Prasanta Kumar Sahoo & Ors. v. Charulata Sahu & Ors.
J. B. PARDIWALA, J.
1. Since the issues involved in both the captioned appeal s are
interrelated; the parties are also same and the challenge is also to the
self-same judgment and decree passed by the High Court of Orissa,
those were taken up for hearing analogously and are being disposed of
by this common judgment and order.
2. Both the captioned appeals are at the instance of the legal
representatives and heirs of the original defendant No. 1 (Late Shri
Prafulla Sahoo S/o Kumar Sahoo) and are directed against the judgment,
order and decree passed by a Division Bench of the High C ourt of
Orissa at Cuttack dated 5.05.2011 in AHO No. 133 of 2000 by which
the Division Bench of the High Court dismissed the Letters Patent Appeal
filed by the appellants herein thereby affirming the judgment and decree
of partition passed by the Trial Court in the Title Suit No. 348 of 1980
instituted by the original plaintiff (Respondent No. 1 herein) and on the
other hand allowed the cross-objections filed by the Original Defendant
No. 2, thereby setting aside and declaring the compromise recorded by
the First Appellate Court entered into between the Late Prafulla Sahoo
and his sister i.e., the Defendant No. 2 in the suit to be invalid.
FACTUAL MATRIX
3. This litigation relates to the partition of ancestral properties of
one Kumar Sahoo, between the appellants who are the legal
representatives and heirs of the Defendant No. 1 (Late Mr. P rafulla
Sahoo S/o of Kumar Sahoo), the Respondent No. 1 herein i.e., the Plaintiff
(Mrs. Charulata Sahoo daughter of Kumar Sahoo) and the Respondent
No. 2 who are the legal representatives and heirs of the Defendant No.
2 (Mrs. Santilata D/o Kumar Sahoo)
4. For the sake of convenience, the relationship of the parties will
appear from the following genealogical table, drawn as under: -
27
5. It appears from the materials on record that sometime in 1940
upon partition Late Shri Kumar Sahoo i.e., the father of the Pl aintiff,
Defendant No. 1 and Defendant No. 2 resply as a co-parcener received
the subject properties. In 1969, when Shri Kumar Sahoo passed away,
he was survived by the Plaintiff and Defendant Nos. 1 and 2 resply.
6. On 3.12.1980, the Respondent No. 1 (herein Original Plaintiff)
filed a suit for partition being the T.S. No. 348 of 1980, claiming 1/3 rd
share in the properties ‘A’ to ‘F’ as scheduled in the plaint.
7. The Respondent No. 1 (herein Original Plaintiff) prayed for
the following reliefs in the title suit No. 348 of 1980 referred to above:
“(i) Let a preliminary decree be passed for partition in r espect
of the plaintiff’s 1/3 rd share in schedule ‘A’ to ‘F’ and the
plaintiff be put in specific possession of the same on a separate
allotment being curved out in final decree proceedi ng by
appointment of Civil Court Survey knowing commissioner and
a decree for mesne profit be passed against Defendant No. 1
from 1977 till the date of the suit and from the date of suit t ill
the decree is made final and the share of Defendant No. 1 in
the suit properties be charged for payment of the same.
(ii) Let the Defendant No. 1 be permanently restrained f rom
interfering with the plaintiff’s separate allotment in the final
decree proceeding at any time in future.
(iii) Let a degree be passed for the costs of the sui t against
the Defendants.
(iv) Let a decree be passed for such other relief t hat the
plaintiff is ultimately found entitled in his favour again st the
Defendants.
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
DESCRIPTION OF THE PROPERTIES
SCHEDULE-A
1. Dist- Cuttack, S. R. Cuttack, Village- Chauliaga nj, P.S.
No. 213. P.S. Madhupatna Khata No. 34, plot No. 1088 Area
Ac. 0.465 dec. Khata No. 32, Plot No. 1088.
KhataNo. 33 Plot No. 1086 Ac. 142. dec.
Khata No. 260 Plot No. 1087 Ac. 0.502 dec.
Plot No. 818 Ac 0.266 dec.
Khata No. 264 Plot No. 1090 Ac 0.012 dec.
---------------------------
Ac 1.508 dec.
(A.V. Rs. 1,03,930/-)
SCHEDULE- ‘B’
Mouza- Paisa (Hal - Gandarpur)
Khata No. 108 Plot No. 110 Ac. 0.48 dec.
Khata No. 106 Plot No. 97 Ac. 0.89 dec
Khata No. -do- Plot No. 98, Ac. 0.09 dec.
Plot No. 99 Ac. 0.14 dec
Plot No. 100 Ac. 0.37 dec.
Khata No. 107 Plot No. 95 Ac. 0. 17 dec.
Khata No. 184 Plot No. 101 Ac. 0.45 dec.
Khata No. 114 Plot No. 199 Ac.0.21- ½ dec.
Khata No. 8 Plot No. 96 Ac. 0.10 dec.
-----------------
Ac. 2.90-½ dec.
(.A.V. RS. 2850/-)
SCHEDULE -’C’
District- Cuttack. S.R. Cuttack, Mouza- Rajahans,
29
Khata No. 855, Plot No. 316. Ac. 0.18 dec
Khata No. 228 Plot No. 535 Ac. 0.08 dec.
Plot No. 539 Ac. 0.02 dec
Plot No. 548 Ac. 0.03 dec.
Plot No. 553 Ac. 0.41 dec.
-----------------
Ac. 0.72 dec.
(A.V. RS. 720/-)
SCHEDULE -’D’
Mouza- Safipur, P.S. Sadar, Cuttack,
.... A.V .... Rs.
SCHEDULE -’E’
Mouza- Dian Rajhans Khata No. 1 Plot No. 73Ac. 0.13 dec.
Plot No. 76 Ac. 0.12 dec
--------------
Ac. 0.25 dec
Khata No. 2. Plot No. 85 Ac. 0.12 dec.
Plot No. 87 Ac. 0.14 dec
Plot No. 93 Ac. 0.18 dec.
Plot No. 70 Ac. 0.19 dec.
Plot No. 72 Ac. 0.29 dec.
Plot No. 104 Ac. 0. 19 dec.
-------------------
Ac. 1.10 dec
. . ... valued at Rs. 205/-
Khata No. 18 Plot No. 128 Ac. 0.50
Plot No. 135 Ac. 27.59 dec
Plot No. 179 Ac. 1.93 dec
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
Plot No. 180 Ac. 2.22 dec
Plot No. 181 Ac. 10.18 dec
Plot No. 127 Ac. 2.13 dec.
Plot No. 130 Ac. 1.23 dec.
Plot No. 101/186 Ac. 0.24 dec.
Plot No. 132 Ac. 0.35 dec.
Plot No. 132 Ac. 0.35 dec.
Plot No. l37 Ac. 0.20 dec.
Plot No. 136 Ac. 0.26 dec.
Plot No. 99/185 Ac. 0.42 dec.
No. 47.25 dec. valued at Rs. 450/-
Khata No. 19 Plot No. 75 Ac. 0.31 dec
Plot No. 64 Ac. 0.22 dec.
Plot No. 74 Ac. 0.30 dec.
Plot No. 79 Ac. 0.15 dec.
Plot No. 34 Ac. 0.15 dec.
Plot No. 38 Ac. 0.11 dec.
Plot No. 69 Ac. 0.23 dec.
Plot No. 68 Ac. 0.37 dec.
------------------
Ac. 1.74 dec.
Valuation Rs. 350/-
Khata No. 21 Plot No. 145 Ac. 0.68 dec.
Plot No. 71 Ac. 0.30dec
Plot No. 58 Ac. 0.22 dec.
Plot No. 182 Ac. 0.03 dec.
Plot No. 57 Ac. 0.21 dec.
Plot No. 194 Ac. 0.20 dec.
31
Plot No. 107 Ac. 0.11 dec.
Plot No. 139 Ac. 0.25 dec.
Plot No. 83 Ac. 0.06 dec.
--------------------
Ac. 3.06 dec
Valuation Rs. 595/-
SCHEDULE -’F’
Mouza- Nagagajpur, P.S. Sadar, S.R. Cuttack, Dist- Cu ttack.
Khata No. 61.
Plot No. 51 Ac. 0.080 dec.
Plot No. 54 Ac. 0.023dec.
Plot No. 57 Ac. 0.012 dec.
Plot No. 61 Ac. 0.035 dec.
Plot No. 62 Ac. 0.22dec.
Plot No. 91 Ac. 0.006 dec.
Plot No. 93 Ac. 0.007 dec.
Plot No. 108 Ac. 0.044 dec.
-----------------
Ac 1.89 decimals
. . . . . . . . . . Rs/ 1.890/-
Agricultural and other lands Ac. 60.79 dec.
...Valued at Rs. 1.20, 610/-
VERIFICATION.”
8. The Trial Court framed the following issues:
“(1) Is the suit maintainable in law?
(2) Are the plaintiff and Defendant No. 2 members of the family
of Defendant No. 1 in view of introduction of Urban Land
Ceiling & Regulation Act, 1976, and can the plaintiff maint ain
a suit for partition of the suit property?
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
(3) Is the suit property liable for partition among the p arties?
(4) What are the respective shares of the plaintiff, De fendant
No. 1 and Defendant No. 2 in the suit property?
(5) Which of the properties in suit are ancestral a nd self-
acquired of Kumar Sahu?
(6) What are the shares of plaintiff and Defendant No. 2 in
the mesne profit and from what date they are entitled to the
same?
(7) Are the alienations made by different parties out of the
suit property at different points of time to be adjusted to their
respective shares?
(8) Whether the settlement deed dated 20.07.1985 ex ecuted
by late Nisamani Dei has been acted upon and are plaint iff
and Defendant No. 2 bound by the same?
(9) Was there sufficient joint family nucleus in th e hand of
Defendant No. 1 for alleged construction of the estate of t he
joint family?
(10) Whether the property of Khata No. 18 in Schedule E of
the amended plaint is available for partition?
(11) To what relief the parties are entitled?
The trial court decreed the suit and observed that the plaintiff
had one-sixth share in the ancestral property and one-t hird
share in the separate property. The said decree is being
challenged by Defendant No. 1.”
9. The suit between the parties was adjudicated and vide the
judgment and order dated 30.12.1986 the Civil Judge drew a preliminary
decree as under:
“ ORDER
The suit is decreed preliminarily on contest against defendant
No: 1 with costs an D-2 without cost. Plaintiff is entitled t o 2
annas 8 pies (1/6 th ) share and 1/3 rd share in respect of
ancestral and self acquired properties and super st ructures
thereon (Houses and buildings) respectively of Late Kumar
Charan Sahu out of the suit properties. She is also entitled t o
33
the same share in respect of mense profits thereof, from the
date of institution of the suit. Defendant No-2 is also entit led
to same share of properties and mense profits. Defendant No:
1 is entitled to 10 annas 8 pies (2/3 rd ) and 1/3 rd share in
ancestral and self acquired properties respectively and
superstructure thereon of Late Kumar Charan Sahu and mense
profits thereof. An Amin Commissioner is to be depu ted for
effecting partition on the above basis who is the final decree
proceeding will apportion shares on above basis aft er
ascertaining the details of ancestral and self acqu ired
properties an superstructures thereon and also the qua ntum
of mense profits in the light of indications and finding r eached
on different issues discussed in the judgment. Afte r
ascertainment of such share plaintiff and Defendant No:2
are to be put in possession of such properties that would be
allotted to them separately in consequence of the final decree
proceeding. Hearing fee at contested useable.”
10. Thus, the Trial Court directed that:
(i) the properties listed in the Schedule ‘A’ to ‘F’ ref erred to
above shall be considered as ancestral properties, while the
properties listed in the Schedule ‘J’ (1 to 8 properties) were
considered as the self-acquired properties of Late Shr i
Kumar Sahoo.
(ii) the Respondent No. 1 (herein Original Plaintiff) was held
entitled to 1/6 th share in the ancestral properties and 1/3 rd
share in the self-acquired properties of Late Shri Kumar
Sahoo. The Civil Court also directed that the plaintiff was
entitled to mesne profits.
(iii) similar shares and benefits accrued to the Defendant No. 2
(Respondent No. 2 herein)
(iv) the Defendant No. 1 (the Plaintiff herein) was held entitled
to 4/6 th share in the ancestral properties and 1/3 rd share in
the self-acquired properties of Late Shri Kumar Sah oo
including the mesne profits.
11. It is pertinent to note that as against the judgment and decree
of the Trial Court referred to above, it is only the Defendant No. 1, who
thought fit to file F.A. No. 359 of 1986 before the High Court of Orissa.
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
This appeal was essentially filed on the ground that all the properties of
Late Shri Kumar Sahoo, as scheduled in the plaint should have been
held to be ancestral properties.
12. It appears from the materials on record that while the first
appeal referred to above was pending before the High Court, the
Defendant No. 2 (Respondent No. 2 herein) entered into a settleme nt
with the Defendant No.1 thereby relinquishing her share in accordance
with the decree passed by the Trial Court in lieu of consideration of Rs.
50, 000/- and the portions of land in Schedule ‘A’ and ‘B’. In s uch
circumstances referred to above, a compromise petition dated 29.03.1991
duly signed on affidavit by the Defendant Nos. 1 and 2 resply, was filed
before the High Court which came to be registered as the Miscellaneous
Case No. 643 of 1990 in F.A. No. 359 of 1986 referred to above.
13. The learned Single Judge of the High Court, while disposing
of the F.A. No. 359 of 1986 observed as under:
“4. In this appeal, it is first contended that certain pr operties
having been given to the daughters by the father during his
life time and certain properties having been gifted to them at
the time of their marriage and certain other properties hav ing
been purchased by the father in the names of the tw o
daughters, namely plaintiff and Defendant No. 2, th ey are
not entitled to any separate share after death of the father.
