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[Cites 10, Cited by 8]

Orissa High Court

Balabhadra Misra vs Srimati Nirmala Sundari Devi And Ors. on 13 July, 1953

Equivalent citations: AIR1954ORI23, AIR 1954 ORISSA 23, 19 CUTLT 402

JUDGMENT



 

  Narasimham J.   
 

 1. 'Touzi' No. 2717/3 of Cuttack 
Collectorate, bearing a 'Sadarzama' of Rs. 2, 
701/3/-, originally belonged to Gajarajpur 
Choudhuries represented by defendants 3 to 8 in 
this litigation. In that 'touzi' were included two 
villages known as Korkar and Erada bearing a 
'Sadarzama' of Rs. 846/-. The said two villages had 
been previously mortgaged by the Choudhuries 
with Sri M.S. Rao, an Advocate of Cuttack. On 
2-3-40 the Choudhuries registred a 'Kabala' (Ext. 
6-a) purporting to convey their-entire interest in the 
said two villages in favour of the plaintiff for a 
consideration of Rs. 1,205/--On the same day the 
said vendors registered another sale deed 
(Ext. 6) transferring to the plaintiff for a sum of Rs. 
975/- their right to recover arrear rental in the said 
two 'mouzas' In the second sale-deed (Ext. 6) it was 
stated that the vendors had transferred their 
proprietary interest in the two villages to the 
plaintiff & that they were, therefore, transferring 
their right to recover arrear rental from the tenants of 
the villages in favour of the new proprietor. 
 

 On 5-3-40 the entire consideration of the 
second 'Kabala' (Rs. 975/-) was received by 
defendant 3 on behalf of the Choudhuries and the 
original 'Kabala' (Ext. 6) was handed over to the 
plaintiff along with a receipt Ext. 1. The original of 
the main 'Kabala' (Ext. 6-a) relating to the transfer of 
the proprietary interest in the two villages, however, 
remained with the vendors as some differences 
arose between the parties regarding the procedure 
to be adopted for payment of the money to the 
mortgagee, namely, Sri M.S. Rao, before 
obtaining delivery of the document. On 15-6-
1940 a notice was issued by the Advocate of the 
Choudhuries calling upon the plaintiff to pay the 
entire consideration money of the 'Kabala' within 
seven days. The plaintiff also sent a reply notice 
through her Advocate (Ext, 5) on 31-8-40 
expressing her readiness and willingness to pay, the 
consideration to the mortgagee and obtain custody 
of the document. 
 

 There was exchange of telegram and letters 
between the parties on 3-8-40, and 5-8-40. On
5-8-40 the Choudhuries executed a 'Nadavi' deed 
(Ext. B) cancelling the previous sale-deed executed 
by them in favour of the plaintiff and on the same 
day executed another sale-deed (Ext. A) 
conveying their proprietary interest in the two 
villages to defendant 1. This led to a dispute 
between the plaintiff and defendant 1 as to whose 
title to the villages should prevail. As is to be 
expected, the dispute was first fought in the 
mutation proceedings before the Collector under 
the Bengal Land Registration Act. 
 

 Defendant 1, however, succeeded in getting 
his name mutated on 29-10-41. He paid his 
quota of the Government revenue; but his co-
sharers in the 'touzi' namely, the Choudhuries 
(defendants 3 to 8) defaulted in payment of their 
quota and on 13-3-42 'touzi' No. 2717/3 
was put up for revenue sale for arrears of revenue 
and purchased ,by defendant 2, Dewan Bahadur 
Lakshmidhar Mohanty, who is a senior Advocate 
of Cuttack Bar. On 13-10-42 he conveyed the 
proprietary interest in the two villages in favour of 
defendant 1, Subsequently, in December 
1942 and January 1943 he conveyed 
other portions of the said 'touzi' in favour of 
defendants 3 to 8 and also in favour of de-
fendants 10 and 11 retaining a small portion of 
the 'touzi' for himself. 
 

