MURUGAN Vs KESAVA GOUNDER (DEAD) THR LRS AND ORS.
Bench: HON'BLE MR. JUSTICE ASHOK BHUSHAN, HON'BLE MR. JUSTICE K.M. JOSEPH
Judgment by: HON'BLE MR. JUSTICE ASHOK BHUSHAN
Case number: C.A. No.-001782-001782 / 2019
Diary number: 22220 / 2010
Advocates: R. CHANDRACHUD Vs
VIJAY KUMAR
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
REPORTABLE IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.1782 OF 2019 (arising out of S.L.P. (C) No. 21091 of 2010)
MURUGAN & ORS. ...APPELLANTS
Vs.
KESAVA GOUNDER (DEAD) THR. LRS. AND ORS. ...RESPONDENTS
J U D G M E N T
ASHOK BHUSHAN, J.
This is the plaintiff’s appeal challenging the
judgment of Madras High Court dismissing the second
appeal filed by the plaintiffs-appellants.
2. Brief facts of the case are:-
2.1 The suit property belongs to one Petha
Gounder. Petha Gounder had two sons namely
Kannan and Balaraman and three daughters.
Sengani Ammal was wife of Petha Gounder. On
17.05.1971 Petha Gounder executed a Will
bequeathing life interest to his sons Kannan
and Balaraman and thereafter to the two male 1
heirs of his both the sons, who were to take
the property absolutely. Will further
stipulated that in event, there is no male
heir to one of his sons, the male heirs of
other son will take the property. Petha
Gounder died on 28.11.1971 leaving behind his
wife, two sons Balaraman and Kannan and three
daughters. Petha Gounder’s wife Sengani
Ammal died on 02.02.1982. Balaraman had one
son namely Palanivel.
2.2 Balaraman on his behalf as well as on behalf
of his minor son had sold Item Nos.1 to 3 of
the suit properties by registered Sale Deed
dated 15.12.1981. Balaraman also sold Item
No.6 and a portion of Item No.7 by two Sale
Deeds dated 30.03.1981 and 31.03.1981 in
favour of the first defendant. Balaraman had
sold Item No. 6 in favour of the second
defendant by registered Sale Deed dated
29.03.1982. Balaraman died in 1983 and
Kannan died on 02.12.1984. Balaraman’s wife
was Lakshmi. The plaintiffs are sons of
Kannan. Palanivel, the son of Balaraman died
2
on 11.02.1986 while still a minor.
Palanivel’s mother Lakshmi Ammal executed a
registered Release Deed dated 24.03.1986 in
favour of the plaintiffs for a consideration.
The plaintiffs filed suit No.229 of 1992
praying for following reliefs:- “VI. The plaintiffs therefore pray that the Hon’ble Court may be pleased to:-
(a) Declare that the plaintiffs are entitled to the suit properties;
(b) Direct the Defendants to deliver possession of the suit properties failing which order delivery of possession through process of court;
(c) Direct the Defendants to pay the cost of the suit and
(d) Grant such other reliefs as the Hon’ble Court may deem fit in the circumstances of the case.”
2.3 The plaintiffs’ case in the plaint was that
Balaraman had no authority to execute Sale
Deed on behalf of his minor son Palanivel and
the Sale Deeds executed by Balaraman were
void. The plaintiffs being sons of Kannan
are entitled for declaration and possession
of the properties from the defendants. It 3
was further pleaded that validity of the Will
dated 17.05.1971 has been upheld by the
Subordinate Judges Court, Cuddalore in O.S.
No. 447 of 1973.
2.4 The defendant filed written statement. The
defendant’s case was that Balaraman, in order
to discharge his debts and for family
necessity executed sale deed for himself and
on behalf of his minor son on 15.12.1981.
The sale deed binds the minor Palanivel. The
release deed executed by Lakshmi Ammal on
24.03.1986 will confer no right to the
plaintiffs. The suit is barred by limitation
since the suit has not been filed within 03
years from the date of death of Palanivel
i.e. 11.02.1986. The suit as framed is not
maintainable. The defendants are not in
illegal possession. The defendants are
bonafide purchasers for value. The
plaintiffs cannot file suit for declaration
without praying for setting aside the sale
deeds.
