Supreme Court Dismisses Appeal in Co-owner Property Dispute, Holds Sale of Undivided Joint Property Without Partition Invalid as to Other Co-owners' Shares. Brij Mohan's Transfer of Entire Property to Appellant Void Except to Extent of His Own Share Under Section 44 of Transfer of Property Act, 1882.

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Case Note & Summary

The dispute concerns a property measuring about 6 cottahs 1 chittack and 30 sq. ft. with 17 rooms at 100/3 Carry Road, Howrah. The property was purchased jointly by two brothers, late Sita Ram and late Salik Ram, in 1959. The plaintiff-respondent Nandu Lal, son of Salik Ram, claimed that his father never gifted his share to Sita Ram, and that there was no family settlement. He alleged that Brij Mohan, son of Sita Ram, had no exclusive right to sell the entire property to the defendant-appellant S.K. Golam Lalchand, a tenant, via a sale deed dated 19.05.2006. Nandu Lal filed Title Suit No.212/2006 seeking declaration and permanent injunction. The trial court dismissed the suit for failure to prove possession, but the first appellate court reversed, disbelieving the family settlement and holding no partition. The High Court affirmed in second appeal. The Supreme Court framed the issue of whether Brij Mohan alone could transfer the entire property. The Court noted that the original sale deed of 1959 was in joint names, and no evidence of gift or family settlement was produced. The property remained undivided joint property. Brij Mohan's sisters had not relinquished their shares. Thus, Brij Mohan could not sell the whole property. The sale deed was valid only to the extent of Brij Mohan's share under Section 44 of the Transfer of Property Act, 1882. The Court rejected the argument that the plaintiff must seek cancellation of the sale deed, as Section 31 of the Specific Relief Act, 1963 is not imperative. The appeal was dismissed, upholding the injunction against the appellant from acting in derogation of co-owners' rights until partition.

Headnote

A) Property Law - Co-ownership - Transfer of Joint Property - Section 44, Transfer of Property Act, 1882 - A co-owner cannot transfer the entire undivided joint property without partition by metes and bounds. The sale deed executed by Brij Mohan in favour of the appellant is valid only to the extent of Brij Mohan's share, and the appellant cannot claim rights over the shares of other co-owners. (Paras 20-21)

B) Evidence - Gift and Family Settlement - Burden of Proof - The party alleging a gift or family settlement must prove it by producing the relevant deed or other cogent evidence. In this case, the alleged gift by Salik Ram to Sita Ram and the family settlement in favour of Brij Mohan were not proved, as no gift deed or settlement document was adduced. (Paras 14-16)

C) Specific Relief - Declaration of Void Instrument - Section 31, Specific Relief Act, 1963 - The word 'may' in Section 31 indicates that seeking a declaration that an instrument is void is not imperative in every case, especially when the person seeking relief is not a party to the instrument. The plaintiff's failure to seek cancellation of the sale deed does not disentitle him to relief. (Para 23)

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Issue of Consideration

Whether Brij Mohan, son of late Sita Ram, alone was competent to transfer the entire suit property by way of sale deed dated 19.05.2006 in favour of defendant-appellant S.K. Golam Lalchand.

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Final Decision

The Supreme Court dismissed the appeal, upholding the judgments of the High Court and the First Appellate Court. The Court held that Brij Mohan alone was not competent to transfer the entire undivided joint property. The sale deed is valid only to the extent of Brij Mohan's share under Section 44 of the Transfer of Property Act, 1882. The appellant is restrained from acting in derogation of the rights of other co-owners until partition. No order as to costs.

Law Points

  • Co-owner cannot transfer entire joint property without partition
  • Section 44 of Transfer of Property Act
  • 1882
  • Section 31 of Specific Relief Act
  • 1963 is not imperative
  • Gift and family settlement must be proved by evidence
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Case Details

2024 LawText (SC) (09) 316

Civil Appeal No.4177 of 2024

2024-09-10

Sudhanshu Dhulia, Pankaj Mithal

2024 INSC 676

Shri Rauf Rahim (for appellant), Shri Pijush K. Roy (for respondent No. 1)

Sk. Golam Lalchand

Nandu Lal Shaw @ Nand Lal Keshri @ Nandu Lal Bayes & Ors.

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Nature of Litigation

Civil appeal against judgment and order of High Court affirming decree of first appellate court in a suit for declaration and permanent injunction regarding property rights.

Remedy Sought

Appellant sought reversal of the decree restraining him from acting in derogation of co-owners' rights and from taking forcible possession.

Filing Reason

Appellant purchased the entire suit property from Brij Mohan, who claimed to be absolute owner, but other co-owners disputed the sale.

Previous Decisions

Trial court dismissed the suit; first appellate court reversed and decreed the suit; High Court affirmed the first appellate court's judgment.

Issues

Whether Brij Mohan alone was competent to transfer the entire suit property by sale deed dated 19.05.2006 in favour of the appellant. Whether the sale deed is valid to the extent of Brij Mohan's share only.

Submissions/Arguments

Appellant argued that Brij Mohan had become absolute owner through gift and family settlement, and that the sale deed was valid. Respondent argued that no gift or family settlement was proved, property remained joint, and Brij Mohan could not sell the whole property.

Ratio Decidendi

A co-owner of an undivided joint property cannot transfer the entire property without partition by metes and bounds. The transfer is valid only to the extent of the transferor's share. The burden of proving a gift or family settlement lies on the party asserting it. Section 31 of the Specific Relief Act, 1963 is not imperative; a person not a party to an instrument need not necessarily seek its cancellation.

Judgment Excerpts

The moot question which has arisen before us in the appeal is whether Brij Mohan, son of late Sita Ram, alone was competent to transfer the entire suit property by way of sale deed dated 19.05.2006 in favour of defendant-appellant S.K. Golam Lalchand. The said sale deed, if at all, in accordance with Section 44 of the Transfer of Property Act, 1882 may be a valid document to the extent of the share of Brij Mohan in the property. Section 31 of the Specific Relief Act, 1963 uses the word ‘may’ for getting declared the instrument as void which is not imperative in every case, more particularly when the person is not a party to such an instrument.

Procedural History

Title Suit No.212/2006 was filed by Nandu Lal. Trial court dismissed the suit. First Appellate Court reversed and decreed the suit. High Court in Second Appeal affirmed the First Appellate Court's judgment dated 07.04.2018 vide judgment dated 06.07.2021. The defendant-appellant then filed Civil Appeal No.4177 of 2024 before the Supreme Court, which was dismissed on 10.09.2024.

Acts & Sections

  • Transfer of Property Act, 1882: 44
  • Specific Relief Act, 1963: 31
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