Friday, 15 December 2023

Supreme Court: Sale Of Minor's Property By Guardian Can Be Avoided Only By Filing Suit To Set Aside Deed Within Period as mentioned Under Art.60 of Limitation Act

  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

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.” {Para 32}

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:


“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

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

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.

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.1782 OF 2019

MURUGAN & ORS. Vs. KESAVA GOUNDER (DEAD)

THR. LRS. AND ORS.

Author: ASHOK BHUSHAN, J.

Dated: February 25, 2019.


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

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

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

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.

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

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

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

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

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

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 plaintiffsappellants

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 judgmentdebtor

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


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.

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

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

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.

(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

(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.”

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

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

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

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 subsection

(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

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.

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-ininterest

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

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:


“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

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

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.


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