Ravinder Kaur Grewal & Ors. v. Manjit Kaur & Ors.
A. M. KHANWILKAR, J.
1. This appeal emanates from the judgment and decree dated
27.11.2007 passed by the High Court of Punjab and H aryana at
Chandigarh 1 in R.S.A. No. 946/2004, whereby the second appeal filed
by the respondent Nos. 1 to 3 (heirs and legal representatives of Mohan
Singh - original defendant No. 1) came to be allowed by answering the
substantial question of law formulated as under: -
“Whether the document Ex.P-6 required registration as by w ay
of said document the interest in immovable property worth more
than Rs.100/- was transferred in favour of the plaintiff?”
2. Briefly stated, the suit was filed by the predecessor of the
appellants herein - Harbans Singh, son of Niranjan Singh, res ident of
Sangrur, Punjab against his real brothers Mohan Singh (original defendant
No. 1) and Sohan Singh (original defendant No. 2) for a declaration that
he was the exclusive owner in respect of land admeasuring 11 kanals 17
marlas comprising khasra Nos. 935/1 and 935/2 situated at Mohalla Road
and other properties referred to in the Schedule. He asserte d that there
was a family settlement with the intervention of respec table persons
and family members, whereunder his ownership and possession in respect
of the suit land including the constructions thereon (16 shops, a samadhi
of his wife – Gurcharan Kaur and one service station with boundary
wall) was accepted and acknowledged. Structures were erected by him
in his capacity as owner of the suit land. It is stated that in the year 1970
after the purchase of suit land, some dispute arose between the brothers
regarding the suit land and in a family settlement arrived at then, it was
clearly understood that the plaintiff – Harbans Singh would be the owner
of the suit property including constructions thereon and that the name of
Mohan Singh (original defendant No. 1) and Sohan Singh (origina l
defendant No. 2) respectively would continue to exist in the r evenue
record as owners to the extent of half share and the plaintiff would have
no objection in that regard due to close relationship between the parties.
However, the defendants raised dispute claiming half share in respect of
which Harbans Singh (plaintiff) was accepted and acknowledged to be
the exclusive owner and as a result of which it was decided to pre pare
a memorandum of family settlement incorporating the terms a lready
settled between the parties, as referred to above. The stated memorandum
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
1 For short, “the High Court”
was executed by all parties on 10.3.1988. However, after execution of
the memorandum of family settlement dated 10.3.1988, the defendants
once again raised new issues to resile from the family arrangement. As
a result, Harbans Singh (plaintiff) decided to file suit for declaration on
9.5.1988, praying for a decree that he was the owner in possessi on of
the land admeasuring 11 kanals 17 marlas comprising of khasra Nos.
935/1 and 935/2 situated at Mohalla Road. An alternative plea was also
taken that since plaintiff was in possession of the whole suit property to
the knowledge of the defendants openly and adversely for more tha n
twelve years, he had acquired ownership rights by way of adverse
possession.
3. The suit was resisted by the defendants by filing written
statement. Harbans Singh (plaintiff) filed replications. On the ba sis of
rival pleadings, the Civil Judge (Junior Division), Sangrur in S uit No.
187/1988 B.T. No. 185 of 18-1-95 (18-1-95) framed following issues: -
“1. Whether the plaintiff is owner in possession of suit land? OPP
2. Whether there was any family settlement between the parti es
on 10.3.1988 and memo of family settlement was executed by
parties on that day? OPP
3. Whether the plaintiff constructed shops, a service station a nd
boundary wall around the disputed property? OPP
4. Whether the plaintiff has become owner of suit land by adverse
possession? OPP
5. Whether the property in dispute was purchased out by the
income of Joint Hindu Family coparcenary property a nd
construction on the suit land was also purchased by Joint Hindu
Family coparcenary property? OPD
6. Whether Sohan Singh, Mohan Singh and Harbans Sin gh
constitute a Joint Hindu Family? OPD
7. Whether the defendants are estopped from denying the
execution of memo of family settlement by their act and conduct?
OPP
8. Relief.”
During the pendency of the suit, Harbans Singh (plaintiff) expired
and, therefore, the appellants herein were brought on record being his
1145
legal heirs. The trial Court vide judgment and decree dated 19.1.2000,
partly decreed the suit in the following terms: -
“RELIEF
30. In view of my discussion on various issues above, the suit of
the plaintiff partly succeeds and partly fails. Therefore, his suit is
decreed partly to the extent that he is declared to be owner in
possession of khasra no. 935/1/1/2 (5-18) and to the extent of ½
share in khasra no. 935/1/1/1 (5-19) with construction there upon.
Keeping in view the relationship between the parties and the
circumstances of the case, no order as to cost. Decree shee t be
prepared accordingly. File be consigned to the record room.”
