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[Cites 9, Cited by 0]

Supreme Court of India

Kehar Singh (D) Thr. Lrs. vs Nachittar Kaur on 20 August, 2018

Equivalent citations: AIR 2018 SUPREME COURT 3907, (2018) 2 WLC(SC)CVL 412, (2018) 4 PAT LJR 80, AIR 2018 SC (CIV) 2713, (2018) 5 MAD LW 780, (2018) 4 RECCIVR 128, (2018) 6 KANT LJ 109, (2018) 3 ALL RENTCAS 164, (2019) 194 ALLINDCAS 176 (SC), (2018) 5 ANDHLD 179, (2019) 132 ALL LR 740, AIRONLINE 2018 SC 274

Author: Abhay Manohar Sapre

Bench: Sanjay Kishan Kaul, Abhay Manohar Sapre

                                                                            REPORTABLE

                                    IN THE SUPREME COURT OF INDIA

                                     CIVIL APPELLATE JURISDICTION

                                     CIVIL APPEAL NO. 3264 OF 2011

                   Kehar Singh (D) Thr.
                   L.Rs. & Ors.                                       .. Appellant(s)

                                                         Versus

                   Nachittar Kaur & Ors.                             .. Respondent(s)

                                                 J U D G M E N T

                   Abhay Manohar Sapre, J.

1) This   appeal   is   filed   by   the   legal   representatives   of   the original plaintiff   against the final judgment and order dated 20.04.2006 passed by the High Court of Punjab & Haryana at Chandigarh   in   R.S.A.   No.   1734   of   1968   whereby   the   High Court allowed the appeal filed by the respondents(defendants) and dismissed the suit filed by the original plaintiff.

2) In order to appreciate the factual and legal controversy involved   in   the   appeal,   it   is   necessary   to   state   the   facts   in Signature Not Verified Digitally signed by ANITA MALHOTRA Date: 2018.08.20 16:53:29 IST Reason: detail infra.

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3)   The   appellants   are   the   legal   representatives   of   the original   plaintiff   whereas   the   respondents   are   the   legal representatives of the original defendants, who were brought on record during the  pendency of this litigation consequent upon the death of both plaintiff and the defendants.

4) The dispute in this appeal is between the son, father and the   purchasers   of   the   suit   land   from   father.   It   relates   to   a land   measuring   around   164   Kanals   1   Marla   entered   in rectangle No.46 Killa Nos. 8/1, 19/2, 21/2, 22/2, 23, 24 and rectangle No.52, Killa Nos. 1/2, 2, 3, 4, 5, 6, 7, 8, 12/1, 13, 14,   15,   16,   17,   18,   23,   24,   25   entered   in   Khata   No.6/9 Jamabandi     1957­58   at   present   entered   in   Khata   No.2/2 Jamabandi   1962­63   situated   in   Village   Bhamian   Kalan, Tehsil Ludhiana (hereinafter referred to as  "suit land" ).

5) One Pritam Singh(defendant No.1) was the owner of the suit land. He sold the suit land on 25.04.1960 by registered sale   deed   to   Tara   Singh(defendant   No.2)   and   Ajit Singh(defendant   No.3)   for   Rs.19,500/­.     Both   vendees namely, Tara Singh and Ajit Singh were placed in possession 2 of the suit land.

6) On   27.11.1964,   Kehar   Singh   s/o   Pritam   Singh   filed   a civil suit (Case No. 429/325 of 1964) against Tara Singh and Ajit Singh in the Court of Sub­Judge 2nd class, Ludhiana. 

