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Nathaji @ Sudhakar Tatyaba Katkar ... vs Shri Vithal Satava Katkar
2025 Latest Caselaw 2611 Bom

Citation : 2025 Latest Caselaw 2611 Bom
Judgement Date : 14 February, 2025

Bombay High Court

Nathaji @ Sudhakar Tatyaba Katkar ... vs Shri Vithal Satava Katkar on 14 February, 2025

2025:BHC-AS:7459




                                                                           901-SA-637-2011.doc




    rrpillai              IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                         CIVIL APPELLATE JURISDICTION
                                       SECOND APPEAL NO. 637 OF 2011

                    Nathaji @ Sudhakar Tayaba Katkar,
                    since deceased through his heirs and
                    legal representatives:
                    a) Kusum Nathaji Katkar
                    b) Rajlaxmi @ Jayashri Nathaji Katkar
                    c) Maya Nathaji Katkar
                    d) Jitendra Nathaji Katkar
                    All residing at Kukudwad, Taluka Man,
                    District Satara.                                                ... Appellants
                                     vs.
                    1. Shri Vithal Satava Katkar,
                        Parera Apartments, Hansnagar,
                        Pachpakadi, Thane -400 601.
                    2. Shri Shrinavas Ganpat Kale,
                        Taluka Patan, District Satara.
                    3. Shri Ajit Ganpat Kale,
                        Taluka Karad, District Satara.
                    4. Aruna Ganpat Kale,
                        Khurd, Taluka Karad, Dist: Satara.
                    5. Kalawati Bhagwanrao Yadav, since
                        deceased through his heirs and

                                                  Page no. 1 of 32



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      legal representatives:
 a) Bhagwan Bandoba Yadav,
 b) Ashok Bhagwan Yadav
 c) Arvind Bhagwan Yadav
 d) Satish Bhagwan Yadav
 e) Sheela Prakash Kale
 All agriculturist, residing at Kadepur,
 Taluka Khanapur, District Sangli.                      ... Respondents

 Mr. R.N. Kachare a/w. Mr. Pradeep Gole for the Appellants.

 Mr. D.S. Mhaispurkar for Respondents.


                                        CORAM : GAURI GODSE, J.
                                RESERVED ON : 24 th OCTOBER 2024
                               PRONOUNCED ON: 14th FEBRUARY 2025


 JUDGMENT:

BRIEF FACTS:

1. This appeal is preferred by the heirs and legal

representatives of the original plaintiff to challenge the

judgment and decree passed by the first appellate court. The

trial court decreed the plaintiff's suit, declaring that the suit

properties are owned by the plaintiff, defendant no.3 and heirs Page no. 2 of 32

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of defendant no.2. The trial court had directed the defendants

not to obstruct the plaintiff's possession over the suit property.

The trial court's decree declared that defendant no.3 and the

heirs of defendant no.2 can claim partition of the suit property

by a separate legal proceeding. However, they were held not

entitled to disturb the plaintiff's possession over the suit

property till recovery of their shares after following due process

of law. The first appeal preferred by defendant no.1 is allowed,

and the trial court's judgment and decree is set aside, and the

suit is dismissed. Hence, the second appeal by the heirs and

legal representatives of the plaintiff.

2. The second appeal is admitted on the following

substantial questions of law:

I) What is the legal effect of the fact of adoption dated

12th September 1940?

II) Whether the appellate court was correct according to

law to interfere with the decree passed by the trial court?

Page no. 3 of 32

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3. The plaintiff had filed a suit for declaration of his title in

respect of the suit property. The plaintiff is defendant no. 1's

biological brother and Defendant no.2 - Pushpalata, and

defendant no.3 - Kalawati, are their biological sisters. One

Tatya Katkar was their father. At the age of 15 years,

defendant no. 1 (Vithal) was given in adoption to Ratnabai

Sakharam Katkar on 12th May 1940 by executing a registered

adoption deed. Before giving defendant no. 1 in adoption, his

biological father, Tatya, purchased the suit property in the

name of defendant no. 1, Vithal. In the revenue record, the suit

property was entered into defendant no.1's name, represented

through his adoptive mother as guardian. Thus, based on the

registered sale deed and the revenue record in his name,

defendant no. 1 claims to be the exclusive owner of the suit

property.

