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Smart Summary

Factual and Procedural Background

The dispute concerns family property left by the late Maula Bux and his son Abdul Aziz. Abdul Aziz had two wives, Zainab and Maniran. Zainab's children included Ahmad Ali, Abdul Karim, Idris (sons) and Sakina and Saioora (daughters). Maniran's children included two minor sons, Abdul Majid and Muhammad Zamil; three minor daughters, Abda Khatoon, Zahida Khatoon and Halima; and three major daughters, Khodeja, Moshera and Zohra.

On 20-4-1949 the family executed a deed of agreement referring their dispute about "possession, enjoyment, partition, accounts, assets, liabilities and interest in movable and immovable properties" to arbitration. Bibi Maniran signed this deed for herself and "as guardian" of her minor children.

On 26-10-1949 Batulan, Zainab and Zainab's children filed an application under Section 33 of the Arbitration Act, 1940, alleging that Maniran was not the legal guardian of her minor children under Mahomedan Law and therefore her signing rendered the agreement illegal and void as it could not empower arbitrators to decide matters affecting minors' interests. Maniran and others opposed the application, arguing (inter alia) that she was a de facto guardian competent to bind the minors in respect of movable property and that her subsequent appointment by the Court as guardian cured any defect.

The Special Subordinate Judge of Ranchi, by an order dated 16-3-1950, held that a Mahomedan mother who is not executrix nor appointed guardian by the father or the Court cannot, when not a legal guardian, enter into an arbitration agreement affecting minors' shares in immovable property; he concluded the reference on behalf of minors was invalid but declined to hold the entire reference invalid because he did not examine whether the arbitrators' decision would necessarily affect minors' interests or be severable. He ordered the award to be filed and indicated the award would be set aside only if it affected minors and could not be severed.

The present miscellaneous appeal (challenging the Subordinate Judge's order of 16-3-1950) was preferred by the applicants under Section 33 on the ground that the interests of the minors in the immovable properties were not severable and thus the whole reference should be void.

Legal Issues Presented

  1. Whether Maniran could validly sign the deed of agreement "as guardian" of her minor children so as to bind them under Mahomedan Law.
  2. If Maniran was not a legal guardian, whether she could nevertheless bind the minors in respect only of movable property by virtue of being a de facto guardian.
  3. Whether the arbitration agreement, which referred disputes in respect of both movable and immovable property, is severable so that it could remain effective as to some parties or some categories of property even if invalid as to the minors' immovable property interests.
  4. Whether an appeal lies from an order passed under Section 33 of the Arbitration Act, 1940, or whether such an order is not appealable and is subject to revision.

Arguments of the Parties

Applicants' (Those who filed under Section 33) Arguments

  • Maniran signed the deed of agreement purportedly as guardian of her minor sons and daughters but she was not their guardian under Mahomedan Law.
  • Under Mahomedan Law a mother is not a legal guardian of the property of a minor; therefore the agreement is wholly illegal and null and void and could not legally empower arbitrators to decide disputes affecting minors.
  • The validity of the agreement should be determined under Section 33 to avoid further harassment and expense, and the agreement should be declared illegal and void.

Opposite Party (Maniran and her supporters) Arguments

  • Maniran acted as a de facto guardian; even if not a legal guardian she should be treated as having signed as de facto guardian and thus the agreement would be effective at least insofar as movable properties were concerned.
  • The subsequent appointment of Maniran by the Court as guardian for the minors cured any defect in the original agreement.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Radha Kishen v. Bombay Co. Ltd., AIR 1943 Lah 295 Whether an order under Section 33 of the Arbitration Act falls within Section 39(4) as an appealable order; the cited decision held that an order under Section 33 does not fall under Section 39(4) and is not appealable. The court relied on this authority to conclude that no appeal lies against an order under Section 33 and accordingly converted the appeal into a revision and proceeded in revisional jurisdiction.
Mohd. Amin v. Vakil Ahmad, AIR 1952 SC 358 Principle that a de facto guardian has no power to transfer a right or interest in immovable property of a minor; such transfers are void (not merely voidable), and whether the transaction benefited the minor is immaterial. The court cited this case to support the proposition that a de facto guardian cannot legally bind a minor in relation to immovable property and that such purported transfers are void.
Imambandi v. Mutsaddi, AIR 1918 PC 11 Settled authority that under Mahomedan Law a mother acting as de facto guardian has no power to alienate or charge the immovable property of her children. The court used this precedent to reinforce that the mother, as a de facto guardian, could not validly enter into an agreement affecting minors' immovable property rights.

