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1967 Supreme(Pat) 107

PATNA HIGH COURT
G.N.Prasad and B.N.Jha JJ.
Kisto Chandra Mandal
Versus
Mt.Anila Bala Dasi
Appeal from Original Decree No. 292 of 1961 ;
Decided On : OCTOBER 31, 1967

A family settlement is a compromise or arrangement based on the assumption of antecedent title in the parties, where each party relinquishes claims to property other than that falling to their share and recognizes the rights of others. It does not require a conveyance to pass title.

Headnote:

FAMILY SETTLEMENT - Validity - Requirements - Registration - Estoppel - Applicability - Transfer of Property Act, 1882, Sec. 123 - Indian Registration Act, 1908 - Regulation III of 1872, Sec. 27 - Evidence Act, 1872, Sec. 115.

Fact of the Case:

Jadu Mandal, the absolute owner of certain properties, executed a document purporting to be a family settlement, dividing his properties among his grandsons and widowed daughter-in-law (plaintiff). After Jadu Mandal's death, the plaintiff filed a suit for partition of her one-fourth share in the properties. The contesting defendants, Jadu Mandal's grandsons, claimed title to the properties under the family settlement.

Finding of the Court:

The court held that the document was not a valid family settlement but an out-and-out gift by Jadu Mandal to the persons named in the document. The court further held that the gift was invalid for want of registration and for the restrictions imposed on such transfer by the special laws prevailing in the district of the Santhal Parganas.

Issues: 1. Whether the document executed by Jadu Mandal was a valid family settlement or an out-and-out gift? 2. Whether the gift was valid in light of the restrictions imposed by Regulation III of 1872 and the Transfer of Property Act, 1882? 3. Whether the principle of estoppel could be applied to prevent the plaintiff from challenging the validity of the gift?

Ratio Decidendi: 1. A family settlement is a compromise or arrangement based on the assumption of antecedent title in the parties, where each party relinquishes claims to property other than that falling to their share and recognizes the rights of others. It does not require a conveyance to pass title. 2. A gift of immovable property must be made by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses under Section 123 of the Transfer of Property Act. Regulation III of 1872 also imposed restrictions on the transfer of immovable properties in the Santhal Parganas district. 3. The principle of estoppel under Section 115 of the Evidence Act prevents a person from denying the truth of a thing that they have intentionally caused or permitted another person to believe and act upon. However, equitable estoppel cannot override the provisions of a statute.

Final Decision: The court dismissed the appeal, upholding the judgment and decree of the lower court. The court held that the document was not a valid family settlement, the gift was invalid for want of registration and statutory restrictions, and the principle of estoppel could not be applied to prevent the plaintiff from challenging the validity of the gift.

Judgment

B.N.Jha, J.

1. This first appeal by defendants 2, 3, 4 and 7 arises out of a suit for partition brought by the plaintiff-respondent 1 for the partition of her one-fourth share in the properties described in the three schedules of the plaint.

2. The facts in this case are not in dispute. The parties are governed by Dayabhag school of Hindu law. The suit properties absolutely belonged to one Jadu Mandal, who died in Aswin, 1365 B S. He had two sons, Ajodhya Mandal arid Banamali Mandal. Both of them predeceased him. The plaintiff is the widow of his predeceased son, Banarnali Mandal. Defendants 1 to 7 are sons, daughters and widow of his elder son Ajodhya Mandai, Defendants 8 and 9 are his daughters, Jadu Mandal died leaving behind the plaintiff and the defendants as his heirs and successors in interest.

3. According to the case of the plaintiff, Jadu Mandal was in possession of all the properties mentioned in schedules A, B and C of the plaint till his death: and. after his death the properties vested upon the plaintiff and the defendants and they are in joint possession of the same. As Jadu Mandal became very old, he was incapable of managing his properties. He allowed the plaintiff, defendant 1, and defendants 2, 3, 4 and 7 to cultivate different portions of the suit land for better management and cultivation. They have been living separately in mess. There was no partition of the said properties according to legal shares. The plaintiff and the defendants have not been puliine on well and as such joint possession and cultivation of the suit land are noL possible. In spite of demand the defendants do not seem to be agreeable to amicable partition of the properties and hence the suit.

4. Defendants 1. 5 and 6 filed one set of written statement and supported the cast of the plaintiff and they showed their willingness to the partition of the suit land according to legal shares. Another written statement was filed by defendants 8 and 9, who are the daughters of Jadu Mandal. They also supported the case of the plaintiff. They claimed one fourth share each in the properties of Jadu Mandal, which are the subject-matter of partition. A formal written statement was filed t?y minor defendant 4.

5. The suit was resisted by defendants 2, 3 and 7 They filed one joint written statement. Their plea was that the suit is barred by the law of limitation and the plaintiff has got no cause of action for the suit. According to them Jadu Mandal died in Aswin 1365 B. S. He was the sole owner of all the properties which are the subject matter of the suit. During his lifetime there were quarrels amongst his grandsons and daughters-in-law He anticipated that there would be trouble with regard to the enjoyment of the properties amongst his grandsons and the plaintiff and other heirs. With a view to avoiding such dispute he made a family settlement of his properties on the 9th Baisakh, 1354 B. S. with regard to the properties mentioned in schedules A and B of the plaint, and he made six allotments of the properties. He kept 12 bighas 3 kathas 5 dhurs for himself and gave 8 bighas 7 dhurs to the plaintiff for her maintenance. The rest of the properties was given to Gadadhar Mandal. defendant 1, Kristo Chandra Mandal, defendant 2, Ramchandra Mandal, Defendant 3, and Nitaichandra Mandal, defendant 4. The full descriptions of the separate allotments of the properties made in the family settlement are given in their written statement. The family settlement was incorporated in a document, Exhibit A-1, in presence of panches and since that date each of the allottees came in separate and exclusive possession of the properties allotted to them. On that very day movable properties were also divided. Only the tank and mango orchards were left ijmal. It was provided in the family arrangement that 12 bighas and odd which Jadu Mandal kept for himself, would be divided amongst the four sons of his predeceased sons, Ajodhya Prasad Mandal after his death. They den






































































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