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Factual and Procedural Background

Three brothers of the Ittoli family — Moideen Koya, Mamoo (also spelled Mammu) and Ahammad — carried on a hardware and sundries business and acquired property described in the A, B and C schedules. The A schedule property was acquired by a sale deed dated 11th August, 1917, standing in the names of the three brothers. Moideen Koya died in 1926 (his heirs are defendants 2 to 6). Mamoo is the first defendant. Ahammad died between 1936 and 1939, leaving a widow (the tenth defendant) and several children (defendants 7, 8, 9 and 11).

A third party obtained a small cause decree in S.C.S. No. 134 of 1936 against Ahammad and purchased Ahammad's undivided one-third share in the A schedule property at execution sale; the plaintiff is that court auction-purchaser. After symbolic delivery, the plaintiff filed the present suit on 13th October, 1939, seeking partition and delivery of Ahammad's one-third share in the A schedule property.

The contesting defendants (appellants in the second appeal) are defendants 2, 5 and 6. Their defence relies on a partition suit they filed in the Sub-Court of Calicut (O.S. No. 34 of 1935) in which, they say, the whole of the A schedule property was allotted to their share by a compromise decree (final decree passed in late 1937). That decree, however, was not engrossed on a non-judicial stamp paper as required by law, nor was it registered as an instrument of partition.

Both lower courts excluded the compromise decree and compromise from evidence on grounds of stamp deficiency (invoking Section 35 of the Indian Stamp Act) and for want of registration; consequently the appellants could not prove the alleged 1937 partition by those documents. There was no other evidence adduced by the appellants to prove the partition. The lower courts also found that the A schedule property was held as tenants in common by the three brothers (i.e., not partnership property).

Legal Issues Presented

  1. Whether the compromise decree (final decree of partition in O.S. No. 34 of 1935) could be admitted in evidence despite being unstamped and unregistered.
  2. If the compromise decree is inadmissible, whether the appellants could nevertheless prove the details of the alleged 1937 partition by other evidence.
  3. Whether a purchaser of a co-owner's share in a particular item (here, the plaintiff by auction purchase) can sue for recovery of that purchased share without seeking a general partition of all the family properties.
  4. Whether equities (debts/overdrawals by Ahammad) could be worked out against the purchaser in the absence of proper pleading and proof.
  5. Whether the A schedule property was partnership property (and thus not validly attached under Order 21, Rule 49, CPC) or held as tenants in common.

Arguments of the Parties

Appellants' Arguments

  • The appellants relied on a compromise decree in O.S. No. 34 of 1935 (final decree said to be passed in late 1937) which, they contend, allotted the whole of the A schedule property to their share; if valid, that decree would defeat the plaintiff's title to Ahammad's one-third share.
  • They argued that under that partition, certain items of the B schedule were allotted specifically (item 2 to defendants 3 and 4) and other items (1 and 3) remained common; Ahammad (or his representatives) and Mamoo were not allotted separate properties because Ahammad had overdrawn funds.
  • The appellants urged that even if the compromise decree was inadmissible, they should be permitted to prove the partition by other evidence. They invoked authorities (including the Judicial Committee decision in Ram Rattan v. Paramanand) to support the proposition that oral or other evidence can establish partition when the writing is inadmissible.
  • They also argued that equities (claims for adjustment of amounts Ahammad had drawn) meant that any entitlement of Ahammad's heirs or of the plaintiff should be subject to adjustment; in effect, the purchaser cannot have greater rights than the transferor.
  • They maintained that the compromise decree in the Sub-Court should still be regarded as pending (on account of the stamping defect), and that they might approach the Sub-Court to obtain a properly stamped final decree.

