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Seeyali Achari And Others v. K. Doraiswami Achari And Another.
Judgment Summary (Delivered by Govindarajachari J.)
Factual and Procedural Background
This appeal challenges the judgment and decree of Kunhiraman J. dismissing C.S. No. 46 of 1945. In that suit the appellants (plaintiffs) sued the first respondent (their uncle) and the second respondent (their father) for partition of certain properties claimed to be family properties and for separation of a three-eighths share.
Relevant facts recited in the opinion:
- Seeyali Achari (the grandfather) executed a will dated 12 May 1926 and died on 27 August 1926. The will distributed his self-acquired property among his three sons (including the respondents) and four daughters.
- A house in Kallukaran Street, Mylapore, was bequeathed to one son (Arumugha) and his wife for their lives with remainder to issue of the other sons; in default of issue it would pass to the issue of respondents 1 and 2.
- Respondents 1 and 2 were bequeathed a house (door No. 26 Kapaleeswarar North Ward Street) with directions to discharge a debt secured on that house, to divide the house in equal shares after the testator's death and to "enjoy absolutely with rights to convey by gift, exchange and sale." There was also a direction that the house "shall be mortgaged in common" to raise a loan up to Rs. 1,000 for the second respondent's marriage if necessary.
- The respondents continued to live together until 6 November 1935 when they executed a partition deed. Under that deed house No. 26 was allotted to the first respondent and a house No. 30 (purchased in 1930 in the first respondent's name) was allotted to the second respondent. Each house was valued at Rs. 10,000 in the deed.
- The plaintiffs attacked the 1935 partition as procured by fraud/undue influence and alleged suppression of joint family assets by the first respondent; they sought a declaration that the partition was null and void.
Legal Issues Presented
- Whether the property bequeathed by the father (Seeyali Achari) to his sons, though described as his self-acquired property, must be treated as ancestral property in their hands in the absence of words indicating a contrary intention.
- Whether the 1935 partition deed between the brothers is void or avoidable on grounds of undue influence, fraud or concealment of joint family assets.
- Whether the first respondent suppressed joint family assets (including an alleged purchase in 1936) so as to vitiate the 1935 partition and entitle the plaintiffs to relief.
Arguments of the Parties
Appellants' Arguments
- The appellants relied on a line of authorities beginning with Nagalingam Pillai v. Ramachandra Tevar and culminating (as cited) in Velayuthan Chettiar v. Commissioner of Income-tax, to argue that a gift/bequest by a Hindu father of his self-acquired property to his sons should be deemed ancestral in the sons' hands unless the will contains words showing a contrary intention.
- The partition deed of 1935 is said to be vitiated because the respondents treated the bequeathed property as self-acquired, mortgaged it as joint property (in 1929 and 1931), and thereby denied the rights of the second respondent's sons.
- The appellants alleged undue influence by the first respondent over the plaintiffs' father and further alleged that the first respondent must have secreted joint family funds (asserting, by way of example, a 1936 purchase of property in Cutcheri Road) to the plaintiffs' detriment.
Respondents' Arguments
- The respondents (as reflected in the trial judge's finding and in this opinion) relied on provisions of the will — notably the words that the legatees shall "enjoy absolutely with rights to convey by gift, exchange and sale" — to show an intention that the bequests be taken as complete ownership (i.e., consistent with taking as self-acquired).
- They contended that the partition of 1935 constituted an equal division between the brothers (including allocation of a house purchased in 1930) and that the appellants had not established undue influence or suppression of assets.
