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Smart Summary

Factual and Procedural Background

Ramasami Asari and the 8th defendant were brothers and members of an undivided Hindu family. Ramasami mortgaged suit properties, which were found by the Courts below to belong to the joint family, to the plaintiff Nidhi. The Munsif found that the mortgage was not for a family purpose, a finding not disputed on appeal. The Munsif also found the transaction was ratified by the 8th defendant, a conclusion accepted by the District Judge. On appeal, it was argued that no ratification was possible since the transaction was never entered into on behalf of the 8th defendant. The case involves determining the validity of alienations made by the manager of a Hindu family without justifiable family necessity and whether subsequent assent by family members can validate such alienations.

Legal Issues Presented

  1. Whether a manager of a Hindu joint family can validly alienate family property without justifiable family necessity.
  2. Whether the assent or ratification by other members of the joint family can validate an alienation made without such necessity.
  3. Whether the 8th defendant assented to or ratified the mortgage at the time of its execution or subsequently.

Arguments of the Parties

Appellant's Arguments

  • There could be no ratification of a transaction which was never entered into on behalf of the 8th defendant.
  • If the alienation is considered a contractual agency, the manager is not an agent in the strict sense, and ratification is not possible where the agent does not purport to act on behalf of the principal.

Respondent's Arguments

  • The transaction was ratified by the 8th defendant, and this ratification was accepted by the lower courts.
  • The manager, with the assent of the other family members, may give a good title even if the alienation is not for any family necessity.
  • The assent of co-parceners can supply the want of capacity on the part of the manager to alienate family property.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Annamalai Chetty v. Murugesa Chetty (1903) I.L.R. 26 M 544 Manager of a joint Hindu family is not an agent in the strict sense; no ratification possible if agent does not purport to act on behalf of principal. Supported the view that ratification cannot validate alienation if the manager never acted on behalf of the 8th defendant.
Keighley Maxted & Co. v. Durant 1901 A.C. 240 No ratification possible where agent does not purport to act on behalf of principal. Reinforced the principle that ratification requires the agent to have purported to act for the principal.
Modhu Sudan Singh v. Rooke (1897) I.L.R. 25 C. p. 1 Transactions by a Hindu widow are voidable, not void, and can be ratified by reversioners. Used to analogize whether alienations by a Hindu family manager are voidable or void.
Bijoy Gopal Mukerji v. Krishna Mahishi Dehi (1900) I.L.R. 34 C. p. 329 Similar principle as Modhu Sudan Singh regarding voidable transactions and ratification. Supported the discussion on ratification of alienations by family members.
Unni v. Kunchamma (1890) I.L.R. 14 M. 20 Alienations not for justifiable necessity are void as regards other members' shares; valid if for justifiable necessity. Established the distinction between valid and invalid alienations by the manager.
Sheo Shankar Gir v. Ram Shemak Chowdhri (1869) I.L.R. 24 C. 77 Alienations must be for justifiable necessity to be valid. Reinforced the principle of validity based on family necessity.
Balwantrao v. Ramakrishna (1902) 3 B. L.R. 682 Alienations by the manager must be for family necessity to be valid. Supported the principle that alienations without family necessity are invalid.
Musiligadu v. Nannigadu (1905) 15 M.L.J. 492 Subsequent assent of family members may estop them from denying alienation validity. Discussed estoppel as a basis for validating alienations but noted no estoppel was claimed in this case.
Bajrangi Singh v. Manokarnika Baksh Singh (1907) I.L.R. 30 A. p.1 Subsequent assent of presumptive reversioners can validate alienations by a Hindu widow. Considered in context of whether subsequent assent can validate alienations otherwise void.

Court's Reasoning and Analysis

The court analyzed the nature of alienations by a Hindu family manager and the role of family necessity. It recognized that alienations without justifiable family necessity are void concerning other members' shares, while those with necessity are valid. The manager is not an agent in the strict sense, so ratification requires that the manager purported to act on behalf of the family. The court distinguished between assent at the time of alienation, which can pass title, and subsequent assent, which may not validate an alienation that was void ab initio. The court noted that the District Judge accepted that the 8th defendant probably knew of and acquiesced in the mortgage but found that such acquiescence may not amount to ratification sufficient to bind the 8th defendant. Consequently, the court directed the District Judge to specifically determine whether the 8th defendant assented to the mortgage at the time of its execution, emphasizing the importance of timing and nature of assent in validating the alienation.

Holding and Implications

The court did not make a final ruling on the validity of the mortgage but instead remanded the matter to the District Judge for a specific finding on whether the 8th defendant assented to the mortgage at the time of its execution. The District Judge was instructed to submit this finding within six weeks, with seven days allowed for objections.

The direct effect of this decision is procedural, requiring further fact-finding before a final determination can be made on the validity of the mortgage as it relates to the 8th defendant's interest. No new precedent was established by this order.