4
2.5 The trial court framed ten issues. Issue
No.7 was “Whether the suit is barred by
limitation?”. Issue No.8 was “Whether the
plaintiffs are entitled to seek for
declaration of title in respect of suit
properties?”. Issue No.9 was “Whether the
plaintiffs are entitled to seek for recovery
of possession?”. The trial court while
deciding Issue No.7 held that suit is not
barred by limitation. Trial court held that
plaintiff having filed the suit as
reversioner, Article 65 of the Limitation Act
will apply. As per Article 65, period for
limitation is 12 years, hence suit was within
time. The Will dated 17.05.1971 was held to
be a valid Will. The sale deeds executed by
Balaraman are voidable. On release deed, the
trial court held that Lakshmi Ammal had no
right in the suit properties, as such the
plaintiffs do not derive any new right from
the release deed. Trial court held that it
is not necessary to decide the truth and
validity of the release deed dated
5
24.03.1986. The trial court further held that
there was no necessity to file the suit
seeking a prayer to set aside the sale deeds
separately since those sale deeds are
voidable and they can be ignored. It was
held that plaintiffs are competent to recover
possession from the defendants. Trial court
vide its judgment and decree dated 13.08.1997
decreed the suit.
2.6 The defendants aggrieved by the judgment of
the trial court filed appeal. The Principal
District Judge vide its judgment dated
31.08.1999 allowed the appeal dismissing the
suit. Appellate Court held that since
Palanivel died on 11.02.1986, the suit should
have been filed to set aside the sale deeds
and for possession within 03 years from his
death. The suit filed in 1992 was barred by
limitation. The Appellate Court relied on
Article 60 of the Limitation Act. Aggrieved
against the judgment of the First Appellate
Court, the plaintiffs filed second appeal in
the High Court. High Court vide its judgment
6
dated 21.04.2010 dismissed the second appeal.
High Court had framed following substantial
questions of law for consideration:-
“i) Whether the Learned First Appellate
Judge is correct in holding that the
release deed Ex.A-15 dated 24.03.1986, is
not avoiding the transfers by sales under
Exs. A-9=B-9, A-10=B-7, A-11=B-2 and A-
12=B-9, executed by the natural guardian
late Balaraman, of the properties belong
to the deceased minor Palanivel?
ii) Whether the sale deeds executed by late
Balaraman, the natural guardian of minor
Palanivel, of the properties of the minor
are valid in law when the said sale deeds
were executed in gross violation of
Section 8(2)(a) of the Hindu Minority and
Guardianship Act, especially when the
mother, who claimed under the minor
avoided the sale immediately on the
demise of the minor?
iii)Whether first appellate Judge is correct
in holding that the suit is not
7
maintainable, since the suit was not
filed to set aside the sales within three
years from the date of demise of minor
Palanivel?
2.7 The High Court held that alienations made by
Balaraman can be construed only as a voidable
alienations and not void alienations. High
Court held that plaintiffs suit ought to have
been filed within 03 years as per Article 60
of the Limitation Act. All substantial
questions of law were decided in favour of
the defendants-respondents. High Court
dismissed the second appeal. Aggrieved
against the judgment, this appeal has been
filed.
3. Shri V. Prabhakar, learned counsel for the
appellants in support of the appeal contends that
Article 60 of the Limitation Act shall not apply and
the suit was rightly held to be governed by Article
65 by the trial court, which was well within time.
It is submitted that the option to repudiate the
action on behalf of the minor having been exercised
8
by mother of the minor, the sale deed executed by
Balaraman become void from its inception. Sale deeds
executed by Balaraman were without permission of the
Court and were without legal necessity, hence was
rightly repudiated by his mother Lakshmi Ammal. On
the strength of repudiation of the alienation by
Lakshmi Ammal, the sale deeds become void and there
was no necessity for praying for setting aside the
sale deeds and suit for declaration and possession
was fully maintainable. Article 60 would have been
applicable only if the suit was filed for setting
aside the sale deeds.
4. Ms. V. Mohana, learned senior counsel appearing
for the respondents refuting the submissions of the
counsel for the appellants contends that suit was
clearly barred by time, it having been not filed
within 03 years from the date of death of the minor.
It is further submitted that release deed dated
24.03.1986 cannot be accepted as repudiation of the
sale deeds. It is submitted that without praying for
setting aside the sale deeds, the decree of
possession could not have been claimed by the
9
plaintiffs. Limitation was governed by Article 60 of
the Limitation Act.
5. Learned counsel for the parties have relied on
various judgments, which shall be referred to and
considered while considering the submissions in
detail.
6. From the submissions of the learned counsel for
the parties and pleadings on record, following are
the issues, which arise for consideration in this
appeal:-
(i) Whether the suit filed by the plaintiffs-
appellants was barred by limitation?
(ii) Whether without praying for setting aside
the sale deeds executed by Balaraman, the
suit for declaration and possession was
maintainable?
(iii) Whether the plaintiffs can successfully
contend that by execution of release deed
dated 24.03.1986 by Lakshmi Ammal, sale
deeds executed by Balaraman were
successfully repudiated?
10
Issue No. 1
7. The trial court has held that suit has been filed
within time relying on Article 65 whereas the
Appellate Court as well as the High Court relied on
Article 60 and held that suit was barred by time.
