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  • 34 Cal. 372, Mayne, Edn. 7, Section 342,
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  • 34 Cal. 372, Mayne, Edn. 7, Section 342,
Smart Summary

Factual and Procedural Background

The plaintiff appealed against a decree by the District Judge of Ganjam which dismissed his suit based on six simple mortgages executed by defendant 1 between September 1909 and July 1911, totaling Rs. 2,000. Defendant 2, the principal contesting defendant, is the minor son of defendant 1. Other defendants were made pro forma parties. Formal defenses were ruled in favor of the plaintiff, but the substantial defense claimed the mortgages were sham transactions without consideration, intended to defeat claims by defendant 3, who was defendant 1's adopted cousin. The trial court found in favor of this defense and dismissed the suit.

Prior to this suit, litigation had confirmed the adoption of defendant 3, who obtained a partition decree against defendant 1 in 1914. Execution of that decree led to attachment of shares of defendants 1 and 2. The plaintiff had previously claimed under the mortgages in execution proceedings and brought a suit (O.S. 14 of 1918) to set aside an adverse claim order. The appellate court upheld the mortgages as valid and supported by consideration in that suit, which included defendant 1 as a party.

Legal Issues Presented

  1. Whether the mortgages sued on are supported by consideration.
  2. Whether the defense of lack of consideration is available to defendants 1 and/or 2.

Arguments of the Parties

Defendants' Arguments

  • The mortgages were sham transactions made without consideration.
  • The purpose of the mortgages was to defeat any claims by defendant 3 based on his adoption, which defendant 1 was denying.

Plaintiff's Arguments

  • The mortgages were genuine and supported by valid consideration.
  • Previous litigation (O.S. 14 of 1918) had conclusively upheld the validity and consideration of these mortgages as res judicata against defendant 1.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Chuttan Lal v. Kallu [1911] 33 All. 283 Post-alienation son cannot question validity of alienation if father was sole family member or if other members consented. Used to determine that defendant 2, born after the mortgages, may question the validity because other family members (defendant 3) did not consent.
Lachmi Narain Prasad v. Kishen Kishore Chand [1916] 34 All. 126 Same principle as above regarding post-alienation sons and alienation validity. Supported the court’s analysis on defendant 2’s rights to question the mortgages.
Bholanath Khettry v. Kartick Kissen Das Khettry [1907] 34 Cal. 372, Mayne, Edn. 7, Section 342 Legal principle on alienation of family property and rights of subsequent sons. Reinforced the principle that a son born after alienation can only challenge it under certain conditions.
Tulshi Ram v. Babu Lal [1911] 33 All. 654 Supports the right of a son born after alienation to question alienations made without family consent. Applied to hold that defendant 2 may question the mortgages as defendant 3 did not consent to them.

Court's Reasoning and Analysis

The court first addressed the question of whether defendant 1 could raise the defense of want of consideration. It held that the issue was res judicata as between plaintiff and defendant 1 because the validity and consideration of the mortgages were upheld in earlier litigation (O.S. 14 of 1918). The court clarified that the earlier judgment did not leave the question open between these parties.

Regarding defendant 2, the court found that he was not barred by res judicata because he did not claim through defendant 1 but by birth as a coparcener. However, since defendant 2 was born after the mortgages were executed, the court applied settled Hindu law principles, supported by cited precedents, to conclude that defendant 2 could challenge the mortgages if the family members at the time did not consent. Defendant 3, a family member at the time, had repudiated the mortgages, thus permitting defendant 2 to question them.

On the merits, the court reviewed evidence supporting the consideration for the mortgages, including promissory notes, cash payments, and testimony from various witnesses including the plaintiff and the writer of the mortgages. The court found no reason to reject this evidence or to suspect conspiracy, noting the rapid succession of mortgages was not suspicious given the circumstances.

The court emphasized that the mortgages were executed for necessary household and litigation expenses. Defendant 1 did not deny receipt of consideration. The court also noted that under Hindu law, defendant 2 is bound to pay his father's debts. Therefore, the mortgages were held to be valid and binding on both defendants.

Holding and Implications

The appeal is allowed in part, and six mortgage decrees are granted as prayed with costs in both courts, with payment due by 15th July 1931.

The decision confirms the validity and enforceability of the mortgages against both defendants. It clarifies that res judicata bars defendant 1 from challenging consideration but does not bar defendant 2. The ruling does not establish new precedent but applies established principles of Hindu law and res judicata to the facts of the case. The direct effect is to uphold the plaintiff’s claims and impose liability on the defendants accordingly.

    Kintali Chandramani Prushti v. Jambeswara Rayagaru

    1. The plaintiff appeals from a decree of the learned District Judge of Ganjam dismissing his suit brought on six simple mortgages marked A, A-l, A-2, A-3, A-4, and A-5, executed by defendant 1 to him between September,1909 and July 1911 for a total sum of Rs. 2,000. Defendant 2 (respondent 2), the principal contesting defendant, is the* minor of defendant 1. The other defendants, of whom defendant 3 is a divided cousin by adoption of defendant 1, and defendants 4 to 9 are persons holding under defendant 3 were made pro forma: defendants. A number of formal defences were raised which were all found in favour of the plaintiff. The substantial defence on the merits was that the mortgages sued on were sham transactions made without consideration with the object of defeating any claims which defendant 3 might make to the property or the income on the basis of his adoption which defendant 1 was then denying. On this the learned Judge found in favour of the defence and hence dismissed the suit.

