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Saturday, October 27, 2012

Muslim - personal law - no concept of jointness still - Once the property is proved that it was purchased out of joint family fund , whether it is part consideration or full consideration, the entire property is joint property and is liable for partition




THE HON'BLE THE CHIEF JUSTICE SHRI MADAN B.LOKUR AND THE HON'BLE SHRI JUSTICE SANJAY KUMAR                 

LETTERS PATENT APPEAL NO.141 OF 2002         

01-03-2012 

Shaik Mohd. Ali Ansari & others.

Shaik Abdul Samed (Died) Per LRs. and others. 

Counsel for appellants                  :  Sri Vedula Venkataramana 

Counsel for respondents         :  Sri Y.G.Krishna Murthy        


? CASES REFERRED:      
1) AIR 1999 Supreme Court 1441  
        2) (1969) 1 Andhra Weekly Reporter 255 (DB) 
3) AIR 1931 Madras 553 
4) AIR 1998 Patna 1 
5) AIR 1932 Allahabad 512 
6) AIR 1932 Calcutta 538
7) AIR 1963 Patna 128 
8) AIR 1955 Orissa 24
9) AIR 1956 Mysore 14 
         10) B.R.Verma's Commentaries on Mohammedan Law, 8th Edition  
         11) AIR 1952 Supreme Court 358 (Para 14)
         12) (1991) 191 ITR 278
         13) AIR 1958 Allahabad 42

JUDGMENT: (Per Sri Justice Sanjay Kumar)   

