- Bookmark
- Share
- CaseIQ
Tara Kiran v. Hari Kishan Das
Case Summary: Plaintiffs' Appeal concerning attachability of joint family property
Factual and Procedural Background
Jagannath Prasad, with his two minor sons (the present plaintiffs), formed a joint Hindu family and owned substantial property. Around 1918 Jagannath Prasad became heavily indebted. In October 1918 he was arrested in connection with the Katarpur riot, remained in jail until August 1919, and was later convicted (initially sentenced to transportation for life, reduced to seven years' imprisonment).
While Jagannath Prasad was in jail, on 10 February 1919 he executed a deed of gift of a 5 biswa share in manza Nasirpur Khurd in favour of his wife Musammat Parbati. On 27 June 1921 Musammat Parbati executed a document purporting to be a mortgage-deed for Rs. 15,500 in favour of Hari Kishan Das (defendant), a document attested by Jagannath Prasad. The deed recited that there were debts due from the lady and her husband and hypothecated the gifted share.
In 1924 the defendant sued and obtained a simple money decree for recovery of the amount, but failed to prove that the mortgage-document had been duly attested to create a charge. In execution of that decree the defendant sought to attach the family property. Objections on behalf of the minors were disallowed in the execution proceedings, and the present suit for a declaration (by the sons) was filed challenging attachability/saleability of the joint property in execution of the decree against their mother.
Legal Issues Presented
- Whether the deed of gift executed by Jagannath Prasad in favour of his wife conferred an absolute estate on her or was not binding on the minor sons.
- Whether the mortgage-deed and the debt for which the decree was obtained could be enforced by attaching and selling the joint family property of the plaintiffs.
- Whether the sums raised by Musammat Parbati (including those raised to pay prior debts of Jagannath Prasad or to meet defence expenses) were binding on the plaintiffs and therefore could be satisfied from the family property.
Arguments of the Parties
Plaintiffs' Arguments
- The deed purporting to be a deed of gift in favour of their mother was wholly fictitious and was never given effect to; she never obtained possession under it.
- The father (Jagannath Prasad) had no legal power to gift the property in a manner that would bind the plaintiffs (the minor sons); therefore the transfer was not binding on them.
Defendant's Arguments
- It was the duty of Jagannath Prasad to maintain his wife and, in that light, he gifted a small portion of the estate to her as stridhan, making her absolute owner.
- The mortgage-deed was executed to raise money to pay off the previous debts of Jagannath Prasad and to meet expenses of his criminal defence; it was executed with the consent of Jagannath Prasad and is binding on the plaintiffs.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Debi Mangal Prasad v. Mahadeo Prasad (Privy Council) | Held that a share allotted to a widow on partition in lieu of maintenance did not confer an absolute estate on her but devolved on the heirs of her husband after her death. | The court cited this to illustrate that if a gift were made in lieu of maintenance it would not, on principle, confer an absolute estate and might terminate when the necessity for maintenance disappeared—thus weighing against treating the gift as absolute if it were for maintenance. |
| Devji v. Sambhu | The opinion references a principle from this case (as stated in the text) concerning situations where property did not devolve on the widow but on minor sons and a decree was obtained against the widow personally without impleading the minors. | The court regarded the present case as somewhat analogous and applied the underlying principle to hold it would be inequitable to deny that the plaintiffs were bound by the decree obtained against their mother in respect of debts that were really binding on the family. |
| Veerabadra Aiyar v. Marudaga Nachiar (Madras High Court) | The Madras High Court approved the principle laid down in Devji v. Sambhu (as stated in the opinion). | The court cited that approval to support using the same underlying equitable principle in the present case to bind the plaintiffs to the decree (subject to the qualifications the court later imposes). |
Court's Reasoning and Analysis
The court reviewed the findings of the Subordinate Judge and the evidence before the trial court and proceeded by testing the competing explanations for the gift and for the borrowing:
- The Subordinate Judge had rejected the plaintiffs' assertion that the gift was fictitious or made to avoid confiscation, and had found the gift to be an absolute gift making Musammat Parbati full owner.
- The Subordinate Judge also found that the money borrowed by Musammat Parbati under the mortgage-deed was largely raised to pay debts of Jagannath Prasad and to meet defence expenses, and that as de facto guardian she was entitled to contract such debts. The court examined that finding.
