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Supreme Court of India

GANESH (D) BY LRS. & ORS.versusASHOK & ANR.

Citation
2011 INSC 258
Decided
4 April 2011
Disposal
Appeal(s) allowed

Holding

A family settlement is not a transfer of property and the High Court cannot disturb the factual findings of the first appellate court in a second appeal, so the first appellate court's judgment is restored.

Summary

The plaintiffs, minor sons of a pre‑deceased son, filed a suit seeking to declare a 1978 decree that transferred agricultural land to other family members null and void, asserting their right to inherit the land as ancestral property. The defendants contended that the land was not ancestral and had been allotted to them through a bona‑fide family settlement, which is not a transfer of property. The trial court held the land to be ancestral and set aside the decree; the first appellate court reversed, finding the land non‑ancestral and upholding the family settlement; the High Court in a second appeal restored the trial court’s decision. The Supreme Court held that a family settlement does not constitute a transfer of property and that, under CPC s.100, a second‑appeal court cannot disturb the factual findings of the first appellate court. Consequently, the High Court’s judgment was set aside and the first appellate court’s decision restored, allowing the appeal.

Issues considered

  • Whether a family settlement amounts to a transfer of property for the purposes of a second appeal under CPC s.100.
  • Whether the High Court can interfere with the factual findings of the first appellate court in a second appeal.
  • Whether the suit land is ancestral property subject to agricultural custom prohibiting alienation.

Legislation cited

Subjects

family settlementsecond appealCPC s.100factual findingsancestral propertytransfer of propertyagricultural custom

Judgment

                    [2011] 4 S.C.R. 215

              GANESH (D) ~y LRS. & ORS.                         A
                              v.
                       ASHOK & ANR.
             (Civil Appeal No(s). 5514 of 2005)
                       APRIL 4, 2011
                                                                 B
[MARKANDEY KATJU AND GYAN SUD HA MISRA, JJ.]

    PARTITION:
     Family settlement - Land gifted to sons of pre- deceased   c
son of the tenure-holder- Later, by way of a family settlement
other agricultural lands settled amongst other heirs - Decree
in a civil suit passed in terms of the settlement - Subsequent
suit by sons of the deceased son for declaration of decree in
earlier suit as null and void - Held: Lands with the tenure- 0
holder were not ancestral property :-- A family settlement is not
a transfer of property - The first appellate court rightly held
that the family settlement was bona fide to avoid dispute in
the family :-- High Court, in second appeal, was not justified
in setting aside the finding of fact recorded by the first E
appellate court, which was the last court of facts - Judgment
of High Court set aside and that of first appellate court
restored - Code of Civil Procedure, 1908 - s. 100 - Second
appeal - Scope of- Transfer of property- Family settlement,
not transfer of property.
                                                                  F
     The plaintiffs-respondents, who were the sons of the
pre-deceased son of defendant no. 1, while they were
minors, filed a suit through their mother for declaration
that the decree passed in Civil Suit No. 476 of 1978 be
declared as null and void and a declaration be made that G
the plaintiffs had a right to inherit the suit land on the
death of defendant No. 1 and in the alternative for
declaration that the alienation of the suit land made by
defendant no. 1 In favour of defendants nos. 2 to 5 by the
                               215                                H
     216       SUPREME COURT REPORTS         [2011] 4 S.C.R.


A judgment and decree in the said suit was null and void.
  The defendants contested the suit contending that the
  plaintiffs had already been gifted certain agricultural
  lands; and in order to avoid dispute in the family,
  defendants nos. 2 to 5 were given the lands under a
B family settlement. The trial court decreed the suit, but the
  first appellate court dismissed the suit. However, the High
  Court, in second appeal, reversed the judgment of the
  first appellate court. Aggrieved, the defendants filed the
  appeal.
c          Allowing the appeal, the Court

       HELD: 1.1. The judgment of the High Court cannot
  be sustained. It is well settled that the High Court in
  second appeal cannot interfere with the findings of fact
D of the first appellate court. The first appellate court held
  that the land with the tenure-holder was not the ancestral
  property and there was no proof that the land descended
  from his father. [para 12-13] [220-D-F]

