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1999 Supreme(SC) 824

SUPREME COURT OF INDIA
MADHUKAR VISHWANATH MUNJE
Versus
MADHAO
Decided on : August 10, 1999

The period for limitation to set aside a transfer of property made by the guardian of a ward who has attained majority is three years, as prescribed by Article 60 of the Limitation Act.

Headnote:

Limitation Act - Property Alienation - Legal Necessity

Fact of the Case:

The appellant, a Hindu minor, filed a suit to recover possession of immovable property transferred by his de facto guardian. The suit was decreed by the trial court but reversed by the first appellate court and the High Court, holding it barred by limitation.

Finding of the Court:

The court dismissed the appeal, stating that the suit was filed much after the three-year limitation period for setting aside the transfer of property made by the guardian of a ward who has attained majority.

Issues: Validity of property alienation, applicability of limitation period, legal necessity for the alienation

Ratio Decidendi: The court held that the suit should have pleaded for a declaration that the alienation was bad in law, and the period for limitation for such a suit was prescribed by Article 60 of the Limitation Act.

Final Decision: The civil appeal was dismissed with no order as to costs.

Judgement Key Points

- The period for limitation to set aside a transfer of property made by the guardian of a ward who has attained majority is three years under Article 60 of the Limitation Act. (!) - There is a discussion on whether Article 65 or Article 60 applies depending on whether the suit seeks possession based on title or a declaration that the alienation was not for legal necessity; the judgment emphasizes Article 60 for setting aside such transfer. (!) (!) - The suit filed by the appellant contended there was no legal necessity for the alienation; the court held that the plaint should plead for a declaration that the alienation was bad in law, and possession would be a consequential relief, with Article 60 applying. (!) (!) - The defendants argued for Article 65 (twelve-year period) for possession based on title; the court did not accept this as applicable given the pleadings. (!) (!) - The civil appeal was dismissed; the period elapsed well beyond three years from attainment of majority. (!)

What is the period of limitation to set aside a transfer of property made by the guardian of a ward who has attained majority?

What is the appropriate Article of the Limitation Act applicable to a suit challenging alienation by a guardian where legal necessity is in question?

What constitutes the proper pleadings and relief (declaration that alienation is bad in law) in such a suit, and which Article governs the period of limitation for that relief?


( 1 ) A reference to a larger Bench has been made in this case but, having gone into the facts, we find it to be unnecessary.

( 2 ) THE appellant was born on 22-8-1948 and attained majority on 26 (sic 22)-8-1966. By this time his parents and his only brother had died. His maternal uncle, Baburao Madhorao Puranik became the appellants de facto guardian and, as such, transferred immovable property belonging to the appellant to Respondents 2 to 6 and one other. On 7-2-1973, the appellant filed a suit praying that Defendants 2 to 7, the transferees, be required to deliver to him possession of the said property and for incidental reliefs. Baburao was the first defendant to the suit. In para 4 of the plaint the appellant set out the total income derived from the said property and pleaded that it was more than sufficient for his maintenance. Accordingly, he submitted in para 5 that there was no legal necessity to transfer any portion of the said property for his maintenance. The alienation thereof, he averred, was not for legal necessity and was not binding on him. In the written statement filed on behalf of the transferees, it was pleaded that there was legal necessity for the alienation and that, therefore, the alienation was valid. It was also submitted that the suit was barred by time.

( 3 ) THE suit was decreed by the trial court and it was held that Article 65 of the Limitation Act, 1963, was the appropriate provision. The first appellate court reversed the trial court, holding that the period of limitation for filing of suit began on the date of the alienation. The High Court affirmed the decision of the first appellate court. It held that the suit not having been filed within three years from the date on which the appellant attained majority, it was barred by limitation.

( 4 ) MR Bobde, learned counsel for the appellant submitted that it was article 65 of the Limitation Act which was applicable. It prescribed a period of twelve years for a suit for possession of immovable property or any interest cherein based on title and time began to run when the possession of the defendant become adverse to the plaintiff. He submitted that, by reason of Section 11 of the Hindu Minority and Guardianship Act, 1956,"no person shall be entitled to dispose of, or deal with, the property of a hindu minor merely on the ground of his or her being the de facto guardian of the minor". That the defendant, Baburao Madhorao Puranik, was the appellants de facto guardian had been established and, therefore, the disposal by him of the said property was void. Being void, it was open to the appellant to file the suit for possession of the said property and the period for limitation for such suit was prescribed by Article 65.

( 5 ) WE do not think, given the state of the pleadings, that we can uphold the submission. The suit proceeded upon the basis that there was no legal necessity for Baburao to have alienated the said property. The plaint should, therefore, properly have pleaded for a declaration that the alienation was bad in law; possession was only the consequential relief. Even if the suit was entertained as pleaded, no decree for possession could have been passed without first finding that the alienation was not for legal necessity and was, therefore, bad in law. To such a suit the provisions of Article 60 apply. Article 60 relates to a suit to set aside a transfer of property made by the guardian of a ward by the ward who has attained majority and the period prescribed is three years commencing on the date on which the ward attains majority. The suit in the instant case was filed much after this period of three years had elapsed in August 1969.

( 6 ) IN these circumstances, the civil appeal is dismissed. No order as to costs.

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