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2019 Supreme(SC) 907

SUPREME COURT OF INDIA
Navin Sinha, K.M. Joseph, JJ.
Prabhakar Gones Prabhu Navelkar (Dead) Through Lrs & Ors. – Appellants
Versus
Saradchandra Suria Prabhu Navelkar (Dead) Through Lrs. & Ors. – Respondents
CIVIL APPEAL Nos. 10501-10502 of 2014
Decided On : 21-08-2019

Advocates Appeared:
For the Appellant(s) :J.P. Cama, Mr. Sumit Goel, Sarthak Gaur, Raghav Bansal, for M/S. Parekh & Co., Advocates
For the Respondent(s):Dhruv Mehta, Yashraj Singh Deora, Ninad Laud, Anmol Mehta, for M/S. Mitter & Mitter Co., Sahil Tagotra, Advocates

IMPORTANT POINTS
Portuguese law of extinction of remedy impliedly repealed on the Indian law namely the Contract Act, Negotiable Instrument Act becoming applicable from 1.4.1964.
For challenging one of the finding and not seeking to have a different decree passed in any manner respondents are not required to file an appeal or cross objection.
Law of trust did not apply to Goa under the Portuguese Rule.
Established vested right like ownership can be divested only by sale or gift. Mere laches or standing by not sufficient to extinguish title.
Supreme Court will not exercise its discretionary power in an appeal generated by Special Leave.

Headnote:

(a) Interpretation of statute - Implied repeal - Portuguese Civil Code - Articles 505 and 535 - Portuguese law of extinction of remedy - Impliedly repealed on the Indian law namely the Contract Act, Negotiable Instrument Act becoming applicable from 1.4.1964. (Para 47)

(b) Code of Civil Procedure, 1908 - Order XLI Rule 22 - Trial court passing decree dismissing the suit - Respondent seeking confirmation of the decree - Challenging only one of the findings relating to title - Otherwise supporting the decree - Held, for challenging one of the finding and not seeking to have a different decree passed in any manner respondents not required to file an appeal or cross objection. (Para 54)

(c) Interpretation of deeds - Sale deed - Suriaji purchasing property for himself and his brother Gones stating that he had paid half of consideration - Suriaji along with his wife undertook to transfer half of the property to Gones at anytime he may desire - Paying half consideration by Gones also acknowledged in the later dissolution deed - Held, Gones paid half consideration (Para 61)

(d) Property law - Suriyaji and his wife undertaking to transfer half of property to Gones whenever he desired - Subject to paying Rs.1000 to Suriaji at the time of transfer - Considering value of Rs.1000 in 1919, held it was not mere formality but condition precedent for transfer - Neither Gones in his life time nor his successors paid the amount to Suriaji or his successors - Suit filed without fulfilling this condition - Held, successors of Gones cannot derive any right from the sale deed of 1915 and the settlement deed of 1919. (Para 62, 63, 67)

(e) Law of trust - Did not apply to Goa under the Portuguese Rule. (Para 67)

(f) Property law - Title - Extinguishment - Established vested right like ownership - Can be divested only by sale or gift - Estoppel - Mere laches or standing by -Not sufficient to extinguish title - Abandonment amounting to estoppel, if established, extinguishes title. (Para 79)

(g) Property law - Defendants relying on the inventory proceeding - Burden was on them to produce the proceedings - Not done - However defendants producing final inscription on culmination of inventory proceedings - Gones, a major and aware of his rights under sale deed of 1915 and settlement and acting as vogal for minor children, not protesting to allotment of plaint schedule property to widow of Suriaji - Impliedly acknowledging right of Suriaji’s widow, Shantibai - No fraud committed on Gones - Gones not receiving any income from suit property - Shantibai executing gift in respect of plaint schedule property and later partition deed executed on that basis - Still later on acquisition of plaint schedule property compensation computed on the basis that Gones did not have any right - Moreover Gones never raising any objection during his lifetime - Courts below rightly rejecting the suit. (Para 81, 85, 87, 88)

(h) Constitution of India - Article 136 - Supreme Court will not exercise its discretionary power in an appeal generated by Special Leave. (Para 89)

Facts of the case:

Trial Court partly decreed the suit in a property dispute. The First Appellate Court reversed the judgment of the trial Court and dismissed the suit.