4. The plaintiff contends that defendant no. 1 was given in

adoption in a different family, and he had no right with respect

to the suit property. The plaintiff contends that the suit property

purchased in the name of defendant no.1 was purchased from

Page no. 4 of 32

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the joint family income. The suit property belongs to the joint

family of Tatya, plaintiff and defendant nos. 2 and 3.

5. Thus, the controversy in the suit is regarding the fact of

the sale deed in the name of defendant no.1, the revenue

record in the name of defendant no.1 represented through his

adoptive mother as guardian and the plaintiff's claim that he

and defendant nos. 2 and 3 had a share in the suit property as

it belonged to the joint family of Tatya. The trial court held that

in view of the adoption deed, defendant no.1 was not entitled to

claim any right in the suit property. However, the first appellate

court held that the suit property was purchased by way of a

registered sale deed in the name of defendant no.1. The first

appellate court, thus, held that the plaintiff would not be entitled

to seek any declaration of ownership in the property which was

purchased in the name of defendant no.1.

SUBMISSIONS ON BEHALF OF THE APPELLANT:

6. Learned counsel for the appellant (plaintiff) submitted that

the sale deed dated 21st May 1940 was executed in the name

of defendant no.1; however, the property was purchased from Page no. 5 of 32

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joint family income by their father, Tatya. Learned counsel for

the appellant further submitted that after execution of the sale

deed, defendant no.1 was given in adoption on 12 th September

1940. He submitted that since the sale deed was standing in

the name of defendant no.1, who was a minor at the relevant

time, he was shown as represented through his adoptive

mother as a guardian while making the entry in the revenue

record. He submitted that Tatya expired sometime in the year

1968, and the suit was filed in the year 1985 for declaration on

the ground of obstruction made by defendant no.1 on 7 th June

1985.

7. Learned counsel for the appellant relied upon defendant

no.1's pleading in paragraph 10 of the written statement. He

submitted that defendant no.1 raised an alternative plea of

perfecting title by adverse possession. He submits that the

alternate plea of defendant no.1 is sufficient ground to hold that

the property never belonged to defendant no.1, and it was a

joint family property of the plaintiff, Tatya and defendant nos. 2

and 3.

Page no. 6 of 32

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8. With reference to question no.1 framed by this court,

learned counsel for the appellant submitted that Tatya

purchased the suit property from joint family income; therefore,

after the adoption, it remained in the joint family. He submitted

that since defendant no.1 was given in adoption in a different

family, the property remained in the joint family of the plaintiff,

Tatya and defendant nos. 2 and 3. With regard to the mutation

entry effected in the name of defendant no.1, after adoption,

learned counsel for the appellant submitted that since the sale

deed was in the name of defendant no.1, the mutation entry

ought to have been effected in the name of defendant no.1. He

submits that only because defendant no.1 was a minor, he was

shown as represented through his adoptive mother-Ratnabai.

He, however, submitted that the mutation entry, in any case,

would not create any right in favour of defendant no.1.

9. Learned counsel for the appellant submitted that till 1968,

i.e. during the lifetime of Tatya, defendant no.1 never claimed

any right in respect of the suit property. He submitted that

though the property continued to remain in the name of

defendant no.1, the suit property was always in possession of Page no. 7 of 32

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Tatya and the plaintiff, and they were cultivating the same.

Learned counsel for the appellant submits that the adoption of

defendant no.1, in whose favour the sale deed is executed, has

no right in the suit property as the suit property belongs to the

joint family of Tatya, plaintiff and defendant nos. 2 and 3.