- The appellate court found difficulty accepting the Subordinate Judge's alternative theory that the gift had been made to enable the wife to raise funds for the defence, because (a) that theory had not been pleaded by the defendant, (b) it was contrary to the recital in the deed of gift and documentary indications (e.g., interrogatory framing), and (c) the bulk of the sums charged related to pre-existing debts incurred long before the prosecution.
- The court considered the maintenance hypothesis (that the gift was in lieu of maintenance). It accepted that, on principle (and as illustrated by Debi Mangal Prasad v. Mahadeo Prasad), a transfer in lieu of maintenance would not necessarily confer an absolute estate and might terminate when the necessity for maintenance ended. The court accepted the trial court's finding that the share gifted was only a fractional share (one-fifth or one-sixth) and not unreasonably large.
-
The court stated it found the Subordinate Judge's second ground (practical management by the wife during the husband's confinement and the necessity of raising funds) to be the sounder foundation for the decision. Facts supporting that view included:
- Jagannath was confined and unable to manage the estate; the minor sons were unable to manage it; the wife was the only person able to manage and was the de facto guardian.
- Large debts were outstanding against the husband; the family had to defend him in an expensive criminal trial with substantial expenditure (Jagannath himself admitted about Rs. 20,000–25,000 was spent on defence and that a good part was borrowed by his wife).
- Documentary evidence (promissory notes and creditor accounts) showed borrowing commenced while Jagannath was under arrest/trial, and some debts pre-dated the criminal prosecution.
- The court observed there was evidence that Hari Kishan Das paid off specified previous debts listed in the deed and that the wife raised money with Jagannath's full consent (he attested the mortgage document). Letters and admissions supported good faith on defendant's part.
- The court acknowledged that the plaintiffs were technically not impleaded in the earlier suit by Hari Kishan Das, and that had they been, they would likely have been represented by their mother as de facto guardian. The court found that they had not been substantially prejudiced by non-impleading because they were not challenging those underlying debts.
- Applying the equitable principle illustrated by Devji v. Sambhu (and its approval in Veerabadra Aiyar v. Marudaga Nachiar), the court concluded it would be inequitable to hold that the plaintiffs are not bound by the decree obtained against their mother insofar as the debt was incurred to pay previous debts of the father which were binding on the family.
- However, the defendant failed to prove that two specific items—debts raised by promissory notes dated 30 September 1920 and 22 July 1921 (i.e., the notes of 1920 and 1921)—were in any way binding on the plaintiffs. The court drew a distinction for those items, noting that those particular borrowings were long after the conviction and could not be shown to have been debts binding on the family.
Holding and Implications
DISPOSITION: The appeal is allowed in part.
Core Ruling: The court modified the decree of the court below to declare that the family property of the plaintiffs is not liable to attachment and sale to the extent of the amount (together with interest) due under the promissory notes of 1920 and 1921; the family property can, however, be attached and sold in satisfaction of the decree for the remaining amount.
Consequences for the parties:
- The defendant may proceed to attach and sell the family property only for the portion of the decree that represents amounts (and interest) other than those falling under the promissory notes of 1920 and 1921.
- The family property is protected from attachment for the sums attributable to the two specified promissory notes (1920 and 1921).
- Costs are to be apportioned between the parties in proportion to their success and failure.
Broader implications: The opinion applies pre-existing principles (as discussed in the cited authorities) to the factual matrix of this case but does not purport to lay down a novel precedent beyond the application of those principles. The direct legal effect is limited to modification of the decree as above.
Appeal allowed in part.
Sulaiman and Kendall, JJ.:— This is a plaintiffs' appeal arising out of a suit for a declaration by the sons of Jagannath Prasad that the joint property belonging to the family was not attachable and saleable in execution of a simple money decree obtained by the defendant No. 1 against their mother. The facts leading up to this litigation are as follows:—Jagannath Prasad and his two minor sons, the present plaintiffs, formed a joint Hindu family and owned considerable property. About 1918, Jagannath Prasad became heavily indebted, though it is not clear that there were any mortgages on his estate in existence at that time. In October, 1918, he was arrested in connection with the Katarpur riot and admittedly remained in jail till August, 1919, when he was actually convicted. At first he was ordered to be transported for life, but later on the sentence was reduced to one of seven years' imprisonment.
