The central legal point established in the judgment is that transactions involving minors must be regarded as void, as minors are incompetent to make contracts.

1. The facts found in this case are that certain Immovable property was purchased for the benefit of the plaintiff in the suit by one Ramasami Konan his maternal uncle and that it was subsequently sold by the 3rd defendant, the plaintiffs father as if it belonged to the family of which he and the plaintiff were members. Defendants Nos. 1 and 2 claim under the sale by the 3rd Defendant. The contention on the merits in the lower Courts was that the purchase in the name of the minor was really benami for the 3rd defendant or the family, and that therefore the plaintiff had no exclusive right to the property, and the sale by the 3rd Defendant was valid.

2. On the finding of the District Court that the purchase was made by the maternal uncle and for the benefit of the minor the sale by the 3rd defendant cannot be upheld and defendants Nos. 1 and 2 have no title. It is contended that on the finding that the sale was for the benefit of the minor, it must be held to be a void transaction as a minor is incompetent to purchase property. The answer to this is substantially what is given by the District Judge viz. that the minor was not a contracting party in the transaction of purchase by Ramasami Konan although the minor became the beneficial owner under the deed of purchase. This case is on all fours with S.A. No. 881 of 09 decided by Munro and Sankaran Nair JJ. In that case a person executed a deed of sale of certain property in the name of his wife, and when she sued for the recovery of the property, it was contended that the sale was void. The learned judges answered this contention thus :

"The decree is right, the contract being found to have been between the plaintiffs father (i.e., father of the wife) and the appellant (i.e., her husband) "We might be contention thus: ourselves on the authority of this case, but out of deference to the arguments that have been urged on behalf of the appellant we shall state our reasons a little more fully.

3. According to the Indian Contract Act a minor is incompetent to make a contract. The Judicial Committee of the Privy Council decided in Mohori Bibee v. Dharmodas Ghose I.L.R. (1903) C. 539 that a contract by a minor must, according to the Contract Act, be regarded as void and not merely voidable. The case before their Lordships was one of a mortgage made by a minor. Of course a mortgage by a minor is a contract by him to pay a. sum of money which he borrows on the security, of certain property. Many transactions resulting in the creation of rights over property arise out of contracts, and where a minor enters into any such transaction where a contract by him is an essential condition preliminary to the transaction or contractual obligations on his part flow from the transaction, it must be regarded as void.

4. In Kampti Prasad v. Sheogopal Lal I.L.R. (1904) A. 342 the decision of the Privy Council was followed and a mortgage by a minor was held to be void. On the other hand in Ulfet Rai v. Gouri Shanker I.L.R. (1911) A. 657 it was held that, where money is already due to a minor beneficiary by his trustee on accounts between them, a conveyance by the trustee in favour of the minor for the amount so due was valid. That case perhaps is not quite reconcilable with the decision of this Court in Navakoti Narayana Chetti v. Chokalinga Chetty I.L.R. (1909) M. 312. There in answer to a suit for possession of certain property, the defendant, a minor, set up a claim to the right obtained under a sale deed. Benson and Krishnasami Aiyar JJ. held that the sale was void. It is there pointed out that the creation of a right in the property by a sale must necessarily be preceded by an agreement between the minor and the vendor and the minor being incapable of entering into the agreement the resulting transaction, the sale must also be held void. Krishnasami Aiyar J. points out that even where money is already due to the minor and is used as consideration for the sale, it is necessary in order that the sa