4. Aggrieved by this decision, the appellants/plaintiffs filed first
appeal before the District Judge, Sangrur being Civil Appeal No. 45 of
5-2-2000 B.T. No. 60 of 11-6-2001. The first appellate Court, after
reappreciating the pleadings and evidence on record, was ple ased to
allow the appeal and modify the judgment and decree passed by the trial
Court. The first appellate Court declared the original plaintiff as owner
of the suit land alongwith constructions including 16 shops, a se rvice
station and boundary wall with samadhi in the land. The operative order
passed by the first appellate Court, dated 29.11.2003, reads thus: -
“18. In the light of the above discussion, the appeal is allowed and
the judgment passed by the learned trial court is modified and the
suit of the plaintiff is decreed. The plaintiff is declared owner of
the land measuring 11 kanals 17 marlas comprised in rectangle
and killa no. 935/1/1/1 (5-19), 935/1/1/2 (5-18) situated in Mehlan
Road, Sangrur along with construction including 16 shops, a service
station and boundary wall with samadh in the land. In view of the
peculiar circumstances of the case the parties are le ft to bear
their own costs. Decree sheet be prepared and copy o f the
judgment be placed on the file of the learned trial court and the
same be returned immediately to the successor court of Smt .
Harreet Kaur PCS, the then Civil Judge (Junior Division), Sangrur.
This court file be consigned to the record room.”
5. The respondent Nos. 1 to 3 being legal representatives of
Mohan Singh (original defendant No. 1) preferred second appeal before
the High Court being R.S.A. No. 946/2004. The learned single Judge
answered the substantial question of law reproduced in paragra ph 1
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
[A. M. KHANWILKAR, J.]
above in favour of the said respondents. The High Court was pleased to
set aside the conclusion recorded by the first appellate Court and opined
that the document which, for the first time, creates a right in favour of
plaintiff in an immovable property in which he has no pre-existing right
would require registration, being the mandate of law. Accordingly, the
second appeal came to be allowed and the judgment and decree passed
by the lower appellate Court was set aside, thereby restoring the decree
passed by the trial Court, vide impugned judgment dated 27.11.2007.
6. The appellants have questioned the correctness of the vie w
taken by the High Court and in particular, reversing the conclus ion
reached by the first appellate Court. When the present appeal was taken
up for hearing, the Court referred the matter to a larger Bench of three-
Judges to answer the question as to whether the acquisition of title by
adverse possession can be taken by plaintiff under Artic le 65 of the
Limitation Act, 1963 and is there any bar under the Limitation Act to sue
on aforesaid basis in case of infringement of any rights of a plaintiff.
The appeal accordingly proceeded before the three-Judge Bench, which
in turn answered the said question vide judgment dated 7.8.2019 2 in
favour of the plaintiff. As a result, the matter has been placed before us
for consideration of the appeal on its own merits.
7. The appellants would contend that the High Court disposed of
the second appeal in a casual manner and more so, without dealing with
the finding of fact recorded by the first appellate Court in favour of the
plaintiff. It is urged that the first appellate Court, aft er noticing the
admitted factual position, proceeded to first examine the question whether
the document dated 10.3.1988 (Exhibit P-6) was executed by the parties
or not. That fact has been answered in favour of the plaintiff (appellants)
after analysing the evidence on record. It has been held that the stated
document was indisputably executed by the parties. The next question
considered by the first appellate Court was whether the stated document
required registration or not, which has been justly answered in favour of
the plaintiff (appellants) on the finding that it was merely a memorandum
of family settlement and not a document containing terms and recitals of
the family settlement made thereunder. For that, the first appellate Court
noted that the plaintiff had constructed 16 shops and a samadhi including
boundary wall on the suit land on his own, which fact was indisputable
and established from the evidence on record. Further, the plaintiff was
2 Reported as (2019) 8 SCC 729
1147
in possession of the suit land. Even this finding is supported b y the
evidence on record and is well-established. It is also est ablished from
record that as per the family settlement, the plot in Prem Basti belonging
to Harbans Singh (plaintiff) was given to Sohan Singh (original defendant
No. 2), which was in possession of Mohan Singh (original def endant
No. 1) and that another plot purchased by plaintiff in the name of his son
Vikramjit Singh was given to Mohan Singh (original defendant No. 1)
and his wife. Notably, the Defendant Witness No. 1 (DW-1) admi tted
that the said property was sold thereafter to one Surjit Kaur. In substance,
it is established that the parties had acted upon the fa mily settlement,
which was recorded in the form of document - Exhibit P-6 be ing a
memorandum of family settlement. In other words, the concerned parties
had acted upon the family arrangement as per the settle ment terms
decided in 1970 and reinforced by the document Exhi bit P-6
(memorandum of family settlement). Being a memorandum of famil y
settlement, it was not required to be registered and, in any case, the
parties having acted upon the terms of the said settlement to the prejudice
of the other party, it was not open to them to resile from the said
arrangement. Thus, they are estopped from disowning the arrangement
already reached, acted upon and so recorded in the memorandum of
family settlement. Thus understood, the plaintiff was acce pted and
acknowledged to be the owner of the suit property by all the family
members who were also party to the memorandum of family settlement
(Exhibit P-6). The appellants have placed reliance on the decision of this
Court in Kale & Ors. vs. Deputy Director of Consolidation & Ors. 3
They pray for restoration of the decree passed by the fir st appellate
Court and setting aside the impugned judgment.
