Created byFuzzy Cloud

Supreme Court of India

GURCHARAN SINGH & ORS.versusANGREZ KAUR & ANR.

Citation
2020 INSC 314
Decided
19 March 2020
Disposal
Appeal(s) allowed

Holding

The decree dated 09.01.1995 is a valid decree that does not require registration under Section 17(2)(vi) of the Registration Act, and it was not obtained by fraud.

Summary

The appellants, Gurcharan Singh and others, obtained a decree on 9 January 1995 confirming their ownership of a suit land based on a registered will (dated 2 September 1986) and a family settlement (dated 15 June 1994) executed by the sole defendant, Bhajan Singh. Bhajan Singh had admitted these facts in his statement and lived with the appellants after his divorce, never contesting the decree until his death. After his death, his daughters (respondents) challenged the decree as null and void for not being registered under Section 17 of the Registration Act, alleging fraud and lack of a valid will. The Supreme Court held that the decree merely declared a pre‑existing right and, under Section 17(2)(vi), is exempt from compulsory registration; therefore, the decree is valid and not obtained by fraud. Consequently, the trial court’s decree was restored and the appeal allowed.

Issues considered

  • Whether the decree dated 09.01.1995 required registration under Section 17 of the Registration Act, 1908.
  • Whether the decree, being a declaration of a pre‑existing right, falls within the exemption of Section 17(2)(vi).
  • Whether the decree was obtained by fraud or coercion.
  • Whether the registered will dated 02.09.1986 and the family settlement dated 15.06.1994 are valid and can be ignored.
  • Whether the suit filed by the respondents was within the limitation period.

Legislation cited

Subjects

Registration ActDecree registrationPre‑existing rightFamily settlementWill validityFraudLimitation periodProperty law

Judgment

332                       [2020]
               SUPREME COURT     14 S.C.R. 332
                              REPORTS                     [2020] 14 S.C.R.


A                       GURCHARAN SINGH & ORS.
                                       v.
                          ANGREZ KAUR & ANR.
                        (Civil Appeal No. 6835 of 2009)
B                              MARCH 19, 2020
              [ASHOK BHUSHAN AND NAVIN SINHA, JJ.]
             Registration Act, 1908: s.17 – Case of appellants was that
      they were looking after one ‘B’, the sole defendant (owner of the
      suit property) who was divorced long back and was staying with
C
      them – His daughters (respondents) had left with their mother after
      the divorce and never met him – Sole defendant had executed
      registered will in favour of appellants and also a family settlement
      was effected in which suit property was given to the appellants in
      equal share – Sole defendant in a suit filed by appellants admitted
D     the claim of the appellants that a registered will was executed by
      him in respect of the suit property in favour of the appellants and
      also a family settlement was effected in which suit property was
      given to the appellants in equal share – Suit was decreed on the
      basis of admission of the sole defendant and after the decree,
      mutation was effected in favour of the appellants – After the death
E
      of the sole defendant, the said decree was challenged by the
      respondents as null and void on the ground that it was not registered
      and therefore was not valid decree – Held: The suit was based on
      pre-existing right and the decree was expressly covered by expression
      “any decree or order of the Court” under s.17(2)(vi) – Decree and
F     order did not require registration and were fully covered by
      s.17(2)(vi), which contains exclusion from registration as required
      in s.17(1) – Sequence of events clearly indicated that the sole
      defendant of his own volition wanted to give the entire property to
      the defendants due to the circumstances of the case, in which he
      was placed – Therefore, the decree cannot be held to be suffering
G
      from any fraud or coercion as contended by the respondents.
            Allowing the appeal, the Court
            HELD: 1. Suit filed by the appellants against ‘B’ relates to
      the suit property described in plaint and the decree was passed
H
                                      332
  GURCHARAN SINGH & ORS. v. ANGREZ KAUR & ANR.                          333