Plaintiff's Position

  • The plaintiff is the court auction-purchaser of the one-third share of Ahammad under a decree in S.C.S. No. 134 of 1936 and instituted the present suit for partition and delivery of that share.
  • Implicitly, the plaintiff's case relied on the execution purchase and on the absence of admissible proof that Ahammad's share had been validly allotted away by a prior partition decree.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ramayya v. Achamma (1944) 2 M.L.J. 164 : I.L.R. (1945) Mad. 160 (Full Bench) Held that where a deed of partition is inadmissible for want of registration, parties cannot prove by other evidence the details of the partition as to which immoveable properties fell to particular sharers. The Court noted this Full Bench authority and acknowledged its restrictive rule. The court observed that whether this remains good law may require reconsideration in light of later authority (Ram Rattan), but did not overrule the decision here.
Ram Rattan v. Paramanand (1946) 1 M.L.J. 295 (Privy Council) Privy Council accepted oral evidence proving partition even though documents evidencing partition were rejected as unstamped under Section 35 of the Stamp Act. The court observed the Judicial Committee had no difficulty finding a partition on other evidence but noted uncertainty whether the oral evidence proved only change in status or the specific details of which items fell to which sharers. The court left open the question of reconciling this with Ramayya.
Jotindra Mohan Tagore v. Brjoy Chand Mahatap (1904) I.L.R. 32 Cal. 483 Held that a decree not drawn up on proper non-judicial stamp paper is a nullity and the suit must be considered pending. The court cited this case to support the principle that failing to engross a final partition decree on non-judicial stamp paper renders it ineffective; the court applied the principle in considering the consequences of the unstamped compromise decree.
Satyanandhan v. Nanayya (1937) 47 L.W. 51 Observation that a final decree for partition has no existence as a decree until engrossed on proper non-judicial stamp paper; until then the suit remains pending. Used to reinforce the proposition that an unstamped final decree lacks existence; the court treated the unstamped decree as ineffective and noted the harm caused by such procedural omission.
Venkatappa v. Venkatappa (1943) 2 M.L.J. 112 : I.L.R. 1944 Mad. 266 Expressed a somewhat different view on the effect of failing to engross a decree on non-judicial stamp paper. The court recognized this differing view and observed that appellants might seek relief in the Sub-Court to have the decree treated as pending and properly engrossed; the court did not adopt a definitive position overruling either line of authority.
Pakkiri Kanni v. Manjoor Sahib (1923) 45 M.L.J. 321 : I.L.R. 46 Mad. 844 Held that a purchaser of a co-owner's share is not disabled from suing for recovery of the purchased share; partial partition suits are permissible and co-sharers may ask the court to effect division of all properties. The court applied this authority to conclude the plaintiff could maintain a suit for the one-third share without being barred by a plea of partial partition; the sixth defendant expressly gave up this issue before trial.

Court's Reasoning and Analysis

The court proceeded step-by-step applying statutory and precedential constraints and examining the documentary and oral evidence produced at trial:

  1. Admissibility of the compromise decree: Both lower courts excluded the compromise and the compromise decree because the document required stamping and was admittedly not stamped; Section 35 of the Indian Stamp Act was invoked to justify exclusion (an unstamped document "cannot be adduced in evidence for any purpose whatever"). The court accepted this ground and reaffirmed that the compromise decree and compromise were inadmissible in evidence for these reasons.
  2. Registration requirement: An additional objection was that a final decree of partition, being an instrument of partition under the Registration Act, required registration; the decree had not been registered. The court noted this as another basis for excluding the document.
  3. Conflict of authorities on proving partition by other evidence: The court considered Full Bench authority in Ramayya v. Achamma, which precludes proving the details of a partition by other evidence where the instrument of partition is inadmissible for want of registration. The appellants relied on Ram Rattan v. Paramanand (Privy Council) where, despite rejection of documents as unstamped, oral evidence was accepted to prove partition. The court observed that Ram Rattan did not address the particular difficulty of admitting other evidence where the transaction was reduced to writing and that writing was inadmissible under the Stamp Act or the Registration Act. The court therefore treated the question of admissibility of other evidence to prove partition details as still open and one that may require future consideration.
  4. Application to the present facts: Critically, the court found that the appellants had not adduced any other evidence (oral or documentary) apart from the certified copies of the compromise and the compromise decree to prove the alleged 1937 partition. Because those documents were inadmissible, and because there was no other evidence demonstrating the partition or allocation of the A schedule property to the appellants, the appellants could not succeed on that ground. The court emphasized that the appellants might have cured the defect by adducing other evidence, but they did not.
  5. Effect of unstamped final decree: The court reviewed authorities (Jotindra Mohan Tagore; Satyanandhan v. Nanayya; Venkatappa v. Venkatappa) and explained that a final decree not engrossed on proper non-judicial stamp paper may be treated as a nullity or as leaving the suit pending until properly engrossed. The court suggested that the appellants could approach the Sub-Court of Calicut to request that the decree in O.S. No. 34 of 1935 be considered pending and be finalized on proper stamp paper, subject to objections by other parties.
  6. Partial-partition suit and purchaser's rights: The court relied on Pakkiri Kanni v. Manjoor Sahib to confirm that a purchaser of a co-owner's share can maintain a suit for recovery of that share without being required to join a suit for general partition of all properties. The court noted that the plea of badness for seeking partial partition had effectively been given up at trial by one defendant.
  7. Equities between co-sharers: The court examined the appellants' contention that equities arising from Ahammad's overdrafts might affect entitlements. It observed that such equities could have been pleaded and proved (for example, asking that if the plaintiff is entitled to a share, the plaintiff should be directed to pay sums). But since there was no pleading or evidence about equities, the court could not work them out; a purchaser cannot have greater rights than the alienor, but that equitable relief was not pleaded or shown here.
  8. Nature of the property: Both lower courts had found that the disputed property was not partnership property but was held as tenants in common by the three brothers; the appellate court saw no reason to disturb that factual finding.