    2. The main questions in the appeal are whether the mortgages sued on are supported by consideration and whether the defence that they were not so supported is open to defendants 1 and 2 or either of them. Logically, the second point should precede the first as, if it is found in favour of the appellant the first point would not arise.

    3. Defendant 1 and his brother's adopted son, defendant 3, were living together before 1909 when they quarrelled and defendant 1 denied the adoption and drove defendant 3 out of the house. Litigation followed in which the adoption was upheld. In 1914 defendant 3 sued for partition and obtained a decree for his share and costs and mesne profits. In execution of this decree defendant 1's and 2's shares were attached. The plaintiff who had obtained the mortgages now sued on between 1909 and 1911 preferred a claim based on them in execution which was dismissed. He brought a suit, O.S. 14 of 1918, to set aside the claim order, and though he failed in the first Court (Ex. 7) in appeal the District Judge upheld the mortgages as true and valid and supported by consideration (Ex. E). To this suit defendant 1 was party. This suit on the mortgages was brought afterwards. Clearly the question of the validity and consideration for the mortgages is res judicata as between the plaintiff and defendant 1. The learned Judge below misunderstood Ex. E when he considered that the Judge who decided that ease, after upholding the mortgages, left the same question open as between the parties to the suit. This he did not in fact do and had not the power to do.- The sentence in Ex. E which reference is made clearly refers to defendant 1's minor son (present defendant 2) or anyone else who could legally raise the question and not defendant 1 himself. We hold' that the defence of want of consideration is not open to defendant 1 (respondent 1.)

    4. As to defendant 2, he is not barred from raising the same question on the ground of res judicata, as he does not claim the family property through his father, but by reason of his birth as a coparcener in the family. There is however the point arising from the fact that he was not born on the date of the mortgages in question but only, as found by the learned Judge, which is not objected to by him, in 1912. According to the Hindu law as now well settled, Chuttan Lal v. Kallu [1911] 33 All. 283, Lachmi Narain Prasad v. Kishen Kishore Chand [1916] 34 All. 126, Bholanath Khettry v. Kartick Kissen Das Khettry [1907] 34 Cal. 372, Mayne, Edn. 7, Section 342, a son who was born after the alienation of the family property by his father cannot question the validity of that alienation if the father was at the time of the alienation the only member of the family, or if there being other members they had consented to and so validated the alienation. In this case defendant 1 was not the only member of the family at the dates of these mortgages but there was defendant 3 who became divided only by the decree in the suit of 1914. Not only is there nothing to show that he had consented to but everything to show that he repudiated these mortgages which were held not binding on him. It is therefore open to defendant 2 to question these mortgages: Tulshi Ram v. Babu Lal [1911] 33 All. 654,

    5. On the merits we have been taken through the evidence as to the consideration for the mortgages sued on. After giving the best consideration to the circumstances mentioned by the learned Judge for preferring the opinion of the first Court in Ex. 7, we have come to the conclusion that the better view is that of the District Judge in appeal in Ex. E. The mortgage Ex. A was for Rs. 400 and given for two promissory note debts Exs. D. for Rs. 225 and D-l for Rs. 110 and for some cash. This is spoken to by the plaintiff and the writer P. W. 9. Ex. A-l is for Rs. 400 paid in cash. This is spoken to by P. W. 4. Ex. A-2 is for Rs. 200 in payment of two promissory notes D-2 for Rs. 100 and D-3 for Rs. 100. These are spoken to by P. W. 6, P. W. 7 and P. W. 5. Ex. A-3 is for Rs. 400 including a promissory note debt; Ex. D-4 for Rs. 127. This is spoken to by P. W. 5. Ex. A-4 is for Rs. 300 of which Rs. 150 was in payment of a promissory note D-5. This transaction is spoken to by P. W. 3 and P. W. 7. Lastly, A-5 is for Rs. 300 paid in cash and is spoken to by P. W. 6 and P. W. 7. All the mortgages are also spoken to by the writer P. W. 9 and the plaintiff.

    6. These mortgages were executed at a time when litigation and family disputes existed between defendants 1 and 3,and they are executed for household and litigation expenses. The plaintiff is a village money-lender, a Komati, and defendant 1 is a Brahmin. There is no reason for assuming any conspiracy between them. The learned Judge has laid emphasis on the rapidity with which these transactions followed each other. If that is a ground for surprise, it is equally surprising that, if the object was to create a mortgage in order to defraud third parties (defendant 2 was not then alive), so many as six mortgages were thought necessary for that purpose when it would have been far more easy to create one document. In one case, i.e. Ex. A-2, the mortgage was executed the next day after one of the promissory notes (D-3) recited as paid off by the mortgage. This was regarded as suspicious. The reason appears to be that on the date of D-3 itself the parties contemplated executing a mortgage, as the date of the purchase of the stamp for A-2 shows, but as they were living some miles from the registration office a note was first given and the mortgage was registered the next day. Similar explanations are possible for the other transactions. In any case we see no ground to reject the large body of apparently disinterested testimony given by the plaintiff, which the defendants have not in any way attempted to meet. Defendant 1 did not even go into the box to deny receipt of consideration. We must therefore find that the mortgages sued on were executed for proper consideration and necessity. No question of illegality or immorality has been raised. Defendant 2 being the son is also bound by Hindu law to pay his father's debts. The mortgages are therefore binding on defendant 2. There will be six mortgage decrees as prayed with costs in both Courts. Time for payment 15th July 1931.

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    Kintali Chandramani Prushti v. Jambeswara Rayagaru
    (Dec 9, 1930)