MORESHAR YADAORAO MAHAJAN vs. VYANKATESH SITARAM BHEDI(D) TR.LRS.

Case Type: Civil Appeal

Date of Judgment: 27-09-2022

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Full Judgment Text

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION  CIVIL APPEAL NOS. 5755­5756 OF 2011 MORESHAR S/O YADAORAO MAHAJAN  ...APPELLANT(S) VERSUS VYANKATESH SITARAM BHEDI (D)  THR. LRS. AND OTHERS    ...RESPONDENT(S) J U D G M E N T B.R. GAVAI, J. rd 1. These appeals challenge the judgment dated 3  July 2008 passed by the learned Single Judge of the High Court of Judicature at Bombay in Second Appeal No. 264 of 1996, thereby   allowing   the   appeal   filed   by   the   respondents th challenging the judgment dated 13   June 1996 passed by nd the   2   Additional   District   Judge,   Yavatmal   (hereinafter referred to as the “Appellate Court”) in Regular Civil Appeal No. 61 of 1990 vide which the Appellate Court confirmed the th judgment dated 28  March 1990 passed by the Civil Judge 1 (Senior   Division),   Yavatmal   (hereinafter   referred   to   as   the “trial court”) in Special Civil Suit No. 21 of 1985 filed by the appellant vide which the trial court had decreed the suit for specific performance filed by the present appellant.  The parties hereto are referred to in accordance with 2. their status as before the trial court. 3. The   plaintiff   is   a   doctor   who   was   working   in   a Government   Hospital.     The   plaintiff   was   also   in   private practice.  The plaintiff, for starting his private practice, took on rent a part of the house of the defendant.  It is the case of the   plaintiff   that   subsequently,   the   defendant   was   in financial need for his agricultural cultivation and household expenses and therefore, he suggested to the plaintiff that he should   purchase   the   said   part   of   the   house   which   the plaintiff was occupying, together with an added portion.  The plaintiff accepted the said suggestion and an agreement to th sell was entered into on 24  July 1984.  As per the terms of the said agreement to sell, the defendant agreed to sell and the   plaintiff   agreed   to   purchase   the   suit   property   for Rs.50,000/­.  The plaintiff paid an amount of Rs.24,000/­ on the date of the agreement and the defendant executed an 2 earnest note in favour of the plaintiff.  As per the terms of the agreement to sell, the sale deed was to be executed before st st 31  March 1985.  It is the case of the plaintiff that on 31 July 1984, the defendant again requested for money and on such   request,   the   plaintiff   paid   him   an   amount   of Rs.6,000/­.  It is also the case of the plaintiff that pursuant to the aforesaid payment, he was put in possession of the st suit property on 31  July 1984. 4. It is further the  case  of the  plaintiff  that he was always ready and willing to perform his part of the agreement and therefore, he informed the defendant by registered letter that he was willing to complete his part of the transaction st before 31   March 1985.   However, the defendant replied to the said notice by alleging that the transaction was of money lending and denied the execution of the sale deed.   In this background, the plaintiff filed a suit for specific performance before the trial court.   The trial court, vide judgment and th decree dated 28  March 1990, decreed the suit and directed the   defendant   to   execute   the   sale   deed   by   accepting   the balance sale consideration as per the terms of the agreement to sell.   It further directed that if the defendant failed to 3 execute the sale deed, the same should be executed through the court.  Being aggrieved thereby, the defendant preferred an   appeal   before   the   Appellate   Court   which   was   also th dismissed vide judgment dated 13  June 1996. The defendant thereafter preferred a second appeal 5. before the High Court which came to be partly allowed vide the impugned judgment.  Though the High Court denied the specific performance, it directed the defendant to refund the amount of Rs.30,000/­ along with an interest at the rate of 9% per annum from the date of the institution of the suit till its realization.  Hence, the present appeal is at the instance of the plaintiff.  6. We have heard Shri Rahul Chitnis, learned counsel appearing on behalf of the appellant and Shri Harin P. Raval, learned   Senior   Counsel   appearing   on   behalf   of   the respondents. 7. Shri   Chitnis   submitted   that   a   perusal   of   the agreement to sell would reveal that the defendant had agreed to sell the property since he needed money for farming and household expenses.   He submitted that the suit property exclusively   belonged   to   the   defendant   and   as   such,   the 4 finding of the High Court that the suit property belonged to the joint family of the defendant i.e., his wife and three sons, is untenable.  He submitted that, in any case, the sale deed was for meeting the legal necessities of the family and as such, the High Court ought not to have interfered with the concurrent findings of fact. 8. Shri Chitnis further submitted that the trial court had held that, after partition, the house had come to the share of the defendant.   