When there are mysterious circumstances surrounding the execution of settlement deed and when the executant himself was never allowed to realise what he was doing then the so called settlement deed is void and this view is supported by the decision reported in AIR 1970 SC 1367 : (1970) 3 SCC 159 (Lakshmi Amma and Anr. v. Talengalanarayana Bhatta and Anr.) wherein it has been held as follows:- "Family - undue influence - whether deed of settlement was executed in circumstances which rendered it invalid and void - deed of settlement was unnatural and unconscionable document - appellant was person of weak mind and was incapable of making his own decisions and conducting his affair - no draft was prepared with approval or under direction of appellant - no valid reason given why testator should have given everything to respondent and deprived himself of right to deal with property as owner during his life time - held, execution of document was not genuine."
16. The circumstances under which Ex.A-1 settlement deed came into existence has been spelt out in the revocation deed, by the executant himself. Therefore, the recitals in the revocation deed cannot be disbelieved. When the settlement deed is invalid, the settlor has a right to execute the sale deed (Ex.B-2). The validity of revocation deed does not arise for consideration, as the settlement deed itself is not valid.
17. As the settlement deed is void, there is no necessity to file a suit to set aside the same. There is no proof to show that the settlor understood the contents of the settlement deed and then signed it or put thumb impression upon it. Therefore, there is no valid execution of document in the eye of law. The registration of the document does not cloth the document with sanctity, when the execution itself is not proved.1
was cancelled and property was sold – suit for declaration by beneficiaries under deed of settlement alleging that
deed of revocation and subsequent sale deed as invalid – trial court held that revocation is valid and upheld
subsequent sale deed as valid – appellate court confirmed trial court view – on further appeal the High Court
considered the alleged circumstances of the execution of the settlement deed and expressed that execution to be
proved by parties relying upon the document by examining at least one of the witnesses – further opined that
unless validity of the settlement is established the question of revocation of settlement permissible – Second
Appeal dismissed.1
Citation;2013 (1) TLNJ 296 (Civil)
Madras High Court
P.Sivabushanam vs E.Sivamani on 26 September, 2012
The plaintiffs are the appellants. The second appeal has been filed against the decree and judgment, dated 05.12.2000, passed in A.S.No.12 of 1996 on the file of the learned Subordinate Judge, Kancheepuram, confirming the judgment and decree, dated 18.12.1995, passed in O.S.No.1713 of 1991 on the file of the learned District Munsif, Kancheepuram.
2. The substantial questions of law framed at the time of admission are as follows:-
"1.Whether the unconditional settlement will become invalid merely by revoking the same by the settlor without challenging the same before the court of law and will it not against the letter and spirit of S.126 of the Transfer of Property Act?
2. Whether the registered unconditional settlement deed viz., Ex.A.1 found in effective is correct as the same was not challenged by the settlor or interested persons in the court within the prescribed time of three years?
3. Whether the settlement deed viz., Ex.A1 went unchallenged before the court of law by the settlor except the deed of Revocation shall loose its validity by contesting the same by third parties claiming title under void and invalid sale deed Ex.B2?
4. Whether the onus of proof lies on the plaintiff with regard Ex.A.1 being the registered settlement deed executed in their favour while the validity of the same was questioned by the third parties claiming right under the void sale deed and as per S.79 of the Evidence Act is it not the duty of the persons who alleges contrary to the registered instrument should prove the same ? and
5. Whether the settlement viz., Ex.A.1 wherein the settler has affixed his thumb impression due to shivering and weak eyes sight without assigning his signatures alone shall be taken as the ground to prove against the plaintiffs while all other circumstances are in their favour?"
3. The brief facts:-
The plaintiffs are the owners of the property bearing Door No.12-B located at Chairman Swaminatha Mudaliar Street, Pillayarpalayam, Kancheepuram. The plaintiffs' grand father, Kuppuswamy Mudaliar, executed the settlement deed, dated 26.05.1981, in favour of the plaintiff out of love and affection. The settlement deed was accepted and acted upon and the tax assessment was altered to the name of the plaintiffs in the municipal records. Though in the settlement deed it was mentioned as undivided half share, it was actually a divided half share, which is the back portion of door No.12-A. The front portion had been allotted to one Ekambaram and after his death, to his legal heirs i.e., his son-the first defendant, his wife-the second defendant and his two daughters.
