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2013 Supreme(P&H) 889

IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
The Hon’ble Mr. Justice K. Kannan
Regular Second Appeal No.3516 of 1985 (O&M)
Girdwari & Ors.
v.
Reshmi (since deceased, through her LRs) & Anr.
{Decided on 10/10/2013}

Advocates:
For the Appellants 1, 6 and 7:Mr. Jasminder Singh Thind, Advocate.
For the Appellants 2 to 5:Mr. Ravi Sodhi, Advocate.
For the Respondents:Mr. R.S. Mittal, Senior Advocate with Mr. Abhimanyu, Advocate, and Mr. Chander Shekhar Singh, Advocate.

Headnote:Registration--A compromise decree that acknowledges a right to the party, who did not previously have any pre-existing interest, cannot secure a right without registration of compromise.

       (A) Registration Act, 1908, S.17--Compulsory Registration--Transfer of interest in property--If the grandmother had allowed for a transfer of interest in the property, then if the persons in whose name the transfer was made already had a subsisting interest, a decree per se would operate to acknowledge such title--If the grandmother was the absolute owner and she was creating a transfer of interest on an alleged acknowledgement that she had recognized her grand children to be owners through family settlement, then such settlement which creates an interest for the first time and would require to be registered--Transfer of Property Act, 1882. (Para 5)

       (B) Registration Act, 1908, S.17--Compulsory Registration--A compromise decree that acknowledges a right to the party, who did not previously have any pre-existing interest, cannot secure a right without registration of compromise. (Para 8)

       (C) Registration Act, 1908, S.17--Compulsory Registration--Family Partition--Held;

       (i) There is no prohibition under law for members of a family to partition the property orally--The partition does not result in transfer within the definition of ‘transfer’ under the Transfer of Property Act and it is specifically excluded--Consequently, an oral adjustment of rights through partition does not require to be written at all.

       (ii) However, If a partition is brought about through an instrument which contains the bargain between parties, it is required to be written on appropriate stamp papers and duly registered--If partition, on the other hand, is oral and a list is prepared as a fait accompli, then such an instrument, which is in the nature of an acknowledgment of an oral partition, does not require registration. (Para 9)

       

JUDGMENT

Mr. K. Kannan, J. (Oral):- The following substantial questions of law arise for consideration in the second appeal:-

i) Whether the plaintiffs had any subsisting right to the property during the lifetime of the mother to institute the suit and question the decree that was allowed between the mother and her grandchildren through another daughter?

ii) Whether the decree allowing for the properties to be taken by the grandchildren through one of the daughters was a family settlement, as pleaded and hence, did not require to be registered?

iii) Whether the grandchildren through the daughter have any pre-existing right that could allow for devolution even without registration of consent decree suffered by the mother?

2. Before I begin my discourse on the points raised, I must observe that it had been a long time practice of this Court to admit second appeal without framing any substantial question of law. Later, when the law was such a procedure was mandatory, it has been supplanted by a practice of lawyers appearing for appellants to frame the substantial questions in a separate memorandum and the Court placing it on record. We shall remind ourselves that it is again a wrong procedure. It is the Court’s duty to elicit the questions of law, formulate them and place them on record and direct the attention of the counsel to address arguments on the formulated questions. This preface is to govern our own judicial procedure and it is expected that the bar assists the Court in framing substantial questions of law and apprise itself about the formulations before the arguments are addressed.

3. The second appeal is at the instance of the defendants against whom there was a suit filed for a declaration that the decree allowing for the properties to be in the ownership and possession of the grandchildren of Dhapan (mother of plaintiffs) was brought about by fraud and not binding. There was a prayer for permanent injunction restraining the defendants from interfering with the possession of the plaintiffs’ 2/3rd share on a plea made by the plaintiffs that they were the owners of the property to a 2/3rd share by a gift by their mother at the time of their respective marriages. The defendants, who were the mother, sister and sister’s children of the plaintiffs, entered a contest denying that the plaintiffs had any locus standi to file the present suit and that there had been no oral gift in favour of the plaintiffs by the mother-6th defendant. It was also contended that the suit properties had been the subject of a decree in Case No.438 of 1979 in favour of the grandchildren described as defendants 2 to 5.

4. The suit had gone for a trial on the contentions raised by the parties including an issue of whether the decree was null and void and liable to be set aside in the manner contended by the plaintiffs. The maintainability of the suit in the present form was also taken as an issue for consideration. The trial Court found that the plea that the property had been settled in their favour was not established and the Court also observed with reference to the khasra girdwaris that they were in the names of the defendants 2 to 5 and 7 and the plaintiffs could have no concern whatsoever with it. However, taking up the issue of locus standi of the plaintiffs, the Court observed that the defendants had not shown as to how the plaintiffs did not have a locus standi. The trial Court predominantly went on the admission made by the mother in the written statement admitting to the right and title of the grandchildren and dismissed the suit. In appeal filed, through a judgment which is as cryptic and laconic, the appellate Court relied on a judgment of the Supreme Court in Kuppuswami Chettiar Versus A.S.P.A. Arumugam Chettiar and another-AIR 1967 Supreme Court 1395 that a decree passed suppressing an important fact would be vitiated and that the material factor of existence of two daughters not having been set forth in the written statement filed by


















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