Full Judgment Text
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PETITIONER:
THE JUMMA MASJID, MERCARA
Vs.
RESPONDENT:
KODIMANIANDRA DEVIAH
DATE OF JUDGMENT:
11/01/1962
BENCH:
AIYYAR, T.L. VENKATARAMA
BENCH:
AIYYAR, T.L. VENKATARAMA
KAPUR, J.L.
HIDAYATULLAH, M.
SHAH, J.C.
CITATION:
1962 AIR 847 1962 SCR Supl. (2) 554
ACT:
Transfer of Property-Sale by reversioner for
consideration-Fraudulent or erroneous
representation-Present transferable intereset,
though in fact spes successionis-Subsequent
acquisition of title-Effect-Rule of estoppel-When
to be resorted to Transfer of Property Act, 1882(4
of 1882), s. 6(a). Interpretation of Statute-
Consiruing of section-If new words could be read
into it-Illustration to a section-When could be
used to enlarge the language-If admissible in
construing a section.
HEADNOTE:
M and S claiming to be reversioners to the
estate of N sold the property in dispute to G
predecessor-in-interest of the respondents. The
sale deed recited that the property belonged to
the joint family of two brothers N and B, and on
the death of N it was inherited by his widow and
on her death it had devolved upon them as
reversioners to the state. G sued to recover
possession of the properties. The suit was
contested by the widow of B(brother of N) claiming
that the property was the self acquired property
of her husband. During the pendency of the
litigation the widow died, and G applied to the
revenue authorities to transfer the ’pattas’ in
his name. The appellants intervened alleging that
the property was gifted to them by the widow, and
S one of the reversioners had also executed a
release of the said property for a consideration.
This objection was rejected. The appellants then
sued for possession of a half share in the
properties held by the widow of B, relying upon
the gift by the widow, and the deed of surrender
by S one of the two reversioners to the estate of
N. They contended that the Vendors of the property
to G had
555
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only a spes successionis during the life time of
the widow of B, and the transfer was on that
account void and conferred no title. The heirs of
contended that the property was sold to by M and S
on a representation that the Vendor had become
entitled thereto, and the appellants as
transferees from S were estopped from asserting
that it was in fact the self-acquisition of and
that in consequence he had no title at the date of
the sale.
^
Held, that where a person transfers property
representing that he has a present interest
therein, whereas he has, in fact, only a spes
successions, the transferee is entitled to the
benefit of s. 43 of the Transfer of Property Act,
1882, if he has taken the transfer for
consideration and on the faith of the
representation.
Held, further, that apart from the exception
in favour of transferees for consideration in good
faith and without notice of the rights under the
prior transfer s. 43 of the Transfer of Property
Act is absolute and unqualified in its operation.
It applies to all transfers which fulfil the
conditions prescribed therein, and it makes no
difference in its application whether the defect
of title in the transferor arises by reason of his
having no interest in the property, or of his
interest therein being that of an expectant heir.
The section deals with transfers which fail for
want of title in the transferor and not want of
capacity in him at the time of transfer. It
embodies a rule of estoppel and enacts that a
person who makes a representation shall not be
heard to allege the contrary as against a person
who acts on the representation. It is immaterial
whether the transferor acts bona fide or
fraudulently in making the representation. It is
only material to find out whether in fact the
transferee has been misled. In view of the
specific provision of s. 43 the principle of
estoppel against a statute does not apply to
transfers prohibited by s. 6 (a) of the Act. The
two provisions operate in different fields and
under different conditions. There is no necessary
conflict between them, and the ambit of one cannot
be cut down by reference to the other. Section
6(a) enacts a rule of substantive law, while s. 43
enacts a rule of estoppel which is one of
evidence.
Held, also, that if the language of the
section clearly excludes from its purview certain
matters, it would not be legitimate to use the
illustration to the section to enlarge it. It is
not to be readily assumed that an illustration to
a section is repugnant to it and rejected.
Vickers v. Evans, (1910)79 L.J.K.B. 955,
relied on.