 2. The plaintiff's case was that the title to 
the two 'mouzas', namely, Korkar and Erada had 
been completely transferred to her by the 
Choudhuries as soon as the first 'Kabala' (Ext.
6-a) was registered on 2-3-40. The Choudhuries 
had, therefore, no right to cancel the 'Kabala' and 
re-transfer the said two villages in favour of 
defendant 1 by their second 'Kabala' (Ext. A) and 
that no title passed by that 'Kabala'. The plaintiff 
further urged that defendant 2 entered into a 
fraudulent conspiracy with defendant 1 and the 
Choudhuries for the purpose of extinguishing the 
rights of the plaintiff and that in pursuance of this 
fraud there was a deliberate default in payment of 
Government revenue by defendants 3 to 8 and 
that the purchase by defendant 2 in the revenue 
sale was 'benami' on behalf of defendant 1 
himself. She, therefore, claimed that she was 
entitled to a reconveyance of the disputed property 
by defendant 1. 
 

 Though Section 90, Trusts Act, was not 
expressly mentioned in the plaint it appears from 
a fair reading of paras 13 and 16 of the plaint 
that the plaintiff's case all along was that defendant 
1 was in the position of a trustee of the plaintiff 
and inasmuch as he gained an advantage by 
availing himself of his position as that 
trustee he should reconvey the property to the 
plaintiff by way of equitable relief. The suit was not 
brought for the purpose of annulling the revenue 
sale under Section 33, Bengal Land Revenue 
Sales Act (Act 11 of 1859) and there was not 
even an allegation that there was any fraud in 
publishing and conducting the sale or else that the 
processes were fraudulently suppressed. 
 

 It appears from the judgment of the trial 
Court that this position was not disputed by the 
learned Advocate for the plaintiff who clearly 
stated before the trial Court that he


did not want the revenue sale to be set aside but 
only prayed for a decree for reconveyance of the 
suit property in favour of the plaintiff by defendant 
1, No relief was asked for either against defendant 
2 or against the other defendants in whose 
favour portions of the 'touzi' had been transferred 
by defendant 2 after his purchase in the 
revenue sale. Consequently, the only contesting 
defendant was defendant 1. 
 

 3. The trial Court (2nd Munsif of Cuttack) 
and the lower appellate Court (Addl. Subordi-
nate Judge, Cuttack) both held that the title to the 
suit property passed to the plaintiff by virtue of the 
first 'Kabala' (Ext. 6-a) dated 2-3-40 and that it 
was not the intention of the parties that the title 
should pass only after payment of the 
consideration of the 'Kabala'. But they 
concurrently held that the revenue sale and 
purchase of the 'touzi' by defendant 2 were 
brought about in pursuance of a fraudulent 
conspiracy on the part of defendants 1 and 2 and 
the Choudhuries (defendants 3 to 8) with a view 
to extinguish the plaintiff's right in the suit property 
and that the equitable principles of Section 90, 
Trusts Act, would apply to the present case. 
 

 The main motive for such a fraudulent con-
spiracy was said to be the bitter enmity between 
the plaintiff's husband on the one hand and 
defendant 2 on the other in an adoption suit 
which was then pending. Defendant 1 had 
deposed on behalf of defendant 2 in that adoption 
suit and the Courts accepted the-plaintiff's 
evidence to the effect that defendant 1 was an 
intimate friend and practically a tool in the hands of 
defendant 2, one of the senior Advocates of 
Cuttack Bar. Defendant 1 has preferred this 
second appeal against the concurrent decisions of 
the two Courts. 
 

 4. Two important questions arise for con-
sideration in this second appeal. 
   

 (i) Did the plaintiff acquire 
title to the suit property by virtue of her 'Kabala' 
(Ext, 6-a) dated 2-3-40? 
 

 (ii) Is the plaintiff entitled to any relief under 
the equitable principles of Section 90, Trusts Act, 
on the ground that the revenue sale was brought 
about by fraud practised by a co-sharer 
proprietor?  
 

 5. As regards the first question, I think 
both the lower Courts have taken the correct view. 
Doubtless, the 'Kabala' was registered on 2-3-40; 
but the original document remained in the custody 
of the vendors and admittedly due/to some dispute 
regarding mode of payment of the mortgage dues 
of Sri M. S. Rao the consideration of the 
'Kabala' was not paid? at all. The main question for 
decision was whether the intention of the parties 
was that title to the disputed property should 
not pass until payment of the consideration or else 
whether the intention was that title should pass 
on the registration of the document irrespective of 
the date of payment of the consideration. 
 

