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Thursday, August 15, 2013

Hindu succession Act - scope of sec. 6 and sec. 8 = a suit for declaration that sale deed dated 19.6.1993 executed by respondent No.2 in favour of respondent No.1 is illegal, void, without jurisdiction and inoperative on the rights of the appellant with consequential relief of possession and permanent prohibitory injunction. = 1. Whether in the facts and circumstances of the case the property in dispute has devolved upon the heirs of Baba Surinder Singh Bedi under proviso to Section 6 of the Hindu Succession Act. 2. Whether in view of the proviso of Section 6 of the Hindu Succession Act the succession of property of Baba Surinder Singh Bedi on his heirs under Section 8 of the Hindu Succession Act will change the nature and nomenclature of property from ancestral/coparcenary property to that of self acquired property. = “6. When a male Hindu dies after the commencement of this Act, having at the time of his death an interest in a Mitakshara coparcenary property, his interest in the property shall devolve by survivorship upon the surviving members of the coparcenary and not in accordance with this Act: Provided that, if the deceased had left his surviving a female relative specified in Class I of the Schedule or a male relative, specified in that class who claims, through such female relative, the interest of the deceased in the Mitakshara coparcenary property shall devolve by testamentary or intestate succession, as the case may be, under this Act and not by survivorship. Explanation I. – For the purposes of this section, the interest of a Hindu Mitakshara coparcener shall be deemed to be the share in the property that would have been allotted to him if a partition of the property had taken place immediately before his death, irrespective of whether he was entitled to claim partition or not.” The interest of Nanak Chand shall be deemed to be the share in the property that would have been allotted to him if a partition of the property had taken place immediately before his death irrespective of whether he was entitled to claim partition or not. In view of Explanation I of Sec. 6, Nanak Chand would have got 1/5th interest on partition between him and his wife and three sons. If once the interest of Nanak Chand is determined to be 1/5th before his death, his interest would devolve upon his widow, three sons and three daughters equally and thus the share of each one of them would be 1/5 x 1/7, that is, 1/35th each. The claim of these heirs cannot be denied merely because some of them have not advanced the claim. When the question of determination of share among the heirs crops up before the Court, the Court has to see that every heir gets his due. Shri Itorora appearing for the respondents could not successfully meet the point raised on behalf of the appellant.” = The bare perusal of Section 6 of the Act makes it clear that in this situation the estate of Baba Surinder Singh would devolve under Section 8 and not under Section 6 of the Act. In view of law laid down by the Supreme Court in the aforesaid judgments, respondent No.2 would inherit his share in the estate of late Baba Surinder Singh in his individual capacity and not alongwith his son appellant. Once this is the position then the appellant has no right to assail the sale dated 19.6.1993 made by respondent No.2 in favour of respondent No.1.

published in http://164.100.138.36/casest/generatenew.php?path=data/judgment/2013old/&fname=RSA4822000.pdf&smflag=N

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
 R.S.A.No. 482 of 2000.
 Judgment reserved on : 6.5.2010
 Date of decision : 14.6. 2010.
 Capt. Arminder Singh Bedi (Amninder Singh Bedi) ..Appellant.
 Versus
Guru Nanak Dev University and another . ..Respondents.
Coram
The Hon’ble Mr. Justice Kuldip Singh, Judge.
Whether approved for reporting ?1
 Yes
For the appellant : Mr. Ajay Kumar with Mr. Suneet
 Goel, Advocates .
For the respondents. : Mr. K.D.Sood, Advocate for
 respondent No.1.
 Mr. M.A.Khan, Advocate vice
 Mr. Vijay Pandit, Advocate for
 respondent No.2.
Kuldip Singh , Judge
The plaintiff has come in second appeal against the
judgment, decree dated 18.7.2000 passed by learned District Judge,
Chamba in Civil Appeal No. 58 of 1999 reversing judgment, decree dated
29.7.1999 passed by the learned Sub Judge 1st Class, Dalhousie in Civil
Suit No. 69 of 1994.
 2. The facts, in brief, are that the appellant had filed a suit for 
declaration that sale deed dated 19.6.1993 executed by respondent No.2 in favour of respondent No.1 is illegal, void, without jurisdiction and 
1
Whether reporters of Local Papers may be allowed to see the Judgment ?. yes
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inoperative on the rights of the appellant with consequential relief of possession and permanent prohibitory injunction. The respondent No.1
was defendant No.2 and respondent No.2 was defendant No.1 in the suit.

3. The further case of the appellant is that he constituted a coparcenary and joint Hindu family with respondent No. 2 and they are coparceners.
The pedigree table relied by the appellant in the plaint is as
follows:

                                          Baba Surinder Singh
Avinder Singh (predeceased)  
Harinder Singh Bedi  
Gurdeep Singh Bedi
Manmohan
A.S. Bedi
Singh Bedi
(Defendant
No.1)
Sardool
Singh Bedi
Raj (Widow) Gajinder
Singh (Son)
Amninder
Singh
(Plaintiff)

