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Nakymo Dewani v. Jerang Dewan
Factual and Procedural Background
This is an appeal by the plaintiffs against the decision of the District Judge of Darjeeling and Dinajpore dated 1 December 1913, which dismissed the plaintiffs' suit. The suit sought to set aside a compromise entered into in an earlier suit, on the ground that the compromise was in contravention of Section 462 of the Code of Civil Procedure (CPC) as then in force.
The dispute arises from a family estate governed by the customary (Buddhist) law of the State of Bhutan. Key family facts set out in the opinion: Lochho Tonqui had two sons, Ghuboo and Dudook (also referred to as Chuboo/Dudock in the record). Ghuboo received a grant of 74,016 acres in Darjeeling for services to the British Government. Chuboo (died 1866) left a son, Rechak Dewan, and a daughter Enden. Rechak (died 26 August 1899) married twice; his first wife was Nakymo Dewani (plaintiff 1), and he left two daughters by Nakymo: Ishay Chhodon and Tashi Lhamoo (the other plaintiffs). Chuboo's brother Dudock left a son Phurboo, whose sons included Jerang Dewan and a younger son Gulchhan (died May 1903).
Relevant procedural and administrative events included: a government lease dated 10 August 1877 in three equal shares to Rechak, Tendok Palgar (manager) and Phurboo; acquisition by the Forest Department of 44,000 acres in 1881; a partition on 17 July 1899 between Rechak and Phurboo allocating Darjeeling properties to Rechak; and a government lease of about 19,000 acres to Rechak on 10 March 1893.
After Rechak's death disputes arose from Land Registration proceedings. Nakymo applied to the Court of Wards to take charge of the estate; on 7 November 1905 the Court of Wards declared Nakymo a disqualified proprietor and took charge of the property. On 17 February 1906 the Court of Wards declared the two daughters to be minors and, on 7 March 1906, declared them heirs of Rechak; thereafter they were wards under the Court of Wards. On 5 February 1907 Jerang Dewan sued Nakymo and the two minors; that proceeding resulted in a compromise which the Court of Wards approved (as evidenced by the petition of compromise and an annexed Board of Revenue letter).
Legal Issues Presented
- Whether a compromise entered into by the Court of Wards on behalf of a minor ward required the approval of the Civil Court under Section 462 of the Code of Civil Procedure (as contended by the plaintiffs), and, if so, whether the absence of such approval rendered the compromise voidable as against the minors.
- Whether the compromise could be set aside on the ground of alleged fraud on the Court of Wards (i.e., that false information about succession under Bhutan law was provided to induce the Court of Wards to approve the compromise).
Arguments of the Parties
Appellants' (Plaintiffs') Arguments
- The compromise in the earlier suit was entered into without obtaining the approval of the Civil Court as required by Section 462 of the CPC (as then in force), and therefore is voidable as against the two minor wards (Ishay Chhodon and Tashi Lhamoo).
- An allegation of fraud: it was alleged that the Court of Wards was deceived into approving the compromise by false information regarding the course of succession under Bhutan law.
Respondents' / Court of Wards' Position (as described in the opinion)
- The Court of Wards Act (notably Section 18 and Section 51) authorises the Court of Wards to sanction leases, sales, mortgages and "other acts" for the benefit of a ward, and designates the manager or Collector as the statutory next friend or guardian in suits by or against minor wards—thereby empowering the Court of Wards to enter into compromises for wards.
- The Code of Civil Procedure, as amended (see the wording of Section 464 after 1888), contains a saving that the chapter should not derogate from any local law relating to suits by or against minors; thus the Court of Wards' statutory authority was not displaced by Section 462 CPC.
- With respect to the fraud allegation, the Court of Wards had before it a statement from the Deputy Commissioner, and referred the matter to the Legal Remembrancer before authorising the compromise; there was therefore no adequate evidential basis for a finding of fraud to set aside the compromise.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court's analysis proceeded in two main strands corresponding to the legal issues framed by the parties.