10. Learned counsel for the appellant submitted that even if

defendant no.1 had any right in the suit property, the same

stood divested in view of the adoption. To support his

submissions, learned counsel for the appellant relied upon the

decisions of this court in the case of Dattatraya Sakharam Devli

Vs. Govind Sambhaji Kulkarni1, which was followed in the case

of Bai Kesarba Vs. Shivsangji Bhimsangji Thakor 2. He

submitted that in view of the settled legal principles, once

defendant no.1 was given in adoption, he lost all his rights,

which he otherwise acquired through his natural father. He

submits that in view of the legal principles settled in the

aforesaid decisions, the right, if any, in favour of defendant

no.1 stood extinguished in view of the adoption. Learned

counsel for the appellant, thus, submitted that the trial court 1 1916 SCC Online Bom 65 2 1932 SCC Online Bom 28 Page no. 8 of 32

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had rightly decreed the suit, declaring the plaintiff and

defendant nos. 2 and 3 as owners of the suit properties.

11. Learned counsel for the appellant submits that the first

question of law thus be answered in favour of the appellant. He

submits that in view of well-settled legal principles, the legal

effect of the adoption deed would divest defendant no.1 from

any of the rights created in his favour regarding the suit

property. He thus submits that the first appellate court erred in

interfering with the findings recorded by the trial court and erred

in not considering the legal effect of the adoption deed. He,

thus submits that both the questions of law must be answered

in favour of the appellant.

SUBMISSIONS ON BEHALF OF RESPONDENT NO.1:

12. Learned counsel for respondent no. 1 (defendant no.1)

submitted that there is a presumptive value to the contents of

the registered sale deed in the name of defendant no.1. He

submits that the entry in the revenue record after adoption

deed clearly indicates that the intention of Tatya always was to

keep the suit property as exclusively owned by defendant no.1.

Page no. 9 of 32

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Hence, inspite of adoption, the entry in the revenue record was

made in the name of defendant no.1 shown as represented

through his adoptive mother.

13. To support his submissions on the legal effect of the

adoption deed, learned counsel for defendant no.1 relied upon

the decision of the Hon'ble Apex Court in the case of

Omprakash Sharma alias O.P. Joshi Vs. Rajendra Prasad

Shewda and Ors3. Learned counsel for respondent no.1

submitted that to determine the nature of the transaction, the

relevant circumstances would indicate the actual intention of

execution of the document. He, thus, submits that the entry in

the revenue record clearly showed Tatya's intention that the

suit property was purchased in the name of defendant no.1 as

his independent property and there was no intention to keep it

as joint family property.

14. Learned counsel for respondent no.1, submitted that

there is no evidence produced by the plaintiff to show that there

was joint family property or any joint family income. He submits

that, admittedly, Tatya was in Government service; hence, it is 3 (2015) 15 SCC 556 Page no. 10 of 32

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clear that the suit property was purchased from his

independent income. Learned counsel for respondent no.1,

thus submits that the legal principles settled in the case of

Omprakash Sharma squarely apply to the facts of the present

case. He thus submits that the execution of the adoption deed

would have no effect on respondent no.1's absolute title over

the suit property in view of the registered sale deed in his

name. He submits that the undisputed mutation entry in the

name of respondent no.1, after the adoption deed, also

indicates that the intention of Tatya was to purchase the suit

property as an independent property of defendant no.1.

Learned counsel for respondent no.1; thus, submits that there

would be absolutely no effect on respondent no.1's title, in view

of adoption deed. He thus submits that the first appellate court

rightly interfered in the findings recorded by the trial court and

correctly set aside the trial court's judgment and decree and

dismissed the suit. Learned counsel for respondent no.1 thus

submits that the substantial questions of law must be answered

in favour of defendant no.1.