4. It is the case of the appellant that Sajjad Villa more 
particularly described in the plaint was recorded in the ownership of Baba Surinder Singh Karta of family and common ancestor of appellant 
and respondent No.2. Baba Surinder Singh died on 19.1.1988 and after his death the suit property was inherited by joint Hindu family of 
appellant and respondent No.2 and came in the hands of respondent No.2 being Karta of the joint Hindu family of the appellant and respondent No.2. They are coparceners and the suit property is coparcenary property of appellant and respondent No.2. 
5. The respondent No.2 had wasteful nature.
The respondent No.2 sold the suit property on 19.6.1993 without any legal necessity of the family at throw-away price. 
The sale consideration was wasted and
was not spent on the joint Hindu family. The transfer of the suit property
was a great loss to the Hindu Undivided Family. The appellant
requested the respondents not to waste the property by transfer or sale
but they refused to accede to the request of the appellant.
  On 2.8.1993 
the appellant requested respondent No.1 to return the possession and cancel the transfer deed but without any positive result hence the suit was filed for declaration, possession and injunction as noticed above. 
6. The suit was contested by respondent No.2 by filing written
statement. He admitted the pedigree table, description of the property.
He denied that suit property was sold without legal necessity. He has also
denied that sale consideration was not spent on the joint Hindu family.
He prayed for dismissal of the suit.
7. The respondent No.1 also contested the suit by filing written 
statement and took preliminary objections of maintainability, jurisdiction of the Court to try the suit, appellant all the time had been assisting his father for selling the property to respondent No.1, he was even present alongwith his mother at the time of registration of the sale deed before Sub Registrar and, therefore, on account of his conduct he is debarred from assailing the sale, the suit has been filed by appellant in collusion with respondent No.2. On merits, it has been denied that appellant and 
respondent No.2 constitute co-parcenary and they are members of the 
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joint Hindu Family. 
The respondent No.2 was the sole owner of Sajjad 
Villa after the death of late Baba Surinder Singh. The property was inherited by respondent No.2 not as Karta of the Hindu Undivided Family. It has been denied that the property was not sold for legal
necessity or sale consideration was not utilized for the benefit of the
family.
8. The respondent No.2 entered into an agreement with
respondent No.1 for sale of the property on 19.6.1991, thereafter
respondent No.1 obtained permission from Government of Himachal
Pradesh to purchase the building and after receiving the permission the
sale deed was executed by respondent No.2 in favour of respondent No.1
through his wife who was having special power of attorney to execute the
sale deed. The appellant accompanied her mother at the time of
registration of the sale deed. The suit is collusive with respondent No.2
The respondent No.1 prayed for dismissal of the suit.
9. On the pleadings of the parties, the following issues were
framed:-
1. Whether the sale deed dated 19.6.1993 executed by
defendant No.1 in favour of defendant No.2 is illegal,
void and without jurisdiction? .. OPP.
 2. Whether the suit property is a co-parcenary property 
as alleged? ..OPP.
 3. Whether the alienation made by defendant No.1 in
favour of defendant No.2 is without legal necessity as
alleged? …OPP.
4. Whether the plaintiff is entitled to the injunction as
prayed? .. OPP
5. Whether the suit is not maintainable ? OPD-2.
6. Whether this Court has no jurisdiction ? OPD-2.
7. Whether the plaintiff is estopped by his act and
conduct? …OPD-2.
8. Whether the suit has collusively been filed as alleged?
 …OPD-2.
9. Relief.
The issues No. 1 to 4 were answered in affirmative and issues No. 5 to
8 in negative and the suit was decreed by learned Sub Judge on
29.7.1999 and a decree for declaration was passed in favour of the
appellant declaring sale deed dated 19.6.1993 null and void and
respondents were restrained from alienating the suit property to
anybody. The decision dated 29.7.1999 was assailed in appeal by
respondent No.1 and learned District Judge on 18.7.2000 allowed the
appeal and set-aside judgment, decree dated 29.7.1999 passed by
learned Sub Judge. In these circumstances, the plaintiff has come in
second appeal which has been admitted on the following substantial
questions of law:
1. Whether in the facts and circumstances of the case the 
property in dispute has devolved upon the heirs of Baba 
Surinder Singh Bedi under proviso to Section 6 of the Hindu 
Succession Act. 
2. Whether in view of the proviso of Section 6 of the Hindu 
Succession Act the succession of property of Baba Surinder 
Singh Bedi on his heirs under Section 8 of the Hindu 
Succession Act will change the nature and nomenclature of 
property from ancestral/coparcenary property to that of self 
acquired property.
10. I have heard Mr. Ajay Kumar, Advocate, learned counsel for
the appellant, Mr. K.D.Sood, Advocate, learned counsel for respondent
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No.1 and Mr. M.A.Khan, Advocate, learned counsel appearing on behalf
of respondent No.2 and have also gone through the record. The learned
counsel for the appellant has submitted that the suit property has been
proved to be coparcenary property which was at one point of time owned
by Baba Surinder Singh who died on 19.1.1988. Late Baba Surinder
Singh was the common ancestor of respondent No.2 and appellant who
are father and son. The suit property in the hands of respondent No.2 on
19.6.1993 at the time of sale was ancestral /coparcenary property with
appellant a member of coparcenary headed by respondent No.2. The
sale being without legal necessity, therefore, appellant has every right to
assail the sale dated 19.6.1993. He has submitted that learned Sub
Judge had rightly decreed the suit of the appellant but learned District
Judge has mis-construed, misinterpreted Sections 6, 8 of the Hindu
Succession Act, 1956 (for short ‘Act’). The learned counsel for the
appellant has submitted that respondents have failed to prove legal
necessity. He has submitted for acceptance of the appeal, setting-aside
of impugned judgment, decree and restoration of the judgment and
decree passed by learned Sub Judge.
11. The learned counsel for respondent No.1 has submitted that
the suit property in the hands of respondent No.2 on 19.6.1993 was not
ancestral / coparcenary property. The sale deed executed by respondent
No.2 in favour of respondent No.1 on 19.6.1993 is legal. He has
submitted that appellant actively participated in the execution of the sale
deed and, therefore, appellant is debarred from questioning the sale
deed. He has supported the impugned judgment, decree. The learned
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counsel for respondent No.2 has supported the impugned judgment,
decree.
12. The above substantial questions of law No.1 and 2 are interconnected, therefore, both of them can be conveniently considered and
disposed of collectively. Ex.P-1 is the copy of sale deed dated 19.6.1993
vide which respondent No.2 through his attorney has sold Sajjad Villa to
respondent No.1 for a consideration of Rs. 10,00,000/- which was
registered on 19.6.1993 before Sub Registrar, Dalhousie. As per sale
deed Ex.P-1 Sajjad Villa is situate on khasra Nos. 2127, 2128, 2129,
2130, 2132 and 2133. Ex.P-2 is the Missal Haquiat in which Surinder
Singh S/o Gurbax Singh is shown owner in possession of the suit
property. In remarks column of Ex.P-2 it has been stated that vide
mutation No. 48 of partition dated 20.9.1991 as per order of A.C. IInd
Grade khasra No. 2127 to 2131 and Khasra No. 2133, Kittas 6, total
measuring 0-54-46 hectares was attested in favour of Manmohan Singh
S/o Surinder Singh. Ex.P-3 is the copy of Jamabandi for the year 1992-
93 indicating suit property is owned and possessed by Surinder Singh S/o
Gurbax Singh. In remarks column of Ex.P-3 reference of mutation No. 48
of partition has been given. In remarks column, it has further been stated
that vide mutation No. 125 suit property has been sold by Manmohan
Singh in favour of Guru Nanak Dev University for Rs. 10,00,000/- and the
mutation was attested on 30.9.1994. Ex.DW-1/B is the application under
Section 14 of the Indian Arbitration Act for making award dated 27.6.1988
as rule of the Court. The award dated 27.6.1988 was made rule of the
court on 7.10.1988 by the learned Sub Judge, Jalandhar in arbitration
case No. 125 of 1988. There is no denial of the fact that the suit property
at one point of time was owned by Baba Surinder Singh father of
respondent No.2 and grand-father of appellant, who died on 19.1.1988.
The suit property alongwith other properties were partitioned by way of
award dated 27.6.1988 which was made rule of the Court on 7.10.1988.
The suit property fell to the share of respondent No.2.
13. The question is what was the character of suit property in
the hands of respondent No.2 when it fell to his share by way of award
dated 27.6.1988. The learned counsel for the appellant has contended
that character of suit property in the hands of respondent No.2 after
award remained ancestral qua appellant. He has every right to question
the sale dated 19.6.1993 made by respondent No.2 in favour of
respondent No.1 as the sale was without the consent of appellant and
without legal necessity. Per contra, the learned counsel for respondent
No.1 has submitted that property after the death of common ancestor
Baba Surinder Singh on 19.1.1988 and partition award dated 27.6.1988
in the hands of respondent No.2 had lost the character of
ancestral/coparcenary property and, therefore, respondent No.2 had
every right to sell the suit property to respondent No.1 for consideration.
14. Intestate succession of Hindu is provided in Chapter II of the
Act. Section 6 of the Act at the relevant time was as follows:-
“Devolution of interest in coparcenary property.- When a male
Hindu dies after the commencement of this Act, having at the time
of his death an interest in a Mitakshara coparcenary property, his
interest in the property shall devolve by survivorship upon the
surviving members of the coparcenary and not in accordance with
this Act:
 Provided that , if the deceased had left him surviving a
female relative specified in class 1 of the Schedule or a male
relative specified in that class who claims through such female
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relative, the interest of the deceased in the Mitakshara
coparcenary property shall devolve by testamentary or intestate
succession, as the case may be, under this Act and not by
survivorship.
Explanation 1. – For the purposes of this section, the
interest of a Hindu Mitakshara coparcener shall be deemed to be
the share in the property that would have been allotted to him if a
partition of the property had taken place immediately before his
death, irrespective of whether he was entitled to claim partition or
not.
 Explanation 2. – Nothing contained in the proviso to this
section shall be construed as enabling a person who has
separated himself from the coparcenary before the death of the
deceased or any of his heirs to claim on intestacy a share in the
interest referred to therein.”
The Section 8 of the Act is as follows:-
 “General rules of succession in the case of males. – The property of
a male Hindu dying intestate shall devolve according to the
provisions of this Chapter –
(a) firstly, upon the heirs, being the relatives specified in class I of the
Schedule ;
(b) secondly, if there is no heir of class I, then upon the heirs, being the
relatives specified in class II of the Schedule;
(c) thirdly, if there is no heir of any of the two classes, then upon the
agnates of the deceased ; and
(d) lastly, if there is no agnate, then upon the cognates of the
deceased.”
15. The appellant in para 2 of the plaint has pleaded that Baba
Surinder Singh had died on 19.1.1988. Thus, the succession regarding
the estate of Baba Surinder Singh common ancestor of appellant and
respondent No.2 had opened on 19.1.1988. There is nothing on record
how Baba Surinder Singh had acquired the property including the
property in dispute, but it is not of much significance inasmuch as it is
nobody’s case that the property of late Baba Surinder Singh was to
devolve on his successors by some mode other than succession provided
under the Act.
16. The question of interpretation of Sections 4, 6 and 8 of the
Act has come up for decision in several cases in the past. In
Shrivallabhdas Modani Vs. Commissioner of Income Tax, M.P.-1, 138
ITR 673 the question No.2 referred to the High Court for decision was as
follows:-
“Whether the property which devolved on Shri Shrivallabhdas on
the death of his father, Gokalchand, also constituted the HUF
property consisting of his own branch including his sons.”
The High Court after noticing Sections 4, 8 of the Act has held as
follows:-
 “Section 8 of the Hindu Succession Act lays down the scheme of
succession to the property of a Hindu dying intestate. The
schedule classifies the heirs on whom such property shall
devolve. Those specified in class I take simultaneously to the
exclusion of all other heirs. A son’s son is not mentioned as an
heir under class I of the Schedule and, therefore, he cannot get
any right in the property of his grandfather under this provision.
The right of a son’s son in his grand father’s property during the
lifetime of his father which existed under the Hindu law as in force
before the Act, is not saved expressly by the Act and, therefore, the
earlier interpretation of Hindu law giving a right by birth in such
property “ceased to have effect”.
The High Court ultimately held as follows :-
“We, therefore, answer question No.2 as follows: The property
which devolved on the assessee, Shrivallabhdas on the death of
his father, Gokalchand, did not constitute the HUF property
consisting of his own branch including his sons. The answer is in
the negative and against the assessee.”
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17. The question before the Division Bench of Andhra Pradesh
High Court in Commissioner of Wealth Tax, A.P.-II Vs. Mukundgirji,
144 ITR 18 was as follows:-
 “Whether, on the facts and in the circumstances of the case, the
properties devolved on the assessee on his father’s death are
assessable in the status of ‘Individual’ or in the status of ‘Hindu
undivided family’?”
The High Court after noticing several provisions of the Act held as
follows:
“Accordingly, we are of the opinion that the properties which
devolve upon a heir mentioned in class I of the Schedule under S.
8 constitute his absolute properties, and that his sons have no
right by birth in such properties and cannot, therefore, claim any
share or sue for partition of such properties.”
The High Court ultimately answered the question as follows:-
 “For the above reasons, we answer the question referred to us in
the following words: The properties which devolved upon the
assessee on his father’s death are assessable in the status of
“individual’ and not in the status of ‘Hindu undivided family”
comprising of the assessee and his son or sons, as the case may
be. The answer shall be in favour of the Department and against
the assessee. There shall be no order as to costs.”
18. The remarks column of Ex.P-3 jamabandi for the year 1992-
93 indicates that mutation of succession No.47 on the death of Baba
Surinder Singh was attested on 31.7.1991. The estate of Baba Surinder
Singh was mutated in favour of Sardool Singh, Manmohan Singh, Anup
Singh, Harinder Singh, Gurdeep Singh sons of Surinder Singh S/o
Gurbax Singh equal share five shares, Gajinder Singh, son and Smt. Raj
widow of Abhininder Singh son of Surinder Singh equal share one share.
It is thus clear on the death of Surinder Singh, Gajinder Singh, son and
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Smt. Raj, widow of Abhininder Singh son of Surinder Singh also
succeeded to the estate of Surinder Singh.
19. In Gurupad Khandappa Magdum Vs. Hirabai Khandappa
Magdum and others, AIR 1978 S.C. 1239, Section 6 of the Act was
considered and the Court has held as follows:-
 ”The Hindu Succession Act came into force on June 17, 1956.
Khandappa having died after the commencement of that Act, to wit
