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Ram Chander Prasad And Others v. Sital Prasad And Others
Structured Summary of the Opinion (Ray, J.)
Factual and Procedural Background
Two second appeals, No. 717 and No. 718, were heard together. Second Appeal No. 717 was preferred by Munshi Ram Chander Prasad (defendant 1) and relates to Title Suit No. 160/30 of 1939/1941 in the Court of the Additional Munsif, Gopalganj. Second Appeal No. 718 was preferred by Mangla Prasad (uncle and heir of Bacha Babu, defendant 1) and Jai Narain Pandey (defendant 2) and relates to Title Suit No. 186/31 of 1939/1941 of the same Court. Both title suits (160 and 186) were instituted under Order 21, Rule 103 of the Code of Civil Procedure and arose out of miscellaneous execution objections (Title Suit 160 from Misc. Cases Nos. 174 and 175; Title Suit 186 from Misc. Case No. 173).
The common plaintiff in both title suits was Lala Sital Prasad, who sought to set aside orders passed in the miscellaneous cases and to have his title declared to the disputed properties and his possession confirmed or restored. The background litigation began with rent suits (e.g., Rent Suit No. 57 of 1933 and Rent Suit No. 38 of 1933) in which Sital Prasad obtained decrees and in execution purchased the disputed holdings at auction and took dakhaldehani on 30-4-1938.
Objections to execution sales were filed by various persons: Ram Chander Prasad (claiming hereditary possession of certain khatas), Chandershekhar and Jai Narain (claiming as purchasers in execution against Ram Chander), and others. The miscellaneous cases were decided in favour of the claimants (i.e., the objectors), after which Sital Prasad instituted the present title suits to challenge those incidental decisions and to press his title based on a deed of gift said to have been executed by Mathura Prasad in his favour.
Both Courts below (trial and first appellate) found the deed of gift from Mathura Prasad to Sital Prasad to be genuine, valid and operative, and decreed the suits in favour of Sital Prasad. The appellants appealed, raising two principal contentions.
Legal Issues Presented
- Whether the findings of the Courts below were adequate to support the conclusion that the deed of gift was operative — specifically, whether Mathura Prasad intended to and did in fact divest himself of title to the properties in issue.
- Whether the issue was barred by res judicata because of prior determinations in rent suits in which the validity or operative effect of the same deed of gift had been examined.
Arguments of the Parties
Appellants' Arguments
- The findings of the learned Courts below are inadequate because neither court made a specific finding as to whether Mathura Prasad intended to, and did in fact, divest himself of title to the properties by the deed of gift.
- The issue is barred by res judicata: in earlier rent suits Sital Prasad had relied on the same deed of gift, and in those suits adverse findings were made that the deed was inoperative and had been executed under undue influence; therefore the matter should be considered finally decided.
Respondent / Plaintiff's Position (as recorded)
- The plaintiff (Sital Prasad) bases his title on the deed of gift from Mathura Prasad; the Courts below found the deed to be genuine, valid and operative and decreed the suits accordingly.
- In reply to the res judicata contention, it was urged that the earlier rent-suit decision was only incidental and therefore should not operate as res judicata; and it was further urged that the appellant cannot now challenge the concurrent findings of fact by two lower courts.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| 3 Cal. 1451 (referencing 15 Beng. L.R. 2382) | Where the same right and title is substantially in issue in two suits (even if the parties appear in different capacities), a judgment in one suit may bar the same issue in another by res judicata. | The court described the case and accepted that it stands for the proposition that a decision in a rent suit can operate as res judicata where the same right is directly and substantially in issue. Ray, J. considered it when evaluating whether earlier rent-suit findings barred the present title suits. |
| A.I.R. 1936 Pat. 5563 | In rent suits the relationship of landlord and tenant is the very foundation of the decree; therefore findings on that relationship are necessary to the decree and operate as res judicata (even if the decree was ex parte). The principle is particularly confined in its implication to rent suits. | Ray, J. noted the principle and its confinement to rent suits and used it to examine whether the earlier rent-suit findings in the present litigation were necessary and final for purposes of res judicata. |
| A.I.R. 1935 Pat. 526 | Where a question (e.g., share entitlement) was necessary for the decision of a rent suit and was directly and substantially in issue, the prior decision operates as res judicata in a subsequent suit raising the same question. | The court cited the case to support the proposition that a matter necessary to the earlier rent suit may be binding on subsequent proceedings; this authority was considered when deciding whether the earlier findings on the deed should bind the title suits. |