only with regard to suit property. The decree dated 09.01.1995          A
was, thus, expressly covered by expression “any decree or order
of a Court”. When legislature has specifically excluded
applicability of clause (b) and (C) with regard to any decree or
order of a Court, applicability of Section 17(1)(b) cannot be
imported in Section 17(2)(v) by any indirect method. Decree and
                                                                        B
order dated 09.01.1995 did not require registration and were fully
covered by Section 17(2)(vi), which contains exclusion from
registration as required in Section 17(1). High Court as well as
First Appellate Court erred in coming to the conclusion that
decree dated 19.01.1995 required registration and due to not
registered is null and void. [Para 17]                                  C
      Bhoop Singh v. Ram Singh Major and Others, (1995) 5
      SCC 709 : [1995] 3 Suppl. SCR 466 – held
      inapplicable.
      Mohammade Yusuf & Ors. v. Rajkumar & Ors. Civil
      Appeal No. 800 of 2020 decided on 05.02.2020 –                    D
      referred to.
       2. ‘B’ had executed Will dated 02.09.1986, which was a
registered Will and pleaded in paragraph 2 of the plaint. In
paragraph 3 of the plaint, it was also pleaded that pursuant to a
Family Settlement dated 15.06.1994 by which ‘B’ decided to allot        E
plaintiffs in equal share and relinquished all his rights in the suit
property, which pleadings were admitted by ‘B’ in his statement.
The decree was passed on 09.01.1995 on the basis of which
mutation was sanctioned on 03.03.1995. ‘B’ was admittedly alive
till 24.04.1998 and in his lifetime, he never objected the decree       F
or mutation in favour of the defendants. It has been accepted by
the Courts below that ‘B’ and ‘G’ were divorced and which divorce
was recorded in writing on 15.09.1973 as proved before the
Courts below. ‘G’ after 15.09.1973 along with daughters started
living with brother of ‘B’ and thereafter never returned to ‘B’.
The Courts have found that ‘B’ lived with the defendants after          G
the divorce, who were taking care of him. The execution of
registered Will by ‘B’ on 02.09.1986 in favour of the defendants
and further his admission that all the claim of the defendants in
Suit No. 556 are correct and accepting that he has relinquished
                                                                        H
334            SUPREME COURT REPORTS                         [2020] 14 S.C.R.


A     his rights in favour of the respondents clearly disprove any ground
      of fraud either on the Court or on ‘B’. Sequence of events clearly
      indicate that ‘B’ of his own volition wanted to give the entire
      property to the defendants due to the circumstances of the case,
      in which ‘B’ was placed. There is thus no substance in the
      submission that any fraud was played in obtaining decree dated
B
      09.01.1995 by the defendants. [Para 20][347-A-C; D-H]
            Som Dev and Others v. Rati Ram and Another, (2006)
            10 SCC 788 : [2006] 5 Suppl. SCR 778 – referred to.
                              Case Law Reference
C     [1995] 3 Suppl. SCR 466          held inapplicable         Para 14
      [2006] 5 Suppl. SCR 778          referred to               Para 15
            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6835
      of 2009
D           From the final Order dated 09.05.2008 of the High Court of Punjab
      and Haryana at Chandigarh in Regular Second Appeal No. 3472 of 2004.
            Pallav Sisodia, Sr. Adv., Ms.Swarupama Chaturvedi, Ms. Babita
      Yadav, Ashutosh Mohan, Mukesh Kumar, Ms. Aparna Trivedi, Aman
      Jha, R.C. Kohli, Advs. for the Appellants.
E           Dhruv Mehta, Sr. Adv., S.N. Chopra, Mrs. Reeta Dewan Puri,
      Jasan Chopra, J.S. Marahatta, P.N. Puri, Advs. for the Respondents.
            The Judgment of the Court was delivered by
            ASHOK BHUSHAN, J.
F            This is a defendant’s appeal challenging the judgment of the High
      Court of Punjab & Haryana dismissing the Regular Second Appeal No.
      3472 of 2004 of the appellants. The plaintiffs-respondents suit for
      declaration was dismissed by the trial court which decree was reversed
      by First Appellate Court decreeing the suit. The High Court affirmed the
G     decree of First Appellate Court.
            2. The brief facts of the case giving rise to this appeal are:-
            2.1. One Bhajan Singh was owner of suit land situated in Village
      Siraj Majra, Tehsil Amloh, District Fatehgarh Sahib. Bhajan Singh was
      married with Gurmail Kaur. Two daughters (namely Angrez Kaur and
H     Paramjit Kaur) were born to Bhajan Singh with Gurmail Kaur. Between
   GURCHARAN SINGH & ORS. v. ANGREZ KAUR & ANR.                                  335
               [ASHOK BHUSHAN, J.]

