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  • Section 28 of the Code of Civil Procedure.
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citation codes
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  • Section 28 of the Code of Civil Procedure.
Smart Summary

Concise Analytical Summary of the Opinion

Factual and Procedural Background

This appeal arises from a decree of the Subordinate Judge that dismissed a suit without costs. The Subordinate Judge's decision on several substantial issues of fact (issues 1, 2, 3 and 6) was in the plaintiff's favour and those factual findings were not challenged on appeal. The operative factual findings accepted by the courts include:

  • By agreement between three brothers a sale by auction of certain family properties was effected, and the plaintiff became purchaser; the full terms are set out in Exhibit E.
  • The sale included (a) the huk right of the Vachakarapatti Choultry, (b) the lands attached to the Choultry, and (c) certain other family lands in respect of which the Kudivaram is vested in the family. The defendants contended that the latter items were charity property; there was no finding on that contention.
  • The Vachakarapatti Choultry is admitted to be a public charity. Documentary material (an Inam statement attributed to the plaintiff's father Thittarappa) records that the Inam was granted to ancestors for the purpose of conducting charity in the choultry.
  • Historical family dealings: in 1871 Thittarappa and his brothers divided family charities; the choultry at issue came to Thittarappa's share. On his death in 1877 he left three sons (the plaintiff, defendant No. 1, and a third who was a minor and is defendant No. 2). In 1877 the adult brothers agreed that although hukdarship was common to the three, it should be registered in the name of the eldest (defendant No. 1).
  • The Subordinate Judge dismissed the suit principally on the ground that a stipulation requiring a formal document to be drawn up and registered showed neither party intended to be bound until that formal document was executed; the judge relied on Ridgway v. Wharton (6 H.L.C. 238).

Legal Issues Presented

  1. Whether the arrangement between the brothers that effectively divested two brothers of management rights in a public charitable office and vested management and succession in the line of the plaintiff amounted to a valid alienation of the charitable office.
  2. Whether the parties were bound by the agreement in fact, despite an intention to have a formal document subsequently drawn and registered (i.e., whether the agreement was complete and enforceable notwithstanding the contemplated formal instrument).
  3. Whether, when part of a composite contract is void (for example, in respect of charitable office), the plaintiff can obtain specific performance as to the lawful remainder, particularly where the plaintiff offers to pay the whole agreed consideration for the lawful part.
  4. Whether a minor (defendant No. 3 in the opinion), who was not a party to the contract, was properly joined as a defendant in a suit for specific performance and related declaratory relief concerning the existence and binding nature of the contract.

Arguments of the Parties

Plaintiff's Arguments

  • The plaintiff's counsel argued that an interested family member may renounce or waive his right to manage a religious or charitable institution, citing Manchuram v. Pranshankar (I.L.R., 6 B, 298).
  • The plaintiff offered to pay the full consideration (Rs. 7,500) and stated willingness to treat that payment as the price of the one property in respect of which the agreement was lawful, enabling specific performance of the lawful part.

Defendants' Arguments

  • The Subordinate Judge (and by implication the defendants at trial) treated the stipulation to execute and register a formal document as evidencing that neither party intended to be bound until formalities were completed—reliance was placed on Ridgway v. Wharton.
  • The defendants' counsel at the appellate hearing objected that the plaintiff's offer to limit payment to the lawful part had not been made in the court below.