- On the allegation of suppressed assets, the respondents denied that the facts proved any concealment of joint family funds and pointed out absence of documentary evidence or proof that any business was a joint family business.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Nagalingam Pillai v. Ramachandra Tevar | Authority for the proposition that a gift/bequest by a Hindu father of his self-acquired property to his sons will be regarded as ancestral in the sons' hands in the absence of words indicating contrary intention. | The appellants relied on this line of cases. The trial judge referred to this decision, but the court analysed the will's language and other authorities and treated the matter by reference to the competing authorities (see subsequent discussion of Privy Council observations). |
| Velayuthan Chettiar v. Commissioner of Income-tax, Madras | Referenced as part of the line of cases affirming the Nagalingam Pillai view and noting consistent application by the High Court. | Cited by the appellants to support the presumption that the bequest should be treated as ancestral; the court noted the line of authority and the divergence of opinion elsewhere but considered the particular will language and other authority in reaching its conclusion. |
| Lal Ram Singh v. Deputy Commissioner of Partabgargh | Contains a Privy Council observation that language indicating the property should be "governed by the Act of 1869" (or similar expressions) may show an intention that the legatee take otherwise than as ancestral; the passage was cited as supportive of the view that certain expressions indicate full ownership. | The court quoted and treated the Privy Council passage as of considerable weight and relied on it (as an observation entitled to weight) to support the contention that words like "enjoy absolutely" indicate an intention that the legatees take the property otherwise than as ancestral. |
| Jugmohan Das Mangaldas v. Sri Mangaldas Nathubhoy | Example where distinct expression by the testator that he is owner at the time and then states his son is owner after his death clearly evidenced self-acquired grant; used as illustration of stronger language showing intent. | The court found this decision of limited assistance because it turned on a distinct clause in which the testator plainly declared present ownership and future transfer; the court noted factual distinction from the present case. |
| Visweswara Rao v. Varahanarasimham (Pandrang Row, J.) | Holds that words such as "enjoy absolutely with rights to convey" are usual words to indicate entire ownership but do not themselves show whether the legatee takes as self-acquired or as joint family property. | The court cited this view but observed that the Privy Council passage in Lal Ram Singh was clearer; the court regarded the Privy Council observation as sufficiently clear to indicate intention otherwise than ancestral despite the view in Visweswara Rao. |
| Bhuru Mal v. Jagannath | Principle that considerations for a trade or business carried on by a member of a joint family differ from those applicable to property, and that the question whether a business was carried on with joint family assets is a question of fact with the burden of proof on the claimants. | The court cited this authority to support the view that the appellants bore the burden of proving that the business or trade constituted joint family assets and that they failed to discharge that burden in respect of the alleged suppression of assets. |
Court's Reasoning and Analysis
The court approached the matter in stages, applying textual analysis of the will and evidential assessment of the partition and suppression allegations.
-
Interpretation of the will:
- The court examined clauses relied on by the appellants (directions to discharge the debt, to divide the house equally after the testator's death, and the provision for a mortgage in common to raise a loan for marriage expenses) and concluded that none of these clauses, by themselves, demonstrate an intention that the legatees should take the property as self-acquired rather than ancestral. The court explained that the obligation to discharge debts and the power to divide equally are consistent both with self-acquisition and with an ancestral character.
- However, the court placed particular emphasis on the clause that the legatees "shall enjoy absolutely with rights to convey by gift, exchange and sale." The court considered authorities interpreting similar expressions, particularly a passage from Lal Ram Singh (Privy Council), and treated that passage as supporting the inference that such words indicate an intention that the legatees take complete ownership (i.e., other than as ancestral).
- The court noted conflicting judicial views (for example Visweswara Rao) but regarded the Privy Council observation as sufficiently clear and weighty to support the respondents' contention that the words indicate taking other than as ancestral property.
-
Effect of these conclusions on the challenge to the 1935 partition:
- The court held that even if the property were treated as ancestral in the hands of the respondents, the 1935 partition comprised an equal division between the brothers (allocation of the 1930-purchased house and of movable property as stated) and thus the plaintiffs could have no valid grievance merely because the respondents described the properties as self-acquired.
- Thus, on the events as found, the characterization given by the respondents in the partition deed did not prejudicially affect the plaintiffs' rights; the partition showed a prima facie equal division between the brothers.
