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Shyam Narayan Prasad vs Krishna Prasad on 2 July, 2018

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REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 5415 OF 2011

SHYAM NARAYAN PRASAD … APPELLANT

VERSUS

KRISHNA PRASAD AND ORS. … RESPONDENTS

JUDGMENT

S.ABDUL NAZEER, J.

1. Defendant No.1, Shyam Narayan Prasad is the appellant before us. In this

appeal he has questioned the legality and correctness of the judgment and decree

dated 15.5.2006 passed by the High Court of Sikkim in RSA No.1 of 2005.

2. One Gopalji Prasad is the common male ancestor of the parties. The

appellant and Laxmi Prasad, 5th respondent herein, are the sons of Gopalji Prasad.
Signature Not Verified

Digitally signed by
SWETA DHYANI
Date: 2018.07.02

Respondent Nos. 1 to 3 are the sons of Laxmi Prasad and respondent No.4 is the
17:05:24 IST
Reason:

son of the 1st respondent. Respondent Nos.1 to 4 are the plaintiffs in the suit, being
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Civil Suit No.10 of 2001, and the appellant and respondent Nos.5 and 6 are the

defendants. No relief has been claimed against respondent No.6 (defendant No.3

in the suit). For the sake of convenience, parties are referred to by the ranking in

the trial court.

3. The plaintiffs filed the aforesaid suit against the defendants for a declaration

that the document dated 30.1.1990 (Exhibit P2) executed between defendant Nos.

1 and 2 is invalid and for certain other reliefs. According to them, the family

property was partitioned on 31.7.1987 between Gopalji and his five sons, namely,

Laxmi Prasad, Ayodhya Prasad, Shyam Narayan Prasad, Dr. Onkarnath Gupta and

Suresh Kumar. In the partition Gopalji has retained some of the properties for his

personal use till his death. Laxmi Prasad got his share of property along with half

portion of existing two-storey RCC building situated at Singtam Bazar, East

Sikkim, wherein presently a liquor shop is being run. Shyam Narayan Prasad was

allotted a shoe shop at Manihari which is run on a rented premises owned by Gouri

Shankar Prasad. He was also allotted other properties in the partition.

4. After the partition, the sons of Gopalji were put in possession of their share

of the properties. However, Laxmi Prasad (defendant No.2) in collusion with his

brother Shyam Narayan Prasad (defendant No.1) executed an agreement dated

30.1.1990 exchanging the liquor shop at Singtam Bazar, East Sikkim with the shoe

shop at Manihari. It is their contention that since the property is an ancestral
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property, they also have a share in the property which had fallen to the share of

defendant No.2 and that he has no legal right to exchange the property with

defendant No.1. It was further contented that the deed of exchange dated 30.1.1990

entered into between defendant Nos.1 and 2 is in relation to an immovable

property. Since the said document has not been registered, it has no legal effect.

5. Defendant No.1 has filed the written statement stating that the suit properties

are not ancestral properties. He has denied the contention of the plaintiffs that the

document dated 30.1.1990 is not a valid document. It was further contended that

the said document has already been given effect from the date of its execution.

6. Defendant No. 2 has filed the written statement contending that for the

alleged exchange deed, defendant No. 1 had approached him for exchanging only

the business of liquor shop at Sikkim with that of shoe shop at Gangtok for

convenience and that he had signed the document in good faith believing that the

exchange deed was only for the two businesses, and further, admitted that

exchange deed was made and executed behind the back of the plaintiffs.

7. On the basis of the pleadings of the parties, the trial court has framed

relevant issues. Parties have led evidence in support of their respective

contentions. On appreciation of the materials on record, the trial court had come to

the conclusion that the property in question is an ancestral property and that the

plaintiffs being the sons and grandson of defendant No.2, they have also equal
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share in the property allotted to him in the partition. The suit was accordingly

decreed.

8. The first defendant challenged the said judgment and decree by filing an

Appeal No.2 of 2003 before the District Judge, Sub-Division-II, Sikkim at

Gangtok. The District Judge by judgment and decree dated 19.11.2004 allowed the

appeal, set aside the judgment and decree of the trial court and dismissed the suit.

