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1954 Supreme(Gau) 22

Manipur High Court
BRIJ NARAIN, J.
Manihar Bibi
Versus
Rakha Singh
Civil Appeal Case No. 40 of 1953
Decided On : 13-05-1954

Advocates:
B.K. Ghosh, for Appellant; K.C. Chakroverty and R.K. Singh, for Respondents.

A transfer of property made with the intent to defeat or defraud creditors is voidable at the instance of the creditors.

Headnote:

FRAUDULENT TRANSFER - ATTACHMENT BEFORE JUDGMENT - DOWER DEBT - POSSESSION - TRANSFER OF PROPERTY ACT, 1882, S. 53 - CIVIL PROCEDURE CODE, 1908, O. 21, R. 58, O. 38, R. 10 - Where a transfer of property is made with the intent to defeat or defraud creditors, such transfer is voidable at the instance of the creditors. In the instant case, the appellant's husband executed two deeds, one in 1950 and the other in 1952, transferring the disputed property to her in consideration of her dower debt. However, the court found that the appellant had not proved that her dower debt was subsisting on the dates of the deeds and that the deeds were executed with the intent to defeat the creditors who had obtained an attachment before judgment against the husband's property.

Fact of the Case:

The appellant, Musammat Manihar Bibi, claimed ownership of a property that was attached before judgment by the respondents, Rakha Singh and Mahabir Singh, in execution of a decree obtained against her husband, Mahammad Kasim Mia. The appellant claimed that the property was transferred to her by her husband in consideration of her dower debt, but the respondents contended that the transfer was fraudulent and void.

Finding of the Court:

The court found that the appellant had not proved that her dower debt was subsisting on the dates of the deeds transferring the property to her and that the deeds were executed with the intent to defeat the creditors. The court also found that the appellant had not been in possession of the property.

Issues: 1. Whether the appellant had proved that her dower debt was subsisting on the dates of the deeds transferring the property to her. 2. Whether the deeds were executed with the intent to defeat the creditors. 3. Whether the appellant had been in possession of the property.

Ratio Decidendi: The court held that a transfer of property made with the intent to defeat or defraud creditors is voidable at the instance of the creditors. In the instant case, the court found that the appellant had not proved that her dower debt was subsisting on the dates of the deeds and that the deeds were executed with the intent to defeat the creditors. The court also found that the appellant had not been in possession of the property. Therefore, the court held that the deeds were void and that the property was liable to be attached and sold in execution of the decree obtained by the respondents.

Final Decision: The appeal was dismissed with costs to the respondents.

JUDGMENT :- This appeal has been brought by Musammat Manihar Bibi appellant against the decree of the learned District Judge, Manipur, dated 10-8-1953 in Civil Suit No. 8 of 1952 which has been dismissed by the trial Court. The facts of the case briefly stated are that Mahammad Kasim Mia respondent No. 3 was married to Musammat Manihar Bibi appellant on 5-7-1932 and the latters dower debt was settled at Rs. 10,000/- for which an agreement deed had been executed. This agreement deed was alleged to have been lost during the bombing of Imphal in the last war, and so the appellants mother when in her death bed got another deed dated 10th January 1951, Ex. P/B from the husband whereby the latter gave the disputed property situated in plot No. 164, Maxwell Bazar, along with constructed buildings thereon as consideration for the dower debt and the appellant was given possession over the disputed plot on the same date. The appellant, however, in order to feel secure got a regular sale deed from her husband on 5-7-1952 vide Ex. P/A and this deed was registered on 8-7-1952. The appellant claims to have Jet out the buildings in question vide Ex. P/B and so she claimed to be in possession also.

2. Mahammad Kasini Mia respondent No. 3 had borrowed Rs. 12,000/- from Ganesh Singh and Giga Singh through the pro-note dated 10-7-1949 and this debt remained unpaid. On 5-3-1952 Rakha Singh, son of Ganesh Singh and Mahabir Singh, son of Giga Singh brought suit No. 16 of 1952 in the Court of the Sub-Judge, Manipur on the basis of the aforesaid pro-note and an application for attachment before judgment of the disputed property, was filed on 23rd June 1952. On the same date the learned Sub-Judge demanded cash security from the respondent No. 3 Mahammad Kasim Mia and later on 23rd August 1952 when security was not furnished, an order for attachment before judgment was passed relating to this property and the Suit No. 16 of 1952 was decreed for Rs. 19,759/- on 25th August 1952. It has already been mentioned by me that the sale deed with regard to the property in question was executed by Mohammad Kasim Mia in favour of the present appellant on 5-7-1952 after the application for attachment before judgment had been presented in Court on 23-6-1952. Musammat Manihar Bibi appellant filed an objection under O. 38, Rules 8 and 10 read with O. 21, R. 58, Civil P.C., on 22-9-1952. This objection was opposed by the respondents Nos. 1 and 2 by means of reply dated 21-11-1952 and the appellants objection was dismissed on the same date. The present appellant then brought Suit No. 8 of 1952 under O. 21, R. 63, Civil Procedure Code on 19-12-1052 praying for declaration that Musammat Manihar Bibi was the owner in possession of the property in question and it was further prayed that the respondents Nos. 1 and 2 be permanently restrained from executing their decree passed in Suit No. 16 of 1952 (Execution Case No. 51 of 1852) and the execution proceedings be stayed until the disposal of the suit. This suit was also dismissed, and so Musammat Manihar Bibi has come in appeal.

3. The respondents - No. 1 and 2 denied that the respondent No. 3 owed any dower debt of Rs. 10,000/- to the appellant and they further denied that the respondent No. 3 had executed any agreement deed at the time of the marriage or on 10-1-1950 and the story about the loss of the agreement deed and the appellants mother imploring her son-in-law to execute the deed dated 10-1-1950, has also been denied. If was further contended that the dower debt of the appellant if any at all had become time-barred and in any case it was not subsisting on 10-3-1950 or on 5-7-1952. According to these two respondents the appellant had throughout been living with the respondent No. 3 in his house and she had never been in possession over the disputed property. It was also contended that the plaint was not duly verified and the court-fee paid was insufficient, but these pleas have not been pressed before me.

4. The first qu



















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