Part IV of the Limitation Act, which deals with suits
relating to “Decrees and instruments” contains
Articles 59 and 60. Article 60 is as follows:- “_________________________________________________ Description of suit Period of Time from which
Limitation period begins to run __________________________________________________________
60 To set aside a transfer of property made by the guardian of a ward-
(a)by the ward who has attained majority.
(b)by the ward's legal representative-
Three years When the ward attains majority.
i) When the ward dies within three years from the date of attaining majority.
Three years When the ward attains majority.
ii) When the ward dies before attaining majority.”
Three years When the ward dies.
8. Article 65 is contained in Part V (suits relating
to immovable properties), which is as follows:-
“65. For possession of immovable Twelve Years When the possession of property or any interest therein the defendant becomes based on title. adverse to the plaintiff.
Explanation.- For the purposes of this article-
11
(a) Where the suit is by a remainderman, a reversioner (other than a landlord) or a devisee, the possession of the defendant shall be deemed to become adverse only when the estate of the remainderman, reversioner or devisee, as the case may be, falls into possession;
(b) where the suit is by a Hindu or Muslim entitled to the possession of immovable property on the death of a Hindu or Muslim female, the possession of the defendant shall be deemed to become adverse only when the female dies;
(c) where the suit is by a purchaser at a sale in execution of a decree when the judgment- debtor was out of possession at the date of the sale, the purchaser shall be deemed to be a representative of the judgment-debtor who was out of possession.”
9. Article 60(b)(ii) refers to a suit when a ward
dies before attaining majority. The present is a
case where Palanivel died on 11.02.1986 before
attaining majority, his date of birth being
16.07.1978, the limitation to avoid instrument made
12
by guardian of the ward is 03 years from the death of
ward when he dies before attaining majority. This
Court had occasion to consider Articles 60 and 65 of
the Limitation Act in reference to alienation made by
a de-facto guardian of a minor. In the case of
Madhukar Vishwanath Vs. Madahav and Others, (1999) 9
SCC 446, the maternal uncle of the appellant has
executed a sale deed. The appellant after becoming
major on 22.08.1966 filed a suit on 07.02.1973
praying that transferors be required to deliver the
possession of the property. On behalf of appellant,
Article 65 was relied for the purposes of limitation.
This Court held that it is Article 60 and not Article
65, which is applicable. Paragraph No. 4 and 5 of
the judgment are relevant, which are quoted as
below:-
“4. XXXXXXXXX
That the defendant, Baburao Madhorao Puranik, was the appellant’s de facto guardian had been established and, therefore, the disposal by him of the said property was void. Being void, it was open to the appellant to file the suit for possession of the said property and the period for limitation for such suit was prescribed by Article 65.
13
5. ……………………Even if the suit was entertained as pleaded, no decree for possession could have been passed without first finding that the alienation was not for legal necessity and was, therefore, bad in law. To such a suit the provisions of Article 60 apply. Article 60 relates to a suit to set aside a transfer of property made by the guardian of a ward by the ward who has attained majority and the period prescribed is three years commencing on the date on which the ward attains majority………………………”
10. This Court in Narayan Vs. Babasaheb and Others,
(2016) 6 SCC 725 again had occasion to consider
Article 60 of the Limitation Act. In the above case,
this Court held that a suit by minor for setting
aside the sale of his property by his guardian is
governed by Article 60 of the Limitation Act. In
Paragraph Nos. 25 and 26, following was laid down:-
“25. A close analysis of the language of Article 60 would indicate that it applies to suits by a minor who has attained majority and further by his legal representatives when he dies after attaining majority or from the death of the minor. The broad spectrum of the nature of the suit is for setting aside the transfer of immovable property made by the guardian and consequently, a suit for possession by avoiding the transfer by the guardian in violation of Section 8(2) of the 1956 Act. In essence, it is nothing more than seeking to set aside the transfer and grant consequential relief of possession.
14
26. There cannot be any doubt that a suit by quondam minor to set aside the alienation of his property by his guardian is governed by Article 60. To impeach the transfer of immovable property by the guardian, the minor must file the suit within the prescribed period of three years after attaining majority.”
11. Now, coming to Article 65, on which reliance has
been placed by learned counsel for the appellants.
The said period of limitation is available when suit
is filed for possession of immovable property on any
interest therein based on title. The present is a
case where by registered sale deeds the property was
conveyed by the father of the minor was eonominee
party. Thus, when sale deed was executed by Balaraman
he purported to convey the right of the minor also.
The sale deeds being voidable and not void,
plaintiffs cannot rely on Article 65. We, thus, are
of the view that first Appellate Court and the High
Court has rightly held that limitation for suit was
governed by Article 60 and the suit was clearly
barred by time.