He submitted that both the trial court and the Appellate Court have concurrently held that the   transaction   in   question   was   for   the   payment   of antecedent debt and as such, it was not necessary to join other members of the family or other co­owners or other co­ parceners   as   party   defendants.     He   submitted   that   the concurrent findings ought not to have been interfered with by the High Court in second appeal.  Relying on the judgment of this Court in the case of   Kasturi v. Iyyamperumal and 1 Others , he submitted that it is only the parties to a contract who are necessary parties.  He further submitted that since the contract was between the plaintiff and the defendant, it was not at all necessary to implead the defendant’s wife or 1 (2005) 6 SCC 733 5 sons as party defendants.   He therefore submitted that the High Court has erred in taking this aspect into consideration while partly allowing the second appeal. Shri Raval, on the contrary, submitted that the suit 9. property was a property jointly owned by the defendant, his wife and three sons.   He therefore submitted that the suit itself   was   not   maintainable   on   account   of   non­joinder   of other owners of the suit property. Shri Raval further submitted that the learned Single 10. Judge   of   the   High   Court   has   rightly   held   that   a   mere agreement to alienate cannot be enforced against a son on the ground that the agreement was effected by the father for a consideration which was formed by his own antecedent debts.   Shri Raval further submitted that a perusal of the plaint   itself   would   reveal   that   the   plaintiff   himself   has admitted that the suit property was owned by the defendant, his   wife   and   three   sons.   The   learned   Senior   Counsel submitted that in view of this admission, the suit filed by the plaintiff was itself not tenable.  He further submitted that the Appellate Court, after having held that the trial court has erred   in   holding   that   the   suit  property   was   the   exclusive 6 property of the defendant but was in fact a joint property of the   defendant,   his   wife   and   his   three   sons,   has   erred   in dismissing the appeal filed by the defendant. He too relies on the judgment of this Court in the case of  (supra) to Kasturi  argue that it was not possible for the trial court to pass an effective decree in the absence of necessary parties.  Relying on   the   judgment   of   this   Court   in   the   case   of   Mumbai International   Airport   Private   Limited   v.   Regency Convention   Centre   and   Hotels   Private   Limited   and 2 , he reiterated his submission that since the wife and Others sons   of   the   defendant   were   necessary   parties,   in   their absence, an effective decree could not have been passed.  He also   relies   on   the   judgment   of   this   Court   in   the   case   of 3 . Poonam v. State of Uttar Pradesh and Others 11. A perusal of the plaint would reveal that the plaintiff himself, in paragraph (2), has stated thus: “2.   That the defendant and his sons viz. (i) Laxman;   (ii)   Vivek   and   (iii)   Jayant   together with   defendant’s   wife   Sou.     Saralabai constitutes a joint Hindu family governed by Bombay   School   of   Hindu   Mitaksharia   Law. (The defendant is the Karta of the family.  The 2 (2010) 7 SCC 417 3 (2016) 2 SCC 779 7 family   inter­alia   owns   residential   premises within the limits of at Wani……” 12. The plaintiff has further averred in the plaint that in the  month  of  July   1984,  the   defendant got  into  financial difficulties and that he had no money to carry on his large cultivation.     The   defendant   also   required   money   for   his household expenses.  It is further averred that besides this, the defendant also had to pay some debts as there was no prospect   for   the   defendant   to   borrow   money   from   the creditor. It is the specific case of the defendant that initially, 13. he   had   taken   an   amount   of   Rs.24,000/­   and   thereafter, Rs.6,000/­ from the plaintiff by way of loan for his personal purposes.     The   defendant,   in   his   written   statement,   has specifically stated that each of his sons are managing their own properties and the defendant was not required to look after their properties.  The defendant has submitted that the other   members   of   the   family,   i.e.,   his  wife   and   sons   had nothing to do with the amount borrowed by him from the plaintiff.     The   defendant   has   stated   that   the   borrowed amount was spent by him for himself.   The defendant has 8 denied   that   the   said   transaction   was   binding   upon   other members of his family.  It is specifically averred by him that the said transaction was of money lending and the agreement was entered into only as a security towards the loan.   The defendant has subsequently stated thus: “It is submitted that the defendant’s sons and wife are necessary parties to this suit and their non­joinder is fettled to the suit.   The suit is liable   to   be   dismissed   for   non­joinder   of necessary   parties.     It   is   denied   that   the defendant’s   sons   must   be   deemed   to   have given their approval to the transactions.  