in 1960, and since he had at the time of his death an interest in
mitakshara coparcenary property, the pre-conditions of S. 6 are
satisfied and that section is squarely attracted. By the application
of the normal rule prescribed by that section, Khandappa’s
interest in the coparcenary property would devolve by survivorship
upon the surviving members of the coparcenary and not in
accordance with the provisions of the Act. But, since the widow
and daughter are amongst the female relatives specified in Class I
of the Schedule to the Act and Khandappa died leaving behind a
widow and daughters, the proviso to S. 6 comes into play and the
normal rule is excluded. Khandappa’s interest in the coparcenary
property would therefore devolve, according to the proviso, by
intestate succession under the Act and not by survivorship.
Testamentary succession is out of question as the deceased had
not made a testamentary disposition though, under the
explanation to S. 30 of the Act, the interest of a male Hindu in
mitakshara coparcenary property is capable of being disposed of
by a will or other testamentary disposition.”
20. The devolution of coparcenary property under Section 6 was
again considered by the Apex Court in Smt. Raj Rani Vs. The Chief
Settlement Commissioner, Delhi and others, AIR 1984 S.C. 1234 and
in para 17 of the report the Court has held as follows:-
 “There is no dispute that Nanak Chand died leaving behind his
widow, three sons and three daughters. Dewan Chand fraudulently
obtained an order alleging that Nanak Chand died leaving behind
only three sons. If Nanak Chand died after the enforcement of the
Hindu Succession Act, as found earlier, obviously his wodow, three
sons and three daughters would succeed to his interest in equal
shares, which would work out to 1/7th. Now, the question arises what
was the interest of Nanak Chand at the time of his death. As the
property in question was Mitakshara coparcenary property, his
interest would be determined in accordance with the provisions of
Explanation I of S.6 of the Hindi Succession Act. It would be
appropriate at this stage to read Sec. 6 insofar as it is material for
the purposes of this case:
 “6. When a male Hindu dies after the commencement of this Act, 
having at the time of his death an interest in a Mitakshara 
coparcenary property, his interest in the property shall devolve by 
survivorship upon the surviving members of the coparcenary and 
not in accordance with this Act: 
 Provided that, if the deceased had left his surviving a female 
relative specified in Class I of the Schedule or a male relative, 
specified in that class who claims, through such female relative, the interest of the deceased in the Mitakshara coparcenary property shall devolve by testamentary or intestate succession, as the case may be, under this Act and not by survivorship. 
 Explanation I. – For the purposes of this section, the interest of a 
Hindu Mitakshara coparcener shall be deemed to be the share in 
the property that would have been allotted to him if a partition of the property had taken place immediately before his death, irrespective of whether he was entitled to claim partition or not.” 
 The interest of Nanak Chand shall be deemed to be the share in the property that would have been allotted to him if a partition of the property had taken place immediately before his death irrespective of whether he was entitled to claim partition or not. In view of Explanation I of Sec. 6, Nanak Chand would have got 1/5th interest on partition between him and his wife and three sons. If once the interest of Nanak Chand is determined to be 1/5th before his death, his interest would devolve upon his widow, three sons and three daughters equally and thus the share of each one of them would be 1/5 x 1/7, that is, 1/35th each. The claim of these heirs cannot be denied merely because some of them have not advanced the claim. 
When the question of determination of share among the heirs 
crops up before the Court, the Court has to see that every heir gets 
his due. Shri Itorora appearing for the respondents could not 
successfully meet the point raised on behalf of the appellant.” 
21. The Supreme Court in Commissioner of Wealth-tax,
Kanpur vs. Chander Sen AIR 1986 SC 1753 in para 17 of the report
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has noticed the following views of the Andhra Pradesh High Court in 144
ITR 18 as follows :-
“Accordingly, we are of the opinion that the properties which 
devolve upon a heir mentioned in class I of the Schedule under S. 
8 constitute his absolute properties, and that his sons have no 
right by birth in such properties and cannot, therefore, claim any 
share or sue for partition of such properties.” 
The Supreme Court has further observed that aforesaid reasoning of the
High Court appearing at Pages 23 to 26 of Justice Reddy’s view in 144
ITR 18 appears to be convincing.
The Supreme Court in para 20 of the report has held as follows:
 “In view of the Preamble to the Act i.e. that to modify where 
necessary and to codify the law, in our opinion it is not possible 
when Schedule indicates heirs in Class I and only includes son and 
does not include son’s son but does include son of a predeceased 
son, to say that when son inherits the property in the situation 
contemplated by S. 8 he takes it as karta of his own undivided 
family. The Gujarat High Court’s view noted above, if accepted, 
would mean that though the son of a predeceased son and not the 
son of a son who is intended to be excluded under S. 8 to inherit, 
the latter would by applying the old Hindu law get a right by birth of the said property contrary to the scheme outlined in S. 8. 
Furthermore as noted by the Andhra Pradesh High Court the Act 
makes it clear by S. 4 that one should look to the Act in case of 
doubt and not to the pre-existing Hindu law. It would be difficult to 
hold today the property which devolved on a Hindu under S.8 of 
the Hindu Succession Act would be HUF property in his hand vis-à-vis his own son; that would amount to creating two classes among the heirs mentioned in Class I, the male heirs in whose hands it will be joint Hindu family property and vis-à-vis son and female heirs with respect to whom no such concept could be applied or contemplated. It may be mentioned that heirs in Class I of 
Schedule under S. 8 of the Act included widow, mother, daughter 
of predeceased son etc.” 
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The Supreme Court in Commissioner of Wealth-tax (supra) has
considered 138 ITR 673, 144 ITR 18 and approved the views expressed
by Madhya Pradesh High Court and Andhra Pradesh High Court.
22. In Yudhishter Vs. Ashok Kumar AIR 1987 S.C. 558, the
Supreme Court considered the question
whether respondent was a
licensee of his father or a co-owner of the property namely ancestor
house. The Supreme Court in para 10 of the report has held as follows:-
“This question has been considered by this Court in Commr. Of
Wealth Tax, Kanpur v. Chander Sen, (1986) 3 SCC 567 : (AIR 1986
SC 1753), where one of us (Sabyasachi Mukharji, J.) observed that
under the Hindu Law, the moment a son is born, he gets a share in
father’s property and becomes part of the coparcenary. His right
accrues to him not on the death of the father or inheritance from
the father but with the very fact of his birth. Normally therefore,
whenever the father gets a property from whatever source from
the grandfather or from any other source, be it separate property
or not, his son should have a share in that and it will become part
of the joint Hindu family of his son and grandson and other
members who form joint Hindu family with him. This Court
observed that this position has been affected by Section 8 of the
Hindu Succession Act 1956 and, therefore, after the Act, when the
son inherited the property in the situation contemplated by
Section 8, he does not take it as Kar of his own undivided family
but takes it in his individual capacity. At pages 577 to 578 (of SCC)
(at p.1760 of AIR) of the report this Court dealt with the effect of
Section 6 of the Hindu Succession Act 1956 and the commentary
made by Mulla, 15th Edn. Pages 924-926 as well as Mayne’s on
Hindu Law 12th Edition pages 918-919. Shri Banerji relied on the
said observations of Mayne on ‘Hindu Law’, 12th Edn. At pages 918-
919. This Court observed in the aforesaid decision that the views
expressed by the Allahabad High Court the Madras High Court, the
Madhya Pradesh High Court and the Andhra Pradesh High Court
appeared to be correct and was unable to accept the views of the
Gujarat High Court. To the similar effect is the observation of
learned author of Mayne’s Hindu Law, 12th Edn. Page 919. In that
view of the matter it would be difficult to hold that property which
devolved on a Hindu under Section 8 of the Hindu Succession Act,
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16
1956 would be HUF in his hand vis-à-vis his own sons. If that be
the position then the property which devolved upon the father of
the respondent in the instant case on the demise of his grandfather
could not be said to be HUF property. If that is so, then the
appellate authority was right in holding that the respondent was a
licensee of his father in respect of the ancestral house.”
23. The learned counsel for the appellant has relied Ruli Ram
(deceased) through L.R. and others Vs. Amar Singh AIR 1994 H.P.
102 and has submitted that character of the property after partition in
the hands of respondent No.2 shall remain ancestral. He has relied para
23 of the report wherein the learned Single Judge has observed that
there is no doubt with the legal proposition that the share which a coparcener obtains on partition in an ancestral property is, in fact,
ancestral property as regards his male issues, they take an interest in it
by birth. The learned Single Judge in para 24 of the report has
observed:-
 “This position now stands affected after the Succession Act
became operative in 1956. The Succession Act has brought about
some fundamental and radical changes in law of succession,
which applied to Hindus by virtue of any text rule or interpretation
of Hindu Law or any custom or usage having the force of law prior
to 1956, which ceased to have any effect with respect to all matters
expressly dealt with in the Succession Act. In Chander Sen’s case
(supra) and in the subsequent decision in Yudhister Vs. Ashok
Kumar, AIR 1987 SC 558, the Supreme Court dealt with the
overriding effect of the express provisions of the Succession Act.
In Chander Sen’s case the apex court approved the view
expressed by the Allahabad High Court in Commissioner of Income
Tax U.P. Vs. Ram Rakshpal Ashok Kumar (1968) 67 ITR 164 (All)
and Khudi Ram Laba v. Commissioner of Income Tax, U.P. (1968)
67, ITR 364 (All) that the income from the assets inherited by son
from his father from whom he has separated by partition can be
assessed as income of the son individually since under S.8 of the
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Succession Act, the property of the father, who dies intestate
devolve on his son in his individual capacity and not as Karta of
his own family.”
24. The para 23 of Ruli Ram supra is of no help to appellant
inasmuch as in para 24 of the judgment, the learned Single Judge has
held that position now stands affected after the Succession Act became
operative in 1956. The learned Single Judge in Ruli Ram supra in para
25 of the report has held as follows:-
 “In the instant case, the ratio of the aforementioned judgment of
Chander Sen’s case will not apply, since what is claimed by the
learned counsel for the tenant herein is that prior to the coming
into force of the Succession Act, in the final decree passed in the
year 1951, Ruli Ram got a share in the coparcenary property, which
in his hand as Karta of the Joint Hindu Family property was
ancestral qua his sons, who got a right in coparceners,
possession of the residential portions were obtained by Ramesh
Chand and Suresh Kumar and not by the tenant Ruli Ram. This
submission made by the learned counsel for the tenant deserves
acceptance in view of the fact that the share which Ruli Ram got,
prior to coming into force of the Succession Act, in partition of
the ancestral property in the year 1951 was ancestral property as
regards his male issues. In the year 1980, during the life time of
Ruli Ram, possession was sought by one of his male issues as
coparcener, which was made a ground seeking eviction of the
tenant Ruli Ram. There is no evidence that he himself got vacant
possession of a residence.”
In Ruli Ram the rights were crystallized in the year 1951 before the
commencement of the Act whereas in the present case the appellant is
claiming his right in the property of his grand father after the death of
grand father which took place after the commencement of the Act. The
succession to the estate of Baba Surinder Singh common ancestor
opened on 19.1.1988 when he died, the mutation of his estate was
attested on 31.7.1991. The partition mutation was attested on 20.9.1991.
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18
The partition did not take place during the life time of Baba Surinder
Singh. In these circumstances, Ruli Ram supra does not support the plea
of appellant that property in dispute after the death of his grand father in
the hands of father of appellant will be ancestral / coparcenary property
qua appellant.
25. In Hari Singh Vs. Kishan Singh, 2001 (2) S.L.C. 56, the
learned Single Judge after noticing several judgments of the High Courts
and Supreme Court in para 32 of the report has held that the suit
property though ancestral but having come to the defendant under the
provisions of Section 8 of the Hindu Succession Act, would be individual
and separate property of the defendant and not joint with his son Kulbir
Singh.
26. The Section 4 of the Act gives over-riding effect over any
text, rule or interpretation of Hindu law or any custom or usage having
force of law immediately before the commencement of the Act. The
Section 6 of the Act as existed on 19.1.1988 when succession to the
estate of late Baba Surinder Singh opened provided that when a male
Hindu dies after the commencement of this Act, having at the time of his
death an interest in a Mitakshara coparcenary property, his interest in the
property shall devolve by survivorship upon the surviving members of the
coparcenary and not in accordance with this Act. But the proviso to
Section 6 further provides that if the deceased had left him surviving a
female relative specified in class 1 of the Schedule or a male relative
specified in that class who claims through such female relative, the
interest of the deceased in the Mitakshara coparcenary property shall
devolve by testamentary or intestate succession, as the case may be,
under this Act and not by survivorship.
27. The estate of Baba Surinder Singh was mutated in favour of
several persons including respondent No.2 and Smt. Raj vide mutation
No. 47 dated 31.7.1991. The mutation No. 47 has not been assailed by
the appellant. The bare perusal of Section 6 of the Act makes it clear that 
in this situation the estate of Baba Surinder Singh would devolve under 
Section 8 and not under Section 6 of the Act. In view of law laid down by 
the Supreme Court in the aforesaid judgments, respondent No.2 would 
inherit his share in the estate of late Baba Surinder Singh in his individual 
capacity and not alongwith his son appellant. Once this is the position 
then the appellant has no right to assail the sale dated 19.6.1993 made 
by respondent No.2 in favour of respondent No.1. 
28. DW-1 Baljeet Singh, Director Youth Welfare Service of Guru
Nanak Dev University, Amritsar has stated that at the time of registration
of sale deed, Registrar of Guru Nanak Dev University, he, wife of Colonel
Manmohan Singh were present. Capt. Amninder and his wife were also
present. Nobody objected at that time. This evidence has not been
rebutted by the appellant. This indicates that the appellant even
otherwise accepted the sale deed dated 19.6.1993 made by respondent
No.2 in favour of respondent No.1. The learned District Judge has rightly
appreciated the material on record. There is no perversity in the
impugned judgment, decree. The substantial questions of law No. 1 and 2
are decided against the appellants.
29. No other point was urged.
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20
30. The result of the above discussion, the appeal fails and is
accordingly dismissed with no order as to costs.