12. It is important to find from the sale deed what
was conveyed. This we say, as appellant has a case
15
that the father of the minor was given a life estate
and after his death alone the minor was to get a
right. In this regard we may notice the distinction
between a vested right and a contingent right. Vested
right is the subject matter of Section 19 of the
Transfer of Property Act whereas a contingent
interest is dealt with Section 21 of the Transfer of
Property Act. Since the life estate followed by an
absolute right is created by a will, the relevant
provision is Section 119 of the Indian Succession
Act, 1925. Section 119 reads as follows:
“119. Date of vesting of legacy when payment or possession postponed.—Where by the terms of a bequest the legatee is not entitled to immediate possession of the thing bequeathed, a right to receive it at the proper time shall, unless a contrary intention appears by the Will, become vested in the legatee on the testator’s death, and shall pass to the legatee’s representatives if he dies before that time and without having received the legacy, and in such cases the legacy is from the testator’s death said to be vested in interest.
Explanation.—An intention that a legacy to any person shall not become vested in interest in him is not to be inferred merely from a provision whereby the payment or possession of the thing bequeathed is postponed, or whereby a prior interest therein is bequeathed to some other person, or whereby the income arising from the fund
16
bequeathed is directed to be accumulated until the time of payment arrives, or from a provision that, if a particular event shall happen, the legacy shall go over to another person.”
It is relevant that we notice illustration No.(iii)
which reads as follows:
“(iii) A fund is bequeathed to A for life, and after his death to B. On the testator’s death the legacy to B becomes vested in interest in B.”
Therefore, the absolute right bequeathed in favour of
Palanivel became vested in him upon the death of
Petha Gounder.
Issue No.2
13. In the present case, there is no dispute that
sale deeds executed by Balaraman on behalf of himself
and his minor son Palanivel were executed without
obtaining permission of the Court. Section 8 of the
Hindu Minority & Guardianship Act, 1956, which is
relevant is as follows:-
8. Powers of natural guardian.- (1) The natural guardian of a Hindu minor has power, subject to the provisions of this section, to do all acts which are necessary or reasonable and proper for the benefit of the minor or for the realisation, protection or benefit of the minor's estate; but the guardian can in no case bind the minor by a personal covenant.
17
(2) The natural guardian shall not, without the previous permission of the court,-
(a) mortgage or charge, or transfer by sale, gift, exchange or otherwise any part of the immovable property of the minor or
(b) lease any part of such property for a term exceeding five years or for a term extending more than one year beyond the date on which the minor will attain majority.
(3) Any disposal of immovable property by a natural guardian, in contravention of subsection (1) or sub-section (2), is voidable at the instance of the minor or any person claiming under him.
(4) No court shall grant permission to the natural guardian to do any of the acts mentioned in sub-section (2) except in case of necessity or for an evident advantage to the minor.
(5) The Guardians and Wards Act, 1890 (8 of 1890), shall apply to and in respect of an application for obtaining permission of the court under sub-section (2) in all respects as if it were an application for obtaining the permission of the court under section 29 of that Act, and in particular-
(a) proceedings in connection with the application shall be deemed to be proceedings under that Act within the meaning of section 4A thereof.
(b) the court shall observe the procedure and have the powers specified in sub-sections (2), (3) and (4) of section 31 of that Act; and
18
(c) an appeal shall lie from an order of the court refusing permission to the natural guardian to do any of the acts mentioned in sub-section (2) of this section to the court to which appeals ordinarily lie from the decisions of that court.
(6) In this section, "Court" means the city civil court or a district court or a court empowered under section 4A of the Guardians and Wards Act, 1890 (8 of 1890), within the local limits of whose jurisdiction the immovable property in respect of which the application is made is situate, and where the immovable property is situate within the jurisdiction of more than one such court, means the court within the local limits of whose jurisdiction any portion of the property is situate.”
14. This Court time and again has considered the
cases of alienation by natural guardian in
contravention of Section 8 and Section 8(2) of the
1956 Act. This Court held that sale deed in
violation of Section 8(1) and 8(2) is a voidable sale
deed. Voidable has been defined in Black’s Law
Dictionary, Tenth Edition as under:-
“Valid until annulled; esp., (of a contract) capable of being affirmed or rejected at the option of one of the parties. This term describes a valid act that may be voided rather than an invalid act that may be ratified.”
19
15. Salmonds on Jurisprudence, Twelfth Edition has
noticed the distinction between Valid, Void and
Voidable in following passage:-
“… A valid agreement is one which is fully operative in accordance with the intent of the parties. A void agreement is one which entirely fails to receive legal recognition or sanction, the declared will of the parties being wholly destitute of legal efficacy. A voidable agreement stands midway between these two cases. It is not a nullity, but its operation is conditional and not absolute. By reason of some defect in its origin it is liable to be destroyed or cancelled at the option of one of the parties to it. On the exercise of this power the agreement not only ceases to have any efficacy, but is deemed to have been void ab initio. The avoidance of it relates back to the making of it. The hypothetical or contingent efficacy which has hitherto been attributed to it wholly disappears, as if it had never existed. In other words, a voidable agreement is one which is void or valid at the election of one of the parties to it.”
