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2004 Supreme(Raj) 368

Supreme Court
Honble R. C. LAHOTI & ASHOK BHAN, JJ.
Subbegowda (Dead) By Lr - Appellant
Versus
Thimmegowda (Dead) By Lrs - Respondents
Appeal (Civil) 197 of 1999
Decided On : April 16, 2004

Headnote:Transfer of Property Act, 1882, Sec. 5 – Construction of a document – Settlement deed – What is the true nature of deed, what was the intention of executant behind executing deed? – Settlement as per terms of document was not a transfer of property in favour of adopted son, it was merely an arrangement or at best an entrustment of property to his adopted son for purpose of proper management – Held – A conditional transfer or a settlement accompanied by condition is permissible in law – Court will give effect to it unless there is some provision of law which annuals or invalidates such condition, restraint or limitation. (Paras 11 & 12)

       The deed dated 1.8.1969 does not amount to transferring the scheduled property to Narayani. It was only an arrangement, called `settlement with the power of revocation expressly reserved to the author, subject to which reservation the arrangement was intended to come in effect. It has not been the case of the appellant before us, nor could it have been, that the scheduled property was gifted by Thimmegowda to Narayani. Had it been so, the question of testing validity of gift by reference to Section 126 or holding it to be onerous gift within the meaning of Section 127 of the Transfer of Property Act 1882 could have arisen. (Para 11)

       A conditional transfer or a settlement accompanied by conditions is not unknown to the law of real property. It is permissible in law to annex or encumber any grant or alienation with condition or limitation which will operate and the court will give effect to it unless there is some provision of law which annuls or invalidates such condition, restraint or limitation. None has been brought to our notice. (Para 12)

Honble LAHOTI, J.–Thimmegowda, the sole respondent herein, has died during the pendency of these proceedings and his widow and one daughter (major and unmarried) are on record as legal representatives of the deceased. Thimmegowda and Subbegowda were real brothers. Thimmegowda did not have any son. His family consisted of his wife and four daughters. Narayani (or Narayana), impleaded as appellant No.2, is the son of Subbegowda. Subbegowda, the appellant No.1, has also died during the pendency of these proceedings.

(2). Thimmegowda, having no male issue, adopted Narayani, the son of his younger brother Subbegowda. A deed of adoption dated 4.6.1965 was executed and registered. On 1.8.1969, another deed came to be executed and registered by Thimmegowda and this deed is the subject matter of controversy in these proceedings. The deed is styled as `Settlement Deed.

(3). The contents of the deed reveal what had impelled Thimmegowda to execute the deed. Thimmegowda had agricultural land but was unable to carry out agricultural operations. Out of his four daughters, he had performed the marriage of the two and the remaining two, respectively aged 10 and 4 years at that time, were yet to be married and were residing with the parents. The deed goes on to state

"I have not given right of any kind over my properties to you, my adopted son Narayani. You represented to me that in case I hand over the total responsibility of the family properties to you, you together with your natural father and brothers would manage the properties and discharged the existing dates of the family and further that you would require the power through written records, I am today executing this settlement deed in your favour, my adopted son Narayani. I have made this arrangement so that hereafter you may in a wise manner alongwith your natural father improve my property and manage the same as per your wish without any obstruction.

Hereafter I shall have no objection for your management of the family properties. You shall look after my welfare and that of my wife and children and you shall get my daughters married. Since you have taken the responsibility of my welfare and that of my wife and since the responsibility of protecting us has been taken over by you and further since you have to discharge the debts incurred by me till now for the family, I have handed over the possession of schedule properties under this settlement deed to you. In case either my wife or I incur any further debt hereafter you shall not be responsible for the same. You shall not violate any one of the above said conditions. In case you violate any condition, I shall have the right to cancel this settlement deed. You shall have the right to enjoy hereafter all the treasure, trove, water, plants etc. in the schedule property and you shall have the right to sell, gift and alienate the same and may enjoy the same from generation to generation peacefully."

(4). The above statement is followed by a schedule wherein six landed properties are listed. Below the schedule there is yet another endorsement made by the executant Thimmegowda as under:-

"I have settled the six items of properties as mentioned above and therefore have executed this settlement deed.

Sd/- on behalf of minor Narayani his natural father, Subbegowda as guardian.

Since you, Narayani have been under my care and custody since the beginning and since I wanted to give you something for yours livelihood, I have through this settlement deed entrusted the schedule properties to you. The approximate value of the schedule properties is Rupees one thousand (Rs.1000/).

Sd/- Thimmegowda

Sd/- Witnesses"

(5). On 9.11.1970, Thimmegowda filed a suit against Narayani and his natural father Subbegowda seeking setting aside of the settlement deed dated 1.8.1969 on the ground of fraud and misrepresentation and the consequential relief of restoration of possession over the suit schedule properties. The trial Court dismissed the suit on the finding that any ci











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