556
Sadiq Ali Khan v. Jai Kishori, A.I.R. 1928
P.C. 152, Gadigeppa v. Balangauda, (1931) I.L.R.
55 Bom. 741, Ajudhia Prasad v. Chandan Lal, I.L.R.
(1937) All. 860 F.B.; Mohomed Syedol Ariffin v.
Yeoh Ooi Gark; (1916) L.R. 43 I.A. 256; Levine v.
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Brougham, (1909) 25 T.L.R. 265; Leslie Ltd. v.
Sheill, [1914] 3 K B. 607 and Khan Gul v. Lakha
Singh (1928) I.L.R. 9 Lah. 701(F.B.), referred to.
Alamanaya Kunigari Nabi Sab v. Murukuti
Papiah, (1915) 29 M.L.J. 733, Shyam Narain v.
Mangal Prasad, (1935) I.L.R. 57 All. 474, Vithabai
v. Mathar Shankar, I.L.R. (1938) Bom. 155, Ram
Japan v. Jagesara Kuer, A.I.R. 1939 Pat. 116 and
Syed Bismilla v. Munulal Chabildas, A.I R. 1931
Nag. 51, approved.
Official Assignee, Madras v. Sampath Naidu,
65 M.L.J. 588 and Bindeshwari Singh v. Har Narain
Singh, (1929) I.L.R. 4 Luck. 622, disapproved.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal
No. 207 of 1956.
Appeal from the judgment and decree dated
November 5, 1952, of the Madras High Court in
Appeal No. 852 of 1948.
R. Thiagarajan and G. Gopalakrishnan, for the
appellant.
Ganapathy Iyer, for respondent No. 3.
1962. January 11. The Judgment of the Court
was delivered by
VENKATARAMA AIYAR, J.-This is an appeal
against the Judgment of the High Court of Madras,
dismissing the suit filed by the appellant, as
Muthavalli of the Jumma Masjid, Mercara for
possession of a half-share in the properties
specified in the plaint. The facts are not in
dispute. There was a joint family consisting of
three brothers, Santhappa, Nanjundappa and
Basappa. Of these, Santhappa died unmarried,
Basappa died in 1901, leaving behind a widow
Gangamma, and Najundappa died in 1907 leaving him
surviving his widow Ammakka, who succeeded to all
the family properties as his heir. On the death of
Ammakka, which took place in 1910, the estate
devolved on Basappa, Mallappa and Santhappa, the
sister’s grandsons of
557
Nanjundappa as his next reversioners. The
relationship of the parties is shown in the
following genealogical table.
Basappa
|
---------------------------------------------
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| | |
|
Santhappa Nanjundappa Basappa
Mallammal
d. 1907 d. 1901
|
=Ammakka =Gangamma
|
d.1910 ---------------
------
|
|
Ramegowda
Mallegowda
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|
|
-----------------
|
| |
|
Basappa Mallappa
Santhappa
On August 5, 1900, Nanjundappa and Basappa
executed a usufructuary mortgage over the
properties which form the subject-matter of this
litigation, and one Appanna Shetty, having
obtained an assignment thereof, filed a suit to
enforce it, O.S. 9 of 1903, in the court of the
Subordinate Judge, Coorg. That ended in a
compromise decree, which provided that Appanna
Shetty was to enjoy the usufruct from the
hypotheca till August, 1920, in full satisfaction
of all his claims under the mortgage, and that the
properties were thereafter to revert to the family
of the mortgagors. By a sale deed dated November
18, 1920, Ex. III, the three reversioners,
Basappa, Nallappa and Santhappa, sold the suit
properties to one Ganapathi, under whom the
respondents claim, for a consideration of Rs.
2,000. Therein the vendors recite that the
properties in question belonged to the joint
family of Nanjundappa and his brother Basappa,
that on the death of Nanjundappa, Ammakka
inherited them as his widow, and on her death,
they had devolved on them as the next reversioners
of the last male
558
owner. On March 12, 1921, the vendors executed
another deed, Ex. IV, by which Ex. III was
rectified by inclusion of certain items of
properties, which were stated to have been left
out by oversight. It is on these documents that
the title of the respondents rests.