5. There is no challenge as such to the validity of the gift
deeds, if any, in favour of the daughters at the time of their
marriage. There is also no material to indicate that certain
properties had been purchased in the names of the daughters
as name-lenders and actually the property belonged to the
father. Therefore, even assuming that certain proper ties had
been gifted and had been purchased in the names of plaintiff
and Defendant No. 2, that cannot be a ground to negate the
right of succession of the plaintiff and Defendant No. 2, which
accrued after death of the father.
6. The learned counsel for the appellant also contended that
some properties were self-acquired properties of De fendant
No. 1 himself. A perusal of the written statement i ndicates
that no such specific case had been made out in the wr itten
statement, nor any such material is available on reco rd. In
35
absence of any evidence worth the name, it is difficult to accept
such a contention raised by the appellant.
7. The learned counsel appearing for the appellant then
contended that during pendency of the appeal, a compromise
has been effected between the present appellant and
Respondent No. 2, wherein Respondent No.2 has given up
her share in favour of Defendant No. 1. Since such
compromise is otherwise lawful and it does not prejudicia lly
affect the right of the plaintiff, it can be given ef fect to and
the decree of the trial court is to be modified accordingl y.”
8. Thus, though all other contentions of the appellant are n ot
acceptable, in view of the compromise the decree of the t rial
court is modified to the extent that Defendant No. 1 shall also
be entitled to the share of Respondent No. 2. In other words,
he would be entitled to 5/6th share in the ancestral property
and 2/3 rd share in the separate properties as determined by
the trial court. The decree of the trial court is modified to t he
above extent.
9. It appears that during the pendency of the appeal, receiver s
had been appointed at different times and presently Defendant
No. 1-appellant is continuing as the receiver. It further appears
that certain amounts have been deposited in this Court which
have been kept in fixed deposit. The fixed deposit in this court
shall be renewed from time to time for appropriate period t o
fetch maximum interest. The amount which is not yet kept in
fixed deposit shall also be kept in fixed deposit i n similar
manner so that the amount can be disbursed in accorda nce
with the direction to be made in the final decree a fter the
final decree proceedings are over. If the parties do not c ome
to any amicable arrangement, the plaintiff or Defendant No.
1 may initiate the final decree proceeding. The tri al court
after making necessary adjustment towards any justi fied
expenditure, et cetera, shall pass a direction rega rding
disbursement of the amount in accordance with the s hares
now indicated in this judgment. The receiver shall hencef orth
act under the direction of the trial court and all n ecessary
obligation relating to accounting and maintenance o f the
properties etc. shall be determined by the trial cour t and if
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
any deposit is required to be made by the receiver, th e same
shall be made in the trial court which shall make s imilar
arrangements regarding fixed deposits. Applications for
removal of the receiver or for imposing any fresh condi tions
can be made before the trial court which is free to deal with
all such applications.” (Emphasis supplied)
14. The Defendant No. 1 (Appellants herein) continued with the
litigation by filing the Letters Patent Appeal under Chapter VI of the
Rules of High Court of Orissa, 1948. The Letters Patent Appea l was
filed essentially on the ground that the learned Single Judge of the High
Court had failed to correctly adjudicate the issue whether s ome of the
properties as mentioned in the schedule to the plaint were self-acquired
properties of Late Shri Kumar Sahoo or all the properties were ancestral
properties.
15. The Defendant No. 1 (Appellants) went in appeal before the
Division Bench of the High Court essentially on the ground that all the
properties were ancestral as the same are derived out of the same nucleus
of the existing ancestral properties. The appeal before the Division Bench
was registered as the Appeal bearing No. AHO No. 133 of 2000.
16. On 28.06.2001, the Defendant No. 2 (Respondent No. 2 herein)
challenged the validity of the settlement deed referred to above vide
cross appeal in the AHO No. 133 of 2000.
17. In the Letters Patent Appeal filed by the Appellants he rein,
the Court addressed itself on the following points of determination:
“(i) whether the findings and reasons recorded on t he
contentious issues by the learned trial judge are e ither
erroneous or error in law warranting interference b y this
Court in exercise of its power?
(ii) whether the first appellate judge in not deali ng with the
grounds urged by the first defendant by framing approp riate
point on the findings recorded on the contentious issue s by
the learned trial court, this court requires interf erence with
the impugned judgment in this appeal though, this C ourt’s
jurisdiction in this Letter Patent Appeal is also analogous to
the first appellate court?
37
(iii) whether the findings recorded in issue no.5, holding that
some of the schedule properties are self-acquired pr operties
of late Kumar Sahoo is erroneous or error in law and liable
to be interfered with by this Court in this appeal?
(iv) whether the compromise petition filed by the counse l for
defendants 1 & 2 In the First Appeal without specia l
authorization in their favour for signing the compr omise
petition by defendant no. 2, and plaintiff is not a party to the
compromise petition, could have been accepted by the learned
Single Judge and modified the judgment of the trial court in
so far as the share assigned to the defendant no.2, the sam e
is legal and valid?
(v) what decree the parties are entitled to?”
18. The Division Bench of the High Court vide its impugned
judgment and order dated 5.05.2011 dismissed the appeal i.e., the AHO
No. 133 of 2000 filed by the Defendant No. 1 (Appellant herein) a nd
allowed the cross appeal filed by the Defendant No. 2. Thus, the Division
Bench of the High Court set at naught the compromise entered into
between the Defendants.
19. In such circumstances referred to above, the Appellants (Legal
heirs of the Original Defendant No. 1) are here before thi s Court with
the present appeals.
SUBMISSIONS ON BEHALF OF THE APPELLANTS
20. Mr. R. Basant, the learned Senior Counsel appearing for the
appellants vehemently submitted that the courts below committed a serious
error in recording a finding that the properties in Schedul e ‘J’ (1 to 8
properties) were self-acquired properties of Late Shri Kumar Sahoo.
According to Mr. Basant all the properties devolving upon the Plaintiff
and Defendan ts are ancestral in nature.
21. It was submitted that there is nothing on record to indicate
that Late Shri Kumar Sahoo had any independent source of inco me
through which, he during his lifetime had acquired certain prope rties
which, does not form part of the ancestral properties. According to Mr.
Basant, the J series properties (1 to 8 properties) wer e bought by Late
Shri Kumar Sahoo with the aid of the income derived from the ancestral
properties and in such circumstances, the J series (1 t o 8 properties)
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
would form part of the same nucleus of existing ancestral pro perties
which could now be said to have been devolved on the Plaintiff and the
Defendants as ancestral properties.
22. Mr. Basant, thereafter, addressed the Court on the effect of
the Hindu Succession (Amendment) Act, 2005 (for sho rt, ‘the
Amendment Act, 2005’ or ‘2005 Amendment’) to the Hindu Succession
Act, 1956 (for short, ‘the Act 1956’). He submitted that the Respondent
should not be allowed to raise the plea of effecting rights under the
amendment to Section 6 of the Act 1956 after these many years . He
further submitted that assuming for the moment that the 2005 Amendment
has altered the rights of the parties, more particularly, the sisters as co-
parceners, however, in view of the settlement deed, the rights of the
Respondent No. 2 (herein Original Defendant No. 2) could be said to
have been extinguished and transferred to the Appellants. He submitted
that the transfer by the Defendant No. 2 of her entire share in favour of
the Defendant No. 1 would be a disposition of her share/rights in the suit
properties. The disposition which took place in 1991 cannot be permitted
to be unsettled in view of the 2005 Amendment.
23. He submitted that the retrospective effect of t he 2005
Amendment would cause havoc to the alienation made between 1965
and 2005 and in such circumstances, the rights of the Respondent No. 1
(Plaintiff), if any, would accrue to the heirs qua the unalienated/
encumbered ancestral property, as available with the nucleus of the joint
family property with effect from 20.12.2004 only.
24. Mr. Basant submitted that as the alienations which might have
been taken place prior to 20.12.2004 cannot be reopened in order t o
ascertain which properties are available for partition, the matter should
be remitted to the Trial Court.
25. He further submitted that in accordance with the proviso t o
sub-section (1) of Section 6 of the Act 1956 (as amended on 9.09.2005)
no disposition or alienation including partition or testamentary disposition
of property which took place before 20.12.2004 shall be invalidated or
set aside on account of the 2005 Amendment.
26. Mr. Basant in support of his aforesaid submission invited the
attention of this Court to the decision of this Court in the case of Vineeta
Sharma v. Rakesh Sharma and Others reported in (2020) 9 SCC 1,
more particularly, the observations in para 76 at page 58, whi ch reads
thus:
39
“76. It was argued that in case Parliament intended that the
incident of birth prior to 2005 would be sufficient to confer
the status of a coparcener, Parliament would need not have
enacted the proviso to Section 6(1). When we read t he
provisions conjointly, when right is given to the daug hter of
a coparcener in the same manner as a son by birth, it bec ame
necessary to save the dispositions or alienations, including
any partition or testamentary succession, which had taken
place before 20-12-2004 . A daughter can assert the right on
and from 9-9-2005, and the proviso saves from invalid ation
the above transactions.” (Emphasis supplied)
27. Mr. Basant submitted that there was no good reason for the
High Court to look into the validity and execution of the settlement deed
between the Defendant Nos. 1 and 2 resply. If all the propert ies are
considered to be ancestral, the Plaintiff is entitled to 1/6 th share of the
total ancestral properties, while the Defendant No. 1 would be entitled
to 5/6 th share of the total ancestral property. He submitted tha t in the
event, it is determined that the J series properties (1 to 8 properties) are
in fact self-acquired, then the Plaintiff is entitled to 1/6 th share of the
ancestral property and 1/3 rd share of the self-acquired property, while
the Defendant No. 1 would be entitled to 5/6 th share of the total ancestral
property and 2/3 rd share of the self-acquired property.
28. In support of his submission that the settlement be tween
Defendant Nos. 1 and 2 resply was lawful, just and proper, he relied on
the following decisions of this Court:
(i) Bai Chanchal and Others v. Syed Jalaluddin and Others
reported in (1970) 3 SCC 124 at para 8,
(ii) Byram Pestonji Gariwala v. Union Bank of India and
Others reported in (1992) 1 SCC 31 at para 38-41,
(iii) D.S. Lakshmaiah and Another v. L. Balasubramanyam
and Another reported in (2003) 10 SCC 310 at para 18,
(iv) Jineshwardas (Dead) by LRs. and Others v. Jagrani (Smt)
and Another reported in (2003) 11 SCC 372 at para 7-8 and
(v) Pushpa Devi Bhagat (Dead) through LR. Sadhna Rai (Smt)
v. Rajinder Singh and Others reported in (2006) 5 SCC 566 at paras
18, 19, 23-25.
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
29. In such circumstances referred to above, Mr. Basant pra ys
that there being merit in his appeals, the same may be allowed and the
impugned judgment and order passed by the High Court be modified
accordingly.
SUBMISSIONS ON BEHALF OF THE RESPONDENT
NO. 1 (ORIGINAL PLAINTIFF)
30. Ms. B. Sunita Rao, the learned counsel appearing for the
Respondent No. 1 (Original Plaintiff) vehemently submitted that no error
not to speak of any error of law could be said to have be en committed
by the High Court in passing the impugned judgment and decree. She
submitted that in view of the decision of this Court in the case of Vineeta
Sharma (supra) the Plaintiff is now entitled to 1/3 rd share in all the
properties of Late Shri Kumar Sahoo, which were available at the time
of filing of the suit. She submitted that in view of the de cision of this
Court, in the case of Ganduri Koteshwaramma and Another v. Chakiri
Yanadi and Another reported in (2011) 9 SCC 788, the preliminary
decree can be awarded/altered or modified in the event of the changed
circumstances, even if no appeal has been filed.
31. The learned counsel further submitted that in view of t he
amendment of 2005 to Section 6 of the Act 1956 and the decision of this
Court in case of Vineeta Sharma (supra) the daughters are entitled to
equal share with that of the son in the coparcenary prop erties. The
Plaintiff being one of the daughters of Late Kumar Sahoo is entitled to a
larger and equal share in the ancestral property and in such circumstances
the decree now needs to be modified on account of the operation of law.
32. The learned counsel submitted that the Plaintiff and Defendants
are now each entitled to 1/3 rd share of both ancestral and self-acquired
properties of Late Kumar Sahoo. While explaining the true import of the
operation of the amended provision of Section 6(1) of the Act 1956, she
submitted that the alienations before 20.12.2004 are permitte d but the
property alienated would fall to the share of the co-parcener, who made
the alienation, if no legal binding necessity is proved. The learned counsel
pointed out that the Trial Court has held that alienation would be a part
of the share of the Defendant No. 1. She submitted that any alienati on
after the date of filing of the suit would be hit by the doctri ne of lis
pendens . The alienation prior to the filing of the suit was considered by
the Trial Court and specific finding in that regard has been recorded.
41
33. It was pointed out that out of 4.408 acres of land in Schedule
‘A’ and ‘B’ properties, the unencumbered property available for immediate
division is 3.762 acres (around 94 guntas). It was also pointed out that
full extent of the suit properties in Schedule ‘C’, ‘D’, ‘E’ and ‘F’ resply
are available for division, as at the time of the preliminary decree.
34. As regards the settlement between the Defendant Nos. 1 and
2, the learned counsel submitted that the Plaintiff was nev er a part of
the compromise. No notice was issued to her nor she had put her signature
on any part of the compromise deed or had agreed to the ter ms of the
compromise. According to the learned counsel, the Plaintiff never joined
in the settlement. On the issue of disbursement of the receivership amount
deposited in the Court, the counsel submitted that the Plaintiff is 84 years
old and has filed multiple IAs being IA No. 44977 of 2013, IA No. 127171
of 2019 and IA No. 190628 of 2022 resply in the present proceedings for
disbursement of her 1/3 rd share in the amount already deposited by the
receiver. It was submitted that the Plaintiff does not have any independent
source of income and has to incur a lot of expenditure towards medical
treatment etc.