Minor Defendant (Defendant No. 3) — Objection

  • It was argued on behalf of the minor defendant that he was improperly made a party to a suit for specific performance because he was not a party to the contract and no other cause of action could properly be joined in that suit.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Manchuram v. Pranshankar (I.L.R., 6 B, 298) That an interested member of a family may renounce or waive his right to the office of superintending a religious or charitable institution. Referred to as the plaintiff's primary authority for the proposition that a family member can waive management rights, but the court distinguished the present transaction as amounting to an impermissible alienation rather than a simple waiver.
Kuppa Gurukal v. Dorasami Gurukal (I.L.R., 6 M. 76) Authority indicating that alienation of such an office is invalid even when the alienee is a family member. Applied to support the conclusion that the arrangement purporting to vest management in the plaintiff and his heirs to the exclusion of his brothers was an invalid alienation.
Narayana v. Ranga (I.L.R., 15 M. 183) Analogous authority on invalidity of alienation of charitable offices. Used alongside Kuppa Gurukal to show that it makes no difference that the alienee is a member of the same family; the alienation is invalid.
Ridgway v. Wharton (6 H.L.C. 238) Authority relied on to show that parties may not be bound until a formal document is executed in certain contexts. Relied upon by the Subordinate Judge to justify dismissal; the appellate court distinguished it and concluded the Subordinate Judge had misunderstood the law as expounded in the later observations of Lord Cranworth.
Lord Cranworth (observations cited at 6 H.L.C. 268) Statement that parties may be bound by an agreement despite an intention to have a formal agreement drawn up subsequently. Applied by the appellate court to hold that here the terms were finally determined and the parties were bound notwithstanding the intention to prepare a formal document.
Honduras Railway Company v. Tucker (L.R., 2 Ex. Div. 301) Explains reasons for permitting broad joinder of defendants where the right to relief is alleged to exist against them; noted that specific performance was part of the relief claimed in that case. Invoked to justify joining the minor defendant under Section 28 of the Code of Civil Procedure and to show that combining declaratory relief concerning the contract with a claim for specific performance against other defendants is appropriate.
Luckumsey Ookerdu v. Fazulla Cassumbhoy (I.L.R., 5 B, 189) Case noted to be somewhat resembling the present but which did not mention the Honduras Railway authority. Mentioned by the court to contrast authorities; no direct application beyond this observation.
Janokinath Hookerjee v. Runjun Chuckerbutty (I.L.R., 4 C. 949) Authority illustrating that it is immaterial if relief against different defendants is not identical, provided the matters are the same. Applied to support the joinder of the minor defendant even though identical relief (specific performance) could not be granted against him.
Rajdhur Chowdhry v. Kallkristna Bhattacharjya (8 C. 963) Similar authority to the previous case on joinder and the immateriality of differing relief against co-defendants. Used with Janokinath Hookerjee to support the proposition that the present case falls within the reason of that rule and that joinder was proper.

Court's Reasoning and Analysis

The court's analysis proceeded in several discrete steps, each founded on the facts and authorities expressly discussed in the opinion:

  1. Factual findings already made by the Subordinate Judge were accepted as not being questioned on appeal. Those findings established that a sale arrangement between three brothers occurred and that the plaintiff became purchaser; the sale included the huk right over the Vachakarapatti Choultry and associated lands.
  2. On the nature of the choultry and the intended succession to its management, the court observed that the documentary material was scanty but concluded, on the available evidence (including the Inam statement and the family pedigree), that the probable intention of the founder was that the office of manager should be held in common by the family of the original holder. The court considered that no other sensible rule of succession was suggested by the record.
  3. The court examined whether the 1871 arrangement and later transactions amounted to a permissible waiver of rights by coparceners or whether they constituted an alienation of a charitable office. It acknowledged the plaintiff's counsel's submission (and Manchuram v. Pranshankar) that a family member may renounce or waive a managerial right. However, the court distinguished such a waiver from the present transaction, concluding that the arrangement before it was intended to divest the other brothers entirely of control and to vest the management and succession exclusively in the plaintiff and his heirs—i.e., an alienation.
  4. Relying on authorities such as Kuppa Gurukal v. Dorasami Gurukal and Narayana v. Ranga, the court held that such an alienation of a charitable office is invalid even where the alienee is a member of the same family.
  5. The court addressed the Subordinate Judge's conclusion that the presence of a stipulation for a formal, registered document showed no intention to be bound until that document was executed. The appellate court found this to be a misunderstanding of the law as expressed by Lord Cranworth: the decisive question is whether the terms were definitively agreed or still in negotiation. Here the court found the terms to have been finally determined, and therefore the parties were bound notwithstanding intention to have a formal agreement prepared.
  6. Regarding partial illegality, the court considered whether specific performance could be decreed for the lawful portion of the contract. Noting that the plaintiff was under contractual obligation to pay Rs. 7,500 as price for two properties (and it was unclear whether payment had been made), the plaintiff offered to pay the full amount as the price of the single property that was lawful. On that footing the court saw no bar to compelling performance of the lawful part of the contract.
  7. On the joinder of the minor defendant, the court reasoned that Section 28 of the Code of Civil Procedure permits joinder of all persons against whom relief is alleged to exist, whether jointly, severally or in the alternative. The court relied on Honduras Railway Company v. Tucker and other authorities to hold that the minor was properly joined so that adjudication could be had both on the existence of the contract and on whether the contract is such as to bind him; the fact that specific performance could not be granted against the minor did not preclude his inclusion.
  8. The court indicated that certain questions (including whether the arrangement was made in fraud of the minor's interests and the issues numbered 8, 9, 10 and 11) remained undetermined and required findings. The court also declined to disturb the Subordinate Judge's discretion on costs relating to memoranda of objections.

