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Hafiz Wazir Ali And Another v. Ladley Begum And Another Opposite Party.
Factual and Procedural Background
This judgment arises from a vendor and purchaser summons initiated by the purchasers. The purchasers posed several questions challenging whether the vendors could convey a good and marketable title in light of three points raised in the summons: (1) that at the date of the application and order for sale one Dularu, described as a minor, was in fact a major and had a preferential right to be appointed mutwali, (2) the absence of title deeds other than the wakf deed of 1901 (the root of title), and (3) the proposed application of the purchase money.
The vendors are two persons appointed by the Court as mutwalis of the wakf estate to which the property belongs; the purchaser party to the proposed conveyance included Mr. O.U. Ahmad, an officer of the Court. The wakf was created by a registered deed in 1901 by Khaja Wazir Ahmad. His son Khaja Noor Muhammad acted as mutwali until his death in 1928. Members of the founder's family (grandchildren through a daughter) became wards of their maternal grandfather Munshi Abdul Jalil; Jalil was appointed guardian of their secular and wakf property on 8 August 1928 and later sought and obtained court liberty to mortgage wakf properties for Rs. 45,000. Jalil died before executing the mortgage. Subsequent petitions and applications to appoint guardians and mutwalis followed; there was a petition (filed 28 May 1937) recognising Dularu as having a preferential right to mutwaliship but it is disputed whether Dularu was then a major.
The petition was presented to the court (the judge who gave this judgment). The court directed Mr. Ahmed (appointed as Referee) to enquire into the wakf estate's indebtedness to Abdul Jalil's estate. The court refused to appoint guardians of the infants as mutwalis and instead appointed Ladley Begum as mutwali and Mr. Ahmed as co-mutwali. Mr. Ahmed reported that the wakf estate could legitimately be debited to the extent of Rs. 21,000. A second order for sale was made on 11 June 1937, and the agreement for sale under consideration was entered into on 27 August 1937. The present summons challenges the vendors' ability to convey title on the three issues stated above.
Legal Issues Presented
- Whether the vendors can give a good and marketable title given that at the date of the applications and order for sale Dularu, described as a minor, was actually a major and allegedly had the right to be appointed mutwali in preference to the vendor who was appointed.
- Whether the absence of title deeds, other than the wakf deed of 1901 (the root of title), prevents the vendors from conveying a good and marketable title.
- How the purchase money should be applied (questions 6 and 7 of the summons) and whether the purchasers are entitled to directions or control over that application.
Arguments of the Parties
The opinion does not contain a detailed account of the parties' legal arguments.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court addressed each of the three principal points in turn and explained the legal reasoning that led to its conclusions:
1. Position of Dularu and the validity of the sale
- The court observed that there is no absolute legal right to be appointed mutwali and that the appointment of a mutwali is not a proprietary right in the sense of affecting title to wakf property.
- The court held that the order authorising sale, made by the Court, protects the purchaser; the possibility that another person (Dularu) might have been preferred for appointment as mutwali does not invalidate the sale carried out by those actually appointed.
- Even if Dularu could claim a preferential appointment as mutwali, the court is not bound to appoint him and, even if appointed later, that would not affect the sale by those appointed by the Court.
- The court noted there was no suggestion that the sale order had been obtained by fraud and stated that, had the facts regarding Dularu been presented differently, the order made would in any event have been the same; consequently Dularu is not a necessary party to the conveyance.
- The judge acknowledged that orders for sale or mortgage of wakf property have in other cases been made without proper investigation, sometimes with fatal consequences, and for that reason explained the circumstances fully despite not being bound to do so.
2. Title and title deeds (root of title 1901 wakf deed)
- The court identified the registered wakf deed of 1901 as the root of title and observed that the founder's title cannot now be questioned: the property has been treated and dealt with as wakf for 36 years and appears as wakf in Corporation records.
- Regarding dispositions since 1901, the court reasoned that any valid disposition of wakf property requires a court order; dispositions made without such an order are of no effect.
