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2014 Supreme(P&H) 4

IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
The Hon’ble Mr. Justice K. Kannan
Regular Second Appeal No. 2434 of 1984 (O&M)
Smt. Sukhdevi...
v.
Smt. Ram Piari...
{Decided on 08/01/2014}

Advocates:
For the Appellant:Mr. K.S. Malik, Advocate.
For the Respondent:Mr. Hawa Singh Hooda, Senior Advocate with Mr.C.B. Goel, Advocate.

Headnote:Transfer of share in immovable property--Vested right in property cannot be lost by oral settlement or affirmed through unregistered compromise--Even if decree of court is passed on basis of such compromise.

       (A) Hindu Succession Act, 1956--Transfer of share in immovable property--Vested right in property cannot be lost by oral settlement or affirmed through unregistered compromise--Even if decree of court is passed on basis of such compromise--Transfer of Property Act, 1882.

       Invalidity of compromise to be tested not by separate suit but shall be adjudicated before the decree by objection; principle not applicable to declaratory action that makes decree unlawful or otherwise invalid. (Para 4)

       (B) Registration Act, 1908--Transfer of Share/right in immovable property--Father of plaintiff gave 1/4th share in his property during his lifetime to plaintiff--As per compromise plaintiff had to transfer her share to her mother--Court decree also obtained on basis of such compromise--Even then plaintiff can claim her share 1/4th in the property as she is not estoppel due such decree because mother had no pre-existing right in property such compromise deed was compulsorily registrable--Not done--Therefore, decree held to be collusive--Therefore plaintiff cannot lose her share through alleged compromise decree without registration or without any consideration--Contract Act, 1872--Transfer of Property Act, 1882.

        (C) Evidence Act, 1872, S.115--Estoppel--There could be no estoppel against statute, namely of registration, stamp and contract law. (Para 5)

       There can be no estoppel against statute--Equity, usually follows law. Therefore, that which is statutorily illegally and void cannot be enforced by resorting to the rule of estoppel--Such extension of rule may be against public policy.

       (D) Registration Act, 1908, S.17--Compulsory Registration--Exception--Decree or order of Court based on a compromise, that declared a pre-existing right and did not itself created a new right would not be compulsorily registrable--Any other view, would find a mischief of avoidance of stamp duty. (Para 8)

       (E) Transfer of Property Act, 1882--Family Settlement--Oral or unregistered document--Willful surrender/transfer of rights in immovable property of a sharer to another through oral or unregistered document shall not get approval from Court as they are collusive decrees to avoid stamp duty--Registration Act, 1908.

       (F) Transfer of Property Act, 1882--Estoppel--Transfer of Share--Even an oral agreement in the village that sharer would give up her share in favour of co-sharer and suffers a decree; it cannot constitute an estoppel against sharer--Because such decree was collusive to evade stamp duty--Evidence Act, 1872. (Para 9)

JUDGMENT

Mr. K. Kannan, J.:- I. The genesis of dispute

1. The plaintiff whose suit was dismissed by courts below is the appellant in this court. The suit is at the instance of the daughter against her mother and her sister. The suit had been filed for a declaration that a decree obtained in Civil Suit No.164 of 1979 titled Ram Piari Versus Sukh Devi and others was null and void, bogus, inoperative and not binding on the plaintiff. The property originally belonged to father Maru. Maru’s widow is Ram Piari-the 1st defendant. The 1st defendant had two daughters, who were the plaintiff and the 2nd defendant. It appears that civil suit had been filed by Ram Piari and her daughters suit against Maru when the latter admitted the plaintiffs in the said suit as entitled to 1/4th share. The Civil Suit No.551 of 1976 was with reference to 1/4th share each for the three plaintiffs of agricultural land in 173 kanals 14 marlas in certain specified khatauni numbers and killa numbers. The decree was obviously collusive and no defence was taken and allowed for the plaintiff’s 1/4th share. A subsequent suit filed in Civil Suit No.385 of 1977 had been at the instance of Ram Piari against her husband for the very same relief in respect of the very same subject matter that Ram Piari was entitled to 1/4th share. A subsequent suit has been filed on 02.09.1977 and again as per the statement of parties, Ram Piari alone had been granted the decree for 1/4th share. The 3rd suit has been filed in Civil Suit No.164 of 1979 by Ram Piari against both the daughters and they have admitted to the plaintiff’s claim and allowed for declaration that the mother Ram Piari was entitled to a ½ share. The validity of the decree in Civil Suit No. 164 of 1979 alone is in challenge and it is imperative that we examine the effect of the frame of the suit and the validity of the decree obtained under it.

II. The source of right for the plaintiff

2. The suit was for declaration to the effect that the plaintiff Ram Piari was the owner in possession of the agricultural land to the extent of ½ share which had been given to the defendants equally by Maru excluding the land sold by the plaintiff out of the total agricultural land of 173 kanals 14 marlas. The copy of the plaint has been filed as Ex.D3 and it reads that Maru was the owner in possession of the suit land in the heading of the plaint and he died about 2 to 3 months earlier. The averment in the plaint reads that Maru had allowed for 1/4th share to each of his daughters during his lifetime and had given the remaining half share to his widow. The plaint reads that after the lifetime of Maru, daughters demanded their share from the plaintiff in whose possession the whole of the estate of Maru had been held since the Month of January 1989. The plaint would record that there had been disputes between the parties and by virtue of the admission by the daughters, a family settlement had been entered into, under the terms of which, the defendants admitted that they would transfer their share in the suit land in the name of the plaintiff on an understanding that after the death of the plaintiff, they would get the land divided equally between them. The plaint further recites that there is one baby girl of 1 year of age with the plaintiff who was under the care and protection of the plaintiff and had to be married in future. The prayer in the suit was, therefore, that the plaintiff (in that suit) was entitled to a ½ share in all the properties measuring 173 kanals 14 marlas after excluding the property sold.

III. Plaintiff’s original entitlement to 1/4 th share cannot be denied either as a heir to father or as a beneficiary of earlier decree; compromise decree was itself an intrinsic admission of such fact

3. The way that three suits have come about make it clear that the suits were devices to get over the stamp law and registration formalities. If the father had allowed for 1/4th share each to be given to his daughters and a li




























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