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2023 Supreme(Online)(Bom) 726

HIGH COURT OF BOMBAY
M. S. SONAK, J
Mrs. Terezinha Martins David – Appellant
Versus
Mr. Miguel Guarda Rosario Martins alias Michael Rosario Martins – Respondent
SECOND APPEAL NO. 89 OF 2005



Advocates:
For the Appellants/Petitioners: Mr C.A. Coutinho, Mr Ivan Santimano
For the Respondents: Mr A.F. Diniz, Mr Ryan Menezes, Ms S. Alvares

Transfer of property by co-owners is invalid without consent from all heirs, reaffirming the legal protections enshrined in the applicable Civil Code, which are applicable in this jurisdiction.

Headnote:(A) Portuguese Civil Code, 1867 - Articles 10, 1565, 2177 and 2184 - Validity of Transfer Deed - Transfer of property executed by some heirs without consent of other co-heirs declared null and void - The Appellant's right as a co-owner upheld based on statutory provisions prohibiting such transfer without consent. (Paras 62, 66, 70, 74, 88)

(B) Limitation - The Appellant’s case on knowledge of the Transfer Deed established, overriding claim of limitation against the suit. (Paras 36, 41, 51)

(C) Consent Decree - Appellant, not party to decree, not bound by it. (Paras 58, 59, 62)

Facts of the case:
The Appellant sought to declare the Transfer Deed dated 8/9/1990 as null, alleging it was executed without her consent by co-heirs, constituting a breach of her rights as a legal heir under the Civil Code.

Findings of Court:
The Transfer Deed was found null and void for lack of consent from all heirs, and the Appellant's rights as co-owner were upheld.

Issues: Whether the Transfer Deed was valid in light of Articles 1565 and 2177; knowledge of the deed and its effect on limitation; duty to challenge the consent decree.

Ratio Decidendi: The court determined that the Transfer Deed contravened the inhibitions set forth in the Civil Code regarding transfers without co-owners' consent and that the Appellant's claims were valid due to her lack of involvement in prior proceedings.

Result: Appeal allowed; Transfer Deed annulled and suit decreed in favor of the Appellant.

Table of Content
1. court outlines parties involved in the appeal. (Para 1 , 4)
2. substantial questions of law formulated. (Para 2 , 3)
3. appellant's claims about ownership and transfer of property. (Para 5 , 28)
4. defendants' contention regarding partnership and bar of limitation. (Para 30 , 31 , 32)
5. court's duty to assess factual knowledge of the plaintiff. (Para 38 , 39 , 40)
6. legal prohibition on transfers as per article 1565. (Para 64 , 67)
7. arguments rejected regarding oral partition and family arrangement. (Para 79 , 82)
8. final order of the court regarding the appeal. (Para 89 , 90)

JUDGMENT :

1. Heard the learned Counsel for the parties.

2. This Appeal was admitted on 18th June 2008 on the following substantial questions of law :

(A) Whether the Deed of Transfer dated 8-9-1990 is null and void as it has been executed contrary to the provisions of Article 1565 r/w Article 10 of the Civil Code, 1867?

(B) Whether some of the co-heirs could execute the Deed of Transfer dated 8-9-1990 without the consent of the Appellant who was also a co-heir under Article 2016 r/w Article 2177 of the said Code?

3. On 27th January 2023, after hearing the learned Counsel for the parties and in terms of the provisions of Section 100 (5) of the C.P.C., the following substantial questions of law were formulated:

(C) Whether non-challenge to the consent decree passed in the suit in which the Appellant was not a party, could defeat the alleged substantive rights of her inheritance to inherit the estate of the deceased? and (D) Whether without any evidence on record the suit could be held to be time barred when the Plaintiff claimed that cause of action arose on 26/6/1994 when she came to know for the first time of the deed executed on 8/9/1990, which deed was executed without the consent?

4. Accordingly, the learned Counsel for the parties were heard on the above four substantial questions of law. Arguments concluded on 24th February 2023.

5. The Appellant is the original Plaintiff, and the Respondents are the original Defendants in Special Civil Suit No.226/1994/A instituted in the Court of Civil Judge, Senior Division, at Margao. The suit was instituted to declare the Transfer Deed dated 8/9/1990 null and void and a mandatory injunction for its cancellation. The Appellant also prayed for a permanent injunction to restrain Defendants No.1 to 4 from transferring or conveying the suit property based on the Transfer Deed dated 8/9/1990 without the written consent of the Appellant and other co-owners.

6. The Defendants contested the Suit and also raised a counter-claim for the cancellation of the Deed of Succession and an injunction.

7. The Trial Court, by Judgment and Decree dated 31/05/2003, dismissed the suit and partly decreed the counter- claim by cancelling the Deed of Succession. However, the First Appellate Court upheld the dismissal of the suit, set aside the Decree in the counter-claim and upheld the Succession Deed showing the Appellant (Plaintiff) as one of the successors of the late Antonio Baptista Martins.

8. The Appellant has instituted this Second Appeal questioning the dismissal of the suit on the substantial questions of law referred to above. Respondents have not questioned the rejection of their counter-claim or the declaration of the Succession Deed as valid.

9. Mr C.A. Coutinho, the learned Counsel for the Appellant, submitted that upon the death of Antonio Baptista Martins, his estate was not inventoried nor partitioned through inventory proceedings or a deed of partition. He offered that the consent decree, upon which the impugned Transfer Deed dated 8/9/1990 was purported to be based, was made in a suit to which the Appellant was never a party. Accordingly, neither the Consent Decree nor the Transfer Deed made in pursuance of the same could bind the Appellant, given the provisions of Section 35 of the Specific Relief Act. He submits that the two courts did not adequately appreciate this crucial aspect.

10. Mr Coutinho submitted

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