- Possession has been with the mutwali or person acting as such throughout.
- Any sale or mortgage other than an equitable mortgage would require registration, and absent a court order and registration such encumbrances would not be effective.
- Equitable mortgages by deposit of title deeds, while not requiring registration, still require a court order in the wakf context; additionally, the court stressed that no estoppel can operate against the wakf.
- Given these considerations, and that the last title deed is the registered wakf deed being made over by the vendors, the court concluded that notwithstanding the points raised the vendors were in a position to make a good marketable title.
3. Application of the purchase money
- The court regarded the question of application of purchase money as not a concern of the purchasers, strictly speaking, but nevertheless provided directions to the mutwalis on application of the proceeds.
- Specifically, after deducting expenses, Mr. Ahmed was directed to apply Rs. 21,000 directly in reduction of the mortgage(s) on No. 24, Buddhu Ostagar Lane (the property associated with Abdul Jalil's estate).
- Any balance was to be either invested in Government securities or retained for the present, and secured absolutely for the maintenance of the mosque.
- Mr. Ahmed was to consult the Wakf Commissioner about taking custody of the wakf fund and assuming management, and upon receipt of the Wakf Commissioner's reply further directions would be given.
4. Costs
- The court observed that, in the normal course, because the purchasers' objections were unfounded, it would have ordered the purchasers to pay the costs of this application.
- However, given the unusual circumstances of the matter, the court made no general order as to costs; it directed that the mutwalis obtain their costs out of the sale proceeds.
- The court recorded appreciation for Mr. Biswas (who acted for the vendors at special request and kept costs down) and gave particular thanks to Mr. Ahmed for his extensive assistance to the Court.
Holding and Implications
The Court held that the vendors are able to convey a good and marketable title; the order for sale was upheld and directions were given for the application of the purchase money and for recovery of the mutwalis' costs from the sale proceeds.
Direct consequences and practical implications:
- The purchaser is protected by the Court's order for sale; the potential claim by Dularu to be appointed mutwali (even if he were a major at the relevant time) does not invalidate the sale made by the Court-appointed mutwalis.
- The registered wakf deed of 1901 remains the root of title; the vendors, as Court-appointed mutwalis and under the order for sale, can convey title notwithstanding the absence of other title deeds.
- Mr. Ahmed (as co-mutwali) was directed to apply Rs. 21,000 of the sale proceeds to reduce the mortgage(s) on No. 24, Buddhu Ostagar Lane; the balance is to be invested or retained for maintenance of the mosque, with the Wakf Commissioner to be consulted about custody and management of the fund.
- The mutwalis may recover their costs from the sale proceeds; no order was made requiring the purchasers to pay costs generally given the unusual nature of the matter.
- No broader precedent was announced or discussed beyond the immediate directions and conclusions; the decision addresses the rights and protections created by the Court's order in the specific circumstances of this wakf administration and sale.
Order accordingly.
JUDGMENT
1. This is a vendor and purchaser summons, taken out by the purchasers. The questions asked are somewhat peculiar in form. The real question is whether the vendors are in a position to convey a good marketable title, notwithstanding three points raised. The first and principal point is that indicated in questions 3, 4, 5 and may be formulated as follows: Can the vendors give a good and a marketable title, having regard to the fact that at the date of the applications and order for sale, one Dularu who was described as a minor, was actually a major, and had the right to be appointed mutwali, in preference to the first vendor, who was actually appointed. The second point is based upon the absence of title deeds, other than the wakf deed of 1901, which is the root of title, questions in the summons 1 and 2. The third point relates to the application of the purchase money, questions 6 and 7 of the summons. These are hardly questions to be asked by a purchaser, for, they cannot be regarded, under any view, as affecting title, but in the circumstances of this case which are peculiar, I shall probably express some opinion.