16. This Court in Dhurandhar Prasad Singh Vs. Jai
Prakash University and Others, (2001) 6 SCC 534 had
noted the distinction between Void and Voidable. In
Paragraph No. 22, following has been laid down:-
“22. Thus the expressions “void and voidable” have been the subject-matter of
20
consideration on innumerable occasions by courts. The expression “void” has several facets. One type of void acts, transactions, decrees are those which are wholly without jurisdiction, ab initio void and for avoiding the same no declaration is necessary, law does not take any notice of the same and it can be disregarded in collateral proceeding or otherwise. The other type of void act, e.g., may be transaction against a minor without being represented by a next friend. Such a transaction is a good transaction against the whole world. So far as the minor is concerned, if he decides to avoid the same and succeeds in avoiding it by taking recourse to appropriate proceeding the transaction becomes void from the very beginning. Another type of void act may be which is not a nullity but for avoiding the same a declaration has to be made. Voidable act is that which is a good act unless avoided, e.g., if a suit is filed for a declaration that a document is fraudulent and/or forged and fabricated, it is voidable as the apparent state of affairs is the real state of affairs and a party who alleges otherwise is obliged to prove it. If it is proved that the document is forged and fabricated and a declaration to that effect is given, a transaction becomes void from the very beginning. There may be a voidable transaction which is required to be set aside and the same is avoided from the day it is so set aside and not any day prior to it. In cases where legal effect of a document cannot be taken away without setting aside the same, it cannot be treated to be void but would be obviously voidable.”
17. In Vishwambhar and Others Vs. Laxminarayan (Dead)
Through LRs. and Another, (2001) 6 SCC 163, which was
21
a case of challenge to alienation without Court’s
sanction and without legal necessity, this Court
held that the alienation by natural guardian was
voidable. In the above case, the mother, natural
guardian of two minors has executed the sale deed
before they attained majority. Minors after
attaining majority had filed suit pleading that sale
deeds are not binding and operative on the legal
rights of plaintiff, and prayed that the said sale
deeds be set aside to the extent of their share and
the suit for possession of the land be decreed. In
the above case, after considering Section 8 this
Court held that sale deeds were voidable at the
instance of the plaintiff. This Court further held
that if the plaintiffs were required to have the sale
deeds set aside before making any claim in respect of
suit properties sold then a suit without such a
prayer was of no avail to the plaintiffs. Following
was held in Paragraph No.9:-
“9. …………………………………The question is, in such circumstances, are the alienations void or voidable? In Section 8(2) of the Hindu Minority and Guardianship Act, 1956, it is laid down, inter alia, that the natural guardian shall not, without previous permission of the court, transfer by sale
22
any part of the immoveable property of the minor. In sub-section (3) of the said section, it is specifically provided that any disposal of immoveable property by a natural guardian, in contravention of sub- section (2) is voidable at the instance of the minor or any person claiming under him. There is, therefore, little scope for doubt that the alienations made by Laxmibai which are under challenge in the suit were voidable at the instance of the plaintiffs and the plaintiffs were required to get the alienations set aside if they wanted to avoid the transfers and regain the properties from the purchasers. As noted earlier in the plaint as it stood before the amendment the prayer for setting aside the sale deeds was not there, such a prayer appears to have been introduced by amendment during hearing of the suit and the trial court considered the amended prayer and decided the suit on that basis. If in law the plaintiffs were required to have the sale deeds set aside before making any claim in respect of the properties sold, then a suit without such a prayer was of no avail to the plaintiffs. In all probability, realising this difficulty the plaintiffs filed the application for amendment of the plaint seeking to introduce the prayer for setting aside the sale deeds. Unfortunately, the realisation came too late. Concededly, Plaintiff 2 Digamber attained majority on 5-8-1975 and Vishwambhar, Plaintiff 1 attained majority on 20-7-1978. Though the suit was filed on 30-11-1980 the prayer seeking setting aside of the sale deeds was made in December 1985. Article 60 of the Limitation Act prescribes a period of three years for setting aside a transfer of property made by the guardian of a ward, by the ward who has attained majority and the period is to be computed from the date when the ward attains majority. Since the limitation
23
started running from the dates when the plaintiffs attained majority the prescribed period had elapsed by the date of presentation of the plaint so far as Digamber is concerned. Therefore, the trial court rightly dismissed the suit filed by Digamber. The judgment of the trial court dismissing the suit was not challenged by him. Even assuming that as the suit filed by one of the plaintiffs was within time the entire suit could not be dismissed on the ground of limitation, in the absence of challenge against the dismissal of the suit filed by Digamber the first appellate court could not have interfered with that part of the decision of the trial court. Regarding the suit filed by Vishwambhar, it was filed within the prescribed period of limitation but without the prayer for setting aside the sale deeds. Since the claim for recovery of possession of the properties alienated could not have been made without setting aside the sale deeds the suit as initially filed was not maintainable. By the date the defect was rectified (December 1985) by introducing such a prayer by amendment of the plaint the prescribed period of limitation for seeking such a relief had elapsed. In the circumstances, the amendment of the plaint could not come to the rescue of the plaintiff.”
