Citation : 2013 Latest Caselaw 372 Bom
Judgement Date : 18 December, 2013
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR
SECOND APPEAL No.42 OF 2013
1. Smt. Vandana wd/o. Ramanna Marchettiwar,
Aged about 50 years,
Occupation : Household.
2. Yogesh Ramanna Marchettiwar,
Aged about 37 years,
Occupation : Tailour.
3. Nitin Ramanna Marchettiwar,
Aged about 28 years,
Occupation : Tailour.
4. Smt. Pinky w/o. Arun Gandhewar,
Aged 33 years,
Occupation : Tailour.
All the appellants 1 to 4 are resident of
House No.283-1, Ward No.71,
Abedkar Nagar, Dharampeth,
Nagpur-10.
5. Smt. Vijeta w/o. Shekhar Manthapurwar,
Aged 31 years,
Occupation : Household,
R/o. Darjee Mohall Chhaoni,
Nagpur. : APPELLANTS
(Ori. Defendants)
...VERSUS...
Pradip s/o. Ramanna Marchettiwar,
Aged about 39 years,
::: Downloaded on - 06/01/2014 04:08:36 :::
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Occupation : Errand Boy,
C/o. Laxmi Ladies Tailours,
Sahare Building, Bazar Road,
Gokulpeth, Nagpur-10. : RESPONDENT
(Original Plaintiff)
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Mr. N.S. Badhe, Advocate for the Appellants.
Mr. R.J. Verma, Advocate for the Respondent.
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CORAM : S.B. SHUKRE, J.
ig DATE : 18 th
DECEMBER, 2013.
ORAL JUDGMENT :
1. By this appeal, the appellants have challenged the
judgment and decree passed by the 9th District Judge, Nagpur
in Regular Civil Appeal No.86 of 2011 on 17.7.2012 modifying
the judgment and decree passed by the 8th Joint Civil Judge,
Junior Division, Nagpur in Regular Civil Suit No.729 of 2008
on 20th December, 2010. The respondent is the original
plaintiff and the appellants are the original defendants against
whom the respondent had filed civil suit for partition and
separate possession. For the sake of convenience parties to the
appeal are hereinafter referred to as the plaintiff and the
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defendants.
2. The defendant No.1-Smt Vandana is the step-mother
of the plaintiff. Defendant No.2-Yogesh and defendant No.4-
Smt. Pinky are respectively the real brother and real sister of
the plaintiff, while defendant No.3-Nitin and defendant No.5-
Smt. Vijeta are respectively the step-brother and step-sister of
the plaintiff. The plaintiff is the son of late Ramanna
Marchettiwar, who died on 13.3.1990 leaving behind the
plaintiff, defendants and one Sandeep. Late Ramanna
Marchettiwar owned a house with plot bearing Corporation
House No.283, New House No.283-A and city survey No.495
admeasuring 450 sq.ft. (hereinafter referred to as "suit
property"). He died intestate and the plaintiff and the
defendants being class-I heirs of late Ramanna succeeded to
the suit property, having equal shares therein. The plaintiff
submitted that Sandeep had separated himself by obtaining a
sum of Rs.78,000/- on 3.1.2007 and executed a
relinquishment-deed giving up his right in the suit property.
The plaintiff submitted that Sandeep had relinquished his share
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in favour of rest of the successors to the property and,
therefore, each of the legal heirs had equal 1/6th share in the
suit property. He further submitted that since the defendant
No.1 and defendant No.3 used to quarrel with him, he decided
to separate himself from the family and demanded his separate
1/6th share in the suit property. Meanwhile, the plaintiff
further submitted, the defendant demolished the old house and
caused loss to him which came to Rs.25,000/-, commensurate
with his 1/6th share in the suit property. Since the defendants
denied separate share and compensation to the plaintiff, he
filed a suit for partition and separate possession and also
compensation of Rs.25,000/- with interest at 12% per annum
against the defendants.
