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1998 Supreme(P&H) 1392

PUNJAB & HARYANA HIGH COURT
T.H.B.Chalapathi, J.
Shishpal
Versus
Vikram
Regular Second Appeal No. 3365 of 1998,
Decided On : NOVEMBER 12, 1998

An oral gift or relinquishment of the property is invalid under the Transfer of Property Act and the Registration Act. The admission of the claim by the defendant does not create any title, interest, or right in the property in favor of the plaintiffs. The consent of parties cannot override the statute. The Court has the discretion to pass a judgment on admission or consent, which is not a matter of right.

Headnote:

ADMISSION OF CLAIM - FAMILY SETTLEMENT - TRANSFER OF PROPERTY ACT, 1882 - SECTION 123 - REGISTRATION ACT, 1908 - SECTION 17 - CODE OF CIVIL PROCEDURE, 1908 - ORDER 12 RULE 6 - ORAL GIFT - ORAL RELINQUISHMENT - DISCRETION OF COURT - PUBLIC POLICY - STAMP ACT - TRANSFER OF PROPERTY ACT - REGISTRATION ACT - PUBLIC REVENUE - PUBLIC POLICY - CONSENT OF PARTIES - STATUTE - ADMISSION OR CONSENT - DISCRETION OF COURT - ORAL TRANSFER OF PROPERTY - INVALIDITY - ADMISSION OF CLAIM - VIOLATION OF LAW - PUBLIC EXCHEQUER - IMMORAL OR OPPOSED TO PUBLIC POLICY - DISMISSAL OF APPEAL.

Fact of the Case:

Plaintiffs filed a suit against their paternal uncle Gyani Ram for declaration of their title, alleging that he transferred the property to them under a Family Settlement. Gyani Ram admitted the claim in his written statement and got a statement recorded, but died before the passing of the decree. The legal representative of Gyani Ram wanted to file a separate written statement, but the Trial Court upheld the plaintiffs' objection that he could not take a different plea from the original defendant. The Trial Court dismissed the suit on the ground that there was no family settlement as the plaintiffs had no right, title, or interest in the property during Gyani Ram's lifetime. The plaintiffs' appeal was also dismissed.

Finding of the Court:

The Court held that the plaintiffs had no right, title, or interest in the property during Gyani Ram's lifetime, and therefore there could be no family settlement. An oral gift or relinquishment of the property would be invalid under the Transfer of Property Act and the Registration Act. The Court also held that the admission of the claim by Gyani Ram did not create any title, interest, or right in the property in favor of the plaintiffs. The Court further held that the consent of parties cannot override the statute and that the Court has the discretion to pass a judgment on admission or consent, which is not a matter of right. In this case, the claim of the plaintiffs violated the provisions of the Stamp Act, Registration Act, and Transfer of Property Act, and therefore the Court was not bound to pass a decree on the basis of the admission.

Issues: 1. Whether an oral gift or relinquishment of the property is valid under the Transfer of Property Act and the Registration Act? 2. Whether the admission of the claim by Gyani Ram created any title, interest, or right in the property in favor of the plaintiffs? 3. Whether the consent of parties can override the statute? 4. Whether the Court is bound to pass a judgment on admission or consent?

Ratio Decidendi: 1. An oral gift or relinquishment of the property is invalid under Section 123 of the Transfer of Property Act and Section 17 of the Registration Act. 2. The admission of the claim by Gyani Ram did not create any title, interest, or right in the property in favor of the plaintiffs, as it was not supported by a registered document. 3. The consent of parties cannot override the statute. 4. The Court has the discretion to pass a judgment on admission or consent, which is not a matter of right. In this case, the claim of the plaintiffs violated the provisions of the Stamp Act, Registration Act, and Transfer of Property Act, and therefore the Court was not bound to pass a decree on the basis of the admission.

Final Decision: The appeal was dismissed.

Judgment

T.H.B.Chalapathi, J.

1. Plaintiffs are the appellants. They filed the suit against their paternal uncle Gyani Ram for declaration of their title alleging that they were looking after him and about six months prior to the filing of the suit, Gyani Ram gave the property to them under a Family Settlement. In that suit, Gyani Ram appeared and filed a written statement acknowledging the transfer of the property in favour of the plaintiffs and also got a statement recorded. Thereafter he died before passing of the decree. The grand son of the said Gyani Ram (daughters son) was impleaded as his legal representative, when the legal representative wanted to file a separate written statement, it was objected to by the plaintiffs on the ground that the legal representative cannot take different plea from that of the original defendant, who died during the pendency of the suit. That objection was upheld by the Trial Court. Nevertheless the Trial Court dismissed the suit on the ground that the question of family settlement does not arise because the plaintiffs have no right, title or interest in the suit property during the life time of Gyani Ram. Aggrieved by the same the plaintiffs preferred an appeal unsuccessfully. Hence the Second Appeal by the plaintiffs.

2. It is contended by the learned counsel for the plaintiff-appellants that when the original defendant Gyani Ram admitted the claim of the plaintiffs and when the Court found that the legal representative of Gyani Ram cannot file a separate written statement taking pleas contrary to what had been taken by the original defendant, the suit of the plaintiff ought to have been decreed.

3. I am unable to agree with the contention of the learned counsel for the plaintiff-appellants. Admittedly, the suit property belonged to Gyani Ram. During his life time, the plaintiffs have no right in the suit property. There cannot be any Family Settlement. The family Settlement can be made among the members of the family or when there is a dispute among themselves. As held by the Supreme Court in Sahu Madho Das and Ors. v. Mukand Ram and Anr., A.I.R. 1955 S.C. 481 it is well settled that a family settlement is based on the assumption that there is an antecedent title of some sort in the parties and the agreement acknowledges and defines what that title is, each party relinquishing all claims to property other than that falling to his share and recognising the right of others as they had previously asserted it to the portions allotted to them respectively. Reference may be made to Maturi Pullaiah v. Maturi Narasimham and Ors., A.I.R. 1966 S.C. 1836 and Kale v. Dy. Director of Consolidation, A.I.R. 1976 S.C. 807. Here there is no dispute in regard to the property. Admittedly it belonged to Gyani Ram exclusively. When Gyani Ram during his life time wanted to give the entire property of his to the plaintiffs, such transfer can only be effected by a gift or Settlement Deed. Under Section 123 of the Transfer of the Property Act, a gift can be made only by a registered document attested by two witnesses. It is not the case of the plaintiffs that there can be an oral gift in the State of Punjab and the provisions of Section 123 of the Transfer of Property Act are not applicable. It has been held in Malkiat Singh v. Gram Panchayat, A.I.R. 1974 P&H 28 that an oral gift is not saved from requirement of validity under the Transfer of Property Act. Under Section 17 of the Registration Act, the right in the immovable property can only be a relinquished or transferred by the original owner by the registered document. Admittedly, there is no regd. document in the instant case. The plaintiffs cannot, therefore, rely upon the alleged admission of Gyani Ram that he transferred his right in favour of the plaintiffs. Since there cannot be any oral transfer of property worth more than Rs. 100/such an admission is not valid in law and it does not create any title, interest or right in the immovable property in fav








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