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1935 Supreme(SC) 67

PRIVY COUNCIL [ON APPEAL FROM THEEAST INDIES]
LORD THANKERTON, LORD ALNESS AND SIR JOHN WALLIS
TYAGARAJA MUDALIYAR - Appellant
Versus
VEDATHANNI - Respondents
On appeal from the High Court at Madras;
Decided On : December 6, 1935.

Advocates:
Solicitor for appellants:Harold Shephard. Solicitors for respondents: Hy. S. L. Polak & Co.

Oral evidence is admissible to prove that a written document was never intended to operate as a contract, as this denies the existence of an agreement altogether rather than varying its terms, thus falling outside the prohibition of Section 92 of the Indian Evidence Act.

Headnote:(A) Indian Evidence Act, 1872 - Sections 91 and 92 - Admissibility of oral evidence to prove the absence of a contract - Section 91 excludes oral evidence of the terms of a document, and Section 92 excludes oral evidence for the purpose of contradicting, varying, adding to, or subtracting from such terms - However, oral evidence is admissible to show that a signed document was never intended to operate as an agreement but was brought into existence solely for the purpose of creating evidence of some other matter.

(B) Distinction between varying terms and denying the existence of an agreement - Evidence to vary the terms of an agreement in writing is not admissible, but evidence to show that there is no agreement at all is admissible.

Facts of the case:
A widow instituted a suit for arrears of maintenance. A document had been executed by her and her husband's brother affirming the undivided status of the family and purporting to make provision for her maintenance. It was alleged that the document was not intended to be a final contract for maintenance but was solely intended as a voucher establishing the joint undivided nature of the family, and that the provision for maintenance was never intended to be acted upon.

Findings of Court:
The courts below found that the document was not intended to operate as an agreement and was brought into existence solely for the purpose of creating evidence of the undivided status of the family.

Issues: Whether oral evidence is admissible under Sections 91 and 92 of the Indian Evidence Act to establish that a written document was not intended to be an effective or operative contract.

Ratio Decidendi: Section 92 excludes oral evidence to vary the terms of a written contract but does not preclude evidence to show that the parties had not agreed to contract on the terms set forth in the document. If a paper is signed with the express intention that it should not be an agreement, it cannot be enforced as one. Such evidence does not vary the terms of a contract but proves that no contract exists, and therefore does not fall within the prohibition of Section 92.

Result: Appeal dismissed with costs.

Legal Category Hierarchy

  • family law
    • maintenance
      • hindu widow maintenance
  • practice and procedure
    • evidence
      • admissibility of oral evidence
  • contract law
    • formation
      • sham transactions

Judgement

APPEAL (No. 13 of 1934) from a judgment and decree of the High Court (March 17, 1932) affirming a judgment and decree of the Subordinate Judge of Negapatam (February 14, 1929).

The question arising upon this appeal was whether the respondent, a Hindu widow, could maintain her suit for arrears of maintenance having regard to the terms of a document of December 28, 1912, which she pleaded was executed by her and her husbands brother with the object of evidencing the joint undivided status of the family. She alleged that the provision for her maintenance in the deed was never given effect to, and that it was intended to make a suitable provision in future for her maintenance.

The main question was whether oral evidence was admissible, in view of s. 92 of the Indian Evidence Act, 1872, to prove facts inconsistent with the terms of the document of December 28, 1912.

The facts and the relevant statutory provisions appear from the judgment of the Judicial Committee.

The Subordinate Judge held that the respondent could give oral evidence with a view to establishing that the provision in the deed regarding her maintenance was not intended to be acted upon; and that the deed did not embody a final contract as to her maintenance which was left over for future settlement.

Upon appeal to the High Court the learned judges (Sundaram Chetti and Curgenven JJ.) delivered separate concurring judgments dismissing the appeal. Sundaram Chetti J. held that the deed was executed nominally and that it was not intended to operate as a contract between the parties regarding maintenance, but was intended to secure the acknowledgment of the plaintiff as to the joint status of her husband and his brother. He held that in the circumstances oral evidence to prove such a case would be admissible and that the case did not fall under s. 92 of the Indian Evidence Act. Curgenven

J. held that the plaintiff was entitled to arrears of maintenance that the document was a nominal contract and oral evidence was admissible.

1935. Nov. 5, 7. De Gruyther K.C. and Subba Row for the appellants. The question is whether oral evidence could be given to show that the deed was not intended to embody a final arrangement fixing the respondents maintenance, and whether the evidence which has been given is admissible for the purpose of substantiating the claims she sets up.

[Reference was made to ss.91 and 92 of the Indian Evidence Act, 1872, and to the provisos to those sections].

Proviso 3 does not touch the present case. The best course is to place the evidence before the Board for your Lordships to say whether it is admissible. Unless the respondent can bring herself within one of the provisos the evidence is inadmissible. Even though the law of England is quite different the Evidence Act must be followed Balkishen Das v. Legge .(( 1899) L. R. 27 I. A. 58, 59, 65.)

[LORD THANKERTON There are concurrent findings against you].

This case really almost stands or falls on the view the Board takes about the respondents evidence to the effect that the reference in the deed to maintenance was not intended to be acted upon. The question is whether evidence of this kind is admissible for the purpose of varying the terms of the deed. Concurrent findings of fact cannot dispose of the question of the admissibility of evidence. Further, this is hear-say evidence and is not admissible.

The evidence does contradict, vary, add to or subtract from the terms of the document. The Subordinate Judge took the view that it did not, and that the document was never intended to have any operation whatever. He cited various cases which he said would authorize the admission of the evidence. Amongst all those cases there is not one which would warrant what has been done. The document was not a sham. Pertab Chunder Ghose v. Mohendra Purkait (( 1889) L. R. 16 I. A. 233, 237.) was the only authority which consisted directly of an assertion that a document would not be enforced; in that case it was he


































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