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2024 Supreme(All) 2121

ALLAHABAD HIGH COURT
KSHITIJ SHAILENDRA, J.
Prem Kumar and Others - Appellants
Versus
Subhash Chand and Others - Respondents
Second Appeal No. 512 of 2000
Decided On : 11-12-2024

Advocates Appeared:
For the Appellants : K.P. Upadhyay, Amitabh Agarwal, Ayush Jain, B.N. Agrawal, K.S. Chauhan, Madan Lal Rai, Manish Kumar Nigam, Munna Pandey, Murlidhar, N.C.Tripathi, P.K. Jain, P.K.Srivastava, R.P. Singh, Rahul Sahai, Ram Prakash Srivastava, S.K. Srivastava, Sanjay Agrawal, Srijan Mehrotra.
For the Respondents: Manish Goyal, Archit Mehrotra, Devansh Misra, M.K. Sharma, Nalin Kumar Sharma, R.P. Singh, S.C., S.K. Singh and Saumitra Dwivedi.

The suit for cancellation of a sale-deed was barred under Section 49 of the U.P. Consolidation of Holdings Act, as plaintiffs failed to prove the existence of a Joint Hindu Family or that the property was purchased with HUF funds.

Headnote:(A) Uttar Pradesh Consolidation of Holdings Act, 1953 - Section 49 - Specific Relief Act, 1963 - Section 34 - Cancellation of sale-deed - Plaintiffs claimed cancellation of a sale-deed executed by a power of attorney holder of HUF property, alleging mala fides and collusion - Trial Court decreed suit for 5/6th share, but appellate court confirmed the decree in toto - Second appeal raised substantial questions regarding the maintainability of the suit under Section 49 of the U.P.C.H. Act and the bar under Section 34 of the S.R. Act - Court found that the suit was barred under Section 49 as the consolidation operations were ongoing at the time of the sale-deed execution, and plaintiffs failed to prove the existence of a Joint Hindu Family or that the property was purchased with HUF funds. (Paras 1, 6, 49)

(B) Joint Hindu Family - Presumption of jointness - The court emphasized that mere existence of a Joint Hindu Family does not automatically imply that all property is joint; the burden of proof lies on the party asserting joint ownership. (Paras 40-42)

(C) Evidence - The court ruled that oral statements cannot replace statutory requirements for proving the closure of consolidation operations, and the plaintiffs failed to provide necessary documentary evidence. (Paras 24-27)

Findings of Court:
The suit was barred by Section 49 of the U.P.C.H. Act, not barred by Section 34 of the S.R. Act, and plaintiffs did not prove their case regarding HUF.

Issues: The main issues were whether the suit was barred under Section 49 of the U.P.C.H. Act and whether the plaintiffs proved the existence of a Joint Hindu Family.

Ratio Decidendi: The court held that the plaintiffs failed to establish the existence of a Joint Hindu Family or that the property was purchased with HUF funds, and thus the suit was barred under Section 49.

Result: The second appeal was allowed, and the impugned judgments were set aside.

JUDGMENT :

(Kshitij Shailendra, J.)

The Appeal

This is defendants' second appeal arising out of concurrent judgments passed by the Civil Court and the first appellate Court whereby Original Suit No. 625 of 1971 (Shri Subhash Chand and others v. Shri Jetha Nand and others) claiming a decree for cancellation of a registered sale-deed dated 23.8.1968 (hereinafter referred to as 'the sale-deed') has been decreed and the Civil Appeal No. 641 of 1979 (Shri Shiv Charan Das and others v. Shri Subhash Chand and others) arising therefrom has been dismissed.

BRIEF FACTS AND PLAINT CASE

2. One Jhanda Ram (in short 'JR') had four sons namely Ram Chandra (non-party), Pyare Lal (defendant No. 3) (in short 'PL'), Khanda Ram (non-party) and Jetha Nand (in short 'JN') (defendant No. 1). JN was married to Smt. Dhanwanti Devi (in short 'DD') (defendant No. 2). JR died in the year 1959, PL died in the year 1973 and JN died in the year 1993. PL had six sons, out of whom, reference of only three is relevant. These are Prem Kumar (Defendant No. 4), Navin Kumar (defendant No. 5) and Shyam Kumar. JN (since deceased) is succeeded by his five sons Subhash Chandra and four others who are respondent Nos. 1 to 5 in the instant second appeal whereas wife and two sons of late PL are appellants herein.

3. The suit was instituted stating that plaintiffs were living as members of Joint Hindu Family (in short 'HUF') with defendant Nos. 1 and 2 and JR was Karta of the HUF; the said HUF being in existence since 1947. JR, the grandfather of plaintiffs, purchased an agricultural land in district Meerut from HUF funds in the name of defendant No. 1-JN in the year 1953 and also purchased some landed property separately in the names of his other sons (non-parties) in the same year. After the death of JR, defendant No. 1-JN who was subsequently transposed as plaintiff No. 6 pursuant to various proceedings referred to hereinlater, managed the land for a couple of years as Karta of HUF. JN had to go out of Meerut for business purposes in 1963 and, while his sons were minors, JN entrusted management of the said HUF in the hands of defendant No. 3-PL. The village and land in question came under consolidation operations in the year 1966, a separate chak was allotted in the name of JN and PL continued to supervise cultivation activities but withheld rabi crops of 1378 Fasli and, on asking, he denied plaintiffs' entitlement to the crops stating that the same belonged to defendants No. 4 and 5. The plaintiffs came to know in May 1971 the that HUF land had been transferred by PL to defendant Nos. 4 and 5 on 23.8.1968 at the strength of a power of attorney executed by JN. Assailing the sale-deed, it was alleged that JN had no right to execute the power of attorney dated 19.6.1963 in favour of PL in respect of HUF property, the sale was based upon mala fides, collusion, for an inadequate consideration and was a sham transaction. Accordingly, a decree for cancellation of the sale-deed was claimed.

DEFENCE

4. Defendants No. 1 and 2 (JN and DD), in their joint written statement, admitted execution of the sale-deed as well as power of attorney. They denied the allegations that JN had no right to execute power of attorney, however, they pleaded existence of HUF and JR being its Karta since partition of India and stated that HUF had a joint fund and the property had been purchased in the year 1953 by JN, who executed a power of attorney in favour of his elder brother PL for the purposes of looking after the litigation and cultivation but PL broke the confidence by executing sale-deed in favour of his sons. Seller and purchaser, i.e PL and his son Navin Kumar, filed joint written statement denying constitution of a Joint Hindu Family stating that JR was a person of ordinary means and status; his sons, after attaining majority, separated themselves and used to earn their own livelihood; PL was separated in 1927; he plied a taxi for sometime and, thereafter, got employment in different firms; he t

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