2. The vendors are two persons appointed by the Court mutwalis of the wakf estate, to which the property in question belongs, and who have been given liberty by the Court to sell the property. The second party to the proposed conveyance is Mr. O.U Ahmad, an officer of the Court. As already indicated, the circumstances under which the said order came to be made, are somewhat peculiar and I set out such as are essential, to explain my opinion. In 1901, by a registered deed, one Kbaja Wazir Ahmad made a public wakf of his properties, including those with which we are concerned. He appointed mutwalis and was himself the first mutwali.
3. His eldest son, Khaja Noor Muhammad continued as mutwali until his death on 23rd May 1928. Khaja Wazir Ahmad, the founder, had a daughter Mariunnessa; her son Ali Ahmad Khan, who died in October 1927 married the daughter of Munshi Abdul Jalil, and left him surviving four minor children Ladley Begum, Malka Bibi, Akhtari Bibi and Sultan Ahmed Khan alias Dularu. From the year 1928, these children went to live with their maternal grand-father Abdul Jalil at his house No. 24-1B, Buddhu Ostagar Lane and were, from that date until his death on 12th June 1936, maintained by him. On 8th August 1928, Jalil was appointed guardian of the minor's property, both secular and wakf, the wakf property being apparently regarded by the Court as a different species of property belonging to the minors.
4. As often happens with regard to wakf property, in what might be called, backward localities, many attempts were made by outsiders to obtain possession of or destroy the wakf property and Jalil was engaged in expensive litigation, both as complainant, plaintiff and defendant, for the purpose of saving the wakf estate. There is no doubt, also, as again is common among certain sections of the community, that the wakf estate was in some respects looked upon as private property. It is to be remembered that this wakf was made before the Act of 1913, whereby wakf-al-aulad were made legal. In the end Jalil appears to have succeeded. On 8th August 1935, Jalil having filed his accounts as guardian, showing the expenditure above-mentioned, obtained an order from the Court, giving him liberty to mortgage the wakf properties for Rs. 45,000. He had, before this, mortgaged his own property in Ostagar Lane. Jalil died before executing the mortgage and on 26th June 1936 his two children Ameer Ali and Kulsum Bibi obtained an order, appointing them guardians of the secular and wakf properties of the infants, subject to furnishing seourity and for similar liberty to mortgage. They obtained this order but were unable to find security and Ameer Ali was apparently unwilling to act. Hence on 28th May 1937, a further petition was filed by Kulsum Bibi and Ladley Begum, asking to be appointed, guardians and mutwalis pending the minority of Dularu, Dularu therefore being recognised as having a preferential right to mutwaliship. They also asked for liberty to mortgage the wakf property for Rs. 45,000 and to sell a hut of small value, admittedly the secular estate of the minors. It is now said that at the date of this application Dularu was a major.
5. The petition was presented before me. It was clearly necessary before making any order, in the first place, that the consent of the Wakf Board should be obtained and throughout these proceedings the Wakf Board Commissioner has been informed of the several steps taken, which have his approval. I was pressed by counsel not to interfere with the orders of the Court previously made, but the position appeared to me far from satisfactory and in the circumstances I directed Mr. Ahmed as Referee to enquire and report upon the amount in which the wakf estate might properly be regarded as indebted to the estate of Abdul Jalil. I refused to appoint any guardians of the infants as mutwalis, but appointed the eldest of the children, whom I had seen in Chambers and who appeared to me to be intelligent, Ladley Begum to act as mutwali. I appointed Mr. Ahmed as co-mutwali, as it is quite obvious that the estate required the control of the Court. It is quite true that the Court did not consider whether Dularu was or was not a major, but in point of fact, it would have made no difference. The management of the legal affairs of the estate was thus placed in the hands of Mr. Ahmed; Ladley Begum and her family remaining in charge of the income and Ordinary management.