The plaintiffs filed a Second Appeal No.1 of 2005 challenging the judgment and

decree of the District Judge before the High Court. The High Court has set aside

the judgment and decree of the District Judge and restored the judgment and decree

of the trial court.

9. The contention of the learned counsel for the appellant/defendant No.1 is

that the entire property of Gopalji was the self acquired property and he has

divided the property amongst his five sons by a deed of partition dated 1.3.1988.

According to the deed of settlement dated 30.1.1990 between defendant Nos. 1 and

2, only the businesses were transferred and not the buildings. Therefore, the sons

and the grandson of defendant No.2 have no right to seek cancellation of the said

deed. There is no exchange of immovable property as contended by the plaintiffs.

Therefore, the settlement deed does not require registration. The parties have acted

upon the said agreement. In the circumstances, possession of the appellant is
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protected under Section 53A of the Transfer of Property Act, 1882 (for short ‘the

T.P. Act’).

10. On the other hand, learned advocate appearing for the respondent Nos. 1 to

4/plaintiffs submits that the subject matter of the deed of settlement dated

30.1.1990 is a joint family property. The recitals of this document clearly show

that there is a transfer of immovable property. The plaintiffs, being the lineal

descendants of defendant No.2, are the members of the copercenary. They have a

right and interest over the property in question. The settlement deed dated

30.1.1990 has not been registered. Hence, it is inadmissible in evidence.

Defendant No.1 has not pleaded in his written statement that he has taken the

possession of the property in part performance of the contract. Therefore, it is not

open for him to claim the benefit of Section 53A of the T.P. Act. Learned counsel

prays for dismissal of the appeal.

11. Having regard to the contentions urged, the first question for consideration is

whether the property allotted to defendant No.2 in the partition dated 31.07.1987

retained the character of a coparcenary property. Admittedly, Gopalji Prasad and

his five sons partitioned the property by a deed of partition dated 31.07.1987. It is

clear from the materials on record that Gopalji Prasad retained certain properties in

the partition. Certain properties had fallen to the share of defendant No.2 who is

the father of plaintiff Nos. 1 to 3 and grandfather of plaintiff No. 4. Certain
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properties had fallen to the share of the first defendant. The trial court has held

that the properties are ancestral properties. The High Court has confirmed the

finding of the trial court. We do not find any ground to disagree with this finding

of the courts below.

12. It is settled that the property inherited by a male Hindu from his father,

father’s father or father’s father’s father is an ancestral property. The essential

feature of ancestral property, according to Mitakshara Law, is that the sons,

grandsons, and great grandsons of the person who inherits it, acquire an interest

and the rights attached to such property at the moment of their birth. The share

which a coparcener obtains on partition of ancestral property is ancestral property

as regards his male issue. After partition, the property in the hands of the son will

continue to be the ancestral property and the natural or adopted son of that son will

take interest in it and is entitled to it by survivorship.

13. In C. Krishna Prasad v. C.I.T, Bangalore, 1975 (1) SCC 160, this Court

was considering a similar question. In the said case, C. Krishna Prasad, the

appellant along with his father Krishnaswami Naidu and brother C. Krishna Kumar

formed Hindu undivided family up to October 30, 1958, when there was a partition

between Krishnaswami Naidu and his two sons. A question arose as to whether an

unmarried male Hindu on partition of a joint Hindu family can be assessed in the

status of undivided family even though no other person besides him is a member of
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the family. It was held that the share which a coparcener obtains on partition is

ancestral property as regards male issue. It was held as under:

“The share which a coparcener obtains on partition of
ancestral property is ancestral property as regards his
male issue. They take an interest in it by birth,
whether they are in existence at the time of partition
or are born subsequently. Such share, however, is
ancestral property only as regards his male issue. As
regards other relations, it is separate property, and if the
coparcener dies without leaving male issue, it passes to
his heirs by succession (see p. 272 of Mulla’s Principles
of Hindu Law, 14th Ed.). A person who for the time being
is the sole surviving coparcener is entitled to dispose of
the coparcenary property as if it were his separate
property. He may sell or mortgage the property without
legal necessity or he may make a gift of it. If a son is
subsequently born to him or adopted by him, the
alienation, whether it is by way of sale, mortgage or gift,
will nevertheless stand, for a son cannot object to
alienations made by his father before he was born or
begotten”.

