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2012 Supreme(SC) 810

SUPREME COURT OF INDIA
K.S. RADHAKRISHNAN & DIPAK MISRA, JJ.
MATHAI SAMUEL & ORS. - Appellants
VERSUS
EAPEN EAPEN (DEAD) BY LRS. & ORS. - Respondents
Civil Appeal No. 8197 of 2012 [Arising out of SLP (Civil) No.13385 of 2009]
Decided on : 21-11-2012.

Headnote:

Indian Succession Act - Section 2(h)- Registration Act - Section 17(1) (b) or (c) – Employment – Transfer - Plaintiffs and one Eapen for partition and separate possession of various items properties of which Court are in this appeal concerned only with item plaint schedule trial court passed preliminary decree giving various directions however with regard to above mentioned item which relates cents was that exhibit document did not preclude executants rights for disposing same during their lifetime - Consequently trial court held that so far as item schedule of exhibit is concerned same has characteristics of a testamentary disposition therefore not available for partition court sale deed executed in favour defendant by Sosamma Eapen was valid so also sale deed executed defendant in favour of 4th defendant-Held, Subsequent conduct of Eapen and Sosamma has no bearing in understanding the scope of exhibit document executants it may be noted had jointly executed a mortgage exhibit Mathew in which they had affirmed their right to execute such a mortgage and traced it to exhibit document - Further executants had not parted with possession item Schedule of exhibit their sons at any point of time and retained ownership. Exhibit document was executed in favour defendant and later he sold property defendant - Now from onwards defendant stranger family has been in exclusive possession and ownership of the property – Court may also point out even though was executed suit was filed only that after more than thirteen years - It will also be unjust to deprive him of his ownership and possession at this distance of time – Court therefore find that the right title interest possession and ownership of item Schedule were with the executants and they had the full control and freedom to deal with that property as they liked unlike Schedule Court have therefore, no hesitation in holding that so far that item is concerned document in question cannot be construed as settlement or gift because there is no provision in the document transferring any interest in immovable property in present in favour of settlees their sons - Appeal allowed

Judgement Key Points

The instrument in question exhibits several features characteristic of a will. It contains provisions that specify the transfer of property to designated beneficiaries upon the death of the testator, indicating an intention to dispose of assets through a testamentary act (!) . The language employed, including terms that suggest a future transfer of ownership and control after the testator's demise, aligns with the typical phrasing found in wills (!) .

Furthermore, the document appears to operate primarily upon the death of the individual, with clauses that direct the distribution of estate assets, which is a hallmark of testamentary instruments (!) . The inclusion of specific bequests and the formalities observed in the execution of the document reinforce its character as a will (!) .

Additionally, the timing of the transfer rights—deferred until the death of the testator—supports the view that the instrument functions as a will, designed to take effect only upon the testator's passing (!) . The language and purpose of the document clearly point towards its classification as a will rather than a deed operative during the lifetime of the parties involved.


JUDGMENT

K. S. Radhakrishnan, J.-Leave granted.

2. We are, in this appeal, called upon to determine the question whether the recitals in exhibit A1 concerning item No.1 of schedule No. 8 therein (item No. 1 of the plaint schedule) discloses a testamentary disposition or a settlement creating vested rights in favour of the plaintiffs and defendant Nos. 1 to 3 though possession and enjoyment stood deferred until the death of the executants.

3. O.S. No. 169 of 1990 was instituted before the court of Subordinate Judge, Thiruvalla by the original plaintiffs and one Eapen for partition and separate possession of various items of properties, of which, we are in this appeal concerned only with item No. 1 of the plaint schedule. The trial court passed a preliminary decree giving various directions, however with regard to the above mentioned item which relates to 3 acre 40 cents, it was held that exhibit A1 document did not preclude the executants’ rights for disposing the same during their lifetime. Consequently, the trial court held that so far as item No.1 in schedule No. 8 of exhibit A1 is concerned, the same has the characteristics of a testamentary disposition, therefore not available for partition. The court held that B3 sale deed executed in favour of 3rd defendant in the year 1964 by Sosamma Eapen was valid so also B1 sale deed executed in the year 1978 by the 3rd defendant in favour of 4th defendant.

4. The plaintiffs took up the matter in appeal as A.S. No. 62 of 1991 before the court of District Judge, Pathanamthitta, which was allowed vide judgment dated 26.03.1994 and the decree and judgment of the trial court was modified and a preliminary decree was passed allowing partition and possession of 3/6th share of various items including sub-item 1 of schedule No. 8 of exhibit A1 document. The Appellate Court took the view that the above item was settled by exhibit A1 in favour of the original plaintiffs and defendant Nos. 1 to 3 jointly though its possession and enjoyment were deferred till the death of the executants. It was also held that the assignment deed, executed by one of the executants and later by 3rd defendant, was not binding on the plaintiffs.

5. Defendant Nos. 3 and4 then filed Second Appeal No. 686/1994 before the High Court. The High Court affirmed the judgment of the lower appellate court vide judgment dated 12.03.2009. While the appeal was pending before the High Court, the 3rd defendant died and his legal heirs got themselves impleaded. The High Court took the view that disposition with regard to the above mentioned item was not ambulatory in quality or revocable in character during the lifetime of the executants and held that the disposition of the plaint item No. 1 is a settlement though possession and enjoyment were deferred. It was held that the executants had no right of disposal of that item and hence the transfer in favour of defendant No.3 and the subsequent assignment in favour of defendant No.4 were invalid. Aggrieved by the same, these appeals have been preferred.

6. Shri T. L. Viswanatha Iyer, learned senior counsel appearing for the appellants submitted that exhibit A1 does not postulate any transfer of ownership or title over 8th schedule by the executants to their sons so also schedule Nos. 7 and 9. Learned senior counsel submitted that items in schedule Nos. 7, 8 and 9 were under their absolute control of the executants and they had the full freedom to deal with those properties. Learned senior counsel referring to the various recitals in exhibit A1 agreement submitted so far as schedule Nos. 1 to 6 are concerned, the transfer of interest was absolute in character and settled on all the sons equally and rest of the three items of the schedule, the executants had retained those items to themselves and to that extent exhibit A1 operated only as a Will. Learned senior counsel pointed out that so far as schedule Nos. 7 and 9 are concerned, the courts found that they are testamentary in characte








































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