                                                                                H.

Hindu succession Act sec. 8 order of succession = In the personal/ self acquired property of Grand father, No Grand son can file a suit for partition against his father as the property fell to the father is his personal property and as the grand son is not the class I heir = A serious objection to the maintainability of the suit has been filed by the grandchildren of late Sh. Vilayati Ram Sikri in the life time of their father.= The present suit has been filed by Gaurav Sikri and Khushal Sikri, who are both minor sons of the defendant No.2. The suit has been filed through their mother Smt. Neha Sikri.= as per the averments made in the plaint late Sh. Vilayati Ram Sikri was the owner of the suit properties- on the death of late Sh. Vilayati Ram Sikri his heirs succeeded to the same as per the law of succession. In view of the Hindu Succession Act, 1956, the plaintiffs would not fall in the category of Class I heirs and only their father (defendant No.2) would be entitled to inherit CS(OS)944/2004 Page No.3 of 8along with his brothers, sister and mother. = In view of the preamble to the Act, i.e., that to modify where necessary and to codify the law, in our opinion it is not possible when Schedule indicates heirs in class I and only includes son and does not include son's son but does include son of a predeceased son, to say that when son inherits the property in the situation contemplated by Section 8 he takes it as karta of his own undivided family. - late Sh. Vilayati Ram Sikri was the owner of the suit properties and that upon his death the same were inherited by his legal heirs. That being the case, the decision of the Supreme Court in the case of Wealth Tax Commissioner v. Chander Sen (supra) would be clearly applicable and, therefore, the plaintiffs being the grandsons would not have any share in the property left by late Sh. Vilayati Ram Sikri during the life time of the defendant No.2 (Rajesh Sikri). Consequently, the plaint, on the basis of the averments made therein, does not disclose any cause of action and the same is accordingly rejected.

published in http://lobis.nic.in/dhc/BDA/judgement/07-11-2007/BDA24092007S9442004.pdf
THE HIGH COURT OF DELHI AT NEW DELHI
Judgment delivered on : 24.09.2007
CS(OS) 944/2004
MASTER GAURAV SIKRI & ANR. .......Plaintiffs
- versus -
SMT. KAUSHALYA SIKRI & ORS. ........Defendants
Advocates who appeared in this case:
For the Plaintiffs : Mr Viraj R. Datar with Mr Aditya Jhanji
For the Defendants : Mr Pawan Kumar Aggarwal
CORAM:-
HON'BLE MR JUSTICE BADAR DURREZ AHMED
1. Whether Reporters of local papers may be allowed
to see the judgment? YES
2. To be referred to the Reporter or not? YES
3. Whether the judgment should be reported in Digest? YES
BADAR DURREZ AHMED, J (ORAL)
1. A serious objection to the maintainability of the suit was taken by
the learned counsel for the defendants. This was also noted in the order dated
15.12.2006 wherein it was pointed out to the Court that the suit has been filed
by the grandchildren of late Sh. Vilayati Ram Sikri in the life time of their
father. The matter was thereafter adjourned for arguments on this aspect. The
same has been argued today by the counsel for the plaintiffs as well as by the
counsel for the defendants.
CS(OS)944/2004 Page No.1 of 82. The short point taken by the learned counsel for the defendants is
that if all the averments made in the plaint are taken to be correct, it would not
disclose a cause of action and, therefore, the plaint has to be rejected. He
submitted that as per averments made in the plaint
late Sh. Vilayati Ram Sikri
was the owner of the suit properties detailed in paragraph 3 of the plaint.
It is
an admitted position between the parties that
late Sh. Vilayati Ram Sikri passed
away on 11.12.2001 and that he died intestate. 
As per paragraph 3 of the plaint
it is stated that late Sh. Vilayati Ram Sikri was the owner and/ or had
ownership interest in the suit properties detailed therein.
In paragraph 4 of the
plaint it is stated that
late Sh. Vilayati Ram Sikri died intestate at Delhi on
11.12.2001 leaving behind the following heirs:-
(a) Smt. Kaushalya Sikri (Widow) ( defendant No.1)
(b) Sh. Rajesh Sikri (Son) ( defendant No.2)
(c) Sh. Pradeep Sikri (Son) ( defendant No.3)
(d) Sh. Pawan Sikri (Son) ( defendant No.4)
(e) Smt. Anjana Rani (Married daughter) ( defendant No.5)
3. In paragraph 5 of the plaint, it is alleged that
a registered release
deed has been executed by defendant Nos. 2 to 5 on 24.12.2001 in favour of their mother (defendant No.1) whereby they have relinquished all their rights, title, interest in whole of the estate of late Sh. Vilayati Ram Sikri including the properties
mentioned in paragraph 3 of the plaint. It is further stated in the
plaint that
by this action, the defendant No.1 (Smt. Kaushalya Sikri) has
become the absolute and exclusive owner of the suit properties. It is further
CS(OS)944/2004 Page No.2 of 8stated in paragraph 6 of the plaint that
after the death of late Sh. Vilayati Ram
Sikri, as per law of succession, his estate has devolved upon the plaintiffs and
the defendants, namely, defendant Nos. 1 to 5 in equal shares.
4. The present suit has been filed by Gaurav Sikri and Khushal Sikri, who are both minor sons of the defendant No.2. The suit has been filed through their mother Smt. Neha Sikri. It is relevant to point out that the
defendant No.2 and Smt. Neha Sikri are separated and the two minor plaintiffs
are residing with their mother (Smt. Neha Sikri).
Suits for maintenance had
been filed on behalf of the plaintiffs as well as their mother and the same has
ultimately been disposed of by a Division Bench of this Court in an appeal by
awarding a sum of Rs 7,000/- per month for the maintenance of the plaintiffs as
well as their mother Smt. Neha Sikri.
5. The learned counsel for the defendants submitted that in the
background of the averments made in the plaint, the suit would not be
maintainable as no cause of action has been disclosed. He says that as per the
averments made in the plaint late Sh. Vilayati Ram Sikri was the owner of the
suit properties. He further submitted that on the death of late Sh. Vilayati Ram
Sikri his heirs succeeded to the same as per the law of succession. In view of
the Hindu Succession Act, 1956, the plaintiffs would not fall in the category of
Class I heirs and only their father (defendant No.2) would be entitled to inherit
CS(OS)944/2004 Page No.3 of 8along with his brothers, sister and mother. 
He submits that under the Hindu
Succession Act, 1956 the plaintiffs are excluded from the purview of
succession insofar as the properties of late Sh. Vilayati Ram Sikri are
concerned.
The learned counsel for the defendants placed reliance on a
decision of the Supreme Court in the case of
Commissioner of Wealth Tax,
Kanpur and Ors. v. Chander Sen and Ors. : AIR1986SC1753.
One of the
questions that arose for consideration before the Supreme Court was—
when
the son, as a Class I heir under the Schedule to the Hindu Succession Act,1956, inherits property, does he do so in his individual capacity or does he do so as karta of his own undivided family? 
This aspect was gone into in great
detail by the Supreme Court and after considering decisions of Gujarat High
Court, Andhra Pradesh High Court and other High Courts, the Supreme Court
arrived at the following conclusions:-
“19. It is necessary to bear in mind the Preamble to the
Hindu Succession Act, 1956.
The Preamble states that it was
an Act to amend and codify the law relating to intestate
succession among Hindus.
20. In view of the preamble to the Act, i.e., that to
modify where necessary and to codify the law, in our opinion
it is not possible when Schedule indicates heirs in class I and
only includes son and does not include son's son but does
include son of a predeceased son, to say that when son
inherits the property in the situation contemplated by Section
8 he takes it as karta of his own undivided family. 
The
Gujarat High Court's view noted above, if accepted, would
mean that though the son of a predeceased son and not the
son of a son who is intended to be excluded under Section 8
to inherit, the latter would by applying the old Hindu law get
a right by birth of the said property contrary to the scheme
CS(OS)944/2004 Page No.4 of 8outlined in Section 8.
Furthermore as noted by the Andhra
Pradesh High Court that the Act makes it clear by Section 4
that one should look to the Act in case of doubt and not to the
pre-existing Hindu law. It would be difficult to hold today the
property which devolved on a Hindu under Section 8 of the
Hindu Succession would be HUF in his hand vis-a-vis his
own son; that would amount to creating two classes among
the heirs mentioned in class I, the male heirs in whose hands
it will be joint Hindu family property and vis-a-vis son and
female heirs with respect to whom no such concept could be
applied or contemplated. It may be mentioned that heirs in
class I of Schedule under Section 8 of the Act included
widow, mother, daughter of predeceased son etc.
21. Before we conclude we may state that we have
noted the observations of Mulla's Commentary on Hindu
Law, 15th Edn. dealing with Section 6 of the Hindu
Succession Act at page 924-26 as well as Mayne's on Hindu
Law, 12th Edition, pages 918-919.
22. The express words of Section 8 of The Hindu
Succession Act, 1956 cannot be ignored and must prevail.
The preamble to the Act reiterates that the Act is, inter alia,
to 'amend' the law, with that background the express language
which excludes son's son but included son of a predeceased
son cannot be ignored.
23. In the aforesaid light the views expressed by the
Allahabad High Court, the Madras High Court, Madhya
Pradesh High Court, and the Andhra Pradesh High Court,
appear to us to be correct. With respect we are unable to
agree with the views of the Gujarat High Court noted
hereinbefore.”
The above decision makes it clear that a son's son during the life time of the
son, would not inherit from the grandfather. This is so because only the son of
a predeceased son has been shown as an heir in Class I of the Schedule. In the
CS(OS)944/2004 Page No.5 of 8said decision, the Supreme Court has categorically observed that the express
words of Section 8 of The Hindu Succession Act, 1956 cannot be ignored and
must prevail. In this background, I am of the view that the submission made by
the learned counsel for the defendants, that the plaintiffs would not have any
entitlement during the life time of the defendant No.2, is well founded.
6. On the other hand, the learned counsel for the plaintiffs submitted
that there are decisions of this Court, both of a Single Judge as well as of a
Division Bench, which would indicate otherwise. First of all, the learned
counsel for the plaintiff referred to the decision of a learned Single Judge in the
case of Rajinder Kumar Khanna & Ors. v. R. K. Bajaj & Ors.: 1993 (3)
Current Civil Cases 127. He referred to paragraph 14 of the said decision
which, inter alia, reads as under:-
“14. The contention of Mr. Lekhi that the son cannot
claim partition during the life time of his father has no force
in view of the decision of this court in the case of Nanak
Chand and others v. Chander Kishore, AIR 1982 Delhi 520,
wherein a Division Bench of this court held in Delhi a son
can ask for partition of the Joint Hindu Family property
from the father during his life time..................”
He also referred to the Division Bench decision in the case of Nanak Chand &
Ors v. Chander Kishore: AIR 1982 Delhi 520. Paragraph 14 of this decision
was relied upon and the same reads as under:-
“14. The other contention that came up for
consideration was whether in the life time of the father, the
CS(OS)944/2004 Page No.6 of 8sons could ask for partition or not. At one time a view was
prevalent that in Delhi like Punjab they could not do so. It was
based upon some custom, vide Hari Kishan v. Chander Lal &
others, AIR 1918 Lah 291(FB) and Sri Ram v. Collector, AIR
1942 Lah 173. But since the decision of this court of 26-10-
1967 in Khushwant Rai v. Dr. Jagmohar Lal, RFA 1-D/59 and
24-D of 1959, it is now no more in controversy that the son can
ask for partition from the father during his life time. We do not,
therefore, propose to dilate any more on this issue.”
In the light of these decisions the learned counsel for the plaintiffs submitted
that the plaint cannot be thrown out at this stage and he ought to be permitted to
lead evidence.
7. The question that arises is that the decisions which were relied
upon by the learned counsel for the plaintiffs were based on the presumption
that there was a Joint Hindu Family and that the properties were part of the
Joint Hindu Family properties. Had that been the case, there is no doubt that
the plaintiffs' arguments would be plausible. But fact of the matter is that as
per the averments contained in the plaint, the properties in question have not
been pleaded to be joint family properties. As indicated above, the plaint
makes specific averments that late Sh. Vilayati Ram Sikri was the owner of the
suit properties and that after his death the same were inherited by his heirs as
per the law of succession.
This is entirely different to saying that the properties
in question were joint family properties in which late Sh. Vilayati Ram Sikri, his children and his grandsons had an undivided interest even during his life time. There is not a single averment in the plaint to the effect that the CS(OS)944/2004 Page No.7 of 8properties in question were joint family properties.
Therefore, taking the
averments as set out in the plaint, the impression is clear that
late Sh. Vilayati
Ram Sikri was the owner of the suit properties and that upon his death the same were inherited by his legal heirs. That being the case, the decision of the Supreme Court in the case of Wealth Tax Commissioner v. Chander Sen (supra) would be clearly applicable and, therefore, the plaintiffs being the
grandsons would not have any share in the property left by late Sh. Vilayati Ram Sikri during the life time of the defendant No.2 (Rajesh Sikri).
Consequently, the plaint, on the basis of the averments made therein, does not
disclose any cause of action and the same is accordingly rejected.
BADAR DURREZ AHMED
(JUDGE)
September 24, 2007
SR
CS(OS)944/2004 Page No.8 of 8