-
Allegation of suppression of joint family assets:
- The appellants' case of suppression rested largely on a 1936 purchase by the first respondent of property in Cutcheri Road for Rs. 4,000. The court observed the absence of documentary proof (no sale deed exhibited), absence of proof as to payment terms, lack of evidence that the purchase was preceded by an earlier agreement, and absence of evidence that reconstruction occurred immediately after purchase as alleged.
- The court reviewed evidence regarding the testator's business and found that the trade was that of a goldsmith employing perhaps a few workmen — not a large-scale trade producing substantial joint family assets. The court relied on the principle from Bhuru Mal v. Jagannath that whether a business was joint family property is a question of fact and that the burden of proving joint family assets rests on those asserting such a claim.
- The court noted relevant evidentiary weaknesses for the appellants: the plaintiffs did not call the second respondent (who could speak to trade and partition arrangements), the first respondent's accounts were not summoned by the plaintiffs although they could have been, and no direct proof showed that funds used for the Cutcheri Road purchase came from joint family assets.
- For these reasons the court found that the plaintiffs failed to prove suppression of joint family assets or any unfairness in the 1935 partition.
Holding and Implications
Final Holding: The appeal fails and is DISMISSED. The trial decree dismissing C.S. No. 46 of 1945 was affirmed, and costs were awarded to the first respondent.
Implications:
- Direct effect on the parties: The plaintiffs' challenge to the 1935 partition (including allegations of undue influence and suppression of assets) was rejected; the partition deed as between the brothers stands for the purposes of this litigation and the appellants obtained no relief.
- The court found that (i) the will's provision that legatees shall "enjoy absolutely with rights to convey" is an expression that the court regarded (in light of Privy Council observation) as indicating an intention that the legatees take otherwise than as ancestral property, and (ii) in any event the 1935 partition resulted in an apparently equal division so that the plaintiffs suffered no shown prejudice.
- No new legal precedent was created by this opinion beyond application and weighing of existing authorities; the decision disposed of the parties' disputes on the facts and the established authorities discussed in the opinion.
Note: This summary reproduces and synthesises only the matters expressly discussed in the provided judgment text. No additional facts or inferences have been introduced beyond those appearing in the opinion.
JUDGMENT
(Delivered by Govindarajachari J.)
This is an appeal against the judgment and decree of Kunhiraman J. dismissing C.S No. 46 of 1945 in which the appellants sued the first respondent, their uncle and the second respondent, their father, for a partition of certain properties claimed to be family properties and for the separation of their three-eigths share therein. The grandfather of the plaintiffs, Seeyali Achari, died on 27th August 1926 after having executed a will on 12th May 1926 whereby he distributed his property amongst his three sons (respondents 1 and 2 and one Arumugha) and four daughters. It is common ground that the property dealt with by Seeyali Achari's will was his self-acquired property. It is unnecessary to refer to the legacies given to the daughters. A house belonging to the testator in Kallukaran Street, Mylapore was bequeathed to Arumugha and his wife for their joint and several lives with reminder in favour of their issue, if any, natural or adopted. In the absence of such issue, the house was to pass to the issue of the other sons of Seeyali Achari, namely, respondents 1 and 2. Respondents 1 and 2 were given the house bearing door No. 26 Kapaleeswarar North Ward Street. They were directed to discharge the debt borrowed by the testator from the Mylapore Hindu Permanent Fund on the security of the said house and they were to divide the house in equal shares after the testator's death and “enjoy absolutely with rights to convey by gift, exchange and sale.” There was a further direction that “the said house shall be mortgaged in common” for raising a loan upto Rs. 1,000 for the expenses of the marriage of the second respondent if such loan should become necessary, and that such debt should be discharged by both the respondents. Respondents 1 and 2 were also given some moveables worth about Rs. 300 which they were to divide equally. The second respondent was about 13 years old at the time of his father's death. It is admitted that the respondents continued to live together till 6th November 1935 when they became divided and executed a deed of partition, whereby house No. 26 Kapaleeswarar North Ward Street was allotted to the first respondent and house No. 30 in the same street which had been purchased in the name of the first respondent sometime in 1930 was allotted to the share of the second respondent. Each house was valued at Rs. 10,000 but whether that represented the actual market value or not, it has not been suggested that the houses were not of almost equal value.