4. The defendants colluded with the settlor, Kuppuswamy Mudaliar and after purporting to have cancelled the settlement deed they got the sale deed, dated 04.11.1981 from Kuppuswamy Mudaliar as if Kuppuswamy Mudaliar, had title to the suit property. Both the revocation deed as well as the sale deed are illegal and invalid. The settlement deed cannot be revoked as the executant did not reserve any power of revocation. Therefore, neither the revocation deed nor the consequent sale deed are valid. The defendants manoeuvred to obtain the sale deed in their favour when the Kuppusamy Mudaliar was not in a sound and disposing state of mind. As the defendants made hostile claim, the plaintiffs have filed the suit for declaration of title. The defendants have prayed for alternative relief of decree for partition and separate possession of half share, preferably the back portion.
5. The suit was contested by the defendants under the following contentions:-
(i) The so-called settlement deed was not executed by Kuppuswamy Mudaliar;
(ii) The alleged settlement deed was not executed freely, voluntarily and willingly;
(iii) By making Kuppuswamy Mudaliar in an unconscious state, by injecting sedatives, thumb impression was obtained in a document purporting to be a settlement deed;
(iv) On coming to know of the circumstances, Kuppuswamy Mudaliar executed a revocation deed on 04.08.1981;
(v) Kuppuswamy Mudaliar sold the property in favour of the first defendant on 04.11.1981;
(vi) Registered partition deed was executed on 10.06.1981 regarding the suit property and other items and in that suit property was allotted to the share of the first defendant;
(vii) The suit is barred by limitation as the plaintiffs did not question the revocation deed and the sale deed within the period of three years from the date of attaining majority;
6. The trial court framed the following six issues:-
(i) Whether the deed of settlement executed in favour of the plaintiffs came to be executed under suspicious circumstances?
(ii) Whether the revocation of settlement deed is valid?
(iii) Whether the sale in favour of the first defendant is valid?
(iv) Whether the suit is barred by limitation?
(v) Whether the plaintiffs are entitled to declaration and injunction?
(vi) To what other relief?
7. On issue nos.1 to 3 it was held that the settlement deed is invalid and the revocation deed is valid. Consequently, the validity of the sale deed executed by Kuppuswamy Mudaliar in favour of the first defendant has also been upheld. The trial court has considered the following circumstances while holding so, viz., the plaintiffs claim of title under Ex.A-1 settlement deed. This settlement deed has been revoked by the settlor himself, under Ex.B-1-revocation deed, and thereafter the very same property has been sold to the first defendant under Ex.B-2-document.
8. Now the question is whether Ex.A-1-settlement deed is valid or Ex.B-2-sale deed is valid. As Ex.A-1 settlement deed is earlier in point of time and as the power to revoke the settlement deed is under challenge, what is the validity of Ex.B-2 sale deed which came into existence by virtue of Ex.B-1 revocation deed is the issue to be decided. The validity of Ex.A-1-settlement deed, Ex.B-1 revocation deed and Ex.B-2-sale deed have to be considered together.
9. Learned counsel for the appellants pointed out that under Ex.A-1 it is specifically stated that the settlement deed is irrevocable. No doubt, such recital is there under Ex.A-1-settlement deed. The recital did not stop with the statement that there is no power of revocation, but it is also with a recital that the statement was made truly.
10. Now the question is whether the alleged statement as found in the so called settlement deed was truly made and it is valid? In other words, when the validity of the settlement deed itself is challenged on the ground of fraud and coercion and in the absence of establishment of the validity of settlement deed the question of validity of revocation will not arise for consideration. Only after proving the validity of the settlement deed and if it is found to be valid, only then the question of validity of revocation have to be considered.