On the strength of these two deeds, Ganapathi
sued to recover possession of the properties
comprised therein. The suit was contested by
Gangamma, who claimed that the properties in
question were the self-acquisitions of her husband
Basappa, and that she, as his heir, was entitled
to them. The Subordinate Judge of Coorg who tried
the suit accepted this contention, and his finding
was affirmed by the District Judge on appeal, and
by the, Judicial Commissioner in second appeal.
But before the second appeal was finally disposed
of, Gangamma died on February 17, 1933. Thereupon
Ganapathi applied to the revenue authorities to
transfer the patta for the lands standing in the
name of Gangamma to his own name, in accordance
with the sale deed Ex. III. The appellant
intervened in these proceedings and claimed that
the Jumma Masjid, Mercara, had become entitled to
the properties held by Gangamma, firstly, under a
Sadakah or gift alleged to have been made by her
on September 5, 1932, and, secondly, under a deed
of release executed on March 3, 1933, by
Santhappa, one of the reversioners, relinquishing
his half-share in the properties to the mosque for
a consideration of Rs. 300. By an order dated
September 9, 1933, Ex. II, the revenue authorities
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declined to accept the title of the appellant and
directed that the name of Ganapathi should be
entered as the owner of the properties. Pursuant
to this order, Ganapathi got into possession of
the properties.
The suit out of which the present appeal
arises was instituted by the appellant on January
2, 1945, for recovery of a half-share in the
properties that
559
had been held by Gangamma and for mesne profits.
In the plaint, the title of the appellant to the
properties is based both on the gift which
Gangamma is alleged to have made on September 5,
1932, and on the release deed executed by
Santhappa, the reversioner, on March 3, 1933. With
reference to the title put forward by the
respondents on the basis of Ex. III and Ex. IV,
the claim made in the plaint is that as the
vendors had only a spes succession is in the
properties during the lifetime of Gangamma, the
transfer was void and conferred no title. The
defence of the respondents to the suit was that as
Santhappa had sold the properties to Ganapathi on
a representation that he had become entitled to
them as reversioner of Nanjundappa, on the death
of Ammakka in 1910, he was estopped from asserting
that they were in fact the self-acquisitions of
Basappa, and that he had, in consequence, no title
at the dates of Ex. III and Ex. IV. The appellant,
it was contended, could, therefore, get no title
as against them under the release deed Ex. A,
dated March 3, 1933.
The District Judge of Coorg who heard the
action held that the alleged gift by Gangamma on
September 5, 1932, had not been established, and
as this ground of title was abandoned by the
appellant in the High Court, no further notice
will be taken of it. Dealing next with the title
claimed by the appellant under the release deed,
Ex. A executed by Santhappa, the District Judge
held that as Ganapathi had purchased the
properties under Ex. III on the faith of the
representation contained therein that the vendors
had become entitled to them on the death of
Ammakka in 1910, he acquired a good title under s.
43 of the Transfer of Property Act, and that Ex. A
could not prevail as against it. He accordingly
dismissed the suit. The plaintiff took the matter
in appeal to the High Court, Madras, and in view
of the conflict of authorities on the question in
that Court, the case was refer
560
red for the decision of a Full Bench. The learned
Judges who heard the reference agreed with the
court below that the purchaser under Ex. III had,
in taking the sale, acted on the representation as
to title contained therein, and held that as the
sale by the vendors was of properties in which
they claimed a present interest and not of a mere
right to succeed in future, s. 43 of the Transfer
of Property Act applied, and the sale became
operative when the vendors acquired title to the
properties on the death of Gangamma on February
17, 1933. In the result, the appeal was dismissed.
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The appellant then applied for leave to appeal to
this Court under Art. 133(1)(c), and the same was
granted by the High Court of Mysore to which the
matter had become transferred under s. 4 of Act 72
of 1952. That is how the appeal comes before us.