                               Page no. 11 of 32




                                                               901-SA-637-2011.doc



 SUBMISSIONS                   IN   REJOINDER             ON        BEHALF             OF

 APPELLANT:


15. With reference to the submissions made on behalf of

defendant no.1, learned counsel for the appellant submitted

that there was a presumption of jointness of the Hindu joint

family of Tatya, plaintiff and defendant nos. 2 and 3. He, thus,

submits that the burden would lie upon defendant no.1 to show

that there was no joint Hindu undivided family. Learned counsel

for the appellant further submits that after the adoption,

defendant no.1 takes the name of his adoptive family.

However, the sale deed remained in the name of defendant

no.1's biological family. He submits that the name in the sale

deed was never to change after the adoption. Hence, only

based on the sale deed in the biological name of defendant no.

1, he would not get any right in respect of the suit property after

his adoption.

16. Learned counsel for the appellant submits that the

decision of the Hon'ble Apex Court, in the case of Omprakash

Sharma, is based on the provisions of the Benami transaction.

Page no. 12 of 32

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He submits that in the present case, since there was a Hindu

undivided joint family and Tatya was Karta or the Manager of

the Hindu joint family, he always had the right to purchase the

suit property in the name of one member. He submits that,

admittedly, defendant no.1 was minor at the time of execution

of the sale deed, and he had no independent source of income.

He thus submits that the suit property, though purchased in the

name of defendant no.1, would continue to remain in the joint

family property of Tatya. He thus submits that in view of

adoption, the right would stand divested, and thus, the first

appellate court erred in not considering the adoption deed's

legal fact. Thus, he submits that both questions must be

answered in favour of the appellant.

CONSIDERATION OF THE SUBMISSIONS AND ANALYSIS:

17. I have considered the submissions made on behalf of

both parties. I have perused both the judgments, pleadings,

and evidence on record. The relations between the parties are

not in dispute. The basic facts regarding the execution of the

sale deed, the adoption deed, and the mutation entry in the

Page no. 13 of 32

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name of defendant no.1 after his adoption are not in dispute. It

is not in dispute that Tatya was in Government service. There

is no evidence on record to indicate that there was any joint

family of Tatya and his children and that there was any joint

family income. Thus, the sale deed was executed in favour of

defendant no.1 by Tatya from his independent income from his

government service.

18. The sale deed was executed in the name of defendant

no.1 before he was given in adoption. After he was given

adoption, mutation entry no. 2406, was effected in the name of

defendant no.1 based on the sale deed executed prior to his

adoption. The mutation entry clearly records that defendant

no.1 was a minor and, thus, was represented through his

adoptive mother as a natural guardian. The said mutation entry

is not under challenge. Even after the adoption, the entry in the

revenue record was made in the name of defendant no.1,

represented through his adoptive mother as guardian.

Thus, Tatya's intention is very clear to purchase the suit

property for defendant no.1. Thus, the undisputed mutation

entry no. 2406, supports the case of defendant no.1 that the Page no. 14 of 32

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suit property was always treated as the independent property

of defendant no.1.

19. The only fact that defendant no.1 was a minor and his

biological father purchased the suit property in his name, ipso

facto, will not make it a joint family property, in the absence of

any iota of evidence that there existed a joint family of Tatya

and he intended to treat the property as a joint family property.

The presumptive value of the registered document has to be

taken into consideration. In the present case, the fact of the

adoption deed would only mean that defendant no.1 was given

in adoption in another family, he acquired the name of the

adoptive family and all his ties with his biological family were

severed.

20. I do not find any substance in the argument raised on

behalf of the appellant that since the sale deed was executed

in the biological name of defendant no.1, after his adoption,

there was no necessity to change the name in the sale deed.

The fact of effecting mutation entry in the name of defendant

no.1 after his adoption through his adoptive mother

Page no. 15 of 32

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as guardian clearly validates execution of the sale deed in the

name of defendant no.1 to be his independent property.

21. There is no evidence to indicate that there was any joint

family of Tatya and the possession was with the joint family.