Holding and Implications

The court's essential rulings and their immediate effects as stated in the opinion are:

  • Alienation Invalid: The court held that the arrangement which was intended to divest the co-heirs altogether of their right of control over the Vachakarapatti Choultry and to vest management and succession exclusively in the plaintiff and his heirs amounted to an alienation of the charitable office and was invalid. The court expressly endorsed the Subordinate Judge's conclusion on this point.
  • Agreement Binding Despite Formality Clause: The appellate court held that the Subordinate Judge erred in thinking the stipulation to draw and register a formal document showed that the parties did not intend to be bound; instead, where terms are definitively settled the parties are bound notwithstanding a later formal instrument was contemplated.
  • Specific Performance in Part Permissible: Because the plaintiff offered to pay the agreed consideration and to treat it as the price of the lawfully transferrable property, the court found no obstacle to decreeing specific performance as to the lawful part of the contract.
  • Minor Properly Joined: The court held that the minor defendant was properly joined under Section 28 of the Code of Civil Procedure for purposes of adjudicating the existence and binding nature of the contract as it might affect him; the joinder was appropriate even though identical relief could not be granted against him.
  • Practical disposition and directions: The court required that findings on the evidence already recorded be returned within one month from receipt of the order, and allowed seven days for filing objections after findings are posted. The court declined to interfere with the Subordinate Judge's exercise of discretion on costs relating to memoranda of objections.

Note: The opinion does not purport to lay down a broader novel legal precedent beyond applying and distinguishing existing authorities; its practical effect is to invalidate the attempted alienation of the charitable office, permit specific performance in respect of the lawful portion of the contract (subject to payment), confirm proper joinder of the minor, and to remit outstanding issues (including issues 8–11 and the question of potential fraud on the minor) for findings.

    Alagappa Mudaliar v. Sivarama Sundara Mudaliar And

    1. This is an appeal from the decree of the Subordinate Judge dismissing the suit without costs. The judgment of the Subordinate Judge which on the substantial issues of fact (the 1st, 2nd, 3rd and 6th is in the plaintiff's favour, proceeds upon contain grounds of law upon which also the arguments in the hearing of the appeal turned. The judge's findings on the facts were not questioned. It is found as a fact that by agreement between the three brothers a sale of certain properties by auction was effected and the plaintiff became the purchaser. The terms of the whole arrangement are set out in Exhibit E. This sale included among other things the huk right of Vachakarapatti Choultry, the lands attached to the Choultry and certain other lands the Kudivaram of which is vested in the family. As to these latter it is asserted on the defendant's behalf that they also are part of the charity property. There has been no finding on the point.

    2. The Vachakarapatti Choultry is one of several charities managed by the family to which the parties belong. It is admittedly a public charity. There is no direct evidence as to the conditions fixed by the founder for the management of the choultry and its property or for the devolution of the right of management. In the Inam statement made by the plaintiff's fattier Thittarappa, Chidambaranatha who is described as the latter's great grandfather and manager of the charity, appears under the heading "name of the original holder." In another column it is said "the Inam was granted to my ancestors by the Carnatic Rajahs for the purpose of conducting charity in the choultry etc." Thittarappa, it appears, was one of three brothers wild having previously divided among themselves their family property, in 1871, proceeded to divide the family charities. It is recited in the deed of 26th May 1871 that it was at first settled to manage in common the charities attached to the family, but that they had since come to another arrangement with regard to the same. Under that arrangement the Choultry now in question fell to the share of the plaintiff's father. He died in July 1877 leaving 2 sons Alagappa and Sivarama Sundara the plaintiff and defendant No. 1 and a third, then a minor, now defendant No. 2. In the same year it was agreed between the two adult brothers, that although the hukdarship was common to three, it should be registered in the name of the eldest the defendant No. 1. This is all the evidence adduced with regard to the management of the Choultry and it is not likely that more would be forthcoming, in as much as it appears from the pedigree that the grand-father and great grand fattier of Thittarappa each left only-one son. Judging from the scanty materials available, we think it must be taken to have been the intention of the founder of the Choultry that the office of manager should be held in common by the family of the original holder. No other rule of succession can well be suggested. The fact that in 1871 a division of the charities then belonging to the family took place is by itself no ground for holding that any other rule than that above stated holds good with regard to this choultry. It was argued by the plaintiff's Vakil that although the office of superintending religious or charitable institutions cannot be alienated like ordinary property, it is competent to any one member of the family interested to renounce or waive his right in the matter, Manchuram v. Pranshankar (I. L R, 6 B, 298). Our attention was also called to the cases in which it has been held that one person may by force of the law of limitation lose his right to such an office and another may in the same manner acquire it. It is true that there is an apparent inconsistency in holding that by operation of law an alienation may be effected which cannot be effected by an act of the party. It may be suggested that the explanation lies in the fact that the law of limitation is a law of a general and positive character and that no exemption from it is allowed in the case of charitable or religious offices. It is well settled that such offices cannot be alienated by the act of parties. The question then is whether the arrangement made in the present case amounts to an alienation. If it was a mere arrangement for the more convenient management of the choultry, reserving to the plaintiff's brothers their right of control and, if necessary, of resumption of actual management, then it might be said that there would no interference with the supposed will of the founder and that the arrangement would be lawful. To that extent it seems clear that any coparcener jointly entitled to management may waive his rights. But the transaction now before us is of a very different character. It is clearly intended that the brothers other than the plaintiff shall divest themselves altogether of all right of control over the choultry. For the future it was intended that the right of management should devolve in the line of Plaintiff and his heirs to the exclusion of his brothers. In our opinion it makes no difference that the alienee is a member of the same family. (See Kuppa Gurukal v. Dorasami Gurukal, I. L. R., 6. M. 76 and Narayana v. Ranga, I. L. R, 15 M, 183). We think the Subordinate Judge was right in holding the alienation to be invalid.