On the 10th of February, 1919, while Jagannath Prasad was in jail, he executed a deed of gift of a 5 biswa share in manza Nasirpur Khurd in favour of his wife Musammat Parbati. The recital, contained in the deed is that she was faithful and obedient to him and he had love for her and in consideration thereof he had gifted the property to her. Subsequently, on the 27th of June, 1921, which was long-after his conviction, Musammat Parbati executed a deed purporting to be a mortgage-deed for Rs. 15,500 in favour of the defendant Hari Kishan Das. This document was attested by Jagannath Prasad himself. It recited that there were debts due from the lady and her husband Jagannath Prasad and it was necessary to make arrangements for their payment. The consideration consisted of Rs. 3,133 set off against an amount due to the creditor himself, about Rs. 3,000 due from the executant on the basis of promissory notes executed by her and the balance of about Rs. 8,000 and odd on account of previous debts of Jagannath Prasad. Under this document she hypothecated the share which had been gifted to her by her husband. In 1924, the defendant sued and obtained a decree for recovery of this amount, but the decree was only a simple money decree inasmuch as he failed to prove that the document had been duly attested and was effective to create a charge on the property. In execution of this decree he sought to attach the very property which had been included in the deed. An objection was raised on behalf of the minors in the execution department, and these objections being disallowed, the present suit for declaration was filed.
The plaintiffs' case in the plaint was that the document purporting to be a deed of gift in favour of their mother was a wholly fictitious document and that it was never given effect to and she never obtained possession under it. It was further assorted that the father had no power in law; to gift the property to the mother and therefore, the transfer was in no way binding on the plaintiffs. In his written statement the defendant pleaded that it was the duty of Jagannath Prasad to maintain his wife, Musammat Parbati, and to provide her food and raiment and that it was with that object that he gifted a very small portion of the estate to her and gave it to her as stridhan property of which she became an absolute owner. The written statement then went on to allege that the mortgage-deed was executed for the purpose of raising money to pay off the previous debts of Jagannath Prasad and for raising money to meet the expenses of the criminal case which was pending against him and that the document was executed with the consent of Jagannath Prasad and was binding on the plaintiffs.
The learned Subordinate Judge has rejected the theory that the deed of gift was executed in lieu of maintenance and has also rejected the theory put forward in evidence on behalf of the plaintiffs that it was a fictitious document executed in anticipation of an apprehended confiscation of Jagannath's estate. His finding amounts to this that the property was given to Musammat Parbati under an absolute gift by which she became full owner. He has then gone on to find that the money under the mortgage was borrowed by Musammat Parbati for paying the debts of Jagannath Prasad and for defraying the expenses of the defence of her husband and, therefore, she was entitled as de facto guardian of the plaintiffs to contract debts to pay of such previous debts of their father. On these findings he has decided the main issues which arose in the case against the plaintiffs. As the defendant did not in the written statement take up the position that the gift was made to Musammat Parbati in order to enable her to raise funds for the purpose of meeting the expenses of the defence, and inasmuch as we find that the bulk of the amount raised under the mortgage-deed was to pay off the debts which had been incurred long before the criminal prosecution, we find it very difficult to accept the hypothesis of the learned Subordinate Judge that the transfer was made with that object in view. As a matter of fact even up to the time when interrogatories were sent for the examination of Jagannath Prasad the defendant's case appears to have been that the gift was made for Musammat Parbati's maintenance, as the frame of the question No. 10 in the interrogatories would suggest. This theory is, therefore, contrary to the defendant's pleading and contrary to the recital in the deed of gift and we find it difficult to accept it. If the gift was made for the purposes of maintenance of Musammat Parbati then it will be very difficult to hold that it conferred an absolute estate on her. On principle it would seem that when the necessity for the maintenance should disappear, the gift itself would come to an end. We might refer to the case of their Lordships of the Privy Council—Debi Mangal Prasad v. Mahadeo Prasad where the share allotted to a widow on a partition in lieu of her maintenance was held not to confer an absolute estate on her but to devolve on the heirs of her husband after her death. There would be no objection to the validity of a transfer in lieu of maintenance, because in our opinion the view of the court below that the property transferred was only a fractional share of the whole estate is correct. According to its view it amounted to one-fifth of the whole estate and according to the evidence of the witnesses for the defendants it did not amount to more than one-sixth—in any case it would not be an unreasonably large share.