7) The suit was founded  inter alia  on the allegations that the suit land was and continues to be an ancestral property of the family of which the plaintiff is one of its members along with   his   father­   Pritam   Singh,   that   the   plaintiff's   family   is governed   by   the   custom,   which   applies   to   sale   of   family property  inter   se  family   members,   that   the   plaintiff   has   a share in the suit land along with his father­ Pritam Singh as one of the coparceners, that Pritam Singh had no right to sell the suit land without obtaining the plaintiff's consent, which he never gave to his father for sale of the suit land, that there was   no   legal   necessity   of   the   family   which   could   permit Pritam Singh to sell the suit land to defendant Nos. 2 and 3, that the suit land and the rights of the parties to the suit are governed by the provisions of the Punjab Custom (Power to Contest) Act, 1920 (hereinafter referred to as “the Act” ). 3

8) The   plaintiff   prayed   for   a   relief   of   declaration   on   the aforementioned   allegations   that   first,   the   sale   made   by   his father­Pritam   Singh   in  favour  of  Tara  Singh   and  Ajit  Singh vide sale deed dated 25.04.1960   in relation to the suit land be declared as not binding on the plaintiff;  Second, the sale in question is void and does not convey any right, title and interest in favour of defendant Nos. 2 and 3.

9)   The defendants contested the suit. According to them, the suit land was not ancestral one; that the parties were not governed by any custom; that the sale deed in question was executed   for   consideration   and   for   legal   necessity   of   the family; that the sale was made for discharge of family debts and for improving the farming; that the defendant Nos.2 & 3 are   the  bona   fide  purchasers   of   the   suit   land   for consideration.

10) The   Trial   Court   framed   issues.   Parties   adduced   their evidence.   By   Judgment/decree   dated   17.12.1966,   the   Trial Court   decreed   the   plaintiff’s   suit.   It   was   held   that   the   suit land   was   an   ancestral   property   and     there   was   no   legal 4 necessity to sell the suit land.

11) Defendant Nos.2 & 3 felt aggrieved and filed first appeal (C.A.   No.31   of   1967)   before   the   first   Appellate   Court.   By judgment/decree dated 11.06.1968, the first Appellate Court partly   allowed   the   defendants’   appeal   and   modified   the judgment/decree of the Trial Court. 

12) It was held by the first Appellate Court that the suit land was an ancestral property of the family; that the parties to the suit are governed by the custom; that defendant Nos.2 & 3 were able to prove legal necessity for the family partially to the   extent   of   Rs.7399/­   ;   and   lastly,     the   reversioners   of Pritam Singh would, therefore, be entitled to get possession of the suit land after the demise of Pritam Singh on payment of Rs.7399/­  and the sale in question would not be binding on their reversionary interests.

13) Defendant Nos. 2 and 3 (purchasers of the suit land) felt aggrieved   and   filed   second   appeal   before   the   High   Court. During   the   pendency   of second  appeal, the  Punjab  Custom (Power   to   Contest)   Amendment   Act,   1973   came   into   force 5 w.e.f. 23.01.1973. 

14) The High Court, by order dated 22.04.1974, allowed the second appeal and dismissed the suit in view of  the law laid down by the High Court of Punjab & Haryana in the case of Charan Singh vs. Gehl Singh, 1974 PLR 125 wherein it was held   that   the   Amendment   Act   of   1973   was   retrospective   in nature   and,   therefore,   in   the   light   of   the   amendment,   the plaintiff had no right to challenge the alienation made by his father under the custom prevailing at the relevant time. 

15) The plaintiff felt aggrieved and filed appeal in this Court. This   Court   disposed   of   the   said   appeal   along   with   other appeals involving the similar point  (See   Darshan Singh vs. Ram Pal Singh & Anr., AIR 1991 SC 1654).  It   was   held   by this Court that the Amendment of 1973 made in the Act is retrospective   in   nature   and   that   the   law   laid   down   by   the High Court of Punjab & Haryana in the case of Charan Singh (supra) is correct and does not need any reconsideration. It was  also  held that since the High Court while deciding  the second appeal did not examine the question involved in the 6 appeal in the context of principles of Hindu Law,  the matter has to be remanded to the High Court for deciding the second appeal afresh in the light of the principles of Hindu law. This is   how   the   matter   was   remanded   to   the   High   Court   for deciding the second appeal afresh.

