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2025 Supreme(Kar) 713

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
ASHOK S. KINAGI, J.
P. Nandakumar Rao, S/o. Late P. Sundar Rao and Ors. – Appellants
Versus
Vinodkumar Rao, S/o. Late P. Sundar Rao and Ors. - Respondents
Regular Second Appeal No. 577 of 2016 (PAR)
Decided On : 10-06-2025


Advocates Appeared:
For the Appellants :Sri. G. Balakrishna Shastry, Advocate
For the Respondents:Sri. Sanathkumar Shetty K., Sri. Anandarama & Prashanth, Advocates.

Co-owners are entitled to partition despite restrictions, and the principle of subrogation under the Transfer of Property Act does not confer higher rights through unilateral action.

Headnote:(A) Transfer of Property Act, 1882 - Section 10 and Section 92 - Regular Second Appeal challenging the partition suit and subsequent decrees regarding property ownership and rights of redemption. The plaintiffs are co-owners claiming 2/5th shares, while the defendants assert exclusive rights under a settlement deed and historic mortgages. The court examined claims of shared ownership and the effects of a life interest as well as the principles of subrogation in equity. (Paras 10, 14, 18, 21)

(B) Partition - Right to Partition - Co-owners have the right to seek partition regardless of historical claims to the property by others, subject to existing legal claims. (Paras 3.7, 5)

Facts of the case:
The plaintiffs sought partition of property settled to them by their grandfather, but the defendants contended exclusivity based on alleged restrictions and mortgage claims since 1961. (Paras 2, 3)

Findings of Court:
The trial and appellate courts decreed the plaintiffs entitled to their shares, affirming their legal standing against unilateral claims for ownership. (Paras 5.6, 20)

Issues: 1) Co-ownership rights of plaintiffs. 2) Consequences of mortgage on joint property. 3) Legal standing regarding subrogation claims.

Ratio Decidendi: The court held that restrictions on alienation in the settlement deed do not invalidate the right to partition, emphasizing equitable principles in property law, particularly under Section 92, and reaffirming that a single defendant cannot claim superior rights over co-owners without proper legal basis. (Paras 14, 19, 21)

Result: Appeal dismissed; judgments and decrees reaffirmed.

Table of Content
1. nature of the case and appellants (Para 1 , 2 , 3)
2. parties' arguments on property rights (Para 4 , 5 , 6)
3. issues for appellate consideration (Para 7 , 8 , 9)
4. legal analysis of rights and subrogation (Para 10 , 12 , 14 , 16 , 17 , 18)
5. court's analysis on subrogation and partition. (Para 13 , 15)
6. judgment affirmation and conclusion (Para 19 , 20 , 21)
7. final order of dismissal (Para 22)

JUDGMENT :

(ASHOK S. KINAGI, J.)

This Regular Second Appeal is filed by the appellants challenging the judgment and decree dated 15.12.2015, passed in R.A.No.4/2009 by the learned I Additional District and Sessions Judge, Mangaluru, D.K., and the judgment and decree dated 31.10.2008, passed in O.S.No.95/2003 by the learned II Additional Civil Judge (Sr. Dn.), Mangaluru, D.K.

2. For convenience, parties are referred to based on their rankings before the trial Court. The appellants were defendant Nos.1 and 7, respondent Nos.1 and 2 were the plaintiffs and other respondents were the other defendants.

3. Brief facts leading rise to the filing of this appeal are as follows:

The plaintiffs filed a suit against the defendants for partition of plaint ‘A’ schedule property. It is the case of the plaintiffs that suit ‘A’ schedule property belonged to plaintiffs and defendants No.1 to 3, which was settled upon them by their grandfather, late Dr.Pejavar Anand Rao, as evidenced by the registered settlement deed dated 07.02.1941 executed by him. The plaintiffs do not have the original settlement deed. Each of the plaintiffs and defendants No.1 to 3 are entitled to an equal share i.e., 1/5th share in the suit schedule ‘A’ property. It is contended that defendant No.1 is the eldest among the plaintiffs and defendants No.2 and 3. The plaintiffs reside in Bangalore, and defendant No.1 was appropriating all the income from the said property. As the co-owners, the plaintiffs are in joint possession of ‘A’ schedule property. Since they no longer wish to continue jointly any longer, they issued a legal notice dated 08.01.1999, calling upon defendant No.1 to divide and partition the ‘A’ suit schedule property into 5 equal shares and hand over to the plaintiffs, their 2/5th share. The defendant No.1 refused to comply with plaintiffs’ legal demands and issued a reply raising untenable claims. All the attempts at an amicable settlement have failed. The plaintiffs have no alternative but to file a suit for partition and separate possession of their 2/5th share in the schedule ‘A’ property. It is contended that defendants Nos.4, 5 and 6 have no share in ‘A’ schedule property; they are made formal parties. It is contended that defendant No.1 collusively alleges that defendant No.7 is in possession of a part of the building in ‘A’ schedule property. Hence, defendant No.7 is made a party to the suit. Hence, prays to decree the suit.

3.1. In pursuance of suit summons defendant Nos.4 to 6 have not chosen to appear before the Court. Hence, they have been placed exparte. Defendant Nos.1 to 3 and 7 appeared before the Court through their counsel.

3.2. Defendant No.1 filed a written statement contending that Dr.Pejavar Anand Rao, by settlement deed dated 07.02.1941, settled the ‘A’ schedule property in favour of defendant No.1 and others, reserving the life interest in favour of defendant No.1’s father, P.Sundar Rao, without the right of alienation. Plaintiff No.1 mortgaged the suit schedule property under a registered deed of usufructuary mortgage dated 30.10.1961 for a sum of Rs.3,500/-. A suit for redemption of mortgage was filed and the said suit was decreed by the Munsiff Court, Mangalore, as per the judgment dated 27.08.1983 in O.S.No.945/1979 and the final decree was drawn on 20.09.1986 in FDP No.19/1985. It is contended that there is a specific clause in the settlement deed restraining the owners from alienating any portion of ‘A’ schedule property in any way, and further, the person who alienates the property, loses right. In view of the clause in the

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