| A.I.R. 1934 Pat. 2825 | Where parties went to trial in a rent suit on the issue of ownership and that issue was decided, the question is barred by res judicata. | Ray, J. cited this authority among others establishing that a rent suit can determine title where title was directly tried and decided, and applied the doctrine to assess the effect of earlier rent-suit findings. |
| A.I.R. 1933 Cal. 8246 | A rent court may properly decide questions of title between co-sharer landlords; such decisions are not vitiated and can govern subsequent disputes between the same parties. | Invoked to show that where title was properly and substantially in issue in a rent suit, the decision could be final and binding; the court considered it in determining whether the earlier rent court's decision should bind the parties here. |
| 43 C.L.J. 146.7 | Where the question of landlord-tenant relationship was decided only with reference to a specific period, that decision should not operate as res judicata for suits concerning a different period; but if decided generally (once for all) it will be res judicata for subsequent periods. | The court noted this limiting principle and observed that nothing in the earlier proceedings suggested that the relationship was decided only for a limited period; this helped inform the conclusion that the earlier finding could operate as res judicata. |
Court's Reasoning and Analysis
The court undertook a layered analysis addressing two central questions: (a) whether the lower courts' findings about the gift deed were sufficient to conclude that the donor divested himself of title, and (b) whether earlier decisions in rent suits operated as res judicata against the plaintiff's present title suits.
On res judicata, the judge examined the manner in which the earlier rent courts had treated the deed of gift. The lower courts in the title suits had relied on the term "incidentally" used by the rent court to hold that the matter was not finally determined in those earlier proceedings. Ray, J. closely read the rent court's observations and concluded that the rent court had treated the question in a particular way: it assumed, for purposes of the rent suits, that the gift deed was genuine (i.e., it accepted execution) but concluded that the gift had not been given effect to — in other words, that there had been no divesting of title in favour of the donee.
Ray, J. then considered controlling authorities which establish that where the same question of title was directly and substantially in issue in a prior rent suit, the earlier decision may operate as res judicata. The judge reviewed decisions from Calcutta and Patna benches that state the relationship of landlord and tenant is often foundational to a rent decree and that determinations necessary to that decree may be binding on subsequent litigation.
Crucially, the judge reasoned that the rent court's finding — that although the deed might be genuine it had not been given effect to (i.e., there was no divesting of title) — was a finding as to the operative effect of the deed, not merely a collateral observation. If such a finding were allowed to operate as res judicata, it would be sufficient to defeat Sital Prasad's title claim.
The court also analysed the question of undue influence as found by the earlier courts. Both courts below had found facts indicating a prima facie case of undue influence: Sital's illicit relationship with Mathura Prasad's only daughter, his residence in Mathura's household, and the unconscionable nature of a gift excluding the donor's daughter and granddaughter. These circumstances, the judge held, gave rise to a presumption of undue influence which the plaintiff had not satisfactorily rebutted.
On the question of acceptance of the gift (relevant to whether a deed had been operative), the court emphasised that acceptance must be inferred from handing over and acceptance at the relevant time, not merely from later possession of the physical document. Given the factual findings — particularly Sital's presence in Mathura's household — it was plausible that Sital obtained possession of the deed without the donor's true intention to divest title. The absence of the donor to give direct evidence made it difficult for the plaintiff to prove the necessary handing-over/acceptance element.
Taking these lines of analysis together — the operative reading of the earlier rent court's finding, the authorities on res judicata in rent suits, the prima facie case of undue influence, and deficiencies in proof of acceptance — Ray, J. concluded that the present title suits were barred by res judicata and that the appeals must succeed.
Holding and Implications
Holding: The appeals are allowed. The court concluded that the present title suits are barred by res judicata and the appeals therefore succeed and are allowed with costs.
Implications:
- Direct effect on the parties: The appellate court set aside the position taken in the lower courts and held that the earlier findings in the rent suits (concerning the operative effect of the gift deed and related matters) operate as a bar to the plaintiff's title suits; the appeals are accordingly allowed with costs.
- No broader or novel legal principle is announced beyond the application of existing res judicata principles and accepted tests for undue influence and acceptance as applied to the facts of this case.
