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1957 Supreme(Pat) 247

PATNA HIGH COURT
Sinha, J.
Trilok Singh
Versus
Dwarka Prasad Gupta
Appeal from Original Decree No. 61 of 1950 ;
Decided On : DECEMBER 17, 1957

The karta of a joint Mitakshara family cannot alienate or burden the estate qua manager except for purposes of necessity.

Headnote:

JOINT FAMILY PROPERTY - MORTGAGE - LEGAL NECESSITY - BURDEN OF PROOF - BENAMI TRANSACTION - FINDING OF FACT - INTERFERENCE IN SECOND APPEAL.

Fact of the Case:

Defendant No. 3, a member of a joint Mitakshara family, executed two usufructuary mortgages in favor of Defendant No. 2, who claimed to be the real mortgagee, on the ground that Defendant No. 1 was his benamidar. The plaintiffs, other members of the joint family, filed a suit for a declaration that the mortgages were not binding on the joint family and for recovery of possession of the mortgaged properties.

Finding of the Court:

The trial court found that Defendant No. 3 was the karta of the joint family, that the mortgages were not for legal necessity, and that Defendant No. 2 was not a benamidar for Defendant No. 1. It decreed the plaintiffs' suit for possession of the mortgaged properties but allowed Defendant No. 1 to continue occupying a portion of one of the houses as a tenant.

Issues: 1. Whether the mortgages were binding on the joint family. 2. Whether Defendant No. 2 was a benamidar for Defendant No. 1. 3. Whether Defendant No. 1 was entitled to continue occupying a portion of one of the mortgaged houses as a tenant.

Ratio Decidendi: 1. The karta of a joint Mitakshara family has no right to alienate property or contract debts chargeable on the joint family property except for legal necessity or benefit to the family. 2. The burden of proving legal necessity or benefit to the family lies on the mortgagee. 3. A benami transaction is void as against the real owner of the property. 4. A finding of fact by the trial court will not be interfered with in second appeal unless it is perverse or based on no evidence.

Final Decision: The appeal by Defendant No. 2 was dismissed with costs. The cross-objection by the plaintiffs was allowed to the extent that the direction in the decree allowing Defendant No. 1 to continue occupying a portion of one of the mortgaged houses as a tenant was set aside.

Judgment

Sinha, J.

1. This appeal is by defendant No. 2 to an action for a declaration that two mortgages created by defendant No. 3 on 3-3-1948 and 24-8-1948 were not binding on the joint family of the plaintiffs and defendant No. 3, and for recovery of possession of the houses given in mortgage and also for mesne profits.

2. There was one Ramautar Sah, husband of plaintiff No. 3. He had three sons, (1) Rampratap (defendant No. 3), Dwarika Prasad (plaintiff No. 1) and Bishwanath (Plaintiff No. 2). The properties in suit were acquired by Ramautar, who died on 20-6-1942, leaving him surviving plaintiffs 1 to 3 and defendant No. 3 as his heirs. Plaintiff No. 1 end defendant No. 3 had executed a registered power of attorney in favour of plaintiff No. 2 on 23-12-1942. Thereupon, plaintiff No. 2, on 27-3-1944, redeemed a mortgage created by his father, on 24-5-1941, for Rs. 2,500.00 in favour of defendant No. 1. It is said that defendant No. 1, therefore, had transactions with the family and knew the family very well. Thereafter, defendant No. 1, in the name of defendant No. 2, took a usufructuary mortgage from defendant No. 3 on 3-3-1948. it is said that defendant No. 3 was not the karta of the joint family nor was the loan taken for legal necessity, that no benefit accrued to the family thereby, and that, though the mortgage deed was taken in the name of defendant No. 2, defendant No. 2 was merely a benamidar for defendant No. 1. On 24-6-1948, again, defendant No. 3 executed another usufructuary mortgage bond and a simple bond in favour of defendant No. 1 in the name of defendant No. 2. These mortgages were in respect of three houses in the town of Ranchi. The plaintiffs case is that defendant No. 3 used to drink heavily and was leading a spendthrift life and he was prevailed upon by defendants 1 and 2 to enter into these transactions, although there was no justifying necessity to the family for these transactions. Defendant No. 1 is the maternal uncle of defendant No. 2.

3. These two defendants filed separate written statements. According to the defendant No. 1, defendant No. 3 was the karta of the family, that the mortgages were for legal necessity of the family and that defendant No. 2 was not his benamidar. Defendant No. ,2 raised several defences. According to him, plaintiff No, 3 was not the widow, of Ramautar; the death of Ramautar on 20-6-1942 was denied and it was claimed that the mortgages in question had been taken by him and he was not a benamidar for defendant No. 1. He alleged that the mortgages were created for legal necessity and for valuable consideration and that he had made bona fide enquiry about the necessity of the loan and was satisfied from the enquiry that the family was in need of money.

4. The Court below has come to the findings that plaintiff No. 3 is the widow of Ramautar, that Ramautar died on 20-6-1942, that defendant No. 1 had not advanced the money, that the consideration wag paid by defendant No. 2, who was not the benamidar for defendant No. 1, and that defendant No. 3 was the karta of the family. The learned Subordinate Judge, however, found that there was no legal necessity for the transactions, nor was there any benefit to the family out of these transactions. It was also found that defendant No. 1 was a tenant in a portion of one of the houses, and, although the Court below gave a decree for ejectment of defendant No. 2 from the mortgaged properties, it held that, as defendant No. 1 was occupying a portion of one of the houses as a tenant he should not be ejected from that particular portion of the house.

5. Defendant No. 2, as I have said, has filed this appeal, arid there is a cross-objection on behalf of the plaintiffs which is against the order of the Court below to the effect that defendant No. 1 should not be ejected from the portion of the house he was occupying, and against the findings that defendant No. 2 was not a benamidar for defendant No. 1 and that defendant No. 3 was the kart















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