18. To the same effect is the judgment of this Court
in Madhegowda (dead) by LRs. Vs. Ankegowda (dead) by
LRs. and Others, (2002) 1 SCC 178, where in Paragraph
No. 25, following has been held:-
“25.……………………The minor, on attaining majority, can repudiate the transfer in any manner as and when occasion for it arises.
24
After attaining majority if he/she transfers his/her interest in the property in a lawful manner asserting his/her title to the same that is sufficient to show that the minor has repudiated the transfer made by the “de facto guardian/manager”.
19. This Court further held in Nangali Amma Bhavani
Amma Vs. Gopalkrishnan Nair and Others, (2004) 8 SCC
785 that the alienation made in violation of Section
8(2) is voidable, holding it to be void would not
only be contrary to the plain words of the statute
but would also deprive the minor of the right to
affirm or ratify the transaction upon attaining
majority. Following was held in Paragraph No.8:-
“8. In view of the express language used, it is clear that the transaction entered into by the natural guardian in contravention of sub-section (2) was not void but merely voidable at the instance of the minor. To hold that the transaction in violation of Section 8(2) is void would not only be contrary to the plain words of the statute but would also deprive the minor of the right to affirm or ratify the transaction upon attaining majority…………………………….”
20. The alienations, which were voidable, at the
instance of minor or on his behalf were required to
be set aside before relief for possession can be
claimed by the plaintiffs. Suit filed on behalf of
25
the plaintiffs without seeking prayer for setting
aside the sale deeds was, thus, not properly framed
and could not have been decreed.
Issue No.3
21. The question is as to whether by execution of the
release deed dated 24.03.1986 in favour of the
plaintiffs, there was repudiation of the alienation
made by Balaraman. The release deed has been brought
on the record as Annexure P-1. A perusal of the
release deed does not indicate that there is any
reference of alienation made by Balaraman in favour
of the defendants. There being no reference of the
alienation made by Balaraman on behalf of minor,
there is no occasion to read release deed as
repudiation of the claim on behalf of the minor.
Section 8(3) gives a right to the minor or any person
claiming under him, the relevant words in Section
8(3) are “at the instance of the minor or any person
claiming under him.” Thus, alienation made on behalf
of the minor can be avoided by minor or any person
claiming under him. In event, minor dies before
26
attaining majority, obviously, his legal heirs will
have right to avoid the alienation. 22. The submission raised by the learned counsel for
the respondents is that for avoiding sale of
immovable property of a minor as contemplated under
sub-section (3) of Section 8, the minor or any person
claiming under him has to bring an action i.e. to
file a suit within the limitation prescribed.
23. Learned counsel for the appellants has refuted
the submission and contended that the avoidance of a
sale of immovable property by a minor can be in any
manner. It is submitted that it is not necessary for
minor or the person claiming on his behalf to bring a
suit for avoiding a sale deed.
24. We have noticed above that sub-section (3) of
Section 8 refers to a disposal of immovable property
by a natural guardian in contravention of sub-section
(1) or sub-section (2) as voidable. When a registered
sale deed is voidable, it is valid till it is avoided
in accordance with law. The rights conferred by a
registered sale deed are good enough against the
whole world and the sale can be avoided in case the
27
property sold is of a minor by a natural guardian at
the instance of the minor or any person claiming
under him. A document which is voidable has to be
actually set aside before taking its legal effect.
This Court in Gorakh Nath Dube vs. Hari Narain Singh
and others, (1973) 2 SCC 535, while making
distinction between void and voidable document held:
“5………We think that a distinction can be made between cases where a document is wholly or partially invalid so that it can be disregarded by any court or authority and one where it has to be actually set aside before it can cease to have legal effect. An alienation made in excess of power to transfer would be, to the extent of the excess of power, invalid. An adjudication on the effect of such a purported alienation would be necessarily implied in the decision of a dispute involving conflicting claims to rights or interests in land which are the subject-matter of consolidation proceedings……”
25. In Amirtham Kudumbah vs. Sarnam Kudumban, (1991)
3 SCC 20, this Court had occasion to consider the
provisions of Section 8(3) of the Hindu Minority and
Guardianship Act, 1956. The facts of the case have
been noticed in paragraph 5 which is to the following
effect:
28
“5. The relevant facts are that the suit property belonged to one Veerammal. She had a daughter by name Kaliammal. Veerammal died shortly after she purchased the property in 1948. She left behind her husband Kandayya and their daughter Kaliammal. Subsequently, Kandayya married a second time when his daughter Kaliammal was a minor. She thereupon left her father’s house and resided with her maternal grandfather who protected and maintained her. During her minority, Kandayya sold the property on October 29, 1959 to Jainulavudeen. On April 25, 1966, Jainulavudeen in turn sold the property to the defendant-appellant. Subsequently, on May 26, 1966 the plaintiff obtained a deed of sale of the suit property in his favour from Kaliammal who had by then attained majority. The plaintiff thereafter instituted the present suit (O.S. No. 491 of 1968) against the appellant to set aside the transfer of property made by Kandayya and for recovery of its possession.”