Hindu Succession Act, 1956-ss. 4, 8 and 19-Property of father who dies intestate-Whether devolves on son, who separated by partition from his father, in individual capacity or Karta of his HUF. Wealth Tax Act, 1957-ss. 3 and 4-Property inherited under s 8 Hindu Succession Act, 1956-Whether HUF or individual property. Income Tax Act, 1961/Income Tax Act, 1922-Income from as sets inherited by son from father-Whether assessable as individual income. HEADNOTE: Rangi Lal and his son Chander Sen constituted a Hindu undivided family. They had some immovable property and the family business. By a partial partition the HUF business was divided between the two and thereafter it was carried on by a partnership consisting of the two. The house property of the family continued to remain joint. The firm was assessed to income-tax as a registered firm and the two partners were separately assessed in respect of their share of income. The mother and wife of Rangi Lal having pre-deceased him, when he died he left behind him his only son Chander Sen and his grandsons. On his death there was a credit balance of Rs.1,85,043 in his account in the books of the firm. In the wealth tax assessment for the assessment year 1966-67, Chander Sen, who constituted a joint family with his own sons, filed a return of his net-wealth by including the property of the family which u on the death of Rangi Lal passed on to him by survivorship and, also the assets of the business which devolved upon him on the death of his father. The sum of R.S.. l ,85,0 13 standing to the credit of Rangi Lal was, however, not included in the net-wealth of the assessee-family. Similarly, in the wealth tax assessment for the assessment year 1967-68 a sum of Rs.1,82,742 was not included, in the net wealth of the assessee family. It was contended that these amounts devolved on Chander Sen 255 in his individual capacity and were not the property of the assessee family. The Wealth-tax officer did not accept this contention and held that these sums also belonged to the assessee-family. A sum of Rs.23,330 was also credited to the account of late Rangi Lal on account of interest accruing on his credit balance. In the proceedings under the Income Tax Act for the assessment year 1367-68 this sum was claimed as deduction on the same ground. The Income-tax officer disallowed the claim on the ground that it was a payment made by Chander Sen to himself. On appeal, the Appellate Assistant Commissioner of Income-tax accepted the assessee's claim in full and held that the capital in the name of Rangi Lal devolved on Chander Sen in his individual capacity and as such was not to be included in the wealth of the assessee family. The sum of Rs.23,330 on account of interest was also directed to be allowed as deduction. The Income-tax Appellate Tribunal dismissed the appeals filed by the Revenue and its orders were affirmed by the High Court. On the question: "Whether the income or asset which a son inherits from his father when separated by partition should be assessed as income of the Hindu Undivided Family consisting of his own branch including his sons or his individual income", dismissing the appeals and Special Leave Petition of the Revenue, the Court, ^ HELD: 1. The sums standing to the credit of Rangi Lal belong to Chander Sen in his individual capacity and not the Joint Hindu Family. The interest of Rs.23,330 was an allowable deduction in respect of the income of the family from the business. [268C-D] 2.1 Under s. 8 of the Hindu Succession Act, 1956, the property of the father who dies intestate devolves on his son in his individual capacity and not as Karta of his own family. Section 8 lays down the scheme of succession to the property of a Hindu dying intestate. The Schedule classified the heirs on whom such property should devolve. Those specified in class I took simultaneously to the exclusion of all other heirs. A son's son was not mentioned as an heir under class I of the Schedule, and, therefore, he could not get any right in the property of his grandfather under the provision. [265F-G] 256 2.2 The right of a son's son in his grandfather's property during the lifetime of his father which existed under the Hindu law as in force before the Act, was not saved expressly by the Act, and therefore, the earlier interpretation of Hindu law giving a right by birth in such property "ceased to have effect". So construed, s. 8 of the Act should be taken as a self-contained provision laying down the scheme of devolution of the property of a Hindu dying intestate. Therefore, the property which devolved on a Hindu on the death of his father intestate after the coming into force of the Hindu Succession Act, 1356, did not constitute HUF property consisting of his own branch including his sons. [265G-H; 266A-C] 2.3 The Preamble to the Act states that it was an Act to amend and codify the law relating to intestate succession among Hindus. Therefore, it is not possible when the Schedule indicates heirs in class I and only includes son and does not include son's son but does include son of a predeceased-son, to say that when son inherits the property in the situation contemplated by s. 8, he takes it as Karta of his own undivided family. [267C-D] 2.4 The Act makes it clear by s. 4 that one should look to the Act in case of doubt and not to the pre-existing Hindu law. It would be difficult to hold today that the property which devolved on a Hindu under s. X of the Act would be HUF in his hand vis-a-vis his own son; that would amount to creating two classes among the heirs mentioned in class I, the male heirs in whose hands it will be joint Hindu family property and vis-a-vis sons and female heirs with respect to whom no such concept could be applied or contemplated. [267E-G] 2.5 Under the Hindu law, the property of a male Hindu devolved on his death on his sons and the grandsons as the grandsons also have an interest in the property. However, by reason of s. 8 of the Act, the son's son gets excluded and the son alone inherits the properly to the exclusion of his son. As the effect of s. 8 was directly derogatory of the law established according to Hindu law, the statutory provisions must prevail in view of the unequivocal intention in the statute itself, expressed in s. 4(1) which says that to the extent to which provisions have been made in the Act, those provisions shall override the established provisions in the texts of Hindu Law. [264G-H; 265A-B] 2.6 The intention to depart from the pre-existing Hindu law was again made clear by s. 19 of the Hindu Succession Act which stated that 257 if two or more heirs succeed together to the property of an intestate, they should take the property as tenants-in- common and not as joint tenants and according to the Hindu law as obtained prior to Hindu Succession Act two or more sons succeeding to their father's property took a joint tenants and not tenants-in-common. The Act, however, has chosen to provide expressly that they should take as tenants-in-common. Accordingly the property which devolved upon heirs mentioned in class I of the Schedule under s. 8 constituted the absolute properties and his sons have no right by birth in such properties. [266F-H] Commissioner of Income-tax, U. P. v. Ram Rakshpal, Ashok Kumar, 67 I.T.R. 164; Additional Commissioner of Income-tax, Madras v. P.L. Karuppan Chettiar, 114 I.T.R. 523; Shrivallabhdas Modani v. Commissioner of Income-Tax, M.P-I., 138 I.T.R. 673 and Commissioner of Wealth-Tax A.P. II v. Mukundgirji 144 I.T.R. 18, approved. Commissioner of Income-tax, Gujarat-l v. Dr. Babubhai Mansukhbai (Deceased), 108 I.T.R. 417, overruled.

published in http://judis.nic.in/supremecourt/imgst.aspx?filename=8997
PETITIONER:
COMMISSIONER OF WEALTH TAX. KANPUR ETC. ETC.

Vs.

RESPONDENT:
CHANDER SEN ETC.

DATE OF JUDGMENT16/07/1986

BENCH:
MUKHARJI, SABYASACHI (J)
BENCH:
MUKHARJI, SABYASACHI (J)
PATHAK, R.S.

CITATION:
 1986 AIR 1753  1986 SCR  (3) 254
 1986 SCC  (3) 567  1986 SCALE  (2)75
 CITATOR INFO :
 F    1987 SC 558 (10)
 RF    1991 SC1654 (27)


ACT:
     Hindu Succession  Act, 1956-ss. 4, 8 and 19-Property of
father who  dies  intestate-Whether  devolves  on  son, who
separated  by  partition  from his  father,  in  individual
capacity or Karta of his HUF.
     Wealth Tax Act, 1957-ss. 3 and  4-Property  inherited
under  s   8  Hindu  Succession Act,  1956-Whether  HUF  or
individual property.
     Income Tax Act, 1961/Income  Tax Act, 1922-Income from
as sets inherited by  son from father-Whether assessable as
individual income.