 As pointed out in -- 'Pritam Singh v. 
Jagannath', AIR 1947 Pat 1 (A), reviewing the 
previous decisions on the subject, the intention 
of the parties should primarily be gathered from 
the sale-deed itself. But where the terms of the 
sale-deed are not clear and decisive the 
surrounding circumstances and the conduct of the 
parties may be looked into. On a scrutiny of the 
sale-deed it would appear that there is


nothing in it from which it can be inferred either 
expressly or by implication that the intention of the 
parties was that title should remain with the 
vendors until the passing of the consideration. The 
relevant portion may be translated as follows : 
  "But being in need of money to 
make part payment of the mortgage dues of 
Sri Babu M. Subba Rao we of our own 
accord and free will sell the 'zamindari' consisting 
of the undermentioned villages to the above-
mentioned vendee for Rs, 1,205/- as the 
consideration for the said 'zamindari' and we 
have counted the said money and received it 
from the vendee out of her 'Stridhan' (which 
she got from her mother) through her, father in 
one instalment and acknowledge that 'from this 
day' the vendee will be entitled to possess all 
rights including land, water, trees, stones, 
property underground, idols and temples, 
'dhanda', 'sirepa' well and 'bamphi' tank, river, 
'nala', 'machha-dia', 'banakar', 'phalakar', gardens, 
etc., all rights and after her sons and grand-sons 
for all time to come and they will deposit the 
'Sadarzama' of the property sold in the 
Government Treasury and get recorded in the 
Land Registration Department her own name in 
B and D Registers and deposit the revenue and 
procure challans according to rules and will do 
anything she likes regarding the said 
'zamindari' and we or our successors will have no 
claim or interest whatsoever and if we make any 
such claim that will be rejected." 
 

 It expressly says that from the date of the 
execution of the document the vendee shall  be 
entitled to all the rights in the suit property. 
Doubtless it was stated in the document that the 
entire consideration money also passed on that 
day. It is admitted by both parties that this portion 
of the recital in the document is incorrect. But from 
this circumstance alone it cannot be inferred that 
the intention of the parties was that passing of the 
consideration was a condition precedent to the 
transfer of the title. On the very same day 
another document (Ext. 6) was registered by 
the vendors transferring their right to realise arrear 
rental in favour of the plaintiff. In that document it 
was expressly mentioned that the proprietary 
interest in the villages had been transferred to the 
plaintiff. 
 

 The original of that sale-deed was delivered 
to the plaintiff on 5-3-40. If the intention of the 
parties was that the proprietary interest would not 
pass to the vendee until the date of payment of the 
consideration it is inexplicable how they would 
transfer their right to recover arrear rental in favour 
of the plaintiff on the same day and also deliver 
custody of that sale-deed on 5-3-40. Doubtless 
the position would have been slightly different if 
the transfer of the right to recover arrear rental by 
Ext. 6 was made in favour of a third party like the 
transfer of an ordinary money claim. But in Ext. 
6 as well as in the receipt (Ext. 1) it was clearly 
stated that the right to recover arrear rental was 
being transferred to the plaintiff as proprietor of the 
villages. 
 

 Moreover, even in the notice (Ext. 3) dated 
15-6-40 sent by the lawyer of the Choudhuries 
to the plaintiff it was not stated that the title to the 
property remained with the vendors due


to the failure of the plaintiff to pay the con-
sideration. I would, therefore, affirm the view taken 
by the two lower Courts that payment of the 
consideration was not a condition precedent to the 
transfer of the title and that the plaintiff obtained 
good title to the disputed property by virtue of her 
first 'Kabala' (Ext. 6-a) dated 2-3-40. The 
'Kafaala' in favour of defendant 1 (Ext. A) being of 
a subsequent date cannot prevail against the 
earlier 'Kabala', 
 

 6. The second question, however, 
presents-considerable difficulty. Certain broad facts 
admit of no doubt. At all relevant times, the 
plaintiff's husband Sri Bhagabat Charan. 
Mohanty was on terms of bitter enmity with, 
defendant 2 Dewan Bahadur Lakshmidhar 
Mohanty. Bhagabat Charan Mohanty's own 
brother Narsingh was the son-in-law of Dewan 
Bahadur Lakshmidhar Mohanty. After Narsingh's 
death a son of the Dewan Bahadur claimed to be 
his adopted son. This adoption was challenged 
by Bhagabat Charan Mohanty and during the 
years 1940-42 the adoption suit was being 
bitterly fought out. Defendant 1 admits that he 
deposed on behalf of defenddant 2 in that 
adoption suit. 
 