Bhajan Singh and Gurmail Kaur, a divorce in writing was entered on               A
15.09.1973 whereafter Gurmail Kaur started residing with one Maghar
Singh, the brother of Bhajan Singh in village Jalowal. Gurmail Kaur also
took alongwith her both the daughters who were minors at that time to
Village Jalowal where they all resided with Maghar Singh.
       2.2. Bhajan Singh resided in Village Siraj Majra with Gurcharan           B
Singh, Gurnam Singh and Kulwant Singh, the appellants, who looked
after Bhajan Singh. Bhajan Singh executed a registered Will dated
02.09.1986 in favour of Gurcharan Singh, Gurnam Singh and Kulwant
Singh, the appellants. A Civil Suit No. 556 dated 21.09.1994 was filed by
the appellants impleading the Bhajan Singh as the sole defendant praying
for declaration to the effect that plaintiffs are the owners and in possession   C
of the suit land.
       2.3. In the plaint, the plaintiff pleaded that defendant had executed
a registered Will in favour of the plaintiffs, which was made as per
defendant’s free will and consent and which was attested and duly
registered by Sub-Registrar. It was further pleaded in the plaint that           D
defendant effected a Family Settlement on 15.06.1994 in which suit
property was given to the plaintiffs in equal share. In the suit, a written
statement was filed by the defendant – Bhajan Singh on 03.12.1994
where he admitted the plaint allegations and also prayed that decree be
passed in favour of the plaintiffs. On the same day, i.e., 03.12.1994,           E
Bhajan Singh also recorded his statement in the Court, where he stated
that averments in the plaint are correct and he has no objection if the suit
of the plaintiff is decreed.
       2.4. The Court of Additional Senior Sub Judge, Amloh decreed
the suit on 09.01.1995. On the basis of admission by the defendant of            F
the claim of the plaintiffs after decree dated 09.01.1995 mutation was
also affected of the land in suit in favour of the plaintiff on 03.03.1995.
Bhajan Singh died on 24.04.1998.
       2.5. After death of Bhajan Singh both Angrez Kaur and Paramjit
Kaur filed Civil Suit No. 167 of 19.05.1998 praying for declaration to the       G
effect that decree and judgment in Civil Suit No. 556 of 21.09.1994
decided on 09.01.1995 in respect of the suit property is wrong, without
jurisdiction, illegal, null and void, ineffective and inoperative qua the
proprietary rights of the plaintiffs as heirs of the said Bhajan Singh.

                                                                                 H
336             SUPREME COURT REPORTS                          [2020] 14 S.C.R.


A            2.6. In the suit filed by the plaintiffs, the present appellants, who
      were impleaded as defendants filed a written statement refuting the
      plaint allegations. It was pleaded by defendants-appellants that after
      divorce of Bhajan Singh and Gurmail Kaur on 15.09.1973, Bhajan Singh
      was residing with defendants, who were serving Bhajan Singh. Bhajan
      Singh out of his free will executed a Will on 02.09.1986 in favour of the
B
      defendants. In the suit filed by the defendants -Suit No. 556 of 21.09.1994,
      Bhajan Singh filed a statement admitting the claim of the defendants
      including the confirmation regarding execution of Will in favour of the
      defendants. It is the defendants, who are in possession of suit land, in
      whose favour, mutation has also been affected. The plaintiffs had no
C     concern with Bhajan Singh, who was residing with defendants at Village
      Siraj Majra. The vote and ration card of Bhajan Singh was with the
      defendants, who were serving him like their father. A replication was
      also filed by the plaintiffs where Family Settlement as well as the Will
      dated 02.09.1986 was denied. The trial court vide its judgment and order
      dated 05.03.2003 dismissed the suit of the plaintiffs.
D
             2.7. The plaintiffs aggrieved by the said judgment filed an appeal
      before District Judge. The first appeal filed by the plaintiffs was decreed
      and allowed by learned Additional District Judge vide its judgment dated
      13.08.2004. The defendants filed Regular Second Appeal before the
      High Court, which was dismissed by the impugned judgment. This appeal
E     has been filed by the defendants aggrieved with the judgment of the
      High Court.
            3. We have heard Shri Pallav Sisodia, learned senior counsel and
      Mrs. Swarupama Chaturvedi, learned counsel for the appellant. Shri
      Dhruv Mehta, learned senior counsel had appeared for the respondents.
F
              4. Shri Pallav Sisodia, learned senior counsel for the appellant
      contends that both First Appellate Court and High Court erred in decreeing
      the suit of the plaintiffs. The trial court has rightly dismissed the suit of
      the plaintiffs holding that decree dated 09.01.1995 was a valid decree,
      which did not require any registration. The claim of the appellants of
G     declaration as owner in possession of the suit property in Civil Suit No.
      556 was admitted by Bhajan Singh, who filed the written statement and
      got recorded his statement admitting the claim of the plaintiffs. The decree
      dated 09.01.1995 was not based on any fraud or coercion. Bhajan Singh
      at his own free will had decided to give the suit property to the appellants,
H     which is clearly depicted by executing a registered Will dated 02.09.1986
   GURCHARAN SINGH & ORS. v. ANGREZ KAUR & ANR.                                337
               [ASHOK BHUSHAN, J.]