8. On the other hand, the respondent Nos. 1 to 3 would contend
that the High Court has rightly considered the document Exhibit P-6 as
containing terms and recitals of family settlement and for which reason
it was essential to get the same registered. It is urged that there was no
pre-existing title in favour of the plaintiff in respect of the suit property,
as the same was purchased in the name of concerned defendant by way
of a registered sale deed. The parties were not in posses sion of Joint
Hindu Family property as such and therefore, the question of partition of
that property does not arise. The plea that there was no Join t Hindu
Family property was taken by the plaintiff in the replication filed before
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
[A. M. KHANWILKAR, J.]
3 (1976) 3 SCC 119
the trial Court. This plea was taken in the context of the assertion made
by the defendants in the written statement that the suit pro perty was
jointly owned by Mohan Singh (original defendant No. 1) and Sohan
Singh (original defendant No. 2). The contesting responde nts have
reiterated the stand that there was no family settlement in 1970, as stated
by the plaintiff and that the signature of the defendant No. 2 appearing
in document Exhibit P-6 is forged and fabricated. Further, the High Court
has justly non-suited the plaintiff and preferred to res tore the partial
decree passed by the trial Court on the conclusion that the do cument
Exhibit P-6 is inadmissible in evidence, as it has not been registered
despite the transfer of title in immovable property wo rth more than
Rs.100/-. In other words, the High Court answered the substantial question
of law against the plaintiff and as a result of which it rightly allowed the
second appeal filed by the defendants (respondent Nos. 1 to 3). The
view so taken by the High Court is unexceptionable.
9. We have heard Mr. Manoj Swarup, learned senior counsel for
the appellants and Mr. Parveen Kumar Aggarwal, learned counsel for
the respondents.
10. The core issue involved in this appeal is: whether the document
Exhibit P-6 was required to be registered as interest i n immovable
property worth more than Rs.100/- was transferred in favour of the
plaintiff?
11. It is not in dispute that the parties are closely related. Mohan
Singh (original defendant No. 1) and Sohan Singh (original defendant
No. 2) were real brothers of Harbans Singh (original plaintiff). Original
defendant No. 4 – Harjinder Kaur is the wife of Sohan Singh (original
defendant No. 2). The father of the plaintiff and defendant Nos. 1 and 2
died during minority of defendant Nos. 1 and 2. The defendants had
proved the copy of sale deed dated 16.4.1970 (Exhibit DW-3/A), whereby
Mohan Singh (original defendant No. 1) and Sohan Singh (origina l
defendant No. 2) purchased land admeasuring 5 kanals 19 m arlas
comprised in khasra No. 935/1. Harbans Singh (plaintiff) had appeared
on behalf of the purchaser at the time of execution of the sale deed.
Jamabandi for the year 1984-1985 of the property in dispute (Exhibit D-
1) reveals that khasra No. 935/1/1/1 (5-19) shows the name of Mohan
Singh (original defendant No. 1) and Sohan Singh (original defendant
No. 2) as owners, whereas the name of Harbans Singh (pla intiff) is
shown against khasra No. 935/1/1/2 (5-18) as owner. Mohan Singh
1149
(original defendant No. 1) had stated that the land standing in the name
of Harbans Singh (original plaintiff) was purchased by him from the
funds of joint family, but that fact has not been proved or established by
the contesting defendants. In that sense, it may appear from the revenue
record that the concerned parties were owners in respect o f separate
properties and not as joint owners. The fact remains that Harbans Singh
(original plaintiff), Mohan Singh (original defendant No. 1) and Sohan
Singh (original defendant No. 2) are closely related being real brothers.
Further, although the ownership of the suit property recorded in Jamabandi
is of concerned defendant, Harbans Singh (plaintiff) had constructed 16
shops, samadhi of his wife – Gurcharan Kaur and a boundary wa ll on
the property and was in possession thereof. Pertinently, the trial Court
had opined in paragraph 24 of its judgment that all the three brothers –
Harbans Singh (plaintiff), Mohan Singh (original defendant No. 1) and
Sohan Singh (original defendant No. 2), as noted in Exhibit P-6, owned
various properties, on which possession of Harbans Singh (plaintiff) being
the eldest brother is admitted. However, it was a permissive possession.
The first appellate Court has also opined in paragraph 16 of the judgment
that Harbans Singh (plaintiff) came in possession of the suit property
with the consent of the defendants. Notably, this finding of fact has not
been disturbed by the High Court. That apart, it is established from the
record that plot at Prem Basti belonged to Harbans Singh ( plaintiff),
which was given to Sohan Singh (original defendant No. 2) after taking
possession thereof from Mohan Singh (original defendant No. 1). Further,
plot purchased by Harbans Singh (plaintiff) in the name of his son was
given to Mohan Singh (original defendant No. 1) and his wife. It has
been admitted by DW-1 that later on the said plot was sold to one Surjit
Kaur. These facts clearly establish that there was not only un ivocal
family arrangement between the parties, but it was even acted upon by
them without any exception. This factual position has not been doubted
by the High Court.
12. As a matter of fact, the High Court has not bothered to even
advert to this aspect, whilst analysing the correctness of the finding of
fact recorded by the first appellate Court, which was th e final fact-
finding Court. From the impugned judgment, it is noticed that after giving
the basic facts, the High Court first extracted the relevant portion from
the trial Court’s judgment (paragraphs 17-21 thereof) and th ereafter
adverted to the finding and conclusion recorded by the trial Court on
other issues. The High Court then went on to extract paragra ph 16 of
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
[A. M. KHANWILKAR, J.]
the judgment of the first appellate Court in its entirety, running into about
8 pages and then formulated the substantial questio n of law. For
answering the said substantial question of law, the High Court first
adverted to the decision of this Court in Bhoop Singh vs. Ram Singh
Major & Ors.4 and reproduced paragraphs 12, 13, 16 and 18 thereof.