3. The defendants resisted the suit insofar as it related
to claim put up by the plaintiff about his 1/6th separate share in
the suit property. The defendants admitted the relationship
and also entitlement of the plaintiff to his share in the suit
property. But, they submitted that when Sandeep separated
himself from the family and he had released his right and
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interest in the suit property exclusively in favour of defendant
No.1-Vandana by accepting an amount of Rs.78,000/- from
her, which amount was entirely borne by her, the defendant
No.1 became entitled not only to her own 1/7th share, but also
1/7th share of Sandeep in the suit property. Thus, they
submitted, defendant No.1 was entitled to 2/7th share in the
suit property and plaintiff could only claim 1/7th share in the
suit property and not the 1/6th share. They submitted that the
plaintiff had been residing separately since about one and half
year prior to filing of the suit and he had not contributed in
any way in the household affairs of the joint family. They also
submitted that since the suit house was old, it was demolished
by them and they constructed a new house. They submitted
that the plaintiff did not make any contribution towards
construction of a new house. They also offered to pay Rs.
64,285/- as value of 1/7th share to the plaintiff towards full and
final settlement of the dispute between them.
4. The trial Court framed the issues and recorded the
evidence and after considering the argument of both sides
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decreed the suit with costs. It declared that the plaintiff was
entitled for partition and separate share out of the suit property
to the extent of 1/7th equal share and also granted
compensation of Rs.15,000/- in lieu of demolition of previous
construction by it's judgment and decree passed on 20th
September, 2010. In the first appeal filed against it by the
plaintiff, the learned District Judge modified the judgment and
decree of the trial Court and instead of 1/7th share, it gave
1/6th share to the plaintiff and defendants. It also directed
appointment of Court Commissioner for making necessary
inquiry for distribution of share of the plaintiff and separate
possession by metes and bounds. Not satisfied with the
judgment and decree of the first appellate Court passed on
17.7.2012, the defendants are before this Court in the present
second appeal.
5. The appeal was admitted by this Court on 4.12.2013.
The substantial questions of law that arise for my consideration
are :
"1. Whether the first appellate Court was
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justified in granting 1/6th share to the
respondents in the suit property ?
2. Whether the suit property was capable of being subjected to equal divisions by metes and bounds without any application of principle of owelty or equality in value of shares ?"
6. In this case, rival parties placed their reliance upon
one document vide Exhibit-45 which they called
relinquishment-deed, in order to justify their respective stands.
The defendants submitted that this document at Exhibit-45
showed that Sandeep had relinquished his share and since
there was an admission given by the plaintiff that he had not
contributed anything towards payment of the amount of Rs.
78,000/- to Sandeep for release of his share in the suit
property, it would mean that release was only in favour of
defendant No.1 and not in favour of all co-sharers. They then
claimed that such release of share would only make share of
plaintiff as 1/7th and not 1/6th as claimed by him. On the basis
of the same document or relinquishment-deed the plaintiff
submitted that it sufficiently established the fact, which was
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clear from its recitals, that Sandeep had relinquished his share
in favour of all the co-sharers and not any single co-sharer, and
this would give him 1/6th share in the suit property.
7. These rival contentions were rejected by the trial
Court on a legal ground. The trial Court reasoned that even
though the document at Exhibit-45 was admitted by both the
parties, it was a document whereby right, title and interest in
immovable property having value of more than Rs.100/- had
been relinquished or released in favour of other co-sharers and,
therefore, it required execution on a proper stamp as well as
compulsory registration under Section 17 of the Registration
Act, 1908. As this document was not a registered one, though
compulsorily registrable, the trial Court did not take it into
consideration and proceeded to hold that each of the co-
sharers would have equal shares. Accordingly, the trial Court
declared that the plaintiff was entitled for his share out of the
suit property to the extent of 1/7th portion.