Therefore, it cannot be assumed that the suit property was

purchased as joint family property and therefore the plaintiff

was in possession. Thus, without evidence, the suit property

cannot be accepted as a joint family property. Even otherwise,

there is nothing on record to indicate that there was any joint

family income. Admittedly, Tatya was in Government service,

and thus, it is clear that Tatya purchased the suit property from

his independent source of income. Thus, I see no reason to

accept that the suit property anytime was treated as a joint

family property of Tatya and defendants nos. 2 and 3.

22. The payment of consideration by Tatya would not mean

that it was a joint family property. The most crucial aspect

regarding mutation entry in the name of defendant no.1 through

his adoptive mother clearly indicated that Tatya's intention was

to purchase suit property as an independent property of

Page no. 16 of 32

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defendant no.1. Thus, the execution of adoption deed would

have no legal effect on the sale deed which was in the name of

defendant no.1. The sale deed continued to stand in the

biological name of defendant no.1 would not take away his

absolute right created in his favour in view of registered sale

deed in his name. Thus, the legal effect of the adoption deed

would only be limited to defendant no.1, being a member of the

adoptive family and not part of Tatya's family.

23. The execution of the registered sale deed in the name of

defendant no.1 and the execution of mutation entry after his

adoption support defendant no.1's case that the suit property

was always treated as his independent property. Thus,

execution of the adoption deed would not divest the rights

created in favour of defendant no.1 by way of execution of the

registered sale deed in his name.

LEGAL PRINCIPLES:

24. In the decision of Dattatraya Sakharam Devli, relied upon

by the learned counsel for the appellant, One Mahadev and his

brother, Sambhaji, were divided in interest. Mahadev died more Page no. 17 of 32

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than twenty years ago, leaving a widow, Parvatibai, a son

Ramchandra, and daughters. After Mahadev's death,

Ramchandra was given in adoption to a different family at

Gwalior. The properties in the suit, which were initially assigned

to the share of Mahadev and which were vested in

Ramchandra alone after Mahadev's death, were mortgaged by

Parvatibai in 1909 to one Dattatraya long after Ramchandra's

adoption. Dattatraya filed the suit to enforce his mortgage, to

recover possession and to obtain an injunction. The suit was

filed against Sambhaji's sons, and Parvatibai represented by

her daughters. Sambhaji's sons contested the suit claim,

essentially on the ground that the property being vested in

Ramchandra at the time of his adoption remained vested in him

even after he was given in adoption and that Parvatibai had no

right to mortgage the property, as Ramchandra was alive.

25. This court, in the decision of Dattatraya Sakharam Devli,

held that the fundamental idea underlying an adoption is that

the son given in adoption gives up the natural family and

everything connected with the family and takes his place in the

adoptive family, as if he had been born there, as far as Page no. 18 of 32

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possible. It is held that the son given in adoption gives up the

rights, which may be vested in him by birth, to the property of

his natural father if the adoption takes place in his father's

lifetime, and to that extent, the rights vested in him are divested

after adoption. This Court, thus, held as under;

"If the divesting of a vested interest so far is to be

allowed, I do not see any difficulty in holding that even if

the estate of the natural father be wholly vested in the

boy before adoption, he is divested of it when he is given

in adoption. It seems to me that there is nothing

repugnant to Hindu Law in thus insisting upon what is a

necessary incident of an adoption and in preventing an

adopted son from taking away with him to his adoptive

family the property, which may have devolved upon him

in the family of his birth. The divesting of vested estates is

by no means an uncommon incident of adoptions under

certain circumstances, and seems to me to be quite

consistent with the Hindu Law."

