—seven and a half months for the plaintiffs and four and a half months for the defendants.
  7. Implementation directions: The Court directed that a receiver be appointed under the direction of the Court to oversee erection of the building (ideally someone who would act without expense to the parties). The expense was to be met from the land acquisition funds due to the estate. The trial Court was to decide the precise commencement times of worship for the parties, if disagreement arose.

Holding and Implications

Holding: The appeal was allowed. The Court ordered that the lease is to remain in force, but excluding the clause that entitled the lessee to remain in possession after the termination of the lease. A building for the residence of the idol is to be erected as speedily as possible on the debuttar estate under the direction of the Court, to be used by the plaintiffs and defendants for worship for seven and a half and four and a half months respectively. The case is remitted to the trial Court for the purposes indicated. Each party will pay their own costs.

Implications: The decision leaves the operative lease intact except for removal of the specific possession clause, balancing the procedural defect (concealment) against the practical benefit to the estate as found by the trial Court. The Court imposed a remedial and administrative solution (construction of an abode and appointment of a receiver to supervise), and remitted unresolved implementation details (timing of worship) to the trial Court. The opinion does not purport to establish a broader legal precedent; its immediate effect is the modified continuation of the lease and directions for creation of a permanent place for the idol and for implementation by the trial Court.

Administrative and Other Notes from the Opinion

  • The opinion records that Promotho Nath Banerjee (the predecessor shebait relevant to the compromise) died in 1924 and that the receivership has been terminated by the Court.
  • The Court recorded the assistance of the parties' representatives in discussing the construction proposal and that the expense was to be met from land acquisition funds due to the estate.
  • The opinion is signed (or recorded) with the name "Suhrawardy, J." and concludes with an assent line reading "I agree."
Show all summary ...

1. The appeal has arisen out of a dispute as to the rights of the parties in a debuttar estate. The only two questions arising in this appeal are : (1) whether a lease granted by a receiver appointed by the Court to defendant 2 has been rightly cancelled by the lower appellate Court : (2) whether the lower appellate Court was correct in holding that the plaintiffs as co-shebaits with defendant 1 were entitled to remove the idol to their exclusive custody for seven and half months of the year. The appellants contend that the decision of the lower appellate Court on both these points is not justified in the circumstances of the case.

2. The lease was cancelled on the grounds: that (1) the receiver concealed from the Court the fact that the lessee was her own grandson and a brother of Sirish Chandra Banerjee the adopted son of Bama Sundari the previous shebait of the six annas share by virtue of a compromise with Promotho Nath Banerjee, The latter was the predecessor of the plaintiffs and shebait under the compromise of the ten annas share, in whose place the receiver was appointed by the Court. He died in 1924 and the receivership has been terminated by the Court.

3. The receiver has of course no power to lease the debuttar property without the sanction of the Court and the Court below has quite rightly held that any misrepresentation on concealment of material facts from the Court in connexion with a proposed lease would vitiate the authority of the receiver to grant the lease In the present case there was such concealment and it is possible that the Court might not have granted sanction to the lease or at least might have scrutinized the terms more closely had it known of the relationship. Another objection is that in the lease an additional clause was introduced which was not contained in the terms proposed in the application for sanction, i.e., that if the lessee was not paid the price of any permanent structures as settled by an engineer appointed by both parties, he would not be bound to give up the property. According to the application (the terms proposed which were sanctioned by the Court) the she baits were to pay to the lessee the full value of all such structures erected by the lessee. That being so, if the value was not paid the lessee would certainly be entitled at least to a lien on the property, so that the added clause did not really add very much to the terms sanctioned.

4. The first objection is more serious and had it been shown that the lease was in any way a disadvantageous one and not for the benefit of the debuttar estate then I certainly think it should be cancelled. On the findings, however, arrived at by the Court of first instance which have not been upset by the learned appellate Judge it appears that the leas has been to the advantage of the estate and there seems every reason to think that its continuance will be for the advantage of the estate. In these circumstances it is doubtful if there was any fraud practised on the Court or intended when the lease was granted. No attempt has apparently been made to erect permanent structures and the clause entitling the lessee to continue in possession not having received the sanction of the Court would not be binding on the shebaits and cannot be deleted from the lease. There seems to be some ground for the surmise of the trial Court that if the lease is cancelled it will lead to wastage of the property through disputes between the shebaits and, in the circumstances, since the continuance of the existing lease (apart from the clause about retaining possession on the expiry of the lease) appears to be for the benefit of the estate, the fact that there is reason to suspect fraud at the time of its inception does not seem to be a good ground for cancelling it entirely Ground 7 of the appeal indicates that the lessee wishes to continue the lease with the objectionable added clause deleted and we think that the order of the Court of appeal below should be modified accordingly.

5. The remaining point is regarding the removal of the idol. Under the terms of the compromise between Pramatha and Bamasundari, Pramatha was entitled to worship the deity at any place convenient to him during his pala or turn of worship. The trial Court, however, refused the prayer of the plaintiffs that-they might move the idol holding that to-do so would endanger the puja The idol has been in a rented house in Kid-derpore for the last 35 years but there is no specific temple for it and in the circumstances we think that the appellate-Court was right in holding that the plaintiffs could not be refused their right under the terms of the compromise to have the idol during their seven and half months pala where they can worship it conveniently. The appellants, however, rightly object to the removal of the idol from place to place especially as the' plaintiffs have no suitable place to keep ; it. In the circumstances we are inclined to favour the proposal referred to in the trial Court to construct a separate abode for the idol on a part of the debuttar estate where it could be conveniently worshipped in turn by the parties. This suggestion was discussed in our presence by the representatives of the parties and it was agreed that a suitable building should be erected, the expense being met from the land acquisition funds which are due to the estate. A receiver will be appointed under the direction of the-Court (if possible some one who will act without expense to the parties) for this-purpose. The defendants object to provision in the building for accommodation' for the shebaits and we think that this is not necessary. The trial Court will-also decide when the time of worship of the parties will Commence should there be any disagreement on this point.

6. The appeal is allowed accordingly. The lease will remain in force excluding the clause entitling the lessee to remain in possession after the termination of the-lease-and a building will be erected as speedily as possible for the residence of the idol under the direction of the Court where the plaintiffs and defendants can worship it for seven and half and four and half months respectively.

7. The case will accordingly be remitted to the trial Court for the purposes indicated. The parties will pay their own costs.

Suhrawardy, J.

8. I agree.