16)  On   remand,   the   High   Court   asked   the   parties   as   to whether they want to lead any additional evidence to enable the   High   Court   to   decide   the   appeal,   as   directed   by   this Court. The parties stated that they do not want to lead any additional   evidence   and   the   High   Court   could   decide   the appeal on the basis of evidence already adduced. 

17) By impugned order, the High Court allowed the appeal filed by the  defendants and dismissed the suit. It was held that   the   suit   land   was   an   ancestral   property   of   the   family; that Pritam Singh being a Karta had a right to sell the suit land; that there did exist a legal necessity of the family for which the  suit  land  was required to be sold by  Karta; that there were two debts (Taccavi loan and one private loan) on the   family   and  secondly  the family  had an agriculture land 7 which needed improvement; that with a view to discharge the loan liability and to undertake the improvement on the land, the   Karta­Pritam   Singh   sold   the   suit   land   for   valuable consideration;   that   these   facts   were   duly   mentioned   in   the sale deed in question; that the sale was, therefore, bona fide, legal   and   made   for   valuable   consideration.   It   is,   therefore, binding on the plaintiff.

18) The plaintiff felt aggrieved and filed the present appeal by way of special leave in this Court. 

19) Heard learned counsel for the parties.

20) The main question, which now survives for consideration in   this   appeal,   is   whether   the   High   Court   was   justified   in holding that the sale made by defendant No.1­Pritam Singh in favour of defendant Nos. 2 and 3 was for legal necessity and, if so, whether it was legal and valid sale.

21) So far  as   the  nature and character  of the suit land is concerned,   it   was   held   to   be   ancestral   land   and   since   no challenge   was   made   to   this   finding,   it   is   not   necessary   to examine this question in this appeal. 

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22)     Mulla  in   his   classic  work "Hindu  Law"  while dealing with the right of a father to alienate any ancestral property said in Article 254, which reads as under:

“Article 254
254.  Alienation by father – A Hindu father as such has special   powers   of   alienating   coparcenary   property, which   no   other   coparcener   has.     In   the   exercise   of these powers he may:
(1) make a gift of ancestral movable property to the extent   mentioned   in   Article   223,   and   even   of ancestral   immovable   property   to   the   extent mentioned in Article 224;
(2) sell   or   mortgage   ancestral   property,   whether movable   or   immovable,   including   the   interest   of his  sons,   grandsons  and  great­grandsons  therein, for   the   payment   of   his   own   debt,   provided   the debt   was   an   antecedent   debt,   and   was   not incurred   for   immoral   or   illegal   purposes(Article
294).”            
23) What is legal necessity was also succinctly said by Mulla in Article 241, which reads as under: 
“Article 241
241.   What   is   legal   necessity­   The   following   have   been held   to   be   family   necessities   within   the   meaning   of Article 240:
(a) payment   of   government   revenue   and   of   debts which are payable out of the family property;
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(b) Maintenance  of   coparceners  and  of  the  members of their families;
(c) Marriage expenses of male coparceners, and of the daughters of coparceners;
(d) Performance   of   the   necessary   funeral   or   family ceremonies;
(e) Costs   of   necessary   litigation   in   recovering   or preserving the estate;
(f) Costs of defending the head of the joint family or any   other   member   against   a   serious   criminal charge;
(g) Payment of debts incurred for family business or other necessary purpose.  In the case of a manager other   than   a   father,   it   is   not   enough   to   show merely that the debt is a pre­existing debt;

The above are not the only indices for concluding as   to   whether   the   alienation   was   indeed   for   legal necessity,   nor   can   the   enumeration   of   criterion   for establishing   legal   necessity   be   copious   or   even predictable.   It must therefore depend on the facts of each case.   When, therefore, property is sold in order to fulfil tax obligations incurred by a family business, such alienation can be classified as constituting legal necessity.”  (see Hindu Law by Mulla “22nd Edition”)

24) The High Court, after taking note of the aforementioned legal principles of Hindu law, dealt with this question on facts in para 12, which reads as under: 