 It is proved by Sri M. S. Rao himself 
(D.. W. 2) that Lakshmidhar Babu (defendant .2) 
approached him sometime after the execution of 
the first 'Kabala' by the Choudhuries in favour of 
the plaintiff suggesting that a sale-deed may be 
executed in respect of the same property in favour 
of defendant 1. On behalf of the plaintiff it was 
urged that this conduct of defendant 2 indicated 
unusual interest on his part in favour of 
defendant 1 with the object of harassing the 
plaintiff's husband. This circumstance, however, is 
capable of an innocent explanation. Defendant 2 is 
an Advocate-and if approached by defendant 1 
'bona fide' for the purchase of the two villages he 
might consult the previous mortgagee on the 
subject
 

 Doubtless his conduct in selling the same 
property to defendant 1 within seven months of 
the revenue sale lends some support to the view 
that the purchase in the revenue sale by defendant 
2 was perhaps pre-arranged between him and 
defendant 1. He did not get his name mutated in 
the land registration records after his purchase 
in the revenue sale. Defendant 1 is the 'Mukaddam' 
of the two villages and if the plaintiff became the 
proprietor of the villages, it may be reasonably 
anticipated that her husband would exert pressure 
on defendant 1 either to give up supporting 
defendant 2 in the adoption suit, or to harass 
him for having taken the side of defendant 2 in 
the adoption suit. There is thus a strong motive for 
the 'benami' purchase so as to extinguish the 
plaintiff's right. 
 

 7. Both the lower Courts relied to a great 
extent on a letter Ext. 7 written by defend-dant 2 to 
one Pranadhan Babu on 16-11-42 in which he 
disclosed his intention as to what he proposed 
to do with the property purchased in the revenue 
sale. That letter was written eight months after the 
revenue sale (13-3-42) and more than a month 
after the sale-deed (Ext. A-1) was executed by 
him in favour of defendant 1 transferring the 
disputed property to the latter. The letter deals 
mainly with his proposal to transfer the 
remaining villages in the said 'touzi' to the 
Choudhuries (defendants 3 to 8) and one 
Tripathy. The letter opens with a quotation from a 
telegram sent by defendant 1 to defendant 2 
containing his suggestions for the transfer of 
the remaining portions of the 'touzi' which defend-
ant 2 accepted by telegram. 
 

 Then he informs Pranadhan Babu that he 
has no intention to cause any harm to the 
Choudhuries, that he was anxious for their welfare 
and that he (defendant 2) was bound by the word 
given by Misra (meaning defendant 1). He further 
admits that for the sake
of Misra he (defendant 2) got entangled with the 
property and that Bhagabat (meaning the husband 
of the plaintiff) was trying to keep defendant 1 
under his control. There is also an admission 
that the revenue sale was brought about by fraud 
'sadajantra' though it is not clearly stated as to who 
were the perpetrators of that fraud. The suggestion, 
however, in the letter seems to be that defendants 
3 to 8 were mainly responsible for the fraudulent 
sale. 
 

 8. The admissibility of this document 
against
defendant 1 was strenuously contested both in 
the lower Courts and before us. The writer of the 
document was examined as a witness (P.W. 6) by 
the plaintiff. In his examination-in-chief he 
admitted that he wrote that letter
but he was not specifically asked as to whether he 
admitted the contents of that letter to be true. 
When cross-examined by defendant 1, however, 
he made some statements in his favour denying 
the suggestion that his purchase of the property 
in the revenue sale was 'benami' for defendant 1. 
He was cross-examined by the plaintiff under 
Section 154, Evidence Act, but both parties 
scrupulously refrained from putting any question 
to him regarding the truth of the contents of that 
letter. 
 

