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Factual and Procedural Background

This is an appeal by the plaintiffs (the two sons of Kamini Sundari) in a suit for recovery of money claimed as an annuity from the first defendant, one of the representatives of the estate of their maternal grandfather, Radhakanta Chowdhury. The Court of first instance decreed the suit in favour of the plaintiffs. On appeal, the Sub-ordinate Judge reversed that decision, holding that the plaintiffs' claim was not enforceable in law because the sons were born after the death of their maternal grandfather, and the grant in their favour was, in the Sub-ordinate Judge's view, a gift to unborn persons void under the rule in Tagore v. Tagore. The present appeal challenges the Sub-ordinate Judge's legal conclusion.

Legal Issues Presented

  1. Whether an annuity (ekrarnama/corrody) granted in favour of a daughter and, after her death, in favour of her son who may be born after the grantor's death, is enforceable in law.
  2. Whether the rule against gifts to unborn persons as stated in Tagore v. Tagore applies to an annuity charged on the estate (i.e., whether such a grant is void as a gift to unborn persons).
  3. Whether an annuity payable out of the testator's estate constitutes a charge/corrody under Hindu law and thereby falls within recognized exceptions to the general rule against gifts to unborn persons or against perpetuities/remoteness.
  4. Whether principles and authorities recognising corrody/ekrarnama and charges on estate property render such a grant valid even if the ultimate beneficiary is born after the testator's death.

Arguments of the Parties

Defendant's Arguments

  • The defendant urged that the plaintiffs' claim was not enforceable in law, contending that the grant to the plaintiffs (sons of Kamini Sundari) was in effect a gift to unborn persons and therefore void under the rule in Tagore v. Tagore.

