HIGH COURT OF BOMBAY
BHAGWATI, DIXIT, JJ.
Ramlaxmi Ranchhodlal
Versus
Bank of Baroda, Ltd.
First Appeal No.500 of 1948
Decided On : 01-02-1952
In a suit for declaration of ownership and possession of a property, the plaintiff claimed title through a partition deed that was not registered. The court held that the deed was inadmissible in evidence for want of registration but allowed the plaintiff to rely on the deed to prove the fact of partition, i.e., severance of joint status, as a collateral transaction not required to be registered.
Fact of the Case:
Chunilal Jamnadas and his five sons were members of a joint and undivided Hindu family. In 1920, they decided to partition the family properties. A memo of partition was recorded and signed by the parties, but it was not registered. Ranchhodlal, one of the sons, died in 1921, leaving behind a widow, Ramlaxmi. In 1924, Chunilal Jamnadas mortgaged the suit property, which was part of the family property, to the Bank of Baroda. The mortgage was not repaid, and the bank obtained a decree for sale of the property. Ramlaxmi filed a suit for a declaration that the order for sale was not legal and that she was entitled to possession of the property. She claimed that the partition deed, though unregistered, was admissible in evidence to prove the fact of partition and that she had become the owner of the suit property as a tenant-in-common with the other members of the erstwhile joint family.
Finding of the Court:
The court held that the memo of partition was inadmissible in evidence for want of registration, but it allowed the plaintiff to rely on the deed to prove the fact of partition, i.e., severance of joint status, as a collateral transaction not required to be registered. The court found that the partition deed clearly showed that the parties had effected a partition of the family properties and that there was a severance of joint status between them. The court also found that the plaintiff had been in possession of the suit property since 1923 and that she had paid the municipal taxes and insurance premia in respect of the same. The court, therefore, held that the plaintiff was entitled to a declaration that she was the owner of the suit property and that the order for sale was not legal.
Issues: 1. Whether the memo of partition was admissible in evidence to prove the fact of partition. 2. Whether the plaintiff had become the owner of the suit property as a tenant-in-common with the other members of the erstwhile joint family.
Ratio Decidendi: The court held that the memo of partition was inadmissible in evidence for want of registration, but it allowed the plaintiff to rely on the deed to prove the fact of partition, i.e., severance of joint status, as a collateral transaction not required to be registered. The court relied on the proviso to Section 49 of the Registration Act, which provides that an unregistered document affecting immovable property may be received as evidence of any collateral transaction not required to be effected by a registered instrument. The court held that the partition deed, though unregistered, was admissible in evidence to prove the fact of partition, which was a collateral transaction not required to be registered.
Final Decision: The court allowed the plaintiff's suit and declared that she was the owner of the suit property and that the order for sale was not legal.
Facts. - One Chunilal Jamnadas and his five sons, Vadilal, Jesangbhai, Dahyabhai, Ranchhodlal and Achratlal, were members of a joint and undivided Hindu family. The family had descended from one Govardhandas. Govardhandas had two sons Maniklal and Laldas. Laldas died without leaving any issue surviving. Maniklal had two sons Jamnadas and Bolakhi. Bolakhi also died without leaving any issue surviving. The joint family owned considerable moveable and immoveable properties of the aggregate value of over Rs.6,00,000. The title deeds in respect of some of these immoveable properties were in the name of Laldas Govardhandas as also in the name of Bolakhi Maniklal. Chunilal Jamnadas was at all relevant times the father and the manager of the joint Hindu family consisting of himself and his five sons. An ancestral business in money-lending and jewellery was carried on in the name of Manilal Govardhandas. The family had also floated a limted company in the name of the Hindustan Oil Mills Company, Ltd., of which Chunilal Jamnadas and Co. were the managing agents, the joint family owning a ten annas share and an outside partner owning a six annas share in that managing agency firm.
This business of managing agents was looked after by Chunilal Jamnadas and Achratlal. Out of the five sons of Chunilal Jamnadas, Vadilal had started his own independent sarafi business in the year 1916. The family, however, continued joint and all the properties, moveable and immoveable, including the above businesses, were owned by them as members of the joint and undivided Hindu family. In October 1920 the parties thought of partitioning the properties of the family. Dahyabhai took over the good-will of the Bombay and Ahmedabad firm of Manekchand Govardhandas with effect from Kartak Sud S.Y. 1977 for a consideration of Rs.21,101. On 16-12-1920, i.e., Magsar Sud 5 S.Y. 1977 a memo of partition was recorded and signed by the parties. This was, however, a partial partition of the properties belonging to the joint family. Certain properties continued to be joint and certain adjustments of accounts remained to be made, and on 19-4-1922, i.e., chaitra vad S.Y. 1978, another memo of partition was recorded between the parties. The first memo of partition was signed by Chunilal and his five sons and at the foot of that an endorsement was made by one Kapurchand Gopalji to the effect :
"The partition as above has been made in my presence."
Ranchhodlal died after this first memo of partition was recorded on 11-12-1921, leaving him surviving his widow Ramlaxmi (plaintiff) and two daughters. When the second memo of partition came to be recorded, the signature of Ranchhodlal could not be obtained and therefore Ramlaxmi, his widow, signed in his place and stead :
"Signed Parekh Ranchhodlal Chunilal Daskhat his widow Bai Ramlaxmi Dahyabhai Daskhat self."
Even by the time this second memo of partition was recorded certain adjustment remained to be made and Kartak Sud 8 S.Y. 1978 was fixed for the complete working out of the partition. The managing agency firm of Chunilal Jamnadas and Co. appears to have been continued and it continued to manage the affairs of the Hindustan Oil Mills Company, Ltd., though the share in the commission which was enjoyed by the joint family was divided between Chunilal Jamnadas and his five sons in certain proportions. Achratlal was to devote all his attention to the management of this business and he was therefore given four annas more share than the other members of the family by way of his remuneration for the same.
In abeut February 1923 the plaintiff started living separately in the Chocawala Dhela, referred to hereinafter as a suit property, along with her two daughters, food grains were purchased for her, repairs were effected to this property, Municipal taxes and insurance premia were paid in regard to the same, various expenses used to be incurred for the vyavahar, i.e. the social and other expenses, and all these were debited in the ac
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