Supreme Court Dismisses Appeal in Property Dispute, Upholds Concurrent Findings of Courts Below. Sale by Karta for Legal Necessity Binding on All Family Members Including Sisters.

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Case Note & Summary

The appeal arose from a property dispute concerning 'Moti Building' in Jalna, consisting of four houses. The original plaintiffs, sisters of defendant No.3 Shankarlal, claimed that the suit property was ancestral and they had an equal share. Defendant No.3 sold the property to Bansilal Shivlal by registered sale deed dated 07.10.1965. After Bansilal's death, defendant Nos.1 and 2 inherited the property. In 1971, defendant Nos.1 and 2 filed Civil Suit No.48/1971 against defendant No.3 and others for declaration of title and injunction, which was decreed in their favor on 31.01.1975, holding them as owners. The decree became final. Subsequently, the plaintiffs (sisters) filed a suit challenging the sale deed and the decree, alleging that the property was ancestral and they were not parties to the earlier suit. Defendant Nos.1 and 2 contested, raising defenses of limitation, maintainability, and that the sale by Karta was for legal necessity. The Trial Court dismissed the suit on 16.10.1981, the First Appellate Court affirmed on 09.05.1988, and the High Court dismissed the second appeal on 19.12.2008. The Supreme Court dismissed the appeal, holding that the concurrent findings were binding, the sale by Karta for legal necessity was binding on all family members, and the suit was collusive filed at the instigation of defendant No.3 to avoid execution of the decree.

Headnote

A) Civil Procedure - Concurrent Findings - Binding Nature - The Supreme Court held that concurrent findings of fact recorded by the Trial Court, First Appellate Court, and High Court are binding on the Supreme Court unless perverse or based on no evidence. (Paras 20-21)

B) Hindu Law - Karta's Power of Alienation - Legal Necessity - Sale of ancestral property by Karta for legal necessity and benefit of family is binding on all coparceners, including sisters. The plaintiffs failed to plead or prove that the sale was not for legal necessity. (Paras 22-25)

C) Civil Procedure - Collusive Suit - Maintainability - A suit filed at the instigation of the judgment-debtor to avoid execution of a valid decree is collusive and not maintainable. The plaintiffs admitted filing the suit at the behest of their brother, defendant No.3. (Paras 21, 26)

D) Limitation Act, 1963 - Suit to Challenge Decree - Barred by Limitation - The suit challenging the decree dated 31.01.1975 was filed after three years and was barred by limitation. (Para 14)

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Issue of Consideration

Whether the High Court was justified in dismissing the plaintiffs' second appeal and upholding the dismissal of the suit challenging the sale deed and decree.

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Final Decision

The Supreme Court dismissed the appeal, upholding the judgments of the Trial Court, First Appellate Court, and High Court, which had dismissed the plaintiffs' suit.

Law Points

  • Concurrent findings of fact binding on High Court and Supreme Court
  • Sale by Karta for legal necessity binding on all coparceners
  • Collusive suit not maintainable
  • Limitation for challenging decree
  • Maintainability of suit challenging decree
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Case Details

2019 LawText (SC) (4) 59

Civil Appeal No.4282 of 2019 (Arising out of S.L.P.(C) No.31350 of 2009)

2019-04-25

Abhay Manohar Sapre, Dinesh Maheshwari

Vinay Navare (for appellants), Nishant Ramakantrao Katneshwarkar (for respondents)

Hirabai (D) Thr. L.Rs. & Ors.

Ramniwas Bansilal Lakhotiya (D) by L.Rs. & Ors.

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Nature of Litigation

Civil suit challenging sale deed and decree in relation to ancestral property.

Remedy Sought

Plaintiffs sought declaration that the sale deed dated 07.10.1965 and decree dated 31.01.1975 were not binding on them.

Filing Reason

Plaintiffs claimed the suit property was ancestral and they had an equal share, and the sale was without their knowledge and consent.

Previous Decisions

Civil Suit No.48/1971 was decreed in favor of defendant Nos.1 and 2 on 31.01.1975, holding them as owners. The decree became final.

Issues

Whether the sale by Karta for legal necessity is binding on all coparceners? Whether the suit challenging the decree was collusive and not maintainable? Whether concurrent findings of fact are binding on the Supreme Court?

Submissions/Arguments

Appellants argued that the suit property was ancestral and they had a share, and the sale deed and decree were not binding on them. Respondents argued that the suit was barred by limitation, collusive, and the sale by Karta for legal necessity was binding on all family members.

Ratio Decidendi

A sale of ancestral property by the Karta for legal necessity and benefit of the family is binding on all coparceners, including sisters. A suit filed at the instigation of the judgment-debtor to avoid execution of a valid decree is collusive and not maintainable. Concurrent findings of fact are binding on the Supreme Court unless perverse.

Judgment Excerpts

The sale deed has been executed by Shankarlal, who is admittedly the Karta of the family. ... He, therefore, sold the house in favour of Bansilal. The plaintiffs themselves admitted in their evidence that they filed a civil suit at the instigation of defendant No.3 their real brother. Once it was held that the sale of the suit property was made by the Karta defendant No.3 and it was made for legal necessity and the benefit of the family, the same was binding on all the members of the family including the plaintiffs.

Procedural History

Civil Suit No.48/1971 filed by defendant Nos.1 and 2 against defendant No.3 was decreed on 31.01.1975. Plaintiffs then filed a suit challenging the sale deed and decree, which was dismissed by Trial Court on 16.10.1981. First appeal dismissed on 09.05.1988. Second appeal dismissed by High Court on 19.12.2008. Appeal to Supreme Court by special leave dismissed on 25.04.2019.

Acts & Sections

  • Limitation Act, 1963:
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Supreme Court Supreme Court Dismisses Appeal in Property Dispute, Upholds Concurrent Findings of Courts Below. Sale by Karta for Legal Necessity Binding on All Family Members Including Sisters.
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