1926 Supreme(SC) 29
PRIVY COUNCIL [ON APPEAL FROM THEEAST INDIES]
LORD BLANESBURGH, LORD DARLING, MR. AMBER ALI, AND LORD SALVESEN.
MASIT ULLAH - Appellant
Versus
DAMODAR PRASAD - Respondents
On Appeal from the High Court at Allahabad.
Decided On : June 22. 1926.
Solicitor for appellants : H. S. L. Polak.
In a Mitakshara joint family, a great-grandson's liability to discharge the valid ancestral debts of his ancestor is co-extensive with his birthright to the ancestral property, provided he receives assets from the estate.
Headnote:(A) Hindu Law (Mitakshara) - Liability of descendants for ancestral debts - Right in ancestral property extends to four generations beginning with the father - Rights of descendants are co-extensive with their obligations - A great-grandson, being a member of the joint family by birth, is liable to discharge the valid debts of the ancestor to the extent of the assets received. (Paras 11-16)
(B) Collusive Litigation - Where evidence is deliberately withheld and transactions are designed to defeat the rights of third parties, the court may dismiss the suit as collusive. (Paras 21-22)
Facts of the case:
A suit was filed to set aside the sale of joint family property by a father, alleging absence of necessity. The sale proceeds were primarily used to discharge mortgages created by the great-grandfather. The lower appellate court held that the great-grandson was not liable for the debts of the great-grandfather and allowed the recovery of a portion of the property.
Findings of Court:
The court found that the great-grandson is a member of the joint family and his liability to discharge ancestral debts is co-extensive with his rights in the ancestral property. Furthermore, the court observed that the suit was collusive between the father and son, as the father deliberately avoided testifying regarding the application of the sale proceeds.
Issues: Whether a great-grandson in a Mitakshara family is obligated to liquidate the debts of his ancestor (great-grandfather) and whether the alienation of property to discharge such debts is valid.
Ratio Decidendi: Under Mitakshara law, rights in ancestral property are acquired by birth up to the third generation after the owner (son, grandson, and great-grandson). Since rights are co-extensive with obligations, the great-grandson is liable for the valid debts of the ancestor. While traditional interpretations varied the extent of liability, British Indian courts treat the obligations of sons, grandsons, and great-grandsons as co-extensive, contingent upon the receipt of assets from the estate.
Result: Judgment and decree of the High Court set aside and the plaintiff's suit dismissed with costs.
Legal Category Hierarchy
-
family law
-
hindu law
-
mitakshara law
- joint family property
- ancestral debts
-
mitakshara law
-
hindu law
-
practice and procedure
-
civil litigation
- collusive suits
-
civil litigation
Judgement
Appeal (No. 28 of 1925) from a decree of the High Court (June 20, 1922) varying a decree of the Subordinate Judge of Moradabad. The suit was instituted by the respondent to set aside a sale made by his father Janki Prasad in 1906 of joint family property for Rs. 18,400. The purchasers, from whom the property was claimed, and Janki Prasad were made defendants. The appellants, the purchasers, pleaded, among other pleas, that the sale was for necessity, and in satisfaction of antecedent debts.
Jowahir Lal, the grandfather of Janki Prasad, had mortgaged the property in 1895 for Rs. 11,000 to Abid Ali Khan ; and in 1903 had executed further mortgages in favour of Sri Koer and Ganeshi Lal. It was concurrently found by both Courts in India that out of the consideration money Rs. 12,900 was applied to discharge the first of the above mortgages, and Rs. 3122 to discharge the two mortgages last mentioned, which both Courts found were made for legal necessity.
The decrees made by the Subordinate Judge and by the High Court on appeal appear from the judgment of the Judicial Committee, in which the facts are more fully stated. The learned judges on appeal (Mears C.J. and Piggott J.) were of opinion that the payment of Rs. 12,900 to discharge the mortgage by Jowahir Lal could not be treated as for necessity, as although Janki Prasad was under an obligation to discharge the debt of his grandfather, the plaintiff was not under an obligation to discharge the debt of his great grandfather.
1925. March 23. De Gruyther K.C. and Abdul Majid for the appellants.
The respondent did not appear.
June 22. The judgment of their Lordships was delivered by
MR. AMEER ALI. This appeal arises out of a suit brought by the plaintiff Damodar Prasad on September 19, 1918, to set aside an alienation effected by his father Janki Prasad on September 17, 1906. Damodar Prasad the plaintiff is a member of a Hindu family subject to the Mitakshara law, and the allegations on which he seeks to have the sale by his father set aside are, in the common form, alleged immorality of the father, jointness of the family, and the absence of necessity for the sale, which is sought to be set aside. The plaintiff made his father Janki Prasad a defendant in the suit. Originally, he was defendant No. 6, but, after the addition of the representatives of some of the vendees, who had died in the meantime, Janki Prasad was made defendant No. 11.
In his plaint the plaintiff prayed to be put in proprietary possession of the property in suit and for mesne profits. In their answer to the plaintiffs claim the defendants denied that the property was ancestral, and they alleged that it was sold to them for Rs. 18,400, which was applied for family purposes, and that the alienation was valid in law and binding on the plaintiff.
The suit came for trial before the Subordinate Judge of Moradabad who, on February 25, 1920, held (inter alia) that the plaintiff had failed absolutely to prove the allegations made by him against his father of immorality ; he held also that it had been established that out of the Rs. 18,400 over Rs. 16,000 had been applied to the discharge of ancestral debts, the payment of which was binding on the joint family of which the plaintiff was a member. He held further that Janki Prasad, the grandson of Jawahir Lal who had contracted the debts that had been discharged out of the sale proceeds, was " competent to transfer the family property to discharge his deceased grandfathers debts which were not proved in the case to have been taken for any immoral purposes." He also held that Damodar Prasad, the great-grandson of Jawahir Lal, was burdened with the same obligation that lay upon Janki Prasad. But the Subordinate Judge found that out of the consideration of Rs. 18,400 a sum of Rs. 2000 odd was not properly accounted for, and that in respect of that amount the plaintiff was under no obligation. He found also that Janki Prasad, on July 9, 1907, transferred his half shar