Appellants' (Plaintiffs') Arguments

  • The appellants contended that the Sub-ordinate Judge erred in law in applying the Tagore rule to their claim; they challenged the view that the annuity was invalid, asserting (as reflected in the opinion) that authorities and principles of Hindu law recognise corrody/ekrarnama and charges on estate that render such grants operative even where beneficiaries may be born after the grantor's death.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Tagore v. Tagore Expressed the rule of invalidity of a gift to an unborn person; but the judgment also contained language indicating possible exceptional cases (e.g., family provisions or contractual/conditional gifts) may be treated differently. The Sub-ordinate Judge relied on Tagore to hold the grant void as a gift to unborn persons. The Court in this opinion treated the Tagore rule as having limitations and not applicable to the present annuity that is a charge on the estate.
Chalamanna v. Subbamma Support for the proposition that a solemn binding promise of the type in an ekrarnama is known to Hindu law and is equivalent to a declaration of trust or corrody. The Court relied on this authority to show that corrody/ekrarnama is recognized in Hindu jurisprudence and that such grants can amount to property rights (incorporeal) if intention and transfer indicia exist.
Balvantrav v. Purshotam Set out principal texts regarding corrody and related Hindu law authorities. Referenced to show supporting textual authorities for recognising corrodies; the Court noted that applicability of Balvantrav would have been decisive against the appellant if it applied in a certain way.
Nafar Chandra Kundu v. Ratnamala Emphasised the passage in Tagore leaving open exceptional cases (contractual or conditional family provisions) which may be supported by Hindu law. Used as authority for sustaining bequests potentially taking effect in favour of persons born after the testator's death; cited to show Tagore is not absolute.
Dineshchandra v. Birajkamini Similar to Nafar: sustained a bequest to a would-be daughter-in-law who might be born after the testator's death. Relied upon to show that gifts/bequests potentially taking effect in respect of persons born after a testator's death have been upheld where Hindu law authority supports them.
Upendra v. Purendra Applied Nafar and Dinesh to uphold a request for marriage expenses of great grandchildren born after the testator's death. Cited as an example where later-born descendants' claims were upheld on the authority of prior decisions allowing such family provisions.
Rajah (Raja) of Ramnad v. Sundara Upheld an annuity in favour of a junior family member and his descendants from generation to generation as not contrary to Hindu or English rule against perpetuities/remoteness; distinguished from cases imposing restraints on alienation. The Court relied on this decision (and its affirmation by the Judicial Committee) to support the proposition that an annuity charged on estate to family members and their descendants can be valid and not offend remoteness/perpetuity rules.
Narayana v. Madhawa Referenced as one of several Judicial Committee decisions supporting the view in Rajah of Ramnad v. Sundara. Relied upon to fortify the position that such family annuities/charges can be valid.
Ahmad Hossein v. Nihaluddin Referenced among Judicial Committee decisions consistent with upholding certain kinds of family provisions. Used as part of the body of authorities reinforcing the validity of the annuity charged on estate.
Karim v. Heinrichs Referenced as supporting authority in the line of cases cited. Counted among the decisions that the Court relied upon to support the validity of the present annuity charge.
Azizunnissa v. Tassadduk Hussain Referenced as supporting authority in the line of Judicial Committee decisions. Included among the authorities that made the Rajah of Ramnad view persuasive to the Court.
Chandichurn v. Sidheswari Held invalid where grant imposed a restraint upon alienation or in essence created a covenant binding heirs to give villages to specified persons; distinguished from the present case. The Court distinguished Chandichurn on the ground that unlike that case, the present grant did not prevent alienation of the estate nor impose the same kind of restraint; thus Chandichurn did not control this case.
Khajeh Solehman v. Nawab Sir Salimullah Decision reversing Khajeh Habibullah v. Khajeh Solemon; treated as showing that an annuity payable out of the estate can indicate intention to create a charge. The Court cited this Judicial Committee decision to show that an annuity payable out of the estate demonstrates intent to create a charge on the estate and supports validity of the corrody/annuity.
Khajeh Habibullah v. Khajeh Solemon Earlier decision reversed by Khajeh Solehman v. Nawab Sir Salimullah. Mentioned as the decision which was reversed, to illustrate the authoritative position reached in Khajeh Solehman.
Nawab Umjad Ally v. Mohumdee Referenced by Viscount Cave as consistent with the view that annuity charged on estate may be supported. Counted among the authorities aligning with the Judicial Committee's view that supported creation of charges/annuities on estate.
Lakshmi v. Madhawa Referenced by Viscount Cave as consistent with the line of supporting cases. Included as part of the authorities cited to justify recognition of charges/annuities on estate.
Khawja Muhammad v. Husaini Referenced by Viscount Cave as another supporting decision. Relied upon as part of the body of authority for the proposition that a charge may validly be created on estate for annuity.
Walsh v. Secretary of State for India House of Lords decision recognizing the principle that the doctrine of perpetuities may not apply to purely personal covenants (mentioned as a principle); the Court observed it was unnecessary to decide its applicability here. The Court expressly stated it was not necessary to consider whether Walsh (and Witham v. Vane) governed this case.
Witham v. Vane Paired with Walsh as recognizing inapplicability of perpetuities doctrine to purely personal covenants (House of Lords principle); not decided to be applied here. The Court noted it need not examine whether these House of Lords principles were applicable to the present case.
Re Hargreaves Referenced in connection with the principle that such an annuity may be personal estate and, in case of non-payment, relief may be sought against the settlor's estate. The Court said it was not necessary to examine the applicability of this principle to the present case.
Turner v. Turner Referable to the principle that an annuity may be treated in certain ways akin to personal estate and remedies by administration may be available on non-payment. Mentioned among authorities not necessary to consider for the decision rendered.
Wallaston v. Wallaston Also referenced with the same class of authorities about the nature of annuities and remedies; Court did not need to decide its applicability. Referenced but not examined in the context of the present decision.

Court's Reasoning and Analysis

The Court proceeded by reviewing both the facts and the applicable principles of Hindu law regarding corrodies/ekrarnamas and relevant decisions. It observed that:

  • The ekrarnama executed by Radhakanta Chowdhury in favour of Kamini Sundari created an undertaking to pay a monthly amount during her life and to make provision in specified contingencies for her husband or her son. Such instruments are known in Hindu law as corrodies or nibandhas and can amount to an incorporeal right of property if the donor intended to create such a right and did all that was practicable to transfer indicia of property.
  • The Court relied on textual authorities (as cited in Chalamanna v. Subbamma and other commentaries) to show corrody is recognised by Hindu jurists and is classed among rights akin to property.
  • Where an annuity is directed to be paid out of the testator's estate, that circumstance indicates an intention to create a charge on the estate; such a charge is supported under Hindu law as a corrody and under English law as a settlement.
  • The rule in Tagore v. Tagore (invalidity of gifts to unborn persons) was considered but the Court emphasised that Tagore itself contained language acknowledging potential exceptions for contractual or family provisions and that subsequent decisions (for example Nafar Chandra Kundu v. Ratnamala and Dineshchandra v. Birajkamini) had sustained gifts/bequests that might take effect in favour of persons born after the testator's death where Hindu law authority justified them.
  • The Court drew on Rajah of Ramnad v. Sundara (and a series of Judicial Committee decisions) to hold that an annuity charged on the estate in favour of a daughter and thereafter to her son born after the testator's death was operative in law and did not violate the rule against remoteness or perpetuities as applied to such family charges.
  • The Court distinguished cases (such as Chandichurn v. Sidheswari) where the grant imposed restraints on alienation or amounted to present assignments to non-existent persons, explaining that no such restraint or adverse consequence followed from recognising the present gift to family members.
  • The Court noted that it was unnecessary to consider certain other principles (for example, the House of Lords' treatment of perpetuities for purely personal covenants in Walsh v. Secretary of State for India and Witham v. Vane, or whether such an annuity is in the nature of personal estate subject to administration remedies) because the decision on the charge and the authorities relied upon sufficed to dispose of the appeal.