35. In the written submissions filed by the learned counsel appearing
for the Respondent No. 1, the defaults alleged to have been committed
by the Defendant No. 1 as narrated in IA No. 190628 of 2022 has been
highlighted as under:
“1. Modification of the superstructures on suit prop erty
without leave of the Court. (Relevant page 10-13 of IA)
2. Dues with regard to suit properties:
a. Water Bills - Rs. 51,478/-
b. Revenue Tax - Rs. 80,733/-
c. Electricity Bills - Rs.1,89,228.84
total Rs. 3,21,439.84
(Relevant page 14-15 of IA)
3. Illegal filling of two Jalasaya in Suit propertie s in
contempt of the order of the Hon’ble High Court (Reports
of tahsildar, Cuttack Municipal Corporation and FIR
filed by police on complaint of tahsildar are annexe d,
Relevant pages 17-20 of IA)
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
4. Installation of 100 Kw Electric transformer on su it
property after getting permission for different plo t.
(Relevant Page 21 of IA)
5. Obtained permission for Electric substation of 500 K VA
for suit property by forging signature of plaintiff and
Defendant 2 (in 2016 whereas Defendant no. 2 died in
2008) (Relevant Page 22 of IA)
6. A case for authorized construction on suit properties has
been instituted by Cuttack Development Authority being
U.C. No. 249/2016. (Relevant Page 23 of IA)”
36. The learned counsel vehemently submitted that the Defendant
No. 2 should be removed as a receiver forthwith and the Plaintiff should
be appointed as the receiver of the properties.
SUBMISSIONS ON BEHALF OF THE RESPONDENT
NOS. 3, 4, 5, 7 AND 8 RESPLY (LEGAL HEIRS OF THE
ORIGINAL DEFENDANT NO. 2)
37. Mr. V. Chitambaresh, the learned Senior Counsel addressed
himself on four issues:
(i) Whether the properties as scheduled in the plaint are
ancestral or self-acquired properties of the predecessor -
in-interest of the plaintiff and defendants 1 and 2 and what
share the parties are entitled to?
(ii) Whether a cross-appeal is maintainable for the purpos e of
challenging the alleged compromise?
(iii) Whether the alleged settlement deed dated 28.03.1991 is
valid and binding under order XXIII Rule 3 Code of Civil
Procedure, 1908 (for short, ‘the CPC’)?
(iv) Whether the compromise was acted upon by the Defendant
Nos. 1 and 2?
(v) Whether the counsel can sign the Compromise Petition
without an express consent?
38. On the first issue, the learned Senior Counsel submitted that
there is a concurrent finding on the nature of the suit properties recorded
by all the three courts i.e., the Trial Court, the Single Judge of the High
Court and the Division Bench of the High Court. He would submit that
43
the Plaintiff as well as the Defendant No. 2 being daught ers and co-
parceners are entitled to equal share in the ancestral properties as along
with their brother i.e., the Defendant No. 1 (Appellant). He would submit
that the law in this regard is now well settled as explained by this Court
in the case of Vineeta Sharma (supra). Relying on the decision of this
Court, in the case of Ganduri Koteshwaramma (supra) he submitted
that even if no appeal has been filed by the Plaintiff and the Defendant,
the shares will have to be determined in accordance with the amendment
and the law as laid down in Vineeta Sharma (supra). Over and above
the share reckoned in the alleged compromise in dispute, the Defendant
No. 2 would be entitled to additional 1/6 th share in the ancestral property.
39. On the second issue referred to above, the learned Senior
Counsel submitted that a cross-appeal is maintainable for the purpose of
challenging the compromise. He submitted that a cross-appe al under
Order XLI Rule 22 of the CPC is as good as a regular first appeal and
the same would be maintainable, even if, the regular first appeal is
dismissed or withdrawn. A cross-appeal is an exercise of su bstantive
right of appeal and only the procedure would vary.
40. The learned Senior Counsel also invited the attention of this
Court to the provisions of Order XLIII Rule 1-A (2) of the CP C. He
would submit that the cross-objector is entitled under Order XLI Rule
22 of the CPC read with Order XLIII Rule 1-A (2) of the CPC to
contend in his or her cross-appeal that the alleged settlem ent deed or
agreement should not have been reckoned as a valid compromise and
recorded under Order XXIII Rule 3 of the CPC.
41. In such circumstances referred to above, the learned Se nior
Counsel prays that there being no merit in the appeals the same may be
dismissed and the shares of the parties be determined in a ccordance
with the 2005 Amendment.
ANALYSIS
42. Having heard the learned counsel appearing for the partie s
and having gone through the materials on record, the following questions
fall for our consideration:
(i) In what manner, the rights of the parties would be govern ed
keeping in mind the dictum as laid by this Court in its decision in the case
of Vineeta Sharma (supra)
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
(ii) Whether the High Court was justified in declaring the settlement
between the appellants herein (Defendant No. 1) and Respondent No. 2
(Defendant No. 1) as invalid? In other words, whether the Hi gh Court
was right in allowing the cross-appeal filed by the Original Defendant
No. 2 (Respondent No. 2 herein).
43. Before adverting to the rival submission canvassed on either
side, we should give a fair idea as regards the history and development
of Hindu Law as well as look at the Law Commission Report, Report of
the Standing Committee of Parliament and the Statement of Objects
and Reasons of the Bill introduced in Parliament with the p urpose of
finding out the true intent of the Parliament in amending Section 6 of the
Act 1956 by the 2005 Amendment.
44. We have traced the history and development of Hindu Law
from a Full Bench decision of the Bombay High Court, in the ca se of
Badrinarayan Shankar Bhandari and Others v. Ompraka sh
Shankar Bhandari reported in AIR 2014 Bom 151 (FB).
Old Hindu Law
45. Before the enactment of the Principal Act, Hindu s were
covered by shastric and customary law which varied from regi on to
region. Principally, there were two schools of Hindu Law in Indi a i.e.
Dayabhaga which was prevalent in eastern part of India i.e. Bengal and
the adjoining areas and Mitakshara which was prevalent in the rest of
India. Under the Mitakshara School of Hindu Law, woman in a joint
Hindu family had merely a right of maintenance/ sustenance but had no
right of inheritance to property. The basis of Hindu joint fam ily was a
common male ancestor and the properties of the family were held as a
coparcenary property with male member of the family having a right to
the property by virtue of birth and their interest in th e coparcenary
property would keep varying depending upon the death or a bi rth of a
male in the joint Hindu Family. The property of a male coparcener on his
death used to pass by survivorship in the Mitakshara School of Hindu
Law. No female is a member of the coparcenary though, she is a member
of the joint Hindu family. The coparcenary would normally consist up to
four degrees i.e. the common ancestor (coparcener), his son, grandson
and great grandson.
46. Under the Dayabhaga School of Hindu Law, the daughters
also got equal share along with their brothers. Under the Dayabha ga
45
School property is transmitted by Succession and not by Survivorship. In
this School, a female could be a coparcener. So far as the Dayabhaga
School was concerned, there was no concept of a coparcenary property
and every member of a Hindu family would hold property in his/her own
right and was entitled to dispose of the property as he/sh e deems fit
either by gift or Will. There was no concept of passing o f property by
survivorship nor did a Hindu male in Dayabhaga School acquire rights to
property merely by virtue of his birth. Consequently, women had a right
equal to the rights to that of men belonging to the family in the Dayabhaga
School of Hindu Law.
47. The earliest legislation with regard to right of female inheritance
was made in 1929 called the Hindu Law of Inheritance Act, 1929. This
Act conferred inheritance right to three female heirs- son’ s-daughter,
daughter’s-daughter and sister. Thus, bringing about restrictions on the
exclusive Rule of Survivorship. The next legislation was the Hindu
Women’s Right to Property Act 1937. This Act enabled the wi dow to
succeed along with the son of the deceased in equal share to the property
of her deceased husband. However, the widow was entitled on ly to
limited estate in the property i.e. life estate and could not dispose of the
property during her life time.
48. In 1950, while framing the Constitution, Articles 14, 15(2) &
(3) and 16 of the Constitution of India, sought inter alia to restrain practice
of discrimination against women and made equal treatment of women a
part of the fundamental rights guaranteed under the Constitution. In line
with the above Constitutional objective, the Parliament enacted the Hindu
Succession Act,1956 i.e. the Principal Act. This Act applies to all Hindus
including Buddhists, Jains and Sikhs. It lays down a un iform and
comprehensive system of inheritance and applies to all Hindus, whether
governed by Mitakshara or Dayabhaga School of Hindu Law. However,
Section 6 of the Principal Act as originally enacted retained substantially
the Rule of passing of property in a coparcenary by survivorship, although
it did give rights of testamentary disposition to Hindu males in respect of
his properties including his coparcenary share. The erstwhile Section 6
of the Principal Act (pre-amended Section 6) interalia provided that
the interest of a coparcener in the coparcenary property if not disposed
of by Will under Section 30 of the Principal Act, would devolve in terms
of pre-amended Section 6. The main part of pre-amen ded Section
6 provided that the right of male Hindu at the time of his deat h in the
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
coparcenary property will devolve by survivorship. However, the proviso
provided that if the deceased coparcener has any fema le relatives
specified in Class I of the Schedule to the Act, then the prope rty will
devolve in terms of pre-amended Section 6. The Explanation 1 provides
that there would be notional partition immediately before his death so as
to allocate the share in the coparcenary to the deceased coparcener.
49. It is interesting to note that the Hindu Code Bill wanted to do
away with the Mitakshara coparcenary completely. However, the same
was opposed to and the erstwhile Section 6 was enacted in the Principal
Act. Consequently, if a partition took place in the coparcenary property,
then each male coparcener would get his share and the mother and
wife/widow would not become a coparcener but would get a shar e in
the coparcenary property. But a daughter would get no share in the
coparcenary property. The daughter would only get a sha re as one of
the heirs on the death of coparcener, out of the share of the deceased in
the coparcenary property on notional partition, in view of proviso to pre-
amended Section 8 of the Principal Act. In terms of Section 30 of the
Principal Act, a Hindu male can dispose of his entire property including
his interest in coparcenary property by testamentary di sposition/ Will
and also in the process deprive his female heirs of any share.
Making of Amendment Act, 2005
50. Keeping the aforesaid position of Hindu Law, in its 174 th Report
(May 2000), the Law Commission of India was of the view tha t the
gender reforms were called for to ensure equality. The Commiss ion
noted the fact that in various States such as Kerala, Andhra Pradesh,
Tamil Nadu, Maharashtra and Karnataka, attempts had already b een
made to bring about the gender equality. But all these State s, except
Kerala, while conferring coparcenary rights on daughters also deni ed
such rights to daughters married prior to State Acts coming into force.
51. The Law Commission recommended that the daughter should
be made coparcener by birth and that she should be entitled to get a
share on partition and/or on the death of the male coparce ner. The
Commission also recommended that a daughter who is married after the
commencement of the Amendment Act, should be entitled to a share in
the ancestral property as she has already become a coparcener prior to
her marriage. One more recommendation of the Law Commission was
to do away with the erstwhile Section 23 of the Principal Act which
provided that a woman would have a right to stay in the family house as
47
a member of the joint Hindu Family but unlike a male, she would have no
right to demand a partition of the family house. The C ommission
recommended that she should have rights equal to the male in respect of
a family house.
52. The Law commission also observed that the Law o f
Succession falls under Entry V of the List III (concurrent l ist) in VII
Schedule of the Constitution. In view of Article 246 of the Constitution
of India the laws made by the above mentioned five States, would stand
repealed to the extent they are repugnant to the Princ ipal Act on
amendment.
53. On 20th December, 2004, the Hindu Succession Amendment
Bill 2004 was introduced in the Rajyasabha, inter alia, seeking to amend
the erstwhile Section 6 and doing away/omitting the erstwhile Section
23 of the Principal Act.
“Statement of Objects and Reasons for amending the
‘Principal Act’ read as follows:-
STATEMENT OF OBJECTS AND REASONS
The Hindu Succession Act, 1956 has amended and codifi ed
the law relating to intestate succession Hindus and gave ri ghts
which were till then unknown in relation to women’s property.
However, it does not interfere with the special rights of those
who are members of Hindu Mitakshara coparcenary exc ept
to provide rules for devolution of the interest of a d eceased
male in certain cases. The Act-lays down a uniform and
comprehensive system of inheritance and applies, int er alia,
to persons governed by the Mitakshara and Dayabhaga
schools and also to those governed previously by th e
Murumakkattayam, Aliyasantana and Nambudir laws.”
The Act applies to every person who is a Hindu by 28 o f 72
SA.566.2011 religion in any of its forms or develop ments
including a Virashaiva, a Lingayat or a follower of the
Brahmo, Parathana or Arya Samaj; or to any person who is
Buddhist, Jain or Sikh by religion; or to any other person
who is not a Muslim, Christian, Parsi or Jew by religion. In
the case of a testamentary disposition, this Act does not apply
and the interest of the deceased is governed by the Indian
Succession Act, 1925.
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
2. Section 6 of the Act deals with devolution of inte rest of a
male Hindu in coparcenary property and recognizes the rule
of devolution by survivorship among the members of the
coparcenary. The retention of the Mitakshara coparc enary
property without including the females in it means t hat the
females cannot inherit in ancestral property as the ir male
counterparts to. The law by excluding the daughter from
participating in the coparcenary ownership not only
contributes to her discrimination on the ground of gender
but also has led to oppression and negation of her fundamental
right of equality guaranteed by the Constitution. H aving
regard to the need of render social justice to women, the States
of Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra
have made necessary changes in the law giving equal right
to daughters in Hindu Mitakshara coparcenary property. The
Kerala Legislature has enacted the Kerala Joint Hindu Family
System (Abolition) Act, 1975.
3. It is proposed to remove the discrimination as co ntained
in section 6 of the Hindu Succession Act, 1956 by giving equal
rights to daughters in the Hindu Mitakshara coparce nary
property as the sons have. Section 23 of the Act disenti tles a
female heir to ask for partition in respect of a dwellin g house
wholly occupied by a joint family until the male heirs choose
to divide their respective shares therein. It is also prop osed to
omit the said section so as to remove the disability on femal e
heirs contained in that section.”