in favour of the appellants and further after the decree dated 09.01.1995      A
accepting the mutation in favour of the appellants. Divorce between
Bhajan Singh and Gurmail Kaur took place on 15.09.1973 and Gurmail
Kaur thereafter started residing with Maghar Singh, brother of Bhajan
Singh and never came back to Bhajan Singh. There was no relation
between Gurmail Kaur and Bhajan Singh after the divorce dated
                                                                               B
15.09.1973. The plaintiffs also went alongwith Gurmail Kaur after the
divorce and throughout lived with Maghar Singh and Gurmail Kaur and
never came to see their father Bhajan Singh. The Will dated 02.09.1986
was validly executed, which Will was admitted by Bhajan singh in his
written statement filed in Suit No. 556. When Bhajan Singh has admitted
the execution of Will dated 02.09.1986, Courts below committed error in        C
not accepting the Will due to want of examination of attesting witness
whereas Will was proved by the defendants-appellants by producing
scribe, who scribed the Will as well as clerk from Registrar’s Office,
who proved the registration of the Will. It is further submitted that oral
Family Settlement dated 15.06.1994 giving the suit property by Bhajan
                                                                               D
Singh in favour of the defendants was a valid settlement even though
defendants were not related by blood as Uncle and Nephew but Bhajan
Singh was living with the defendants after the divorce throughout.
Defendants treated Bhajan Singh as member of their family and served
them. Family Settlement in above facts was valid Family Settlement. It
is not necessary that person, who is given a right in any property should      E
be necessarily a blood relation. It is further submitted that both the First
Appellate Court and the High Court erred in holding that compromise
decree dated 09.01.1995 required compulsory registration under Section
17 of Registration Act, 1908. High Court has discarded the compromise
decree dated 09.01.1995 on the ground that same required compulsory
                                                                               F
registration and the decree being not registered was not valid decree.
       5. Shri Dhruv Mehta, learned counsel for the plaintiffs-respondents
submits that decree dated 09.01.1995 was obtained by fraud and on
false allegations made in the plaint. It is submitted that appellants, who
were plaintiffs in the above suit described themselves as nephews of
Bhajan Singh and Bhajan Singh as Uncle, which relationship was not             G
proved, hence, decree was obtained by playing fraud. It is further
submitted that decree dated 09.01.1995 was compulsorily registrable
under Section 17 and it having not been registered First Appellate Court
and the High Court has rightly discarded the decree. It is submitted that
the Will dated 02.09.1986 has not been accepted by all the three courts.       H
338              SUPREME COURT REPORTS                        [2020] 14 S.C.R.


A     It is submitted that under Section 68 of the Evidence Act, a Will requires
      attestation. It is submitted that out of the two attesting witnesses namely
      Darshan Singh and Gurdev Singh, Gurdev Singh was admittedly alive,
      which was admitted by defendant himself in his statement and Gurdev
      Singh having not been produced to prove the Will, the Will has rightly
      been held not to be proved, which findings need no interference in this
B
      appeal. The scribe, who appeared to prove the Will cannot be treated as
      an attesting witness, since he had no animus to attest the Will. It is
      further submitted that there can be no Family Settlement in favour of a
      person, who has no relation with the owner of the property. The Family
      Settlement dated 15.06.1994 was no Family Settlement.
C            6. Learned counsel for the parties have relied on various judgments
      of this Court, which we shall refer to hereinafter while considering the
      submissions in details.
              7. We may notice the issues framed by the trial court and the
      findings returned thereon. On the basis of the pleadings of the parties,
D     trial court framed following issues:-
            “1. Whether impugned judgment and decree passed in Civil Suit
                No. 556 of 21.09.1994 decided on 09.01.1995 titled as
                Gurcharan Singh etc. Vs. Bhajan Singh, by S. Dalip Singh
                the then Additional Senior Sub Judge, Amloh in respect of
E               property earlier in name of Bhajan Singh in the subject matter
                of the suit is illegal, null and void or otherwise bad as alleged
                in the plaint, if so its effect? OPP
            2.   Whether plaintiffs are entitled to possession of the suit land?
                 OPP
F
            3.   Whether Sh. Bhajan Singh executed a legal and valid will
                 dated 09.02.98 in favour of defendants, if so its effect? OPD
            4.   Whether suit is not maintainable and competent in the present
                 form? OPD
G           5.   Whether plaint is liable to be rejected u/o 7 rule 11 CPC?
                 OPD
            6.   Whether suit is within limitation? OPD
            7.   Whether defendants have taken possession of the suit land
                 from plaintiffs 3 weeks before filing of the suit? OPD
H
    GURCHARAN SINGH & ORS. v. ANGREZ KAUR & ANR.                                 339
                [ASHOK BHUSHAN, J.]

       8.    Relief”                                                             A
        8. Issue No.1 was decided in favour of the defendants holding the
decree dated 09.01.1995 as a valid decree. Issue No.2 was decided in
favour of the defendant. The issue No. 3 regarding Will dated 02.09.1986
was decided in favour of the plaintiffs holding that defendant failed to
prove the Will dated 02.09.1986 since one of the attesting witnesses             B
was alive but was not produced by the defendants. Trial court held the
suit to be within limitation. The trial court has also returned a finding that
it has been proved from the evidence of PW1, the plaintiff that they
never visited their father from Village Jalowal, which clearly establish
that Bhajan Singh resided with the defendants, who used to look after
and serve him. The trial court also returned a finding that there was no         C
element of fraud, misrepresentation or coercionin obtaining a decree
dated 09.01.1995. The First Appellate Court reversed the judgment of
the trial court holding that the decree dated 09.01.1995 first time created
rights in favour of the defendants, hence it required registration. It was
held that decree dated 09.01.1995 was not a valid document and was               D
null and void and non est being an unregistered decree. The findings of
the trial court with regard to Will were not interfered with by the First
Appellate Court. In the Regular Second Appeal filed by the defendants,
the decree of the First Appellate Court was confirmed. In the Regular
Second Appeal, following substantial questions of law were framed by
the High Court:-                                                                 E