Court's Reasoning and Analysis

Jurisdictional point. The court first addressed a preliminary procedural objection: orders under Section 33 of the Arbitration Act are not listed among appealable orders in Section 39. Citing Radha Kishen v. Bombay Co. Ltd. the court held that no appeal lies from an order under Section 33 and therefore converted the present appeal into an application in revision and heard the matter in revisional jurisdiction.

Applicable law on guardianship under Mahomedan Law. The court surveyed the hierarchy of persons who are legal guardians of a minor's property under Mahomedan Law (father; executor appointed by father's will; father's father; executor of father's father), and observed that in default of such legal guardians the Court (Judge) has the duty to appoint a guardian. The court distinguished legal guardians from de facto guardians: a de facto guardian is merely a custodian of the person and property and does not have power to convey rights or interests in immovable property of a minor.

Reliance on authority. The court relied on Mohd. Amin v. Vakil Ahmad to record the settled rule that a de facto guardian cannot transfer an interest in immovable property and that such transfers are void. It also relied on Imambandi v. Mutsaddi for the proposition that under Mahomedan Law a mother as de facto guardian has no power to alienate or charge her children's immovable property.

Application to the facts. The deed of agreement referred disputes concerning both movable and immovable properties (possession, enjoyment, partition, liabilities and interest in both movable and immovable properties). The court concluded that because the arbitration reference covered immovable property interests of the minors, and because a de facto guardian (the mother) could not validly bind minors in respect of immovable property, the mother lacked competence to enter into the reference on behalf of the minors. The court further held that, as drafted, the movable and immovable property matters were not severable — the deed did not permit separating the reference so as to validate it only as to movables. Consequently, the agreement could not stand in part and be void in part: if void qua the minors as to immovable properties, it would be void altogether as to all parties.

Error by the Subordinate Judge. The court found that the Subordinate Judge erred in declining to set aside the entire reference without examining the deed himself and in not exercising the jurisdiction vested in him. The revisional court determined that the entire reference must be held invalid.

Holding and Implications

Core Holding: The revisional court set aside the order of the Subordinate Judge dated 16-3-1950 and held that the deed of agreement dated 20-4-1949 is a nullity and void.

Direct consequences for the parties:

  • The entire reference to arbitration arising from the deed of 20-4-1949 is invalid; it cannot be enforced or acted upon as binding on the parties.
  • The application under Section 33 was allowed with costs; the court awarded a hearing fee of two gold mohurs.
  • The Subordinate Judge's order of 16-3-1950 was set aside by way of revision under Section 115 of the Civil Procedure Code.

Broader implications: The opinion rests on established Mahomedan Law principles and cited precedents; it does not purport to lay down a new legal principle beyond applying those authorities. No broader precedent beyond the application of existing authorities was announced in the text of this opinion.

    Abdul Karim And Others v. Mst. Maniran And Others

    Jamuar, J.:— This appeal has been brought from an order dated 16-3-1950, passed by the Special Subordinate Judge of Ranchi on an application filed before him under Section 33 of the Arbitration Act, 1940, challenging tlje validity of an arbitration agreement entered into by the parties.

