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1956 Supreme(Cal) 91

HIGH COURT OF CALCUTTA
R. P. MOOKERJEE, SARMA SARKAR
TINCOWRI PRAMANIK - Appellant
Versus
NARAYAN CHANDRA MUKHERJEE - Respondent
A. F. O. D.  178  Of  1950
Decided On : MAY 28, 1956

Advocates Appeared:
ATUL CHANDRA GUPTA, Jitendra Kumar Sen Gupta, MRINAL KUMAR GHOSH, Shib Krishna Dutta, SURATHI MOHAN SANYAL

An executor's powers to dispose of property are restricted if the testator has imposed such restrictions in the will, and a transferee who has made sufficient enquiry to put him on notice of a breach of trust cannot rely on the unrestricted powers of the executor under Section 307 (1) of the Succession Act.

Headnote:

SUCCESSION ACT - SECTION 307 - EXECUTOR'S POWERS - RESTRICTIONS - INTERPRETATION - TRANSFER BY EXECUTOR - VALIDITY - ENQUIRY BY TRANSFEREE - NOTICE OF BREACH OF TRUST - EFFECT.

Fact of the Case:

Nagendra Nath Banerjee died in 1939 leaving a will appointing his widow Umasasi as executrix. In 1944, Umasasi conveyed a property to defendant No. 2 for a consideration of Rs. 24000/- purporting to pay herself the alleged dues of over Rs. 14000/- from her husband and for other debts incurred by her. The plaintiff, claiming a reversionary interest under the will, prayed for a declaration that the alienation was invalid and did not bind the plaintiff or the estate of the testator.

Finding of the Court:

The court held that the testator had intended to impose restrictions on the powers of all the executors, including Umasasi as executrix, to deal with the property without obtaining permission from the Court which had granted the probate. The court also held that the executrix had contravened the restriction imposed by the testator under Clause 9 of the will by borrowing money to pay off a deposit and then selling the property without obtaining the approval of the Probate Court.

Issues: 1. Whether the testator had imposed restrictions on the powers of the executor to dispose of the property. 2. Whether the executrix had acted in breach of trust by selling the property without obtaining the approval of the Probate Court. 3. Whether the transferee had made sufficient enquiry to put him on notice of the breach of trust.

Ratio Decidendi: 1. The court interpreted the provisions of the will and found that the testator had intended to impose restrictions on the powers of the executor to dispose of the property. The court held that the testator's intention was to keep the property intact until it vested absolutely in certain legatees. 2. The court held that the executrix had contravened the restriction imposed by the testator under Clause 9 of the will by borrowing money to pay off a deposit and then selling the property without obtaining the approval of the Probate Court. The court held that the executrix was not entitled to sell the property to refund the deposit made by Niharbala. 3. The court held that the transferee had made sufficient enquiry to put him on notice of the breach of trust. The court held that the transferee had obtained information and materials which put him to further enquiry and clarification and that he could not after making such detailed enquiry fall back upon the provisions of Section 307 (1) of the Succession Act.

Final Decision: The court dismissed the appeal and held that the transfer of the property by the executrix was valid and binding during her lifetime, but the estate would not be bound by the transaction after her death.

R. P. MOOKERJEE, J.

( 1 ) NAGENDRA Nath Banerjee died in 1939 leaving a will, dated 1-2-1931. He died without any issue and appointed his widow Umasasi as executrix. On 31-8-1944, Umasasi conveyed the property in suit to defendant No. 2 Tincowri Pramanik for a consideration of Rs. 24000/- purporting to pay herself the alleged dues of over Rs. 14000/ from her husband and for other debts incurred by her. The plaintiff Narayan Chandra claimed that Umasasi had got only a widow's estate under the will and she had no right or authority to dispose Of the property and that even if the same had been effected in her capacity as executrix, it was a collusive one and without any consideration. The plaintiff claimed to have a reversionary interest under the will. He accordingly prayed for a declaration that the will (alienation?) was invalid and did not bind the plaintiff or the estate of the testator,

( 2 ) THE principal defence was by the transferee Tincowri, defendant No. 2. It was contended 'inter alia' by him that the testator had left liabilities and the executrix had conveyed the property in due course of administration and that she had not assented to the legacies in respect of the property in suit. The allegations made in the plaint either about collusion or absence of legal necessity or want of consideration were denied. Defendant No. 1 Umasasi filed a written statement, supporting her action and the title which she had created in favour of defendant No. 1.

( 3 ) THE learned Subordinaee Judge decreed the plaintiff's suit holding 'inter alia' that the sale by the executrix would enure for her life time only and was not binding either upon the plaintiff or upon the estate of the testator. Defendant No. 2 has appealed to this Court.

( 4 ) ON behalf of the appellant, it has been contended by Mr. Gupta that under Section 307, Succession Act, a transfer by the executrix would be valid and binding on the estate, she having full and complete authority to dispose of the property and only if there were specific restrictions in the will, the executrix would not have such wide powers. In the present case it was contended that there was no such restrictive clause and the transferee had no duty to enquire outside the will and even if an enquiry had actually been made, such action would not in any way impose upon the transferee responsibilities which did not otherwise rest on him.

( 5 ) THE first part of the proposition is not contested by Mr. Sen Gupta appearing on behalf of the respondent. It is, however, contended that under the will left by Nagendra the executrix had not been given full and unrestricted authority to dispose of the properties. In view of such restrictions, title would not pass in favour of the transferee unless the previous sanction of the probate Court had been obtained. In the present case, the transfer was a voidable one. It is further urged that an enquiry had actually been made by the solicitor on behalf of defendant No. 2, and it was disclosed during such enquiry what the real state of affairs was. That the estate was not liable for the alleged debts claimed by the widow personally was clear and apparent to the enquiring solicitor. The transferee has not further produced such materials as he had collected during the enquiry. There was no justifying reason to support the transfer made. Mr. Sen Gupta further contended that the alleged transfer was without any consideration and was a collusive one.

( 6 ) WE proceed to consider in the first place the provisions contained in the will, dated February 1, 1931, left by Nagendra Nath Banerjee.

( 7 ) THE testator cancels and revokes an earlier will and proceeds to give detailed descriptions of his relations indicating the grounds why he is not making any provisions for some of them while providing for others.

( 8 ) AFTER making lump sum provisions for a maternal aunt and the widow of the spiritual guide, reference is made in Clause 4 of the will that Rs. 14000/- lent in t










































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