The sole point for determination in this
appeal is, whether a transfer of property for
consideration made by a person who represents that
he has a present and transferable interest
therein, while he possesses, in fact, only a spes
successionis, is within the protection of s. 43 of
the Transfer of Property Act. If it is, then on
the facts found by the courts below, the title of
the respondents under Ex. III and Ex. IV must
prevail over that of the appellant under Ex. A. If
it is not, then the appellant succeeds on the
basis of Ex A.
Section 43 of the Transfer of Property Act
runs as follows:-
"Where a person fraudulently or
erroneously represents that he is authorised
to transfer certain immovable property and
professes to transfer such property for
consideration such transfer shall, at the
option of the transferee, operate on any
interest which the transferor may acquire in
such property at any time during which the
contact of transfer subsists.
561
Nothing in this section shall impair the
right of transferees in good faith for
consideration without notice of the existence
of the said option."
Considering the scope of the section on its terms,
it clearly applies whenever a person transfers
property to which he has no title on a
representation that he has a present and
transferable interes therein, and acting on that
representation, the transferee takes a transfer
for consideration. When these conditions are
satisfied, the section enacts that if the
transferor subsequently acquires the property, the
transferee becomes entitled to it, if the transfer
has not meantime been thrown up or cancelled and
is subsisting. There is an exception in favour of
transferees for consideration in good faith and
without notice of the rights under the prior
transfer. But apart from that, the section is
absolute and unqualified in its operation. It
applies to all transfers which fulfil the
conditions prescribed therein, and it makes 1. O
difference in its application, whether the defect
of title in the transferor arises by reason of his
having no interest whatsoever in the property, or
of his interest therein being that of an expectant
heir.
The contention on behalf of the appellant is
that s. 43 must be read subject to s. 6 (a) of the
Transfer of Property Act which enacts that, "The
chance of an heir apparent succeeding to an
estate, the chance of a relation obtaining a
legacy on the death of a kinsman or any other mere
possibility of a like nature, cannot be
transferred." The argument is that if s. 43 is to
be interpreted as having application to Cases of
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what are in fact transfers of spes successionis,
that will have the effect of nullifying s. 6 (a),
and that therefore it would be proper to construe
s. 43 as limited to cases of transfers other than
those falling within . G(a). In effect, this
argument involves importing
562
into the section a new exception to the following
effect; "Nothing in this section shall operate to
confer on the transferee any title, if the
transferor had at the date of the transfer an
interest of the kind mentioned in s. 6 (a)." If we
accede. to this contention we will not be
construing s.43. but rewriting it. "We are not
entitled", observed Lord Loreburn L. C., in
Vickers v. Evans (1), "to read words into an Act
of Parliament unless clear reason for it is to be
found within the four corners of the Act itself."
Now the compelling reason urged by the
appellant for reading a further exception in s. 43
is that if it is construed as applicable to
transfers by persons who have only spes
successionis at the date of transfer, it would
have the effect of nullifying s. 6(a). But section
6(a) and s. 4 relate to two different, subjects,
and there is no necessary conflict between them;
Section 6 (a) deals with certain kinds of
interests in property mentioned therein, and
prohibits a transfer simpliciter of those
interests. Section 43 deals with representations
as to title made by a transferor who had no title
at the time of transfer, and provides that the
transfer shall fasten itself on the title which
the transferor subsequently acquires. Section 6
(a) enacts a rule of substantive law, while s. 43
enacts a rule of estoppel which is one of
evidence. The two provisions operate on different
fields, and under different conditions, and we see
no ground for reading a conflict between them or
for outing down the ambit of the one by reference
to the other. In our opinion, both of them can he
given full effect on their own terms, in their
respective spheres. To hold that transfers by
persons who have only a spes successionis at the
date of transfer are not within the protection
afforded by s. 43 would destroy its utility to a
large extent.