After that, the relevant portion of the decision of the same High Court in
the case of Hans Raj & Ors. vs. Mukhtiar Singh 5 has been extracted.
After doing so, the High Court then referred to the contention of the
appellants herein and extracted paragraphs 44 and 54 of the judgment in
Hari Shankar Singhania & Ors. vs. Gaur Hari Singhania & O rs.6
The High Court then adverted to a decision of the same High Court in
Jagdish & Ors. vs. Ram Karan & Ors. 7 and reproduced paragraph
14 thereof. Only after reproducing the aforesaid extracts inextenso ,
learned single Judge of the High Court adverted to the factual aspects
of the present case in the following words, to allow the appeal: -
“On a consideration of the matter, I find that a document which,
for the first time, creates a right in favour of plaintiff in an immovable
property in which he has no pre-existing right, then registration is
required. The presumption of pre-existing right can only be inferred
if a consent decree is passed where such claim is admitted by the
other party, but a document which is not disputed by the party and
there is no admission regarding the acceptance of a right and suit
is based on such a document under which the right is transferred
to the plaintiff in a property in which he has no pre-existing right,
then it would not require registration as is the ratio of the judgment
of the Hon’ble Supreme Court in the case of Som Dev and others
(supra). In view of this proposition of law if the matter is considered,
the question of law, as framed, has to be answered in favour of
the appellants.
In the present case, it may be noticed that the propert y in
dispute was purchased by way of two sale deeds and the ownership
of the parties was duly reflected in the revenue record. The plaintiff
claimed right to the property under the deed of family settlement
Exhibit P-6. Thus he claimed that the defendants had relinquished
4 (1995) 5 SCC 709
5 (1996) 3 RCR (Civil) 740 (paragraphs 7 to 9)
6 (2006) 4 SCC 658
7 PLR (2003) 133 P&H 182
1151
their right in the immovable property in his favour under the
memorandum of family settlement which was alleged to have
been executed much earlier. In any case, it has to be held that the
document transferring title in an immovable property worth more
than Rs.100/- rupees, even if it was by way of relinquishment, the
same required registration. Thus, the learned trial Court was right
in holding that no title passed on to the plaintiff under Exhibit P-6
i.e. family settlement entered into between the parties. This view
of mine finds support from the judgment of the Hon’ble Supreme
Court in the case of Hari Chand (dead) through LRs vs. Dharampal
Singh Baba, 2007 (4) Herald (SC) 3028, wherein the Hon’ble
Supreme Court has been pleased to lay down that the fami ly
settlement could only be if one has lawful right over the property
and then alone family settlement could be executed. When there
is no lawful rights of the parties over the property, there was no
occasion to file the suit on the basis of family settlement.
In view of what has been stated and discussed above, this
appeal is allowed and the judgment and decree passed by the
learned lower Appellate Court is set aside and that of the learned
trial Court is restored, but with no order as to costs.”
13. As against this, the first appellate Court thoroughly examined
the pleadings and the evidence, oral as well as documentary, placed on
record by the concerned parties. In the first place, it examined the question
whether the document Exhibit P-6 was executed by the parties o r not.
After adverting to the relevant evidence, the first appellate Court opined
that the trial Court was right in concluding that Exhibit P-6 was executed
by the parties referred to therein. That being concurrent finding of fact,
needs no further scrutiny. The High Court has not reversed this finding
of fact, as is noticed from the extracts of its judgment reproduced above.
The first appellate Court then went on to examine whether the document
required registration. The High Court has reproduced paragra ph 16 of
the judgment of the first appellate Court in its entirety. What is relevant
to notice is that the first appellate Court adverted to the pleadings and
oral and documentary evidence produced by the respective parties and
found that the plaintiff had proved the compromise (Exhibit CX) dated
15.5.1992 between the plaintiff and defendant Nos. 2 and 3, namely,
Sohan Singh and Harjinder Kaur. Harjinder Kaur had stepped into witness
box and admitted the said fact. She also admitted the fact of execution
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
[A. M. KHANWILKAR, J.]
of a family settlement. Thus, the dispute was between the successors of
Harbans Singh (plaintiff) and successors of Mohan Singh (o riginal
defendant No. 1). The first appellate Court thus accepte d the stand of
the plaintiff that in the year 1970, after purchase of land, dispute arose
between the parties regarding the suit land and in that family settlement,
plaintiff was held to be owner of the suit property including its
constructions. The first appellate Court in that context observed thus: -
“16. … The specific case of the plaintiff that he constructed with
his personal money 16 shops on the suit land, one service station
with boundary wall and also samadh of Smt. Gurcharan Kaur. It
is admitted that samadh of Gurcharan Kaur is in the suit property.
