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Bhola Nath Banerjee v. Sarbamangala Debi
Factual and Procedural Background
This appeal arises from a suit brought by the Plaintiff for recovery of arrears of a maintenance allowance of Rs. 25 per month, payable to her under the Will of her grandfather, Kali Das Mukherji. The Will provided that whoever was in possession of the estate would be bound to pay this allowance. Under the Will the estate was to pass successively to (1) Bindurekha (the daughter-in-law and mother of the Plaintiff) for life, (2) Sarat Kamini (the testator's daughter) for life, and thereafter to the present Defendants (sons of Sarat Kamini) absolutely.
Bindurekha had taken letters of administration with a copy of the Will annexed. While she was in possession a suit (No. 234 of 1922) was instituted by the present Defendants and their mother to remove her as administratrix; the Plaintiff was also made a party to that suit. That suit ended in a compromise (solenama) by which Bindurekha and Sarat Kamini surrendered their interests in favour of the Defendants; Bindurekha received an annuity in lieu of surrender, and the solenama provided for payment of arrears to the Plaintiff and contained an undertaking by the Defendants to pay Rs. 25 monthly in future, as directed by the Will.
As the allowance was not paid, the Plaintiff instituted the present suit claiming arrears for 10 years (Rs. 300 per year) with interest at 12% per annum and a declaration that the maintenance allowance was a charge upon the estate now in the hands of the Defendants. The Defendants denied the Plaintiff's right, pleaded limitation, denied entitlement to a declaration of charge, and contended that the interest claimed was excessive.
The trial Court overruled the Defendants' defences and decreed the suit in full. On appeal the decision was affirmed. The Defendants (through counsel Mr. Bagchi) now appealed to this Court raising three points.
Legal Issues Presented
- Whether the suit is barred by limitation—specifically whether Article 123 of the Limitation Act governs recovery of the legacy or whether the Plaintiff's rights merged in the compromise, making a shorter limitation period (Arts. 62 or 115) applicable.
- Whether a declaration of a charge can be made in favour of the Plaintiff—that is, whether the Will created a charge on the estate enforceable against the Defendants.
- Whether interest on the legacy at a rate exceeding 6% per annum (specifically 12%) can be awarded.
Arguments of the Parties
Appellant / Defendants' Arguments (as presented)
- The Plaintiff's rights under the Will were extinguished and merged into the compromise in suit No. 234 of 1922, so the present suit is one to recover money due on a compromise and is therefore governed by a shorter limitation period (Art. 62 or Art. 115, Limitation Act).
- Article 123 of the Limitation Act is inapplicable because the Defendants are not executors or administrators but are absolute owners in possession; they cannot be treated as persons legally charged with the duty to pay the legacy.
- No valid charge was created because the properties were not specifically described.
- The interest claimed (12% per annum) is exorbitant and not allowable in law.
Respondent / Plaintiff's Position (as presented)
- The Plaintiff claimed recovery of arrears for 10 years at Rs. 300 per year (reflecting Rs. 25 per month) together with interest at 12% per annum.
- The Plaintiff sought a declaration that the maintenance allowance is a charge upon the estate now possessed by the Defendants.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Ghulam Mohammed v. Ghulam Husain | Interpreted Art. 123 of the Limitation Act to apply where suit is brought against an executor, administrator, or a person legally charged with the duty of paying legacies or delivering distributive shares; emphasised that defendants must be persons legally charged with such duties. | The Court considered the decision and rejected the Appellant's reliance on it. It held that the case did not help the Appellant because the present suit is for payment of a legacy and the Defendants are persons in possession of the estate and legally bound to pay under the Will; thus Art. 123 applies here. |
| Sri Nathji v. Parma Kunwar | Establishes that Art. 123 applies not only to executors/administrators but also to persons in possession of the estate who are legally bound to pay legacies or distributive shares. | The Court relied on this authority to support the conclusion that the Defendants (being in possession under the Will and bound to pay) fall within Art. 123, so the 12-year limitation period governs the suit. |
Court's Reasoning and Analysis
On limitation (Article 123):
- The Court observed that the Plaintiff's right to recover the monthly allowance was created by the Will, not by the compromise. The compromise merely reiterated and acknowledged the existing obligation under the Will; it did not create a new debt or merge the original obligation into a different obligation.
- Consequently, the suit is for recovery of a legacy payable under the Will of Kali Das and is governed by Article 123 of the Limitation Act, giving the Plaintiff a 12-year period from the date the legacy became recoverable.
- Addressing the Appellant's reliance on Ghulam Mohammed v. Ghulam Husain, the Court explained that the authorities interpret Art. 123 as applying where defendants are persons in possession of the estate and legally bound to pay the legacy. The Court found that the present Defendants, who are in possession of the estate under the Will (having the remainder and benefiting from the surrender and acceleration of inheritance), are so bound and thus Art. 123 applies. The Privy Council decision in Ghulam Mohammed was distinguished because that case involved a dispute between co-heirs over distributive shares (governed by Art. 144), not a suit for payment of a legacy.