It is also contended that as under the law
there can be no estoppel against a statute
transfers
563
which are prohibited by s. (6a) could not be held
to be protected by s. 43. There would have been
considerable force in this argument if the
question The fell to be decided solely on the
terms of s. 6 (a). Rules of estoppel are not to be
resorted to for defeating or circumventing
prohibitions enacted by Statutes on grounds of
public policy. But here the matter does not rest
only on s. 6 (a). We have in addition, s. 43,
which enacts a special provision for the
protection of transferees for consideration from
persons who represent that they have present
title, which, in fact, they have not. And the
point for decision is simply whether on then facts
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the respondents are entitled to the benefit of
this section. If they are, as found by the courts
below, then the plea of estoppel raised by them on
the terms of the section is one pleaded under, and
not against the statute,
The appellant also sought to rely on the
decisions wherein it has been held that a plea of
estoppel could not be raised against a millor who
had transferred property on a representation that
he was of age, and that s. 43 was inapplicable to
such transfers, vide Sadiq Ali Khan v. Jai Kishori
Gadigeppa v. Balanagauda (2) Ajudhia Prasad v.
Chandan Lal(3)But the short answer to this
contention is that s. 43 deals with transfers
which fail forwant of title in the transferor and
not want of capacity in him at the time of
transfer. It may further be observed in this
connection that the doctrine of estoppel has been
held to have no application to persons who have no
contractual capacity where the claim is based on
contract, vide Mahomed Syedol Ariffin, v. Yeoh Oai
Gark (4); Levine v. Brougham (5), Leslie Ltd. s.
Sheil); Khan Gul v. Lakha Singh (7). Decisions on
transfers by minors therefore are of no assistance
in ascertaining the true scope of s. 43.
564
So far we have discussed the question on the
language of the section and on the principles
applicable thereto. There is an illustration
appended.to s. 43, and we have deferred
consideration thereof to the last as there has
been a controversy as to how far it is admissible
in construing the section. It is as follows:-
"A, a Hindu, who has separated from his
father B, sells to C three fields, X, Y and
Z, representing that A is authorized to
transfer the same. Of these fields Z does not
belong to A, it having been retained by B on
the partition; but on B’s dying A as heir
obtains Z. C, not having rescinded the
contract of sale, may require A to deliver Z
to him.
In this illustration, when A sold the field Z to
C, he had only a spes successionis. But he having
subsequently inherited it, became entitled to it.
This would appear to conclude the question against
the appellant. But it is argued that the
illustration is repugnant to the section and must
be rejected. If the language of the section
clearly excluded from its purview transfers in
which the transferor had only such interest as is
specified in s. 6(a), then it would undoubtedly
not be legitimate to use the illustration to
enlarge it. But far from being restricted in its
scope as contended for by the appellant, the
section is, in our view, general in its terms and
of sufficient amplitude to take in the class of
transfers now in question. Its is not to be
readily assumed that all illustration to a section
is repugnant to it and rejected. Reference may, in
this connection, be made to the following
observations of the judicial Committee in Mahomed
Shedol Ariffin v. Yeoh Ooi Gark (1) as to the
value to given to illustrations appended to a
section, in ascertaining its true scope:
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565
"It is the duty of a court of law to
accept, if that can be done, the
illustrations given as being both of
relevance and value in the construction of
the text. The illustrations should in no case
be rejected because they do not square with
ideas possibly derived from an other system
of jurisprudence as to the law with which
they are the sections deal And it would
require a very special case to warrant their
rejection on the ground of their assumed
repugnancy to the sections themselves. It
would be the very last resort of construction
to make any such assumption. The great
usefulness of the illustrations, which have,
although no part of the sections, been
expressly furnished by the Legislature as
helpful in the working and application of the
statute, should not be thus impaired."
