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1927 Supreme(SC) 24

Privy Council
Ameer Ali, Darling, Carson, Justice Phillimore, JJ.
Dwarka Nath Singh and others -Appellant
Versus
Keshri Mall and others -Resopndent
Privy Council Appeal No. 125 of 1924 : Patna Appeal No. 44 of 1923
Decided On : 04-03-1927

Advocates Appeared:
Hy. S.L. Polak, W.W. Box and Co., B. Dube, M. Afzal, W. Wallach

A power of attorney authorizing an agent to grant mortgages on joint family land is sufficient to bind the joint family for the repayment of antecedent debts, provided the debts are proven to be liabilities of the joint family.

Headnote:(A) Hindu Law - Mitakshara Law - Power of Attorney - Mortgage of joint family property - Authority of an agent to execute mortgage bonds on behalf of a joint undivided family - Where a power of attorney authorizes an agent to grant mortgages in respect of land owned and possessed by the executants, such authority is sufficient to bind the joint family for the payment of antecedent debts due to creditors.

(B) Construction of Power of Attorney - Where a power of attorney allows an agent to make mortgages and borrow sums for necessary purposes, the execution of several mortgage bonds for antecedent debts of the joint family is within the scope of such authority, provided the debts are liabilities of the joint family.

Facts of the case:
Members of a joint undivided Hindu family governed by Mitakshara Law executed a power of attorney in favor of one member, authorizing him to appear in court, grant mortgages, and borrow funds for specific necessities. Based on this authority, the agent executed three mortgage bonds to secure antecedent debts and cash advances. The other family members challenged the validity of these mortgages, arguing that the bonds were beyond the authority vested in the agent and that the alleged necessities were false.

Findings of Court:
The court found that the sums in question constituted antecedent debts due by the joint family to the plaintiffs under account books. It was held that the power of attorney, which authorized the agent to grant simple or Zarpeshgi-Thika or make mortgages with possession in respect of land owned and possessed by the executants, was sufficient to confer the power to execute the mortgage bonds for the specified amounts.

Issues: Whether the power of attorney granted to one member of a joint Hindu family authorized him to execute mortgage bonds on behalf of the other members to secure antecedent debts of the family.

Ratio Decidendi: The court ruled that the express authorization in the power of attorney to grant mortgages in respect of land owned by the executants was sufficient to bind the joint family for the repayment of debts for which the joint family was liable, regardless of whether the total amount borrowed across multiple transactions exceeded a specific limit mentioned for other purposes in the document.

Result: Appeal dismissed.

Lord Carson. -

The plaintiffs (respondents) who carry on the business of cloth merchants and money-lending at Gaya, brought the action against the defendants to enforce three mortgage bonds dated the 11th April 1911, the 13th July 1912, and the 5th November 1914, respectively. The plaintiffs claimed a decree for the payment of the principal and interest due under the bonds in suit, and in default of payment thereof for the sale of the mortgaged properties belonging to the defendants, who are members of a joint and undivided Hindu family governed by the Mitakshara Law. The Defendants Nos. 1, 2 and 3, are brothers, and it appears that on the 7th January 1899, Dwarka Nath Singh, Defendant No. 1, and Kishun Prasad Singh, Defendant No. 3, executed a power of attorney in favour of Brijnath Singh, Defendant No. 2, which provided as follows :

If in any civil or criminal Court subordinate to the Calcutta High Court it be necessary for us, the executants, to appear personally and to make defence there the said Am Mokhtar himself shall appear and make defence in the cases on behalf of us, the executants, and in case of necessity shall depose on seolmn affirmation or in respect of any mauza or share of land owned and possessed by us, the executants, the said Mokhtar-Am shall grant simple or Zarpeshgi-Thika or make mortgage with possession, or in times of necessity after borrowing up to Rs. 4,000 from anyone for expenses of cases, purchase of Milkiat and Mokarrari payment of public demands and other necessary and incumbent work relating to us, the executants, the Mokhtar-Am may execute mortgage deeds jointly with himself or in case of necessity may make our signatures upon the aforesaid bonds.

In April 1911, the sum of Rs. 2,837-12-0 was found due from the Defendants 1 to 3 to the plaintiffs after settlement of the account (Bahi Khata) and on the 11th April 1911, the said Brijnath Singh (Defendant No. 2), acting under the said power of attorney, executed a deed of mortgage purporting to be for himself and on behalf of his brothers Nos. 1 and 3, in favour of the plaintiffs, and hypothecated certain joint family properties. It was for the sum of Rs. 3,300, which was made up of two items, viz., alleged antecedent debts due from the said defendants amounting to Rs. 2,837-12-0 and cash lent to Defendant No. 2 at the time of the execution of the mortgage, Rs. 462-4-0. The said Defendant No. 2 similarly executed a second mortgage in favour of the plaintiffs on the 13th July 1912, for Rs. 1,400, which was made up of three items alleged antecedent debts due from the Defendants 1 to 3 - Rs. 505-13-0, Rs. 620 borrowed by Defendant No. 2 in order to discharge a decretal debt due from the defendants to Promotho Nath Mitter, and cash lent to the Defendant No. 2 at the time of the execution of the bond, amounting to the sum of Rs. 274-3-0. The third mortgage bond was similarly executed by the Defendant No. 2 on the 5th November 1914, in favour of the plaintiffs for Rs. 2,000, which consisted of two items viz., alleged antecedent debt due from the same defendants, Rs. 1,173-4-3, and cash lent to Defendant No. 2 for defraying the necessary household expenses at the time of the execution of the bond, Rs. 826-11-9.

The Defendant No. 2, who signed and executed the mortgage bonds sued upon, did not appear or contest the plaintiffs' claim, but the other contesting defendants, who are now the appellants, denied the genuineness and validity of the power of attorney or that the Defendants Nos. 1 and 3 had power to execute it, and also pleaded that the said mortgage bonds were 'beyond the authority vested in the Moktarnama - Defendant No. 2. They Mokhtar Am also alleged that the necessities indicated in said mortgage bonds were wrong and false.

The action was tried in the Court of the Subordinate Judge of Gaya, who after hearing the evidence gave judgment on the 23rd March 1920. On the question of the genuineness and validity of the mortgage bonds and the passing of th









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