 Mr. Misra on behalf of the appellant urged 
that the answers given by this witness during 
his cross-examination by defendant 1 amounted, 
in substance, to a contradiction of the contents 
of the letter and that consequently his attention 
should have been specifically drawn to those 
contradictions as required by Section 145, 
Evidence Act, before the contents of the letter 
could be used against him. In my opinion 
Section 145, Evidence Act, has no application to 
the present case. There is no question of contra-
dicting defendant 2 (P.W. 6) by any previous 
statement made by him in writing. The letter was 
proved by him in his examination-in-chief 
and at that time there was no question of any 
contradiction because he had not stated anything 
in evidence contradictory to the contents of the 
letter. Similarly, during his cross-examination by 
defendant 1 though he made certain admissions in 
his favour he did not make any statement which 
would amount to a contradiction of the contents of 
the letter. 
 

 9. As the writer of the letter (Ext. 7) has 
appeared as a witness in Court, the, contents of 
that letter would amount to a previous statement of 
a witness and can also be used for the purpose of 
corroborating his testimony in Court under 
Section 157, Evidence Act. But it cannot be used 
as substantive evidence and for that purpose 
one must scrutinise the nature of the evidence 
given in Court by the writer himself. Doubtless 
if he had said in a general way in his 
examination-in-chief that the contents of the letter 
were true there may be substantive evidence 
regarding its contents and


it would then be open to the other side to 
discredit his evidence during cross-examination. 
I But, for reasons best known to the parties the 
plaintiff's lawyer would not venture to specifically 
ask this witness (P.W. 6) either in his 
examination-in-chief or during his cross-exami-
nation under Section 154, Evidence Act, as to 
whether the contents of the letter were true or 
not. 
 

 Consequently, the contents of Ext. 7 have 
not been proved as substantive evidence in 
Court except the first part which is a quotation from 
a telegram received by P.W. S from defendant 1 
himself. The contents of that telegram have been 
practically admitted not only by P.W. 6 but also by 
the sender of the telegram, namely, defendant 1 (D. 
W. 3) and they may, therefore, be used as evid-
ence against the defendants. But the latter portion 
of the letter in which defendant 2 admitted that he 
entangled himself with this property 'for the 
sake of defendant 1 and that the auction sale was 
brought about by 'sadajantra' (fraud) has not been 
admitted by him in Court and cannot be used as 
substantive evidence unless it can be brought 
within the scope of some other section of the 
Evidence Act. 
 

 10. It was then urged that the aforesaid 
portion of Ext. 7 would amount to an admission 
against interest and would thus be admissible 
under Section 21, Evidence Act. Doubtless it is 
admissible against defendant 2 himself; but as 
he is a mere 'pro forma' defendant in this case, 
evidence as against him does not materially 
affect the case. Its admissibility against defendant 
1 (who is the only contesting defendant) depends 
on whether at the time of making the aforesaid 
admission defendant 2 had any interest in the 
disputed property or else whether he was acting as 
an agent of defendant 1. The letter was written on 
16-11-42 more than a month after defendant 2 
had sold the disputed property to defendant 1. He 
had, therefore, no subsisting interest in it at the 
time of making the admission. 
 

 It cannot also be seriously urged that defen-
dant 2 was acting as an agent on behalf of 
defendant 1 when he wrote the letter Ext. 7. 
Doubtless the telegram quoted in the first part of 
the letter shows that there was some under-
standing between the two to the effect that the 
property purchased in the revenue sale should 
be resold to various persons; but so far as the 
disputed property was concerned it had already 
been sold to defendant 1 and the contents of the 
telegram do not justify the inference that defendant 
1 either expressly or by implication authorised 
defendant 2 to make any admission against his 
interest in respect of the disputed property. 
 

 11. It was then urged that the contents of 
Ext. 7 would, in any case, be admissible under 
Section 10, Evidence Act, inasmuch as the 
conspiracy as alleged by the plaintiff was entered 
into by defendant 2 with defendant 1 and 
defendants 3 to 8 for the purpose of bringing 
about the revenue sale so as to extinguish the 
plaintiff's rights without in any way jeopardising 
the rights of defendant 1 and defendants 3 to 8. 
It was urged that the common intention of the 
conspirators was not completely achieved until 
reconveyance of the


disputed property to defendant 1 by defendant 2 
and the further reconveyance of most of the 
remaining property to defendants 3 to 8. This 
reconveyance took place on 5-1-43 and 6-1-43 (vide 
para 12 of the plaint) and it was, therefore, urged 
that the conspiracy continued to be operative till 
then and that any statement in writing made by one 
of the fellow conspirators with reference to the 
common intention of all of them was admissible 
under Section 10, Evidence Act. 
 

