Supreme Court Allows Appeal in Hindu Law Alienation of Ancestral Property Case, Holding Lower Court Decrees Unsustainable. The Court Rejected the Plea of Limitation Under Article 109 of the Limitation Act, 1963, and Confirmed the Suit House Was Ancestral Property, Though Final Operative Directions Were Not Available in the Provided Text.

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Case Note & Summary

Background: The appeal before the Supreme Court arose from a civil suit filed by plaintiffs against the appellants, who were original defendants, seeking a declaration that a registered sale deed dated 30 May 1959 executed by the plaintiffs' father in favour of the appellants was void and inoperative, and for restoration of possession of a suit house bearing Municipal No 1153/1 situated in Rajgarh locality, Datia town, Madhya Pradesh. The plaintiffs' father was joined as defendant no.6 and supported the plaintiffs. The contesting defendants were the appellants before the Supreme Court. Facts: The plaintiffs claimed that the suit house was their ancestral property in which they had an undivided 3/4th interest, and their father had no right to transfer it. The defendants contended the house belonged exclusively to their vendor, alternatively that the alienation was for family necessity and binding on the plaintiffs. The trial court held the suit house was ancestral property with plaintiffs having 3/4th undivided interest and father 1/4th, directed joint possession. The High Court modified the decree by allowing the plaintiffs' cross objections, decreeing possession in favour of plaintiffs but staying execution for six months to permit the contesting defendants to file a suit for general partition; if filed, stay to continue till disposal, otherwise plaintiffs entitled to possession. Legal Issues: The core questions were whether the suit was within limitation under Article 109 of the Limitation Act, 1963; whether the suit house was ancestral or self-acquired property of the father; and whether the sale deed executed by the father as karta was valid and binding on the plaintiffs. Arguments: The contesting defendants argued that the suit was barred by limitation because it was refiled on 26 November 1975 after the original plaint was returned for want of pecuniary jurisdiction; the house was self-acquired; the sale deed was legal and valid as karta of joint family for legal necessity; the suit was collusive filed after eleven and a half years, and plaintiffs stood by while defendants spent money on reconstruction. The plaintiffs argued that both courts below concurrently found no legal necessity; the father was not shown to have incurred debts or been in stringent economic condition, so the sale of plaintiffs' 3/4th interest was not binding. Court's Analysis: The Supreme Court first observed that the judgment and decree of the lower courts could not be sustained. On limitation, it held that Article 109 of the Limitation Act, 1963 provides a twelve-year period from the date the alienee takes possession; possession was taken on 30 May 1959, the original suit was filed on 20 August 1970 within limitation, and the refiling on 26 November 1975 after return for pecuniary jurisdiction was entitled to exclusion under Section 14 of the Limitation Act, 1963, as the plaintiffs had prosecuted in good faith before a court lacking pecuniary jurisdiction. The plea of limitation was rejected. On merits, the Court found ample evidence that the suit house was ancestral property occupied by the grandfather, later by the father and uncle, and the sale deed recital of family necessity indicated joint family property. The Court rejected the contention that the house was self-acquired property of the father. The provided text ends before the Court's final resolution of the legal necessity issue and operative directions. Decision: The Supreme Court had expressed that the lower court decrees were unsustainable, but the final operative order and complete reasoning on legal necessity are not available in the extracted text. The Court recorded an undertaking by appellant no.1 on affidavit that if the appeal was allowed, the appellants would pay Rs.2,00,000 ex gratia to the plaintiffs.

Headnote

A) Limitation Law - Suit to Set Aside Father's Alienation of Ancestral Property - Article 109 Limitation Act, 1963 - Suit filed within 12 years from date alienee took possession on 30 May 1959; original suit filed on 20 August 1970, within limitation; refiling in District Court on 26 November 1975 after return for pecuniary jurisdiction entitled to exclusion under Section 14 Limitation Act - Held that the plea of limitation was rejected (Paras not numbered in original text).

B) Hindu Law - Ancestral Property - Determination of Nature of Property - Evidence showed suit house occupied by grandfather, later by father and uncle, recital in sale deed of family necessity - Both courts below held suit house ancestral; Supreme Court found finding well sustained and rejected contention that house was self-acquired property of father - Held that property was ancestral in hands of father (Paras not numbered in original text).

C) Hindu Law - Karta's Power of Alienation - Legal Necessity - Sale deed executed by father as karta of joint family; validity depends on legal necessity; plaintiffs contended no legal necessity; lower courts found no legal necessity; Supreme Court was examining whether sale deed was binding - Not fully resolved in provided text due to incomplete judgment; hence final holding on this issue not available (Paras not numbered in original text).

D) Limitation Law - Section 14 Exclusion - Return of Plaint for Pecuniary Jurisdiction - Civil Judge Class II had no pecuniary jurisdiction; High Court ordered return; refiling in District Court after valuation; time spent prosecuting in good faith before court without jurisdiction excluded - Held suit within limitation (Paras not numbered in original text).

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Issue of Consideration

Whether the suit challenging the sale deed was within limitation; whether the suit house was ancestral property or self-acquired property of the father; whether the sale deed executed by the father as karta was valid and binding on plaintiffs for legal necessity

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Final Decision

The Supreme Court observed that the judgment and decree passed by the Trial Court and confirmed with modification by the High Court could not be sustained. It rejected the plea of limitation under Article 109 and Section 14 of the Limitation Act, 1963, and confirmed the finding that the suit house was ancestral property, rejecting the contention that it was self-acquired property of the father. The final operative directions on the legal necessity issue and the ultimate disposal of the appeal are not available in the provided text.