       “a)    Whether in the facts and circumstances of the instant case,
              the decree dated 09.01.1995 which has, otherwise, been
              proved to have been suffered by Bhajan Singh in favour of
              the appellant, could be ignored by the learned Ist Appellate
              Court on the ground of non-registration particularly when          F
              the decree was based on earlier family settlement?
       b)     Whether in the facts and circumstances of the instant case,
              the suit filed by the plaintiff/respondents could be said to be
              within limitation?
                                                                                 G
       c)     Whether in the facts and circumstances of the instant case,
              the registered Will in favour of the appellants could be
              ignored by the learned courts below when the appellants
              had led affirmative evidence proving the due execution and
              validity of the Will?
                                                                                 H
340              SUPREME COURT REPORTS                             [2020] 14 S.C.R.


A           d)         Whether the interpretation put by the learned Ist Appellate
                       Court to the meaning of Family can be sustained in law?
             9. All the substantial questions of law have been answered by the
      High Court in favour of the plaintiffs and against the defendants. The
      first substantial question of law framed by the High Court was with
B     regard to non-registration of decree dated 09.01.1995. We may first
      consider the rival submissions of the parties on the question of registration
      of the decree dated 09.01.1995. The First Appellate Court and the High
      Court both have upheld the decree 09.01.1995 as null and void due to
      non-registration of decree. The question is as to whether the decree
      dated 09.01.1995 required registration under Section 17 of the Registration
C     Act. Section 17 of the Registration Act provides for registration of
      documents, which is to the following effect:-
            “17. Documents of which registration is compulsory.—(l)
            The following documents shall be registered, if the property to
            which they relate is situate in a district in which, and if they have
D           been executed on or after the date on which, Act No. XVI of
            1864, or the Indian Registration Act, 1866, or the Indian
            Registration Act, 1871, or the Indian Registration Act, 1877, or
            this Act came or comes into force, namely:—
                 (a)      instruments of gift of immovable property;
E
                 (b)      other non-testamentary instruments which purport or
                          operate to create, declare, assign, limit or extinguish,
                          whether in present or in future, any right, title or interest,
                          whether vested or contingent, of the value of one
                          hundred rupees and upwards, to or in immovable
F                         property;
                 (c)      non-testamentary instruments which acknowledge the
                          receipt or payment of any consideration on account of
                          the creation, declaration, assignment, limitation or
                          extinction of any such right, title or interest; and
G
                 (d)      leases of immovable property from year to year, or for
                          any term exceeding one year, or reserving a yearly rent;
                 (e)      non-testamentary instruments transferring or assigning
                          any decree or order of a Court or any award when such
                          decree or order or award purports or operates to create,
H
  GURCHARAN SINGH & ORS. v. ANGREZ KAUR & ANR.                                    341
              [ASHOK BHUSHAN, J.]

                  declare, assign, limit or extinguish, whether in present        A
                  or in future, any right, title or interest, whether vested or
                  contingent, of the value of one hundred rupees and
                  upwards, to or in immovable property:
      Provided that the State Government may, by order published in
      the Official Gazette, exempt from the operation of this sub-section         B
      any lease executed in any district, or part of a district, the terms
      granted by which do not exceed five years and the annual rents
      reserved by which do not exceed fifty rupees.
      (1A) The documents containing contracts to transfer for
      consideration, any immovable property for the purpose of section            C
      53A of the Transfer of Property Act, 1882 (4 of 1882) shall be
      registered if they have been executed on or after the
      commencement of the Registration and Other Related laws
      (Amendment) Act, 2001 and if such documents are not registered
      on or after such commencement, then, they shall have no effect
      for the purposes of the said section 53A.                                   D

      (2) Nothing in clauses (b) and (c) of sub-section (l) applies to—
          (i)     any composition deed; or
          (ii)     …       …        …        …
                                                                                  E
          (iii)   …        …        …        …
          (iv)    …        …        …        …
          (v)     …        …        …        …
          (vi)    any decree or order of a Court except a decree or order
                  expressed to be made on a compromise and comprising             F
                  immovable property other than that which is the subject-
                  matter of the suit or proceeding]; or
                  …        …        …        …
                  …        …        …        …”                                   G
       10. Sub-section (2) of Section 17 provides that nothing in clause
(b) and (c) of sub-section (1) applies to item No.(i) and (xii) enumerated
therein. We in the present case have to consider as to whether the decree
dated 09.01.1995 is covered by sub-section(2) (vi) or not. Both the First
Appellate Court and the High Court have proceeded on the premise that
                                                                                  H
342            SUPREME COURT REPORTS                          [2020] 14 S.C.R.