4. The above proposals are based on the recommendations of
the Law Commission of India as contained in its 174th Report
on ‘Property Rights of Women: Proposed Reform under the
Hindu Law.
5. The Bill seeks to achieve the above objects.”
(Emphasis supplied)
54. The Bill interalia provided in proviso to proposed Section
6(1) that the Amendment Act would not apply to a daughter married
before the commencement of the Amendment Act and al so that
the Amendment Act will have no application to a partition in case the
partition had been affected before the commencement of the Amendment
49
Act. The aforesaid Bill was thereafter referred to the Standing committee
of Parliament. The Standing Committee after recording the h istorical
growth of Hindu Law and Gender inequality with regard to the property
right practiced against a female Hindu suggested that pr oviso 1 to
proposed Section 6(1) of the Bill which sought to exclude the daughter
married before the commencement of the Amendment Act f rom the
benefit of the Act should be done away with.
55. The Standing Committee also suggested that the partition of
the Hindu family property should be properly defined in the Amendment
Act. It was suggested that partition for all purposes should be either by
registered documents or by decree of Court. However, where oral partition
is pleaded, the same should be backed by evidence in support. Further
omission of Section 23 as suggested by the Law Commission, will enable
the Hindu Women to seek partition of a family house occupied by the
family members just as male member could seek partition.
56. Thereafter, on 9.09.2005, the Amendment Act, 2005 came to
be passed as Act 39 of 2005. Section 3 of the Amendment Act, 2005
substituted erstwhile Section 6 of the Principal Act. The Am endment
Act, 2005 did away with exclusion of married daughter from getting the
benefit of the amendment and also added a proviso to Section 6( 1) of
the Principal Act saving partitions done prior to 20.12.2004 (the date of
introduction of the Bill in Rajya Sabha). The Explanation to Section 6(5)
of the Principal Act provided that for the purposes of the S ection 6 of
the Act partition only means partition by registered document or decree
of Court.
57. Before averting to the rival submissions canvassed on either
side, it would be apposite to reproduce the erstwhil e Section 6 as
appearing in the Principal Act and the amended Section 6 of the Principal
Act, as substituted by Section 3 of the Amendment Act for the sake of
convenience. The pre-amended Section 6 of the Principal Act reads as
under:
“Section 6:- Devolution of interest in coparcenary property -
when a male Hindu dies after the commencement of this Act,
having at the time of his death an interest in a Mit akshara
coparcenary property, his interest in the property shall devolve
by survivorship upon the surviving members of the
coparcenary and not in accordance with this Act;
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
Provided that, if the deceased had left him surviving a fema le
relative specified in class I of the Schedule or a male re lative
specified in that class who claims through such fem ale
relative, the interest of the deceased in the Mitak shara
coparcenary property shall devolve by testamentary or
intestate succession, as the case may be, under this Act and
not by survivorship.
Explanation 1 - For the purposes of this section, the inte rest
of a Hindu Mitakshara coparcener shall be deemed to be the
share in the property that would have been allotted to him if
a partition of the property had taken place immediately bef ore
his death, irrespective of whether he was entitled to claim
partition or not.
Explanation 2 - Nothing contained in the proviso to this section
shall be construed as enabling a person who has separ ated
himself from the coparcenary before the death of the decea sed
or any of his heirs to claim on intestacy a share in the intere st
referred to therein.”
58. The substituted Section 6 of the Principal Act as amended by
the Amendment Act, 2005 which is in force w.e.f. 9.09.2005 reads as
under:
“6. Devolution of interest of coparcenary property.—
(1) On and from the commencement of the Hindu Succession
(Amendment) Act, 2005, in a Joint Hindu family governed by
the Mitakshara law, the daughter of a coparcener shal l,
(a) by birth become a coparcener in her own right in the sam e
manner as the son;
(b) have the same rights in the coparcenary property as she
would have had if she had been a son;
(c) be subject to the same liabilities in respect o f the said
coparcenary property as that of a son, and any refere nce to
a Hindu Mitakshara coparcener shall be deemed to inclu de
a reference to a daughter of a coparcener:
Provided that nothing contained in this sub-section shall affe ct
or invalidate any disposition or alienation includi ng any
51
partition or testamentary disposition of property wh ich had
taken place before the 20th day of December, 2004.
(2) Any property to which a female Hindu becomes entit led
by virtue of sub-section (1) shall be held by her w ith the
incidents of coparcenary ownership and shall be rega rded,
notwithstanding anything contained in this Act or any ot her
law for the time being in force in, as property cap able of
being disposed of by her by testamentary disposition.
(3) Where a Hindu dies after the commencement of the Hindu
Succession (Amendment) Act, 2005, his interest in the prop erty
of a Joint Hindu family governed by the Mitakshara law, shall
devolve by testamentary or intestate succession, as the case
may be, under this Act and not by survivorship, and the
coparcenary property shall be deemed to have been di vided
as if a partition had taken place and,—
(a) the daughter is allotted the same share as is all otted to a
son;
(b) the share of the pre-deceased son or a pre- dec eased
daughter, as they would have got had they been alive at t he
time of partition, shall be allotted to the survivin g child of
such pre-deceased son or of such pre-deceased daugh ter;
and
(c) the share of the pre-deceased child of a pre-deceased son
or of a pre-deceased daughter, as such child would have got
had he or she been alive at the time of the partition, sha ll be
allotted to the child of such pre-deceased child of the pre-
deceased son or a pre-deceased daughter, as the cas e may
be.
Explanation. — For the purposes of this sub- sectio n, the
interest of a Hindu Mitakshara coparcener shall be de emed
to be the share in the property that would have been allotted
to him if a partition of the property had taken pla ce
immediately before his death, irrespective of whether he was
entitled to claim partition or not.
(4) After the commencement of the Hindu Succession
(Amendment) Act, 2005, no court shall recognise any right to
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
proceed against a son, grandson or great- grandson f or the
recovery of any debt due from his father, grandfather or gre at-
grandfather solely on the ground of the pious obligation under
the Hindu law, of such son, grandson or great-grands on to
discharge any such debt:
Provided that in the case of any debt contracted be fore the
commencement of the Hindu Succession (Amendment) Ac t,
2005, nothing contained in this sub- section shall affect —
(a) the right of any creditor to proceed against th e son,
grandson or great-grandson, as the case may be; or
(b) any alienation made in respect of or in satisfa ction of,
any such debt, and any such right or alienation sha ll be
enforceable under the rule of pious obligation in t he same
manner and to the same extent as it would have been
enforceable as if the Hindu Succession (Amendment) Act,
2005 had not been enacted.
Explanation.—For the purposes of clause (a), the expres sion
“son”, “grandson” or “great- grandson” shall be deemed to
refer to the son, grandson or great-grandson, as th e case
may be, who was born or adopted prior to the commencement
of the Hindu Succession (Amendment) Act, 2005.
(5) Nothing contained in this section shall apply to a parti tion,
which has been effected before the 20th day of Dece mber,
2004.”
Explanation.- For the purposes of this section “par tition”
means any partition made by execution of a deed of partition
duly registered under the Registration Act, 1908 (16 of 190 8)
or partition effected by a decree of a court.”
59. Before we proceed to discuss the dictum, as laid by this Court
in Vineeta Sharma (supra) we must look into the decision of this Court
in the case of Ganduri Koteshwaramma (supra). In Ganduri
Koteshwaramma (supra) this Court, in paras 11, 12, 13 & 14 resply,
observed as under:
“11. The new Section 6 provides for parity of rights in the
coparcenary property among male and female members of a
joint Hindu family on and from 9-9-2005. The legislature has
53
now conferred substantive right in favour of the dau ghters.
According to the new Section 6, the daughter of a coparcen er
becomes a coparcener by birth in her own rights and liabilities
in the same manner as the son. The declaration in Section 6
that the daughter of the coparcener shall have same rights
and liabilities in the coparcenary property as she would have
been a son is unambiguous and unequivocal. Thus, on a nd
from 9-9-2005, the daughter is entitled to a share in the
ancestral property and is a coparcener as if she had be en a
son.
12. The right accrued to a daughter in the property of a joint
Hindu family governed by the Mitakshara law, by vir tue of
the 2005 Amendment Act, is absolute, except in the
circumstances provided in the proviso appended to sub-section
(1) of Section 6. The excepted categories to which new Section
6 of the 1956 Act is not applicable are two, namely, (i) whe re
the disposition or alienation including any partition has tak en
place before 20-12-2004; and (ii) where testamentar y
disposition of property has been made before 20-12- 2004.
Sub-section (5) of Section 6 leaves no room for dou bt as it
provides that this section shall not apply to the partition w hich
has been effected before 20-12-2004. For the purpos es of
new Section 6 it is explained that “partition” mean s any
partition made by execution of a deed of partition duly
registered under the Registration Act, 1908 or part ition
effected by a decree of a court. In light of a clear provi sion
contained in the Explanation appended to sub-section (5 ) of
Section 6, for determining the non-applicability of the sec tion,
what is relevant is to find out whether the partition has been
effected before 20-12-2004 by deed of partition dul y
registered under the Registration Act, 1908 or by a decree o f
a court. In the backdrop of the above legal positio n with
reference to Section 6 brought in the 1956 Act by the 2005
Amendment Act, the question that we have to answer is as to
whether the preliminary decree passed by the trial cou rt on
19-3-1999 and amended on 27-9-2003 deprives the appellants
of the benefits of the 2005 Amendment Act although final
decree for partition has not yet been passed.
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
13. The legal position is settled that partition of a joint Hi ndu
family can be effected by various modes, inter alia , two of
these modes are (one) by a registered instrument of a partit ion
and (two) by a decree of the court. In the present case,
admittedly, the partition has not been effected before 20 -12-
2004 either by a registered instrument of partition or by a
decree of the court. The only stage that has reached i n the
suit for partition filed by Respondent 1 is the determi nation
of shares vide preliminary decree dated 19-3-1999 which came
to be amended on 27-9-2003 and the receipt of the report of
the Commissioner.
14. A preliminary decree determines the rights and int erests
of the parties. The suit for partition is not dispo sed of by
passing of the preliminary decree. It is by a final decr ee that
the immovable property of joint Hindu family is parti tioned
by metes and bounds. After the passing of the preli minary
decree, the suit continues until the final decree is pa ssed. If
in the interregnum i.e. after passing of the preliminary decree
and before the final decree is passed, the events a nd
supervening circumstances occur necessitating chang e in
shares, there is no impediment for the court to ame nd the
preliminary decree or pass another preliminary decr ee
redetermining the rights and interests of the parti es having
regard to the changed situation.”
60. Thus, in Ganduri Koteshwaramma (supra) this Court made
the following things explicitly clear:
(i) The equal share given to the daughter of a coparcener governed
by Hindu Mitakshara Law along with brothers is by way of a
substantive right;
(ii) Though the substantive right is created on and from 9-9-2005,
it relates back to the incidence of birth;
(iii) The substantive right would not be available only i f the
coparcenary property is disposed of or alienated including by any
partition or testamentary disposition of property before 20-12-2004
and;
(iv) If there is disposition of a coparcenary property by any partition,
such partition must be by execution of a Deed of Partition du ly
55
registered under the Registration Act, 1908 or effected by a decree
of the Court.
(v) A preliminary decree of partition only determines the rights
and interests of the parties. It is only by a final decre e that the
immovable property of joint Hindu family is partitioned by metes
and bounds. After the passing of the preliminary decree, the suit
continues until the final decree is passed. If in the interregnum i.e.
after passing of the preliminary decree and before the final decree
is passed, if there is any change in law necessitating determination
of shares accordingly then, there would be no impediment for the
Court to amend the preliminary decree or pass another preliminary
decree redetermining the rights and interests of the parties having
regard to the changed situation.
61. Before the position of law came to be settled by this Court in
Vineeta Sharma (supra) there were to decisions of this Court governing
the rights of the parties: (i) Prakash and Others v. Phulavati and
Others reported in (2016) 2 SCC 36 and (ii) Danamma alias Suman
Surpur and Another v. Amar and Others reported in (2018) 3 SCC
343. In Prakash (supra) it was held that Section 6 is not retrospective in
operation and it would apply when both the coparcener and his daughter
were alive on the date of commencement of the Amendment Act i.e.,
9.09.2005. Accordingly, the provisions of Section 6 were held to be
prospective. In Danamma (supra) this Court held that the amended
provisions of Section 6 conferred full rights upon the daughter coparcener.
Any coparcener including a daughter could claim a partitio n in the
coparcenary property.
62. In Danamma (supra), one Gurulingappa who was the father
and coparcener of the claimant daughter, died in the year 2001, leaving
behind two daughters, two sons and a widow. Thus, the father of t he
daughter and coparceners was not alive when the substituted provision
of Section 6 came into force. Accordingly, the daughters, sons and the
widow were given 1/5 th share in the properties. In this background, this
Court took the view that when a daughter, claiming and dema nding a
share in the coparcenary property is alive on 9.09.2005, she w ould be
entitled to the benefit of the amended provision irrespective of the effect
whether a coparcener had died before the commenceme nt of the
Amendment Act.
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
63. A three-Judge Bench of this Court doubted the correctness of
the dictum as laid in Prakash (supra) as there was an apparent conflict
between the dictum as laid in Prakash (supra) and Danamma (supra)
referred to above. The question concerning the interpretation of Section
6 of the Act 1956 was referred to a larger Bench.
64. The larger Bench ultimately settled the position of la w in
Vineeta Sharma (supra). The three-Judge Bench of this Court
considered the following main questions amongst the others:
(i) Whether the substituted Section 6 of the Hindu
Succession Act, 1956 would apply to cases where mal e
coparcener had already died prior to the commenceme nt
of the Amendment Act, 2005?
(ii) Liability of daughter for the debts contracted by th e
deceased coparcener.
(iii) What is the interpretation, scope and impact of sub-
section (5) of substituted Section 6 of the Hindu Suc cession
Act, 1956?
