SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1973 Supreme(AP) 192

Andhra Pradesh High Court
Judges : C.KONDAIAH, V.MADHAVA RAO
M.Appala Ramanujacharyulu - Appellant
Versus
M.Venkatanarasimhacharyulu - Respondent
Decided On : 12-24-73

The determination of whether an endowment is nominal or real depends on the facts and circumstances of each case, considering factors such as the intention of the donor, the conduct of the parties, and the surrounding circumstances.

Headnote:

ENDOWMENT - NOMINAL OR REAL - FACTORS TO DETERMINE - CONDUCT OF PARTIES AND SURROUNDING CIRCUMSTANCES - INTENTION OF DONOR - DIVESTITURE OF PERSONAL RIGHTS TO TRUSTEES - ONUS OF PROOF.

Fact of the Case:

The appellant challenged the validity of an endowment created by his grandfather, Ramanujacharyulu, under Ex. A-11, claiming it to be nominal and not real. The endowment comprised certain lands settled for the maintenance of a choultry purchased under Ex. A-10.

Finding of the Court:

The court held that the endowment was real and not nominal, considering the recitals in Ex. A-11, the conduct of the parties, and the surrounding circumstances. It found that the charitable purpose of purchasing the building under Ex. A-10 and using it for a choultry had been carried out from 1923 to 1929, and that the choultry was in existence when Ex. A-11 was executed.

Issues: Whether the endowment created under Ex. A-11 was nominal or real.

Ratio Decidendi: The court applied the principles that to constitute a valid endowment, the donor must intend to divest himself of his ownership in the property dedicated, and that the subsequent conduct of the parties with regard to the enjoyment of the property is not very material. It held that the recitals in Ex. A-11 established the real and true nature of the endowment, and that the onus was on the appellant to prove that the endowment was nominal.

Final Decision: The court dismissed the appeal, holding that the endowment created under Ex. A-11 was real and not nominal.

KONDAIAH, J.

( 1 ) THE only question that is urged for our decision is whether, on the facts and in the circumstances the endowment of items 65 to 73 of the plaint A Schedule settled by the late Ramanujacharyulu under Ex. A-11 dated 21/09/1929 is nominal or real.

( 2 ) IN order to appreciate the scope of the question, it is necessary to briefly state the facts that gave rise to the same. Ramanujacharyulu, the grandfather of the plaintiff-appellant herein, who was driven out of his family by his father while he was quite young, had settled in the Agency areas and worked as Karnam of several villages for a number of years and earned considerable properties and died in or about the year 1932, leaving behind him his wife Latchamma, a divided son the Ist defendant herein, a keep and some properties. In the year 1918, he created an endowment of Ac. 66-75 cents of rain-fed lands which fell to his share in the family division with his only son, the 1st defendant in the year 1916, for the sole purpose of performing Sri Sitarama Swamy at Korukonda every year in the manner stated by him from generation to generation. He had also obtained a sale deed in the name of his wife Latchamma under Ex. A-10 dated 24-7-1923 for a building in Sitanagaram for a sum of Rs. 600. 00 for the purpose of maintaining a choultry therein. The consideration of Rs. 600. 00 is said to have been paid from Latchamms Stridhanam. But, however the very sale deed Ex. A-10 indicates the purpose of the sale being to convert the building into a choultry and to run the same for charitable purpose and for the benefit of passers-by poor and other deserving persons. On 21-9-1929 a registered settlement deed Ex. A-11 setting items 65 to 73 of the plaint A Schedule comprising Ac. 33-7- cents of wet lands in Sitanagaram was made by Ramanujacharyulu. The document recited that the property was in fact settled for specific purpose of the maintenance of the choultry purchased in the name of his wife under Ex. A-10. In this document, three pointed by the settlor Ramanujacharyulu. The 5th defendant contested the plaintiffs suit for declaration that the properties are not endowed to the choultry and they are joint family properties, on the ground that they were endowed irrevocably under Ex. A-11 for a charitable purpose. The plea of the appellant has not been accepted by the trial Court as well as the learned single Judge of this Court.

( 3 ) IN support of his submission that the endowment in question is nominal out not real, Mr. Jagnnadha Rao has placed reliance on the following circumstances : (I) that there was no mutation of patta inrespect of the lands in question in favour of the choultry; (ii) that no ledgers and accounts have been maintained; (iii) that no leases have been granted by the trustees; (iv) that no investment of the income from the lands has been made nor any purchase of property or lands has been made by the trustees from and out of the income of the lands and (v) that there is no evidence of payment of taxes by the trustees.

( 4 ) AN endowment can be created by the execution of a deed of dedication by the donor. But however, it must be noted that the mere execution of a deed of dedication without the donor intending to act upon the terms of the deed, would not create a valid endowment. In other words, to constitute a valid endowment, it must be established that the donor intended to divest himself of his ownership in the property dedicated. An endowment may be real or nominal. Whether a particular endowment is nominal or real, is a question of fact depending upon the facts and circumstances of each case. In order to determine whether an endowment is nominal or real, the factors relevant and material are (I) whether, in fact, any endowment has been created or not, and (ii) the conduct of the parties and the surrounding circumstances. Where an endowment has, in fact, been created or a trust came into existence, the subsequent conduct of the parties with regard to t




Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top