    2. One Maula Bux had a son named Abdul Aziz and a daughter named Batulan. Abdul Aziz had two wives, Zainab and Maniran. Zainab has three sons Ahmad Ali, Abdul Karim and Idris, and two daughters, Sakina and Saioora. Maniran has two minor sons, Abdul Majid and Muhammad Zamil, three minor daughters, Abda Khatoon, Zahida Khatoon and Halima, and three major daughters, Khodeja, Moshera and Zohra. After the death of Maula Bux and his son, Abdul Aziz, there appears to have arisen a dispute in the family regarding the partition of the properties. On 20-4-1949, a deed of agreement was entered into by the family members, and Bibi Maniran, one of the wives of Abdul Aziz, had signed this deed for self and as guardian of her minor children. The deed of agreement recited that, since

    “there is a dispute between the parties regarding the possession, enjoyment, partition, accounts, assets, liabilities and interest in movable and immovable properties left by the late Sheikh Maula Bux and his son late Maulavi Abdul Aziz”,

    The parties desired to refer the dispute to the arbitration of certain persons named therein, and they appointed those persons as arbitrators to adjudicate upon their dipute.

    3. Thereafter, on 26-10-1949, an application was filed before the Subordinate Judge of Ranchi under Section 33 of the Arbitration Act, by Batulan, Zainab and the sons and daughters of Zainab, and the opposite party to this application were Maniran and her sons and daughters. In this application, it was alleged that, as Maniran had signed the deed of agreement as guardian of her minor sons and daughters, when, in fact, she was not their guardian, and, as, under the Mahomedan Law, she, as the mother, could not be the guardian of the properties of her minor children, the agreement was wholly illegal and null and void, and would not legally empower the arbitrators to decide the dispute in question.

    4. It was further alleged that, in order to avoid further harassment and expenses, it was necessary to have the validity of this agreement determined under Section 33 of the Arbitration Act, and it was prayed that the said agreement, dated 20-4-1949, may be declared to be illegal and null and void. The opposite party to this application contested the matter, and it was argued that, if it be held that the mother could not be the legal guardian of her minor children, she should be treated to have signed the deed of agreement as a de fact guardian and hence the agreement would be effective, at least, so far as the movable properties in dispute were concerned. It was also argued that, Maniran having been, later on, appointed by the Court as guardian for the minors, the defect in the agreement should be held to have been cured.

    5. The learned Subordinate Judge found that, although a Mahomedan mother may be the ‘de facto’ guardian of her minor children after the death of the father, she has no authority, when she is not the executrix of the Page: 7children's father nor appointed as their guardian by him or by the Court, to enter, on behalf of the minors, into an agreement for reference of any dispute to arbitration which should affect their snares in the immovable properties of their father, and that the subsequent appointment of the mother by the Court as guardian of the minors could not validate such an agreement. The learned Subordinate Judge, accordingly, came to the conclusion that the reference to arbitration on behalf of the minors was invalid. He, however, held that, so far as the other parties to the deed of agreement were concerned, they were competent to refer the dispute to arbitration so long as the decision of the dispute amongst them did not affect the interest of the minors.

    6. The learned Subordinate Judge did not himself examine the deed of agreement, and hence he said it was difficult to find whether the disputes between the parties were so interconnected that a decision of the arbitrators would affect the interest of the minors. In these circumstances, he was not prepared to hold that the entire reference to arbitration was invalid, and he ordered that the award of the arbitrators be filed, and “if the award affects the minors and cannot be severed from other provisions then only the award will be liable to be set aside”. He, therefore, found that, though the reference to arbitration on behalf of the minors was invalid, it was not invalid in so far as the other parties were concerned.

    7. It is from this order that the present miscellaneous appeal was preferred by the party who had filed the application under Section 33 of the Arbitration Act, before the learned Subordinate Judge in the Court below on the ground that, in the circumstances of this case, the entire reference to arbitration should be held to be null and void as the interests of the minors in the immovable properties are not severable.