“12.  In the light of the aforesaid legal position, now it 10 has to be examined as to whether the defendants have discharged their onus to prove the existence of the legal necessity   at   the   time   of   the   impugned   sale   deed. Defendant   Tara   Singh,   while   appearing   as   DW   13   has stated   that   amount   of   Rs.5,500/­   was   paid   by   him   as earnest   money,   Rs.500/­   was   spent   for   payment   of Taccavi loan and registration of sale deed and Rs.934/­ was   paid   to   the   vendor,   about   3­4   days   prior   to   the registration   of   the   sale   deed,   for   payment   of   Taccavi loan an amount of Rs.12,566/­ was paid at the time of registration of the sale deed.  DW 1 Shri Gopal, who was an Assistant in the DC office, Ludhiana has stated that Pritam Singh vendor was granted loan of Rs.3,000/­ in the year 1995 and he did not pay a penny from the said loan   till   20.11.1964.     DW   2   Ram   Dass,   a   tubewell mechanic   has   proved   that   Pritam   Singh   had   spent Rs.4,000/­   for   installing   a   tubewell   in   the   year   1963. DW   9   Sat   Pal,   Additional   Wasil   Baqa   Nawis,   Ludhiana has   proved   that   the   vendor   Pritam   Singh   had   taken various loans from the department for purchase of seeds bag.     Rs.500/­   for   repair   of   house   and   Rs.2,500/­   for purchasing   pumping   set.     This   witness   further   stated that Pritam Singh had purchased a Rehri for Rs.1,025/­ from   him   in   the   year   1961.     DW   11   Dalip   Singh   has proved   that   Pritam   Singh   had   borrowed   a   sum   of Rs.3,000/­   from   him   in   the   year  1959   by   executing   a pronote.  This witness has also stated that Pritam Singh had performed marriage of his 5 children.”    
25) In our considered opinion, the approach, reasoning and the conclusion arrived at by the High Court on the question of legal   necessity   as   to   whether   it   existed   in   this   case   while selling the suit land by Pritam Singh or not does not call for any   interference   as   the   same   was   rightly   dealt   with   by   the 11 High Court while appreciating the evidence on record.
26) It has come in evidence that firstly,  the family owed two debts and  secondly,  the family also needed money to make improvement   in   agriculture   land   belonging   to   the   family.

Pritam Singh, being a Karta of  the family, had every right to sell  the   suit   land   belonging  to   family   to  discharge  the  debt liability   and   spend   some   money   to   make   improvement   in agriculture land for the maintenance of his family. These facts were also mentioned in the sale deed.

27)    In our considered opinion, a case of legal necessity for sale   of   ancestral   property   by   the  Karta  (Pritam  Singh)   was, therefore, made out on facts. In other words, the defendants were able to discharge the burden that lay on them to prove the   existence   of   legal   necessity   for   sale   of   suit   land   to defendant   Nos.   2   and   3.   The   defendants   thus   satisfied   the test laid down in Hindu law as explained by Mulla in Article 254 (2) read with Article 241 (a) and (g) quoted above. 12

28) Once   the   factum   of   existence   of   legal   necessity   stood proved, then, in our view, no co­coparcener (son) has a right to   challenge   the   sale   made   by   the   Karta   of   his   family.   The plaintiff being a son was one of the co­coparceners along with his   father­Pritam   Singh. He had no right to challenge such sale in the light of findings of legal necessity being recorded against him. It was more so when the plaintiff failed to prove by any evidence that there was no legal necessity for sale of the suit land or that the evidence adduced by the defendants to prove the factum of existence of legal necessity was either insufficient or irrelevant or no evidence at all.

29)   We   are,   therefore,   of   the   considered   opinion   that   the reasoning and the conclusion arrived at by the High Court is just and proper. We, therefore, concur with the view taken by the High Court calling for no interference. 13

30) In view of the foregoing discussion, the appeal fails and is accordingly dismissed. 

                         

…...……..................................J.             [ABHAY MANOHAR SAPRE] ………...................................J.        [SANJAY KISHAN KAUL] New Delhi;

August 20, 2018  14