If the plaintiff was not acknowledged the owner of the suit property
then there was no question of construction of samad h of
Gurcharan Kaur his wife by the plaintiff on the suit property. So
the version of the defendant that no dispute arose in t he year
1970 and no family settlement took place can not be accepted…”
The first appellate Court then analysed the evidence of defendant
witnesses and held that the same were not reliable or trust worthy as
they did not know any fact regarding the suit property. The first appellate
Court then adverted to another crucial fact and noted that Mohan Singh
(original defendant No. 1) and Sohan Singh (original defendant No. 2)
were residing in house situated at Prem Basti prior to 1988, which
belonged to Harbans Singh (plaintiff). As noted earlier, this property as
per the family arrangement was given to Sohan Singh and has been so
recorded in the memorandum of family settlement (Exhibit P- 6). The
first appellate Court found that the defendants had failed to prove that
they were in possession of the suit property or remained in possession
thereof. On the other hand, the evidence on record clearly es tablished
that the plaintiff was in possession of the suit property. The first appellate
Court then interpreted document Exhibit P-6 and found that it was not
with regard to khasra No. 935 (11-17), but it referred to other properties.
After analysing the relevant evidence, the first appellate Court held that
Exhibit P-6 cannot be construed as a document containing terms a nd
recitals of a family arrangement, but only a memorandum of fa mily
arrangement. It went on to observe as follows: -
16. … Document Ex.P-6 is not with regard to khasra no. 395
(11-17) but other property is also included in the said document.
A plot situated in Prem Basti which was in the name of Harbans
1153
Singh and Gurcharan Kaur was already got vacated from Mohan
Singh and was given to Sohan Singh and Harjinder Singh. A plot
measuring 17 marlas which was purchased by Vikaramjit Singh
was given to Manjit Kaur and Mohan Singh and Manjit Kaur DW-
1 has admitted that she had already sold that plot to Surjit Kaur.
So it can be concluded that said document was acted upon.
Although few sentences of the said documents are in the present
tense but the court is to see from the material on record whether
the said document created right in the immovable property or rights
were already created but the document was written by way of
memorandum. The said document does not pertain to khasra no.
935/1/1/1 (5-19) but entire khasra no. 935/1 (11-17). Had the said
document created right in khasra no. 935/1/1/1 (5-19) then there
was no question of throwing khasra no. 935/1/1/2 in common pool
and other property of the parties. There is specific recital that on
the basis of sale deeds Harbans Singh was owner in possession
of the suit property and was coming in possession of the same.
Harbans Singh has constructed 16 shops and service station there.
In other words, it proves that Harbans Singh was bein g
considered as owner in possession of the suit prope rty.
Prior to execution of the said document on that day the y
compromised not to raise any dispute regarding his
ownership. So this document was a writing with regard to
fact which was already being considered and admitted b y
the parties. So it cannot be said that this document, c opy of
which is Ex.P-6 created right for the first time in the
immovable property .…..”
(emphasis supplied)
And again, as follows: -
“16. ….. Since the parties were closely related to each
other and document was executed with regard to the fact -
which they were already admitting so I am of the view that
document dated 10.3.1988 copy of which is Ex.P-6 did not
require registration . In case Hans Raj cited supra the matter
was got compromised and document itself created right in t he
property. In case Hari Singh vs. Shish Ram & others cited supra
it was held that document between the parties was partiti oned
and consideration was passed from one party to other. In Shishpal
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
[A. M. KHANWILKAR, J.]
vs. Vikram cited supra it was held that during life time of Gyani
Ram the plaintiff filed suit so there could not be any family
settlement. In case Smt. Karamjit Kaur and another versus Smt.
Sukhjinder Kaur and others cited supra vide compromise the
plaintiff and defendant no. 1 to 4 had agreed to take 30 bighas of
land out of 90 bighas left by Mohinder Singh so it was held that
said compromise has created right in favour of defendants no. 5
and 6 to the property of more than Rs.100/- So require registration.
All the above said authorities cited by counsel for defendants are
distinguishable on facts and ratio of said authorities can not be
applied to the facts of the present case. Since plaintiff is pr oved
to be in existence in possession of the suit property. So construction
of shops land service station on the said property was done by the
plaintiff himself and not from funds of joint family. This fact is
further corroborated by writing dated 10.3.1988 copy of which is
Ex. P-6. Since said document did not require registration so plaintiff
is proved to be owner of the suit property. The defendants estopped
from denying the execution of the family settlement. Defendants
have failed to prove that Harbans Singh, Mohan Singh and Sohan
Singh constituted Joint Hindu Family Property and construction
of the suit property was raised from the Joint Hindu Family Funds.
Thus, finding recorded by the learned Trial Court on issues No. 3,
5 and 7 are set aside and it is held that the plaintiff construc ted
shops and service station and boundary wall on the suit property
with his own funds. The defendant has failed to prove that property
in dispute was purchased by the income of the Joint Hi ndu
coparcenary property and Sohan Singh, Mohan Singh and Harbans
Singh constituted Joint family. So these issues are decided in favour
of the plaintiff. Parties executed document Ex.P-6 dated
10.3.1988 by way of memorandum of family settlement and
it did not require registration. The defendants are estoppe d
from denying the execution of the said document and
plaintiff is proved to be owner in possession of th e suit
land . Issues No. 1 and 2 and 7 are also decided in favour of the
plaintiff. Since the plaintiff came in possession of the suit property
with the consent of the defendants and his possession never become
adverse to the interest of the defendants so finding of the learned
trial Court on issue no. 4 is affirmed.”