65. In Vineeta Sharma (supra) (paras 60, 68, 69 and 129), the
Court held that for the applicability of substituted Section 6 of the Hindu
Succession Act, 1956, it is not necessary that the male coparcener must
be alive on the date of commencement of the Amendment Act, 20 05
(i.e., 9.9.2005). Hence, it follows that the substituted Section 6 of the
Hindu Succession Act, 1956 is not confined to cases where male
coparcener dies after the commencement of the Amendment Act, 2005.
Substituted Section 6 also applies to cases where male coparcener had
already died prior to the commencement of the Amendment Act, 2005.
66. The Court explained the difference between prospective statute,
retrospective statute and retroactive statute. It has b een observed in
para 61:
“61. The prospective statute operates from the date of its
enactment conferring new rights. The retrospective statute
operates backward and takes away or impairs vested ri ghts
acquired under existing laws. A retroactive statute is the one
that does not operate retrospectively. It operates in futuro.
However, its operation is based upon the character or s tatus
that arose earlier. Characteristic or event which happened in
57
the past or requisites which had been drawn from antecedent
events. Under the amended Section 6, since the right is give n
by birth, that is, an antecedent event, and the pro visions
operate concerning claiming rights on and from the date of
Amendment Act.” (Emphasis supplied)
67. Interpreting sub-section (1) of substituted Section 6 of the Act
1956, the Court opined in para 60 as under:
“60. The amended provisions of Section 6(1) provide that on
and from the commencement of the Amendment Act, the
daughter is conferred the right. Section 6(1)(a) ma kes
daughter by birth a coparcener “in her own right” and “i n
the same manner as the son”. Section 6(1)(a) contai ns the
concept of the unobstructed heritage of Mitakshara
coparcenary, which is by virtue of birth. Section 6 (1)(b)
confers the same rights in the coparcenary property “as she
would have had if she had been a son”. The conferra l of
right is by birth, and the rights are given in the same mann er
with incidents of coparcenary as that of a son and she is
treated as a coparcener in the same manner with the same
rights as if she had been a son at the time of birth. Th ough
the rights can be claimed, w.e.f. 9-9-2005, the provisions a re
of retroactive application ; they confer benefits based on the
antecedent event, and the Mitakshara coparcenary law sh all
be deemed to include a reference to a daughter as a
coparcener. At the same time, the legislature has p rovided
savings by adding a proviso that any disposition or alienation,
if there be any testamentary disposition of the pro perty or
partition which has taken place before 20-12-2004, t he date
on which the Bill was presented in the Rajya Sabha, shall not
be invalidated. ”
(Emphasis supplied)
68. The Court further observed in para 68 as follows:
“68. Considering the principle of coparcenary that a pe rson
is conferred the rights in the Mitakshara coparcenary by birt h,
similarly, the daughter has been recognised and treated as a
coparcener, with equal rights and liabilities as of that of a
son. The expression used in Section 6 is that she b ecomes
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
coparcener in the same manner as a son. By adoption al so,
the status of coparcener can be conferred. The conc ept of
uncodified Hindu law of unobstructed heritage has been gi ven
a concrete shape under the provisions of Sections 6 (1)(a)
and 6(1) (b). Coparcener right is by birth. Thus, it is n ot at all
necessary that the father of the daughter should be liv ing as
on the date of the amendment, as she has not been conferr ed
the rights of a coparcener by obstructed heritage. Accor ding
to the Mitakshara coparcenary Hindu law, as administ ered
which is recognised in Section 6(1), it is not necessa ry that
there should be a living, coparcener or father as on the date
of the amendment to whom the daughter would succeed. The
daughter would step into the coparcenary as that of a son by
taking birth before or after the Act. However, daughter born
before can claim these rights only with effect from the d ate of
the amendment, i.e., 9-9-2005 with saving of past transaction s
as provided in the proviso to Section 6(1) read with Se ction
6(5).” (Emphasis supplied)
69. The Court has further observed in para 69 as under:
“69. … Section 6(1) recognises a joint Hindu family governed
by Mitakshara law. The coparcenary must exist on 9-9- 2005
to enable the daughter of a coparcener to enjoy rig hts
conferred on her. As the right is by birth and not b y dint of
inheritance, it is irrelevant that a coparcener whose daug hter
is conferred with the rights is alive or not. Confe rral is not
based on the death of a father or other coparcener. In ca se
living coparcener dies after 9-9-2005, inheritance i s not by
survivorship but by intestate or testamentary succe ssion as
provided in substituted Section 6(3).” (Emphasis supplied)
70. Explaining sub-section (3) of substituted Section 6, the Court
observed in paragraph 66 as under:
“66. With respect to a Hindu who dies after the commencement
of the Amendment Act, as provided in section 6(3) his intere st
shall pass by testamentary or intestate succession and not by
survivorship, and there is a deemed partition of th e
coparcenary property in order to ascertain the shares whi ch
would have been allotted to his heirs had there bee n a
59
partition. The daughter is to be allotted the same share as a
son; even surviving child of predeceased daughter o r son
are given a share in case the child has also died t hen the
surviving child of such predeceased child of a prede ceased
son or predeceased daughter would be allotted the same share,
had they been alive at the time of deemed partition . Thus,
there is a sea-change in substituted Section 6. In case of dea th
of coparcener after 9-9-2005, succession is not by
survivorship but in accordance with Section 6(3). T he
Explanation to Section 6(3) is the same as Explanation I to
Section 6 as originally enacted. …” (Emphasis supplied)
71. The following propositions, amongst others, follow from the
abovequoted paragraphs of the decision in Vineeta Sharma (supra):
(A) Sub-section (1) of the substituted Section 6 of the Hin du
Succession Act, 1956 recognises a joint Hindu family governed
by Mitakshara law.
(B) The coparcenary must exist on 9.9.2005, i.e., the date of
commencement of the Amendment Act, 2005.
(C) The daughter has been recognised and treated as a coparcener
by birth, with equal rights and liabilities as of that of a son.
(D) It is not necessary that a coparcener whose daugh ter is
conferred with the rights is alive or not on the da te of
commencement of the Amendment Act, 2005. The daughter would
step into the coparcenary as that of a son by birth.
(E) Though the daughter would step into the coparcenary as that
of a son by birth whether the daughter is born befo re the
commencement of the Amendment Act, 2005 or after th e
commencement of the Amendment Act, 2005, but the daughter
born before the commencement of the Amendment Act, 2005
can claim coparcenary rights only with effect from the date of
the amendment, i.e., 9.9.2005 with saving of past transactions as
provided in the proviso to Section 6(1) read with Section 6(5).
(F) In case a coparcener living on the date of commencement of
the Amendment Act, 2005 (i.e., 9.9.2005) dies after 9.9.2005,
inheritance is not by survivorship but by intestate or testamentary
succession as provided in substituted Section 6(3).
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
72. As noted earlier, sub-section (5) of substituted Section 6 of
the Hindu Succession Act, 1956 provides that nothing contained in the
substituted Section 6 shall apply to a partition, which has been effected
before 20th December, 2004 (i.e., date on which the Bill corresponding
to the Amendment Act, 2005 was presented in the Raj ya Sabha).
Explanation to the substituted Section 6 provides that for the purposes of
Section 6 “partition” means (i) any partition made by execut ion of a
deed of partition duly registered under the Registration Act, 1908 (16 of
1908), or (ii) any partition effected by a decree of a court. Interpreting
sub-section (5) of substituted Section 6 and Explanation to substituted
Section 6, the Court in Vineeta Sharma (supra), has observed in para
67 as under:
“67. The proviso to Section 6(1) and Section 6(5) saves any
partition effected before 20-12-2004. However, Expla nation
to Section 6(5) recognises partition effected by exe cution of
a deed of partition duly registered under the Registration A ct,
1908 or by a decree of a court. Other forms of partition have
not been recognised under the definition of “partit ion” in
the Explanation.”
73. In regard to the sub-section (5) of substituted Section 6 and
Explanation to substituted Section 6, the Court held:
(A) It has been held that the daughter has now become entitled to
claim partition of coparcenary with effect from 9.09.2005 like a
son.
The Court observed in para 85 as under:
“85. The right to claim partition is a significant basic featur e
of the coparcenary, and a coparcener is one who can cla im
partition. The daughter has now become entitled to claim
partition of coparcenary w.e.f. 9-9-2005, which is a vital
change brought about by the statute. A coparcener enjoys
the right to seek severance of status. Under Sectio ns 6(1)
and 6(2), the rights of a daughter are pari passu with a so n.
In the eventuality of a partition, apart from sons and
daughters, the wife of the coparcener is also entit led to an
equal share. The right of the wife of a coparcener to claim
her right in property is in no way taken away .”
(Emphasis supplied)
61
(B) As noted earlier, under the law pertaining to partition as existing
prior to the Amendment Act, 2005, if there would be a partition of
coparcenary property between father (F) and sons (S1 and S2)
then the wife (W) of father (F) as well as widowed mother (M)
of father (F) would get one share equal share to that of a son (S1
or S2). This position continues to exist as is evident from t he
observation made in the last portion of the above-quoted paragraph
85 of this Court’s decision. Hence, if there is a pa rtition of
coparcenary property between father and sons (and now also
daughters), then wife of father as well as widowed mother of
father would get one share equal share to that of a son (or a
daughter).
(C) Under Mitakshara School of Hindu Law, a member of a joint
Hindu Family can bring about his separation in status by a definite,
unequivocal and unilateral declaration of his intention to separate
himself from the family and enjoy his share in severalty. Thus, the
institution of a suit for partition by a member of a joint family is a
clear intimation of his intention to separate, and there was
consequential severance of the status of jointness. Question before
this Court in Vineeta Sharma (supra) was: in case during the
pendency of partition suit or during the period between the passing
of preliminary decree and final decree in the partition s uit, any
legislative amendment or any subsequent event takes place which
results in enlargement or diminution of the shares of the parties or
alteration of their rights, whether such legislative amendment or
subsequent event can be into consideration and given effect t o
while passing final decree in the partition suit. The Court held that
even though filing of partition suit brings about severance of status
of jointness, such legislative amendment or subsequent event will
have to be taken into consideration and given effect to in passing
the final decree in the partition suit. This is because, the partition
suit can be regarded as fully and completely decided only when
the final decree is passed. It is by a final decree that parti tion of
property of joint Hindu Family takes place by metes and bounds.
(See: paragraphs 89 to 102, and paragraphs 106, 114, 133 and
136).
The Court observed in para 107 as under:
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
“107. Once the constitution of coparcenary changes by
birth or death, shares have to be worked out at the time of
actual partition. The shares will have to be determined in
changed scenario . The severance of status cannot come
in the way to give effect to statutory provision and change
by subsequent event. The statutory fiction of parti tion is
far short of actual partition, it does not bring about the
disruption of the joint family or that of coparcenar y is a
settled proposition of law. For the reasons mention ed
above, we are also of the opinion that mere severance o f
status by way of filing a suit does not bring about the
partition and till the date of the final decree, ch ange in
law, and changes due to the subsequent event can be taken
into consideration. ” (Emphasis supplied)
(D) Prior to the Amendment Act, 2005, partition in joint Hindu
Family could be made by oral partition or oral family settlement/
family arrangement. If subsequently terms of such oral partition
or oral family settlement/family arrangement could be record ed
in a Memorandum. Such Memorandum was not required to be
registered. [See: paragraphs 115, 116, 119, 120, 121, 125 and 130].
74. As noted above, Explanation to substituted Section 6 provides
that for the purposes of Section 6 “partition” means (i) any partition
made by execution of a deed of partition duly registered unde r the
Registration Act, 1908 (16 of 1908), or (ii) any partition effecte d by a
decree of a court. The Court in further considered the imp act of the
aforesaid Explanation on the oral partition or oral family settlement/family
arrangement made prior to 20th December, 2004. The Court opined in
para 124 as under:
“124. The intendment of amended Section 6 is to ensure that
daughters are not deprived of their rights of obtaining share
on becoming coparcener and claiming a partition of the
coparcenary property by setting up the frivolous def ence of
oral partition and/or recorded in the unregistered
memorandum of partition. The court has to keep in mind the
possibility that a plea of oral partition may be se t up,
fraudulently or in collusion, or based on unregiste red
memorandum of partition which may also be created at any
63
point of time. Such a partition is not recognised under Secti on
6(5). ” (Emphasis supplied)
75. The Court further held para 135 as under:
“135. A special definition of partition has been carved out in
the Explanation. The intendment of the provisions is not to
jeopardise the interest of the daughter and to take care of
sham or frivolous transaction set up in defence unj ustly to
deprive the daughter of her right as coparcener and pre vent
nullifying the benefit flowing from the provisions as
substituted. The statutory provisions made in Secti on 6(5)
change the entire complexion as to partition. However, under
the law that prevailed earlier, an oral partition was recognised.
In view of change of provisions of Section 6, the inten dment
of legislature is clear and such a plea of oral partition is not
to be readily accepted. The provisions of Section 6 (5) are
required to be interpreted to cast a heavy burden o f proof
upon proponent of oral partition before it is accep ted such
as separate occupation of portions, appropriation o f the
income, and consequent entry in the revenue records and
invariably to be supported by other contemporaneous public
documents admissible in evidence, may be accepted m ost
reluctantly while exercising all safeguards. The in tendment
of Section 6 of the Act is only to accept the genuine partiti ons
that might have taken place under the prevailing law , and are
not set up as a false defence and only oral ipse dixit is to be
rejected outrightly. The object of preventing, sett ing up of
false or frivolous defence to set at naught the ben efit
emanating from amended provisions, has to be given full effect.