Law Points

  • Article 109 Limitation Act
  • 1963 provides twelve-year limitation for Hindu governed by Mitakshara law to set aside father's alienation of ancestral property from date alienee takes possession
  • Section 14 Limitation Act
  • 1963 excludes time spent prosecuting in good faith before court lacking pecuniary jurisdiction
  • Ancestral property in hands of father gives sons right by birth and sale by father without legal necessity is not binding on coparceners
  • Recital of family necessity in sale deed not conclusive and can be rebutted by evidence
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Case Details

1996 LawText (SC) (12) 46

1996-12-13

N.P. Singh, S.B. Majmudar

Shri Khanduja

Sunder Das & Ors.

Gajananrao & Ors.

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Nature of Litigation

Civil suit for declaration that registered sale deed executed by father in favour of appellants/defendants is void and inoperative, and for restoration of possession of suit house.

Remedy Sought

Plaintiffs sought declaration that the registered sale deed dated 30 May 1959 executed by their father in favour of the contesting defendants was void and inoperative, and restoration of possession of suit house bearing Municipal No 1153/1 situated in Rajgarh locality, Datia town, Madhya Pradesh.

Filing Reason

Plaintiffs claimed the suit house was their ancestral property in which they had 3/4th undivided interest; their father had no right to transfer the suit house to the contesting defendants and consequently the sale deed was not binding on them.

Previous Decisions

Trial Court held the suit house was ancestral property with plaintiffs having 3/4th undivided interest and father 1/4th; directed plaintiffs be placed in joint possession with contesting defendants. High Court modified the decree by allowing plaintiffs' cross objections: plaintiffs entitled to possession, execution stayed for six months to allow contesting defendants to file a suit for general partition; if filed, stay continue till disposal, otherwise plaintiffs entitled to possession.

Issues

Whether the suit challenging the sale deed was barred by limitation under Article 109 of the Limitation Act, 1963 given the refiling in a competent court after return of plaint for want of pecuniary jurisdiction. Whether the suit house was ancestral property in the hands of the plaintiffs' father or self-acquired property of the father. Whether the sale deed executed by the father as karta of the joint Hindu family was valid and binding on the plaintiffs for legal necessity.

Submissions/Arguments

Contesting defendants argued the suit was barred by Article 109 of the Limitation Act because the original plaint was returned for pecuniary jurisdiction and refiled on 26 November 1975 beyond the twelve-year period; the suit house belonged exclusively to the father as self-acquired property; alternatively, the father as karta executed the sale deed for legal necessity and family requirement as recited in the deed, which was binding on plaintiffs; the suit was collusive filed after eleven and a half years, and plaintiffs stood by while defendants spent money on reconstruction and renovation. Respondent-plaintiffs argued both courts below concurrently found no legal necessity for the father to execute the sale deed; the father was not shown to have incurred debts or been in a stringent economic condition requiring sale; therefore the father could not legally alienate the plaintiffs' undivided 3/4th interest, and the concurrent findings called for no interference.

Ratio Decidendi

Article 109 of the Limitation Act, 1963 provides a twelve-year limitation for a Hindu governed by Mitakshara law to set aside his father's alienation of ancestral property from the date the alienee takes possession. The original suit was filed within limitation on 20 August 1970; refiling in the District Court on 26 November 1975 after return of plaint for want of pecuniary jurisdiction was entitled to exclusion of time under Section 14 of the Limitation Act, 1963. The finding that the suit house was ancestral property in the hands of the father was well sustained. A sale by a father as karta of a joint Hindu family of ancestral property without legal necessity is not binding on coparceners.

Judgment Excerpts

Having carefully considered the aforesaid rival contentions we find that the judgment and decree as passed by Trial Court and as confirmed with modification by the Division bench of the High Court cannot be sustained. Article 109 in the Schedule to the Limitation Act. 1963 provides for a period of limitation of twelve years for a Hindu governed by Mitakshara law who files a suit to set aside his father’s alienation of ancestral property and twelve years’ period begins from the date when alienee takes possession of the property. This contention was rightly not accepted by both the courts below for the simple reason that originally the suit was filed within limitation, but it was filed before a court which was found to be lacking in pecuniary jurisdiction and when it was re-filed before a competent court the plaintiffs were entitled to the benefit of Section 14 of the Limitation Act enabling them to get exclusion of the time from 20th August 1970 to 22nd November 1975 when the High Court took the view that the suit should be returned for presentation to the proper court. Both the courts below have held that the suit house was an ancestral property in the hands of plaintiffs’ father, defendant no.6. This finding is well sustained on the record of the case and calls for no interference in this appeal. We, therefore, reject the contention canvassed by learned counsel for the appellants that the suit house was self-acquired property of defendant no.6.

Procedural History

Original suit Civil Suit No.13A of 1978 was filed by plaintiffs in the Court of District Judge, Datia, seeking declaration that sale deed dated 30 May 1959 was void and for restoration of possession. The Trial Court held the suit house ancestral, plaintiffs entitled to 3/4th interest, and directed joint possession. Contesting defendants filed First Appeal No.2 of 1979 before the High Court of Madhya Pradesh; the Division Bench dismissed the appeal but allowed the plaintiffs' cross objections, modifying the decree to grant possession to plaintiffs with a six-month stay to allow contesting defendants to file a suit for general partition. The contesting defendants then appealed to the Supreme Court by special leave under Article 136 of the Constitution of India.

Acts & Sections

  • Constitution of India: Article 136
  • Limitation Act, 1963: Article 109, Section 14
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