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Interpretation of statutory framework (Court of Wards Act vs. Code of Civil Procedure):
- The Court examined Section 18 of the Court of Wards Act, which permits the Court of Wards to sanction leases, farms, mortgages, sales and to "direct the doing of all such other acts as it may judge to be most for the benefit of the property and advantage of the ward." The Court construed this provision as clearly authorising the Court of Wards to compromise a claim on behalf of a ward (minor or adult) when it judges it to be for the ward's benefit.
- The Court then considered Section 51 of the Court of Wards Act, which makes the Collector or manager the statutory next friend or guardian in suits by or against a minor ward—thereby removing from the Civil Court the duty of appointing a guardian ad litem for such wards.
- The court contrasted these provisions with the plaintiffs' contention that Section 462 of the CPC required Civil Court approval of any compromise affecting minors. The Court noted that Section 464 of the CPC (as amended in 1888) states that nothing in the chapter shall derogate from the provisions of any local law for the time being in force relating to suits by or against minors. The learned Judge below (and the present court) held that to read Section 462 as imposing a Civil Court sanction requirement upon compromises entered under the authority of the Court of Wards would, in effect, derogate from the Court of Wards Act and impair the statutory powers conferred by Sections 18 and 51.
- On this statutory analysis the Court agreed with the trial judge that the plaintiffs' contention would unduly limit the Court of Wards' statutory authority and therefore was not correct.
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Allegation of fraud and assessment of the evidence:
- The Court addressed the plaintiffs' separate allegation of fraud (that false information about succession under Bhutan law had been supplied to the Court of Wards to induce approval of the compromise). The Court observed that no evidence was led identifying what the fraudulent misrepresentation was or proving that the Court of Wards had been deceived.
- The record showed that the Court of Wards had before it a statement from the Deputy Commissioner and had referred the papers to the Legal Remembrancer for advice; the Court inferred that the Court of Wards acted after due consideration and advice, not on false pretences.
- On the substantive succession question, the available evidence raised doubt whether the plaintiffs (female heirs) had any right of succession under Bhutan customary law. The evidence tended to show a system of agnatic succession (excluding females), which, if correct, meant Jerang Dewan would be the rightful successor to Rechak's properties. The statement of the Maharaja of Sikkim read in evidence was described as vague and not determinative.
- Given the doubt about the plaintiffs' succession rights, the Court found that the compromise—by which the minors received 2,000 acres, a Darjeeling property of value and payment towards the deceased father's debts (Rupees 64,000)—was one which the Court of Wards could properly enter into to secure the best terms obtainable for the wards, even if they had no full legal right to the property.
- Overall, the Court concluded that the fraud allegation was unsupported by the evidence and that the Court of Wards had acted within its jurisdiction and for the benefit of the wards in approving the compromise.
Holding and Implications
APPEAL DISMISSED.
Consequences and immediate effect:
- The decision of the learned District Judge (dismissing the plaintiffs' suit) is affirmed.
- The appeal fails and is dismissed with costs; the court ordered two sets of costs to the two sets of respondents.
Broader implications:
The opinion rests on statutory interpretation of the Court of Wards Act and the relevant provisions of the Code of Civil Procedure as amended; it concludes that a Court of Wards may, under its statutory powers, enter into compromises on behalf of minor wards without a separate sanction by the Civil Court under Section 462 CPC in circumstances where to require such sanction would derogate from the Court of Wards Act. The opinion does not purport to establish a novel precedent beyond the application of that statutory interpretation to the facts of this case, and no wider rule or declaration beyond these conclusions is stated.
Fletcher, J.:— This is an appeal preferred by the plaintiffs against the decision of the learned District Judge of Darjeeling and Dinajpore, dated 1st December 1913, dismissing the suit. The suit was brought for the purpose of setting aside a compromise that had been entered into in a former suit, which is said to have been in contravention of Section 462 of the CPC, which was then in force. The facts out of which the case arises are as follows:—One Lochho Tonqui had two sons Ghuboo and Dudook. The parties came from the State of Bhutan and the law applicable to the parties is the Buddhist or the Customary Law as is recognized and which is in force in the State of Bhutan. Ghuboo, who seems to have rendered important political services to the British Government, was awarded for such services a grant of 74,016 acres of land in the District of Darjeeling. Chuboo died in 1866 having been predeceased by his brother Dudock. Chuboo left one son named Rechak Dewan and a daughter named Enden. Rechak died on 26th August 1899 having been married twice, his first wife being Nakymo Dewani, who is plaintiff 1 in the present suit, and the other wife being one Gudenputty who died in 1903 without issue. Nakymo has had two children both of whom are daughters, namely, Ishay Chhodon and Tashi Lhamoo, who are the other plaintiffs. Chuboo's brother Dudock left an only son Phurboo. Phurboo had two sons, the eldest being Jerang Dewan. There seems to have been some controversy at the earlier stage of these proceedings and in the former suit as to whether Jerang was, in fact, a son of Phurboo, but the fact is that he claimed to be so and, so far as the evidence goes, he was recognized as being the son of Phurboo. There was another younger son of Phurboo and that youngor son was named Gulchhan. He died in May 1903.