8. The first appellate Court while reversing the finding
of the trial Court held that the plaintiff and the defendants, six
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in number, were entitled to have equal shares in the suit
property and gave each of them 1/6th share. The first appellate
Court took into into account said relinquishment-deed, styled
as partition-deed (Exhibit-45), and it particularly referred to
the recitals of this document which stated that Sandeep the
party No.1, had relinquished his share in favour of party Nos.2
to 7 i.e. plaintiff and the defendants. The first appellate Court
found that since Sandeep had already relinquished his share, it
was not necessary to carve out his share and, therefore, the
first appellate Court gave 1/6th share to each of the six parties
to the present dispute i.e. plaintiff and the defendants. The
first appellate Court did not consider the requirement of
compulsory registration of the document under Section 17 of
the Registration Act, 1908. It appears that it read in evidence
this document on the premise that when a co-parcener or
co-sharer in a joint property can surrender his share orally at
the time of partition and when partition-deed has not been
disputed by any of the rival parties, the partition or the
relinquishment-deed vide Exhibit-45, can also be read in
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evidence.
9. Learned counsel for the plaintiff submits that since
this document was admitted by the defendants, there was no
need for the first appellate Court to reject it on the ground of it
being an unregistered document. He further submitted that
this document, witnesses only a transaction of family
settlement in which there was neither any transfer of interest
nor creation of interest and, therefore this document would not
require any registration. In support, he has placed reliance
upon the decision of the Uttrakhand High Court in the case of
Mani Ram vs. Padam Datta (D) by LRs. and another,
reported in AIR 2007 Uttarakhand 74.
10. I think, the reasoning given by the first appellate
Court and also the contentions canvassed on behalf of the
plaintiff do not have any legal basis. The document Exhibit-45
though styled as a partition actually witnesses transfer of
interest in immovable property for a consideration. True
construction of such a document can be made only by
gathering from it's terms as a whole, recitals and attending
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circumstances, the intention of the parties. In this regard, a
useful reference may be made to law laid down by Hon'ble
Supreme Court in the case of B.K. Muniraju vs. State of
Karnataka and others, reported in (2008) 4 SCC 451,
Hon'ble Supreme Court in para 18 it observed as under :
"...........In order to know the real nature of the
document, one has to look into the recitals of the document, and not the title of the
document. The intention is to be gathered from the recitals in the deed, the conduct of the parties and the evidence on record. It is
settled law that the question of construction of a document is to be decided by finding out the intention of executant, firstly, from a comprehensive reading of the terms of the
document itself, and then, by looking into--- to
the extent permissible---the prevailing circumstances which persuaded the author of the document to execute it. With a view to ascertain the nature of a transaction, the
document has to be read as a whole. A sentence or term used may not be determinative of the real nature of transaction........."
11. Speaking about the present case, if it is seen that the
intention of the parties is only to add or alter or enlarge the
existing shares and not to operate it as transfer or conveyance,
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as gathered by applying the above-stated principles, it may
assume the form of family settlement, not requiring
registration. Here by said document Sandeep has accepted an
amount of Rs.78,000/- and in lieu thereof, has released his
share in favour of other co-sharers. Though the word 'release'
has been used, the intention of the parties, as disclosed by it's
terms, recitals and other attending circumstances, is to effect
transfer of right, interest or title over the suit property, to the
extent of 1/7th share therein, to remaining parties for a
consideration of Rs.78,000/-. It also shows intention to
extinguish forever the right, title or interest of Sandeep in the
suit property. Such a document cannot be construed as a mere
family settlement or something which does not transfer right,
title or interest and which only enlarges present shares of other
co-owners. Apart from transfer of property, it also discloses
intention of parties to permanently extinguish right, title or
interest of one of the co-owners in suit property. Such a
document, therefore, would be covered by the provision of
Section 17(1) of the Registration Act, 1908, requiring
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compulsory registration. This document (Exhibit-45) being not
registered, cannot, therefore, be read in evidence. Besides,
undisputedly it is insufficiently stamped and there being no
compliance with proviso to Section 34 of the Bombay Stamps
Act, 1958, it is inadmissible in evidence. Therefore, the trial
Court rightly rejected it and the first appellate Court should not
have placed any reliance upon it.