We shall now proceed to consider the more
important cases wherein the present question has
been considered. One of the earliest of them is
the decision of the Madras High court in Alamanaya
Kunigari Nabi Sab v. Murukuti Papiah (1). That
arose out of a suit to enforce a mortgage executed
by the son over properties belonging to the father
while he was alive. The father died pending the
suit, and the properties devolved on the son as
his heir. The point for decision was whether the
mortgagee could claim the protection of s. 43 of
the Transfer of Property Act. The argument against
is was that "s. 43 could not be so construed as to
nullify s. 6(a) of the Transfer of Property Act,
by validating a transfer initially void under s
6(a)". In rejecting this contention, the Court
observed:-
"This argument, however, neglects the
distinction between purporting to transfer
‘the chance of an heir-apparent,’ and
‘erroneously representing that he (the
transferor) is
566
authorised to transfer certain immoveable
property." It is the latter course that was
followed in the present case. It was
represented to the transferee that the
transferor was in praesenti entitled to and
thus authorise to transfer the property." (p.
736)
On this reasoning if a transfer is statedly of an
interest of the character mentioned in s. 6(a), it
would be void, whereas, if it purports to be of an
interest in praesenti, it is within the protection
afforded by s. 43
Then we come to the decision in The official
Assignee, Madras v. Sampath Naidu (1), where a
different view was taken. The facts were that one
v. Chetti had executed two mortgages over
properties in respect of which he had only spes
successionis. Then he succeeded to those
properties as heir and then sold them to one
Ananda Mohan. A mortgagee claiming under Ananda
Mohan filed a suit for a declaration that the two
mortgages created by Chetty before he had become
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entitled to them as heir, were void as offending
s. 6(a) of the Transfer of Property Act. The
mortgagee contended that in the events that had
happened the mortgages had become enforceable
under s. 43 of the Act. The Court negatived this
contention and held that as the mortgages, when
executed, contravened s. 6(a), they could not
become valid under s. 43. Referring to the
decision in Alamanaya Kunigari Nabi Sab v. Murkuti
Papiah (2), the Court observed that no distinction
could be drawn between a transfer of what is on
the face of it spes successionis, and what
purports to be an interest in praesenti. "If such
a distinction were allowed", observed Bardswell,
J., delivering the Judgment of the Court, "the
effect would be that by a clever description of
the property dealt with in a deed of transfer one
would be allowed to conceal the real nature of the
transaction and evade a clear statutory
prohibition."
567
This reasoning is open to the criticism that
it ignores the principle underlying s. 43. That
section embodies, as already stated, a rule of
estoppel and enacts that a person who makes a
representation shall not be heard to allege the
contrary as against a person who acts on that
representation. It is immaterial whether the
transferor acts bona fide or fraudulently in
making the representation. It is only material to
find out whether in fact the transferee has been
misled. It is to be noted that when the decision
under consideration was given, the relevant word
of s. 43 were, "where a person erroneously
represents", and now, a amended by Act 20 of 1929,
they are "where a person fraudulently or
erroneously represents", and that emphasises that
for the purpose of the section it matters not
whether the transferor act fraudulently or
innocently in making the representation, and that
what is material is that he did made
representation and the transferee has acted on it.
Where the transferee knew as a fact that the
transferor did not possess the title which he
represents he has, then he cannot be said to have
acted on it when taking a transfer. Section 43
would then have no application, and the transfer
will fail under s. 6(a). But where the transferee
does act on the representation, there is no reason
why he should not have the benefit of the
equitable doctrine embodied in s. 43, however
fraudulent the act of the transferor might have
been.
The learned Judges were further of the
opinion that in view of the decision of the Privy
Council in Ananda Mohan Roy v. Gour Mohan Mullick
(1) and the decision in Sri Jagannada Raju v. Sri
Rajah Prasada Rao (2), which was approved therein,
the illustration to s. 43 must be rejected as
repugnant to it. In Sri Jagannada Raju’s case (2),
the question was whether a contract entered into
by certain
568
presumptive reversioners to sell the estate which
was then held by a widow as heir could be
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specifically enforced, after the succession had
opened. It was held that as s. 6(a) forbade
transfers of spes successionis, contracts to make
such transfers would be void under s. 23 of the
contract Act, and could not be enforced. This
decision was approved by the Privy Council in
Ananda Mohan Roy v. Gour Mohan Mullick(1), where
also the question was whether a contract by the
nearest reversioner to sell property which was in
the possession of a widow as heir was valid and
enforceable, and it was held that the prohibition
under s. 6(a) would became futile, if agreements
to transfer could be enforced. These decisions
have no bearing on the question now under
consideration, as to the right of a person who for
consideration takes a transfer of what is
represented to be an interest in praesenti. The
decision in The Official Assinee, Madras v.