        This Letters Patent Appeal arises out of the Judgment and Decree dated
10.12.2001 in A.S.No.23 of 1985, whereby a learned Judge of this Court reversed
the Judgment and Decree dated 16.10.1978 of the learned Subordinate Judge, 
Bapatla, dismissing O.S.No.41 of 1975. The learned Judge passed a preliminary
decree to partition the suit schedule property into three equal shares and to
allot two such shares to the plaintiffs. Enquiry into past and future mesne
profits was directed to be conducted on a separate application to be filed by
the plaintiffs in the trial Court.
        Aggrieved, respondent Nos.2 and 8 in A.S.No.23 of 1985 (defendant No.2 and
the widow of deceased defendant No.5 in the suit, who was brought on record as
one of his legal representatives in A.S.No.23 of 1985) are in appeal. The
appellants in A.S.No.23 of 1985 (plaintiffs in the suit) are arrayed as
respondent Nos.1 to 4 in this appeal. Upon the death of respondent No.1 herein,
his legal representatives were brought on record as respondent Nos.11 to 16 in
this appeal. Respondent No.5 herein is respondent No.1 in A.S.No.23 of 1985
(defendant No.1 in the suit). Respondent Nos.6, 7 and 8 in this appeal are
respondent Nos.3, 4 and 5 in A.S.No.23 of 1985 (defendant Nos.3, 4 and 5 in the
suit). Defendant No.5 died during the pendency of A.S.No.23 of 1985 and his
female legal representatives were brought on record therein as respondent Nos.8
and 9. As stated supra, his widow, respondent No.8 in A.S.No.23 of 1985, is
appellant No.2 in this LPA. His other legal representative, respondent No.9 in
A.S.No.23 of 1985, is shown as respondent No.10 in this appeal. Respondent No.7 
in A.S.No.23 of 1985 (defendant No.7 in the suit), a tenant in the suit schedule
property, is shown as respondent No.9 in this appeal. Respondent Nos.5 to 10 in
this appeal are however shown as not necessary parties.
        The LPA was admitted on 25.09.2002 and status quo was directed to be  
maintained. Final decree proceedings were permitted to continue but the trial
Court was restrained from passing the final decree.
        Parties shall be referred to as arrayed before the trial Court.
        The suit, O.S.No.41 of 1975, from which this appeal arises was filed for
partition of the suit schedule property into three equal shares and for
allotment of two such shares to the plaintiffs. They also sought past and future
mesne profits along with costs. The case of the plaintiffs was as follows:
        Shaik Abdul Khader, the father of plaintiff Nos.2 to 4, defendant No.1 and
plaintiff No.1 were the sons of one Mohd. Abbas Ali, who owned considerable
landed property in Sangupalem Kodur in Guntur District. The eldest son, Shaik
Abdul Khader, died in 1955. Mohd. Abbas Ali settled all his properties in favour
of his surviving sons and grandsons under a registered Gift Deed dated
14.12.1956 (Ex.A.1). Mohd. Abbas Ali expired in the year 1957 and defendant
No.1, being the only educated member in the family and also the eldest, assumed
management of all the properties. He was the President of the Gram Panchayat,
having been elected unopposed, and commanded influence and respect in the  
village. While so, under sale deed dated 25.05.1961(Ex.A.9), defendant No.1
purchased the suit schedule property, being a site with a rice mill situated
thereon along with buildings and appurtenant accessories, from out of the income
of the joint properties, by raising loans on the security of these properties
and also by selling some of them. The suit schedule property is situated at
Chandole Village which is about 2 K.Ms. from Sangupalem Kodur where the  
plaintiffs were residing. The suit schedule property was managed by defendant
No.1 alone by spending joint monies for necessary repairs, etc. The plaintiffs
did not and could not question defendant No.1 as to the management of the
properties. However, defendant No.1 began squandering the income from the joint
properties and was also using the same for his political activities and personal
extravagances. He was not looking after them or their welfare properly and they
came to know that he had created a false and fraudulent document styled as a
'sale deed' in respect of the suit schedule property in favour of defendant
Nos.2 to 5. Defendant No.1 was only a one-third sharer and the sale of the joint
property effected by him was not binding on them or their two-thirds share
therein. Their enquiries revealed that the sale deed taken by defendant Nos.2 to
5 in the year 1974 contained all sorts of false recitals but their queries
failed to evoke any response. They accordingly filed the suit for partition and
profits.
        Defendant No.1 remained ex parte. 
        Defendant No.5 filed a written statement which was adopted by his sons,
defendant Nos.2 to 4. Therein, he stated to this effect:
        The relationship of the plaintiffs and the defendant No.1 was admitted but
it was denied that late Mohd. Abbas Ali had considerable properties. To his
knowledge, the suit schedule property never belonged to the estate of late Mohd.
Abbas Ali and it was not purchased or repaired with the funds arising out of the
alleged estate. He further stated that if the plaintiffs were aggrieved by the