Holding and Implications

HOLDING: The appeal is allowed. The decree of the Sub-ordinate Judge is set aside and the decree of the Court of first instance is restored. Costs are awarded to the appellants here and in the lower Appellate Court.

Implications:

  • Direct effect: The plaintiffs (sons of Kamini Sundari) succeed in their suit for arrears of annuity; the earlier favourable decision (Court of first instance) is reinstated and the Sub-ordinate Judge's reversal is overturned. Costs follow the result.
  • Broader implications: The Court based its decision on established Hindu law concepts of corrody/ekrarnama and a line of authorities showing that an annuity charged on the estate in favour of family members, and thereafter to descendants potentially born after the testator's death, can be valid. The opinion does not purport to create a new principle of law; rather it relies on and applies existing authorities and distinctions (for example, distinguishing cases involving restraints on alienation). The Court explicitly declined to decide certain related doctrinal questions (such as the applicability of House of Lords decisions on perpetuities or the full consequences of treating the annuity as personal estate) as they were unnecessary for the disposition of the appeal.

    Jatindra Mohan Mandal v. Ghanashyam Chowdhury

    Mookerjee, J.:— This is an appeal by the plaintiffs in a suit for recovery of money claimed as annuity, against the first defendant, one of the representatives of the estate of their maternal grandfather. The Court of first instance decreed the suit. Upon appeal, the Sub-ordinate Judge has reversed that decision on the ground that the claim was not enforceable in law.

    Radhakanta Chowdhury, the maternal grandfather of the plaintiffs, took three wives in succession. By his first wife, Achalmani, he had no issue, and on the 5th December, 1890, he took the first defendant Ghanashyam as his adopted son. By his second wife, Jadabmani, he had two daughters, Syama Sundari and Kamini Sundari; the plaintiffs are the two sons of Kamini Sundari. By his third wife Manmohini, he had a daughter Brojogopini, and a son Madan Gopal who was born in 1876, and is the second defendant in this litigation. On the 19th February, 1872, he executed in favour of Kamini Sundari an ekrarnama duly attested and registered, which recited that by a previous testamentary disposition made on the 3rd May, 1871, he had provided a monthly grant of Rs. 10 for her maintenance for life after his death, and that as the amount was insufficient, lie desired to increase it by Rs. 2-8 a month. The ekrarnama then proceeded as follows:

    “I promise by this ekrarnama that from this date I will go on paying yon the aforesaid Rs. 12-8 per month during your lifetime. If, at the time of your death any son of yours be alive, then lie, being entitled to this allowance in absolute right, will be endowed with the power of gift and sale. But if you the sonless during the lifetime of your husband, then your husband will get the aforesaid allowance during his lifetime. Excepting a son, no daughter of yours will be entitled to the allowance. I, and on my demise, my heirs, sons, grandsons and others in succession, that is, those persons who will in succession come into possession of my moveable and immoveable properties, will abide by the said provisions of this ekrarnama. If I or my successors do not abide by the provisions of this ekrarnama, then you (or they) will get the allowance by establishment of the said right through Court. And after the expiry of the term of this ekrarnama, myself during my life or my successor on my demise will get the allowance mentioned in this ekrar. Farther, on payment of the allowance, month by month, I shall obtain a receipt signed by your husband during his lifetime. After the death of your husband, I (or they) shall obtain receipts signed by yourself. Further, if you relinquish the allowance mentioned in this ekrarnama without the consent of your husband, then the right of your son will not be destroyed, and from that time, though you be living, the said right will vest in your husband for his life.”