(emphasis supplied)
1155
14. As noticed from the extracted portion of the judgment of the
High Court in paragraph 12 above, it is amply clear that the High Court
has not dealt with the factual aspects adverted to by the firs t appellate
Court to conclude that the document Exhibit P-6 was only a memorandum
of family settlement and not a document containing the terms and recitals
of a family settlement. Being the former, no registration was necessary.
For which reason, relief claimed by the plaintiff founded on the family
settlement between the real brothers arrived at in 1970, act ed upon
without any exception and documented on 10.3.1988, ought to follow.
15. The first appellate Court has also justly opined that the parties
had acted upon the stated family settlement and if we may say so, to the
prejudice of the other party. In that, the property in the name of plaintiff
at Prem Basti was given to Sohan Singh (original defendant No. 2),
which was otherwise in possession of Mohan Singh (original defendant
No. 1). Further, the plot purchased by the plaintiff in the name of his son
was given to Mohan Singh (original defendant No. 1) and his wife, but
that plot was admittedly sold by them to one Surjit Kaur. Being a case of
a family settlement between the real brothers and having b een acted
upon by them, it was not open to resile from the same. T hey were
estopped from contending to the contrary. This crucial aspect has been
glossed over by the High Court and if we may say so, the second appeal
has been disposed of in a most casual manner. Inasmuch as, the impugned
judgment of the High Court merely contains extraction of the judgment
of the trial Court and first appellate Court and of the relied upon judgments
(precedents). The only consideration is found in tw o concluding
paragraphs, which are extracted above (paragraph 12). Even on liberal
reading of the same, it is not possible to conclude that the High Court in
exercise of its appellate jurisdiction (second appeal) had undertaken proper
analysis and scrutiny of the judgment of the first appellate Court in right
perspective, much less keeping in mind the limited scope of jurisdiction
to entertain second appeal under Section 100 of the Co de of Civil
Procedure, 1908. The impugned judgment is bordering on a cas ual
approach by the High Court in overturning the well-considered decision
of the first appellate Court. Although the impugned judgment runs into
36 pages, the manner in which it proceeds leaves us to observe that it is
cryptic. We say no more. On this count alone, impugned judgment does
not stand the test of judicial scrutiny.
16. Be that as it may, the High Court has clearly misapplied the
dictum in the relied upon decisions. The settled legal posi tion is that
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
[A. M. KHANWILKAR, J.]
when by virtue of a family settlement or arrangement, me mbers of a
family descending from a common ancestor or a near relation se ek to
sink their differences and disputes, settle and resolve their conflicting
claims or disputed titles once and for all in order to buy peace of mind
and bring about complete harmony and goodwill in the family, suc h
arrangement ought to be governed by a special equity peculiar to them
and would be enforced if honestly made. The object of such arrangement
is to protect the family from long drawn litigation or perp etual strives
which mar the unity and solidarity of the family and create hatr ed and
bad blood between the various members of the family, as observed in
Kale (supra). In the said reported decision, a three-Judge Bench of this
Court had observed thus: -
“9. ….. A family arrangement by which the property is
equitably divided between the various contenders so as to achieve
an equal distribution of wealth instead of concentrating the same
in the hands of a few is undoubtedly a milestone in the
administration of social justice. That is why the term “family” has
to be understood in a wider sense so as to include within its fold
not only close relations or legal heirs but even those persons who
may have some sort of antecedent title, a semblance of a claim or
even if they have a spes successionis so that future disputes are
sealed for ever and the family instead of fighting claims inter se
and wasting time, money and energy on such fruitless or futile
litigation is able to devote its attention to more constructive work
in the larger interest of the country . The courts have, therefore,
leaned in favour of upholding a family arrangement instead
of disturbing the same on technical or trivial grou nds.
Where the courts find that the family arrangement suffe rs
from a legal lacuna or a formal defect the rule of estoppel is
pressed into service and is applied to shut out plea of t he
person who being a party to family arrangement seeks to
unsettle a settled dispute and claims to revoke the f amily
arrangement under which he has himself enjoyed some
material benefits . …..”
(emphasis supplied)
In paragraph 10 of the said decision, the Court has delineated the
contours of essentials of a family settlement as follows: -
1157
“10. In other words to put the binding effect and the essentials of
a family settlement in a concretised form, the matter may be
reduced into the form of the following propositions:
“( 1) The family settlement must be a bona fide one so as to
resolve family disputes and rival claims by a fair and equitable
division or allotment of properties between the various members
of the family;
(2) The said settlement must be voluntary and should not be
induced by fraud, coercion or undue influence;
(3) The family arrangement may be even oral in which
case no registration is necessary ;
(4) It is well-settled that registration would be necessary only
if the terms of the family arrangement are reduced into writing.