    8. A preliminary objection was raised that no appeal lies from an order passed under Section 33 of the Arbitration Act. Orders which are appeal-able are enumerated in Section 39 of the Arbitration Act. An order passed under Section 33 of the Arbitration Act, does not find mention in the list of appealable orders. In — ‘Radha Kishen v. Bombay Co. Ltd.’, AIR 1943 Lah 295 (A), a question arose whether an application to challenge the validity of an arbitration agreement or to have the effect of that agreement determined falls under Section 39(4) of the Arbitration Act as an appealable order. In that case, an application in revision had been filed against such an order, and it was contended that, as an appeal lay under S. 39(4) of the Act, the application in revision should not be entertained. It was, however, held that an order passed under Section 33 of the Arbitration Act does not fall under S. 39(4), and is not an appealable order; hence, an application in revision against such an order was entertainable. I would hold that in the present case no appeal lies against the order complained against; but the appeal can be converted into an application in revision, and we have heard the matter in our revisional jurisdiction.

    9. The question for determination is whether Maniran could have signed the deed of agreement as guardian of her minor children so as to bind them. A Mohomedan mother, on the death of her husband, is not a legal guardian of the properties of a minor. Under the Mahomedan Law, the following persons are entitled in the order mentioned below to be guaruians of the property of a minor: (1) the father; (2) the executor appointed by the father's will; (3) the father's father; (4) the executor appointed by the will of the father's father. In default of the legal guardians, the duty of appointing a guardian for the protection and preservation of the minor's property falls on the Judge as representing the Sovereign. A person, however, may neither be a legal guardian nor a guardian appointed by the Court but may have voluntarily placed himself in charge of the person and property of a minor. Such a person is called a de facto guardian. A de facto guardian is merely a custodian of the person and property of the minor, and has no power to transfer a right or interest in the immovable property of the minor. Such a transfer, if made, is not merely voidable but void, since, under the Mahomedan Law, a person who has charge of the person or property of a minor without being his legal guardian, that is, a ‘de facto’ guardian, has no power to convey to another any right or interest in immovable property which the transferee can enforce against the minor, and the question whether the transaction has resulted in a benefit to the minor is immaterial in such cases — see — ‘Mohd. Amin v. Vakil Ahmad’, AIR 1952 SC 358 (B).

    10. It has been well settled in ‘Imambandi v. Mutsaddi’, AIR 1918 PC 11 (C), that under the Mahomedan Law a mother has to power as de facto guardian of her in that children to alienate or charge their immovable property. It was, however, argued by Mr. Gopal Prasad that Musamrnat Maniran, not being appointed a legal guardian of her children, could not have entered into the agreement on behalf of the minors, but, he contended, that she was a de facto guardian, and, though she could not deal with the immovable properties of the minors, she could deal with their movable properties. Learned Counsel argued that it should be held that the deed of agreement, dated 20-4-1949, is binding upon the minors so far as the movable properties were concerned, though it may not be binding in respect of the immovable properties.

    11. A perusal of the deed of agreement, to which reference has already been made, shows that the matter referred to the arbitrators was the dispute between the parties regarding, amongst others, possession, enjoyment, partition, liabilities and interest in both movable and immovable properties. The mother, as de facto guardian, is not competent to enter on behalf of her minor children into an agreement to refer the dispute to arbitration, the agreement being one which will necessarily, if acted upon involve dealings with the immovable properties of the minors. As the deed of agreement stands, the movable properties cannot be severed from the immovable properties. The agreement to refer the dispute to arbitration was in respect of all the properties, and it is not possible to find it valid in respect of a part and invalid in respect of the rest. If the deed of agreement is void, it cannot be void only qua the minors but would be void altogether Page: 8qua all the parties including those who were majors.

    12. In this view of the matter, clearly the decision of the arbitrators will affect the interest of the minors in the immovable properties as well. In the circumstances, therefore, the entire reference to arbitration must be held to be invalid.

    13. The learned Subordinate Judge clearly failed to exercise jurisdiction vested in him by law and a revision under Section 115 of the CPC, is competent. I would, accordingly, set aside the order of the learned Subordinate Judge, dated 16-3-1950, and hold that, in the circumstances of this case, the deed of agreement, dated 20-4-1949, is a nullity and void.

    14. I would, therefore, allow the application with costs; hearing fee two gold mohurs.

    15. Ramaswami, J.:— I agree.

    B/V.R.B

    16. Application allowed.

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    Abdul Karim And Others v. Mst. Maniran And Others
    (Apr 28, 1953)