A     since the decree dated 09.01.1995 first time created right in favour of
      the defendant, it required registration, on the ratio of a judgment of this
      Court in Bhoop Singh Vs. Ram Singh Major and Others, (1995) 5
      SCC 709. In Bhoop Singh (supra), this Court laid down following in
      paragraphs 16, 17 and 18:-
B           “16. We have to view the reach of clause (vi), which is an
            exception to sub-section (1), bearing all the aforesaid in mind. We
            would think that the exception engrafted is meant to cover that
            decree or order of a court, including a decree or order expressed
            to be made on a compromise, which declares the pre-existing
            right and does not by itself create new right, title or interest in
C           praesenti in immovable property of the value of Rs 100 or upwards.
            Any other view would find the mischief of avoidance of registration,
            which requires payment of stamp duty, embedded in the decree
            or order.
            17. It would, therefore, be the duty of the court to examine in
D           each case whether the parties have pre-existing right to the
            immovable property, or whether under the order or decree of the
            court one party having right, title or interest therein agreed or
            suffered to extinguish the same and created right, title or interest
            in praesenti in immovable property of the value of Rs 100 or
E           upwards in favour of other party for the first time, either by
            compromise or pretended consent. If latter be the position, the
            document is compulsorily registrable.
            18. The legal position qua clause (vi) can, on the basis of the
            aforesaid discussion, be summarised as below:
F               (1)    Compromise decree if bona fide, in the sense that the
                       compromise is not a device to obviate payment of stamp
                       duty and frustrate the law relating to registration, would
                       not require registration. In a converse situation, it would
                       require registration.
G               (2)    If the compromise decree were to create for the first
                       time right, title or interest in immovable property of the
                       value of Rs 100 or upwards in favour of any party to the
                       suit the decree or order would require registration.
                (3)    If the decree were not to attract any of the clauses of
H                      sub-section (1) of Section 17, as was the position in the
   GURCHARAN SINGH & ORS. v. ANGREZ KAUR & ANR.                                 343
               [ASHOK BHUSHAN, J.]

                 aforesaid Privy Council and this Court’s cases, it is          A
                 apparent that the decree would not require registration.
          (4)    If the decree were not to embody the terms of
                 compromise, as was the position in Lahore case, benefit
                 from the terms of compromise cannot be derived, even
                 if a suit were to be disposed of because of the                B
                 compromise in question.
          (5)    If the property dealt with by the decree be not the
                 “subject-matter of the suit or proceeding”, clause (vi)
                 of sub-section (2) would not operate, because of the
                 amendment of this clause by Act 21 of 1929, which has          C
                 its origin in the aforesaid decision of the Privy Council,
                 according to which the original clause would have been
                 attracted, even if it were to encompass property not
                 litigated.
        11. Learned counsel for the respondent has placed reliance on           D
paragraph 18(2) to support his submission that since for the first time
right, title and interest in the suit property being created in favour of the
defendants, it required registration. Respondent’s counsel further submits
that defendant in the statement before the Court has admitted that the
respondents-defendants for the first time obtained right, title and interest
in the suit property by virtue of decree dated 09.01.1995. The present is       E
a case where by decree dated 09.01.1995 only suit property was made
part of the decree. Suit No. 556 was filed with the pleading that Will
dated 02.09.1986 as well as Family Settlement dated 15.06.1994, which
are specifically pleaded in paragraphs 2 and 3 of the plaint are to the
following effect:-                                                              F
       “2. That the defendant has executed a valid and legal Will dated
       02.09.1986 in favour of the plaintiffs with his free will and consent
       while he was in a fit disposing mind, which was attested and
       registered by the Sub-Registrar.
       3. That the defendant considering it proper has effected a family        G
       settlement on 15.06.1994 vide which the property in suit was allotted
       to the plaintiffs in equal shares and the defendant has relinquished
       all his right, title and interest whatsoever in the said property in
       favour of the plaintiff in the said family settlement.”
                                                                                H
344            SUPREME COURT REPORTS                          [2020] 14 S.C.R.