 Against this argument Mr. Misra on behalf 
of the appellant-defendant 1 urged that the object 
of the conspiracy as alleged by the plaintiff was to 
extinguish the title of the plaintiff in respect of the 
disputed property and confer full title to defendant 
1. This object was achieved when defendant 2 
reconvey-ed the disputed property to defendant 1 
on 13-10-42 and any subsequent statement 
made by defendant 2 would not come within the 
scope of Section 10, Evidence Act. In support of 
this argument reliance was placed on -- 'Emperor v. 
G.V. Vaishampayan', AIR 1932 Bom 56 (B). 
and -- 'Mirza Akbar v. Emperor', AIR 1940 PC 
176 (C). 
 

 12. It is well settled that after the common 
intention of the conspirators had been achieved 
any statement made by any of the conspirators   
would  not   be   admissible  under   Section 10. 
This point has been clearly laid down fay the Privy 
Council   in   --   'AIR   1940   PC   176   (C); 
where their Lordships  observed : 
  "Things said, done or written while 
the conspiracy was on foot are relevant as 
evidence of the common intention, once reasonable 
ground has been shown to believe in its 
existence. But it would be a very different matter to 
hold that any narrative or statement or confession 
made to a third party after the common intention or 
conspiracy was no longer operating and had 
ceased to exist is admissible against the other 
party."  
 

 In considering how far this principle applies to 
the present case two questions arise : 
   

 (i) what was the common 
intention of the conspirators as alleged by the 
plaintiff and when did the conspiracy cease to 
operate? 
 

 (ii) apart from Ext. 7 were there reasonable 
grounds in the evidence to believe that there was 
such a conspiracy?  
 

 13. The answer to the first of the aforesaid 
two questions depends on a careful reading of the 
plaint. In para 7 it was alleged that on account of 
the dispute over the adoption suit between the 
plaintiff's husband and defendant 2 the latter 
conspired with his friend defendant 1 to 
deprive the plaintiff of the suit property and in 
pursuance of this conspiracy induced defendants 
3 to 8 to reconvey the disputed property in favour 
of defendant 1 on 5-9-40. As soon as the said 
deed of reconveyance was executed this 
conspiracy ceased to be operative. In para 12, 
however, it was further alleged that the 
conspirators apprehended that the plaintiff would 
bring a title suit against defendant 1 and 
defendants 3 to 8 relying on her prior sale and 
that then the conspirators devised a plan for 
completely extinguishing her title and preventing 
her from challenging the title of defendant 1. 
 

 It was in pursuance of this second conspi-
racy that defendants 3 to 8 were induced to


default in payment of the Government revenue so 
that the entire property may be brought to revenue 
sale and purchased by defendant 2. In para 12 of 
the plaint it was further stated that the 
subsequent reconveyance of the suit property to 
defendant 1 and other villages of the 'touzi' to 
the remaining defendants were all made in 
pursuance of this conspiracy. This second 
conspiracy is the main conspiracy in the case and 
on a fair reading of paras 12 and 13 it may be 
held that the common intention of the conspirators 
was to extinguish the plaintiff's title to the disputed 
property and to perfect the title of defendant 1 in 
such a manner as not to jeopardise the rights of 
defendants 3 to 8. In this view it may be said with 
some justification that the conspiracy would not 
cease to be operative until reconveyance by the 
auction-purchaser (defendant 2) in favour of 
defendants 3 to B also, i.e. till January 
1943 and that the letter (Ext. 7) was written while 
the conspiracy was still operative. 
 

