SUPREME COURT OF INDIA
N.L. UNTWALIA AND O. CHINNAPPA REDDY, JJ.
Arvind and Abasaheb Ganesh Kulkarni and others, Appellants
Versus
Anna and Dhanpal Parisa Chougule and others, Respondents.
Civil Appeal Nos. 216-217 of 1970
Decided on 22-1-1980.
* Second Appeals Nos. 1232 and 1214 of 1961, D/- 3-12-1968 (Bom).
Constitution of India, 1950 - Land Previously Mortgaged - Executed A Deed Of Sale - Consideration For Sale - Legal Necessity - Estate As To Justify Sale - Executed a deed of mortgage in favour (father of appellants) for a sum amount in respect of a single item of land - Executed Exhibit another deed of mortgage in favour of same mortgagee for a sum amount in respect of items of land including land previously mortgaged under Exhibit - Both mortgages were possessor mortgages but it appears from evidence that land was leased back to mortgagor for a stipulated rent - Leaving behind him three sons an adult minors - Borrowed a further sum amount and executed a simple mortgage Exhibit in respect of very items of land covered by Exhibit - Purporting to act as Manager of joint family and guardian of his minor brothers executed a deed of sale Exhibit in favour in respect of four out of ten items of land mortgaged under Exhibits - Consideration for sale amount and was made up of amounts due under three mortgages Exhibits respectively and a sum amount received in cash on date of sale - Six of items which were mortgaged were released from burden of mortgages – Held, Respondents relied upon decision of this Court - That was a suit for specific performance of an agreement of sale executed by Manager of family without even consulting other adult members of family - Object of sale was not to discharge any antecedent debts of family nor was it for purpose of securing any benefit to family - Only reason for sale of land was that plaintiff wanted to consolidate his own holding - Court naturally found that there was neither legal necessity nor benefit to estate by proposed sale and agreement therefore could not be enforced - We do not see what relevance this case has to facts of present case - Appeals Allowed.
JUDGMENT
O. CHINNAPPA REDDY, J. :— On April 15, 1930 Parisa Chougule, executed Exhibit 93, a deed of mortgage in favour of Ganesh Dattatraya Kulkarni (father of the appellants) for a sum of Rs. 1,600/- in respect of a single item of land. On August 25, 1933, Parisa Chougule executed Exhibit-92 another deed of mortgage in favour of the same mortgagee for a sum of Rupees 1,000/- in respect of 10 items of land including the land previously mortgaged under Exhibit 93. Both the mortgages were possessor mortgages but it appears from the evidence that the land was leased back to the mortgagor for a stipulated rent. Parisa Chougule died on June 15, 1934 leaving behind him three sons, Bhupal, an adult, and Anna and Dhanpal, minors. On July 11, 1934, Bhupal borrowed a further sum of Rs. 131/- and executed a simple mortgage Exhibit 91 in respect of the very 10 items of land covered by Exhibit 92. On May 1, 1935. Bhupal purporting to act as the Manager of the joint family and the guardian of his minor brothers executed a deed of sale Exhibit 90 in favour of Ganesh Dattatraya Kulkarni in respect of four out of the ten items of land mortgaged under Exhibits 93, 92 and 91. The consideration for the sale was Rs. 3,050/- and was made up of the amounts of Rs. 1,600/-, Rs. 1,000/- and Rs. 131/- due under the three mortgages Exhibits 93, 92 and 91 respectively and a sum of Rs. 200/- received in cash by Bhupal on the date of sale. Six of the items which were mortgaged were released from the burden of the mortgages. On September 23, 1946, Anna, second son of Parisa, became a major. On Aug. 31, 1951, Dhanpal, third son of Parisa, became a major. On August 27, 1953 Anna and Dhanpal filed the suit out of which this appeal arises for a declaration that the sale deed dated May 1, 1935 was not for legal necessity and not for the benefit of the estate and therefore, not binding on them. They also prayed that joint possession of their two-third share may be given to them. The trial Court found that there was legal necessity for the sale to the extent of Rs. 2,600/- only, that the consideration of Rs. 3,050/- for the sale was inadequate as the lands were worth about Rs. 4,000/- that there was no such compelling pressure on the estate as to justify the sale and therefore, the sale was not for the benefit of the family and hence not binding on the two plaintiffs. A decree was granted in favour of the two plaintiffs for joint possession of two-third share of the lands subject to their paying a sum of Rs. 1,733 5 as 4 ps., to the second defendant. On appeal by the second defendant the Assistant Judge, Kolhapur affirmed the finding of the trial Court that there was legal necessity to the extent of Rs. 2,600/- only, that the value of the land was Rs. 4,000/- and that there was no pressure on the estate justifying the sale. The Assistant Judge found that there was no evidence to show that the defendant made any bona fide enquiry to satisfy himself that there was sufficient pressure on the family justifying the sale. He however, held that the suit of the first plaintiff was liable to be dismissed as it was barred by limitation. He, therefore, modified the decree of the trial Court by granting a decree in favour of the second plaintiff only for possession of a one-third share in the lands subject to payment of a sum of Rs. 866.66 ps. to the second defendant. The first plaintiff as well as the second defendant preferred second appeals to the High Court. The High Court allowed the appeal filed by the first plaintiff and dismissed the appeal filed by the second defendant. The legal representatives of the second defendant have preferred these appeals after obtaining special leave from this Court under Art. 136 of the Constitution.
2. It is clear that these appeals have to be allowed. The facts narrated above show that out of the consideration of Rs. 3,050/- for the sale there was undoubted legal necessity to the extent of Rs. 2,600/-, the total amount due under the two d
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