Sampatha Naidu (2) is, in our view, erroneous, and
was rightly over ruled in the decision now under
appeal.
Proceeding on to the decisions of the other
High Courts, the point under discussion arose
directly for decision in Shyam Narain v. Mangal
Prasad (3). The facts were similar to those in The
official Assignee, Madras s. Sampath Naidu(2) One
Ram Narayan, who was the daughter’s son of the
last male owner sold the properties in 1910 to the
respondents, while they were vested in the
daughter Akashi. On her death in 1926, he
succeeded to the properties as heir and sold them
in 1927 to the appellants. The appellants claimed
the estate on the ground that the sale in 1910
conferred no title on the respondents as Ram
Narayan had then only a spes successionis. The
respondents contended that they became entitled to
the properties when Ram Narayan acquired them as
heir in 1926. The learned Judge, Sir S. M.
Sulaiman, C. J., and Rachhpal, J., held, agreeing
with
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the decision in Alamanaya Kunigari, Nabi Sab v.
Murukuti Papiah (1),and deffering from The
official Assignee, Madras v. Sampath Naidu (2),and
Bindeshwari Singh v. Har Narain Singh (3), that
s.43 applied and that the respondents, had
acquired a good title. In coming to this,
conclusion, they relied on the illustration to s.
43 as, indicating its, true scope, and observed:-
"Section 6 (a) would, therefore, apply
to cases, where professedly there is, a
transfer of a mere spes successionis, the
parties knowing that the transferor has, no
more right than that of a mere expectant
heir. The result, of course, would be the
same where the parties, knowing the full
facts, fraudulently clothe the transaction in
the garb of a an out and out sale of the
property, and there is, no erroneous
representation made by the transferor to the
transferor as, to his, ownership.
"But where an erroneous, representation
is, made by the transferor to the transferee
that he is, the full owner of the property
transferred and is authorized to transfer it
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and the property transferred is not a mere
chance of succession but immovable property
itself, and the transferee acts, upon such
erroneous representation, then if the
transferor happens, later, before the
contract of transfer comes, to an end, to
acquire an interest in that property, no
matter whether by private purchase, gift,
legacy or by inheritance or otherwise, the
previous transfer can at the option of the
transferee operate on the interest which has,
been subsequently acquired, although it did
not exit at the time of the transfer." (pp.
478,479).
This decision was followed by the Bombay High
Court in Vithabai v. Malhar Shankar (4) and by the
570
Patna High Court in Ram Japan v. Jagesara Kuer(1).
A similar view had been taken by the Nagpur High
Court in Syed, Bismilla v. Manulal Chabildas(2).
The preponderance of judicial opinion is in
favour of the view taken by the Madras High Court
in Alamanaya Kunigari Nabi Sab v. Murukuti Papiah
(3), and approved by the Full Bench in the
decision now under appeal. In our judgment, the
interpretation placed on s. 43 in those decisions
correct and the contrary opinion is erroneous. We
accordingly hold that when a person transfers
property representing that he has a present
interest therein, whereas he has, in fact, only a
spes successionis, the transferee is entitled to
the benefit of s. 43, if he has taken the transfer
on the faith of that representation and for
consideration. In the present case, Santhappa, the
vendor in Ex. III, represented that he was
entitled to the property in praesenti, and it has
been found that the purchaser entered into the
transaction acting on that representation. He
therefore acquired title to the properties under
s. 44 of the Transfer of Property Act, when
Santhappa became in titulo on the death of
Gangamma on February 17, 1933, and the subsequent
dealing with them by Santhappa by way of release
under Ex. A did not operate to vest any title in
the appellant.
The Courts below were right in upholding the
title of the respondents, and this appeal must be
dismissed with costs of the third respondent, who
alone appears.
Appeal dismissed.
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