 14. But whatever may be the nature of the 
allegations in the plaint the plaintiff did not lead 
any evidence worth the name to show that 
defendants 3 to 8 shared in the aforesaid 
intention of defendants 1 and 2. (After 
considering the evidence his Lordship 
proceeded :) 
 

 15. My conclusion, therefore, is that there 
is no 'prima facie' evidence on the side of the 
plaintiff to prove the conspiracy as alleged in paras 
12 and 13 of the plaint implicating defendants 3 
to 8. The only conspiracy of which evidence may 
be said to exist is the conspiracy between 
defendants 1 and 2. That conspiracy ceased to be 
operative when defendant 2 resold the disputed 
property to defendant 1 on 13-10-42 and letter 
written subsequently by defendant 2 would not 
be admissible under Section 10, Evidence 
Act. 
 

 16. The next question for consideration is 
whether the plaintiff is entitled to a reconveyance 
of the disputed property from defendant 1 on 
equitable considerations. I am inclined to accept the 
findings of both the lower Courts that the disputed 
'touzi' was purchased by defendant 2 in the 
revenue sale 'benami' on behalf of defendant 1. The 
testimony of P.Ws. 2 and 8 on this question gains 
corroboration from other circumstances 
already discussed. But it is an admitted fact that 
defendant 1 paid his share of the revenue on 
the 'touzi' and it was the failure of the Choudhuries 
(defendants 3 to 8) to pay their quota of the 
revenue that brought about the revenue sale. The 
attempt of the plaintiff to prove by hearsay 
evidence that defendants 3 to 8 were ready and 
willing to pay their quota but that defendant 1 
induced their agent Bitchitrananda Mohanty not to 
deposit their quota of Government revenue has 
failed for reasons already given. 
 

 There is not even an allegation that there 
was fraudulent suppression of processes at the 
instance of defendant 1 or that the plaintiff was 
lulled into a sense of false security either by 
defendant 1 or by defendant 12. The plaintiff 
could have easily deposited the arrear revenue and 
thereby saved the property from sale. It is true that 
she failed to get her name mutated in the land 
registration records on 29-10-41; but the 'touzi' 
was put up for sale


only on 13-3-42 and during this period of six 
months there was ample opportunity for the 
plaintiff to safeguard her interest in the property 
by depositing the arrear revenue as permitted by 
Section 9, Bengal Land Revenue Sales Act, 
1859. Instead of being vigilant to look after her 
own interests it appears that after her failure in the 
mutation case she became completely indifferent 
to the property. Her agent (P.W. 7) admitted that 
he made no enquiries in the 'Touzi' office as to 
whether all the co-sharers of the 'touzi' had paid 
their arrear revenue and whether any balance was 
due. Thus the facts leading to the revenue sale are 
as follows : 
 

 Defendant 1 as a recorded co-sharer 
deposited his quota of the Government 
revenue. The remaining co-sharers, namely, 
defendants 3 to 8 defaulted in payment of their 
quota due to their straitened financial 
circumstances. Their default was not brought 
about through the machinations of defendant 1. 
The plaintiff, who also claimed to be one of the co-
sharers of the 'touzi', could have paid the arrear re-
venue and averted the sale; but she remained 
indifferent. There was no understanding, either 
express or implied, either between defendant 1 and 
the plaintiff or between defendants 3 to 8 and the 
plaintiff in consequence of which she was lulled 
into a sense of false security. Defendant 1 was 
aware that the 'touzi' was being put to sale due to 
the default of defendants 3 to 8 but would not 
avert the sale by depositing their quota ot arrear 
revenue. When the property was brought to the 
revenue sale defendant 2 purchased it, 
presumably 'benami' on behalf of defendant 1 and 
subsequently reconveyed it to him. 
 

 17. Both the lower Courts have relied on 
the leading decision of the Privy Council reported 
in -- 'Deo Nandan Prasad v. Janki Singh', AIR 
1916 PC 227 (D), and granted the relief asked 
for by the plaintiff. That case is, however, clearly 
distinguishable. There the co-sharer-mortgagee 
who purchased the estate in the revenue sale was 
himself the defaulter in payment of his quota 
of the Government revenue notwithstanding the 
existence of a previous agreement between him, 
and the other co-sharers to the effect that he 
would pay his quota of the Government 
revenue. The default was brought about 
deliberately with a view to a subsequent sale 
and purchase on his behalf. The other co-
sharers were not aware of the default or sale. On 
these facts their Lordships emphasised, while 
dissenting from a decision reported in -- 'Doorga 
Singh v. Sheo Pershad Singh', 16 Cal 194 
(E), 
  "the   need   of   demanding   from   
each   such measure  of  candid   dealing   and  
good   faith as would ensure that a sharer would 
not be tempted  to  make   a  deliberate  default   
with a view to ousting his co-sharers and appro-
priating to himself their  common property." 
 