    On the 2nd July, 1877, shortly after the birth of his son, Radhakanta Chowdhury revoked the will of the 3rd May, 1871, and made a fresh testamentary disposition. This will recited the ekrarnama in favour of Kamini Sundari as also a similar ekrarnama in favour of Syama Sundari, and directed that the allowances fixed thereby would be received from his natural or adopted son according to the terms of the respective ekrar. The will made similar provision for annuity in favour of the daughter Brojogopini and her possible son, and added that a similar allowance would be paid, if any other daughter were born to her as also to her son. The estate was divided between the adopted son and the natural born son, the former to take a three annas share and the latter thirteen annas share. The adopted son was appointed executor and was directed to carry out the provisions of the will from the estate in his hands. On the death of the testator, the adopted son took out probate on the 6th August 1879. The annuity mentioned appears to have been paid to Kamini Sundari during her lifetime, and since her death, which took place in 1905, it has been realised by her sons by suit. Brojogopini also recovered the sums due to her as annuity by suits instituted from time to time. The present action was commenced by the sons of Kamini Sandari on the 15th December, 1917, for recovery of arrears due for a period of nine years and eleven months from 1907 to 1917. The defendant urged that the claim was not enforceable. The Courts below have disagreed upon the question of the legality of the claim. The Sub-ordinate Judge, reversing the decision of the primary Court, has held that as the plaintiffs, the sons of Kamini Sundari, were born after the death of their maternal grandfather, the grant of an annuity in their favour was really a gift to unborn persons, and was consequently void under the rule recognised by the Judicial Committee in Tagore v. Tagore . This view has been assailed by the appellants as erroneous in law.

    Annuities of this character were familiar to Hindu jurists and do not constitute by any means a novel conception in Hindu jurisprudence. Mr. Justice Muttusami Ayyar pointed out in the case of Chalamanna v. Subbamma (2), that a solemn and binding promise in this form, equivalent to a declaration of trust, was not unknown to the Hindu law. Jimutavahana states that corrody signifies what is fixed by a promise in this form: “I will give that in every month of Kartik”. (Dayabhaga, Chap. II, para. 13). Sreekrishna comments on this passage that corrody or nibandha signifies “anything which has been promised, deliverable annually or monthly or at any other fixed periods”. A reference to Chap. II, para. 9, shows that a corrody, according to the text of Yajnavalkya, (Book II, 121), is placed in the same category as other classes of property, namely, land and chattels. Raghunandan quotes this verse of Yajnavalkya in his Dayatattwa, Chapter II, para. 20 (ed. Golapchandra Sarkar, text p. 6, translation p. 12) and cites from the author of the Kalpataru the definition “a corrody is what is granted by the king and the like receivable periodically from a mine or similar fund”. To the same effect are the comments of Vijnaneswara in the Mitakshara, Chap. I, sec. 5, para. 4: “a corrody, so many leaves receivable from a plantation of betel-pepper or so many nuts from an orchard of areca see also the elucidation by the authors of the Subodhini and the Balambhatti (Mitakshara by Setlur, p. 646): and the explanation of nibandha taken from the Dipacalica in Jagannath's Digest, Cr. Colebrooke, 1798, Vol. II, p. 278; see also Balvantrav v. Purshotam , where the principal texts are set out in the judgment of Westropp, C.J The substance of the matter is that a grant of this character is a right of property, and as it is an incorporeal right, the test of validity in each case is whether, under the circumstances, the donor has sufficiently indicated an intention that the transfer should take effect as a corrody, and with that intention has done all that is practicable by way of transferring such indicia of property as may be in existence. In the case mentioned, a Hindu executed in 1845, a document called a sanad, attested by witnesses, whereby he agreed to pay to his sister, and, after her death, to her daughter, Rs. 10 per annum from the produce of an estate inherited by him from his maternal grandmother. It was ruled by Turner, C.J and Muttusami Ayyar, J. that the grantor, who had full power over his share, intended to create a charge on the produce of the estate he had inherited, and that the charge would be supported under the Hindu law as a corrody and under the English law as a settlement.

