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2020 Supreme(Mad) 520

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. Sathish Kumar, J.
C. Ananda Acharyulu (Deceased) & Another – Plaintiffs
Versus
C. Sridhar Prasad & Others – Defendants
Civil Suit No. 843 of 2009
Decided On : 22-07-2020

Advocates:
Advocate Appeared:
For the Plaintiff :G.RM. Palaniappan, Advocate.
For the Defendant :V. Manohar, Advocate.

The main legal point established in the judgment is the requirement for valid cancellation of settlement deeds and the burden of proof in establishing joint family property under the Transfer of Property Act.

Headnote:

Partition - Property Dispute - Settlement Deed - Transfer of Property Act - Mesne Profits - Preliminary Decree - Counter Claim - Mesne Profits - [Partition] - [Property Dispute] - [Transfer of Property Act] - [Section 126] - The court discussed the validity of settlement deeds, cancellation deeds, and the ownership of various properties. It highlighted the legal principles related to unilateral cancellation of settlement deeds and the burden of proof in establishing joint family property. The court's decision was influenced by the interpretation of the Transfer of Property Act and the principles related to property ownership and transfer.

Fact of the Case:

The suit was filed for partition and passing of preliminary decree allotting 1/3 share in the suit properties to the plaintiff and the defendants. The dispute arose from the ownership of various properties and the cancellation of settlement deeds.

Finding of the Court:

The court found that the cancellation of settlement deeds was not valid in the eye of the law and that the properties were amenable to partition. The counter claim for reimbursement of a loan amount was dismissed due to lack of evidence.

Issues: The issues included the entitlement to share in specific properties, validity of cancellation deeds, individual ownership of properties, reimbursement of loan amount, and entitlement to mesne profits.

Ratio Decidendi: The court's decision was based on the principles related to the validity of settlement deeds, burden of proof in establishing joint family property, and the requirements for valid cancellation of property transfer. The court also considered the lack of evidence in the counter claim for reimbursement of a loan amount.

Final Decision: The court passed a preliminary decree for partitioning the suit properties and dismissed the counter claim for recovery of the loan amount. The parties were relegated to a separate inquiry for mesne profits at the time of final decree proceedings.

JUDGMENT :

(Prayer: To pass a preliminary decree for partitioning 1/3rd share in the properties more fully described in the schedule hereunder between the plaintiff and the defendants 1 and 2.

To pass a final decree to partition the properties by metes bounds of the properties more fully described in the schedule hereunder between the 2nd plaintiff and the defendants 1 and 2.

To pay the costs of this suit.)

1. This suit has been filed for partition and passing of preliminary decree allotting 1/3 share in the suit properties to the plaintiff and the defendants 1 and 2.

2. The brief facts leading to the filing of the suit is as follows :

The first and second defendants are brothers of second plaintiff and sons of the first plaintiff. The third defendant is the brother-in-law of the second defendant. The second plaintiff and the defendants 1 and 2 along with their father were in the goldsmith business. After the first plaintiff retired from the business due to his old age, he has handed over the entire business to his sons, the second plaintiff and the defendants 1 and 2. The second defendant was handling family business and its finance. Some properties were purchased in the name of the second plaintiff and also in the name of the defendants 1 and 2. The second defendant was incharge of the family financial activities including monies of his mother. After the death of their mother, he has not brought the finance handled by his mother to the family fund and siphoned off the same. The first item of the property came to the first defendant in a partition between him and his brother. Originally, the father of the parties has executed a settlement deed in favour of his sons. Thereafter, he has cancelled the settlement deed and executed a settlement deed in favour of the second plaintiff. The second item of the property has been purchased in the name of the defendants 1 and 2 from and out of the joint family business. Similarly, the third item of the property was also purchased in the name of the second defendant out of the funds generated from the joint family business. The fourth item of the property has been purchased from the joint family business. Though it stands in the name of the second defendant, the same was handed over to the first defendant for promotion of flats. Third item of the property has also been purchased out of the joint family business. The second defendant now stage managed to show as if his brother-in-law has contributed money for purchase of the third item of the property. The first item of the property being a mansion was managed by the plaintiff and the second defendant. The second defendant tried to prevent, the second plaintiff to enter into the property. As there was a dispute, plaintiff issued notice dated 17.09.2009 to the defendants 1to 3 for partition. Hence, the suit.

3. The first and third defendants have not contested the matter. Only the second defendant filed a written statement admitting the relationship between the parties, it is the contention of the second defendant that the plaintiff and the first and second defendants are co-owners and not otherwise. It is his contention that except two properties acquired in the joint ownership along with the second plaintiff, the other properties cannot be partitioned. It is the contention of the second defendant that only Item Nos.1 and 2 alone can be partitioned. It is his further contention that two of their sisters have also not been impleaded for partition. It is further contended that with regard to the first item of the property, there is no joint family business as alleged by the plaintiff. The jewelry business was carried on by the first plaintiff and after the retirement of their father, the same is also apportioned and given to each sons. There was no joint business as contended by the plaintiff and there is only a partnership agreement entered

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