The High Court affirmed the decision of the First Appellate Court.

Finding of the Court:

Gones is not entitled to the plaint schedule property.

Result: Appeals dismissed.

JUDGMENT :

K.M. JOSEPH, J.

1. Civil appeals by special leave are directed against the judgment of the High Court of Bombay at Goa in Second Appeals Nos. 16 of 2004 and 17 of 2004. The appellants are the plaintiffs. By the impugned judgment, the High Court has dismissed the appeals. The trial Court in fact had partly decreed the suit. However, the First Appellate Court reversed the judgment of the trial Court and dismissed the suit. By the impugned judgment, the High Court affirmed the decision of the First Appellate Court.

2. We may refer to following genealogy chart, which will facilitate better understanding of the issues involved:

3. As can be noticed, the litigation concerns the properties of the Navelkar family. Parties are referred to with reference to the position in the trial Court. Venctexa Suria Porobo Navelkar was married to one Padmavati. They had one son by name Ramchandra Porobo and a daughter by name Piru. Ramchandra in turn had two sons, namely, Suriaji and Gones. The plaintiffs no. 1 and 3 are sons of Gones. The 2nd plaintiff is the wife of the first plaintiff and the 4th plaintiff is the wife of the 3rd plaintiff. Defendants no. 1 and 3 are the sons of Suriaji. Defendant no. 2 is the wife of 1st defendant. Defendant no. 4 is the wife of 3rd defendant. Defendant no. 5 is the sister of the defendants no. 1 and 3. Defendant nos. 7 to 27 are drawn from the other branch of the Navelkar family. As noticed from the genealogy chart Venctexa Navelkar’s brother was Vitol Porobo. The wife of Vitol Porobo was Laxmi. They had four sons. Defendants no. 7 to 27 represent the branch of late Vitol. Defendant no. 28 is the sister of plaintiff nos. 1 and 3 and 29th defendant is her husband.

4. The case set up by appellants in short is as follows. There exist two properties known as “Mallons” (hereinafter referred to as “M”) and “Bainguinim” (hereinafter referred to as “B”) situated in the village of Bainguinim in Goa. The properties lie adjoining to each other. M is admeasuring 90 hectares (approximately). B admeasures 31 hectares (approximately). Together they constitute the plaint schedule properties. By a deed of gift, dated 09.03.1913, Venctexa gifted half of the property of M to his grandsons, namely, Suriaji and Gones. In the inventory proceedings, held upon the demise of Padmavati, wife of Venctexa, the remaining half of the property of M and the entire property of B was allotted to their daughter named Piru. In the year 1915, Piru along with her husband, by a deed of sale dated 17.11.1915, sold in equal parts the remaining half in the property M and the entire property B to Suriaji and Laxmi. This meant 1/4th right in property ‘M’ and 1/2 right of ‘B’ was sold to Suriaji. Later on a deed styled as a deed of dissolution of accounts, payments and obligation came to be executed on 21.01.1919. In the said deed Suriaji and Gones appeared as parties on the one side representing the Venctexa branch and other branch of Vitol came to be represented by his wife Laxmi along with her four sons. In the said deed dated 21.01.1919 Suriaji admitted that the purchase of 1/4th in the property of M and half of property B by the sale deed dated 17.11.1915 was for self and for his brother Gones who paid half the price. Therefore, Suriaji and his wife Shantibai undertook to effect the transfer of registration in the name of Gones, half of the property purchased in his name at all time if so desired. Gones was on the occasion of transfer to make reimbursement of the half of money paid by Suriaji to Laxmi towards the dowry account to his wife. In the year 1925 Suriaji and his wife Santibai gifted in favour of Gones the 1/4th of property M acquired by Suriaji from his grandfather under the gift deed dated 09.03.1913. Therefore, Gones became entitled to 1/8th of the property M and 1/4th of the property B as a result of purchase made under deed of sale dated 17.11.1915. The further case of the plaintiffs is that half share of Gones in property M came

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