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MADRAS HIGH COURT
RAMASWAMI
Nagarathnammal
Versus
D. Veeraraghavan and others
C.S. No. 349 of 1953
Decided On : 28January, 1954
CONSTRUCTION OF SETTLEMENT DEED - PRE-NUPTIAL SETTLEMENT - LIFE ESTATE - RESTRAINT ON ALIENATION - GIFT OVER - ORIGINATING SUMMONS - SCOPE AND RELIEF - MARRIAGE EXPENSES - LOAN ON MORTGAGE.
Fact of the Case:
A pre-nuptial settlement deed was executed in 1931, granting a house to Nagarathnammal as a gift upon her marriage to Veeraraghava Mudaliar. The deed contained a restraint on alienation and a gift over in case Nagarathnammal died without issue. Nagarathnammal sought a construction of the deed, claiming an absolute estate, or alternatively, permission to raise a loan of Rs. 5000 on mortgage of the property for the marriage of her daughter.
Finding of the Court:
The court held that the settlement deed conferred a life estate on Nagarathnammal, and not an absolute estate. The court considered the intention of the settlors, the successive absolute estates given, and the restraint on alienation coupled with a gift over, as factors indicating a limited interest. The court also held that the scope of an originating summons is limited to the reliefs specified in Order 45, Rule 1 of the Original Side Rules of the High Court, and that the court has discretion to decide questions raised on an originating summons, considering the nature of the defence and the likelihood of settling the litigation.
Issues: 1. Whether the settlement deed conferred an absolute estate on Nagarathnammal or a life estate? 2. Whether the court could permit Nagarathnammal to raise a loan on mortgage of the property for the marriage of her daughter?
Ratio Decidendi: 1. The court applied the principles of construction of gift deeds, considering the intention of the settlors, the surrounding circumstances, and the language of the deed as a whole. The court found that the intention of the settlors was to provide for Nagarathnammal in the event of her husband's death, but also to keep the property within the family. The court also considered the successive absolute estates given and the restraint on alienation coupled with a gift over as indicating a limited interest. 2. The court held that the scope of an originating summons is limited to the reliefs specified in Order 45, Rule 1 of the Original Side Rules of the High Court, but that the court has discretion to decide questions raised on an originating summons, considering the nature of the defence and the likelihood of settling the litigation.
Final Decision: The court held that the settlement deed conferred a life estate on Nagarathnammal and that she could not claim an absolute estate. The court also held that it could permit Nagarathnammal to raise a loan on mortgage of the property for the marriage of her daughter, subject to proof of valuation.
ORDER :- This is an originating summons in regard to the construction of a settlement deed dated 4-7-1931 and for alternative reliefs.
2. The facts are : The house bearing door No. 2/19, Krishnappa Chetti Street, Chintadripet, Madras, belonged absolutely to Deivasigamani Mudaliar and Lakshmi Ammal. This couple had an only son by name Veeraraghava Mudaliar and they asked for the hand of Nagarathnammal, the applicant before me, for marriage as the second wife of the said Veerararaghava Mudaliar. The parents of that Nagarathnammal insisted upon a pre-nuptial settlement. Therefore, Deivasigamani Mudaliar and his wife executed a settlement deed on 4-7-1931.
3. The relevant portion of the said settlement deed runs as follows :
"Whereas we had asked you Nagarathnammal aforesaid to be given in marriage as his second wife to our only son Veeraraghava Mudaliar and whereas your father said that he would give you in marriage if a house was given to you under a document, as whereas we have agreed thereto and whereas we have, this day, hereby wholeheartedly given to you as a gift the aforesaid house and ground of the present value of Rs. 2500, you shall hereafter marry our son Veeraraghava Mudaliar and you shall yourself personality hold and enjoy the aforesaid house and ground from son to grandson and so on in succession. If you have no issue, you shall collect the rental income from the aforesaid house and pay the taxes and effect the repairs and enjoy the balance yourself personally. You shall have no right to alienate by way of mortgage or sale etc. Even if you make any such alienations it shall not be valid. The issue, male or female, born of your womb, shall hold and enjoy the said house and ground with powers of gift, sale to. In case you the without any issue, my issue shall take the aforesaid house and ground after your lifetime. We have herewith handed over to you all the title deeds. To this effect is the deed of gift in respect of the house and ground written and given by us with our consent and of our own accord."
4. In regard to this settlement deed this Originating Summons has been taken for the construction that this settlement deed conferred an absolute estate from Nagarathnammal and secondly, in the alternative, if this Court does not agree With that construction to permit this applicant to raise a loan of Rs. 5000 on a mortgage of the said property for the marriage of the second respondent Ghanasundaram, aged about 18. I may complete the information by pointing out that the first respondent is the husband of this Nagarathnammal and the 3rd, 4th and 5th respondents are her minor children.
5. The two points for determination are :
i. What is the scope of an originating summons and whether the relief asked for by the petitioner can be granted ?
ii. What is the true construction to be placed upon the estate conferred upon Nagarathnammal under this gift deed ?
6. Point 1 : The scope of an originating summons is regulated by Order 45 of the Original Side Rules of the High Court and the provisions are :
"1. The executor or administrators of a deceased person, or any of them, and the trustees under any deed or instrument or any of them, and any person claiming to be interested in the relief sought as creditor, devisee, legatee, heir, or legal representative, or as cestui que trust under the trusts of any deed or instrument, and claiming by assignment or otherwise, under any such creditor or other person as aforesaid, may take out, as of course, an originating summons, returnable before the Judge sitting in Chambers for such relief of the nature or kind following, as may by the summons be specified and the circumstances of the case may require (that is to say) the determination, without an administration of the estate or trust, of any of the following questions or matters.
(a) any question affecting the rights or interest of the person claiming to be creditor, devisee, legatee, heir or legal representative, or cestui que trust;
(b)
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