E      1.2. A family settlement is not a transfer of property,
  as rightly held by the first appellate court. The first
  appellate court held that the family settlement was bona
  fide to avoid disputes in the family. The decree in Civil
  Suit No. 476 of 1978 was only in pursuance of that family
  settlement and, therefore, it could not be interfered with.
F A perusal of the judgment of the first appellate court
  which was the last court of facts indicates that the
  findings of fact given by it are based on relevant
  evidence. Therefore, the High Court was not justified in
  interfering with those findings. [para 14-15] [220-G-H; 221-
G A-B]

          1.3. The impugned judgment and order of the High
     Court is set aside and that of the first appellate court
    ~~restored. [para 16] [221-C]
H
  GANESH (D) BY LRS. & ORS. v. ASHOK & ANR.                217


    Kale & Ors. vs. Deputy Director of Consolidation 1976          A
(2) SCR 202 =AIR 1976 SC 807 - cited

                      Case Law Reference:

    1976 (2) SCR 202           Cited                 Para 11
                                                                   B
    CIVIL APPELLATE JURISDICTION : Civil Appeal No.
5514 of 2005.

    From the Judgment & Order dated 29.3.2005 of the High
Court of Punjab & Haryana at Chandigarh in Regular Second          C
Appeal No. 476 of 1984.

   Ajay Majithia, R.S. Ahuja, Rajesh Kumar, Dr. Kailash
Chand for the Appellants.

     Shivaji M. Jadhav for the Respondents.
                                                                   D
    The Judgment of the Court was delivered by

    MARKANDEY KATJU, J. 1. This appeal has been filed
against the judgment and order dated 29.3.2005 of the Punjab
& Haryana High Court at Chandigarh in Regular Second               E
Appeal No. 476 of 1984.

    2. Heard learned counsel for the parties and perused the
record.

      3. The respondents herein filed a Civil Suit being No. 58    FI
of 1980 with a prayer that the judgment and decree passed in
Civil Suit No. 476of1978 titled Jagbir and others vs. Ganeshi
and others dated 27.10.1978 relating to the suit land be
declared null and void and a declaration be given that the
plaintiffs have a right to inherit the suit land on the death of   G
defendant No. 1 and in the alternative for declaration that the
alienation of the suit land made by defendant No. 1 in favour
of defendants 2 to 5 by the aforesaid judgment and decree
dated 27.10.1978 is null and void being against the custom and
                                                                   H
    218       SUPREME COURT REPORTS                 [2011] 4 S.C.R.

A will not operate against the right for succession of the plaintiffs
  and other heirs of defendant No. 1 on his death. Plaintiffs Nos.1
  and 2 were minors and the suit was filed on their behalf by the
  mother Smt. Padam Devi who was also one of the plaintiffs.

       4. The case of plaintiff Nos.1 and 2 was that they are the
8
  sons of one Ramgopal and Padam Devi, widow of deceased
  Ramgopal. It was alleged that the plaintiffs as well as the other
  defendants were the descendants of defendant No. 1 as given
  in the pedigree table given in para of the plaint. The plaintiffs
C Nos. 1 and 2 are minors and they filed the present suit through
  their mother Smt. Padam Devi. It was alleged that defendant
  No. 1 is a Hindu Jat and is governed by the agricultural custom
  according to which ancestral immovable property cannot be
  alienated except for legal necessity and consideration.

D      5. It was alleged that defendant No.1 Ganeshi had three
  sons, being Ramgopal, Dharambir and Jugal. Ramgopal ,
  father of the plaintiffs died some years ago. It was also alleged
  that defendant No. 1 was under the influence of his surviving
  sons namely, Dharambir and Yugal Kishore @ Jugal Singli.
E Defendant No. 2 is the son and defendant No. 3 is the wife of
  Dharambir. Defendant No. 4 is the son and defendant No. 5 is
  the wife of Yugal Kishore @ Jugal Singh.

        6. It was alleged that a month before filing of the plaint, the
F plaintiffs came to know the that in order to deprive them of their
  right to inherit the suit land on the death of defendant No. 1,
  defendant Nos. 2 to 5 filed a collusive suit against defendant
  No. 1 bearing suit No. 476 of 1978 in the Court of sub-Judge,
  llnd Class, Palwal for declaration that they are owners of the
  suit land. Defendant No. 1 suffered that decree against him on
G his admission on 27.10.1978. It was alleged that the said
  decree could not extinguish the rights of ownership of the
  plaintiffs in respect of the suit land, and it was null and void and
  would not operate against the plaintiff's right of succession on
  the death of defendant No.1. It was further alleged that plaintiffs
H Nos.1 and 2 are sons of Ramgopal and the land is ancestral
  GANESH (0) BY LRS. & ORS. v. ASHOK & ANR.                    219
           [MARKANDEY KATJU, J.]
property. According to agricultural custom defendant No.1              A
could not transfer the suit land in favour of defendant Nos.2 to
5 who were not his heirs to the exclusion of the plaintiffs who
were his heirs. It was further alleged that, in the alternative, the
said decree amounts to alienation and without consideration
and iegal necessity. It was alleged that defendants Nos.6 & 7          s
have colluded with defendant Nos.1 to 5.