    In such circumstances, there is no room for the application of the rule enunciated in Tagore v. Tagore as to the invalidity of a gift to an unborn person. That rule, it is well known, has its limitations. The decisions in Nafar Chandra Kundu v. Ratnamala and Dineshchandra v. Birajkamini (3), laid stress upon an important passage in the judgment of the Judicial Committee where Mr. Justice Willes observed as follows:

    “Their Lordships, adopting and acting upon the clear general principle of Hindu law that a donee must be in existence, desire not to express any opinion as to certain exceptional cases of provisions by way of contract or of conditional gift on marriages or other family provisions for which authority may be found in Hindu law. A passage indicative of such authority, may be found in the text of Vyasa and the comments thereon by Jagannath in his Digest (translated by Colebrooke, Book II, Chapter IV, section 2, paragraph 30. Reference may also be made to paragraphs 49 to 52 which treat of valid irrevocable gift)”

    In the two cases mentioned, a bequest to a would be daughter-in-law was sustained, though the bequest, when made, might possibly have to take effect in favour of a girl who might be born after the death of the testator. On the authority of the decisions in Nafar v. Ratnamala and Dinesh v. Biraj , a Request, for the marriage expenses of great grandsons and great-grand-daughters of the testator, who were born long after his death, was upheld without question in Upendra v. Purendra .

    The passage from the judgment of the Judicial Committee in Tagore v. Tagore (4) mentioned above was again relied upon in the case of Rajah of Ramnad v. Sundara (5), where an annuity in favour of a junior member of a family and his descendants from generation to generation was upheld as not obnoxious to any rule of Hindu or English law against perpetuities. This view was fortified by reference to the decisions of the Judicial Committee in Narayana v. Madhawa (6), Ahmad Hossein v. Nihaluddin (7), Karim v. Heinrichs (8), Azizunnissa v. Tassadduk Hussain (9). The decision of the Judicial Committee in Chandichurn v. Sidheswari (10) was distinguished on the ground that the grant in that case imposed a restraint upon alienation contrary to the principles of Hindu law; the grant was either a present assignment to persons not yet in existence, subject to a suspensive condition which might prevent its taking effect at all or for generations to come, or else the grant was in essence a covenant running with the estate and binding its possessor to give the villages to those person? in the event specified. The Judicial Committee held that in either view the grant prevented the owner from alienating his estate discharged of such future interest. No such results follow from, recognising the present gift, which moreover is not in favour of strangers but of members of the family. The decision of the Madras High Court in Rajah of Ramnad v. Sundara has been affirmed by the Judicial Committee, Raja of Ramnad v. Sundara .

    In answer to the contention that the grant was a, creation of a kind of perpetuity which the law did not allow or an attempt to create a permanent relation which was impossible of creation, Lord Phillimore observed that whatever might be said if the agreement lay in covenant, seeing that it lay in charge, there was no difficulty in making it perpetual, as long as there were lineal or collateral heirs. It is worthy of note that it was conceded in course of argument that the contention of the appellant could not prevail if the decision in Balvantrav v. Purshotam , was applicable. There can be no doubt that, in the case before us, the annuity was directed to be paid out of the estate of the testator, and this shows an intention to create a charge thereon; see the decision of the Judicial Committee in Khajeh Solehman v. Nawab Sir Salimullah which reversed the decision in Khajeh Habibullah v. Khajeh Solemon . Viscount: Cave stated there that the view taken by the Board was in accordance with the decisions in Nawab Umjad Ally v. Mohumdee , Lakshmi v. Madhawa , Khawja Muhammad v. Husaini , and Raja of Ramnad v. Sundara . We are consequently of opinion that on principle as well as on the authorities, the annuity payable out of the estate (and consequently charged thereon) to the daughter and after her death to her son, was operative in law, even though the son might be born after the death of the testator; a grant of this description does not violate the rule against remoteness.

    In the view we take, it is not necessary for us to consider whether the principle of inapplicability of the doctrine of perpetuities to purely personal covenants recognised by the House of Lords in Walsh v. Secretary of State or India and Witham v. Vane governs the case before as. Nor need we examine the applicability of the principle that such an annuity is in the nature of a personal estate, but may be made descendible in the same manner as real estate, and that in case of non-payment, but not otherwise, relief may be sought by administration of the estate of the deceased settlor when provision may be made for it out of the assets of the deceased: Re Hargreaves , Turner v. Turner , Wallaston v. Wallaston .

    The result is that this appeal is allowed, the decree of the Sub-ordinate Judge set aside, and that of the Court of first instance restored, With costs here and in the lower Appellate Court.

    Chotzner, J.:— concurred.

    B.M.S
    Appeal allowed.

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    Jatindra Mohan Mandal v. Ghanashyam Chowdhury
    (Aug 14, 1922)