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1945 Supreme(Mad) 276

IN THE HIGH COURT OF MADRAS
Patanjali Sastri, J.
Thadavarthi Bapayya and Ors.
Versus
Myneni Pundarikakshayya
Decided On : 12.09.1945

Headnote:

Guardianship - Validity of Sale Deed - Act Section List: Not specified - The court discussed the validity of the sale deed executed by a de facto guardian and its binding nature on the minor, highlighting the lack of power of a de facto guardian to bind a minor or his estate by promissory note or acknowledgment of liability. The court also considered the settlement of disputed claims as recited in the sale deed and its validity. The judgment applies the legal principle that an improper alienation by a de facto guardian is not binding on the minor until it is set aside, although it may be voidable in the sense that the minor may elect either to ratify it or avoid it by treating it as a nullity.

Fact of the Case:

The case involved a dispute over the validity of a sale deed executed by a de facto guardian on behalf of a minor, and the binding nature of the debt incurred by the minor's adoptive father and mother.

Finding of the Court:

The court found that the sale deed was not fully binding on the minor, as the borrowing by the minor's mother was not shown to have been made for a purpose that would bind the minor. The court also held that the sale was not a bona fide settlement of disputed claims as recited in the sale deed.

Issues: The issues included the validity of the sale deed, the binding nature of the debts incurred by the minor's adoptive father and mother, and the settlement of disputed claims as recited in the sale deed.

Ratio Decidendi: The court applied the legal principle that an improper alienation by a de facto guardian is not binding on the minor until it is set aside, although it may be voidable in the sense that the minor may elect either to ratify it or avoid it by treating it as a nullity.

Final Decision: The appeal related to the main suit was dismissed, and a decree for possession of the properties claimed was allowed. The case was remitted to the trial Court for ascertainment of the mesne profits. The costs of the plaintiff in all the Courts were provided for in the final decree.

JUDGMENT

Patanjali Sastri, J.

1. These two second appeals arise out of two connected suits tried by the Court of the Subordinate Judge, Tenali. As the parties were differently arrayed in the suits it will be convenient to refer to them according to their description in the cause-title of the main suit, O.S. No. 61 of 1940, which was brought for possession with mesne profits of certain lands of the plaintiff sold during his minority by his natural father acting as his guardian. The first defendant was the vendee and defendants 2 to 5 are his sons.

2. The plaintiffs adoptive father, Chelamayya Chowdari, carried on dealings with the first defendant a money lender, and for the amount due in respect of such dealings executed a promissory note (Ex. D-7) for Rs. 1,465-3-5 on 5th June, 1923. He died in January, 1925, leaving him surviving his widow Srikrishnamma, whom he had authorised to make an adoption, and she accordingly adopted her sisters son, the plaintiff, who was then a minor. On 16th April, 1925, she executed for herself and on behalf of her son as his guardian a promissory note for Rs. 4,540-6-8 in favour of the first defendant. The note (Ex. D-6) recited that a sum of Rs. 2,480-6-8 was due in respect of her husbands dealings including the principal and interest due under Ex. D-7 and the balance Rs. 2,060 was advanced in cash to her on that day. The total amount was to carry interest at 12 per cent, per annum. The purpose for which Rs. 2,060 was borrowed by her was not mentioned in the note. This note was renewed by her on 6th April, 1928, by the execution of another note, Ex. D-5, for Rs. 5,416-5-11 being the principal and interest due under the previous note Ex. D-6. Soon after, she died in June, 1928, and her sisters husband and natural father of the plaintiff, China Seshiah, assumed control and management of the plaintiffs properties and affairs and continued in such management until the plaintiff attained majority in December, 1937. On 21st September, 1928, he executed the note Ex. D-4, for Rs. 5,725-5-7 as guardian and natural father of the plaintiff in renewal of the previous note of Srikrishnamma, and Ex. D-4 was in turn renewed by Ex. D-3, dated 19th September, 1931, which was for a sum of Rs. 7,845-14-1 then found to be due.

3. As the debt had remained unpaid for a long time the first defendant began to press for payment and, as a result, the sale now impugned was arranged with a view to discharge the debt. An agreement was accordingly entered into on 24th October, 1933, between the first defendant and China Seshayya purporting to act as the guardian of the plaintiff, providing that the lands now in question, 9 acres 11 cents in extent, should be conveyed to the first defendant for Rs. 9,000 out of the sum of Rs. 9,883-3-0 found to be due that date, and for the balance Rs. 883-3-0 a promissory note should be given. Possession of the lands was delivered immediately in pursuance of the agreement, but the conveyance and the promissory note were executed on 17th August, 1934, the parties in the meanwhile having taken legal advice from a leading lawyer at Bapatla who settled the draft of the deed of conveyance. As this deed, marked as D-1, has been the subject of much argument before us, it is necessary to set out the relevant portions which have been officially translated as follows:

Deed of sale of Immovable property for Rs. 9,000 . Under the last promissory note, dated 19th September, 1931, minor Pundarikakshayya became indebted to you in a sum of Rs. 9,883-3-0 till 24th October, 1933, so you have been pressing us to discharge the said debt. Thereupon we met, with disputes myself contending to the effect that the amount of the principal and the interest due in regard to the amount borrowed in cash by Srikrishnamma Garu on behalf of the minor is not binding on the minor and yourself contending that the minor is liable to discharge the entire debt inasmuch as Srikrishnamma Garu borrowed the said amount in cash for effecti















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