Holding and Implications

HOLDING: The second appeal fails and is DISMISSED.

Implications and direct consequences:

  • The compromise and the compromise decree produced by the appellants were inadmissible in evidence because they were unstamped (invoking Section 35 of the Indian Stamp Act) and were not registered as partition instruments; accordingly, they could not be used to establish that the whole of the A schedule property had been validly allotted to the appellants.
  • Because the appellants produced no other evidence to prove the alleged 1937 partition, they failed to establish their claim and therefore the plaintiff's purchase of Ahammad's one-third share was not defeated by proof of an effective prior partition.
  • The appellants remain free to approach the Sub-Court of Calicut to seek to have the decree in O.S. No. 34 of 1935 treated as pending and to obtain a final decree properly engrossed on non-judicial stamp paper; any such action would be subject to objections by other parties and to consequent legal effect as between those parties.
  • The court made no order as to costs of this Court, and noted "No leave."
  • The decision does not purport to authoritatively settle the open question whether, and to what extent, other evidence may be admissible to prove details of a partition when the written instrument is inadmissible; the court left that point open for future consideration.

    Ittoli Moidin Koya'S Son Koyatti And Others v. Imbichi Koya And Others.

    1. Three brothers of the Ittoli family, namely, Moideen Koya, Mamoo and Ahammad were carrying on business in hardware and sundries. They acquired the A schedule property under Ex. P-8, dated nth August, 1917, a sale deed which stands in the names of the three brothers. They acquired also other properties that are set out in schedules B and C. The first item in the B Schedule is the family house and the paramba attached to it. Moideen Koya died in 1926 and his heirs are defendants 2 to 6. Mamoo is the first defendant in the suit. Ahammad died between 1936 and 1939 leaving a widow, the tenth defendant and several children who are defendants 7, 8, 9 and 11. The plaintiff is the Court auction-purchaser in execution of a small cause decree passed in S.C.S. No. 134 of 1936. A third party filed that suit against Ahammad Koya, -obtained a decree and bought the undivided one-third share of Ahammad, the judgment-debtor in the A schedule property. After purchasing the property the plaintiff got symbolical delivery and then filed the present suit on 13th October, 1939, for partition and delivery to him of the one-third share of Ahammad Koya. The contesting defendants are defendants 2,5 and 6, who are the appellants in this Court. Their defence is that in a partition suit filed by them in the Sub-Court of Calicut, O.S. No. 34 of 1935 the whole of A schedule property was allotted to their share. It is said that item 2 of the present B schedule was given to defendants 3 and 4 and that items 1 and 3 of the B schedule were left to be enjoyed as common properties by all the three branches. According to this partition Ahammad's representatives or Mammu, the first defendant, were not given any separate properties in addition to the common right in items 1 and 3 of the B schedule for the reason that they had largely overdrawn from the funds of the partnership or from the other funds of the family. Unfortunately the decree was not drawn up on a non-judicial stamp paper as required by law. The final decree is said to have been passed in the later part of 1937.