Judge Manohar Lall (Ag. C.J.) agreed with the judgment. The opinion concludes: "Appeals allowed."
Ray, J.:— The appeals have been heard together and they will be governed by this judgment. The second Appeal No. 717 has been preferred by Munshi Ram Chander Prasad, defendant 1, impleading defendants 2, 3 and 4 as respondents. This relates to Title Suit No. 160/30 of 1939/1941 in the Court of the Additional Munsif, Gopalganj. The second Appeal No. 718 has been preferred by Mangla Prasad, uncle and heir of Bacha Babu, defendant 1 and Jai Narain Pandey, defendant 2, impleading defendants 3 and 4 as respondents and relates to Title Suit No. 186/31 of 1939/1941 of the Court of the Additional Munsif, Gopalganj. The two suits, 160/30 and 186/31, hereinafter referred to as suits 160 and 186 respectively, were filed under the provisions of O. 21, R. 103 of the CPC. Title Suit No. 160 arose out of Miscellaneous Cases Nos. 174 and 175 and Title Suit 186 arose out of Miscellaneous case No. 173. Lala Sital Prasad is the common plaintiff in both the suits in which he sought to set aside the orders passed in the abovenamed miscellaneous cases and to have his title declared in respect of the disputed propertied and his possession either confirmed or restored.
2. The history behind these litigations is shortly as follows: The plaintiff, Sital Prasad, fled Bent Suit No. 57 of 1933 against one Akloo Bhar and Rent Suit No. 38 of 1933 against Harangi and Barho. Akloo held two tenancies, one sikmi and the other occupancy. The sikrni tenancy consists of sikmi Khata No. 2 in village Ratanpura, and the occupancy in Khata No. 95 in village Belwar. These two tenancies held under one consolidated rental at an annual Jama of Rs. 9-4-6 were recorded within the mokarrari of Mathura Prasad and Jasoda Nandan Prasad. Rent suit No. 38 was in respect of a holding comprised in Khata No. 63 in village Barachap. This holding similarly appertained to the estate of Mathura Prasad and Jasoda Nandan Prasad. It is alleged that there was a partition between Mathura Prasad and his nephew Jasoda Nandan Prasad by virtue of which the tenure relating to the tenancies in suit fell to the share of Mathura Prasad. Mathura Prasad, it is alleged, gifted away all his properties to the plaintiff, Sital Prasad, and on the strength of this title, he claimed to recover the rent in respect of the disputed holdings. Both these suits along with a number of other suits were tried together and Sital Prasad obtained decrees. In execution of the decrees, Sital brought the disputed three holdings to sale and himself became the auction-purchaser. He took out dakhaldehani on 30-4-1938, whereupon Ram Chander Prasad, son of Jasoda Nandan Prasad and nephew of Mathura Prasad, filed an objection in respect of the holdings Nos. 95 and 63 on the allegation that they had been abandoned by their holders in favour of Mathura Prasad, and that on the death of Mathura Prasad, Jasoda Nandan and after him Ram Chander was in possession Chandershekhar and Jai Narain filed objections under O. 21. R. 100 of the CPC claiming possession over sikmi Khata No. 2 as purchasers at a sale held in execution of a certificate issued against Ram Chander Prasad, son of Jasoda Nandan. The miscellaneous cases were decided in favour of the claimants. Hence, Sital Prasad, the deeree-holder, filed the suits, as already stated. Second Appeal No. 717 is in respect to the two occupancy khatas preferred by Ram Chander Prasad and S.A No. 718 is by Jai Narain Pandey and Mangla Prasad. The plaintiff-respondent bases his title on the deed of gift from Mathura Prasad, while Rain Chander claims it on the basis that his father and after him he himself was in possession of the properties as heir or survivor of Mathura Prasad.
3. Both the Courts below have found the deed of gift of Mathura Prasad in favour of the plaintiff to be a genuine, valid and operative document, and on this finding they have decreed, the suit. Hence, these second appeals.
4. The learned counsel for the appellants has raised two contentions, namely, (1) that the findings of the learned Courts below are inadequate to support the conclusion in favour of the gift inasmuch as they have not come to any finding as to whether Mathura Prasad had intended to and did in fact divest himself of title to the properties in suit, and (2) that the issue is barred by res judicata.