11. While considering the genuineness / validity of the settlement deed, the following circumstances has to be taken into consideration:-
(i) The admission made by P.W.1 during cross examination is that the executant Kuppuswamy Mudaliar was in the habit of signing the document and the signature of Kuppuswamy Mudaliar as found in the revocation deed-Ex.B-1 is that of Kuppuswamy Mudaliar himself. But under Ex.A-1-settlement deed, signature of Kuppuswamy Mudaliar is not found, but thumb impression alone is found. (ii) When there are recitals in the revocation deed to the effect that Kuppuswamy Mudaliar used to put signature in the bank while withdrawing money and also that in the police complaints he has put his signature, it is the duty of the plaintiffs to offer valid explanation as to why Kuppuswamy Mudaliar did not put the signature in Ex.A-1 settlement deed and instead, put his thumb impression. That has not been done. No doubt, under Ex.A-1, it is mentioned that due to old age and poor eyesight, the settlor was not able to sign, but that is proved incorrect because the settlor has put his signature in the subsequent documents. (iii) On the side of the plaintiffs, excepting the first plaintiff no other witness has been examined. The first plaintiff is the beneficiary under the settlement deed. He has not signed as a witness in the settlement deed. It is not even stated in the evidence that the executant signed the document after fully understanding the contents of the document. Therefore, the evidence of P.W.1 would not prove the execution of settlement deed. (iii) (a) The recitals in the Revocation Deed can be construed as circumstances relating to execution of the settlement deed, dated 29.06.1981. It is specifically stated in the Revocation Deed that the executant was administered sedatives and the thumb impression was taken while the executant was in an unconscious state. When such is the version of the executant himself in the Revocation Deed under Ex.B-1, then it is the duty of the beneficiaries under the settlement deed to prove due execution of the settlement deed. (iv) The word 'execution' means the party affixing his signature or mark, signifying his assent to the contents of the document. Admission of signature would not amount to admission of execution. In other words, admission of signature and admission of execution are not synonyms. Viewed in this context, the contention that execution of settlement deed is deemed to have been admitted by virtue of execution of Revocation Deed cannot be accepted. (v) The settlement deed is a document which requires attestation by at least two witnesses (under Section 23 of the Transfer of Property Act). In order to prove the document under Section 68 of the Indian Evidence Act, at least one attesting witness ought to have been examined. When such is a requirement, the plaintiffs ought to have examined atleast one of the attesting witnesses and that has not been done. (vi) P.W.1 claims to have been present at the time of execution of Ex.A-1 document but he denies knowledge about contents of Exs.A-5 and A-6, the documents which were executed on the same day.
Those circumstances go to show that the settlement deed ought to have been brought into existence by manoeuvring.
(vii) P.W.1 has admitted that he did not chose to question the executant Kuppuswamy Mudaliar about the sale deed after coming to know about the executing of the sale deed, in favour of the first defendant. If really Ex.A-1-settlement deed is valid, then the natural conduct of P.W.1 would have been to question immediately, regarding the execution of sale deed in respect of the same property by the very same person. The silence on the part of P.W.1 speaks louder about the fake transaction, than his omission to examine the witnesses to speak about the circumstances under which the settlement deed came into existence.
12. The learned counsel for the appellant relied upon the following decisions, contenting that the settlement deed cannot be validly revoked.
(i) 1997 (1) CTC 256 (Kuppuswami Mudali, J v. Mahalingam), where-under it has been held that once it is proved that settlement deed has been accepted and acted upon, it cannot be revoked.
(ii) AIR 2003 MADRAS 27 (Perumal v. Rajamanickam), wherein it has been held that it is settled law that when a gift once made cannot be capriciously recalled by the donor, for a transfer by gift is complete and binding on the parties when once completed, as any other form of transfer. (iii) 1978 MLJ 259 (Mariyam Bivi v. Natharsa Rowther Trust), where-under, it has been held as follows:-
"6. I must, however, reject the above arguments. I do so, not in derogation of the rules of evidence quoted by learned counsel, but in affirmation of a special rule of evidence, appropriate in this case, found in Section 60(2) of the Indian Registration Act, 1908. Under this provision, where registration is granted by any registering authority to any instrument, such a certificate shall be admissible for the purpose of proving that the document had been duly registered in the manner provided by the Act and that the facts set out by the registering authority in the endorsements made by him in the instrument had all occurred as therein mentioned. This provision, no doubt, enacts only a rebutable presumption as to the facts relating to the validity of registration, but the effect of the provision, all the same, is to place the burden of proof squarely and unmistakably on the party who denies registration or its validity. In the present case, the appellant's definite plea in the written statement was that Natharsa Rowther died within 16 days of the execution of the document. This was not made out at the trial by way of evidence, I have, therefore, no hesitation in rejecting the contention that the registration of the trust deed was obtained by Natharsa Rowther's agent after his death."
12.1. The decision reported in 1997 (1) CTC 256 (referred to supra) is applicable only when the validity of the settlement deed is proved. So far as this case is concerned, the validity of the settlement deed itself is under challenge. All the aforesaid decisions would be applicable only when the settlement deed is found to be valid. 12.2. No doubt the settlement deed is not revocable, especially when the executant did not expressly reserve the power of revocation, but the question of revocation would arise only when the validity of settlement deed is established.
13. The learned counsel for the appellants relied upon the decision reported in AIR 1974 MADRAS 36 (Rajamani Ammal v Bhoorasami Padayachi and another) and contended that the defendants ought to have brought a suit to set-aside Ex.A-1-settlement deed as it is an instrument claimed to have been obtained using fraud and coercion. In other words, the contention is that it is not a void document, but it is a voidable document and therefore, as the defendants did not file a suit to set-it-aside within a period of three years from the date of execution of Ex.A-1-settlement deed, the validity cannot be questioned now and therefore, the claim with regard to Ex.A-1 settlement deed is barred by limitation.