2. The dispute arose as follows:—On the 10th August 1877, after Chuboo's death, the Government made a least of this property to Rechak, one Tendok Palgar who was then the manager of the property and Phurboo in three equal shares. The Forest Department acquired 44,000 acres out of this property in 1881 and, on 17th July 1899, there was a partition between Rechak and Phurboo, Phurboo getting all the properties in the State of Sikkim and Rechak getting the properties in the District of Darjeeling.
3. On 10th March 1893, the Government granted a lease of 19,000 odd acres of land to Rechak. Then after the death of Rechak, there having been certain disputes in the civil Court which arose out of certain Land Registration proceedings, Nakymo applied to the Court of Wards to take charge of the estate. The Court of Wards at first intimated that Jerang Dewan must also be a party to the petition. However, in the result on 7th November 1905 the Court of Wards declared Nakymo to be a disqualified proprietor and took over charge of the property. On 17th February 1906, the Court of Wards declared the two daughters of Nakymo, namely, Ishay Chhodon and Tashi Lahmoo to be minors and and, on 7th March of that year, the Court declared them also to be the heirs of Rechak Dewan. From 17th February 1906, the two minors Ishay Chhodon and Tashi Lahmoo were disqualified proprietors and wards under the Court of Wards. Next, on 5th February 1907, Jarang Dewan instituted a suit against Nakymo and the two minors Ishay Chhodon and Tashi Lahmoo. In the course of that proceeding, a compromise was arrived at. That compromise was, as it appears from the petition of compromise and the letter of the Board of Revenue annexed to that petition, approved of by the Court of Wards. The first point that has been argued both here and in the Court below and which apparently is the only point argued in the case is this. That the approval of the Civil Court not having been taken to that compromise under the provisions of Section 462 of the CPC then in force, the compromise is voidable as against the two minors. That depends purely on an examination of the sections in the Code of Civil Procedure and in the Court of Wards Act. The Court of Wards Act contains two sections that are material to the matter. The first is the 18th section. That provides that
“the Court may sanction the giving of leases or farms of the whole or part of any property under its charge, and may direct the mortgage or sale of any part of such property, and may direct the doing of all such other acts as it may judge to be most for the benefit of the property and advantage of the ward.”
4. The section by itself clearly authorises the Court of Wards to compromise a claim on behalf of the ward, whether a minor or an adult ward, if the Court judges it to be most for the benefit of the property or the advantage of the ward. The other section is S. 51. That provides that, in all suits instituted by or against a minor ward, the Collector of the District or the manager shall, as the case may be, be the next friend or the guardian of the minor for the suit. That is how the matter stands under the Court of Wards Act. It is said that the Code of Civil Procedure has placed an additional restriction on the Court of Wards by further enacting under the terms of S. 462 that any compromise entered into by the Court of Wards on behalf of a minor litigant requires also the approval of the Civil Court. That turns purely on a consideration of the various sections that are in the Code of Civil Procedure. It is, however, a matter to be noticed that S. 464 of the Code as originally passed by the legislature clearly did not require the sanction of the Civil Court to a compromise entered into by the Court of Wards. It is said, however, that the alteration in the wording; of S. 464 which was effected in the year 1888, altered that provision. S. 464, as it ran after the amendment of 1888, was in these terms:
“Nothing in this chapter shall be construed to affect or in any way derogate from the provisions of any local law for the time being in force relating to suits by or against minors.”