conduct of defendant No.1, their silence all through and even at the stage of
the filing of the suit, in so far as seeking true and proper accounts is
concerned, is noteworthy and indicated that the suit was collusive and
fraudulent in nature. The plaintiffs being majors, he alleged that it could not
be believed that they were wholly ignorant of their rights in the family
properties, if any. He denied that the sale transaction covering the suit
schedule property was a false or fraudulent one and asserted that the said
property did not belong to the plaintiffs and that they had no interest,
enjoyment or possession in respect of the same at any time. He stated that the
suit schedule property was originally purchased by defendant No.1 with borrowed
money in the year 1961 and he wanted to sell the same to others. However, the
said sale did not fructify and he agreed to sell the property to him under the
agreement of sale dated 29.08.1963 (Ex.B.1). Possession of the property was also
delivered to him on the same day and since then, defendant No.1 ceased to have
any interest, enjoyment or possession over the said property. He claimed that
since then he was in exclusive and uninterrupted possession of the suit schedule
property in his own right. Defendant No.1 and he had to face a suit in O.S.No.24
of 1964 on the file of the learned Subordinate Judge, Bapatla, which was filed
by Kommuri Sambasiva Rao, the vendor of defendant No.1, for recovery of the
balance sale consideration. He discharged the said suit claim after the suit was
decreed. Substantial part of the consideration for which the property was
purchased by him was utilized in discharge of the indebtedness of defendant
No.1. He denied that the suit schedule property was purchased by defendant No.1
with the monies of the plaintiffs. He further stated that after running the suit
rice mill for some time, he leased out the same to N.Bhushaiah (impleaded
thereafter as defendant No.6) and others in or about the year 1967. Since then,
the mill was being run by his lessees, who were not impleaded in the suit,
rendering the suit bad for non-joinder of necessary parties. The sale in respect
of the suit schedule property was registered in favour of his sons, defendant
Nos.2 to 4, under sale deed dated 02.04.1974 (Ex.A.10/Ex.B.8). Another document 
(Ex.B.5) was also executed on the same day in respect of the sale of the movable
machinery installed in the suit rice mill. On account of the delay caused by the
conduct of the defendant No.1, he had to suffer and was obliged to pay interest
and excess amount to the tune of Rs.9,000/-, bringing the total sale
consideration to Rs.73,000/-. He asserted that the plaintiffs had absolutely no
interest in the said property and that they were not entitled to question his
enjoyment or possession and that the suit claim was barred by time. He further
stated that as the parties were governed by Muslim Law they were not entitled to
import the principles of Hindu Law to support their claim. He averred that
defendant No.1 never acted or purported to act on behalf of the plaintiffs at
any time during the life time of his father or even thereafter. They were merely
living together and under law, the same did not create any legal right in the
plaintiffs in so far as the properties of defendant No.1 are concerned. He
concluded by alleging that the plaintiffs had lost all their properties and had
chosen, perhaps at the instance of defendant No.1, to canvass this vexatious and
frivolous suit claim and prayed for dismissal of the suit with costs.
        Defendant Nos.6 and 7, being the tenants in the suit schedule property
under defendant Nos.2 to 5, were subsequently added as parties to the suit.
Defendant No.7 filed a written statement, which was adopted by defendant No.6,
wherein they asserted their rights as tenants of the suit schedule property.
         On the above pleadings, the trial Court framed the following issues for
consideration:
1. Whether the suit property belonged to the estate of late Abbas Ali, the
father of the 1st defendant and whether the plaintiffs are entitled to partition
and profits, if any?
2. Whether the sale transaction in favour of defendants 2 to 5 is a false and
fraudulent one?
3. Whether the plaint schedule is correct?
4. Whether the suit is bad for non-joinder of necessary parties?
5. To what relief?
Plaintiff No.1 examined himself as PW.1 and marked Exs.A.1 to A.10. Defendant 
No.5 was examined as DW.1 and the scribe of the agreement of sale dated 
29.08.1963 (Ex.B.1) was examined as DW.2. The defendants marked Exs.B.1 to B.18    
in support of their case.
Upon considering the pleadings and the material on record, the trial Court
dismissed the suit holding that the plaintiffs had failed to prove that
defendant No.1 had paid part of the sale consideration in respect of the suit
schedule property under Ex.A9 from the monies which were jointly held by him
with the plaintiffs. It further held that there was no evidence that the suit
schedule property was ever treated as the joint property of the plaintiffs and
defendant No.1 and declined to accept the plaintiffs' version that defendant
No.1 had purchased the suit schedule property from out of the joint estate of
the parties and that the same became a part thereof. The trial Court observed
