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1956 Supreme(P&H) 53

PUNJAB & HARYANA HIGH COURT
Khosla, J.
Kishan Chand
Versus
Rakesh Kumar
Second Appeal No. 413 of 1954,
Decided On : MAY 1, 1956

A father can bind his sons by effecting a mortgage of coparcenary property only if a decree has been obtained on the mortgage.

Headnote:

HINDU LAW - ALIENATION - MORTGAGE - FATHER'S POWER TO BIND SONS - DISTINCTION BETWEEN CASES WHERE MORTGAGEE HAS OBTAINED DECREE AND CASES WHERE NO DECREE HAS BEEN OBTAINED - FATHER CAN BIND SONS BY MORTGAGE ONLY IF DECREE OBTAINED ON MORTGAGE.

Fact of the Case:

The plaintiffs, minor sons of Balwant Rai, challenged four mortgages effected by their father on the ground that they were without consideration and necessity. The trial court found that the mortgages were for consideration and necessity and therefore binding upon the sons. The lower appellate court modified the order of the trial court and held that the first mortgage was good to the extent of Rs. 429/- only and the second mortgage was good to the extent of Rs. 275/-.

Finding of the Court:

The court held that a father can bind his sons by effecting a mortgage of coparcenary property only if a decree has been obtained on the mortgage. In cases where no decree has been obtained, the sons can challenge the alienation if there was no necessity for it.

Issues: Whether a father can legitimately bind his sons by effecting a mortgage of coparcenary property.

Ratio Decidendi: The court interpreted the dictum of the Privy Council in Brij Narain Rai v. Mangla Prasad, AIR 1924 PC 50 (A), and held that proposition (2) of the dictum, which states that a father can bind his sons by incurring debt, refers to cases where a decree has been obtained on the debt and not to cases where the sons merely seek to challenge an alienation.

Final Decision: The court dismissed both the appeal and the cross-objections, but made no order as to costs.

Judgment

Khosla, J.

1. This second appeal arises out of a suit by the minor sons of Balwant Rai to challenge four mortgages effected by him on the ground that the mortgages were without consideration and necessity and therefore not binding upon them. All the mortgages were in respect of one house and the transactions were as follows:

(1) a mortgage for Rs. 2,000/- effected on 14-3-1943 in favour of Kishan Chand appellant. The document is exhibit D. 4;

(2) a mortgage for Rs. 4,000/- effected in favour of Madu Sudan Lal, father of Niranjan Parshad defendant No. 3, on 13-5-1643. By means of this mortgage the previous mortgage in favour of Kishan Chand was paid off. Niranjan Parshad sold his rights to Om Prakash defendant No. 6. The original mortgage deed is Exhibit D. 8;

(3) a mortgage for Rs. l.000/- effected on-21-7-1943 in favour of Niranjan Prashad defendant No. 3. The mortgage deed is Exhibit D. 9. Niranjan Parshad brought a suit on the basis of this mortgage and obtained a decree. In execution of this decree the house was sold by Ramji Das defendant No. .5 to whom the decree was assigned; and

(4) a mortgage for Rs. 12,000/- effected on 22-10-1944 in favour of Daulat Ram defendant No. 4. By means of this mortgage the previous mortgages (2) and (3) were paid off and an additional sum of Rs. 7,000/- is alleged to have been advanced.

2. The trial Court found that apart from the previous debt the fourth mortgage was without consideration. This matter is not now in dispute and no appeal against the decision of the trial Court was filed. With regard to the third mortgage the trial Court held that since a decree had been obtained by the mortgage and the debt was not immoral, the mortgage was good and binding upon the sons. This matter is also no longer in dispute, nor was it challenged in the lower appellate Court. The dispute relates therefore to the first and second mortgages only.

The trial Court found that the mortgages were for consideration and necessity and therefore binding upon the sons, it took, the view that the debt had been incurred for a joint family business. The lower appellate Court modified the order of the trial Court and held that the first mortgage was good to the extent of Rs. 429/- only and the second mortgage was good to the extent of Rs. 275/-. The lower appellate Court found that the business was not an old business and since there was no evidence of when the business was commenced, it must be treated as a new business.

The defendants have come up in appeal to this Court and it has been urged on their behalf by Mr, Nathu Lal Wadehra that these two mortgages are binding upon the sons. The sons have filed cross-objections in which it is contended that the mortgages should be held to be entirely without necessity.

3. The decision of this matter rests on the interpretation of the dictum of their Lordships of the Privy Council in Brij Narain Rai v. Mangla Pra-sad, AIR 1924 PC 50 (A). Their Lordships were considering the principles of Hindu Law under which alienations effected by a member of a joint Hindu family may be challenged and a debt held to be a moral or immoral. Their Lordships laid down five propositions which they deduced from a number of authorities. The second proposition was in the following terms:

"(2) If he is the father and the reversioners are the sons he may by Incurring debt, so long as it is not for an immoral purpose, lay the estate upon to be taken in execution proceeding upon a decree for payment of that debt".

It is admitted that in the present case the debt was not immoral. The question, however, is whether a father can legitimately bind his sons by effecting a mortgage of coparcenary property. Mr. Wadehra contends that the debt mentioned in proposition (2) quoted above includes a secured,debt, and therefore where & father effects a mortgage of co-parcenavy property and the money which he raises is not raised for an immoral purpose, then the mortgage is binding upon the sons.

4. It seems












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