PUNJAB & HARYANA HIGH COURT
S.S.Sandhawalia and M.R.Sharma JJ.
Bhagwan Dass
Versus
Bhishan Chand
Civil Regular Second Appeal No. 1580 of 1965,
Decided On : JULY 24, 1972
HINDU LAW - ALIENATION BY FATHER - MORTGAGE - SUIT BY SONS FOR DECLARATION - NECESSITY - BURDEN OF PROOF - LIMITATION.
Fact of the Case:
Brij Lal, a Hindu father, mortgaged a house, which was part of the coparcenary property, with the appellant for a sum of Rs. 10,000/-. The respondents, Brij Lal's sons, brought a suit for a declaration that the mortgage was not binding on them, as it was made without any valid necessity. The trial court dismissed the suit, holding that the mortgage was for legal necessity and that the suit was barred by limitation. The lower appellate court reversed the trial court's decision, holding that the mortgage was not for legal necessity and that the suit was within time.
Finding of the Court:
The High Court held that the respondents had the burden of proving that the mortgage was not for legal necessity, and that they had failed to discharge this burden. The Court also held that the suit was barred by limitation, as the cause of action arose on the date of the mortgage, and the suit was filed more than six years later.
Issues: 1. Whether the respondents had the burden of proving that the mortgage was not for legal necessity? 2. Whether the suit was barred by limitation?
Ratio Decidendi: 1. The Court held that the respondents had the burden of proving that the mortgage was not for legal necessity, as the mortgage was executed by the father, who was the manager of the joint family, and the presumption was that he acted for the benefit of the family. 2. The Court held that the suit was barred by limitation, as the cause of action arose on the date of the mortgage, and the suit was filed more than six years later. The Court rejected the respondents' argument that Article 126 of the Limitation Act applied, as that Article only applies to cases where the alienee from a Hindu father takes actual possession of the property.
Final Decision: The High Court allowed the appeal, set aside the judgment of the lower appellate court, and restored the judgment of the trial court.
M.R.Sharma, J.
1. The following pedigree table will be useful for understanding the facts arising out of this second appeal:-
- JANGIRI LAL ____________________|_____________________ | | Han Rai Brij Lal (defendant No. 2) |___________________________________________|_____________________________________________ | | | | | | | Bhisham Basti Ram Ved Prakash Shivsharan Ram Gopal Mohan Lal Sudh Chand Dass (Def.No.3) Parkash (Def.No.2)
2 I have not indicated to the names of two daughters and wife of Brij Lal, who also joined as plaintiffs in the suit filed before the learned trial Court. It was held that they had no locus standi to bring this suit and this matter was not challenged in this appeal. The facts giving rise to the litigation may briefly be stated as follows.
3. Brij Lal now a respondent and defendant No. 2 before the learned trial Court, mortgaged a house mentioned in the body of the plaint with the appellant for a sum of Rs. 10,000/- vide registered deed dated February 21, 1947. The respondents brought the suit in the learned trial Court on the ground that his house formed part of the coparcenary property and the mortgage effected by Brij Lal, their father, being without any valid necessity, was not binding upon them. Since they were in possession of the house, they prayed that a declaration in that behalf may be granted in their favour. Brij Lal had been declared insolvent and the Insolvency Court vide its order dated February 18, 1960, directed that the house be sold subject to the charge of the appellant and the proceeds thereof be placed at the disposal of the receiver for being utilized in accordance with law. The appellant in his written statement denied that the house was a joint Hindu family property qua the plaintiff-respondents and further stated that the mortgage was for legal necessity. He also submitted that the suit was barred by limitation and the two daughters of Brij Lal, namely, Tara Wati and Shimla Devi, and Bhagwanti wife of Brij Lal, had no locus standi bring in the present suit. The learned trial Court raised two preliminary issues regarding its jurisdiction to try the suit and also whether the plaint disclosed any cause of action. These issues were decided against the respondents vide order dated February 26, 1962, passed by the learned trial Court. On merits the parties went on trial on the following on the following issues:-
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(1) Whether the receiver is necessary party to the suit?
(2) What is the effect of the orders dated the 23rd November, 1955, and 18th February, 1960, passed by Insolvency Court on this case?
(3) Whether the plaint was properly valued for purposes of court-fee?
(4) Whether the suit in the present from is maintainable?
(5) Whether the suit is collusive ?
(6) Whether plaintiffs have no locus standi to sue?
(7) Whether the property in suit is joint Hindu family property)
(8) Whether the mortgage in question was for legal necessity?
(9) Whether the suit is barred by time?
(10) Relief.
4. The learned trial Court held that the official receiver was not a necessary party and the orders dated November 23, 1955, and February 18, 1960, did not have the effect and calling upon the plaintiffs to prove that the mortgage debt was immoral in nature. The plaint was held to properly valued and on the question to locus standi it was held that the respondents Nos. 1 to 5 had a right to file the suit and their two sisters and mother were incompetent to do so. The house was held to belong to the joint Hindu family and the mortgage in dispute, according to the learned trial Court, was not proved to have been made for that the suit was collusive and also barred by limitation. As a result of these findings, the learned trial Court dismissed the suit filed by the respondents.
5. In appeal, the learned lower appellate Court came to the conclusion that the suit was not collusive and on the question of limitation it held that the suit was within time. The issue regarding legal necessity was al
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