Page no. 19 of 32

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26. This Court dealt with one of the arguments, that if the

adopted son can take his self-acquired property with him and is

under no obligation to leave it in the family of his birth, there is

no reason why he should be treated differently with reference

to the property, which has vested in him exclusively on the

death of his father before the adoption. While dealing with this

argument, it was held as under:

"But this argument ignores the difference between his

self-acquired property and the estate which has become

vested in him exclusively on his father's death. In one

case the property is his own, and in the other it is the

property of his natural father. The text of Manu refers to

the estate of the natural father, and the mere fact that he

is dead at the time of adoption and that it has become the

property of his son at the time does not change the

character of the property for the purposes of the rule laid

down by the text, and it cannot be treated as his self-

acquired property."

Page no. 20 of 32

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27. Learned counsel for the appellant also relied upon the

decision of this Court in the case of Bai Kesarba, which

followed the decision of Dattatraya Devli. In the facts of the

said case, the plaintiff therein had alleged that on the adoption

of defendant no. 1 therein, his right to the estate of biological

family was extinguished, and in accordance with the custom of

lineal primogeniture in the family, the plaintiff became entitled

to succeed to the estate. It was observed that the decision of

Dattatraya Devli was approved subsequently by the Privy

Council in Raghuraj Chandra v. Subhadra Kunwar4, so far as it

proceeds on the fundamental idea that the son given in

adoption gives up the natural family and everything connected

with the family, including the right to property, which had

become vested in him before the date of his adoption.

28. Thus, the legal principles regarding the effect of adoption

can be summarised to mean that the distinction between self-

acquired property and the estate, which had become vested

exclusively on father's death, is to be seen to ascertain the

effect of adoption. In one case, the property is self-owned, and

4 (1928) L. R. 55 I.A. 139 at p.148 Page no. 21 of 32

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in the other, it is the property of the natural father. The mere

fact that the father is dead at the time of adoption and that it

has become the property of his son at the time does not

change the character of the property, and it cannot be treated

as his self-acquired property. Thus, adoption will divest the

adopted son of right devolved through his natural father.

However, in the case of self-owned property, adoption will not

divest the adopted son from the property acquired before his

adoption.

29. In view of the aforesaid legal principles regarding the

adoption, the nature of the property must be ascertained to

decide whether to divest a property held by a person before

adoption. Learned counsel for respondent no.1 relied upon the

decision of the Hon'ble Apex Court in the case of Omprakash

Sharma. To correctly understand the legal principles, it is

necessary to refer to the facts briefly. The facts of the said case

are as follows:

(a) One Jaganath purchased the property in question in the

name of his wife Moni. The plaintiff therein claimed that

Page no. 22 of 32

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her husband Sitaram was adopted in 1942 by Jagannath

and Moni. She was married to Sitaram in 1945, and

Sitaram died in 1946. Trial Court held that the property

was of Jagannath and accepted the adoption theory.

Thus, the trial court held that Moni and the plaintiff had

half share each; on death of Moni, her half share

devolved upon her natural daughter Gomati, and on

death of Gomati, her share devolved upon her adopted

son, the defendant. Therefore, it was held that the plaintiff

and defendant both had half share each.

(b)In an appeal before the High Court, it was held that the

property was not a benami transaction in the name of

Moni and that she was the absolute owner pursuant to

the sale deed in her name. The theory of adoption of

Sitaram was disbelieved. Sitaram was nephew of

Jagannath and Moni; therefore, it was held that he would

not be entitled to any share and the property would

devolve upon the natural daughter of Jagannath and

Moni, i.e. Gomati. Since the adoption of Sitaram was not

accepted, the High Court did not go into the issue of Page no. 23 of 32

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adoption of the defendant by Gomati and a gift deed

executed by her in favour of the defendant. Therefore,

the High Court allowed the defendant's appeal and

dismissed the cross-objections of the plaintiff. The

Hon'ble Apex Court dismissed the plaintiff's appeal and

confirmed the decision of the High Court.

30. In view of the aforesaid facts, the Hon'ble Apex Court

discussed the practice in India of purchasing property by a

husband in the name of his wife, which was a specie of benami

purchase that had been prevalent in India since ancient times.