26. One of the questions which came for consideration
in the above case was that “whether a transferee from
a minor after he attained majority, can file a suit
to set aside the alienation made by the minor’s
guardian or the said right is one to be exercised
only by the minor? A person entitled to avoid such a
sale is either the minor or any person claiming under
him. This Court held that either the minor, or his
legal representative in the event of his death, or
his successor-in-interest claiming under him by
29
reason of transfer inter vivos, must bring action
within the period prescribed for such a suit, i.e.
three years. Following is laid down in paragraph 9:
“9. The effect of this sub-section is that any disposal of immovable property by a natural guardian otherwise than for the benefit of the minor or without obtaining the previous permission of the court is voidable. A person entitled to avoid such a sale is either the minor or any person claiming under him. This means that either the minor, or his legal representative in the event of his death, or his successor-in- interest claiming under him by reason of transfer inter vivos, must bring action within the period prescribed for such a suit, i.e. three years from the date on which the minor died or attained majority, as the case may be. In the present case, the suit was brought, as found by the courts below, within three years after the minor attained majority.”
27. In Vishwambhar and others vs. Laxminarayan(Dead)
through LRs. and another (supra) this Court has
observed that if in law the plaintiffs were required
to have the sale deeds set aside before making any
claim in respect of the properties sold, then a suit
without such a prayer was of no avail to the
plaintiffs.
28. This Court time and again held that setting aside
of a sale which is voidable under Section 8(3) is
30
necessary for avoiding a registered sale deed. We
may, however, not to be understood that we are
holding that in all cases where minor has to avoid
disposal of immovable property, it is necessary to
bring a suit. There may be creation of charge or
lease of immovable property which may not be by
registered document. It may depend on facts of each
case as to whether it is necessary to bring a suit
for avoiding disposal of the immovable property or it
can be done in any other manner. We in the present
case are concerned with disposal of immovable
property by natural guardian of minor by a registered
sale deed, hence, we are confining our consideration
and discussion only with respect to transfer of
immovable property by a registered deed by a natural
guardian of minor.
29. The Limitation Act, 1963 has been enacted by the
Parliament after the enactment of Hindu Minority and
Guardianship Act, 1956. Article 60 of the Limitation
Act, 1963 which provides for limitation “suits
relating to decrees and instruments”. The Limitation
Act contemplates suit to set aside a transfer of
property made by the guardian of a ward for which 31
limitation is contemplated as three years. Article 60
of the Limitation Act although provides for a
limitation of a suit but also clearly indicates that
to set aside a transfer of property made by the
guardian of a ward a suit is contemplated.
30. We may notice a judgment of this Court reported
in Madhegowda (Dead) by LRs. vs. Ankegowda (Dead) by
LRs. and others, (2002) 1 SCC 178. This Court in the
above case had occasion to consider Section 11 of the
Hindu Minority and Guardianship Act, 1956. In the
above case sister of a minor acting as guardian sold
immovable property by registered sale deed. In the
above reference this Court had made following
observations:
“25………Undoubtedly Smt Madamma, sister of the minor, is not a “guardian” as defined in Section 4(b) of the Act. Therefore, she can only be taken to be a “de facto guardian” or more appropriately “de facto manager”. To a transfer in such a case Section 11 of the Act squarely applies. Therefore, there is little scope for doubt that the transfer of the minor’s interest by a de facto guardian/manager having been made in violation of the express bar provided under the section is per se invalid. The existence or otherwise of legal necessity is not relevant in the case of such invalid transfer. A transferee of such an alienation
32
does not acquire any interest in the property. Such an invalid transaction is not required to be set aside by filing a suit or judicial proceeding. The minor, on attaining majority, can repudiate the transfer in any manner as and when occasion for it arises. After attaining majority if he/she transfers his/her interest in the property in a lawful manner asserting his/her title to the same that is sufficient to show that the minor has repudiated the transfer made by the “de facto guardian/manager”.”
