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2013 Supreme(MP) 1054

MADHYA PRADESH HIGH COURT AT JABALBUR BENCH
Alok Aradhe, Alok Aradhe, JJ.
Malti Bai - Appellant
Versus
Khilona Bahu (since deceased) through L.Rs. Luxminarayan Soni and others - Respondent
S.A. No. 65 of 2008
Decided On : 25-07-2013

Advocates Appeared:
For the appellant: Ashish Pathak
For the respondents: Ravish Agrawal, Senior Counsel and Abhishek Singh

The main legal point established is that unstamped family settlement deeds recognizing antecedent title do not require registration and the law respects possession even without title to support it.

Headnote:

Family Settlement - Property Dispute - Indian Stamp Act, 1899, Section 2(24), Article 5 - The court discussed the requirement of registration for family settlement deeds and the legal principles related to possession and title of property.

Fact of the Case:

The plaintiff filed a suit claiming ownership and possession of certain lands based on a family settlement deed executed by the deceased 'Karta' of the joint family. The trial court decreed the suit, but the lower appellate court set aside the judgment and dismissed the suit.

Finding of the Court:

The court found that the family settlement deed, though unstamped and unregistered, recognized the antecedent title and did not create or extinguish any rights in immovable property. The plaintiff's possession of the land was upheld, and the defendants were restrained from dispossessing the plaintiff.

Issues: The issues revolved around the validity of the family settlement deed, the requirement of registration, and the possession and ownership of the disputed lands.

Ratio Decidendi: The court held that unstamped family settlement deeds recognizing antecedent title do not require registration. It also emphasized the importance of respecting possession even without title to support it.

Final Decision: The judgment and decree of the lower appellate court were set aside, and the plaintiff's claim for declaration of title was dismissed, but the defendants were restrained from dispossessing the plaintiff except in accordance with the law.

JUDGMENT

Alok Aradhe, J.:-

1. This appeal by the plaintiff was admitted by a Bench of this Court on the following substantial questions of law: -

“(i) Whether the finding of learned first Appellate Court holding that the family settlement has no sanctity in the eye of law since it is an unregistered document, runs contrary to the dictum of Supreme Court Tek Bahadur Bhujil v. Debi Singh Bhujil and others, AIR 1966 SC 292 ?

(ii) What is the impact of admission of defendant No. 1-Smt. Khilona Bahu in her testimony that Ratanlal is the Karta of the family?

(iii) Whether in view of admission of defendant No. 1-Smt. Khilona Bahu that Ratanlal was the Karta of the family, the judgment of learned first Appellate Court holding that Ratanlal was not Karta, is vitiated by ignoring the admission of defendant No. 1-Smt.Khilona Bahu?

(iv) Whether Ratan being Karta of HUF was having authority to settle the suit property in the name of plaintiff?”

2. Thereafter, following additional substantial questions of law were framed:

“(v) Whether the lower Appellate Court committed an error of law in reversing the findings with regard to possession of the plaintiff and in consequently setting aside the decree for injunction, without meeting the reasoning of the trial Court with regard to finding of possession of the plaintiff over the suit land ?

(vi) Whether the family settlement can be read in evidence, as the same is an unstamped document ?”

3. In order to appreciate the relationship between the parties, genealogical tree as mention in the plaint is reproduced: -

Pooranlal

Ratanlal (Died in 1992) = Smt Khilona Bahu Hargovind Babulal Halkuram

(Defendant No. 1) (widow) Smt. Kusumrani (Dead) = Smt. Siyadulari

Laxmi Narayan Umashanker Soni Sharad Chand = Smt. Malti Bai (wife) (Plaintiff) Makhanlal Devraj (Defendant No. 2)

4. The plaintiff filed a suit, inter alia, on the ground that plaintiff, defendant No. 1, 2 and 4 are the members of joint family. The suit lands admeasuring 0.405 and 0.404 hectares of Khasra No. 68/2 and 68/3 were purchased 'Benami' vide registered sale deed dated 20-6-1969 from the funds of joint family. However, in the revenue records the name of defendant No. 1 alone was recorded. The plaintiff from her husband's income and from her 'stridhan' purchased a land in village Raheli which was situated adjacent to the land bearing khasra Nos. 69/2 and 69/4 i.e. the land belonging to joint family of which Ratanlal was the 'Karta'. The plaintiff in order to have one consolidated plot appointed Ratanlal, namely, husband of defendant No. 1, to be her attorney and authorized him to sell her land. In pursuance of aforesaid authority Ratanlal sold the land admeasuring 0.607 hectares of Khasra No. 48/6 for a consideration of Rs. 7000/- vide registered sale deed dated 7-4-1985 (Exhibit-P-1) to one Bhagawndas. However, the sale consideration was not paid to plaintiff.

5. Thereafter Ratanlal executed a family settlement deed dated 6-1-1986 (Exhibit-P-2) under which the plaintiff was placed in possession of land bearing Khasra No. 68/2 and 68/3 admeasuring 0.405 and 0.404 hectares respectively and he further authorized the defendants No. 1 and defendant No. 4 to execute the sale deed in favour of the plaintiff in respect of the land bearing Khasra No. 69/2 and 69/4. In pursuance of the aforesaid family settlement deed the defendants No. 1 and 4 executed registered sale deeds dated 6-7-1987 (Exhibits-P-3 and P-4) for a consideration of Rs. 6000/- in respect of the land comprised in Khasra Nos. 69/2 and 69/4 in favour of the plaintiff. However, in violation of the terms and conditions of the family settlement the defendant No. 1 got the name of defendant No. 2 mutated in the revenue records in respect of the suit lands. The defendants threatened the plaintiff with dispossession. Thereupon the plaintiff filed the suit seeking relief of declaration that she is the owner and in possession of land bearing Khasra No. 68/2 and 68/3 admeasuring 0.405 and 0.404 hectare















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