12. Even in the said case of Mani Ram (supra), the High
Court found that since by the document dated 27.3.1961 in
question there, there was division of 1/3rd share of each of the
sons by executant Jeet Ram Bahuguna, who left no share for
himself, the act amounted to relinquishment of his interest in
the property and, therefore, that document was found to be
covered by clause (b) of Section 17 of the Registration Act,
1908. In other words, Uttarakhand High Court held that
whenever a person by a document relinquishes interest in the
immovable property covered by clause (b) of Section 17 of the
Registration Act, 1908, it would require registration. So this
case, on facts and law does not support the plaintiff.
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13. Mr.Verma, learned counsel for the plaintiff has
argued that the document vide Exhibit-45 is required to be
read as a whole and then it would be found that this document
cannot be considered to be creating or transferring or
extinguishing right, title or interest and, therefore, would not
require any compulsory registration. He places reliance upon
the case of Garuda Satyanarayana vs. G. Venkatachalapathi,
reported in AIR 1969 Andhra Pradesh 131. In this case, it
has been observed by the learned Single Judge of Andhra
Pradesh High Court that while constructing a document which
purports to extinguish or create title or interest in the property,
intention of the parties should be taken into account and the
document be read as a whole. It is also held that there is a
distinction between mere recital of a fact and something which
in itself creates or extinguishes a right or interest. There can
be no dispute about the proposition of law and in fact it has
been applied by me while construing the document at
Exhibit-45, as can be seen from the discussion made earlier.
14. For these reasons, I find no substance in the
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argument advanced by learned counsel for the plaintiff that
there was nothing wrong on the part of the first appellate
Court in taking into consideration the partition or
relinquishment-deed vide Exhibit-45. The first appellate Court
has ignored the legal principles in construing the document
and wrongly placed reliance upon it in recording its findings.
Such findings are perverse and cannot be sustained in law. It
would then follow that all the seven co-owners would have
equal rights and the suit property would have to divided into
seven equal parts with 1/7th share each being allotted to the
plaintiff and the defendants. This is what the trial Court has
done and rightly so. The decree of the trial Court in this
regard, therefore, is required to be restored. The first
substantial question of law is answered accordingly.
15. As regards practicability of the suit property being
subjected to equal divisions by metes and bounds, one has to
take into consideration the total area of the suit property. The
suit property is a plot with a house constructed thereon. It's
total area is admittedly 450 sq.ft. and it is obvious that in such
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a small area, if seven shares are carved out, and separately
allotted, it would be well nigh impossible for the plaintiff and
each of the other co-sharers to enjoy the suit property fully and
satisfactorily. If such a plot is divided in seven equal parts,
what would come to the share of the plaintiff would be a
minuscule piece of land having area of not more than 64.29
sq.ft. In such a small area, I do not think any workable
construction can be made and even permission for construction
under the present Municipal Laws would be difficult to come
by. This problem, in my opinion, can be solved by applying the
principle of owelty.
16. In the case of Badri Narain Prasad Choudhary and
others vs. Nil Ratan Sarkar, reported in (1978) 3 SCC 30
referred to me by the learned counsel for the defendants, the
Hon'ble Supreme Court has explained the principle of owelty.
It is held that when the suit property is incapable of division in
specie, or in other words when it is not possible to carve out
specific shares from the suit property and allot them separately
to the co-sharers or co-parceners for their effective enjoyment,
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the rights and interests in the property should be separated,
only by allowing one of them to retain the whole of the
property on payment of just compensation to the other. In
paragraph 19, page 35, the Hon'ble Supreme Court in this case
has observed thus :
"The suit property, being incapable of division
in specie, there is no alternative but to resort to the process called owelty, according to which,
the rights and interest of the parties in the property will be separated, only by allowing one of them to retain the whole of the suit
property on payment of just compensation to the other. As rightly pointed out by K. Subba Rao, C.J. (speaking for a Division Bench of Andhra High Court in R. Ramaprasada Rao vs.
R. Subbaramaiah), in cases not covered by
Sections 2 and 3 of the Partition Act, the power of the court to partition property by any equitable method is not affected by the said Act."