A            12. In the suit, Bhajan Singh was only defendant, who filed his
      written statement on 03.12.1994, allegations in paragraphs 2 and 3 of
      the plaint were admitted by the defendant in his statement in paragraphs
      2 and 3, which is to the following effect:-
            “2. Para No. 2 of the plaint is admitted to be correct.
B           3. Para No. 3 of the plaint is admitted to be correct.”
             13. In the written statement, the defendant Bhajan Singh prayed
      that suit of the plaintiffs be decreed as prayed. The pleading in the suit
      and in the written statement clearly leads to the conclusion that suit was
      filed on the basis of pre-existing right in favour of plaintiffs, which was
C     basis of the suit. Pre-existing right of the plaintiffs was admitted by the
      defendant and decree was passed therein.
             14. Thus, the submission of the plaintiffs-respondents that suit
      was not based on pre-existing right of the plaintiffs cannot be accepted,
      which is belied by the categorical pleading in the plaint. In view of the
D     above pleadings, we are of the view that very basis of the applicability
      of the judgment of Bhoop Singh (supra)is knocked out and is not
      attracted in the present case. This Court in a recent judgment in Civil
      Appeal No.800 of 2020 – Mohammade Yusuf & Ors. Vs. Rajkumar
      & Ors. decided on 05.02.2020 had occasion to consider Section 17 as
E     well as judgment of Bhoop Singh (supra). While elaborating Section
      17, this Court laid down following in paragraph 6:-
            “6. A compromise decree passed by a Court would ordinarily be
            covered by Section 17 (1) (b) but subsection (2) of Section 17
            provides for an exception for any decree or order of a Court
F           except a decree or order expressed to be made on a compromise
            and comprising immovable property other than that which is the
            subject-matter of the suit or proceeding. Thus, by virtue of sub-
            section(2)(vi) of Section 17 any decree or order of a Court does
            not require registration. In sub-clause(vi) of sub-section (2), one
            category is excepted from sub-clause(vi), i.e., a decree or order
G           expressed to be made on a compromise and comprising immovable
            property other than that which is the subject-matter of the suit or
            proceeding. Thus, by conjointly reading Section 17 (1) (b) and
            Section 17 (2) (vi), it is clear that a compromise decree comprising
            immovable property other than which is the subject matter of the
            suit or proceeding requires registration, although any decree or
H
   GURCHARAN SINGH & ORS. v. ANGREZ KAUR & ANR.                                 345
               [ASHOK BHUSHAN, J.]

      order of a Court is exempted from registration by virtue of Section       A
      17 (2) (vi). A copy of the decree passed in Suit No.250-A of 1984
      has been brought on record as Annexure P-2, which indicates
      that decree dated 04.10.1985 was passed by the Court for the
      property, which was subject matter of the suit. Thus, the
      exclusionary clause in Section 17 (2) (vi) is not applicable and the
                                                                                B
      compromise decree dated 04.10.1985 was not required to be
      registered on plain 8 reading of Section 17 (2)
      (vi)………………………….”
       15. In the above case, this Court further relied on earlier judgment
of this Court in Som Dev and Others Vs. Rati Ram and Another,
(2006) 10 SCC 788 in paragraph 13 and laid down following:-                     C

      “13. This Court in Som Dev and Others Vs. Rati Ram and
      Another, (2006) 10 SCC 788 while explaining Section 17(2)(vi)
      and Section 17(1)(b) and (c) held that all decree and orders of the
      Court including compromise decree subject to the exception as
      referred that the properties that are outside the subject matter of       D
      the suit do not require registration. In paragraph 18, this Court laid
      down following:-
          “18. ……………But with respect, it must be pointed out that
          a decree or order of a court does not require registration if it is
          not based on a compromise on the ground that clauses (b) and          E
          (c) of Section 17 of the Registration Act are attracted. Even a
          decree on a compromise does not require registration if it does
          not take in property that is not the subject-matter of the
          suit…………………….”
      16. In the above case, the earlier decree, which was sought to be         F
ignored on the ground that it was not registered related only with the suit
property. This Court held that the said decree did not require registration.
Following reasons were given in paragraph 14:-
      “14. In facts of the present case, the decree dated 04.10.1985
      was with regard to property, which was subject matter of the suit,        G
      hence not covered by exclusionary clause of Section 17 (2) (vi)
      and present case is covered by the main exception crafted in
      Section 17 (2) (vi), i.e., “any decree or order of a Court”. When
      registration of an instrument as required by Section 17 (1) (b) is
      specifically excluded by Section 17 (2) (vi) by providing that
                                                                                H
346             SUPREME COURT REPORTS                         [2020] 14 S.C.R.