The Hon'ble Apex Court observed that the purchase of

immovable property by a husband in the name of the wife to

provide the wife with a secured life in the event of the death of

the husband was an acknowledged and accepted feature of

Indian life which even finds recognition in the Explanation

clause to Section 3 of the Benami Transactions (Prohibition)

Act, 1988. It was thus, held that such prevalent practice is a

fundamental feature that must be kept in mind while

determining the nature of a sale/purchase transaction of

immovable property by a husband in the name of his wife, Page no. 24 of 32

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along with other facts and circumstances which has to be taken

into account in determining what essentially is a question of

fact, namely, whether the property has been purchased

benami.

31. The Hon'ble Apex Court also referred to the well-

established principles of law for determining the true nature of

the transaction. The legal principles relevant to the facts of the

present case are found in paragraphs 11 and 12 of the decision

of Om Prakash Sharma, which reads as follows:

"11. The "other" relevant circumstances that should go

into the process of determination of the nature of

transaction can be found in Jaydayal Poddar v. Bibi

Hazra [Jaydayal Poddar v. Bibi Hazra, (1974) 1 SCC 3 :

AIR 1974 SC 171] which may be usefully extracted

below: (SCC pp. 6-7, paras 6-7)

"6. It is well settled that the burden of proving that a

particular sale is benami and the apparent purchaser is

not the real owner, always rests on the person asserting

it to be so. This burden has to be strictly discharged by

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adducing legal evidence of a definite character which

would either directly prove the fact of benami or establish

circumstances unerringly and reasonably raising an

inference of that fact. The essence of a benami is the

intention of the party or parties concerned; and not

unoften, such intention is shrouded in a thick veil which

cannot be easily pierced through. But such difficulties do

not relieve the person asserting the transaction to be

benami of any part of the serious onus that rests on him;

nor justify the acceptance of mere conjectures or

surmises, as a substitute for proof. The reason is that a

deed is a solemn document prepared and executed after

considerable deliberation, and the person expressly

shown as the purchaser or transferee in the deed, starts

with the initial presumption in his favour that the apparent

state of affairs is the real state of affairs. Though the

question, whether a particular sale is benami or not, is

largely one of fact, and for determining this question, no

absolute formulae or acid test, uniformly applicable in all

situations, can be laid down; yet in weighing the

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probabilities and for gathering the relevant indicia, the

courts are usually guided by these circumstances : (1) the

source from which the purchase money came; ( 2) the

nature and possession of the property, after the

purchase; (3) motive, if any, for giving the transaction a

benami colour; (4) the position of the parties and the

relationship, if any, between the claimant and the alleged

benamidar; (5) the custody of the title deeds after the

sale; and (6) the conduct of the parties concerned in

dealing with the property after the sale.

7. The above indicia are not exhaustive and their efficacy

varies according to the facts of each case . Nevertheless

No. 1 viz. the source, whence the purchase money came,

is by far the most important test for determining whether

the sale standing in the name of one person, is in reality

for the benefit of another."

(emphasis supplied)

12. The reiteration of the aforesaid principles has been

made in Binapani Paul v. Pratima Ghosh [Binapani

Paul v. Pratima Ghosh, (2007) 6 SCC 100] . The relevant Page no. 27 of 32

901-SA-637-2011.doc

part of the views expressed may be profitably recollected

at this stage: (SCC p. 113, paras 26-27)

"26. The learned counsel for both the parties have relied

on a decision of this Court in Bhim Singh v. Kan

Singh [Bhim Singh v. Kan Singh, (1980) 3 SCC 72]

wherein it has been held that the true character of a

transaction is governed by the intention of the person

who contributed the purchase money and the question as

to what his intention was, has to be decided by:

(a) surrounding circumstances,

(b) relationship of the parties,

(c) motives governing their action in bringing about the

transaction, and

(d) their subsequent conduct.

