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1987 Supreme(Ker) 409

Judges : BALAKRISHNA MENON,SHAMSUDDIN
Narayanan - Appellant
Versus
Gangadharan - Respondent
Case No : A.S. No. 356, 357, 358, 359 of 1985
Decided On : 08/27/1987
Advocates Appeared :
P.N.K. Achan; K. Vijayan; P.N. Ravindran; For Appellant C.P. Damodaran Nair; D. Krishna Prasad; For Respondent

The main legal point established in the judgment is the application of S.82 of the Indian Trusts Act, which provides for the beneficial ownership of property when it is purchased with funds provided by another person for a specific purpose.

Headnote:

Trust Property - Recovery of Possession - S.82 of the Indian Trusts Act - S.10 of the Limitation Act

Fact of the Case:

The plaintiff entrusted money to the defendant for the specific purpose of purchasing landed property in the plaintiff's name, but the defendant purchased the properties in the names of himself and his other brothers with the funds provided by the plaintiff. The plaintiff sought recovery of possession of the properties.

Finding of the Court:

The court found that the properties were purchased with the funds provided by the plaintiff for the specific purpose of purchasing landed property in the plaintiff's name. The court held that the plaintiff is the beneficial owner and is entitled to recover possession of the properties from the defendants. The court also held that the suit was not barred by limitation.

Issues: The main issue was whether the defendant breached the trust reposed in him by purchasing the properties in the names of himself and his brothers instead of in the plaintiff's name.

Ratio Decidendi: The court applied S.82 of the Indian Trusts Act, which provides that where property is transferred to one person for a consideration paid or provided by another person, and it appears that such other person did not intend to pay or provide such consideration for the benefit of the transferee, the transferee must hold the property for the benefit of the person paying or providing the consideration. The court also applied S.10 of the Limitation Act, which states that the defendants held the property for the benefit of the person paying consideration.

Final Decision: The appeals were dismissed, and the plaintiff was allowed to recover possession of the properties. The plaintiff was also granted future mesne profits from the date of the suit till recovery of possession.

Judgment :-

1. These appeals are directed against the judgments in O. S. Nos. 347, 349, 351 and 353 of 1983 on the file of the Court of Subordinate Judge of Palghat. Defendants in the respective suits are the appellants in these cases. Plaintiff in all the suits is the same person and is the brother of the defendants in the suits.

2. The relief sought for in all the suits is recovery of possession from the defendants on the strength of title. The facts leading to these appeals may be summarised as follows:

The plaintiff and the defendants are sons of one Chippukutty. The defendant in O.S. No. 349 of 1983 is the eldest. According to the plaintiff from his early youth onwards, the plaintiff had been working in various places and ultimately he was employed in Saudi Arabia and had saved considerable income from his employment. The eldest brother Narayanan who is the defendant in O.S. No. 349 of 1983 is a teacher working in his native place. The plaintiff had been sending all the money saved by him to Narayanan by cheque and money orders and also had paid cash when he came to the native place occasionally. The plaintiff requested him to accumulate the money sent by him and to invest in landed properties in his name. Narayanan agreed to do it and a sum of Rs. 85,000/- was entrusted to Narayanan for the purpose of acquiring landed properties. Narayanan had deposited the money in the Koduvayoor Service Co-

operative Bank. Thereafter Narayanan entered into an agreement with the widow and children of one Gopala Iyer for purchasing the suit properties. Pursuant to this Narayanan purchased the properties by separate documents in his name and in the names of his brothers including the plaintiff. Narayanan had paid the amounts of consideration out of the funds sent by the plaintiff for the purpose of acquiring landed property in bis name. Expenses for execution of the documents and registration were also met out of the funds sent by the plaintiff. However, Narayanan and other brothers did riot inform him about the acquisition made in the name of his brothers, and he came to know of the fact only when he came on leave, to his native place in the year 1981. The plaintiff's case is that when he complained to Narayanan and the other brothers of having taken the assignment deeds in their names, all of them agreed that when the plaintiff returns to India, they would give alt the properties back to him executing necessary documents. They also agreed to account the profits derived from the properties. In February, 1982 the plaintiff resigned his job in Saudi Arabia and came back to his native place. He demanded his brothers to give back bis properties as bad been promised by them. Pursuant to this, Anandan, one of the brothers of the plaintiff, conveyed the properties purchased in his name to the plaintiff, but the other brothers including Narayanan did not convey the properties to the plaintiff or account for the profits. Therefore, on 18-2-1983 the plaintiff demanded his brothers including Narayanan by registered lawyer notice to execute documents conveying the properties purchased in their names with his funds to him. To this Narayanan sent a reply denying the liability to convey the property to the plaintiff. The plaintiff averred that the money entrusted by the plaintiff with Narayanan for the purpose of acquiring landed properties is a trust property. The amounts were entrusted with the defendant Narayanan on the strength of his faith in Narayanan for specific purpose of acquiring landed properties in the name of the plaintiff.and therefore Narayanan had a fiduciary capacity. Misusing the fiduciary capacity and utilising the trust money, Narayanan has purchased the properties in his name and in the names of the other brothers as well with a view to deceiving the plaintiff. The other brothers are also constructive trustees in respect of the properties purchased in their names and they are all hound to account for the profits and to surrender poss





























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