It is submitted that deeming is always fictions and no suit can be decreed on fictions.” 14. It   is   to   be   noted   that   in   spite   of   this   specific objection, the plaintiff did not implead the defendant’s wife and sons as party defendants. Though   the   trial   court   framed   the   issue   as   to 15. whether the suit was bad in law for non­joinder of necessary parties,   it   answered   the   same   against   the   defendant   by holding that the defendant was the absolute owner of the suit property and therefore, there was no question of joinder of his wife and three sons. 9 16. The Appellate Court, vide its judgment, held that the observation of the trial court that the suit property was the exclusive property of the defendant was not correct.  It held that   though   the   property   was   partitioned,   the   property remained   as   joint   with   the   defendant,   his   wife   and   three sons. It further held that since the defendant represents the entire family and since the transaction in question was for payment of an antecedent debt, it was not necessary to join other members of the family or other co­owners or other co­ parceners. 17. This Court, in the case of   Mumbai International Airport Private Limited  (supra), has observed thus:
15.A “necessary party” is a person who ought
to have been joined as a party and in whose
absence no effective decree could be passed at
all by the court. If a “necessary party” is not
impleaded, the suit itself is liable to be
dismissed. A “proper party” is a party who,
though not a necessary party, is a person
whose presence would enable the court to
completely, effectively and adequately
adjudicate upon all matters in dispute in the
suit, though he need not be a person in favour
of or against whom the decree is to be made. If
a person is not found to be a proper or
necessary party, the court has no jurisdiction
to implead him, against the wishes of the
plaintiff. The fact that a person is likely to
secure a right/interest in a suit property, after
10
the suit is decided against the plaintiff, will not
make such person a necessary party or a
proper party to the suit for specific
performance.”
18. It could thus be seen that a “necessary party” is a person who ought to have been joined as a party and in whose absence no effective decree could be passed at all by the court. It has been held that if a “necessary party” is not impleaded, the suit itself is liable to be dismissed. 19. As   already   discussed   hereinabove,   the   plaintiff himself has admitted in the plaint that the suit property is jointly owned by the defendant, his wife and three sons.  A specific  objection was  also  taken by  the  defendant  in  his written statement with  regard  to non­joinder  of  necessary parties.   Since the suit property was jointly owned by the defendant along with his wife and three sons, an effective decree could not have been passed affecting the rights of the defendant’s wife and three sons without impleading them. Even in spite of the defendant taking an objection in that regard,   the   plaintiff   has   chosen   not   to   implead   the defendant’s wife and three sons as party defendants.  Insofar as the reliance placed by Shri Chitnis on the judgment of this 11
Court in the case ofKasturi(supra) is concerned, the
question   therein   was   as   to  whether   a  person  who   claims independent title and possession adversely to the title of a vendor could be a necessary party or not.   In this context, this Court held thus:
7.…….From the above, it is now clear that two
tests are to be satisfied for determining the question
who is a necessary party. Tests are — (1) there must
be a right to some relief against such party in
respect of the controversies involved in the
proceedings; (2) no effective decree can be passed in
the absence of such party.”
20. It can thus be seen that what has been held by this Court is that for being a necessary party, the twin test has to be satisfied.   The first one is that there must be a right to some relief against such party in respect of the controversies involved   in   the   proceedings.     The   second   one   is   that   no effective decree can be passed in the absence of such a party. In view of the plaintiff’s own admission that the suit 21. property was jointly owned by the defendant, his wife and three sons, no effective decree could have been passed in their absence. 12 22. In that view of the matter, we find that no error can be noticed in the judgment of the High Court.  The appeals are therefore liable to be dismissed. 23. In any case, the High Court, in order to balance the equities,   has   partly   decreed   the   suit   and   directed   the defendant   to   refund   an   amount   of   Rs.30,000/­   with   an interest   at   the   rate   of   9%   per   annum   from   the   date   of institution   of   the   suit   till   its   realization.     We   affirm   this direction of the High Court. 24. In the result, the appeals are dismissed.    Pending application(s), if any, shall stand disposed of in the above terms. No order as to costs. …..….......................J. [B.R. GAVAI] …….......................J.        [C.T. RAVIKUMAR] NEW DELHI; SEPTEMBER 27, 2022. 13