13.1. This contention cannot be accepted. In the very same decision, it has been pointed out that when consent to an agreement is cast by undue influence, such an agreement is a contract voidable at the option of the party whose consent was so cast and such contract may be set-aside either absolutely or upon such terms and conditions as the court may seem just. But this is a case where the circumstances clearly indicate that the execution of settlement deed itself would not amount to "execution in the eye of law". There is no proof to show that witnesses saw the executant putting the thumb impression in a conscious state. The document is a fraudulent one and it was not executed by the Settlor after knowing the contents of the document . Hence the so called settlement deed is a void document. Therefore it is not necessary to set aside the same.
14. When the settlement deed is under attack in three dimensions, the trial court ought not to have admitted the settlement deed in evidence at all, without examining atleast one of the attesting witness. This practice invited the displeasure of Madras High Court in the decision reported in 1986-99-L.W.73 : (1986) 1 MLJ 207 (P. DhanarajDhanaraj and Anr. v. M. Chellan Nadar and Ors.) wherein it has been held as follows:- "Civil - Refunding Court fee - Suit filed for refunding the Court fee - Suit decreed - Order under challenge in present appeal - Held, in the instant case when both the sides have not taken care to examine any witness on either side so as to prove the documents, it was strange that both the Courts below have taken the contents of the documents as acceptable evidence in accordance with law and taken the trouble of fixing the contents of the documents without proof regarding the case put forward by either side in their pleadings and given a decision on the cause that had arisen in the case - Order set aside - Appeal allowed.... The Court has laid down that unless the documents filed in a case are proved in accordance with the provisions of the Indian Evidence Act, the contents of the same should not be used as evidence. The decision in Manicka Mudaliar v. Shanmugasundara Mudaliar MANU/TN/0425/1981 : (1982)2MLJ301 may be looked in, in this regard. In the instant case before us, both the sides have produced certain documents which were given exhibit numbers by the trial Court. The trial Court as well as the lower appellate Court took the contents of those documents without any proof and have discussed regarding the relevancy of the same. This is something alien to the well recognised principle of law relating to evidence as available in the statute book of India. ..."
15. When there are mysterious circumstances surrounding the execution of settlement deed and when the executant himself was never allowed to realise what he was doing then the so called settlement deed is void and this view is supported by the decision reported in AIR 1970 SC 1367 : (1970) 3 SCC 159 (Lakshmi Amma and Anr. v. Talengalanarayana Bhatta and Anr.) wherein it has been held as follows:- "Family - undue influence - whether deed of settlement was executed in circumstances which rendered it invalid and void - deed of settlement was unnatural and unconscionable document - appellant was person of weak mind and was incapable of making his own decisions and conducting his affair - no draft was prepared with approval or under direction of appellant - no valid reason given why testator should have given everything to respondent and deprived himself of right to deal with property as owner during his life time - held, execution of document was not genuine."
16. The circumstances under which Ex.A-1 settlement deed came into existence has been spelt out in the revocation deed, by the executant himself. Therefore, the recitals in the revocation deed cannot be disbelieved. When the settlement deed is invalid, the settlor has a right to execute the sale deed (Ex.B-2). The validity of revocation deed does not arise for consideration, as the settlement deed itself is not valid.
17. As the settlement deed is void, there is no necessity to file a suit to set aside the same. There is no proof to show that the settlor understood the contents of the settlement deed and then signed it or put thumb impression upon it. Therefore, there is no valid execution of document in the eye of law. The registration of the document does not cloth the document with sanctity, when the execution itself is not proved.
18. The next contention of the learned counsel for the appellants is that the suit property must be partitioned and share of the appellants must be allotted. A perusal of Ex.B-2 sale deed, which is executed by Kuppuswamy Mudaliar in favour of Sivamani goes to show that there had been a partition on 21.07.1962 between Kuppuswamy Mudaliar and his three sons and therefore when Kuppuswamy Mudaliar has executed the sale deed in favour of Sivamani in respect of his separate property obtained in the partition dated 21.07.1962, there is no property left out for partition and no property is shown to be available as a property liable to the partitioned. Therefore the claim for partition also fails.
19. For the foregoing reasons, the concurrent findings of both the Courts below are upheld, though for different reasons. Hence the above second appeal is dismissed. No costs.
No comments:
Post a Comment