that it was clear that defendant No.1 alone had purchased the suit schedule
property in his own name and dealt with the same as his own property. It further
opined that no presumption could be drawn in favour of jointness of ownership
over the suit property in the absence of legal proof that defendant No.1 had
acquired the same in a fiduciary capacity. The trial Court accordingly held that
the plaintiffs were not entitled to seek partition of the suit schedule property
and that the sale thereof in favour of defendant Nos.2 to 5 was true, valid and
binding on them and dismissed the suit.
Aggrieved thereby, the plaintiffs filed A.S.No.23 of 1985 before this Court
under Section 96 CPC. By judgment and decree dated 10.12.2001, a learned Judge  
allowed the said appeal. The learned Judge, placing reliance on the documentary
evidence (Exs.A2 to A5), concluded that part of the sale consideration paid by
defendant No.1 under Ex.A9 was sourced from the income and proceeds of the joint 
properties held by him with the plaintiffs. The learned Judge observed that
there was absolutely no reason to disbelieve that the amounts received under
Exs.A2 to A5 were used towards the consideration under Ex.A.9; more so, when the 
parties were living together jointly and there was no severance amongst them.
The learned Judge took note of the fact that there was no evidence to show any
other separate source of income to account for defendant No.1 independently
paying the consideration under Ex.A9 and drew the inference that the suit
schedule property was purchased from out of the income arising out of the joint
properties and more particularly, the transactions covered by Exs.A2 to A5. The
learned Judge therefore held that the suit schedule property was a joint
property and that the defendant No.1 could not have alienated the same in favour
of third parties to the detriment of the plaintiffs. As the initial burden
resting on the plaintiffs stood discharged, the learned Judge was of the opinion
that the defendants, in their turn, had failed to prove the passing of valid
title to them. The learned Judge accordingly passed a preliminary decree for
partition of the suit schedule property into three equal shares and for
allotment of two such shares to the plaintiffs. The learned Judge further
directed the plaintiffs to file a separate application before the trial Court
for initiating an enquiry into the past and future mesne profits payable to
them. 
Challenging the said judgment and preliminary decree, the present LPA was filed.
Sri Vedula Venkataramana, learned senior counsel appearing for the appellants,
contended that the learned Judge had erred in holding that the suit schedule
property was the joint property of defendant No.1 and the plaintiffs. He
asserted that after the settlement effected by the father, late Mohd. Abbas Ali,
under Ex.A1 gift deed, there was severance in the joint ownership over the
properties. He submitted that even otherwise it was for the plaintiffs to prove
that there was sufficient nucleus of joint property to account for the
acquisition of the suit schedule property. He pointed out that the plaintiffs
had failed to substantiate details as to the income arising out of these
properties and contended that this failure on the part of the plaintiffs to
prove the nexus and sufficiency of the alleged nucleus of the joint properties
was fatal to their claim. In the alternative, the learned senior counsel
submitted that mere payment of a portion of the consideration from out of the
alleged income arising out of the joint properties would not translate to joint
acquisition of the property as a whole. He therefore asserted that, in any
event, the plaintiffs could not claim rights in respect of the entire suit
schedule property. Relying on the decision in VIDHYADHAR V/s MANIKRAO1, the     
learned senior counsel asserted that the Court should draw an adverse inference
against the plaintiffs for their failure to examine defendant No.1. He pointed
out that the parties were governed by Muslim Law and therefore, the concept of a
Hindu Joint Family would not be applicable to them and that the plaintiffs were
required to prove their joint ownership before they could assert a claim for
partition.
Refuting the above contentions, Sri Y.G.Krishna Murthy, learned centenarian
counsel for respondent Nos. 2, 3 & 4(plaintiffs 2, 3 & 4) and respondent Nos. 11
to 16 (LRs of plaintiff No.1), contended that the nature of the parties' rights
under their personal law had not been argued before the courts below and it that
was not open to the appellants to raise the same for the first time in this LPA.
On facts, the learned counsel submitted that the documentary evidence in the
form of Exs.A.2 to A.5 clearly demonstrated the nexus between the
income/proceeds of the joint properties held by defendant No.1 and the
plaintiffs and the payment of part of the sale consideration by defendant No.1
under Ex.A9. He contended that till the execution of the sale deed dated
02.04.1974 (Ex.A10/Ex.B8), defendant Nos.2 to 5 did not have title and ownership
over the suit schedule property and therefore could not complain of any
inaction/silence on the part of his clients prior thereto. Learned counsel