    2. If there had been a valid decree in force then the plaintiff would get nothing because his purchase would be subject to the rights declared under that decree. That decree having given the whole of A schedule property to the appellants there was no right of Ahammad in the A Schedule property which could be purchased by the Plaintiff and he would have to be non-suited. Unfortunately the Court did not take care to see that the decree was drawn up on non-judicial stamp paper. It is the obvious duty of the Court in passing final decrees for partition to insist upon the parties supplying the necessary stamp paper of proper denomination and to have the final decree drawn up on such non-judicial stamp paper. That was not done. The parties did not realise the consequences of this omission and the result has been very unfortunate from the standpoint of the appellants.

    3. Both the lower Courts have declined to admit the compromise decree in evidence on the ground that the document required to be stamped, that it was admittedly not stamped and that Under Section 35 of the Indian Stamp Act, the dooument cannot be adduced in evidence for any purpose whatever. Another objection taken was that being an instrument of partition as defined under the Registration Act the final decree has to be registered. That again was not done. Though it has been repeatedly pointed out that the Courts ought to be careful in drafting the proper decree in such cases, numerous instances have come before this Court in which this duty has been neglected by the lower Courts and that has brought about incalculable harm and injury to the parties concerned.

    4. However, we have to deal with facts as they are and here the compromise decree and the compromise have to be rejected as inadmissible in evidence for the reasons stated above. A decision of this Court in Ramayya v. Achamma (1944) 2 M.L.J. 164 : I.L.R. (1945) Mad. 160 (F.B.), held that where a deed of partition is inadmissible for want of registration the parties are not entitled to prove by other evidence the details of the partition in so far as the immoveable properties are concerned. Proof cannot be given that particular items of immoveable property fell to particular sharers. It is argued for the appellants that in so far as this dcision held that even other evidence is not admissible to prove which item fell to which individual sharer, the matter will have to be reconsidered in the light of the decision of the Judicial Committee reported in Ram Rattan v. Paramanand (1946) 1 M.L.J. 295 (P.C.). It is urged that in that case a document which was in effect a partition deed was relied on to prove the details of the partition, that the document was rejected by the Judicial Committee for the reason that it was unstamped and therefore not admissible in evidence for any purpose whatever under Section 35 of the Stamp Act and that having rejected the document their Lordships held that the other evidence proved the partition. Reliance is placed on the following passage in page 198:

    Their Lordships therefore pay no regard to the documents marked 'C' and 'D' but they are in agreement with the High Court in thinking that the oral evidence proved partition in February, 1939.

    The Judicial Committee did not refer to the difficulty of admitting other evidence when the transaction was admittedly reduced to writing and that writing was inadmissible either under Section 35 of the Stamp Act or under Sections 17 and 49 of the Registration Act. But there is no doubt that the Judicial Committee had no difficulty in finding a partition on other evidence. But whether other evidence is admissible to prove the details of the partition is still open to doubt. It is not clear whether oral evidence was accepted only in proof of the division in status or to prove the details of the partition. When the question directly arises hereafter in this Court, we may have to consider whether the Full Bench decision in Ramayya v. Achamma (1944) 2 M.L.J. 164 : I.L.R. (1945) Mad. 160 (F.B.), is good law after the decision of the Judicial Committee.

    5. If the appellants had adduced other evidence to prove that a partition took place in 1937 allotting the whole of A schedule property to the appellants, the fact that the compromise decree is inadmissible in evidence may not have stood in the way of the appellants' succeeding in the case. But unfortunately the appel-lants did not adduce any other evidence to prove that there was a partition in 1937 apart from the production of the certified copies of the compromise and the compro-mise decree. There was only one witness for the plaintiff and one witness for the defendant and on this evidence it is not possible to find the partition apart from the compromise and the compromise decree. The result is no doubt very unfortunate but the appellants might perhaps have cured the defect by adducing other evidence and that, they have not done.