A           nothing in clause (b) and (c) of sub-section (1) applies to any
            decree or order of the Court, we are of the view that the
            compromise decree dated 04.10.1985 did not require registration
            and learned Civil Judge as well as the High Court erred in holding
            otherwise. We, thus, set aside the order of the Civil Judge dated
            07.01.2015 as well as the judgment of the High Court dated
B
            13.02.2017. The compromise decree dated 04.10.1985 is directed
            to be exhibited by the trial court. The appeal is allowed
            accordingly.”
             17. Reverting back to the facts of the present case, it is clear that
      the Suit No. 556 of 21.09.1994 filed by the appellants against Bhajan
C     Singh relates to the suit property described in plaint and decree was
      passed only with regard to suit property A to D. The decree dated
      09.01.1995 was, thus, expressly covered by expression “any decree or
      order of a Court”. When legislature has specifically excluded applicability
      of clause (b) and (C) with regard to any decree or order of a Court,
D     applicability of Section 17 (1) (b) cannot be imported in Section 17 (2)
      (v) by any indirect method. We, thus, are of the considered opinion that
      decree and order dated 09.01.1995 did not require registration and were
      fully covered by Section 17 (2) (vi), which contains exclusion from
      registration as required in Section 17(1). High Court as well as First
      Appellate Court erred in coming to the conclusion that decree dated
E     19.01.1995 required registration and due to not registered is null and
      void.
            18. Trial Court’s view that decree dated 19.01.1995 being binding
      on Bhajan Singh, the plaintiffs, who are the daughters of Bhajan Singh
      cannot avoid the decree. The submission of the learned counsel for the
F     respondent that decree dated 09.01.1995 was obtained by fraud also
      needs to be considered.
             19. The submission of the learned counsel for the respondent is
      that since in the suit, which was filed by the defendant, they described
      the defendant as uncle of the plaintiffs, who were looking after and
G     serving the defendant, which statement having been found not to be
      proved, it was fraud played on the defendant and the Court.
            20. We need to revisit the facts and sequence of events in the
      case to examine as to whether any fraud was played on the Court or
      Bhajan Singh in obtaining the decree dated 09.01.1995. Bhajan Singh
H
   GURCHARAN SINGH & ORS. v. ANGREZ KAUR & ANR.                               347
               [ASHOK BHUSHAN, J.]

had executed a registered Will dated 02.09.1986, which was a registered       A
Will and pleaded in paragraph 2 of the plaint. In paragraph 3 of the
plaint, it was also pleaded that pursuant to a Family Settlement dated
15.06.1994 by which Bhajan Singh decided to allot plaintiffs in equal
share and relinquished all his rights in the suit property, which pleadings
were admitted by Bhajan Singh in his statement. The decree was passed
                                                                              B
on 09.01.1995 on the basis of which mutation was sanctioned on
03.03.1995. Bhajan Singh was admittedly alive till 24.04.1998 and in his
lifetime, he never objected the decree or mutation in favour of the
defendants. It has been accepted by the Courts below that both Bhajan
Singh and Gurmail Kaur were divorced and which divorce was recorded
in writing on 15.09.1973 as proved before the Courts below. Gurmail           C
Kaur after 15.09.1973 started living with Maghar Singh, brother of Bhajan
Singh in Village Jalowal and thereafter never returned to Bhajan Singh.
Gurmail Kaur also filed a suit for maintenance against Bhajan Singh,
which was dismissed for non-prosecution. The plaintiffs, i.e., Angrez
Kaur and Paramjit Kaur, after divorce went with their mother and lived
                                                                              D
with Maghar Singh and never returned to Bhajan Singh. In her statement,
PW1 has admitted that she never came to see her father. The Courts
have found that Bhajan Singh lived with the defendants after the divorce,
who were taking care of Bhajan Singh. The execution of registered Will
by Bhajan Singh on 02.09.1986 in favour of the defendants and further
his admission that all the claim of the defendants in Suit No. 556 are        E
correct and accepting that he has relinquished his rights in favour of the
plaintiffs, Gurcharan Singh, Gurnam Singh and Kulwant Singh clearly
disprove any ground of fraud either on the Court or on Bhajan Singh.
The divorce between Bhajan Singh and Gurmail Kaur took place on
15.09.1973 and thereafter for 25 years, Bhajan Singh lived away from
                                                                              F
his wife and daughters and it was the defendants, who were taking care
of Bhajan Singh. Admitting the claim of plaintiffs/appellants in the suit
filed against the defendant Bhajan Singh for declaration cannot be termed
as any fraud played on Bhajan Singh or the Court. Sequence of events
clearly indicate that Bhajan Singh of his own volition wanted to give the
entire property to the defendants due to the circumstances of the case,       G
in which Bhajan Singh was placed. It is due to this reason that Bhajan
Singh in his Will dated 02.09.1986 stated that he has no wife or children.
We, thus, do not find any substance in the submission of the learned
counsel for the respondents that any fraud was played in obtaining decree
dated 09.01.1995 by the defendants. The decree dated 09.01.1995 cannot
                                                                              H
348              SUPREME COURT REPORTS                        [2020] 14 S.C.R.


A     be held to be suffering from any fraud or coercion as contended by the
      learned counsel for the respondents.
             21. We having held that decree dated 09.01.1995 was a valid
      decree, the decision of the trial court dismissing the suit for declaration
      that decree dated 09.01.1995 was null and void, has to be upheld. In
B     view of our above conclusion, we do not find it necessary to consider
      various submissions raised by the learned counsel for the parties regarding
      the validity of the registered Will dated 02.09.1986.
              22. In view of the foregoing discussions, we set aside the judgment
      of the High Court as well as First Appellate court and restore the decree
C     of trial court. The appeal is allowed accordingly.

      Devika Gujral                                                Appeal allowed




D




E




F




G




H


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "Registration Act"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.