31. The above observations were made by this Court in
the context of Section 11 of the Act, 1956. Section
11 of the Act contains a statutory prohibition on “de
facto guardian” of the minor from disposing of the
property of the minor. The transfer made by de facto
guardian is, thus, void and can be repudiated in any
manner. It is well settled that it is not necessary
for a minor or any person claiming under him to file
a suit for setting aside a void deed. A void deed can
be ignored. The above observations cannot be held to
be applicable to transfer made by a natural guardian
under Section 8(3) of the Act.
32. We may notice one more judgment of this Court
relied on by the learned counsel for the appellants
that is G. Annamalai Pillai vs. District Revenue
33
Officer and others, (1993) 2 SCC 402. The question
which arose for consideration in the said case has
been noticed in paragraph 1 of the judgment in
following words:
“1. The short question for consideration in this appeal is whether lease deed in dispute, which was voidable in terms of Section 8(3) of the Hindu Minority and Guardianship Act, 1956 (the Act) when validly avoided, was effective from the date of the lease deed so as to make the transaction void and unenforceable from the very inception.”
33. The land in dispute was owned by one Janarthanan.
His father, Purushothaman executed a registered lease
deed in favour of appellant on 12.12.1971 on which
date the owner was minor. The appellant filed
application before Tehsildar to be registered as a
tenant which was contested by Janarthanan.
Janarthanan contended that his father has no right or
title to deal with land and lease by his father is in
contravention of Section 8 of Hindu Minority and
Guardianship Act, 1956. Tehsildar held that there was
no valid lease which order was confirmed by the High
Court against which judgment appeal was filed. In
paragraphs 5 and 6 following has been laid down:
34
“5. We have heard learned counsel for the parties. We have been taken through the orders of the Revenue authorities, judgment of the learned Single Judge and of the Division Bench of the High Court in writ appeal. The Division Bench of the High Court, in a lucid judgment, answered the question — posed by us in the beginning — in the affirmative and against the appellant-Annamalai Pillai on the following reasoning:
“We have already seen that clause (3) of Section 8 of the Hindu Minority and Guardianship Act, 1956, specifically makes the transaction voidable. The lease executed by the guardian in this case is prohibited and in that sense it was without any authority. On the legal efficacy and the distinction between valid, void and voidable agreements, we find the following passage in Salmond on Jurisprudence, Twelfth Edition at page 341:
‘… A valid agreement is one which is fully operative in accordance with the intent of the parties. A void agreement is one which entirely fails to receive legal recognition or sanction, the declared will of the parties being wholly destitute of legal efficacy. A voidable agreement stands midway between these two cases. It is not a nullity, but its operation is conditional and not absolute. By reason of some defect in its origin it is liable to be destroyed or cancelled at the option of one of the parties to it. On the exercise of this power the agreement not only ceases to have any efficacy, but is deemed to have been void ab initio. The avoidance of it relates back to the making of it. The hypothetical or contingent efficacy
35
which has hitherto been attributed to it wholly disappears, as if it had never existed. In other words, a voidable agreement is one which is void or valid at the election of one of the parties to it.’
This distinction has also been judicially noticed in the Privy Council judgment reported in Satgur Prasad v. Harnarain Das and in the Division Bench judgment in S.N.R. Sundara Rao and Sons, Madurai v. CIT. The Division Bench held, following the said Privy Council judgment as follows:
‘When a person, who is entitled to dissent from the alienation, does so, his dissent is in relation to the transaction as such and not merely to the possession of the alienee on the date of such dissent. The effect of the evidence is,
therefore, to get rid of the transaction with the result that in law it is as if the transaction had never taken place.’
We have, therefore, no doubt that when the fifth respondent avoided the lease executed by his father, the fourth respondent, the lease became void from its inception and no statutory rights, could, therefore, accrue in favour of the appellant herein.”
6. We agree with the reasoning and the conclusions reached by the Division Bench of the High Court and as such this appeal has to be dismissed.”
34. Learned counsel for the appellants relying on the
above decision contends that sale by Balaraman when
has been avoided by release deed it became void from
36
the very beginning. There can be no quarrel to the
proposition laid down in G. Annamalai Pillai vs.
District Revenue Officer and others(supra). In the
present case there having been no repudiation of sale
deed on behalf of minor, the question of voidable
sale deed becoming void does not arise.
35. We are, thus, of the considered opinion that in
the present case it was necessary for the person
claiming through minor to bring an action within a
period of three years from the date of the death of
the minor to get sale deed executed by Balaraman set
aside. We, thus, conclude that the sale deeds
executed by Balaraman were not repudiated or avoided
within the period of limitation as prescribed by law.
Issue No.3 is answered accordingly.
36. In view of the foregoing discussions, we do not
find any merit in this appeal. The appeal is
dismissed accordingly.
......................J. ( ASHOK BHUSHAN )
......................J. ( K.M. JOSEPH )
New Delhi, February 25, 2019.
37