MADRAS HIGH COURT
VEERASWAMI,VENKATADRI
Kesavalu Naidu
Versus
Nagarathnam and others
Appeal No. 220 of 1960
Decided On : 8 August, 1963
HINDU LAW - ALIENATION - SALE BY GUARDIAN - NECESSITY - SALE TO DISCHARGE ANTECEDENT DEBTS - NO IMMEDIATE PRESSURE - WHETHER SALE BINDING ON MINORS.
Fact of the Case:
A mother, as guardian of her minor sons, sold their property to discharge an antecedent debt secured by a usufructuary mortgage. The mortgage provided a period of ten years for redemption, but the sale was made before the expiry of that period. The appellants, the minor sons, sued to recover the property, claiming that the sale was not for necessity or for the benefit of the estate and, therefore, not binding on them.
Finding of the Court:
The court held that the sale was binding on the appellants. It found that there was no immediate pressure on the estate to pay the debt, but that there were no other means or way of paying off the antecedent debt. The court also found that the family of the appellants was possessed of no other property and that they had no means of livelihood or other source of income from which they could possibly discharge the debts.
Issues: Whether the sale of the property by the guardian was supported by necessity or it was for the benefit of the Estate.
Ratio Decidendi: The court held that the power of a manager of a Hindu joint family or a guardian of minors to sell or charge a property belonging to a co-parcenary or the minors is a limited and qualified one. Such a person can properly exercise his power only in a case of necessity or for the benefit of the estate. In considering that question the pressure on the estate, the danger to be averted or the benefit to be conferred upon, the estate should of course be taken, into account.
Final Decision: The appeal was dismissed with costs.
VEERASWAMI, J. :- The appellants sued for recovery of the properties covered by B schedule to the plaint on a claim, that the sale thereof by their mother on 25th June 1943, was not for necessity or for the benefit of the estate and, therefore, not binding on them. The suit was resisted by defendants 1 to 3 (respondents 1 to 3) of whom the first is the son of Krishnayya Naidu in whose favour the sale was executed, the second and the third are his wife and undivided brother respectively, asserting that the sale was supported by necessity and was beneficial to the estate and that the suit was also barred by limitation. The Court below accepted the defence on those points and dismissed the suit. The fourth respondent who is a brother of the appellants was impleaded as a defendant as according to them he would not co-operate with them.
2. The main point argued before us on behalf of the appellants is whether the sale in favour of Krishnayya Naidu was supported by necessity or it was for the benefit of the Estate. Chengalvaraya Naidu, the father of the appellants, had executed a usufructuary mortgage on 26th May 1941, over the said properties securing repayment of a sum of Rs. 3000. The sale effected in favour of Krishnayya Naidu by the mother as guardian of the appellants and the fourth respondent, who were then minors, was for a sum of Rs. 4500 out of which Rs. 3150 went in discharge of the earlier usufructuary mortgage, Rs. 350 was received by the vendor for the purpose of paying, the plaintiffs maternal grand-father in consideration of his having discharged two decrees for that total sum which had been obtained against Chengalvaraya Naidu before his death and another sum of Rs. 150 was applied in discharge of a mortgage dated 11th February 1942, executed by the appellants mother over her own property.
For the balance of the, purchase money, namely, Rs. 1000, Krishnayya Naidu executed a promissory note. It is stated that a suit was instituted for recovery of this sum due under the promissory note, but, for the purpose of the present appeal we are not concerned with the details of that suit or its result. The usufructuary mortgage provided a period of ten years for redemption. Though the bulk of the sale consideration went in discharge of the antecedent debts of Chengalvaraya Naidu it is contended that having regard to the fact that there was no pressure upon the estate and there was no benefit to the estate the sale could not be supported as binding on the appellants. In support of this contention, learned counsel for the appellants relied on Pandharinath v. Ramachandra, AIR 1931 Bom 157 and Bansilal v. Shivlal, AIR 1953 Bom 361.
3. It is well established that the power of a manager of a Hindu joint family or a guardian of minors, under the Hindu law, to sell or charge a property belonging to a co-parcenary or the minors is a limited and qualified one. Such a person can properly exercise his power only in a case of necessity or for the benefit of the estate. In considering that question the pressure on the estate, the danger to be averted or the benefit to be conferred upon, the estate should of course be taken, into account. We do not think it necessary to refer to authorities in support of these propositions. The question, however, is whether where a father who is a coparcener executed a usufructuary mortgage to secure a debt of his, his widow and guardian of his minor sons can notwithstanding a stipulation in the deed that the mortgage was redeemable after a specified period could properly sell the charged property for discharging that mortgage even before expiry of that period. In such a case, no doubt there could possibly have been no demand from the creditor to pay the debt and in that sense there could also have been no pressure upon the estate. But can it be said that the circumstance in itself is conclusive on the question of necessity ?
The Bombay High Court in AIR 1931 Bom 157, was apparently inclined to the view
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