pointed out that the plaintiffs were at loggerheads with defendant No.1 after
the fallout caused by this litigation and further, defendant No.1 was imprisoned
at that time and could not therefore be summoned for examination during the
trial. As defendant Nos.2 to 5 claimed that their sale transaction with
defendant No.1 was a genuine and bonafide one, learned counsel asserted that, in
any event, it was for them to examine defendant No.1 to prove their case.
In his reply, Sri Vedula Venkataramana, learned senior counsel, stated that the
plaintiffs had to succeed on the strength of their own case and it was not for
his clients to examine defendant No.1 to prove their bonafides.
At the outset, we may note that we are severely handicapped as the original
record appears to have been destroyed during the pendency of the first appeal
itself and it is only on the basis of the partially reconstructed record made
available by the counsel that we are adjudicating this appeal.
Though Sri Y.G.Krishna Murthy, learned counsel, stated that the issue had not
been argued before the courts below, we find that in his written statement,
defendant No.5 did raise the aspect of the principles of Hindu law not being
applicable as the parties were Muslims. Even otherwise, we are of the opinion
that the personal law governing the plaintiffs and defendant No. 1 has relevance
to the lis and cannot be ignored.
The position in Muslim Law is that at the moment of death of a Mohammedan, his 
estate devolves on his heirs and they take the estate as tenants-in-common in
specific shares. Muslim Law does not recognize the theory of representation and
the interest of each heir is separate and distinct. Therefore, there can be no
presumption that acquisition of a property by one or more member(s) of the
family is for the benefit of the entire family, unless there is proof to the
contrary.
The concept of a joint family is foreign to Muslim Law. It is however common in
certain areas of Andhra Pradesh, formerly belonging to the Madras State, for
descendant Mohammedans to live and trade together and to acquire properties 
together. There is nothing contrary to law in Mohammedan adult male members of a 
family carrying on trade for the benefit of all the interested members,
including minors and females. The Courts have upheld such legal arrangements and
the legal consequences as in law that follow from them. When an adult male
member holds assets and carries on business on behalf all the persons interested
therein, he stands in a fiduciary relationship to such other persons. Sections
23, 88 and 90 of the Trusts Act are applicable to such cases [D.RAJA AHMED V/s. 
PACHA BI2].  
Thus, it is only if a Mohammedan makes out a case of partnership, agency or
fiduciary relationship that he can contend that property purchased in the name
of one was for the benefit of all. In such a case the person seeking relief
would have to establish that the person who stood in fiduciary capacity made use
of the common fund of the parties in making the purchase or that he took
advantage of his fiduciary relationship in the transaction. It must however be
remembered, as pointed out by a Division Bench of the Madras High Court in
SAUDAGAR MUHAMMAD ABDUL RAHIM BAIG SAHEB V/s. SAUDAGAR MUHAMMAD ABDUL HAKIM BAIG                            
SAHEB3  and affirmed by a Division Bench of the Patna High Court in RUKAIYA  
BEGUM V/s. FAZALUR RAHMAN 4, though there is nothing contrary to law in    
Mohammedan adult members of a family carrying on family trade for the benefit of
all the members of the family and the Court would normally uphold such an
arrangement and such other legal consequences as in law that would follow from
it, notwithstanding the fact that there is no presumption of jointness in
Mohammedans, the Court would not import into it the same legal consequences that 
would follow when such an arrangement is conducted by a Hindu Joint Family.
In SHUKRULLA V/s. Mt. ZUHRA BIBI5, a Division Bench of the Allahabad High Court   
held:
"... Where male members of a family live in union so as to have jointness in
mess, business and property, there can be little difficulty in tracing their
relations inter se to an implied agreement which clothes each with a
representative capacity in reference to his           co-sharers. Each must be
deemed to be acting not only for himself, but for all in his dealings with
regard to joint property and business. Accordingly any acquisitions made by any
one member should be considered to have been made by all through the one who  
actually made it. In such a case, as among partners, each is the manager or
agent of the others. The position is not so simple as regards the heirs whose
rights are not recognized by any overt act of the surviving male members. The
case of female and minor heirs and those not living on the spot, all of whom
belong to this category, rests on a somewhat different footing. Their right to
share subsequent additions can arise only if the circumstances are such that the
male members can be considered to have continued the business and held the joint
property on their behalf or in some way made themselves trustees for them in
making fresh acquisitions so as to be liable to hold for them part of the
resultant benefit."