6. Mr. Ahmed having reported and found that the wakf estate could legitimately be debited to the extent of Rs. 21,000 and no more, I made a second order for sale on 11th June 1937, and it is in pursuance of this order that the agreement for sale now being considered was entered into on 27th August 1937. With regard to the order of 11th June and indeed to the whole administration of this estate by the Court, since the matter came before me, it is obvious that the Court was attempting to make the best of difficult situation. The wakf is in terms purely public. In point of fact there is one small mosque and this has to be maintained. Little or nothing has been spent on it for a great many years. The descendants of the founder have nothing left, but a small hut. They have been, and are being housed and maintained by the descendants of Jalil, in the house which Jalil had mortgaged, as has been found, for the purpose of saving the wakf estate. In these circumstances, the order made appeared to the Court the best solution of a social and legal problem. I now turn to the three points hereinbefore indicated.
1. The first point, Dularu. — It has not been suggested that in no circumstance can the Court give leave to sell wakf property, not that such leave can only be given in a suit. In my opinion, the order of the Court given, protects the purchaser, and the fact that some other person or persons might have been appointed mutwali in the place of those who were actually appointed, makes not the slightest difference. There is in law no absolute right to be appointed mutwali and it is not a matter of property. It is quite possible, see (Q. 5,) for Dularu to claim to be appointed mutwali in preference to his sisters. The Court is not bound to appoint him. Even if he succeeds, it will not affect the sale by those who have actually been appointed by the Court. In this case there is further no question of the order having been obtained by fraud. The order made by the Court would have been the same, had the facts as to Dularu, whatever they are, been brought to its notice. Dularu is not a necessary party to the conveyance. I am aware that orders for sale and mortgage of wakf property have been made by the Court without investigation and with fatal consequences. It is for this reason that, although in no way bound to do so, I have fully explained the circumstances in which, and the reasons for which, the order for sale was made.
2. Title deeds.—The root of title is the wakf deed of 1901. With regard to the founder's title, it appears to me that cannot now be questioned. The property has been treated and dealt with as wakf for the last 36 years. It appears as wakf in the Corporation records.
7. With regard to title since 1901 the position appears to me as follows: No disposition could be validly made without the order of the Court. Any disposition made otherwise is of no effect. The possession has been throughout with the mutwali or person acting as such. Any sale or mortgage other than equitable mortgage would require to be registered. It seems to me that the only possible encumbrance would be a long term mort gage and, as already stated, without order of the Court and registration, no such encumbrance would be effective. With regard to equitable mortgage by deposit of title deeds, although, of course, registration does not apply, the order of the Court is again essential, and in the second place, no estoppel can operate against the wakf. The last title deed is the registered deed of wakf which is being made over by the vendors; I consider therefore that notwithstanding the two points raised, the vendors are in a position to make a good marketable title.
8. With regard to the third point, the disposal of the purchase money, this, in my opinion, is a matter which concerns the purchasers not at all. I propose however to give to the mutwalis directions on the following lines: Of the purchase price, after deducting expenses, Mr. Ahmed will apply the sum of Rs. 21,000 directly in reduction of the mortgage or mortgages on No. 24, Buddhu Ostagar Lane. The balance he will either invest in Government securities or for the present retain. This balance will be secured absolutely for the maintenance of the mosque. Mr. Ahmed will communicate with the Wakf Commissioner, and ask him whether he is willing to take custody of the wakf fund and take over the management of this wakf and upon what terms. Upon receipt of the Wakf Commissioner's reply further directions will be given.
9. As to costs, in the normal course the purchasers' objections being unfounded, I should have ordered them to pay the costs of this application. As this is somewhat an unusual matter, I will make no order as to costs, save that the mutwalis will obtain their costs out of the sale proceeds. I gather that Mr. Biswas who has acted for the vendors at the special request of Mr. Ahmed, had; kept down the costs in every possible way and he deserves the thanks of the Court for his assistance. My thanks are however mainly due to Mr. Ahmed who has, in this matter, taken an infinite amount of trouble and spent an infinite amount of his own time, in order to assist the Court in giving effect to its directions.
B.D/R.K
10. Order accordingly.
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