    6. The effect of not engrossing the final decree for partition on a non-judicial stamp-paper has been the subject of various decisions of this and other High Courts. In Jotindra Mohan Tagore v. Brjoy Chand Mahatap (1904) I.L.R. 32 Cal. 483, it was held that a decree which is not drawn "up on a proper non-judicial stamp paper is a nullity and that the suit must be considered to be pending. In Satyanandhan v. Nanayya (1937) 47 L.W. 51. 844, Burn and Lakshmana Rao, JJ., observed that " a final decree for partition has no existence as a decree until it. is engrossed on the proper non-judicial stamp paper; till that is done the suit is pending." A slightly different view has been expressed in Venkatappa v. Venkatappa (1943) 2 M.L.J. 112 : I.L.R. 1944 Mad. 266. It may be that the appellants are entitled to approach the Sub-Court of Calicut and point out that the decree in O.S. No. 34 of 1935 must still be considered to be pending and request the Court to pass a final decree after supplying the proper non-judicial stamp paper. In that case it will be open of course to the other parties to raise such objections as are open to them and if a final decree is hereafter passed, what effect it will have on the rights of the plaintiff in this suit is another matter Even if the plaintiff in this suit is not to be bound by any later decree drawn in O.S. No. 34 of 1935 on a proper non-judicial stamp paper it will still be open to the appellants to urge as against the other co-sharers and particularly against the heirs-at-law of Ahammad to say that having regard to the events that have hap-pened they should not be given any share in any of other properties particularly in items 1 and 3 of the B schedule.

    7. The next question urged is whether the purchaser of a co-owner's share in one particular item can file a suit for recovery of the share that he has purchased in one item without filing a suit for general partition. As held by this Court in Pakkiri Kanni v. Manjoor Sahib (1923) 45 M.L.J. 321 : I.L.R. 46 Mad., there is no such disability laid on the purchaser of a co-owner's share. It is open in such cases to the co-sharers who are impleaded as defendants to ask the Court to effect a division of all the properties. The plea raised in the written statement was that the suit is bad for partial partition and that it must include all the properties held by the family or by the co-owners. The issue raised is as follows : "Is the suit as framed unsustainable as one for partial partition?" In this form the question is concluded by the decision of this Court in Pakkiri Kanni v. Manjoor Saheb (1923) 45 M.L.J. 321 : I.L.R. 46 Mad. 844 and that is probably the reason why the advocate appearing for the sixth defendant who is one of the appellants expressly gave up this issue before the trial Court.

    8. Mr. S.T. Srinivasagopalachari, the learned advocate for the appellants then urges that there are equities which have to be worked out between the co-sharers, particularly, between the heirs of Ahammad on the one side and the appellants on the other side and that those equities arise out of the fact that Ahammad had drawn large amounts from the assets of the partnership and from the other assets of the famiy. If Ahammad had filed a suit for partition, he would certainly be bound by all the equities in favour of the other co-sharers. He cannot get a decree for partition of the properties without meeting all the liabilities. A purchaser from one of the co-sharers is in no better position than the alienor himself. Whether the purchase is by private alienation or Court-sale, in either case the purchaser cannot have a higher right than that of the co-owner whose rights he has purchased. Here again the trouble is that there is no plea in the written statement that even if the plaintiff is entitled to a partition and delivery of one-third of the A schedule properties he should be directed to pay any sum or sums to the appellants. The only plea that was raised was that the plaintiff is not entitled to any share in the A schedule property for the reason that in adjustment of the previous indebtedness of Ahammad the whole of the A schedule property had been validly allotted to the appellants. There is no plea that any equity should be worked out in this suit as against the plaintiff. Here again it is unfortunate that owing to lack of pleading and proof the appellants have to suffer. As there was no pleading there was no issue regarding the question of equities in favour of the appellants and there was no evidence about it.

    9. The last point urged is that the property was really partnership property and that it was not validly attached under Order 21, Rule 49, Civil Procedure Code. Both the Courts have found that the property was not partnership property but that it was property held as tenants in common by the three brothers. This is a question of fact and I see no reason to interfere with that finding.

    10. The result is that the second appeal fails and is dismissed. I make no order as to costs of this Court. No leave.

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    Ittoli Moidin Koya'S Son Koyatti And Others v. Imbichi Koya And Others.
    (Mar 28, 1946)