Here also, a distinction should be made between a
document containing the terms and recitals of a family
arrangement made under the document and a mere
memorandum prepared after the family arrangement had
already been made either for the purpose of the record
or for information of the court for making necessary
mutation . In such a case the memorandum itself does not
create or extinguish any rights in immovable properties and
therefore does not fall within the mischief of Section 17(2) of
the Registration Act and is, therefore, not compuls orily
registrable;
(5) The members who may be parties to the family arrangement
must have some antecedent title, claim or interest eve n a
possible claim in the property which is acknowledged by the
parties to the settlement. Even if one of the parties to the
settlement has no title but under the arrangement t he
other party relinquishes all its claims or titles in favo ur
of such a person and acknowledges him to be the sole
owner, then the antecedent title must be assumed and
the family arrangement will be upheld and the courts will
find no difficulty in giving assent to the same ;
(6) Even if bona fide disputes, present or possible, which may
not involve legal claims are settled by a bona fide family
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
[A. M. KHANWILKAR, J.]
arrangement which is fair and equitable the family arrangement
is final and binding on the parties to the settlement.”
(emphasis supplied)
Again, in paragraph 24, this Court restated that a family
arrangement being binding on the parties, clearly operates as an estoppel,
so as to preclude any of the parties who have taken advantage under the
agreement from revoking or challenging the same. In paragraph 35, the
Court noted as follows: -
“35. … We have already pointed out that this Court has widened
the concept of an antecedent title by holding that an antecedent
title would be assumed in a person who may not have any title but
who has been allotted a particular property by other party to the
family arrangement by relinquishing his claim in favour of such a
donee. In such a case the party in whose favour the relinquishment
is made would be assumed to have an antecedent title. …..”
And again, in paragraph 36, the Court noted as follows: -
“36. … Yet having regard to the near relationship which the brother
and the son-in-law bore to the widow the Privy Council held that
the family settlement by which the properties were divided between
these three parties was a valid one. In the instant case also putting
the case of Respondents Nos. 4 and 5 at the highest, the position
is that Lachman died leaving a grandson and two daughter s.
Assuming that the grandson had no legal title, so long as the
daughters were there, still as the settlement was made to end the
disputes and to benefit all the near relations of the family, it would
be sustained as a valid and binding family settlement. …”
While rejecting the argument regarding inapplicability of principle
of estoppel, the Court observed as follows: -
“38. … Assuming, however, that the said document was
compulsorily registrable the courts have generally held that
a family arrangement being binding on the parties to it would
operate as an estoppel by preventing the parties af ter
having taken advantage under the arrangement to resile
from the same or try to revoke it . …..”
(emphasis supplied)
1159
And in paragraph 42, the Court observed as follows: -
42. ..… In these circumstances there can be no doubt that
even if the family settlement was not registered it w ould
operate as a complete estoppel against Respondents Nos .
4 and 5 . Respondent No. 1 as also the High Court, therefore,
committed substantial error of law in not giving effect to the
doctrine of estoppel as spelt out by this Court in so many cases.
…”
(emphasis supplied)
The view so taken is backed by the consistent exposition in previous
decisions 8 referred to and duly analysed in the reported judgment. The
question formulated by the High Court, in our opinion, stands answered
in favour of the appellants (plaintiff), in light of exposition of this Court in
Kale (supra). A priori, we have no hesitation in affirming the conclusion
reached by the first appellate Court that the document Exhibit P-6 was
nothing but a memorandum of a family settlement. The established facts
and circumstances clearly establish that a family settlement was arrived
at in 1970 and also acted upon by the concerned parties. That finding of
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
[A. M. KHANWILKAR, J.]
8 Lala Khunni Lal vs. Kunwar Gobind Krishna Narain, ILR 33 All 356
Mt. Hiran Bibi vs. Mst. Sohan Bibi, AIR 1914 PC 4 4
Sahu Madho Das vs. Pandit Mukand Ram, AIR 1955 SC 481
Ram Charan Das vs. Girjanandini Devi, AIR 1966 SC 323
Tek Bahadur Bhujil vs. Debi Singh Bhujil, AIR 1966 SC 292
Maturi Pullaiah vs. Maturi Narasimham, AIR 1966 S C 1836
Krishna Biharilal vs. Gulabchand, (1971) 1 SCC 837
S. Shanmugam Pillai vs. K. Shanmugam Pillai, (1973) 2 SCC 312
Ramgopal vs. Tulshi Ram, AIR 1928 All 641
Sitala Baksh Singh vs. Jang Bahadur Singh, AIR 1933 Oudh 347
Mst. Kalawati vs. Sri Krishna Prasad, AIR 1944 Ou dh 49
Bakhtawar vs. Sunder Lal, AIR 1926 All 173
Awadh Narain Singh vs. Narain Mishra, AIR 1962 Pat 400
Ramgouda Annagouda vs. Bhausaheb, AIR 1927 PC 227
Brahmanath Singh vs. Chandrakali Kuer, AIR 1961 Pat 79
Mst. Bibi Aziman vs. Mst. Saleha, AIR 1963 Pat 62
Kanhai Lal vs. Brij Lal, AIR 1918 PC 70
Dhiyan Singh vs. Jugal Kishore, AIR 1952 SC 145
T.V.R. Subbu Chetty’s Family Charities vs. M. Gaghava Mudaliar, AIR 1961 SC 797
Rachbha vs. Mt. Mendha, AIR 1947 All 177
Chief Controlling Revenue Authority vs. Smt. Satyawati Sood, AIR 1972 Delhi 171
(FB)
Shyam Sunder vs. Siya Ram, AIR 1973 All 382
fact recorded by the first appellate Court being unexceptionable, it must
follow that the document Exhibit P-6 was merely a memorandum of a
family settlement so arrived at. Resultantly, it was not required to be
registered and in any case, keeping in mind the settled legal position, the
contesting defendants were estopped from resiling from the stated
arrangement in the subject memorandum, which had recor ded the
settlement terms arrived at in the past and even acted upon relating to all
the existing or future disputes qua the subject property amongst the
(signatories) family members despite absence of antecedent title to the
concerned property.