In AMINADDIN MUNSHI V/s. TAJADDIN 6, a Division Bench of the Calcutta High Court   
observed that though members of a Mohammedan family living in commensality do  
not form a joint family in the sense that the expression is used with regard to
Hindus and there is no presumption, as under Hindu Law, that acquisition of the
members is made for the benefit of the joint family, the situation would be
different when it is shown that the members of the family were possessing the
disputed properties jointly. In such a case, it is not a question merely of the
messing together of the members of the Mohammedan family as they possess the   
properties in common and in jointness. Under such circumstances, the burden
would lie upon the managing member of the family to establish that the
properties acquired by him during the jointness of the family would not belong
to all the members of the family. The managing member would stand in a fiduciary
relationship to the other members of his family and would have certain
obligations to discharge with reference to them. Thus, where properties are
acquired by the managing member, the burden of proving that the said property
was not the property of the joint family but was self-acquired would rest upon
the managing member himself.  
This principle was followed by a Division Bench of the Patna High Court in
MST.BIBI BINTUL FATMA V/s. S.M.AFTAB AHMAD7 while upholding the right of the      
other members of such a family to seek partition of the joint movable and
immovable properties held by the managing member of the family.
In SAUDAGAR MUHAMMAD ABDUL RAHIM BAIG SAHEB3, the Madras High Court observed               
that it is not an uncommon thing in the Madras Presidency where members of the 
Mohammedan community live surrounded by Hindus, that they absorb and adopt Hindu    
social ideas and tend to look upon their own social customs from a Hindu point
of view. It is therefore common for descendants of Mohammedans to live and trade
together and the property is held by several members of the family in the shares
to which they are entitled under Mohammedan Law. The Court therefore held that
where one such member, upon the death of his father, puts himself in a fiduciary
relationship with the other members of the family and assumed the management of 
the properties, he would be accountable to the other members of the family, not
as a          co-owner but because of the fiduciary relationship he adopted
towards them. 
In SK.KABIR V/s. NARAYANDAS LACHMAN DAS LIMITED8, a Division Bench of the Orissa          
High Court observed that when Mohammedans who live and mess together trace their  
origin to a common ancestor, carry on business jointly and make acquisitions,
their rights are to be determined with reference to the contract, either express
or implied.
In C.KRISHNAMURTHY SETTY V/s. ABDUL KHADAR9, a Division Bench of the Mysore High          
Court observed that if during the continuance of the family, properties are
acquired in the name of the managing member of the family and it is proved that
they are possessed by all the members jointly, the presumption is that they are
properties of the family and not the separate properties of the member in whose
name they stand. 
Before we apply the above legal principles to the case, certain factual aspects
need to be noticed.
Under the registered document bearing No.2889/1956 dated 14.12.1956 (Ex.A1), 
late Mohd. Abbas Ali conveyed various properties to his surviving sons and the
sons of his pre-deceased son, Shaik Abdul Khader. This document has been styled 
in the pleadings as a gift deed but it appears to be more in the nature of a
settlement executed by Mohd. Abbas Ali in favour of his male progeny. The copy
of the original Telugu version of this document, which is placed on record, also
does not convey the meaning that it is a gift deed.
Though the concept of a family settlement amongst Mohammedans is not very  
common, there are instances when agreements in the nature of family arrangements 
are made which are not strictly akin to a family settlement. It is not necessary
that there must exist a dispute, actual or possible in the future, in respect of
each and every item of the property; and amongst all the members arrayed one
against the other, for the purpose of validating such an arrangement. It would
be sufficient if it is shown that there were actual or possible claims and
counter-claims by parties, in settlement whereof the arrangement as a whole has
been arrived at, thereby acknowledging title in one, to whom a particular
property falls on the assumption that he had an anterior title therein10.
Such a family arrangement, even amongst Mohammedans, would be binding between     
the parties inter se in the same manner such an arrangement would bind Hindus.
In MOHD. AMIN V/s VAKIL AHMAD11, the Supreme Court recognized by implication      
such an arrangement amongst members of a Muslim family to represent a family  
settlement.
Ex.A.1 makes it clear that out of love and affection, late Mohd. Abbas Ali
conveyed to his male progeny the scheduled immovable properties in the shares
apportioned thereunder. Defendant No.1 and plaintiff No.1 were given 1/3rd share
each. The grandsons, being the children of his pre-deceased son, were given a
1/3rd share and defendant No.1, being the eldest surviving son, was required to
take possession of their share in the capacity of their guardian. Defendant No.1
was to remain a guardian for the minor grandchildren and provide for their
nourishment and education and maintain the family. He was to deliver possession
of the 1/3rd share that fell to their lot after they attained majority.
Thus, Ex.A1 spelt out clearly the fiduciary obligations visited upon defendant
No.1 vis--vis the minors as well as the family. The requirements posited by
SHUKRULLAH5 and SK. KABIR8 were therefore fulfilled by this express contract. 
This document was admittedly acted upon as was recorded by the trial Court in
its judgment. There is no evidence to show that defendant No.1 did not assume
the role of the managing member of the family as was envisaged in Ex.A.1, after
the death of his father in 1957.
Further, Exs.A2 to A5 support the claim of the plaintiffs that defendant No.1
was the managing member of the family. Ex.A2, being a non-possessory mortgage   
deed dated 19.08.1960, was executed by defendant No.1 and plaintiff No.1.
Thereunder, they mortgaged various extents of lands settled under Ex.A1 for a
sum of Rs.9,000/-. It is pertinent to note that the reason for creating the