Otherwise, it would become very easy to deprive the daug hter
of her rights as a coparcener. When such a defence is take n,
the court has to be very extremely careful in accep ting the
same, and only if very cogent, impeccable, and
contemporaneous documentary evidence in shape of pu blic
documents in support are available, such a plea may be
entertained, not otherwise. We reiterate that the ple a of an
oral partition or memorandum of partition, unregistered o ne
can be manufactured at any point in time, without a ny
contemporaneous public document needs rejection at all
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
costs. We say so for exceptionally good cases where par tition
is proved conclusively and we caution the courts th at the
finding is not to be based on the preponderance of
probabilities in view of provisions of gender justic e and the
rigour of very heavy burden of proof which meet intendme nt
of Explanation to Section 6(5). It has to be remembered that
the courts cannot defeat the object of the beneficial provision s
made by the Amendment Act. The exception is carved out b y
us as earlier execution of a registered document for partition
was not necessary, and the court was rarely approached fo r
the sake of family prestige. It was approached as a last resort
when parties were not able to settle their family d ispute
amicably. We take note of the fact that even before 1956,
partition in other modes than envisaged under Section 6(5)
had taken place.” (Emphasis supplied). (Reference: Article titled
‘Changing Dimensions of Hindu Coparcenary and Section 6, Hindu
Succession Act, 1956 by Justice Satya Poot Mehrotra, Former
Judge Allahabad High Court .)
76. The reference was ultimately answered in paras 137.1 to 137.5
resply as under:
“137.1. The provisions contained in substituted Section 6 of
the Hindu Succession Act, 1956 confer status of copa rcener
on the daughter born before or after the amendment in the
same manner as son with same rights and liabilities.
137.2. The rights can be claimed by the daughter born earlier
with effect from 9-9-2005 with savings as provided in Secti on
6(1) as to the disposition or alienation, partition or
testamentary disposition which had taken place befo re the
20th day of December, 2004.
137.3. Since the right in coparcenary is by birth, it is not
necessary that father coparcener should be living as on 9-9-
2005.
137.4. The statutory fiction of partition created by the proviso
to Section 6 of the Hindu Succession Act, 1956 as originally
enacted did not bring about the actual partition or disruption
of coparcenary. The fiction was only for the purpos e of
ascertaining share of deceased coparcener when he w as
65
survived by a female heir, of Class I as specified in the
Schedule to the 1956 Act or male relative of such female. The
provisions of the substituted Section 6 are required to be give n
full effect. Notwithstanding that a preliminary decree has been
passed, the daughters are to be given share in copa rcenary
equal to that of a son in pending proceedings for final decree
or in an appeal.
137.5. In view of the rigour of provisions of the Explanation
to Section 6(5) of the 1956 Act, a plea of oral partition cannot
be accepted as the statutory recognised mode of par tition
effected by a deed of partition duly registered und er the
provisions of the Registration Act, 1908 or effected by a decr ee
of a court. However, in exceptional cases where plea of o ral
partition is supported by public documents and parti tion is
finally evinced in the same manner as if it had been affected
(sic effected) by a decree of a court, it may be ac cepted. A
plea of partition based on oral evidence alone cann ot be
accepted and to be rejected outrightly.”
77. The decision of Vineeta Sharma (supra) also highlights that a
change in law during the pendency of an appeal must be considered and
appropriately applied. This Court relied upon United Bank of India,
Calcutta v. Abhijit Tea Company Private Limited and Others reported
in (2000) 7 SCC 357, wherein, it was held that:
“20. Now, it is well settled that it is the duty of a court, whether
it is trying original proceedings or hearing an appeal, t o take
notice of the change in law affecting pending actions and to
give effect to the same. (See G.P. Singh: Interpret ation of
Statutes, 7th Edn., p. 406.) If, while a suit is pending, a law
like the 1993 Act that the civil court shall not decide the suit ,
is passed, the civil court is bound to take judicial n otice of
the statute and hold that the suit — even after its remand —
cannot be disposed of by it.”
78. This Court in Vineeta Sharma (supra) clarified the entire
position as follows:
“107. Once the constitution of coparcenary changes by birth
or death, shares have to be worked out at the time of actua l
partition. The shares will have to be determined in c hanged
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
scenario. The severance of status cannot come in the way to
give effect to statutory provision and change by sub sequent
event. The statutory fiction of partition is far short of ac tual
partition, it does not bring about the disruption of t he joint
family or that of coparcenary is a settled proposition of law.
For the reasons mentioned above, we are also of the opinion
that mere severance of status by way of filing a suit doe s not
bring about the partition and till the date of the final decree ,
change in law, and changes due to the subsequent event can
be taken into consideration.
Xxx xxx xxx
114. In the instant case, the question is different. Wha t has
been recognised as partition by the legislation under Se ction
6, accordingly, rights are to be worked out. This C ourt
consistently held in various decisions mentioned abov e that
when the rights are subsequently conferred, the preli minary
decree can be amended, and the benefit of law has t o be
conferred. Hence, we have no hesitation to reject t he effect
of statutory fiction of the proviso to Section 6 as discussed
in Prakash v. Phulavati [(2016) 2 SCC 36 : (2016) 1 SCC
(Civ) 549] and Danamma [Danamma v. Amar, (2018) 3 SCC
343 : (2018) 2 SCC (Civ) 385]. If a daughter is alive on the
date of enforcement of the Amendment Act, she becom es a
coparcener with effect from the date of the Amendmen t Act,
irrespective of the date of birth earlier in point of ti me.”
APPLICATION OF THE AFORESAID PRINCIPLES OF
LAW TO THE FACTS OF THE PRESENT CASE
79. Let us assume for the moment that the Trial Court wou ld
have decreed the suit in favour of the plaintiff i.e., the daughter giving
her 1/3 rd share uniformly in all the properties including the ance stral
properties. It could have been argued that the Trial Court could not have
done so, having regard to the position of law, prevailing at the relevant
point of time. However, after the decision of this Court in t he case of
Vineeta Sharma (supra) such allotment of share would be in accordance
with law. Let us also assume one another alternative. Take for instance,
the Trial Court would have decreed the suit giving (i) 1/3 rd share to the
daughter in self-acquired property and (ii) giving 1/3 rd share in the half
67
were of father’s portion of ancestral properties. T his was the law
prevailing at the relevant point of time and this is exactly what the Trial
Court has done in the present case, while passing the preliminary decree
as affirmed by the High Court. However, the law has now c hanged as
discussed above.
80. It is in the aforesaid background that daughters are entitled to
1/3 rd share in all the properties as scheduled in the plaint. The same
would be in accordance with the dictum as laid in Vineeta Sharma
(supra), while passing the final decree. At the cost of rep etition, we
state that by virtue of the preliminary decree passed by the Trial Court,
which was confirmed by the Division Bench of the High Court, the
issues decided therein will be deemed to have become final but as the
partition suit is required to be decided in stages, the same can be regarded
as fully and completely decided only when the final decree is passed. As
the law governing the parties has been amended before the conclusion
of the final decree proceedings, the party benefitted by such amendment
(like the two daughters in the case on hand) can make a reques t to the
Trial Court to take cognizance of the Amendment and give effect to the
same.
81. We do not find any merit in the submissions canvassed by Mr.
Basant, learned Senior Counsel appearing for the Appellants that in a
partition suit, the preliminary decree cannot be varied in the final decree
proceedings, despite the amendment of the law governing the parties.
82. In our opinion, no error not to speak of any error of law could
be said to have been committed upon Courts below, while determining
the shares of the parties. The only thing that needs to be done now is to
give effect to the amendment in the provisions of Section 6 of the 1956
Act and redetermine the shares of the parties accordingly. To put it
straight, the Plaintiff is entitled to 1/3 rd share in all the properties of her
Late father. The issue whether all the properties were ancestral as raised
on behalf of the Appellants pale into insignificance.
ISSUE NO. 2
83. We shall now proceed to answer the issue No. 2 whether the
High Court was justified in allowing the cross-appeal filed by the Original
Defendant No. 2 on the ground that the settlement arrived at be tween
the Appellants (Defendant No 1 and Defendant No. 2) was not val id
and binding under Order XXIII Rule 3 of the CPC.
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
84. Mr. Basant, learned Senior Counsel vehemently submitted
that the settlement between the Defendant No. 1 and his sister i.e., the
Defendant No. 2 was duly signed on affidavit way back on 29.03.1991.
The said settlement was taken on record by the High Court on 9.04.1991
i.e., at the time of the final hearing of the first appeal. The f irst appeal
came to be disposed of on 1.08.2000, modifying the decree to the extent
of incorporating the terms of the compromise agreement bet ween the
two Defendants. It is only after a lapse of ten years tha t during the
pendency of the appeal filed by the Appellants herein before the Division
Bench of the High Court that the Defendant No. 2 thought fit to fil e
cross-appeal, challenging the alleged compromise. Mr. Basant submitted
that such cross-appeal is not maintainable and even if i t held to be
maintainable, the same should not have been entertained and al lowed
after the lapse of almost ten years from the date of recordi ng of the
settlement.
85. We are not much impressed by the aforesaid submissions of
Mr. Basant. It is a settled position of law that right of appe al is the
creature of statute. There is no inherent right of appeal. No appeal can
be filed, heard or determined on merits unless the statute confers right
on the appellant and power on the Court to do so. At this stage, we may
look into the provisions of Order XLI Rule 22 of the CPC:
“22. Upon hearing respondent may object to decree as if he
had preferred a separate appeal.— (1) Any respondent, though
he may not have appealed from any part of the decree , may
not only support the decree [but may also state that the finding
against him in the Court below in respect of any issue ought
to have been in his favour; and may also take any c ross-
objection] to the decree which he could have taken by way
of appeal provided he has filed such objection in the Appe llate
Court within one month from the date of service on him or his
pleader of notice of the day fixed for hearing the appe al, or
within such further time as the Appellate Court may see f it to
allow.
[Explanation.—A respondent aggrieved by a finding o f the
Court in the judgment on which the decree appealed against
is based may, under this rule, file cross-objection in r espect
of the decree in so far as it is based on that find ing,
notwithstanding that by reason of the decision of th e Court
69
on any other finding which is sufficient for the de cision of
the suit, the decree, is, wholly or in part, in fav our of that
respondent.]
(2) Form of objection and provisions applicable thereto .—
Such cross-objection shall be in the form of a memorandum,
and the provisions of rule 1, so far as they relate to th e form
and contents of the memorandum of appeal, shall app ly
thereto.
[3***]
(4) Where, in any case in which any respondent has under
this rule filed a memorandum of objection, the original ap peal
is withdrawn or is dismissed for default, the objection so fi led
may nevertheless be heard and determined after such not ice
to the other parties as the Court thinks fit.
(5) The provisions relating to appeals by indigent persons
shall, so far as they can be made applicable, apply to an
objection under this rule.”
86. The right to prefer cross-objection partakes of the right to
prefer an appeal. The learned counsel appearing for the Defendant No.
2 (Respondent No. 2 herein) that a cross-appeal under Order XLI Rule
22 of the CPC is as effective as a regular first appeal and the same
would sustain, even if, the regular first appeal is dismissed or withdrawn.
A cross-appeal is the exercise of substantive right of appeal and only the
procedure varies. (See: Urmila Devi and Others v. Branch Manager,
National Insurance Company Limited and Another , (2020)11 SCC
316, para 16.)
87. Our attention was also drawn to the provisions of Order XLIII
of Rule 1-A (2) of the CPC. The same reads as under:
“1A. Right to challenge non-appealable orders in app eal
against decrees.—
Xxx xxx xxx
(2) In an appeal against a decree passed in a suit after
recording a compromise or refusing to record a compromise,
it shall be open to the appellant to contest the decree on the
ground that the compromise should, or should not, have been
recorded.”
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
88. We are of the view that the cross-appeal objector is e ntitled
under Order XLI Rule 22 of the CPC read with Order XLIII Rule 1-A
(2) of the CPC as referred to above, to make good the submission that
she was entitled in law to question the legality and validity of the settlement
agreement recorded under Order XXIII Rule 3 of the CPC by way of a
cross-appeal.
89. In the aforesaid context, we may refer to the decision of this
Court in the case of Banwari Lal v. Chando Devi (Smt) and Another
reported in (1993) 1 SCC 581, more particularly, paras 9 to 13 r esply
therein:
“9. Section 96(3) of the Code says that no appeal sh all lie
from a decree passed by the Court with the consent of the
parties. Rule 1-A(2) has been introduced saying that aga inst
a decree passed in a suit after recording a comprom ise, it
shall be open to the appellant to contest the decree on the
ground that the compromise should not have been record ed.
When Section 96(3) bars an appeal against decree pa ssed
with the consent of parties, it implies that such decree is valid
and binding on the parties unless set aside by the procedure
prescribed or available to the parties. One such re medy
available was by filing the appeal under Order 43, Rule 1(m ).
If the order recording the compromise was set aside , there
was no necessity or occasion to file an appeal agai nst the
decree. Similarly a suit used to be filed for setting asi de such
decree on the ground that the decree is based on an inval id
and illegal compromise not binding on the plaintiff of the
second suit. But after the amendments which have be en
introduced, neither an appeal against the order rec ording
the compromise nor remedy by way of filing a suit is available
in cases covered by Rule 3-A of Order 23. As such a right ha s
been given under Rule 1-A(2) of Order 43 to a party , who
challenges the recording of the compromise, to questio n the
validity thereof while preferring an appeal against the decree.
Section 96(3) of the Code shall not be a bar to such an appeal
because Section 96(3) is applicable to cases where the factum
of compromise or agreement is not in dispute.