The partition deed refers to a division which took place between the brothers of “gold and silverware brass vessels and mavadai and maravadai samans which are being enjoyed by us by virtue of the will dated 12th May 1926 left by our father.” The clause containing the division of the houses runs as follows:
“We hereby divide the undermentioned house, site, etc., of the value of about Rs. 20,000 which are being enjoyed by us by virtue of the aforesaid will, dated 12th May 1926, as our self-acquisition and also as having been purchased in the name of K. Daraiswami Achari, out of us, this day as per the following particulars.”
This partition deed is attacked in the plaint as one fraudulently brought about by the first defendant “taking advantage of the want of sufficient worldly experience of the father of the plaintiffs who was a devoted brother willing to submit to any dispensation by the elder brother,” and a declaration is sought that the said partition is null and void and not binding on the plaintiffs. The allegation which we read as one of undue influence was hardly attempted to be substantiated either before the learned trial Judge or before us. There is, a further allegation in the plaint that the partition did not include all the items of joint family property and that the first respondent must have secreted joint family funds to the detriment of his brother and nephews.
The third plaintiff was not born at the time of the partition. It is not clear whether the second plaintiff was born; but it is unnecessary to say anything further about it as the first plaintiff who was admittedly born before the partition can have it set aside provided he establishes grounds sufficient in law for the purpose, and the existence or otherwise of the other plaintiffs would only be material in giving the necessary directions as to the partition or the further partition to be made in case the partition of 1935 is set aside or has to be supplemented.
It is first argued on behalf of the appellants relying on the line of cases starting with Nagalingam Pillai v. Ramachandra Tevar (1) and ending with Velayuthan Chettiar v. Commissioner of Income-tax, Madras (2) that the property bequeathed to the respondents by Seeyali Achari must be regarded as ancestral property in their hands, that consequently the respondents who continued to live together as members of a joint Hindu family even after the death of their father—their brother Arumugha having left the family even during the father's lifetime—could only deal with the property bequeathed to them as joint family property, that in fact they dealt with it as joint family property when they mortgaged it to the Mylapore Hindu Permanent Fund in 1929 and again in 1931 and that the partition entered into between the respondents in 1935 whereby they dealt with house No. 26 North Ward Street and house No. 30 North Ward Street as their self-acquisitions thus ignoring and even denying by implication the rights of the second respondent's sons, is vitiated by that very circumstance and cannot be regarded as binding on the plaintiffs or any of them. The learned trial Judge held after referring to the decision in Nagalingam Pillai v. Ramachandra Tevar that there are sufficient indications in Seeyali Achari's will to show that he intended that the respondents should take the property bequeathed to them as their self-acquired property.
The correctness of this conclusion is questioned on behalf of the appellants, and it is argued that not only is there no indication in the will that the respondents should take the property bequeathed to them as their self-acquired property, but that such indications as there are would support the normal presumption that it should be ancestral property in their hands. As pointed out in Velayuthan Chetti v. Commissioner of Income-tax, Madras the view taken in Nagalingam Pillai v. Ramachandra Tevar has been so long and so consistently followed by this High Court that notwithstanding the wide divergence of opinion between the several High Courts on this matter, as noticed in Lal Ram Singh v. Deputy Commissioner of Partabgargh (3) it must be taken that a gift or bequest by a Hindu father of his self-acquired property in favour of his sons would impress it with the character of ancestral property in the absence of words indicating a contrary intention.