mortgage was also mentioned in clear terms therein, to the effect that the sum
of Rs.9,000/- was borrowed for discharging the loan due to one Y.Nagarattaiah
and for the purpose of purchasing the suit schedule property.
Similarly, Ex.A3 sale deed dated 17.10.1960 was executed by defendant No.1, 
plaintiff No.1 and on behalf of plaintiffs 2 to 4, represented by their guardian
and junior paternal uncle, defendant No.1. Thereby, they sold a part of the land
settled under Ex.A1 for a consideration of Rs.1,000/-. Once again, the reason
for the sale was stated to be for the purpose of meeting family expenses and for
paying the sale consideration in respect of the suit schedule property.
Ex.A4 is a registered mortgage deed dated 19.08.1960 executed by defendant No.1 
and plaintiff No.1. Thereunder, for the purpose of discharging loans incurred
for family needs and for purchasing the suit schedule property, they borrowed a
sum of Rs.9,000/- on the security of the properties mortgaged thereunder. These
properties also were those settled under Ex.A1.
Ex.A5 is a registered sale deed dated 17.10.1960, whereunder plaintiff No.1 and
defendant No.1, acting on behalf of himself and as the guardian of plaintiff
Nos.2 to 4, sold the land scheduled therein for a sum of Rs.1,500/- to meet
family expenses and for paying the sale consideration in respect of the suit
schedule property. Exs.A6, A7 and A8 also appear to be registered sale deeds
executed by and on behalf of the plaintiff No.1, defendant No.1 and plaintiff
Nos.2 to 4, but they are subsequent in point of time, all dated 25.07.1967, and
may be of no relevance to the present controversy. In any event, copies thereof
have not been made available.
Ex.A9 is the registered sale deed, whereunder defendant No.1 purchased in his
own name the suit schedule property from Kommuri Sambasiva Rao for a  
consideration of Rs.30,000/-. Kommuri Sambasiva Rao recorded therein that
Rs.12,500/- out of the sale consideration had been received by him and that the
balance of Rs.17,500/- was secured by a promissory note executed in his favour
by defendant No.1. The sale deed further recorded that physical possession of
the suit schedule property was delivered on that date.
In the light of the clear recitals in Exs.A2 to A5 to the effect that the
proceeds thereof were intended to be used for payment of the sale consideration
in respect of the suit schedule property, the lower Court was not correct in
tersely brushing aside the same. Exs.A2 to A5, being registered documents
anterior in point of time to Ex.A9, the recitals therein carried weight and
could not be doubted lightly. Once these documents recorded that the amounts
raised thereunder were intended for payment of the sale consideration under
Ex.A9, the presumption would weigh in favour of the same having been acted upon.
That apart, there is no material to suggest that defendant No.1 had any other
independent source of income apart from the properties held by him as the
managing member of the family, on behalf of himself and the other members. It
can therefore be safely assumed that the part-sale consideration of Rs.12,500/-,
receipt of which was recorded in Ex.A9, was sourced from the mortgage/sale
proceeds of the joint properties settled on the family members under Ex.A1. It
is an admitted fact that the balance sale consideration of Rs.17,500/- was not
remitted by defendant No.1 which led to the filing of a suit, O.S.No.24 of 1964,
by  Kommuri Sambasiva Rao. It is also admitted that defendant No.5, who was a 
party to the said suit, paid the balance sale consideration upon the decretal of
the suit.
Ex.B1 agreement of sale executed by defendant No.1 in favour of defendant No.5
stated to the effect that the suit schedule property was agreed to be sold for a
sale consideration of Rs.64,000/-. However, the said document recorded receipt
of only a sum of Rs.8,660-72 Ps. and the balance sale consideration was shown as
Rs.55,339-28 Ps. The said amount was to be paid by defendant No.5 by the end of 
the December of that year, whereupon defendant No.1 promised to execute a proper 
sale deed either in the name of defendant No.5 or the person/persons nominated
by him. The agreement also recorded that possession of the suit schedule
property was delivered thereunder. There is no dispute at this stage that the
property was in fact so delivered to defendant No.5 who enjoyed the same, be it
in his own right or through tenants, till the execution of the registered sale
deed in favour of his sons in the year 1974.
Prior thereto, under the endorsements (Exs.B2 to B4) made on Ex.B1, defendant 
No.1 recorded receipt of additional part-sale consideration from defendant No.5.
Ex.B2 is the endorsement dated 18.10.1963 evidencing receipt of a sum of
Rs.17,000/- towards the sale consideration. Ex.B3 is the endorsement dated
18.02.1964 acknowledging receipt of Rs.12,876/- towards the sale consideration
in the form of the amounts spent by defendant No.5 upon the repairs of the suit
schedule property and the discharge of debts of defendant No.1. Ex.B4
endorsement is dated 05.03.1964 and records receipt of Rs.10,382-80 Ps,
comprising various sums disbursed by defendant No.5 on behalf of defendant No.1.
The registered sale deed dated 02.04.1974 (Ex.A10/Ex.B8) makes for an 
interesting reading. Thereunder, defendant No.1 sold the suit schedule property
to defendant Nos.2 to 4, the sons of defendant No.5. The sale consideration was
mentioned as Rs.40,000/-, details whereof were spelt out as under:
Rs.5,000/-
From out of the sale consideration I caused one sale delivery receipt executed
on his name your father on the date of sale and took from him as advance.
Rs.5,000/-
That as I caused this amount paid through your father on 19.7.1964 for the
purpose of canceling the sale contract executed by me on 19.7.1963 in favour of
Mymunnissa Begum Saheba w/o Mohammad Khasim Hussain r/o Battiprolu.       
Rs.4,000/-
That for the money payable by me towards debt of Tummala Venkataram r/o Kovvur,  
I caused this amount paid on 18.10.63 through your father.
Rs.1,000/-
That for the money payable by me towards the debt of Yuddanapudi Ramaswamy, r/o   
Sangupalem Koduru, I caused this amount paid through your father on 18.10.63.
Rs.25,000/-
That Kommuri Sambasiva Rao, r/o Ponnuru and others have instituted one suit
O.S.24/64 against me and your father, on the file of Sub-Court, Bapatla, as I
caused this amount paid through your father on my behalf to the aforesaid
Sambasiva Rao and others in Bapatla Sub-Court towards court decree dated 
26.11.1964.