10. The learned counsel appearing for the respondent took a
stand that the High Court was justified in taking t he view
71
that the suit had been simply withdrawn by the plai ntiff-
appellant under Rule 1 of Order 23 and it had not b een
compromised in terms of Rule 3 of the said Order 23; as such
there was no occasion for the appellant to file an applicat ion
for recall of the said order and for restoration of the suit in
question for being heard on merit. From the copy of the petition
which was filed on February 27, 1991 it appears tha t the
terms and conditions of settlement and agreement had been
mentioned saying that both parties had entered into a
compromise because of which the plaintiff-appellant had
thereafter no connection with the disputed land and
defendant-respondent shall be deemed to be in posse ssion
and the owner of the said disputed land. The prayer made in
the said petition also says that the compromise may be ordered
to be accepted. On basis of that petition, as already mentione d
above, the court passed an order saying that the compromise
had been accepted. In the order it has been mentioned that
the suit of the plaintiff be “dismissed as per compromise deed
Ex. C”. In view of the aforesaid facts and circumstances, it is
difficult to hold that by order dated February 27, 19 91 the
Court allowed the suit to be withdrawn in terms of Rule 1 of
Order 23. The order on face of it purported to dismiss the sui t
of the plaintiff on basis of the terms and conditions mentione d
in the petition of compromise. As such, the validit y of that
order has to be judged treating it to be an order dee med to
have been passed in purported exercise of the power conf erred
on the Court by Rule 3 of Order 23 of the Code. The learned
Subordinate Judge should not have accepted the said petition
of compromise even if he had no knowledge of the fr aud
alleged to have been practised on the appellant by his counsel ,
because admittedly the petition of compromise had not be en
signed either by the respondent or his counsel. This fact should
have been discovered by the Court. In the case of Gurp reet
Singh v. Chatur Bhuj Goel [(1988) 1 SCC 270 : AIR 1988 SC
400] it has been said: (SCC p. 276, para 10)
“Under Rule 3 as it now stands, when a claim in sui t has
been adjusted wholly or in part by any lawful agreemen t or
compromise, the compromise must be in writing and si gned
by the parties and there must be a completed agreem ent
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
between them. To constitute an adjustment, the agreement or
compromise must itself be capable of being embodied in a
decree. When the parties enter into a compromise during the
hearing of a suit or appeal, there is no reason why the
requirement that the compromise should be reduced in writing
in the form of an instrument signed by the parties shoul d be
dispensed with. The court must therefore insist upon the parties
to reduce the terms into writing .”
The requirement of the petition of compromise being si gned
by the parties concerned has been considered also in the case
of Byram Pestonji Gariwala v. Union Bank of India [(1992 )
1 SCC 31 : AIR 1991 SC 2234] . It appears the attention of
learned Judges was not drawn to the aforesaid case of this
Court in Gurpreet Singh v. Chatur Bhuj Goel [(1988) 1 SCC
270 : AIR 1988 SC 400].
11. The present case depicts as to how on February 27, 1991
the court recorded the alleged agreement and compromise in
a casual manner. It need not be impressed that Rule 3 of Order
23 does not require just a seal of approval from the Court to
an alleged agreement or compromise said to have bee n
entered into between the parties. The statute requires the Court
to be first satisfied that the agreement or compromise which
has been entered into between the parties is lawful , before
accepting the same. Court is expected to apply its judicial
mind while examining the terms of the settlement bef ore the
suit is disposed of in terms of the agreement arrived at betw een
the parties. It need not be pointed out that once such a petition
of compromise is accepted, it becomes the order of the Cour t
and acquires the sanctity of a judicial order.
12. On behalf of the respondent a stand was taken tha t the
learned Subordinate Judge by his order dated September 20,
1991 could not have recalled the order dated Februa ry 27,
1991 and restored the suit to its original number. It cannot be
disputed that the respondent can support the order of the
High Court setting aside order dated September 20, 1991 on
any other reason than the reason given by the High Court.
13. When the amending Act introduced a proviso along with
an explanation to Rule 3 of Order 23 saying that where it is
73
alleged by one party and denied by the other that a n
adjustment or satisfaction has been arrived at, “th e Court
shall decide the question”, the Court before which a petition
of compromise is filed and which has recorded such
compromise, has to decide the question whether an adjustment
or satisfaction had been arrived at on basis of any lawful
agreement. To make the enquiry in respect of validity of the
agreement or the compromise more comprehensive, the
explanation to the proviso says that an agreement o r
compromise “which is void or voidable under the Ind ian
Contract Act …” shall not be deemed to be lawful within the
meaning of the said Rule. In view of the proviso read with the
explanation, a Court which had entertained the peti tion of
compromise has to examine whether the compromise was vo id
or voidable under the Indian Contract Act. Even Rule 1(m) of
Order 43 has been deleted under which an appeal was
maintainable against an order recording a compromise. As
such a party challenging a compromise can file a pe tition
under proviso to Rule 3 of Order 23, or an appeal u nder
Section 96(1) of the Code, in which he can now question the
validity of the compromise in view of Rule 1-A of Order 43 of
the Code.” (Emphasis supplied)
90. We may also refer to and rely upon the decision of this Court
in the case Vipan Aggarwal and Another v. Raman Gandotra and
Othe rs reported in 2022 SCCOnLine SC 1357 more particularly paras 4
and 5 resply therein:
“4. This Court in a judgment reported in ‘Banwari L al v.
Chando Devi (Smt.) (Through LRS.)’ (1993) 1 SCC 581 held
the question as to whether an aggrieved person against the
compromise decree has a right to file an applicatio n before
the Court which granted the decree or an appeal in terms of
Order 43 Rule 1A of the Civil Procedure Code, 1908 (for
short, ‘the CPC’). It was held as under:—
“13. When the amending Act introduced a proviso along
with an explanation to Rule 3 of Order 23 saying that where
it is alleged by one party and denied by the other that an
adjustment or satisfaction has been arrived at, “the Court
shall decide the question”, the Court before which a
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
petition of compromise is filed and which has recorded such
compromise, has to decide the question whether an
adjustment or satisfaction had been arrived at on basis of
any lawful agreement. To make the enquiry in respect o f
validity of the agreement or the compromise more
comprehensive, the explanation to the proviso says that
an agreement or compromise “which is void or voidabl e
under the Indian Contract Act…” shall not be deemed to
be lawful within the meaning of the said Rule. In view of
the proviso read with the explanation, a Court which had
entertained the petition of compromise has to exami ne
whether the compromise was void or voidable under th e
Indian Contract Act . Even Rule 1(m) of Order 43 has been
deleted under which an appeal was maintainable against
an order recording a compromise. As such a party
challenging a compromise can file a petition under proviso
to Rule 3 of Order 23, or an appeal under Section 96(1)
of the Code, in which he can now question the validity of
the compromise in view of Rule 1-A of Order 43 of t he
Code.”
5. The appellants had thus the right to avail either the remedy
of appeal in terms of Order 43 Rule 1A CPC or by way of an
application before the court granting decree. Therefo re, the
application filed by the appellants before the Cour t which
granted the decree cannot be said to be without jurisdiction. ”
(Emphasis supplied)
91. Thus, in view of the aforesaid discussion, we hold that the
cross-appeal filed by the Original Defendant No. 2, questioning the legality
and validity of the settlement was maintainable in law.
92. We shall now look into the circumstances, as highlighted by
the learned Senior Counsel appearing for the Defendant No. 2, rendering
the settlement agreement dated 28.03.1991 invalid and not binding under
Order XXIII Rule 3 of the CPC:
“First, the alleged compromise agreement has admittedly not
been signed by the plaintiff who concededly has a sh are in
the property as a coparcener. A written consent of all pa rties
is necessary.
75
Secondly, a coparcenary undivided property in specie (Plot
No. 140) has been allotted to Defendant 2 by Defendant No.
1 over which the plaintiff also has an interest.
Thirdly, there is variance between the agreement an d the
compromise petition producing the agreement.
The Variance noted is as follows-
(a) The compromise petition takes in consideration yet anot her
property already purchased by Defendant No. 2 by her o wn
income (Schedule B property) which was not a part o f
compromise agreement.
(b) The sketch map appended to the petition shows pl ot no.
1086 and 1085 which for part of plot No. 141 instead of plot
no. 140 mentioned in clause 3 of compromise agreement, and
does not indicate any consensus ad idem, therefore, the
execution of the compromise agreement becomes
unenforceable.
(c) The species of suit property, which was given/provid ed to
Defendant no.2 in clause 3 (page 141) of agreement was
changed to will be allotted to her in final decree proceedin g.
(d) The payment of Rs. 12000 which was to be deposit ed to
court without any caveat in agreement (See para 4 @ 141)
was made subject to further orders of the Court in the petit ion.
(e) There is no express mentioning about the mesne profits in
agreement whereas a definite clause was inserted in the
compromise petition.
(f) The easement rights to property of Defendant No. 2 were
recognised in agreement and later in petition was alter ed to
that Defendant No. 2 along with others have to file and take
steps to easement rights for which the Defendant 1 shall no t
object.
(h) The agreement provided that the defendant no. 2 shall
sign the compromise petition which was later altered to signing
and swearing the affidavit in compromise petition.
Fourthly, the judgment dated 01.08.2000 of the first appellate
court accepting the compromise does not make allotment of
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
the property allotted in specie to the Defendant No . 2. The
first appellate court has proceeded on the wrong premise that
the Defendant No. 2 has surrendered her rights to t he
Defendant No. 1. The first appellate court was further wrong
in specifically noting that the compromise agreement does not
cause any prejudice to the rights of the plaintiff and there fore
can be given effect.
Fifthly, the compromise agreement was entered into by
beckoning a smaller share to the Defendant No. 2, while she
has a larger share in view of Vineeta Sharma (supra) . The
consideration for the alleged compromise/settlement was
therefore inadequate and whole agreement has to fall to the
ground due to changed and supervening circumstances
effectuated by change in law.
Lastly, even otherwise, the allotment of a co-owner ship
property in a specie to one coparcener cannot be modified i n
a preliminary decree. Moreover, under Hindu Law, the gift/
renunciation/relinquishment or alienation by one coparc ener
of his undivided coparcenary interest to another coparc ener
without consent of other coparceners is void.”
93. It is now well settled that under Order XXIII Rule 3 of the
CPC as it now stands, when a claim in suit has been adjusted wholly or
in part by any lawful agreement or compromise, the compromise must
be in writing and signed by the parties and there must be a completed
agreement between them. To constitute an adjustment, the agr eement
or compromise must itself be capable of being embodied i n a decree.
(See: Gurpreet Singh v. Chatur Bhuj Goel, (1988) 1 SCC 270.)
94. Indisputably, in the case on hand, the plaintiff has not put her
signature on the deed of settlement, which was produced before t he
High Court in first appeal. The Plaintiff has made herself very clear that
she never joined in the settlement between her brother i.e., the Defendant
No. 1 and her sister i.e., the Defendant No. 2. On this ground alone, the
settlement could be said to be unlawful, being without any written consent
of all the parties. In a suit for partition of joint proper ty, a decree by
consent amongst some only of the parties cannot be maintained.
95. In Nityamoni Dasi v. Gokul Chandra Sen reported in (1911)
9 Ind Cas 210 (Cal), the Calcutta High Court observed:
77
“… The decree of the Subordinate Judge must be set aside
and the whole case retried, because as this is a suit for partition
of joint property, a decree by consent amongst some o nly of
the parties cannot possibly be maintained…..”
96. In Vir Singh and Others v. Kharak Singh and Others
reported in AIR 1925 Lah 280, all the proprietors had not assented to the
compromise, Moti Sagar, J. observed:—
“…the alleged compromise not having been assented t o by
all the proprietors was clearly contrary to law and the Cour t
was, therefore, fully justified in refusing to enfor ce it. …”
97. In Taraprasanna Sarkar and Another v. Kalikamohan
Sarkarand Others reported in AIR 1924 Cal 80 Mookerjee and Rankin,
JJ., held:—
“…There can be no compromise binding upon, all the parti es
to a partition suit until and unless all the parties have joi ned
in the compromise:…”
98. In the aforesaid context, we shall also now look into the findings
recorded by the Division Bench of the High Court while all owing the
cross-appeal filed by the Defendant No. 2. We quote the relevant
observations as under:
“The appeal was filed by defendant no. 1 before this Court.
In this Appeal challenging the correctness of the decis ion of
the learned Single Judge in F.A. No. 359/96 on the b asis of
the compromise petition dated 28.3.1991, which is fli ed and
accepted by him is not signed by defendant no.2 and the same
is signed by her advocate and not signed by the plaintiff and
her counsel. Therefore, it is urged that the same is not l egal
compromise as provided under Order 23, Rule 3, CPC a nd
on behalf of defendant no.2 her advocate could not have
signed the compromise petition as she has not executed speci al
‘vakalatnama’ giving the authorization in favour of her lawyer
to compromise the matter between defendant no.1 and 2 In
the First Appeal. Therefore, First Appellate Judge should not
have received the compromise petition and accepted the sam e.
The acceptance of the compromise petition by the le arned
Single Judge should have entered between the partie s
including the plaintiff. In support of the said legal cont ention,
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
reliance is placed by the learned counsel on behalf of
defendant no.2 on the decisions of the apex Court in Ramasrey
& Puspa Devi (supra). The compromise petition is in variance
to the schedule properties of the suit and, therefo re, it is
voidable. The compromise was neither recorded by the first
appellate court at the time-of filing compromise pet ition in
writing, nor the parties were present in the court nor signed
the petition in court. Therefore, the alleged compromise cannot
be termed as compromise between the parties in relat ion to
the subject matter covered therein as the same is ill egal for
the reason that it is opposed to Order 23, Rule 3, CPC. Hence
the learned Single Judge could not have accepted the same.
In support of this contention, learned Single Judge had right ly
placed reliance upon the decisions of the Hon’ble Su preme
Court In the case of Gurpreet Singh v. Chatur Bhuj Goel,
AIR 1988 SC 400; and of this Court in the case of Sa nyasi
Jena and others v. Mina Jena and others, AIR 1984 Ori ssa
213. Further the reliance placed by the learned couns el for
the defendant no.1 upon the judgment of Puspa Devi (supra )
is distinguished by defendant no.2 counsel stating that
compromise petition is being typed in English. Furt her the
same is not signed by defendantno.2. Defendant no.1 with a
view to deprive allotment of share assigned in favo ur of
defendant no.2 by the trial court in respect of the suit schedul e
properties in the absence of signing the compromise pet ition
by defendant no.2 and there is no special ‘vakalatn ama’
executed in favour of her lawyer, the said compromise petiti on
is unlawful and the same could not have been accept ed by
the first appellate court In the Impugned judgment and
modified the trial court judgment. Therefore, the c ross-
objection/appeal filed by defendant no.2 has to be allowed
by setting aside the compromise recorded by the first appel late
court In the Impugned judgment by modifying trial c ourt
judgment in relation to the share of the defendant no.2 allotted
in respect of the suit schedule properties. Having set aside
the said compromise, as recorded in the impugned judg ment
of the First Appellate Court, the trial court judgm ent is
restored with regard to the share assigned by him in favour in
of defendant no.2 In respect of suit schedule prope rties.