17. As regards the decision in Bhoop Singh (supra) and Som
Dev & Ors. vs. Rati Ram & Anr.9, the same dealt with the question of
necessity to register any decree or order of a Court governed by clause
(vi) of Section 17(2) of the Registration Act, 1908 10 . In the present case,
however, clause (v) of sub-Section 2 of Section 17 of the 1908 Act is
attracted. Section 17 as applicable when the cause of action arose (prior
to amendment of 2001) reads thus: -
“Part III
OF REGISTRABLE DOCUMENTS
17. Documents of which registration is compulsory.-
(1) xxx xxx xxx
(2) Nothing in clauses (b) and (c) of sub-section (1) appli es to
–
(i) xxx xxx xxx
(ii) xxx xxx xxx
(iii)xxx xxx xxx
(iv)xxx xxx xxx
(v) any document not itself creating, declaring, assigning, limiting
or extinguishing any right, title or interest of the value of
one hundred rupees and upwards to or in immovable
property, but merely creating a right to obtain another
9 (2006) 10 SCC 788
10 For short, “the 1908 Act”
1161
document which will, when executed, create, declare, assign,
limit or extinguish any such right, title or interest; or
…..”
18. In our considered view, reliance placed by the High Court on
the decisions of this Court will be of no avail to alter or impact the
conclusion recorded by the first appellate Court. As aforementioned, in
Bhoop Singh (supra) and Som Dev (supra), the Court was dealing with
the issue of compulsory registration of a decree or order of Court. In
the context of the applicable clause (vi) in sub-Section (2) of Section 17,
the Court in Bhoop Singh (supra) went on to hold as follows: -
“18. The legal position qua clause ( vi ) can, on the basis of the
aforesaid discussion, be summarised as below:
(1) Compromise decree if bona fide, in the sense th at the
compromise is not a device to obviate payment of stamp duty and
frustrate the law relating to registration, would n ot require
registration. In a converse situation, it would require registration.
(2) If the compromise decree were to create for the first time right,
title or interest in immovable property of the value of Rs.100 or
upwards in favour of any party to the suit the decree or order
would require registration.
(3) If the decree were not to attract any of the clauses of sub-
section (1) of Section 17, as was the position in the afor esaid
Privy Council and this Court’s cases, it is apparent that the decree
would not require registration.
(4) If the decree were not to embody the terms of compromi se,
as was the position in Lahore case , benefit from the terms of
compromise cannot be derived, even if a suit were to be disposed
of because of the compromise in question.
(5) If the property dealt with by the decree be not the “subject-
matter of the suit or proceeding”, clause ( vi ) of sub-section (2)
would not operate, because of the amendment of this clause by
Act 21 of 1929, which has its origin in the aforesaid decision of
the Privy Council, according to which the original clause would
have been attracted, even if it were to encompass prope rty not
litigated.”
RAVINDER KAUR GREWAL & ORS. v. MANJIT KAUR & ORS.
[A. M. KHANWILKAR, J.]
In the present case, as noted earlier clause (v) of Section 17(2) is
attracted, which pertains to execution of any document creating or
extinguishing right, title or interest in an immovable property amongst
the family members. Thus, the dictum in Kale (supra) is attracted in the
fact situation of this case.
19. Considering the above, we have no hesitation in concluding
that the High Court committed manifest error in interfering with and in
particular reversing the well-considered decision of the first appellate
Court, which had justly concluded that document dated 10.3.1988 executed
between the parties was merely a memorandum of settlement, and it did
not require registration. It must follow that the relief claimed by the
plaintiff in the suit, as granted by the first appellate Court ought not to
have been interfered with by the High Court and more so, in a c asual
manner, as adverted to earlier.
20. Having said that, it is unnecessary to examine the alternative
plea taken by the plaintiff to grant decree as prayed on the ground of
having become owner by adverse possession. For the completi on of
record, we may mention that in fact, the trial Court had found that the
possession of the plaintiff was only permissive possession and that finding
has not been disturbed by the first appellate Court. In such a case, it is
doubtful that the plaintiff can be heard to pursue relief, as prayed on the
basis of his alternative plea of adverse possession.
21. Be that as it may, we deem it appropriate to set as ide the
impugned judgment and restore the judgment and decree passed by the
first appellate Court in favour of the plaintiffs (appellants herein).
22. Accordingly, this appeal is allowed. Impugned judgment and
decree of the High Court is set aside. The judgment and decree passed
by the first appellate Court is restored in favour of the plaintiff (appellants
herein). Decree be drawn up accordingly. There shall be no order as to
costs. Pending interlocutory applications, if any, shall stand disposed of.
Ankit Gyan Appeal allowed.