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1976 Supreme(Mad) 45

Madras High Court
SETHURAMAN
Sankaranarayanan - Appellant
Versus
Official Receiver, Tirunelveli - Respondent
Decided On : 01/30/1976

The manager of a joint family cannot impose on a minor coparcener the risks and liabilities of a new business started by himself.

Headnote:

PARTITION - JOINT FAMILY PROPERTY - ANCESTRAL PROPERTY - PURCHASE OF PROPERTY BY MANAGER - ONUS OF PROOF - DEBTS INCURRED BY MANAGER - BINDING ON MINOR COPARCENERS - NEW BUSINESS - MARRIAGE EXPENSES OF DAUGHTER - LIABILITY OF COPARCENERS.

Fact of the Case:

A suit for partition of joint family property was filed by the plaintiffs, sons of the third defendant, against the defendants, including the Official Receiver, who was impleaded as the first defendant after the adjudication of defendants 2 and 3 as insolvents. The plaintiffs claimed one-third share in the suit properties, alleging that item 1 was ancestral in character and item 2 was purchased by the second defendant from the cash left by his father. The Official Receiver contested the plaintiffs' claim, asserting that the entire properties vested in him and that the plaintiffs were not entitled to partition. The plaintiffs contended that the debts incurred by defendants 2 and 3 were avyavaharika in nature and not binding on them.

Finding of the Court:

The court held that item 2 of the plaint schedule properties was a joint family property and not the absolute property of the second defendant. The court relied on the principle that the onus of proof lies on the manager of a joint family to prove that any immoveable property was acquired by him with his own separate funds and not with the help of the joint family funds. The court found that the second defendant had failed to discharge this onus.

Issues: 1. Whether item 2 of the plaint schedule properties was a joint family property or the absolute property of the second defendant? 2. Whether the debts incurred by defendants 2 and 3 were binding on the plaintiffs? 3. Whether the Official Receiver could proceed against the son's share for the father's debts? 4. Whether the coparcenary was liable for the marriage expenses of the 4th defendant, who was married after the institution of the suit for partition?

Ratio Decidendi: 1. The court applied the principle that the onus of proof lies on the manager of a joint family to prove that any immoveable property was acquired by him with his own separate funds and not with the help of the joint family funds. The court found that the second defendant had failed to discharge this onus, and therefore held that item 2 of the plaint schedule properties was a joint family property. 2. The court held that the debts incurred by defendants 2 and 3 were not binding on the plaintiffs because they were incurred in respect of a new business which was not a kulachara of the family. The court relied on the principle that the manager of a joint family cannot impose on a minor coparcener the risks and liabilities of a new business started by himself. 3. The court held that the Official Receiver could not proceed against the son's share for the father's debts because the debts had been incurred in respect of a new business which was not a kulachara of the family. The court found that the sons were not bound by the debts and, therefore, they could not be proceeded against. 4. The court held that the coparcenary was liable for the marriage expenses of the 4th defendant, who was married after the institution of the suit for partition. The court relied on the principle that in a coparcenary consisting of father and sons, the obligation of maintaining and marrying the daughters was not only on the father and through him on the coparcenery but it was also an obligation on the coparcenery itself.

Final Decision: The court allowed the second appeal and held that the plaintiffs were entitled to one-third share in the suit properties. The court also directed that a provision for a sum of Rs. 5000 should be made towards the marriage expenses to the mother of the 4th defendant.

Judgement

JUDGMENT:- There was one Sankaranarayana Iyer who had two sons by name Sundaram Iyer and Ganapathi Iyer. Sundaram Iyer is the second defendant in the suit and Ganapathi Iyer the third defendant. Ganapathi Iyer has two sons by name Sankaranarayanan and Subramaniam. Sankaranarayanan is the first plaintiff and Subramaniam the minor through his mother and next friend is the second plaintiff. The suit was filed for partition of their (plaintiff's) one-third share. On 10-11-1961 in I. P. 9 of 1961 defendants 2 and 3 were declared insolvents. The Official Receiver was also, therefore, impleaded as the first defendant in the suit.

2. There are two items of properties set out in the plaint. The first item of the suit properties is ancestral in character. The second item was said to have been purchased by the second defendant from out of the cash left by his father. Defendants 2 and 3 were said to have started an entirely new business with the cash left by their father and contracted debts. According to the plaintiffs, the debts were avyavaharika in character so as not to bind them or their shares. The first defendant-Official Receiver was said to have brought the whole of the joint family properties including the shares of the plaintiffs for sale for realising the decree debts against defendants 2 and 3 which, according to the plaintiffs, were not binding on them. Hence the suit for declaration of their right to one-third share in the suit properties and for partition was filed.

3. The first defendant i.e., the Official Receiver filed a written statement taking up the position that on the adjudication of defendants 2 and 3, the entire properties inclusive of any share of their sons vested in him and that the plaintiffs were not entitled to ask for partition. It was claimed that the debts of the insolvents were binding on the sons and that the sons were bound to discharge the same on the principle of pious obligation. The case of the Official Receiver was that item 2 of the plaint schedule properties was the absolute property of the second defendant and that the third defendant or his sons, plaintiffs 1 and 2 had no right thereto. The Official Receiver denied that the debts contracted by defendants 2 and 3 were in any manner liable to be classified as avyavaharika debts. The properties including the shares of the plaintiffs were said to be insufficient to pay the debts in full and that, therefore, provision has to be made by the Court to order the sale of the entire properties including the shares of the plaintiffs for payment of such of those debts which had been proved by the Official Receiver.

4. The fourth defendant to the suit is the unmarried daughter of the second defendant. She was subsequently married during the course of the present suit. The Officer Receiver contested her right to claim for the marriage expenses or her right of residence as the properties were not sufficient to meet the debts of her father. He wanted a declaration that the debts of defendants 2 and 3 were binding on the plaintiffs and their shares and that a direction should be issued that the entire family properties should be sold by the Official Receiver including the shares of the plaintiffs for payment of the debts of defendants 2 and 3.

5. Defendants 2 and 3 were ex parte, while the fourth defendant, the daughter of Sunderam Iyer, claimed a sum of Rs. 5000 towards her marriage expenses and also provision for her residence.

6. The learned Subordinate Judge, who tried the suit, held that the plaintiffs had one-third share in the plaint schedule item No. 1, that the entire properties in the plaint schedule had vested in the Official Receiver on the adjudication of defendants 2 and 3 as insolvents, that item No. 2 of the plaint schedule was not the joint family property, that the plaintiffs had no share in it and that the debts incurred by defendants 2 and 3 were not avyavaharika debts so as not to bind the plaintiffs. He held also that no provision nee









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