 

 This  case   was   explained   in   a   later   
Calcutta decision reported in -- 'Kurshed All v. 
Dinanath Surma',   AIR   1919   CaL 431   (F)   
and  it was pointed out that the  mere  fact that  
the purchaser of an estate in  a revenue sale was 
one   of the  co-sharers   was   not   sufficient   to 
attract the equitable principles of Section 90, 
Trusts Act and that there must be something 
unfair, something  amounting   at  least  to  sharp 
practice, in   the   conduct of the   purchaser.   In --


'Akshaykumar v. Ahmad All', AIR 1932 Cal 
434 (G), the principles laid down in -- 'AIR 
1916 PC 227 (D)', were also applied to a case 
where a co-sharer though not in default in payment 
of his quota of the arrear revenue had 
designedly brought about the revenue sale by 
scheming with the other co-sharers and 
deliberately procured their default. In that case 
Rankin C. J., the Chief Justice of Calcutta High 
Court, observed :  
  "Of course, if defendant 1 had not 
intentionally procured the default which resulted 
in the revenue sale, he would have been entitled 
to purchase the plaintiff's estate for 
himself." 
 

 For granting equitable relief a co-sharer who 
subsequently purchased the property in the: 
revenue sale must be guilty of some kind of 
sharp practice which would be inconsistent with 
any relation of mutual confidence between co-
sharers. Both the lower Courts' thought that 
defendant 1 was guilty of sharp practice 
inasmuch as he dissuaded defendants 3 to 8 from 
depositing their quota of the arrear revenue and 
thereby averting the sale. I have, however, 
shown that this finding of both the Courts is not 
based on any evidence worth the name. Hence, 
following the observations of Rankin C. J. 
quoted above, it would appear that defendant 1 
was entitled to purchase the property 'benami' in 
the name of defendant 2 in the revenue sale 
inasmuch as he was not guilty of any sharp 
practice or anything unfair. There could be no 
question of mutual confidence between him and 
the plaintiff who were both then on bitter terms of 
litigation. 
 

 The mere purchase 'benami' in the name 
of defendant 2 is itself not evidence of fraud. 
His failure to deposit the arrear revenue due from 
the other co-sharers (defendants 3 to 8) 
cannot also lead to an inference that he was guilty 
of sharp practice inasmuch as there was no 
understanding between him and the other 
co-sharers that he should pay their quota of the 
revenue also. The present case is very similar to a 
later decision of the Privy Council reported in -- 
'Anath Nath, v. Dwarka Nath', AIR 1939 PC 86 
(H), (in which the judgment was delivered by Sir 
G. Rankiri himself) where their Lordships 
refused to apply the principles of Section 90, 
Trusts Act, to a case where a co-sharer who 
subsequently purchased the property in the 
revenue sale was not guilty of any act of bad faith 
towards his co-sharers, had not lulled them into 
a sense of security, had not abused their 
confidence and had not done anything to prevent 
his co-sharers from becoming possible 
bidders. 
 

 The only distinguishing feature between 
that case and the present case is that in the former 
the co-sharer had done everything that was 
possible for him to do to prevent the sale 
whereas in the present case defendant 1 did not 
pay the arrear revenue due from defendants 3 to 8 
'though he could have paid it if he had so desired. 
But I do not think that this makes any difference 
inasmuch as the principle emphasised by their 
Lordships is the necessity for mutual confidence, 
candid dealing and good faith as between the co-
sharers. Where there can be no question of one co-
sharer being misled by the other and the latter 
is not guilty   of   any   sharp   practice   the   
equitable principles of Section 90 cannot be 
invoked. 
 

 18. I would, therefore, allow the appeal, 
set aside the judgment and decree of both the 
Courts and dismiss the plaintiff's suit with costs 
throughout. 
 

   Mohapatra, J.   
 

19. I agree.