    Kandasami Asari v. Somaskanta Ela Nidhi Limited, Through Its Secretaries, Chidambaram Chettiar And Kristnasamy Aiyar

    1. Ramasami Asari and the 8th defendant were brothers and members of an undivided Hindu family. Ramasami mortgaged the suit properties (which must now be taken 011 the findings of the Courts below to have belonged to the joint family) to the plaintiff Nidhi. It is found by the Munsif, and that finding was apparently not disputed in appeal, that the mortgage was not for a family purpose. The facts set out in paragraph 14 of the Munsif's judgment make it abundantly clear that there was no justifiable family necessity for the alienation. The Munsif, however, found that the transaction was ratified by the 8th defendant and this conclusion has been accepted by the District Judge. It is argued on appeal that there could be no ratification of a transaction which was never entered into on behalf of the 8th defendant. This argument must be accepted as sound if Ramasami's alienation is rested on the footing of a contractual agency The manager of a joint Hindu family exercising the powers of a manager is not the agent of the family in the strict sense of the term. See Annamalai Chetty v. Murugesa Chetty (1903) I.L.R. 26 M 544. No ratification is possible where the agent doesnot purport to act, though without authority, on behalf of a principal. See Keighley Maxted & Co. v. Durant 1901 A.C. 240. But the manager of a Hindu family has power to act for the family subject to certain restrictions. Alienations for a family purpose are within his competency. One mode of proving the family purpose, or justifiable family necessity as it has been called, is the assent of adult members of the family competent to contract. The family purpose may also be proved by showing the circumstances which have necessitated the alienation when those circumstances are within the purview of the rules of the Hindu Law on the subject. In this case the absence of the family necessity is distinctly found. In the face of such a finding the assent of co-parceners as evidence of such necessity cannot avail. But as the property vests in the undivided family, the manager with the assent of the other members may give a good title to the alienee even though the alienation is not for any family necessity.

    2. It is not necessary that the assenting members should join in the transfer. The manager having the power to act by himself the assent of the other members cures his incapacity to act singly in certain matters or clothes him with the necessary capacity for the complete representation of the interests of the family. The assent in this case is not that of principals to the acts of an agent, but as Mr. Maynk says, it is the supplying by the consent of the co-parceners the want of capacity on the part of the manager to alienate family property. " Such consent", he adds, "may either be express or implied from their conduct at or after the time of the transaction"--Section 345. It has been held by the Privy Council in the case of transactions by a Hindu widow that they are only voidable, not void, and that the reversioner succeeding to the estate may by his conduct ratify the transactions and give them full validity--Modhu Sudan Singh v. Rooke (1897) I.L.R. 25 C. p. 1 and Bijoy Gopal Mukerji v. Krishna Mahishi Dehi (1900) I.L.R. 34 C. p. 329. Is the act of the manager similarly voidable and not void where it is in excess of his powers limited to justifiable necessity? It has invariably been accepted as a sound canon of the Hindu Law that where the alienation is not justifiable necessity, it is void as regards the shares of the other members of the family and where such necessity exists it is valid in its entirety. See Unni v. Kunchamma (18.90) I.L.R. 14 M. 20 at. p. 28. Sheo Shankar Gir v. Ram Shemak Chowdhri (1869) I.L.R. 24 C. 77, at p. 82 and Balwantrao v. Ramakrishna (1902) 3 B. L.R. 682. It has never been suggested that the alienation by the manager is only voidable where it is not for justifiable necessity. Taking it that there are two classes of alienations by the manager, some valid and others invalid, what is the true position of an alienation by the manager which is subsequently assented to by the remaining members of the joint family ? An assent at the time of the alienation without taking part in it is, we have already said, sufficient to pass the property. An assent by some alone, though evidence of the propriety of an alienation, will not, in the face of positive proof of its impropriety, suffice to pass their interests, for such assent does not amount to a transfer. But where all the remaining members assent to the alienation subsequent to it, does it validate the alienation apart from any question of estoppel ? The decision in Musiligadu v. Nannigadu (1905) 15 M.L.J. 492 which was referred to, appears to rest upon estoppe of which there is no suggestion in this case. At page 493, the learned Judges who decided that case observe : "If, as a matter of fact, the defendants after their father's death assented to the possession of the land being taken by the donee on their nonpayment of the rent and also assented to the plaintiff's joining after their mother's death in redeeming the land, they cannot now be permitted to contend that their father had no right to assign the land in the first instance." The question remains whether the subsequent assent of the remaining members of the family can validate the prior alienation by the manager. It has been held by the Privy Council that the subsequent assent of the presumptive reversioners can validate an alienation by a Hindu widow otherwise not justifiable. They say: "It is immaterial whether the concurrence of the reversioners was given at the time the alienation was made or it was given after the execution of the deeds of alienation--Bajrangi Singh v. Manokarnika Baksh Singh (1907) I.L.R. 30 A. p.1. But this probably rests on the view that the alienations themselves are only voidable. If, on the other hand, a manager's alienation is void because it is not for justifiable necessity, it is difficult to see how the subsequent assent of the remaining members of the co-parcenery can validate an alienation void in its inception.

    3. But in this case the District Judge says :

    "The District Munsif was certainly right in assuming that appellant knew of and probably also acquiesced in the transaction, especially as there was more than one isolated instance in which appellant took the receipts."
    If this means that there was a consent to the mortgage at the time of its execution, the appellant's interest is certainly bound. But if it means the same thing as the ratification, which the Judge speaks of subsequently, we think it is not sufficient to bind the 8th defendant.

    4. We must ask the District judge to find upon the evidence on record "whether the 8th defendant assented to the mortgage at the time of its execution." The finding should be submitted within six weeks, and seven days will be allowed for filing objections.

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    Kandasami Asari v. Somaskanta Ela Nidhi...
    (Feb 16, 1910)