79
Accordingly the cross-objection of the second defen dant is
allowed by answering the aforesaid point no.(iii) i n her
favour .”
(Emphasis supplied)
99. We are in complete agreement with the aforesaid findin gs
recorded by the High Court in its impugned judgment and order while
allowing the cross-appeal.
100. The third question that arises for our consideration in context
with the legality and validity of the settlement is whet her the learned
advocate appearing for the cross-objector i.e., Defendant No. 2 c ould
have signed the compromise petition without an express consent. It is an
imperative duty of the Court to ascertain the genuineness and lawfulness
of the compromise deed. Indisputably, in the case on hand, the First
Appellate Court had neither recorded the statements of the p arties in
the Court nor had made any inquiry into the terms of the settlement. It is
in such circumstances that the High Court in its impugned order has
observed that the Compromise Petition was signed by the ad vocate
without any express authority or without special vakalatnama executed
in favour of the advocate. In fact, the authority was expressly curtailed
in the compromise deed.
101. In the aforesaid context, we may refer to the decision of this
Court in the case of Himalayan Cooperative Group Housing Society
v. Balwan Singh and Others reported in (2015) 7 SCC 373, more
particularly, paras 22 to 33, which read thus:
“22. Apart from the above, in our view lawyers are perceived
to be their client’s agents. The law of agency may not st rictly
apply to the client-lawyer’s relationship as lawyers or age nts,
lawyers have certain authority and certain duties. Because
lawyers are also fiduciaries, their duties will somet imes be
more demanding than those imposed on other agents. The
authority-agency status affords the lawyers to act for t he client
on the subject-matter of the retainer. One of the mos t basic
principles of the lawyer-client relationship is that lawye rs owe
fiduciary duties to their clients. As part of those duties, lawyers
assume all the traditional duties that agents owe t o their
principals and, thus, have to respect the client’s autonomy to
make decisions at a minimum, as to the objectives o f the
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
representation. Thus, according to generally accepted notion s
of professional responsibility, lawyers should foll ow the
client’s instructions rather than substitute their judg ment for
that of the client. The law is now well settled that a lawyer
must be specifically authorised to settle and compr omise a
claim, that merely on the basis of his employment he ha s no
implied or ostensible authority to bind his client to a
compromise/settlement. To put it alternatively that a lawyer
by virtue of retention, has the authority to choose the m eans
for achieving the client’s legal goal, while the client has the
right to decide on what the goal will be. If the dec ision in
question falls within those that clearly belong to t he client,
the lawyer’s conduct in failing to consult the clie nt or in
making the decision for the client, is more likely to con stitute
ineffective assistance of counsel.
23. The Bar Council of India Rules, 1975 (for short “the BCI
Rules”), in Part VI Chapter II provide for the “Standards of
Professional Conduct and Etiquette” to be observed by all
the advocates under the Advocates Act, 1961 (for short “ the
1961 Act”). In the Preamble to Chapter II, the BCI Rules
provide as follows:
“An advocate shall, at all times, comport himself i n a
manner befitting his status as an officer of the Co urt, a
privileged member of the community, and a gentleman ,
bearing in mind that what may be lawful and moral for a
person who is not a member of the Bar, or for a member of
the Bar in his non-professional capacity may still be
improper for an advocate. Without prejudice to the
generality of the foregoing obligation, an advocate s hall
fearlessly uphold the interests of his client and i n his
conduct conform to the rules hereinafter mentioned bo th
in letter and in spirit. The rules hereinafter ment ioned
contain canons of conduct and etiquette adopted as
general guides; yet the specific mention thereof shal l not
be construed as a denial of the existence of others equall y
imperative though not specifically mentioned.”
24. The Preamble makes it imperative that an advocate has
to conduct himself and his duties in an extremely responsible
81
manner. They must bear in mind that what may be appropriate
and lawful for a person who is not a member of the Bar, or
for a member of the Bar in his non-professional cap acity,
may be improper for an advocate in his professional capacity.
25. Section II of the said Chapter II provides for duties of an
advocate towards his client. Rules 15 and 19 of the BCI Rules,
have relevance to the subject-matter and therefore, th ey are
extracted below:
“15. It shall be the duty of an advocate fearlessly to uphold
the interests of his client by all fair and honourable means
without regard to any unpleasant consequences to himself
or any other. He shall defend a person accused of a crime
regardless of his personal opinion as to the guilt of the
accused, bearing in mind that his loyalty is to the law which
requires that no man should be convicted without adequate
evidence.
***
19. An advocate shall not act on the instructions of a ny
person other than his client or his authorised agent.”
26. While Rule 15 mandates that the advocate must upho ld
the interest of his clients by fair and honourable means without
regard to any unpleasant consequences to himself or any other.
Rule 19 prescribes that an advocate shall only act on the
instructions of his client or his authorised agent. Further , the
BCI Rules in Chapter I of the said Section II provide t hat the
Senior Advocates in the matter of their practice of the
profession of law mentioned in Section 30 of the 19 61 Act
would be subject to certain restrictions. One of su ch
restrictions contained in clause (cc) reads as under:
“(cc) A Senior Advocate shall, however, be free to make
concessions or give undertaking in the course of arguments
on behalf of his clients on instructions from the j unior
advocate.”
27. Further, the “Code of Ethics” prescribed by the Ba r
Council of India, in recognition of the evolution i n
professional and ethical standards within the legal community,
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
provides for certain rules which contain canons of conduct
and etiquette which ought to serve as general guide to the
practice and profession. Chapter III of the said Code provide s
for an “Advocate’s duty to the client”. Rule 26 the reunder
mandates that an “advocate shall not make any compromi se
or concession without the proper and specific instructions of
his/her client”. It is pertinent to notice that an advocate unde r
the Code expressly includes a group of advocates and a l aw
firm whose partner or associate acts for the client.
28. Therefore, the BCI Rules make it necessary that desp ite
the specific legal stream of practice, seniority at t he Bar or
designation of an advocate as a Senior Advocate, the ethical
duty and the professional standards insofar as maki ng
concessions before the Court remain the same. It is expected
of the lawyers to obtain necessary instructions from the cl ients
or the authorised agent before making any concessio n/
statement before the court for and on behalf of the cli ent.
29. While the BCI Rules and the Act, do not draw any exception
to the necessity of an advocate obtaining instructio ns before
making any concession on behalf of the client before the c ourt,
this Court in Periyar & Pareekanni Rubber Ltd. v. S tate of
Kerala [(1991) 4 SCC 195] has noticed the sui generis status
and the position of responsibility enjoyed by the A dvocate
General in regard to the statements made by him before th e
courts. The said observation is as under: (SCC p. 209, para
19)
“19. … Any concession made by the Government Pleader
in the trial court cannot bind the Government as it is
obviously, always, unsafe to rely on the wrong or erroneous
or wanton concession made by the counsel appearing for
the State unless it is in writing on instructions f rom the
responsible officer. Otherwise it would place undue and
needless heavy burden on the public exchequer. But the
same yardstick cannot be applied when the Advocate
General has made a statement across the Bar since t he
Advocate General makes the statement with all
responsibility.”
83
(See: Joginder Singh Wasu v. State of Punjab [(1994 ) 1
SCC 184] .)
30. The Privy Council in Sourendra Nath Mitra v. Tarub ala
Dasi [(1929-30) 57 IA 133 : (1930) 31 LW 803 : AIR 1 930
PC 158] , has made the following two observations w hich
hold relevance to the present discussion: (IA pp. 140-41)
“Two observations may be added. First, the implied authority
of counsel is not an appendage of office, a dignity adde d by
the courts to the status of barrister or advocate at law. It is
implied in the interests of the client, to give the fullest
beneficial effect to his employment of the advocate. Secondly ,
the implied authority can always be countermanded b y the
express directions of the client. No advocate has a ctual
authority to settle a case against the express instru ctions of
his client. If he considers such express instructions c ontrary
to the interests of his client, his remedy is to return hi s brief.”
(See: Jamilabai Abdul Kadar v. Shankarlal Gulabchan d
[(1975) 2 SCC 609] and Svenska Handelsbanken v. Ind ian
Charge Chrome Ltd. [(1994) 2 SCC 155] )
31. Therefore, it is the solemn duty of an advocate no t to
transgress the authority conferred on him by the client. It is
always better to seek appropriate instructions from the client
or his authorised agent before making any concession which
may, directly or remotely, affect the rightful legal rig ht of the
client. The advocate represents the client before the court and
conducts proceedings on behalf of the client. He is t he only
link between the court and the client. Therefore hi s
responsibility is onerous. He is expected to follow the
instructions of his client rather than substitute his jud gment.
32. Generally, admissions of fact made by a counsel ar e
binding upon their principals as long as they are unequivocal;
where, however, doubt exists as to a purported admi ssion,
the court should be wary to accept such admissions until and
unless the counsel or the advocate is authorised by his
principal to make such admissions. Furthermore, a cli ent is
not bound by a statement or admission which he or his lawyer
was not authorised to make. A lawyer generally has no implied
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
or apparent authority to make an admission or state ment
which would directly surrender or conclude the subs tantial
legal rights of the client unless such an admission or state ment
is clearly a proper step in accomplishing the purpo se for
which the lawyer was employed. We hasten to add neither the
client nor the court is bound by the lawyer’s state ments or
admissions as to matters of law or legal conclusions. Thus,
according to generally accepted notions of professi onal
responsibility, lawyers should follow the client’s in structions
rather than substitute their judgment for that of the client. We
may add that in some cases, lawyers can make decisi ons
without consulting the client. While in others, the decis ion is
reserved for the client. It is often said that the lawyer can
make decisions as to tactics without consulting the client, while
the client has a right to make decisions that can a ffect his
rights.
33. We do not intend to prolong this discussion. We ma y
conclude by noticing a famous statement of Lord Brougham:
“an advocate, in the discharge of his duty knows but one
person in the world and that person is his client”. [ Ed.:
The statement was made by Mr Henry Brougham, as His
Lordship then was, while defending Queen Caroline in the
House of Lords. See The Whole Proceedings on The Trial
of Her Majesty, Caroline Amelia Elizabeth, Queen of
England, for “Adulterous Intercourse” with Bartolom eo
Bergami, Vol. II, p. 2 containing Her Majesty’s Defe nce,
printed and published by John Fairburn, Broadway,
Ludgate Hill (1820).]”
(Emphasis supplied)
102. We also refer to the decision of this Court in the case of
Byram Pestonji Gariwala (supra), more particularly, the observations
made in para 37, which read thus:
“37. We may, however, hasten to add that it will be prudent
for counsel not to act on implied authority except when
warranted by the exigency of circumstances demandin g
immediate adjustment of suit by agreement or compromise and
the signature of the party cannot be obtained without undue
85
delay. In these days of easier and quicker communic ation,
such contingency may seldom arise. A wise and caref ul
counsel will no doubt arm himself in advance with t he
necessary authority expressed in writing to meet al l such
contingencies in order that neither his authority nor integrity
is ever doubted. This essential precaution will safe guard the
personal reputation of counsel as well as uphold the prest ige
and dignity of the legal profession .”
(Emphasis supplied)
103. Almost six decades back, the Madras High Court speaking
through Justice Ramaswami (as His Lordship then was) in the c ase of
Govindammal v. Marimuthu Maistry and Others reported in AIR
1959 Mad 7 had sounded the note of caution observing as under:
“5. … The decisions appear to be fairly clear that ev en in
cases where there is no express authorization to enter i nto a
compromise, under the inherent authority impliedly g iven to
the Vakil he has power to enter into the compromise on behalf
of his client. But in the present state of the clie ntele world
and the position in which the Bar now finds itself and in the
face of divided judicial authority and absence of s tatutory
backing prudence dictates that unless express power is gi ven
in the vakalatnama itself to enter into compromise, in
accordance with the general practice obtaining a sp ecial
vakalatnama should be filed or the specific consent of the
party to enter into the compromise should be obtained. If an
endorsement is made on the plaint etc., it would be better to
get the signature or the thumb impression of the party affixe d
thereto, making it evident that the party is aware of w hat is
being done by the Vakil on his or her behalf.”
104. Thus, in view of the aforesaid discussion, we hold that the
High Court committed no error in holding that the settlement between
the Defendant Nos. 1 and 2 resply was unlawful.
OUR FINAL CONCLUSIONS
105. We may draw our final conclusions as under:
(i) The preliminary decree drawn by the Trial Court as affirmed
by the High Court is modified to the extent that the daughters
PRASANTA KUMAR SAHOO & ORS. v. CHARULATA SAHU
& ORS. [J. B. PARDIWALA, J.]
are entitled to 1/3 rd share in all the properties scheduled in
the plaint i.e., ancestral and self-acquired properties of Late
Shri Kumar Sahoo. The Trial Court shall modify the decree
accordingly.
(ii) As we have held that the settlement between the Original
Defendant Nos. 1 and 2 resply was not in accordance with
law, the Appellants herein will not be entitled to the share
of the Original Defendant No. 2.
(iii) The Appellants shall be entitled to only their 1/3 rd share in
the suit properties.
(iv) Since the Defendant No. 1 was appointed as receiver, the
Appellants shall now furnish accounts before the Trial Court.
106. With the aforesaid clarifications, both the Appeals fail and
are hereby dismissed.
107. This litigation by now is almost four decades old. The Original
Plaintiff as on date is almost 85 years of age. In such circumstances, the
Trial Court shall draw the final decree within a period of three months
from the date of receipt of the certified copy of this judgment and order.
108. Parties to bear their own costs.
109. Pending applications, if any, also stand disposed of.
Divya Pandey Appeals dismissed.
(Assisted by : Shevali Monga, LCRA)