5. The issue of res judicata is based upon the decision, in Rent Suits filed by Sital Prasad against certain tenants in respect of tenancies including the one which was the subject-matter of Rent Suit No. 38 and Ram Chander Prasad intervened in all the suits and was added as defendant 2nd party, and as such raised the contention that the deed of gift on which Sital Prasad based his title to recover rents in respect of the disputed tenancies was an inoperative document and had been executed under undue influence. An issue was raised between the parties on the point, and it was held that the deed of gift had been executed under undue influence and remained inoperative not having been ever given effect to. With regard to the first contention, it is urged in reply that it is no longer open to the appellant in second appeal having been concluded by concurrent findings of fact of both the Courts below, and with regard to the contention regarding res judicata, it is urged that the decision in the rent suit was only incidental and should not operate as res judicata.
6. The learned trial Court has dealt with the contention of res judicata in the following manner. He observes:
“I should point out that all the Judges who had occasions to deal with this question of the validity of the deed of gift have unequivocally expressed them selves in clearest possible language that their decision on the point will not be final and conclusive between the parties as they were examining the point only incidentally. They have gone to the length of observing that the parties will be free to agitate the matter of title again. I should like to reproduce the observations of Babu Shiva Kumar Prasad, Additional Munsif, who tried the batch of 13 rent suits and upon whose judgment the learned pleader for the defendants relied for the application of the principle of res judicata to the facts of this case. The observations are quoted here from his judgment at page 3 against Point No. 1. ‘It must be conceded at the very outset that it is outside the scope of these suits to decide about the genuineness or otherwise of this deed of gift and the question will only be gone into incidentally simply to ascertain whether the plaintiff has been in possession of the properties covered by it….’ It is abundantly clear from these remarks of the learned trial Court made at the beginning of his findings that the matter was investigated only incidentally and hence, in my opinion, the rule of res judicata cannot bar the present title suit.”
7. The learned lower appellate Court in dismissing the contention of res judicata adopted the same line of argument as the learned Munsif. He observed:
“From the judgments in the two batches of rent suits it appears that the Courts examined the question of title on the basis of the deed of gift incidentally, and came to adverse findings in respect of the deed of gift. Reading the judgments on the point, it does not appear that any specific issue with respect to the deed of gift was ever raised or decided directly and substantially.”
8. He then referred to certain decisions of this Court and of the Calcutta High Court in which it had been held that a question of title decided in rent suits in which the question of relationship of landlord and tenant is the very foundation of the decree, operates as res judicata, and then says:
“The point to be clearly borne in mind, however, is that in none of the proceedings referred to above, the Court meant to decide the question of title on the basis of the deed of gift directly and substantially as against respondent 1. I am, thus, of opinion that the title of respondent 1 could not be held to stand defeated on the ground of res judicata.”
9. I have examined all the authorities cited by the learned Court of appeal below and those cited at the Bar, and I propose to deal with them one after another in the following paragraphs.
10. In 3 Cal. 1451 which was decided by a Bench consisting of five Judges including Sir Richard Garth, C.J the facts were that in a previous suit instituted by one of the present defendants against the tenant for rent, one of the present plaintiffs (representing the right now claimed by all of them) intervened as a defendant, on the ground that he was the person entitled to the rent, and failed to establish his claim. It was held, following the Full Bench case in 15 Beng. L.R 2382 that the plaintiffs in the later suit were barred by the judgment in the former suit, and once it is made clear that the self-same right and title is substantially in issue in two suits, the precise form in which either suit was brought or the fact that the plaintiff in the one case was the defendant in the other became immaterial. In this case the decision of an issue in a suit for rent was considered to bar the determination of the same issue in a regular title suit by the principle of res judicata.
11. In A.I.R 1936 Pat. 5563 it was held by James and Rowland, JJ. that the relationship of landlord and tenant is the very foundation of a decree in a suit for rent and therefore when such a suit has been decreed the Courts must proceed on the footing that it was a matter necessary to be determined and in fact determined in the earlier rent suit. It cannot be relegated to the category of matters only indirectly, collaterally and incidentally decided. This principle is true even if the decree passed is an ex parte one. This decision, in its implication, is confined to rent suits though rent suits as such have no reference to the facts.