The directions in the will that the first and second respondents shall discharge the debt borrowed by the testator from the Mylapore Hindu Permanent Fund on the security of the house bearing door No. 26 Kapaleeswarar North Ward Street and that they both shall, after the testator's lifetime divide the said house in equal shares, do not, in our opinion, indicate any intention on the testator's part that the house should be taken by the legatees as their self-acquired property. Even in the absence of an express direction to that effect the legatees will have to discharge the debt secured on the property bequeathed and that obligation would arise whether the legatees take the property as their self-acquired property or as ancestral property in their hands. No importance again can be attached to the provision that the respondents shall divide the house in equal shares, because even if the property is taken by the respondents as ancestral property it is open to them to divide it at any time between themselves and in such division each can take only a half share. There is here no deviation from what would have happened if the sons got the property by inheritance from their father. It would also be noticed that in the leading case of Nagalingam Pillai v. Ramachandra Tevar the will contained a similar provision that the landed estates of the testator shall be divided in equal shares among his three sons then alive and the sons who may be born to him thereafter. But this was not regarded as indicating an intention that the sons should take the property as self-acquired property, though coupled with the other clauses in the will the provision was read as indicating an intention that they should take the property in severalty.
Reliance is placed on behalf of the appellant on the clause that the said house No. 26 Kapaleeswarar North Ward Street shall be mortgaged in common subject to a limit of Rs. 1,000 for the expenses of the second respondent's marriage and that the debt shall be discharged by both the respondents. This very clause is relied on by the first respondent in support of his contention and it is stated that there would have been no need for a clause like this if the sons took the property in the same way in which they would have taken it by inheritance. This clause again is, in our opinion, of too doubtful a value to be relied upon in support of an intention one way or the other. We also think that the provision that the property bequeathed to Arumugha, the other son should be taken by the issue of the first and second respondents if Arumugha and his wife Dhanabagya should die issueless, is also of no help in deciding the point at issue. The principal reliance on behalf of the respondent is, however, on the provision that the respondent shall enjoy the house bequeathed to them “absolutely with rights to convey by gift, exchange and sale,” and the decision in Jugmohan Das Mangaldas v. Sri Mangaldas Nathubhoy and a passage occurring in Lal Ram Singh v. Deputy Commissioner of Partabgargh are cited in support.
The decision in Jugmohan Das Mangaldas v. Sri Mangaldas Nathubhoy is not of much assistance as it turned principally upon the clause wherein the testator stated distinctly that he himself is the owner of the property at the time and then expressed his intention as to the future by declaring that his son is the owner after his death. The following passage in Lal Ram Singh v. Deputy Commissioner of Partabgargh however contains a distinct expression of opinion by the Privy Council in support of the first respondent's contention:
“If the criterion were to be the intention of the father when he makes the gift, there is nothing to indicate that Hanwant Singh desired to make the estate ancestral property in the hands of Lachman. His expression of opinion or desire, whichever it may be, that the property should still be governed by the Act of 1869 would indicate the contrary view; because under the Act each holder of the estate has a power to give it or will it away.”
Their Lordships of the Privy Council do not, of course, decide upon the correctness or otherwise of the views which have been held by the several High Courts in this matter, but the above passage in the judgment of the Judicial Committee is, even as an observation, entitled to great weight. Construing a similar clause it was held in Visweswara Rao v. Varahanarasimham by Pandrang Row, J. sitting singly that these are the usual words employed in order to indicate that the entire ownership is to pass and that they do not show any intention on the part of the testator as to whether the legatee is to take the properties as self-acquired properties or as joint family properties. In the course of his judgment the learned Judge refers to Lal Ram Singh v. Deputy Commissioner of Partabgargh but we doubt whether his attention was pointedly drawn to the passage which we have just quoted from that judgment, and in any event we consider that the observation of the Privy Council is sufficiently clear that the words in question indicate an intention on the part of the testator that the property should be taken by the legatees otherwise than an ancestral property.
Even if we were to take a different view it would not take the appellants' case much further. Assuming that the property was ancestral property in the hands of the respondents as between them and their respective sons, it may still be held by them in severalty. Even if they did not hold it in severalty and held it on the other hand as joint family property, the plaintiffs can have no grievance if the entire joint family property was divided into two equal shares in 1935. The partition included the house which was purchased in 1930 and shows a prima facie equal division between the brothers. Moveable properties are also stated to have been equally divided. The mere fact that the respondents chose to describe the properties as their self-acquired properties did not prejudicially affect the plaintiffs' rights in any way because it is certainly open to them to claim that they are entitled along with their father, the second respondent, to the properties taken by him at the partition.