HEADNOTE:
     Rangi Lal and his son Chander Sen constituted a Hindu
undivided family.  They had  some immovable property and the
family business. By a partial partition the HUF business was
divided between the two and thereafter it was carried on by
a partnership  consisting of  the two. The house property of
the family  continued to remain joint. The firm was assessed
to income-tax as a registered firm and the two partners were
separately assessed in respect of their share of income. The
mother and  wife of  Rangi Lal having pre-deceased him, when
he died he left behind him his only son Chander Sen and his
grandsons. On  his death  there was  a credit balance  of
Rs.1,85,043 in his account in the books of the firm.
     In the  wealth tax assessment for the assessment year
1966-67, Chander  Sen, who  constituted a  joint family with
his own sons, filed a return of his net-wealth by including
the property of the family which u on the death of Rangi Lal
passed on to him by survivorship and, also the assets of the
business which devolved upon him on the death of his father.
The sum of R.S.. l ,85,0 13 standing to the credit of Rangi
Lal was,  however, not included in  the net-wealth  of the
assessee-family. Similarly, in the wealth tax assessment for
the assessment year 1967-68  a sum  of Rs.1,82,742  was not
included, in  the net  wealth of the assessee family. It was
contended that these amounts devolved on Chander Sen
255
in his individual capacity and were not the property of the
assessee family.  The Wealth-tax officer did not accept this
contention and held that  these sums  also belonged  to the
assessee-family.
     A sum  of Rs.23,330 was also credited to the account of
late Rangi Lal on account of interest accruing on his credit
balance. In the proceedings under the Income Tax Act for the
assessment year 1367-68 this sum was claimed as deduction on
the same ground. The Income-tax officer disallowed the claim
on the ground that  it was a payment made by Chander Sen to
himself.
     On appeal, the  Appellate Assistant  Commissioner  of
Income-tax accepted  the assessee's  claim in  full and held
that the  capital in  the name of  Rangi  Lal devolved  on
Chander Sen  in his  individual capacity and as such was not
to be included in the wealth of the assessee family. The sum
of Rs.23,330  on account of interest was also directed to be
allowed as deduction.
     The Income-tax Appellate Tribunal dismissed the appeals
filed by  the Revenue  and its orders were  affirmed by the
High Court.
     On the  question: "Whether the income or asset which a
son inherits  from his father when  separated by  partition
should be  assessed as income of the Hindu Undivided Family
consisting of  his own branch including  his  sons  or his
individual income", dismissing the appeals and Special Leave
Petition of the Revenue, the Court,
^
     HELD: 1.  The sums standing to the credit of Rangi Lal
belong to Chander Sen in his individual capacity and not the
Joint Hindu Family. The interest   of Rs.23,330   was  an
allowable deduction  in respect of the income of the family
from the business. [268C-D]
     2.1 Under s. 8  of the Hindu Succession Act, 1956, the
property of  the father who dies  intestate devolves on his
son in his individual capacity and not as Karta of his own
family. Section 8 lays down the scheme of succession to the
property of a Hindu dying intestate. The Schedule classified
the heirs  on  whom  such  property  should  devolve.  Those
specified in class I took simultaneously to the exclusion of
all other  heirs. A  son's son was not mentioned as an heir
under class  I of the Schedule, and, therefore, he could not
get any right in  the property of his grandfather under the
provision. [265F-G]
256
     2.2 The  right of a son's son  in  his  grandfather's
property during the lifetime  of his  father which  existed
under the  Hindu law  as in  force before  the Act,  was not
saved expressly by the Act,  and  therefore, the  earlier
interpretation of  Hindu law giving a right by birth in such
property "ceased  to have effect". So construed, s. 8 of the
Act should  be taken  as a  self-contained provision  laying
down the  scheme of  devolution of  the property  of a Hindu
dying intestate. Therefore, the property which devolved on a
Hindu on  the death of his father intestate after the coming
into force  of the  Hindu  Succession  Act,  1356,  did not
constitute  HUF  property  consisting of  his own  branch
including his sons. [265G-H; 266A-C]
     2.3 The  Preamble to  the Act states that it was an Act
to amend and codify the law relating to intestate succession
among  Hindus. Therefore,  it is  not possible  when the
Schedule indicates  heirs in  class I  and only includes son
and does  not include  son's son  but does  include son of a
predeceased-son, to  say that when son inherits the property
in the situation contemplated by s. 8, he takes it as Karta
of his own undivided family. [267C-D]
     2.4 The Act makes it clear by s. 4 that one should look
to the Act in case of doubt and  not to  the pre-existing
Hindu law.  It would  be difficult  to hold  today that the
property which devolved on  a Hindu  under s. X of the Act
would be  HUF in  his hand vis-a-vis his own son; that would
amount to  creating two classes among the heirs mentioned in
class I,  the male  heirs in  whose hands  it will  be joint
Hindu family  property and  vis-a-vis sons  and female heirs
with respect  to whom  no such concept could  be applied or
contemplated. [267E-G]
     2.5 Under the Hindu  law, the property of a male Hindu
devolved on  his death on his sons and the grandsons as the
grandsons also have an interest in the property. However, by
reason of  s. 8 of the Act, the son's son gets excluded and
the son alone inherits the properly to the exclusion of his
son. As the effect  of s.  8 was directly derogatory of the
law  established  according  to Hindu law,  the  statutory
provisions must prevail in view of the unequivocal intention
in the statute itself, expressed in s. 4(1) which says that
to the extent to which provisions have been made in the Act,
those provisions  shall override  the established provisions
in the texts of Hindu Law. [264G-H; 265A-B]
     2.6 The intention to depart from the pre-existing Hindu
law was again made  clear by  s. 19 of the Hindu Succession
Act which stated that
257
if two or more heirs succeed together to the property of an
intestate, they should take  the  property  as tenants-in-
common and  not as  joint tenants and according to the Hindu
law as obtained prior to Hindu  Succession Act two or more
sons succeeding to their  father's property  took  a  joint
tenants and  not tenants-in-common.  The Act,  however, has
chosen to  provide  expressly that  they  should  take  as
tenants-in-common. Accordingly the property  which devolved
upon heirs  mentioned in  class I of the Schedule under s. 8
constituted the absolute properties  and his  sons have  no
right by birth in such properties. [266F-H]
     Commissioner of  Income-tax, U.  P.  v.  Ram  Rakshpal,
Ashok Kumar,  67  I.T.R.  164; Additional  Commissioner  of
Income-tax, Madras  v. P.L.  Karuppan Chettiar, 114  I.T.R.
523; Shrivallabhdas  Modani v. Commissioner of Income-Tax,
M.P-I., 138  I.T.R. 673 and Commissioner of Wealth-Tax A.P.
II v. Mukundgirji 144 I.T.R. 18, approved.
     Commissioner of  Income-tax, Gujarat-l  v. Dr. Babubhai
Mansukhbai (Deceased), 108 I.T.R. 417, overruled.