17. In the earlier case of T.S. Swaminatha Odayar vs.
Official Receiver of West Tanjore, reported in AIR 1957 SC
577 also, the Hon'ble Apex Court has elaborated the principle
of owelty. It means when it is not possible to divide the
property by metes and bounds, there being necessity of
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allocation of properties of unequal values amongst the
members of the joint family creating a situation of inequality,
there would have to be adjustment of the values by prodding
for the payment, by a member getting property of larger value,
to the member receiving lesser property. Such equalizing of
shares has been recognized in law and a provision for such
payment is termed "a provision for owelty or equality of
partition". The observations of the Hon'ble Apex Court
appearing in paragraph 16 are useful in this regard and they
are re-produced thus :
"This position has been summarized
in Freeman's Cotenancy and Partition (1886 Edition) page 676, para 507 under the caption of "Owelty":
"Owelty" :- When an equal partition cannot be
otherwise made, Courts of equity may order that a certain sum be paid by the party to whom the most valuable property has been assigned.
The sum thus directed to be paid to make the partition equal is called 'Owelty'. It is a lien on
the property on account of which it was granted. "The law cannot contemplate the injustice of taking property from one person and giving it to another without an equivalent, or a sufficient security for it." The lien on owelty has precedence over prior mortgages and other liens existing against the cotenant
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against whom the owelty was awarded."
18. Learned counsel for the defendants has in fact
strongly advocated for application of the said principle of
owelty or equalizing of the value of the shares while
distributing them to the co-sharers in this case. Learned
counsel for the plaintiff, however, does not agree. He submits
that the first appellate Court had considered the application of
this principle and had found that it could not be straight way
applied as it was not possible to give any positive finding as to
whether or not the suit property was incapable of division by
metes and bounds. But, the learned counsel for the plaintiff
could not provide any satisfactory answer to the question as to
how separate and independent construction is possible on a
small area of about 64 sq.ft. As a matter of fact, it requires no
evidence to say that separate and independent construction is
not possible on such a small area as it is, res ipsa loquitur the
thing speaks for itself. It, by its very nature, announces to the
whole world that a separate and independent construction of
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livable room under the present set up of Municipal Laws is not
possible. Besides, there is also balance of convenience tilting in
favour of the defendants. They are already occupying the suit
property and plaintiff is admittedly staying separately from
them. Then, this case is also not covered by Sections 2 and 3
of the Partition Act, 1893. Therefore, in my opinion this is a fit
case, wherein the principle of owelty, as evolved in afore-stated
cases, must be applied. Second substantial question of law is
answered accordingly.
19. In the circumstances, I find that the parties already
in possession of the suit property should retain the same and
party not in possession thereof should get compensation equal
in value of his share in the suit property, on the basis of
principle of owelty. The appeal deserves to be allowed in these
terms.
20. Thus, the appeal is allowed and the judgment and
decree of the first appellate Court dated 17.7.2012 are hereby
quashed and set aside.
21. The judgment and decree of the trial Court dated
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20th December, 2013 are modified and substituted by following
directions :
A) The plaintiff and the defendants shall have
1/7th share each in the suit property as described in para 3 of
the plaint.
B) The defendants shall be entitled to retain
with themselves the whole suit property together with a house
thereon and plaintiff shall be entitled to receive compensation
in money, in lieu of his 1/7th share, in the suit property.
C) Compensation payable to the plaintiff shall
be determined and assessed at market rate.
D) The Court Commissioner be appointed for
making necessary inquiry in accordance with law for payment
of compensation to the plaintiff equal to the value of his 1/7th
share in the suit property at market rate.
E) The defendants shall pay to the plaintiff an
amount of Rs.15,000/- towards costs and compensation for the
demolition of the previous construction together with interest
at the rate of 6% p.a. within 3 months from the date of this
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order. If any amount is deposited in lower Court by defendants
in execution proceedings, it shall be adjusted in payment of
principal amount of Rs.15,000/- towards costs and
compensation, under this head.
F) Costs shall follow the result.
G) Decree be drawn up accordingly.
JUDGE
DWW
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