12. In A.I.R 1935 Pat. 526 the facts were that in a suit for rent, the plaintiff claimed to be entitled to a two annas and eight pies share. The Court basing the decision on an entry in a register, however, held that he was entitled to only two annas share. In a subsequent suit for rent against the same defendants, the plaintiff again claimed rent as owner of two annas eight pies share. It was contended that the decision in previous suit did not operate as res judicata to the issue in the later suit, as the question of share of the plaintiff was not finally decided in previous suit, the decision being based entirely on the entry in the register. It was held by James, J. that the decision was necessary for the purposes of that suit, and that the question was directly and substantially in issue between the parties. Hence the previous decision operated as res judicata.
13. To the same effect is the decision of James, J. in the case in A.I.R 1934 Pat. 2825 where it is said:
“Where in a rent suit the parties went to trial on the issue of the ownership of the house, and where the issue was decided and where probably the case was tried as a regular suit in order that the question of title might be decided, the question is barred by res judicata.”
14. In A.I.R 1933 Cal. 8246 it was held that in a rent suit where there is a dispute as to question of title as between the co-sharer-land-lords, the tenants denying the plaintiffs' title, and pleading that the other co-sharer was the full owner, and the other co-sharer supporting their defence, it was held that the Court was justified in deciding the question of title and the decree was not vitiated.
15. In support of an opposite contention, reliance has been placed upon the case in 43 C.L.J 146.7 This decision is to the effect that where the relationship of landlord and tenant as between the parties in a rent suit has been decided with reference to the period in suit, it should not operate as res judicata in a suit for rent for a different period, but if the issue has been decided generally, and for all times or once for all, it would be res judicata in respect of any suit for a subsequent period. In the present case, there is nothing that can support the contention that the question of relationship was determined with regard to the period in suit. In this case too the question of conflicting title as between Sital, and the son of Jasoda Nandan was raised both by the intervening defendant as well as by the tenant, and this conflict of title, as between them, was directly and substantially in issue in order to decide the rent suit, and the Court that heard the rent suit and finally decided it is competent to try this subsequent suit. I see, therefore, no reason why the decision should not operate as res judicata between the parties. The learned Courts below have made to rest their decision upon the word “incidentally” used by the Rent Court in holding that the Court left the matter open to be tried out in a regular suit. I do not think it is really so. The Rent Court in using the word “incidentally” tried to distinguish between genuineness of the gift deed and its operative character. He assumed, for the sake of that suit, that the gift was genuine but held that even though it was genuine, it was not given effect to by the parties. So far, the fact of genuineness, that is, the fact of execution by Mathura Prasad is not in dispute. What is in dispute is that it was never given effect to, or, in other words, there was never any divesting of the gift properties in favour of the donee. In my View, if this finding is held to operate as a bar of res judicata, it will be quite sufficient to dismiss the plaintiff's suit.
16. Besides, the learned Courts below have misdirected themselves in disposing of the point raised, namely, that the deed of gift was executed under undue influence. It has been found as a fact by both the Courts below that Sital was in illicit connection with the donor's only daughter and only issue then living, and, in view of this connection, he had given up residing in his own house and was putting up with Mathura and his daughter. The daughter under the circumstances and, for the matter of that, her paramour Sital must be held to have been in a position to dominate his will. Furthermore, the giving away of the entire property in favour of Sital ignoring his daughter and the daughter's daughter makes the transaction unconscionable. These two circumstances conjointly make out a presumption that this document must be held prima facie to have been brought about under undue influence. The plaintiff has done nothing, according to the findings of the Courts below, to dispel this presumption.
17. With regard to the acceptance of the gift by Sital, evidenced as it is by his possession of the deed of gift can also be said not to have been satisfactorily disposed of by the learned. Courts below. The acceptance is to be inferred, not from his present possession of the deed, but from the fact of the deed having been handed over to him by the donor and his having accepted the same in token of the acceptance of the gift at the relevant time and this is the fact which is relevant for the purpose. Keeping in view the circumstances that Sital was living as an inmate of the family being in league with Mathura's daughter, it was quite possible for him to take hold of the document without the donor's knowledge and intention. In the absence of the donor, it is difficult for the appellant to prove how possession of the deed was secured by Sital. In any view, I have no hesitation in holding that the present suits are barred by res judicata. These appeals, therefore, succeed and must be allowed with costs.
Manohar Lall, Ag.C.J:— I agree.
G.N
18. Appeals allowed.
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