The above recitals demonstrate that the sum of Rs.25,000/- was paid by defendant
No.5 on behalf of defendant No.1 to Kommuri Sambasiva Rao, pursuant to the Court 
decree dated 26.11.1964 in O.S.No.24 of 1964. A separate sale deed (Ex.B5) was 
executed on 02.04.1974 in respect of the movables and machinery installed in the
suit mill and the sale consideration in respect thereof was stated to
Rs.21,000/-. Reference is made therein to the receipt of sale consideration of
Rs.3,000/- for conveying an extent of 7,426 square feet of land which was
purchased by defendant No.1 without a registered document and which was  
delivered to defendant Nos.2 to 4 on the assurance of getting the document
registered in their favour. The total consideration therefore came to
Rs.64,000/-.
An overview of the above facts demonstrates that part of the sale consideration
for the suit schedule property came out of the income/proceeds arising out of
the joint properties settled under Ex.A.1. To that extent, the plaintiffs
undoubtedly could claim rights and interest in the suit schedule property.
The question however is whether their rights and interest would be limited only
to that portion of the suit schedule property relatable to the part-sale
consideration paid out of the joint funds of the family.
Though the precepts of Hindu Law have no strict application to the case on hand,
useful reference may be made to the judgment of a Division Bench of the Madras
High Court in S.PERIANNAN V/s. COMMISSIONER OF INCOME-TAX12. The Madras High            
Court was dealing with a case where a Hindu coparcener had acquired a property
with the aid/assistance of joint family funds. However, the aid/assistance only
accounted for a lesser part of the sale consideration. The issue was whether the
entire property would take on the character of a joint family property or
whether it could be claimed as a self-acquisition. Relying on the principle that
whatever is acquired by the coparcener himself, without detriment to the
father's estate, would not appertain to the co-heirs, the Division Bench held
that property acquired by a coparcener with the aid or assistance of joint
family assets would be impressed with the character of joint property. To
constitute self-acquired property, such acquisition should have been without the
assistance or aid of joint family property. Relying on the Division Bench
judgment of the Allahabad High Court in MANGAL SINGH V/s. HARKESH,13 the      
Division Bench held that whatever may be the extent of contribution of the
acquiring member himself out of his own funds, if he took the aid of any portion
of the joint or ancestral property in acquiring such property, however small
that aid may be, the property so acquired would assume the character of joint
family property and cannot be claimed by him as a self-acquisition. In that view
of the matter, the Court was of the opinion that the extent of his contribution
or that of the family fund would become immaterial. If any help is taken from
the family property, it is enough to make the self-acquired property the
property of the family.
Though the aforestated decision arose in the context of Hindu Law, the principle
enunciated therein would have application to the case on hand as defendant No.1
also stood under a fiduciary obligation to the other members of the family, akin
to the karta of a Hindu joint family, and as spelt out supra, property acquired
by him with the aid, even in part, of the joint funds would invariably have to
be treated as joint property.
Once part of the sale consideration under Ex.A9 came out of the joint funds, the
said property inevitably took on the character of joint property. We are
fortified in this view by the fact that the sale deed (Ex.A10/Ex.B8) records the
fact that defendant No.5 remitted the balance sale consideration due to the
vendor, Kommuri Sambasiva Rao, on behalf of defendant No.1 and not in his own 
right. The property was conveyed in its entirety under Ex.A9 only to defendant
No.1, who purchased it during the commensality and jointness of the family,
consequent upon the settlement under Ex.A1, and with the aid of joint funds.
Therefore, the fact that only part of the sale consideration was paid out of the
joint funds of the family would not deviate from or dilute the character of
jointness bestowed upon the property purchased under Ex.A9. 
By the very nature of their claim and pleadings, the plaintiffs demonstrated
that they were inimical to defendant No.1. It was therefore for defendant Nos.2
to 5 to discharge the onus which had shifted on to them to adduce such evidence
as was necessary to prove the validity of the transaction whereunder they were
claiming the suit schedule property. That being the situation, we are not
inclined to draw any adverse inference against the plaintiffs for their failure
to examine defendant No.1, who was admittedly in jail during the trial.
We therefore hold that the plaintiffs more than adequately discharged the burden
resting upon them to prove the suit claim. As the foundation for the purchase
was sourced from the joint funds of the family by payment of the part-sale
consideration, payment of the balance sale consideration thereafter by a
subsequent vendee for and on behalf of the former vendee, the managing member of
the family, would not alter the fact that such property would take on the
character of joint property.
We therefore concur with the view taken by learned single Judge in all respects.
Consequently, we affirm that the plaintiffs are entitled to a 2/3rd share in the
suit schedule property and that defendant No.1 had no right or entitlement to
sell away their share to defendant Nos.2 to 4. The learned Judge was therefore
fully justified in passing a preliminary decree for partition of the suit
schedule property into three shares, for allotment of two such shares to the
plaintiff No.1 and Plaintiff Nos.2 to 4 respectively and for taking necessary
further steps in the suit.
The appeal is devoid of merit and is accordingly dismissed with costs.

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MADAN B.LOKUR, CJ.     



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SANJAY KUMAR, J.    
1ST MARCH, 2012.   

Note: L.R.Copy to be marked - Yes/No. 
B/O 
PGS/VGSR    
        After the judgment was pronounced, learned counsel for the respondents
requested for quantification of costs.
        We quantify the costs at Rs.10,000/- (Rupees ten thousand only) to be paid
to the respondents within six weeks from today.


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MADAN B.LOKUR, CJ     



--------------------------
SANJAY KUMAR, J    
1st March, 2012