On creation of a charge:
- The Court stated the legal principle that no particular form of words is necessary to create a charge; a clear intention to make land a security for payment is sufficient.
- The Will expressly stated that the money was to be paid out of the estate and that whoever was in possession under the Will would be bound to pay the allowance. The Court found this language left "no room for doubt" that a charge was intended and that the charge would attach to the corpus of the estate bequeathed successively to the two widows and then to the Defendants.
On rate of interest:
- The Court accepted the Appellant's contention that 12% was excessive. It held that where a testator is a Hindu the statutory rate of interest on a legacy is fixed at 6% per annum under section 353 of the Succession Act; therefore only interest at 6% could be allowed.
Holding and Implications
Core Ruling: Subject to reducing the rate of interest from 12% to 6% per annum, the decision of the Courts below is affirmed.
Implications and direct effects:
- The Plaintiff's suit for arrears of the maintenance allowance is governed by Article 123 of the Limitation Act (12-year period) and the Plaintiff's claim is sustainable on that basis.
- The Court held that the Will created a charge on the estate payable to the Plaintiff; therefore a declaration of charge in respect of the allowance against the estate in the Defendants' hands is justified.
- The interest on the legacy is limited to 6% per annum as provided by section 353 of the Succession Act (applicable where the testator is a Hindu); the previously awarded rate of 12% is reduced accordingly.
- The costs awarded by the Courts below stand; no order as to costs is made in this appeal.
The opinion does not state that it establishes a new legal precedent beyond applying existing principles; its decision affirms the courts below while clarifying the appropriate rate of interest under the statutory provision cited.
The Judgment of the Court was as follows:—
Mukherjea, J.:— This is an appeal on behalf of the Defendants and arises out of a suit commenced by the Plaintiff for recovery of arrears of a maintenance allowance payable to her under the Will of her grand-father, whose estate is now in the hands of the Defendants.
The facts are not in dispute. The Plaintiff's grand-father, one Kali Das Mukherji, died leaving behind him a Will which provided inter alia that a maintenance allowance at the rate of Rs. 25 per month should be paid to the Plaintiff out of the estate left by the testator. Whoever was in possession of the estate for the time being was enjoined to pay this allowance. Under the terms of the Will the properties of the testator were to vest in the 1st place in his daughter-in-law Bindurekha, the mother of the Plaintiff, who was to enjoy the same in the limited rights of a Hindu widow during her life-time. After her death, the testator's daughter, Sarat Kamini, was to possess the estate in similar rights, and when she died, it was to go absolutely to the present Defendants who are the sons of Sarat Kamini. Bindurekha had taken out letters of administration with a copy of the Will annexed and while she was in possession of the estate, a suit was instituted by the present Defendants and their mother for removing her from the position of an administratrix and for other reliefs. To this suit the present Plaintiff was also made a party. The suit ended in a compromise on the basis of which a decree was passed, and its terms, inter alia, were that both Bindurekha and Sarat Kamini would surrender their whole interests in favour of the present Defendants who were to get the properties under the Will of Kali Das after the death of these two widows. Bindurekha got, in lieu of surrendering her rights, an annuity of Rs. 800 a year charged on certain properties. Provisions were made in the solenama for paying up the arrears of maintenance allowance payable to the Plaintiff, and the present Defendants expressly undertook that in future they would go on paying regularly the sum of Rs. 25 a month to the Plaintiff as directed by the Will of Kali Das.
As this allowance was not paid, the Plaintiff was obliged to institute this suit, and she claimed allowance for a period of 10 years at the rate of Rs. 300 a year, together with interest upon it at the rate of 12 per cent per annum. The Plaintiff also prayed that the maintenance allowance might be declared to be a charge upon the estate of Kali Das now possessed by the Defendants. The Defendants, in their written statement, denied that the Plaintiff had any right to the legacy, and they set up the plea of limitation as a bar to the suit. They further pleaded that the Plaintiff was not entitled to a declaration of charge as prayed for by her and that the interest claimed was exorbitant.
The trial Court overruled all these defences, and decreed the Plaintiff's suit in its entirety. On appeal the decision has been affirmed.
Mr. Bagchi who appears in support of the appeal has raised three points for our consideration. In the 1st place he has argued that the suit is barred by limitation. His second contention is that no charge was created in the present case and no declaration of charge could be made in favour of the Plaintiff. The last point raised is that no interest on the legacy at a rate exceeding 6 per cent per annum can be allowed in law.
So far as the 1st point is concerned, both the Courts below have held concurrently that the suit being one for recovery of a legacy payable under the Will of Kali Das, is governed by Art. 123 of the Limitation Act, and the Plaintiff has a period of 12 years from the date when the legacy became recoverable. This view is challenged by Mr. Bagchi who argues in the first place that the rights of the Plaintiff under the Will were extinguished and became merged in the rights created by the compromise made between her and the Defendants in suit No. 234 of 1922. The suit was consequently one to recover money due on a compromise and the period of limitation would be three years under Art. 62 or Art. 115, Limitation Act.