5. The view that the learned Judge took in the Court below was that to give the effect that was suggested by the plaintiffs to the provisions of S. 462 would, in fact, derogate from the provisions of the Court of Wards Act so far as suits relating to minors under their charge were concerned. The argument is as follows: Section 51 of the Court of Wards Act, takes away from the Civil Court the duty of appointing a next friend or guardian ad litem of a minor and appoints the manager under the Court of Wards as the statutory next friend or guardian. Clearly, therefore the Civil Court has nothing to do with the appointment of a next friend or guardian. Then S. 18 of the same Act gives power to the Court of Wards to compromise generally, which includes both suits in and claims out of Court, and to cat down the provisions of S. 18 by stating that when the ward is a minor, no compromise in a suit should be binding on the minor ward unless the approval of the Civil Court has been obtained as mentioned in the Code of Civil Procedure, would derogate from the provisions contained in Section 18 of the Court of Wards Act I am of opinion that argument is well-founded; to hold that the sanction of the Civil Court to every compromise, that is entered into under the authority and by the direction of the Court of Wards on behalf of a minor under their charge, would seriously affect, or derogate from, the provisions contained in the Court of Wards Act. This point, as appears from the judgment of the Court below, was the only point argued before the learned Judge, because the learned gentleman who conducted the case in that Court on behalf of the plaintiffs stated that he rested his case solely on the issue concerning vulnerability of the decree of 12th March 1908 and did not invite the Court to decide the issue of title by succession.
6. The case has also been attempted to be argued before us on the question of fraud, the fraud alleged being that the Court of Wards were deceived in giving their consent to the compromise by having been given false information relating to the course of succession under the Bhutan law. It is almost sufficient to deal with that case by stating that no evidence was given in the case as to what the fraud practised on the Court of Wards was. The Court of Words had before them, as appears from the record, a full statement tram the Deputy Commissioner as to what was proposed to be done and, before acting on the information and authorizing the compromise they took the precaution of sending all the papers that they had before them to the Legal Remembrancer, asking him as to what ought to be done with regard to the matter and it was only when the Legal Remembrancer had dealt with the matter fully that the Court authorised the compromise. An allegation like this seems to be wholly insufficient to disturb the act of the Court regularly and properly entered into. Moreover, the evidence that we have in this case raises a serious doubt as to whether the plaintiffs under the Bhutan law had the fight of succession to Rechak's properties. There is a considerable body of evidence, notwithstanding some statement more of less loose of His Highness the Maharaja of Sikkim, as to the course of descent, which would go to show that the Court of succession was not through females but was confined to agnatic relationship. In that view, it is not denied that Jerang Dewan would be wholly entitled to succeed to Rechak's properties after his death. The statement of the Maharaja of Sikkim that has been read to be as seems to vague and nothing definite can be drawn from that. I think that the evidence does show that there was clearly a case in which the Court could enter into the compromise so as to secure the best terms possible for the two minors and there is nothing to suggest that better terms could have been obtained. The alleged fraud is wholly unproved and the gentleman conducting the case in the Court below stated that he did not intend to ask the Court for a decision upon the issue of title by succession. If the Court of Wards acted to the best of their judgment to secure for the two minors, out of the property to which they had no right at all, 2,000 acres of land and a property of some value in Darjeeling plus the payment of their father's debts, which amounted to Rupees 64,000, I think the compromise was highly advantageous to the wards that the Court had under their charge. There is no evidence to support the case of fraud as set up in para. 23 of the plaint, namely, that a fraud of some sort was practised on the Court of Wards to get them to approve of that compromise. No evidence was given in support of such a case, nor do I think that there is any truth in the story. The Court recognized that these minors had in, fact, under the terms of the law by which they were governed, no right to their father's property and they entered into the compromise to secure the best terms they could so that something might be got for these female wards. Whatever might be the state of affairs, I am quite clear that the evidence adduced is wholly insufficient to establish a case of fraud practised on the Court of Wards in the manner suggested. I think the result arrived at by the learned District Judge is correct. The present appeal therefore fails and must be dismissed with costs. There will be two sets of costs to the two sets of respondents.
Richardson, J.:— I agree.
V.B/R.K
7. Appeal dismissed.
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