JUDGMENT:
     CIVIL APPELLATE  JURISDICTION: Civil Appeal Nos. 166870
of 1974 etc.
     From the  Judgment and  order dated  17.8.1973  of the
Allahabad High Court in  W.T. Reference No. 371 of 1971 and
I.T. Reference No. 452 of 1971.
     V.S. Desai, and Miss A. Subhashini for the Appellants.
     P.K. Mukharjee and A. K. Sengupta for the Respondents.
     The Judgment of the Court was delivered by
     SABYASACHI MUKHARJI,  J. These appeals arise by special
leave from the decision of the High Court of Allahabad dated
17th August,  1973. Two of these  appeals are in respect of
assessment years  1966-67 and  1967-68 arising out  of the
proceedings under  the Wealth  Tax Act, 1957. The connected
reference was  under the Income-Tax Act, 1961 and related to
the assessment year 1968-69. A common question of law arose
in all these cases  and these were disposed of by the High
Court by a common judgment.
     One Rangi Lal and his son  Chander Sen  constituted a
Hindu
258
undivided family.  This family had some  immovable property
and the business carried on in the name of Khushi Ram Rangi
Lal. On October 10,  1961, there was a partial partition in
the family  by which  the business  was divided between the
father and  the son,  and thereafter, it was carried on by a
partnership consisting of the two. The firm was assessed to
income-tax as  a registered  firm and  the two partners were
separately assessed in respect of their share of income. The
house property of the family continued to remain joint. On
July 17,  1965, Rangi  Lal  died  leaving  behind  his son,
Chander Sen,  and his  grandsons, i.e. the sons  of Chander
Sen. His wife and mother predeceased him and he had no other
issue except  Chander Sen.  On his  death there was a credit
balance of  Rs.1,85,043 in  his account in the books of the
firm.  For  the assessment  year  1966-67  (valuation date
October 3,  1965), Chander  Sen,  who  constituted  a  joint
family with  his own sons, filed a return of his net wealth.
The return  included the property of the family which on the
death of  Rangi Lal passed on to Chander Sen by survivorship
and also  the assets  of the  business which  devolved upon
Chander Sen  on  the  death  of  his  father. The  sum  of
Rs.1,85,043 standing  to the  credit of Rangi Lal  was not
included in  the net  wealth of the family  of Chander Sen
(hereinafter referred  to as  'the assessee-family')  on the
ground that  this amount  devolved on  Chander Sen  in his
individual  capacity   and  was not  the  property  of the
assessee-family. The  Wealth-tax officer did not accept this
contention  and held  that  the  sum  of  Rs.1,85,043 also
belonged to the assessee-family.
     At the close of the previous year ending on October 22,
1962, relating to the assessment year 1967-68, a  sum  of
Rs.23,330 was  credited to  the account of late Rangi Lal on
account of  interest accruing  on his credit balance. In the
proceedings under the Income-tax Act for the assessment year
1967-68, the  sum of  R.S.. 23,330 was claimed as deduction.
It was alleged that  interest was due to Chander Sen in his
individual capacity  and was  an allowable  deduction in the
computation of the business  income of the assessee-faimly.
At the end of the year the credit balance in the account of
Rangi Lal  stood at Rs.1,82,742 which was transferred to the
account of Chander Sen. In the wealth-tax assessment for the
assessment year 1967-68, it  was claimed, as in the earlier
year, that  the credit balance in  the account of Rangi Lal
belonged to  Chander Sen  in his individual capacity and not
to the assessee-family. The Income-tax officer who completed
the assessment disallowed the claim relating to interest on
the ground  that it  was a  payment made  by Chander  Sen to
himself. Likewise,  in the wealth-tax assessment, the sum of
Rs.1,82,742 was included by  the Wealth-tax  officer in the
net wealth  of the  assessee-family. On appeal the Appellate
Assistant Commissioner of Income-tax accepted the assessee's
claim in
259
full. He held that the capital in the name of Rangi Lalluded
in the wealth of the assessee-family. He also directed that
in the income-tax assessment the sum of Rs.23,330 on account
of interest should be allowed as deduction. The revenue felt
aggrieved and  filed three  appeals  before  the  Income-tax
Appellate Tribunal,  two against  the assessments  under the
Wealth-tax Act for the assessment years 1966-67 and 1967-68
and one against the assessment under Income-tax Act for the
assessment  year   1967-68.  The   Tribunal  dismissed the
revenue's appeals.
     The following  question was  referred to the High Court
for its opinion:
 "Whether, on the facts and in the circumstances of
 the case,  the conclusion of the Tribunal that the
 sum  of   Rs.1,85,043 and   Rs.1,82,742  did not
 constitute  the   assets  of the  assessee-Hindu
 undivided family is correct?"
     Similarly in  the reference  under the  Income-tax Act,
the following question was referred:
 "Whether, on the facts and in the circumstances of
 the case,  the interest  of Rs,23,330 is allowable
 deduction  in the  computation  of  the  business
 profits of the assessee joint family?"
     The answer to the questions would depend upon whether
the amount  standing to the credit  of late  Rangi Lal was
inherited, after his death, by Chander Sen in his individual
capacity  or  as  a  Karta  of the  assessee  joint  family
consisting of himself and his sons.
     The amount in question represented the capital allotted
to Rangi  Lal on  partial partition  and accumulated profits
earned by  him as his share in the firm. While Rangi Lal was
alive this  amount could  not be said to belong to any joint
Hindu family  and qua  Chander Sen  and his sons, it was the
separate property  of Rangi  Lal. On  Rangi Lal's  death the
amount passed  on to  his son, Chander Sen, by inheritance.
The High  Court was  of the opinion that under the Hindu Law
when a son inherited separate and self-acquired property of
his father,  it assumed the character of joint Hindu family
property in his hands qua the members of his own family. But
the High  Court found  that this principle has been modified
by section 8 of the Hindu Succession Act, 1956.
260
Section 8  of the  said Act  provides, inter  alia, that the
property of  a male Hindu dying intestate devolved according
to the provisions of  that Chapter in the Act and indicates
further that  it will devolve first upon the heirs being the
relatives specified in class I of the Schedule. Heirs in the
Schedule Class I includes  and provides  firstly  son and
thereafter daughter,  widow and others. It is not necessary
in view of the facts of this case to deal with other clauses
indicated in  section 8 or other  heirs  mentioned  in the
Schedule. In this case as the High Court noted that the son,
Chander Sen was the only heir and therefore the property was
to pass to him only.
     The High Court in the judgment under appeal relied on a
bench decision of the said High Court rendered previously.
Inadvertently, in  the judgment of the High Court,  it had
been mentioned that the  judgment was in Khudi Ram Laha v.
Commissioner of Income-tax U.P, 67 I.T.R. 364. but that was
a case which dealt  with entirely  different  problem. The
decision which the High  Court had  in mind and on which in
fact the  High Court  relied was  a decision  in the case of
Commissioner of Income-tax, U. P. v. Ram Rakshpal,  Ashok
Kumar, 67  I.T.R. 164. In the said decision  the Allahabad
High Court  held that in view of the provisions of the Hindu
Succession Act, 1956, the income from assets inherited by a
son from  his father from whom he had separated by partition
could not  be assesssed as the income of the Hindu undivided
family of  the son.  The High Court relied on the commentary
in Mulla's  Hindu Law, Thirteenth Edition page 248. The High
Court also  referred to certain passages  from Dr. Derret's
"Introduction to  Modern Hindu Law" (paragraph 411, at page
252). Reliance was also  placed on  certain observations of
this Court  and the  Privy Council  as well  as on  Mayne's
'Hindu Law'.  After discussing all these  aspects the Court
came to the conclusion that the  position of the Hindu Law
was that  partition took  away by  way of  coparcenary the
character of  coparcener property which meant that the share
of  another  coparcener upon  the  divisions  although the
property obtained  by a coparcener by a partition continued
to be  coparcenary property  for  him  and  his unseparated
issue. In  that case  what had happened was one Ram Rakshpal
and his father, Durga Prasad, constituted a Hindu undivided
family which  was assessed  as such.  Ram Rakshpal separated
from his father by partition on October 11, 1948. Thereafter
Ram Rakshpal started business of his own, income whereof was
assessed in  the hands of the assessee-family. Shri  Durga
Prasad also  started business  of his own after partition in
the name and style of M/s Murlidhar Mathura Prasad which was
carried on by him till his death.
261
Durga Prasad  died on  March 29, 1958 leaving behind him his
widow, Jai  Devi, his  married daughter,  Vidya Wati and Ram
Rakshpal  and  Ram  Rakshpal's son,  Ashok  Kumar,  as his
survivors. The assets left  behind by Durga Prasad devolved
upon three  of them  in equal shares by succession under the
Hindu Succession  Act, 1956.  Vidya Wati took away her 1/3rd
share, while  Jai Devi and Shri  Ram Rakshpal continued the
aforesaid business  inherited by  them in  partnership with
effect from  April, 1, 1958 under  a partnership deed dated
April 23,  1958. The  said firm was granted registration for
the assessment year 1958-59. The share of profit of Shri Ram
Rakshpal  for the  assessment year  under  reference was
determined at Rs.4,210. The assessee-family contended before
the Income-tax Officer that  this profit  was the  personal
income of  Ram Rakshpal and could not be taxed in the hands
of the Hindu undivided family of Ram Rakshpal, and held that
Ram  Rakshpal contributed  his   ancestral  funds  in the
partnership business  of Murli Dhar Mathura Prasad and that,
hence, the  income therefrom was taxable in the hands of the
assessee family.  The High Court finally held on these facts
in C.I.T  v. Ram  Rakshpal (supra)  that the  assets of the
business left  by Durga Prasad in the hands of Ram Rakshpal
would be  governed by section 8 of the Hindu Succession Act,
1956.
     The High  Court in the Judgment under appeal was of the
opinion that  the facts of this case were identical with the
facts in  the  case  of Commissioner  of  Income-tax, U.P.
(supra) and the principles applicable would be the same. The
High  Court   accordingly  answered   the  question  in the
affirmative  and  in  favour  of  the  assessee so  far  as
assessment of  wealth-tax is  concerned. The High Court also
answered  necessarily the  question on  the  income-tax
Reference affirmatively and in favour of the assessee.
     The question  here, is,  whether the  income  or  asset
which a son inherits  from his father when  separated  by
partition the same should be assessed as income of the Hindu
undivided family  of son  or his individual income. There is
no dispute  among the  commentators on Hindu Law nor in the
decisions of  the Court that under  the Hindu Law as it is,
the son would inherit the same as karta of his own family.
But the question, is, what is the effect of section 8 of the
Hindu Succession  Act, 1956?  The Hindu Succession Act, 1956
lays down  the general rules of  succession in the case of
males. The  first rule is that the property of a male Hindu
dying intestate shall devolve according to the provisions of
Chapter II  and class  I of  the Schedule  provides that  if
there is  a male  heir of  class  I  then  upon  the  heirs
mentioned in class I of
262
the Schedule. Class I of the Schedule reads as follows:
 "Son; daughter;  widow;  mother;  son of  a pre-
 deceased son; daugther of  a predeceased son; son
 of a pre-deceased daughter, daughter of  a pre-
 deceased daughter;  widow of a pre-deceased son;
 son of  a pre-deceased  son of a pre-deceased son;
 daughter of  a pre-deceased  son of a pre-deceased
 son; widow of a pre-deceased son of a pre-deceased
 son."
     The heirs mentioned in class I of the Schedule are son,
daughter etc.  including the  son of  a pre-deceased son but
does not include specifically the grandson, being a son of a
son living.  Therefore, the short question, is, when the son
as heir of class  I of the Schedule inherits the property,
does he do so in his individual capacity or does he do so as
karta of his own undivided family?
     Now the Allahabad High Court has noted that the case of
Commissioner of Income-tax, U.P.  v.  Ram  Rakshpal,  Ashok
Kumar (supra)  after referring to the relevant authorities
and commentators had observed at page 171 of the said report
that there  was no  scope for  consideration of a wide and
general nature about the objects attempted to be achieved by
a piece of legislation when interpreting the clear words of
the enactment. The learned judges observed referring to the
observations of Mulla's Commentary  on Hindu  Law, and the
provisions of  section 6 of the Hindu Succession Act that in
the case  of assets  of the  business left  by father in the
hands of  his son  will be  governed by section 8 of the Act
and he would take  in his  individual capacity.  In this
connection reference was also made before us to section 4 of
the Hindu Succession Act. Section 4 of the said Act provides
for overriding effect of  Act. Save  as otherwise expressly
provided in  the Act,  any text,  rule or  interpretation of
Hindu Law  or any  custom or  usage as part of that law in
force immediately  before the commencement of this Act shall
cease to  have effect  with respect  to any matter for which
provision is  made in  the Act and any other law  in force
immediately before  the commencement  of the Act shall cease
to apply  to Hindus in so far it is inconsistent with any of
the provisions contained in  the Act. Section 6 deals with
devolution of  interest in coparcenary property and it makes
it clear  that when a male Hindu dies after the commencement
of the Act having at the time of his death an interest in a
Mitakshara  coparcenary  property,  his   interest  in the
property shall devolve by  survivorship upon  the surviving
members of the coparcenary and not
263
in accordance  with the Act. The  proviso indicates that if
the deceased  had  left him  surviving a  female  relative
specified in  class I  of the  Schedule or  a male  relative
specified in  that class  who  claims  through such  female
relative,  the interest  of  the  deceased  in  Mitakshara
coparcenary  property shall  devolve by  testamentary  or
intestate succession, as the case may be, under this Act and
not by survivorship.
     Section 19 of the said Act  deals with  the  mode  of