      7. The defendants contested the suit. It was alleged in the
written submissions that defendant No. 1 did not transfer and
alienate the land in suit in favour of the answering defendants,       C
but the suit land was settled on them by way of family
settlement arrived at between the defendants. Some agricultural
land was already gifted by defendant No.1 in favour of plaintiffs
Nos.1 and 2. It was because of that reason that the family
settlement was arrived at in order to avoid family dispute.
                                                                       D
      8. It was alleged that since defendant No.1 gifted some of
his land in favour of plaintiff Nos.1 & 2, this resulted in a family
unrest and hence defendant No. 1 pacified all the members of
the family by way of a family settlement. It was denied thaUhe
land was ancestral. It was also denied that defendant No.1 was         E
under the influence of his surviving sons.
                   '-         \..:
     9. The trial court decreed the suit holding that the judgment
and decree dated 27.10.1978 amounts to alienation and without
consideration and legal n~-cessity. It was held that the decree        F
created new rights in defendants Nos.2 to 5, and it cannot be
said to be based on family settlement. Any alienation of
immovable property of value of Rs. 100/- had to be registered
and in the present case, the alienation is not by a registered
document.
                                                                       G
     10. The trial court held that the suit land was ancestral
property of Ganeshi qua the plaintiffs. This finding is based on
admission of Ganeshi that he has inherited the property from
his father Pran Sukh. The trial co1.1rt also held that d~fendant
No.1 was governed by the custom in the matter of alienation,           H
    220       SUPREME COURT REPORTS                (2011] 4 S.C.R.


A and under that custom ordinarily ancestral immovable property
  is inalienable except for legal necessity or with the consent of
  the male lineal descendants.

        11. The defendants filed an appeal which was allowed by
  the first appellate court by the judgment of the District Judge,
8
  Faridabad dated 2.11.1983. The first appellate court held that
  plaintiffs Nos.1 & 2 (respondents in the first appeal) was given
  land in 1969 by way of gift by Ganeshi and because of this
  there was some unrest in the family, and hence the family
  settlement was made. The first appellate court relied upon the
C judgment of this Court in Kale & Ors. vs. Deputy Director of
  Consolidation 'AIR 1976 SC 807 which held that in order to
  sustain a family settlement it is not necessary that there must
  be evidence of antecedent title of the parties.

D       12. The first appellate court held that the land was not
  ancestral property of Ganeshi because there was no proof that
  the land had descended from the father of Ganeshi. It was held
  that Ganeshi held the land in question along with some co-
  sharer's who acquired the same in whatever manner after the
E death of Shim Kaur.

        13. In second appeal, the High Court has set aside the
  judgment of the first appellate court and restored the judgment
  of the trial court. In our opinion, the judgment of the High Court
  cannot be sustained. It is well settled that the High Court in
F second appeal cannot interfere with the findings of fact of the
  first appellate court.

        14. A family settlement is not a transfer of property, as
  rightly held by the first appellate court. The first appellate court
G held that the family settlement was bona fide to avoid disputes
  in the family. The decree in Civil Suit No.476of1978 was only
  in pursuance of that family settlement, and hence it could not
  be interfered with.

          15. We have carefully perused the judgment of the first
H
   GANESH (D) BY LRS. & ORS. v. ASHOK & ANR.                  221
            [MARKANDEY KATJU, J.]

  appellate court which was the last court of facts and we are of    A
  the opinion that the findings of fact given by it are based on
. relevant evidence. Hence the High Court was not justified in
  interfering with those findings.

     16. For the foregoing reasons, the appeal is allowed. The       8
 impugned judgment and order of the High court is set aside
 and that of the first appellate court is restored. There shall be
 no order as to costs.

 R.P.                                           Appeal allowed.


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