It was next argued on behalf of the appellants that the first respondent must have suppressed considerable assets belonging to the joint family at the time of the partition. This argument rests on very slender foundation. All that is proved is that some time in 1936 he purchased for Rs. 4,000 the house bearing door Nos. 22 and 23 in Cutcheri Road, Mylapore. The sale deed has not been exhibited. It is not known whether the entire amount was paid at the time of the sale or which portion of it was so paid. There is no proof that the sale deed was preceded by an agreement to sell the property to the first respondent or that such an agreement was entered into before the partition. It is elicited from the first respondent that he demolished the building which he purchased and that it was thoroughly rebuilt at a cost of Rs. 4,000. It is not known when this rebuilding took place. The casual reference in the plaint that this reconstruction was immediately carried out cannot avail the plaintiffs in the face of the general denial of the plaint allegations in the written statement and in the absence of any evidence to support this averment in the plaint. It is suggested on behalf of the appellants that Seeyali Achari was carrying on what the learned Advocate for the appellant describes as a trade on a large scale and that when this trade descended on Seeyali Achari's death to his sons it became joint family trade in their hands in the course of which, it is argued, the first respondent must have come into possession of funds where with he bought the Cutcheri Road house. This argument fails at every step. In the first place, it is clear from the evidence of D.Ws 2 and 3 that Seeyali Achari was doing nothing more than plying his craft as goldsmith possibly employing a few workmen on monthly wages. It is not the appellants' case that Seeyali Achari treated it as something in which his sons had any interest. Assuming that the first respondent continued to engage himself as a goldsmith after his father's death and engaged a few more workmen than his father did, it cannot possibly be described as joint family trade in the absence of any acceptable evidence to show that the second respondent was actively participating in it and that when the first respondent took the assistance of his brother, the second respondent—assuming that he hid so—he intended to treat the trade as something belonging to both of them. As pointed out by the Privy Council in Bhuru Mal v. Jagannath , the considerations which apply to a trade or business carried on by a member of a joint family are essentially different from those that would apply to a property in the hands of such a member and the question whether a business carried on by a coparcener was begun or carried on with the assistance of joint family property is a question of fact upon which the burden of proof lies upon those who claim a share in the business as constituting joint family property.
We have been taken through the evidence of the first respondent, and while we are not satisfied that his evidence is frank or straight, we must still hold that the plaintiffs have far from succeeded in establishing that their father and the first respondent were joint participants in a trade or business, the benefits of which they are entitled to. The first respondent admits having kept accounts in the course of his occupation as goldsmith, but he claims that they throw no light on the transactions entered into by him. It is pointed out that he did not disclose those documents in his affidavit, but this is perhaps because he did not consider them relevant to the points at issue in the suit. If the plaintiffs desired to rely upon the first respondent's accounts in support of their case, they could have summoned for them. This they did not do. The result is that there is no evidence from which it could be said that such money as was spent in the purchase of the Cutcheri Road house in 1936 or in its reconstruction thereafter came out of any joint family trade. It is for the plaintiffs affirmatively to prove that there were joint family assets which were suppressed in 1935, and we cannot accept the argument on behalf of the appellant that the onus lies on the first respondent to prove that the partition entered into in 1935 was fair. It is noteworthy that the second defendant who could certainly speak to the joint family trade if there was one or as to how he agreed to a partition of the houses alone if there were large assets remaining in the joint family trade has not been examined on behalf of the plaintiffs, though there is every reason to believe that he is supporting his sons in the present litigation. The first respondent was not even directly asked as to where he got the money from for the purchase of the Cutchery road house. In the circumstances we have no hesitation in coming to the conclusion that the plaintiffs have totally failed to substantiate their case in every way. The appeal fails and is accordingly dismissed with costs of the first respondent.
N.R.R
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