succession of  two or  more heirs.  If two  or more  heirs
succeed together to the property of an intestate, they shall
take the  property per capita and  not per  stripes and  as
tenants-in-common and not as joint tenants.
     Section 30 stipulates that any Hindu may dispose of by
will or other testamentary  disposition any property, which
is capable of being so disposed of by him in accordance with
the provisions of the Indian Succession Act, 1925.
     It is  clear that under the Hindu law, the moment a son
is born,  he gets  a share  in the  father's  property and
becomes part  of the  comparcenary. His right accrues to him
not on the death  of the  father or  inheritance  from the
father but  with the  very  fact  of  his  birth.  Normally,
therefore whenever  the father gets a property from whatever
source from  the grandfather or from any other source, be it
separated property  or not,  his son  should have a share in
that and  it will become part of the joint family of his son
and grandson  and other members who form joint Hindu family
with him.  But the  question is; is the position affected by
section 8  of the  Succession Act,  1956 and if so, how? The
basic argument is that section 8  indicates the  heirs  in
respect of  certain  property  and  class  I  of  the  heirs
includes the son but not the grandson. It includes, however,
the son of the predeceased son.  It is this position which
has mainly  induced the Allahabad High Court in  the two
judgments, we have noticed, to take the view that the income
from the  assets inherited  by son from his father from whom
he has separated by  partition can be assessed as income of
the  son   individually.  Under  section  8  of  the  Hindu
Succession Act, 1956 the  property of the father  who dies
intestate devolves on his son in his individual capacity and
not as karta of  his own  family. On  the other  hand, the
Gujarat High Court has taken the contrary view.
     In Commissioner of  Income-tax,  Gujarat-I  v. Dr.
Babubhai Mansukhbhai  (Deceased), 108 I.T.R. 417 the Gujarat
High Court  held that  in the case of Hindus governed by the
Mitakshara law, where a son
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inherited the  self-acquired property of his father, the son
took it as the joint family property of himself and his son
and not as his separate property. The correct status for the
assessment to  income-tax of  the son  in  respect  of such
property was as representing his Hindu undivided family. The
Gujarat High  Court  could  not  accept  the  view  of the
Allahabad High Court mentioned hereinbefore. The  Gujarat
High Court  dealt with the relevant  provisions of  the Act
including section  6 and  referred to Mulla's Commentary and
some other decisions.
     Before we consider this  question further,  it will be
necessary to  refer to the view  of the  Madras High Court.
Before the  full bench of Madras  High Court  in Additional
Commissioner  of   Income-tax, Madras v.  P.L.   Karappan
Chettiar, 114  I.T.R. 523,  this question arose. There, on a
partition effected on March 22, 1954, in the Hindu undivided
family consisting  of P,  his wife,  their sons, K and their
daughter-in-law, P  was allotted  certain properties  as and
for this share and got separated. The partition was accepted
by the revenue under  section 25A  of the Indian Income-tax
Act, 1922. K along with his wife and their subsequently born
children constituted  a Hindu  undivided  family  which was
being assessed in that status. P died on September 9, 1963,
leaving behind his widow  and divided son, K, who was the
karta of  his Hindu undivided family, as his legal heirs and
under section  8 of  the Hindu Seccession  Act,  1956, the
Madras High  Court held, that these two persons succeeded to
the properties left by the deceased, P, and divided the
properties among  themselves. In  the assessment made on the
Hindu undivided family of  which K  was the  karta, for the
assessment year 1966-67 to  1970-71, the Income-tax Officer
included  for assessment  the income received  from the
properties inherited  by K from his father, P. The inclusion
was confirmed  by the  Appellate Assistant Commissioner but,
on further appeal, the Tribunal held that the properties did
not form  part of  the joint family properties and hence the
income therefrom  could not  be assessed in the hands of the
family. On  a reference to the High Court at the instance of
the revenue,  it was  held by  the Full bench that under the
Hindu law,  the property  of a male Hindu  devolved on his
death on  his sons  and grandsons as the grandsons also have
an interest in the property. However, by reason of section 8
of the Hindu Succession  Act, 1956,  the  son's  son gets
excluded and  the son  alone inherits  the property  to the
exclusion of  his son. No  interest  would  accrue  to the
grandson of  P in  the property left by him on his death. As
the effect  of section 8 was directly derogatory of the law
established according  to Hindu law, the statutory provision
must prevail  in view  of the  unequivocal intention  in the
statute itself,
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expressed in  section 4(1)  which says that to the extent to
which provisions have been made in the Act, those provisions
shall override the established provisions in the texts of
Hindu law.  Accordingly, in  that case, K  alone  took the
properties obtained  by his  father,  P,  in  the  partition
between them, and irrespective of the question as to whether
it was ancestral property in the hands of K or not, he would
exclude his son. Further, since the existing grandson at the
time of the death  of the grandfather had been excluded, an
after-born son of the son will  also not  get any interest
which the  son inherited  from the father. In respect of the
property obtained by K on the death of his father, it is not
possible  to  visualise or  envisage  any  Hindu  undivided
family. The   High  Court   held  that the  Tribunal was,
therefore, correct  in holding that the properties inherited
by K  from his divided father constituted his separate and
individual properties  and not the properties of the joint
family consisting  of himself, his wife, sons and daughters
and hence  the income  therefrom was  not assessable  in the
hands of  the assessee-Hindu  undivided family. This view is
in consonance  with the view of  the Allahabad High  Court
noted above.
     The Madhya Pradesh High Court had occasion to consider
this aspect  in Shrivallabhdas Modani v.  Commissioner  of
Income-Tax, M.P.-I,  138 I.T.R. 673, and the Court held that
if there  was no  coparcenary subsisting between a Hindu and
his sons  at the  time of  death  of  his  father,  property
received by  him on  his father's  death  could not  be  so
blended with  the property  which had  been allotted  to his
sons on a partition  effected prior  to the  death  of the
father. Section 4 of the Hindu Succession Act, 1956, clearly
laid down  that "save  as expressly provided in the Act, any
text, rule  or interpretation  of Hindu law or any custom or
usage as  part of  that law  in force immediately before the
commencement of the Act  should cease to have effect with
respect to  any matter for which  provision was made in the
Act". Section  8 of  the Hindu Succession Act, 1956 as noted
before, laid  down the scheme of succession to the property
of a  Hindu dying  intestate. The  schedule  classified the
heirs on  whom such property should devolve. Those specified
in class I took simultaneously to the exclusion of all other
heirs. A  son's son was not mentioned as an heir under class
I of  the schedule,  and, therefore,  he could not get any
right  in   the property   of his  grandfather  under the
provision. The right of  a son's  son in  his grandfather's
property during the lifetime  of his  father which  existed
under the  Hindu law  as in  force before  the Act,  was not
saved expressly by the Act,  and  therefore, the  earlier
interpretation of  Hindu law giving a right by birth in such
property "ceased to have effect". The Court
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further observed  that in construing a Codification Act, the
law which  was in  a force earlier should be ignored and the
construction should  be confined to the language used in the
new Act. The High Court felt that so construed, section 8 of
the Hindu Succession Act should be taken as a self-contained
provision  lying  down the  scheme  of devolution  of the
property of a Hindu dying intestate. Therefore, the property
which devolved on a  Hindu  on the  death  of his  father
intestate  after   the coming into  force  of  the  Hindu
Succession  Act,  1956, did  not  constitute  HUF  property
consisting of his own branch including his sons. It followed
the full  bench decision of the Madras High Court as well as
the view  of the Allahabad High Court in the two cases noted
above including the judgment under appeal.
     The  Andhra   Pradesh  High   Court  in   the  case  of
Commissioner of Wealth-Tax,  A.P.-II  v.  Mukundgirji, 144
I.T.R. 18,  had also  to consider the aspect. It held that a
perusal of  the Hindu  Succession Act, 1956 would  disclose
that Parliament wanted to  make a  clean break from the old
Hindu law  in certain  respects consistent  with modern and
egalitarian concepts. For the sake of removal of any doubts,
therefore, section  4(1)(a) was inserted. The High Court was
of the opinion that  it would, therefore, not be consistent
with the  spirit and  object  of  the  enactment  to  strain
provisions of  the Act to accord with the prior notions and
concepts of  Hindu law. That such a course was not possible
was made clear by the inclusion of females in class I of the
Schedule, and according to the Andhra Pradesh High Court, to
hold that  the property which devolved upon a Hindu under
section 8 of the Act would be HUF property in his hands vis-
a-vis his  own sons  would amount  to creating two  classes
among the  heirs mentioned  in class I, viz., the male heirs
in whose  hands it  would be joint family property vis-a-vis
their sons;  and female heirs with  respect to whom no such
concept could  be applied  or contemplated. The intention to
depart from  the pre-existing Hindu law was again made clear
by section  19 of the Hindu Succession Act which stated that
two or more heirs  succeed together  to the  property of an
intestate, they should take  the  property  as tenants-in-
common and  not as  joint tenants and according to the Hindu
law as obtained prior to Hindu  Succession Act two or more
sons succeeding to their  father's property  took  a  joint
tenants and  not tenants-in-common.  The Act,  however, has
chosen to  provide  expressly that  they  should  take  as
tentants-in-common. Accordingly the property which devolved
upon heirs  mentioned in  class I  of the  Schedule  under
section 8  constituted the  absolute properties and his sons
have no right by  birth in  such properties. This decision,
however,
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is under  appeal by certificate to this Court. The aforesaid
reasoning of  the High Court appearing at pages 23 to 26 of
Justice Reddy's view in 144 I.T.R. appears to be convincing.
     We have  noted the divergent views  expressed on this
aspect by the Allahabad High Court, Full Bench of the Madras
High Court, Madhya Pradesh and Andhra Pradesh High Courts on
one side and the Gujarat High Court on the other.
     It is  necessary to  bear in  mind the  Preamble to the
Hindu Succession  Act, 1956. The Preamble states that it was
an Act to amend  and codify  the law  relating to intestate
succession among Hindus.
     In view  of the  preamble to  the Act,  i.e.,  that  to
modify where necessary and to codify the law, in our opinion
it is  not possible when Schedule indicates heirs in class I
and only  includes son and does  not include  son's son but
does include  son of a predeceased son, to say that when son
inherits the  property in  the situation  contemplated  by
section 8  he takes it as karta of his own undivided family.
The Gujarat  High Court's  view noted  above,  if  accepted,
would mean  that though the son of a predeceased son and not
the son of a  son who is intended  to be  excluded  under
section 8  to inherit, the latter would by applying the old
Hindu law get a right by birth of the said property contrary
to the scheme outlined in section 8. Furthermore as noted by
the Andhra Pradesh High Court that the Act makes it clear by
section 4  that one  should look to the Act in case of doubt
and not to the pre-existing Hindu law. It would be difficult
to hold today the  property which devolved on a Hindu under
section 8  of the  Hindu Succession would be HUF in his hand
vis-a-vis his  own son; that would  amount to creating two
classes among the heirs mentioned in class I, the male heirs
in whose  hands it  will be  joint Hindu family property and
vis-a-vis son  and female heirs with respect to whom no such
concept could be  applied  or  contemplated. It  may  be
mentioned that heirs in class I of Schedule under section 8
of the Act included  widow, mother, daughter of predeceased
son etc.
     Before we conclude we may state that we have noted the
obervations of Mulla's Commentary  on Hindu  law 15th Edn.
dealing with  section 6 of the Hindu Succession Act at page
924-26 as  well as  Mayne's on Hindu Law, 12th Edition pages
918-919.
     The express  words of section 8 of The Hindu Succession
Act,
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1956 cannot  be ingorned  and must  prevail. The preamble to
the Act reiterates that  the Act is, inter alia, to 'amend'
the law,  with that  background the  express language  which
excludes son's son but included son  of a  predeceased son
cannot be ignored.
     In the  aforesaid light  the  views  expressed  by the
Allahabad High Court, the Madras High Court, Madhya Pradesh
High Court,  and the Andhra Pradesh High Court, appear to us
to be  correct. With respect we are unable to agree with the
views of the Gujarat High Court noted hereinbefore.
     In the premises the judgment and order of the Allahabad
High Court  under appeal  is affirmed  and the appeals Nos.
1668-1669 of  1974 are dismissed  with costs. Accordingly
Appeal No.  1670 of  1974 in Income-tax Reference which must
follow as  a consequence  in view  of the  findings that the
sums standing  to the credit of Rangi Lal belongs to Chander
Sen in his individual capacity and  not  the joint  Hindu
family, the   interest of  Rs.  23,330  was  an  allowable
deduction in  respect of  the income  of the family from the
business. This appeal also  fails  and is  dismissed with
costs.
     The Special  Leave Petition  No. 5327 of 1978 must also
fail and is dismissed. There will be no order as to costs of
this.
A.P.J.     Appeals and Petition dismissed.
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