We are however, of opinion that the second ground which is made the basis of the decision of the court below is sounder. The position at the time was this, Jagannath Prasad was confined in jail and was unable to look after the management of the estate. His two sons were minors of tender age and were utterly unable to manage the estate. The only person who could look after the affairs under the circumstances was his wife. She was also the de facto guardian of the minor sons for the time being. At that time there were large debts outstanding against the husband Jagannath Prasad. There is no suggestion in this case that these debts were in any way tainted with immorality or illegality, nor has it been suggested that these debts were not in fact due. The position, therefore, was that the creditors of Jagannath would have sued for their debts and in execution of the decrees obtained by them would have proceeded against the family estate by attachment and sold it off in satisfaction of their claims. It is also a fact that the family had to defend Jagannath Prasad in the criminal case pending against him. That case proved to be very expensive and according to Jagannath Prasad's own statement something like Rs. 20,000 or 25,000 was spent by the members of his family for his defence. Jagannath Prasad admits that a good part of this amount was borrowed by his wife Musammat Parbati. Some of the accounts of the creditors like those of Khub Chand show that the borrowing commenced after Jagannath had been actually arrested. One of the promissory notes on which money was borrowed by Musammat Parbati is dated the 1st of July, 1919, while Jagannath Prasad was undergoing his trial. There was, therefore, full justification for the court below to record a finding that the bulk of the amount was raised either for the purpose of paying off debts due from Jagannath Prasad or for meeting the expenses of his defence. This, however, cannot be said with regard to two items borrowed by Musammat Parbati under promissory notes, dated the 30th of September, 1920, and the 22nd of July, 1921, which were long after the conviction of Jagannath Prasad.
Even when allowing the creditors to sue for their money by obtaining decrees and proceeding against the family estate, Jagannath Prasad obviously allowed his wife to raise money in order to pay off the bulk of these debts. That the defendant acted in good faith is abundantly proved by some of the letters, which have been proved, which passed between the parties at the time. In his statement Jagannath Prasad has admitted that the money was raised by his wife with his full consent and he actually attested the document. There is plenty of documentary evidence to prove that Hari Kishan Das has paid off the previous debts which were specified in the deed executed by Musammat Parbati. The only thing that had happened is that in the suit which was instituted by Hari Kishan Das, the present plaintiffs were not impleaded as parties. If they had been impleaded they would probably have been represented by their mother as de facto guardian, and in view of the fact that they were not challenging the validity of those debts it is difficult to see what defence they could have put forward to that suit. Although, therefore, technically speaking, they were not represented in that proceeding, it is quite clear that they have not been prejudiced in any way substantially. We are, therefore, of opinion that, although the decree in execution was obtained against the plaintiffs' mother on the basis of a deed executed by her under which she herself had raised the money, the debt which is the foundation of this decree was incurred in order to pay off the previous debts of the plaintiffs' father which were binding on the family. The case is somewhat analogous to the case of Devji v. Sambhu. The principle laid down in that case was subsequently approved by the Madras High Court in the case of Veerabadra Aiyar v. Marudaga Nachiar. The difference between the present case and that before the Bombay High Court is that here the husband was not dead but was in jail, whereas in the Bombay case the husband was dead, but in both cases the property did not devolve on the widow but on the minor sons, and the decree had been obtained against the widow personally without impleading the minor sons. Another distinction perhaps is that in the Bombay case the suit was brought to recover the debt due by the husband himself, whereas in the present case the suit was brought to recover the debt due by the lady which had been raised for the purpose of paying off the debts due by the husband. We, however, think that the principle underlying that case applies to the present case, and that it would be inequitable to hold that the plaintiffs are not bound by the decree obtained against their mother, even though the original debts which were the basis of the decree were really binding on them.
The defendant, however, has failed to prove that the two debts raised by Musammat Parbati on the promissory notes of 1920 and 1921 were in any way binding on the plaintiffs.
We accordingly allow this appeal in part and modify the decree of the court below to this extent that we declare that the family property of the plaintiffs is not liable to attachment and sale so far as the amount, together with interest, due on the promissory notes of 1920 and 1921 is concerned, and that it can be attached and sold in satisfaction of the decree for the remaining amount. We direct that the parties should receive and pay costs in proportion to their success and failure.
Appeal allowed in part.
Alert