(emphasis supplied)

14. In M. Yogendra and Ors. v. Leelamma N. and Ors. 2009 (15) SCC 184, it

was held as under:

“It is now well settled in view of several decisions of
this Court that the property in the hands of a sole
coparcener allotted to him in partition shall be his
separate property for the same shall revive only when
a son is born to him. It is one thing to say that the
property remains a coparcenary property but it is another
thing to say that it revives. The distinction between the
two is absolutely clear and unambiguous. In the case of
former any sale or alienation which has been done by the
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sole survivor coparcener shall be valid whereas in the
case of a coparcener any alienation made by the karta
would be valid.”

(emphasis supplied)

15. In Rohit Chauhan v. Surinder Singh and Ors. 2013 (9) SCC 419, a

contention was raised by the defendant No. 1 that after partition of the joint Hindu

family property, the land allotted to the share of defendant No. 2 became his self

acquired property and he was competent to transfer the property in the manner he

desired. It was held that the property which defendant No. 2 got by virtue of

partition decree amongst his father and brothers was although separate property

qua other relations but it attained the characteristics of coparcenary property the

moment a son was born to defendant No. 2. It was held thus:

“A person, who for the time being is the sole surviving
coparcener as in the present case Gulab Singh was,
before the birth of the plaintiff, was entitled to dispose of
the coparcenary property as if it were his separate
property. Gulab Singh, till the birth of plaintiff Rohit
Chauhan, was competent to sell, mortgage and deal with
the property as his property in the manner he liked. Had
he done so before the birth of plaintiff, Rohit Chauhan,
he was not competent to object to the alienation made by
his father before he was born or begotten. But, in the
present case, it is an admitted position that the
property which Defendant 2 got on partition was an
ancestral property and till the birth of the plaintiff he
was the sole surviving coparcener but the moment
plaintiff was born, he got a share in the father’s
property and became a coparcener. As observed
earlier, in view of the settled legal position, the property
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in the hands of Defendant 2 allotted to him in partition
was a separate property till the birth of the plaintiff and,
therefore, after his birth Defendant 2 could have alienated
the property only as karta for legal necessity. It is
nobody’s case that Defendant 2 executed the sale deeds
and release deed as karta for any legal necessity. Hence,
the sale deeds and the release deed executed by Gulab
Singh to the extent of entire coparcenary property are
illegal, null and void. However, in respect of the property
which would have fallen in the share of Gulab Singh at
the time of execution of sale deeds and release deed, the
parties can work out
their remedies in appropriate proceeding.”

(emphasis supplied)

16. Therefore, the properties acquired by defendant No.2 in the partition dated

31.07.1987 although are separate property qua other relations but it is a

coparcenary property insofar as his sons and grandsons are concerned. In the

instant case, there is a clear finding by the trial court that the properties are

ancestral properties which have been divided as per the deed of partition dated

31.07.1987. The property which had fallen to the share of defendant No.2 retained

the character of a coparcenary property and the plaintiffs being his sons and

grandson have a right in the said property. Hence, it cannot be said that the suit

filed by the plaintiffs was not maintainable.

17. This takes us to the next question as to whether the exchange deed at Exhibit

P2 is admissible in evidence or not. The transfer of ownership of their respective

properties by defendant Nos. 1 and 2 was done through Exhibit P2 deed of
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exchange. It was contended by defendant No.1 that the exchange was only of the

businesses. However, a careful perusal of Exhibit P2 clearly shows that the RCC

building is also a subject matter of the deed of exchange. The value of RCC

building exceeds Rs. 100/- which is not in dispute. Section 118 of the TP Act

defines ‘exchange’ as under:

“118. “Exchange” defined.-When two persons mutually
transfer the ownership of one thing for the ownership of
another, neither thing or both things being money only,
the transaction is called an “exchange”.