27. All the four factors stated may have to be considered

cumulatively. The relationship between the parties was

husband and wife. Primary motive of the transaction was

security for the wife and seven minor daughters as they

were not protected by the law as then prevailing. The

legal position obtaining at the relevant time may be Page no. 28 of 32

901-SA-637-2011.doc

considered to be a relevant factor for proving peculiar

circumstances existing and the conduct of Dr Ghosh

which is demonstrated by his having signed the

registered power of attorney."

emphasis applied

32. Thus, the legal principles can be summarised as under:

(a) The distinction between self-acquired property and the

estate, which had become vested exclusively on father's

death, is to be seen to ascertain the effect of adoption.

(b) In one case, the property is self-owned, and in the other,

it is the property of the natural father. The mere fact that

the father is dead at the time of adoption and that it has

become the property of his son at that time does not

change the character of the property, and it cannot be

treated as his self-acquired property.

(c) Thus, adoption will divest the adopted son of right

devolved through his natural father. However, in the case

of self-owned property, adoption will not divest the

Page no. 29 of 32

901-SA-637-2011.doc

adopted son from the property acquired before his

adoption.

(d) The burden of proving that a particular sale is benami

and the apparent purchaser is not the real owner, always

rests on the person asserting it to be so and this burden

has to be strictly discharged.

(e)The true character of a transaction would be governed by

the intention of the person who contributed the purchase

money and the question as to what his intention was.

(f) Adoption would mean entry into the adoptive family as a

person born in the adoptive family and severance from

the biological family.

(g) The self-owned property cannot be divested in view of

adoption.

CONCLUSIONS:

33. Applying the above principles, the findings recorded in

the present case by the first appellate court cannot be faulted.

Page no. 30 of 32

901-SA-637-2011.doc

The first appellate court held that the right in the suit property

accrued in favour of respondent no. 1 before the adoption, and

such right cannot be divested. The first appellate court rightly

relied upon the application filed by Tatya after the adoption to

enter the name of defendant no. 1 in the revenue record. Filing

such an application by Tatya reveals his intention to purchase

the property exclusively for respondent no.1. Thus, Tatya's

intention, who paid the consideration amount, is seen from his

subsequent conduct to enter respondent no. 1's name in the

revenue record after his adoption, which reveals that the true

character of the transaction was to hold the property in the

name of respondent no. 1 as his absolute ownership. Thus,

mutation entry no. 2406 in the name of defendant no.1,

represented through his adoptive mother, is correctly

interpreted to mean that the suit property was an independent

property of defendant no.1. There is no reason to interfere with

the findings recorded by the first appellate court to set aside

the trial court's judgment and decree.

34. In the present case, the adoption is dated 12 th September

1940; hence, reference to Section 12 of The Hindu Adoptions Page no. 31 of 32

901-SA-637-2011.doc

and Maintenance Act 1956 ("Adoption Act of 1956") by both the

Courts was unnecessary. Therefore, the law prevailing prior to

1956 is discussed in the above paragraphs. The legal

principles summarised in the above paragraphs are regarding

adoptions prior to the Adoption Act of 1956.

35. Thus, for the reasons recorded above, the adoption deed

would have no legal effect on defendant no.1's right, title and

interest created in his favour in view of the registered sale

deed. Thus, the first appellate court was right in interfering with

the findings recorded by the trial court and correctly set aside

the trial court's judgment and decree and dismissed the suit.

Hence, both the questions of law are accordingly answered in

favour of defendant no.1.

36. Hence, for the reasons stated above, the second appeal

is dismissed. The impugned judgment and decree dated 15 th

October 2011 passed by the learned District Judge - 1, Vaduj

in Regular Civil Appeal No. 30 of 2010, dismissing the suit, is

confirmed.

           Digitally
           signed by
           RAJESHWARI
RAJESHWARI RAMESH
RAMESH     PILLAI
PILLAI     Date:                                                                (GAURI GODSE, J.)
           2025.02.14
           06:36:11
           +0200                                       Page no. 32 of 32




 

 
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