High Court of Judicature at Bombay
A.B. CHAUDHARI, J.
Kashinath Rajaram Kasabe & Others – Appellant
Versus
Ramchandra Tukaram Kasabe, deceased as per LRs. & Others – Respondent
Second Appeal No. 563 of 1992 & With Cross Objection (St). No. 22235 of 2009
Decided On : 8-10-2014
The karta of a joint Hindu family being merely a manager and not an absolute owner, the Hindu law has, like other systems of law, placed certain limitations upon his power to alienate property which is owned by the joint family. The Hindu law givers, however, could not have intended to impose any such restriction on his power as would virtually disqualify him from doing anything to improve the conditions of the family. The only reasonable limitation which can be imposed on the karta is that he must act with prudence, and prudence implies caution as well as foresight and excludes hasty, reckless and arbitrary conduct.
The exceptional circumstances, however, the Court will uphold the alienation of a part of the joint family property by a karta for the acquisition of new property as, for example, where all the adult members of the joint family with the knowledge available to them and possessing all the necessary information about the means and requirements of the family a reconvinced that the proposed purchase of the new property is for the benefit of the estate.
The legal position is apt in the fact situation present in this case. It is anxious to note that though the appellants fully knew that the suit property was ancestral property and three sons and wife of Ramchandra had interest therein and when it was the case of the appellants that the property was sold out for legal necessity none of the sons were even joined as a party to the suit which is an indicator of the fact that the appellants very well knew that he would not be able to make any claim against all the three sons and would be able to claim only against the defendant Ramchandra who alone was the defendant.
Admittedly, the respondent has not put to challenge the judgment and decree made by the lower Appellate Court in part i.e. to the extent of 1/5th share of Ramchandra and thus said part of the decree has become final.
Specific Relief Act, 1963 - Section 20 Suit for specific performance of agreement to sell. Where suit property was joint family property held by defendant with his sons and wife therefore failure of plaintiff to make any sons of defendant a party to suit, disentitled him for grant of relief as prayed. In present suit for specific performance, plaintiff took plea that defendant executed agreement in dispute out of legal necessity, being karta of family. He stated that there was financial pressure on defendant from land development bank as the bank was pressurizing him for making repayment of the loan that was advanced. And that defendant in order to save suit land from being auctioned by land development bank, agreed to sell suit property to plaintiff and that was for benefit of family. Entire loan liability was of Rs. 14,300/-.
However there is nothing in the agreement to show that though it was drafted by an Advocate with 15 clauses and 5 pages as to the amount of total loan liability with interest on the date of agreement of sale.
It is evident that the amount of Rs. 5000/- was written in the agreement later on in hand writing as Rs. 7300/- and payment to be made in the bank again was written in hand writing as against the entire agreement which was typewritten. Further agreement shows that money was required for expenditure on agriculture and family maintenance but again the words ’for agreement of the loan of the bank’ were put in hand writing.
It is thus clear that document of agreement does not support the case of the appellants that they knew about the entire loan liability of Rs. 14,300/- on the date of the agreement before agreeing to purchase the suit property for discharging the loan liability of the Rs. 14,300/-". Thus plea of legal necessity taken by plaintiff cannot be sustained. It would not constitute the ground to bind other members of family to the agreement executed by defendant unilaterally.
.
A.B. CHAUDHARI, J.
1. Being aggrieved by the judgment and decree dated 26th August, 1992 in Civil Appeal No. 512 of 1986 passed by 7th Additional District Judge, Nasik by which the appeal was partly allowed and the decree for execution of sale deed in favour of the appellants plaintiffs in Special Civil Suit No. 63 of 1982 passed on 27th June, 1986 by Joint Civil Judge, Senior Division, Nasik was modified only to the extent of 1/5th share of deceased Ramchandra Tukaram Kasbe, the present Appeal was filed by the partly unsuccessful plaintiffs.
The facts of the case are as follows:
2. The appellants plaintiffs who are the original plaintiffs filed Special Civil Suit No. 63 of 1982 and stated that the suit land Gut No. 368 admeasuring 4H 69.4R belonging to the defendant Ramchandra Tukaram Kasbe was agreed to be sold to the plaintiffs by him for a total consideration of Rs. 24,200/. The defendant Ramchandra had mortgaged the land with Nasik District Coop. Land Development Bank for sinking the well in Gut No. 109 in the year 1970 but he could not repay the loan and the bank had threatened to put his land to auction in the year 1981. Respondent defendant had no other option than to dispose of the suit property to repay the loan and that is why the suit land was put to sale. Upon negotiations, the price was fixed and earnest amount of Rs. 7300/was agreed to be paid and the agreement was executed on 1st August, 1981. The possession of the suit land was delivered pursuant to the said agreement dated 1st August 1981 to the appellants plaintiffs along with the standing crops. The sale deed was to be executed within one year by making payment of the entire loan outstanding amount to the bank. The respondent Ramchandra was Karta of Hindu Joint Family and had agreed to sell the suit land for the benefit of Joint Family. The plaintiffs paid Rs. 7300/to defendant and deposited Rs. 5000.65ps. with the Land Development Bank on 3.9.80 towards the outstanding loan. The plaintiffs were always ready and willing to perform their part of the contract but defendant changed his mind and did not perform his part of the contract and avoided to execute the sale deed. Not only that the defendant refused to furnish information as to the outstanding loan amount and finally refused to execute the sale deed in the month of March 1982. The appellants then came to know that defendant had in fact repaid the whole amount to the bank and thus, committed breach of the contract and it was essential to file the suit in question. The suit was resisted by the defendant by filing written statement at Ex.16. The defendant admitted about the loan on the suit property and the insistence of the bank for repayment. He also admitted execution of the document of agreement dt.1st August, 1981 in favour of the plaintiffs. But he further submitted that he was in financial difficulty due to the pressure from the bank to repay the loan amount and therefore, asked the plaintiffs for some loan amount who agreed to give loan due to friendly relations but the plaintiffs wanted the document by way of security for loan which was executed by Ramchandra alone. The transaction was thus, a loan transaction not to be acted upon and the document was to be destroyed. The defendant respondent being in disturbed state of mind executed the agreement Ex.51 due to helplessness. He denied the delivery of possession so also the receipt of amount of Rs. 7300/and that the amount of Rs. 5000/was to be deposited in the bank on the next working day after the agreement and the amount of Rs. 2300/was to be paid to Ambadas Ramu Ugle. The amount of Rs. 2300/was not paid to Ambadas and the plaintiffs straightway deposited Rs. 5000/out of Rs. 7300/in the bank. The payment of Rs. 5000/alleged by the plaintiff was the same amount and not separate from the amount of Rs. 7300/. The plaintiffs did not pay the amount of the entire amount of the loan in the bank and it was the defendant who was required to dispose
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