I do not think that this contention is sound. The rights of the Plaintiff to recover the monthly allowance out of the estate left by Kali Das was created by the Will of Kali Das, and not by the compromise in the suit of 1922. Paragraph (6) of Kali Das's Will expressly laid down that whoever was in possession of his estate would be bound to pay the Plaintiff an allowance of Rs. 25 a month. The compromise simply referred to and re-iterated this clause. The Defendants acknowledged their obligations under it, and undertook that in future they would go on paying the Plaintiff the allowance of Rs. 25 a month in accordance with the terms of the Will. There is no question here of one debt being merged in another as is suggested by Mr. Bagchi. The compromise did not create any debt, the Defendants simply affirmed and acknowledged their obligation under the Will.
Mr. Bagchi then argues that Art. 123 is inapplicable inasmuch as the Defendants were neither executors nor administrators, and they were in possession of the estate in their own right as absolute owners. In support of this contention he has invited our attention to the decision of the Judicial Committee in Ghulam Mohammed v. Ghulam Husain .
Now the words “payable” and “deliverable” in the third column of Art. 123 indicate that there must be some person who is under a duty to pay the legacy or to deliver the distributive shares. It was accordingly held by the Judicial Committee in the above case, approving of a long series of decisions in India, that the Article applies only where a suit is brought against an executor or administrator or some person legally charged with the duty of distributing the estate. It is not necessary however that the Defendants must be executors or administrators. They must be persons in possession of the estate and legally bound to pay the legacy or hand over the distributive shares, vide Sri Nathji v. Parma Kunwar .
In this case the testator had bequeathed his properties to his nephew and directed him to pay an allowance of Rs. 500 a year to his daughter, Panna Kumari, who was the Plaintiff in the suit The nephew was already dead at the time of the suit, and he had by a Will, executed prior to his death, bequeathed the properties he got under the Will of his uncle, to an idol named Thakur Srinathji who was made the first Defendant in the suit. The other Defendants were the trustees of the idol. It was held, and in my opinion rightly, that the suit to recover this allowance was governed by Art. 123, as the Defendants were in possession of the estate of the original testator and were bound to pay the legacy to the Plaintiff. I think that this decision applies in full force to the facts of the present case. The Defendants are persons who are in possession of the estate under the provisions of the Will of Kali Das. They were given the remainder after the two previous life-estates in favour of the two widows, and the latter having surrendered their interests, there was an acceleration of the inheritance in favour of the present Defendants. The allowance claimed by the Plaintiff is a legacy payable under the Will of Kali Das, and the Will makes it a legal duty on the part of the Defendants to pay it to the Plaintiff. The decision in Ghulam Mohammed v. Ghulam Husain , in my opinion, does not in any way support the contention of the Appellant. There an argument was raised before the Judicial Committee that as both the waqf and the gift attempted to be created by the Will failed, the owner of the property must be deemed to have died intestate and consequently the suit being instituted by one son against another for his share of the inheritance, could be treated as a suit claiming a distributive share of the property and would be governed by Art. 123, Limitation Act. This contention was not accepted by the Judicial Committee as it was well settled that in a case of this description between co-heirs, the proper article applicable was Art. 144 and not Art. 123.
It must be noted that in the case before the Privy Council the suit was not for payment of a legacy but was one for recovery of the Plaintiff's share in the property said to have been inherited by him along with the Defendant and that is the reason why their Lordships observed that the Defendants must be persons legally charged with the duty of distributing the estate before the suit could be brought within Art. 123, Limitation Act. As between co-heirs, the possession of one is primâ facie the possession of the others, and consequently the suit by one co-heir against another is governed by Art. 144 and not by Art. 123, Limitation Act.
In my opinion, therefore, the Courts below were right in holding that the suit was governed by Art. 123, Limitation Act.
The next question is whether the Courts below were right in giving the Plaintiff a declaration of a charge in respect of her allowance, upon the entire property of the testator in the hands of the Defendants.
The answer to this question would depend upon the fact as to whether or not a charge was created by the Will. It is well established that no particular form of words is necessary to create a charge; all that is required is that there must be a clear intention to make the land a security for payment of money. The language used in the Will leaves no room for doubt that a charge was intended to be created. It is distinctly stated that the money was to be paid out of the estate left by the testator, and whoever was in possession of the estate under the terms of the Will would be bound to pay it. I am not impressed by the argument of Mr. Bagchi that as the properties were not specified, no valid charge could be created. The charge would attach to the corpus of the estate which was bequeathed by the testator successively to the two ladies and then to his daughter's sons who are the Defendants in the present case.
The last point relates to the rate of interest and here I think Mr. Bagchi is right in contending that interest at the rate of 12 per cent per annum should not have been allowed. In case of payment of a legacy the rate of interest has been fixed by statute at 6 per cent per annum, where the testator is a Hindu (vide sec. 353, Succession Act) and interest at that rate only can be allowed in the present case.
The result is that subject to the reduction in the rate of interest from 12 per cent to 6 per cent per annum, the decision of the Courts below would be affirmed. The costs allowed by the Courts below would stand. There will be no order for costs in this appeal.
Roxburgh, J.:— I agree.
P.C
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