A transfer of property in completion of an
exchange can be made only in manner provided for the
transfer of such property by sale”.

18. It is clear from this provision that where either of the properties in exchange

are immovable or one of them is immovable and the value of anyone is Rs.100/- or

more, the provision of Section 54 of the TP Act relating to sale of immovable

property would apply. The mode of transfer in case of exchange is the same as in

the case of sale. It is thus clear that in the case of exchange of property of value of

Rs. 100/- and above, it can be made only by a registered instrument. In the instant

case, the exchange deed at Exhibit P2 has not been registered.

19. Section 49 of the Registration Act, 1908 provides for the effect of non-

registration of the document which is as under:

“49. Effect of non-registration of documents required
to be registered.-No document required by section 17
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{or by any provision of the Transfer of Property Act,
1882 (4 of 1882)}, to be registered shall-

(a) affect any immovable property comprised
therein, or

(b) confer any power to adopt, or

(c) Be received as evidence of any transaction
affecting such property or conferring such
power,
Unless it has been registered:”

20. Section 17(i)(b) of the Registration Act mandates that any document which

has the effect of creating and taking away the rights in respect of an immovable

property must be registered and Section 49 of the Registration Act imposes bar on

the admissibility of an unregistered document and deals with the documents that

are required to be registered under Section 17 of the Registration Act. Since, the

deed of exchange has the effect of creating and taking away the rights in respect of

an immovable property, namely, RCC building, it requires registration under

Section 17. Since the deed of exchange has not been registered, it cannot be taken

into account to the extent of the transfer of an immovable property.

21. In Roshan Singh Ors. v. Zile Singh Ors. 1988 (2) SCR 1106, this

Court was considering the admissibility of an unregistered partition deed. It was

held thus:

“……Section 17(i)(b) lays down that a document for
which registration is compulsory should, by its own
force, operate or purport to operate to create or declare
some right in immovable property……Two propositions
must therefore flow:

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(1) A partition may be affected orally; but if it is
subsequently reduced into a form of a document and that
document purports by itself to effect a division and
embodies all the terms of bargain, it will be necessary
to register it. If it be not registered, S.49 of the Act
will prevent its being admitted in evidence. Secondary
evidence of the factum of partition will not be admissible
by reason of S.91 of the Evidence Act, 1872.”

(emphasis supplied)

22. It is clear from the above judgment that the best evidence of the contents of

the document is the document itself and as required under Section 91 of the

Evidence Act the document itself has to be produced to prove its contents. But

having regard to Section 49 of the Registration Act, any document which is not

registered as required under law, would be inadmissible in evidence and cannot,

therefore, be produced and proved under Section 91 of the Evidence Act. Since

Exhibit P2 is an unregistered document, it is inadmissible in evidence and as such

it can neither be proved under Section 91 of the Evidence Act nor any oral

evidence can be given to prove its contents. Therefore, the High Court has rightly

discarded the exchange deed at Exhibit P2.

23. The last contention of the learned counsel for the appellant is in relation to

application of Section 53A of the T.P Act. It is well settled that the defendant who

intends to avail the benefit of this provision must plead that he has taken

possession of the property in part performance of the contract. Perusal of the
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written statement of the first defendant shows that he has not raised such a plea.

Pleadings are meant to give to each side, intimation of the case of the other, so that,

it may be met to enable courts to determine what is really at issue between the

parties. No relief can be granted to a party without the pleadings. Therefore, it is

not open for the first defendant/appellant to claim the benefit available under

Section 53A of the T.P. Act.

24. In the result, this appeal fails and it is accordingly dismissed. There will be

no order as to costs.

…..………………………………J.

(ABHAY MANOHAR SAPRE)

…….……………………………J.

(S. ABDUL NAZEER)
New Delhi;

July 02, 2018.

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