    3. The next question is whether the judge was right, in consequence of this ruling and for the other reasons given by him, in dismissing the suit altogether. His main reason for dismissing it was that in his view the stipulation that a formal document should be drawn up and registered showed that neither party intended to be bound until that was done. The Judge refers to Ridgway v. Wharton, 6 H. L. C. 238.

    4. In our judgment, the Subordinate Judge has misunderstood the law and the observations made in the case cited. The plain question is whether in fact the terms of the agreement have been definitively settled, or whether the matter rests in the stage of negotiation. Here there is no doubt that terms of the arrangement had been finally determined. There was a full and complete agreement between the parties and they must, as observed by Lord Cranworth, be bound by it, notwithstanding that they intended to have a formal agreement drawn up. (6. H. L. C. 268).

    5. Then it is said that, as part of the agreement is void and therefore cannot be enforced, the plaintiff ought not to have a decree (sic) specific performance as to the remainder. But for the offer made before us by the plaintiff's vakil, there, would certainly be a difficulty in decreeing specific performance in part. The plaintiff is by the contract under an obligation to pay Rs. 7,500 as the price of two properties. It is not clear whether he has paid the money, or not. However, he is willing to pay it as the price of the one property only in respect of which the agreement is lawful. That being so, no question arises as to the apportioament of the money between the legal and the illegal parts of the transaction. The plaintiff being content to pay the whole consideration, we see no reason why the defendants should not be compelled to perform that part of the contract which is lawful. The defendant's Vakil could not suggest that there would be anything inequitable in such a decree; he only objected that the plaintiff's offer was not made in the court below. This is a matter with which we can deal in our order as to costs.

    6. On behalf of the defendant No. 3 the minor son of defendant No. 1, a further objection is taken to the frame of the suit. It is said that he was improperly made a party to a suit for specific performance, because he was not a party to the contract and no other cause of action could properly be joined in this suit. It is clear that against him there can be no decree for specific performance, and indeed the plaintiff does not ask for such relief against him. But the plaintiff is interested in having him before the court in order to obtain an adjudication against him as well with regard to the existance of the contract as with regard to the question whether the contract is of such a nature as to be binding on him. The objection that such a decree as is required against the defend ant No. 3 is one which cannot be combined with a decree for specific performance against the other defendants appears to us to be met by Section 28 of the Code of Civil Procedure. According to that section all persons may be joined as defendants against whom the right to any relief is alleged to exist whether jointly, severally or in the alternative in respect of the same matter. The reasons for giving this latitude are explained in Honduras Railway Company v. Tucker L. R., 2 Ex. Division 301 where also specific performance was part of the relief claimed. We observe that this authority is not mentioned in Luckumsey Ookerdu v. Fazulla Cassumbhoy, I. L.R, 5 B, 189, a case somewhat resembling (sic) present. It appears to us that there is here one and the same matter, namely, the contract between the plaintiff and his adult brothers in respect of which he has a right to relief against them and also against the minor defendant. It is immaterial that the relief is not the same in born cases Janokinath Hookerjee v. Runjun Chuckerbutty I L. R., 4 C. 949 and Rajdhur Chowdhry v. Kallkristna Bhattacharjya, 8 C, 963). Certainly the present case is within the reason of the rule, for it would be most inconvenient to leave to be decided in another suit against the minor defendant the question above mentioned. Of these questions, the latter has been left undetermined, although in the written statement of the minor defendant there is an allegation that the arrangement between the three brothers is prejudicial to his interests. If the plaintiff desire to have any decree against the minor defendant, there must be a finding on the issue whether the said arrangement was made in fraud of the interests of the minor defendant. There must also be findings on the 8th, 9th, 10th and 11th issues.

    7. As to the memoranda of objections, we see no reason to interfere in the matter of costs on which the Subordinate Judge has exercised his discretion.

    8. Findings on the evidence already recorded are to be returned within one month from the date of the receipt of this order and seven days will be allowed for filing objections after the findings have been posted up in this Court.

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    Alagappa Mudaliar v. Sivarama Sundara Mudaliar And
    (Oct 25, 1894)