Full Judgment Text
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PETITIONER:
SRI CHANDRE PRABHUJI JAIN TEMPLE AND ORS.
Vs.
RESPONDENT:
HARIKRISHNA AND ANOTHER
DATE OF JUDGMENT22/08/1973
BENCH:
MATHEW, KUTTYIL KURIEN
BENCH:
MATHEW, KUTTYIL KURIEN
BEG, M. HAMEEDULLAH
CITATION:
1973 AIR 2565 1974 SCR (1) 442
1973 SCC (2) 665
ACT:
Guardians and Wards Act 1890-s. 29 read with s. 31(2)-Widow,
mortgaged property of minors with permission from Court
without disclosing existence of a will-Whether minors’
estate liable.
HEADNOTE:
One R. died in 1941, leaving behind him his widow one minor
son and .two minor daughters. Before he died, he had
executed a will whereby he appointed his widow the executor
of the will and the guardian of his minor son and daughters
and bequeathed all his properties to the minor son with
directions as regards maintenance and marriage of his
daughters. In 1948, the widow mortgaged certain properties
to raise a loan of Rs. 7,000/- for the purpose of marriage
expenses of her elder daughter. She filed an application
to this effect under ss.7 and 10 of the Guardian and Wards
Act without disclosing anything about the will.
The Court passed an order appointing the widow is the
guardian of the personal property of the minor and son and
daughter and by another order, granted her Permission to
raise the said loan. Accordingly, she borrowed Rs. 7.000/-
by mortgaging the houses. Thereafter, in 1950. she filed
two applications seeking permission of the High Court to
raise a loan of Rs. 40,000/and Rs. 15.0001- on the security
of the two houses. She was allowed to raise Rs. 30.000/-
and Rs. 10,000/- respectively by mortgaging the houses.
Thereafter. the widow filed another application praying for
permission to sell one of the houses in order to discharge
the amount due to the appellants under the two mortgages.
The permission was granted and the Indian Bank Ltd.
Purchased one of the house properties for Rs. 41,500/-.
Subsequently. the Bank came to know that R. had executed a
will find the Bank applied to the High Court to have the
sale set aside. This was done. When the existence of the
will was brought to the notice of the Court, the High Court
directed the Administrator General to take immediate
possession of R.s estate and to apply for letters of
administration. The Administrator General obtained letters
of administration and took possession of the estate. In the
course of administration, the A.G. after obtaining the
sanction of the Court, put up sale one of the houses in
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question. The Indian Bank purchased it for Rs. 39,200/-.
The sale proceeds are being retained by the A.G.
The appellants thereafter, filed a suit before the High
Court to recover The money given under the two mortgages
executed in favor of the appellants by the widow as the
guardian.
The respondent namely, the Administrator General and the
minor son contended that the widow had no authority to
execute the mortgages and that she obtained the sanctions of
the Court to execute the mortgages by practicing fraud etc.
The High Court held that since the appellants were not
parties to the fraud and as they are not required to go
beyond the orders, the appellants were entitled to recover
the amounts from the properties mortgaged and passed a
preliminary decree.
Against this decree, the respondents appealed to a Full
Bench. The Full ’Bench held that an order under s. 31(ii)
of the Guardians and Wards Act, 1890 can be relied ton by an
salience and is a substitute for an honest enquiry to be
made by him. The Court passed a decree for recovery of the
amounts from one half of the properties mortgaged. It is
against this decree that this appeal by certificate, has
been preferred. In this Court, the following points were
raised by the appellants
443
(i) That the finding of the High Court that the mortgages
were valid only on respect of one half interest in the
properties was not correct. According. to the appellants,
since the widow was appointed guardian in respect of the
person and the properties of her minor son, and the fact
that the widow stated in the application to appoint her a
guardian. that she was entitled to one half of the
properties, and the minor to the other half, would not-
conclude the question that she was appointed guardian only
in respect of half share of the properties.
(ii) That under the Act or under the inherent powers of the
Court, a guardian can be appointed only with respect to all
the properties of the minor and not in respect of any
specific item.
(iii) That if a guardian is appointed for all the
properties of a minor in one district, it is not necessary
that there Should be a fresh appointment for the properties
of the minor in another district.
Dismissing the appeal,
HELD : (i) Since the widow had no power to alienate the
properties Linder the will, and since she did not disclose
to the court about the curb on her power, the sanctions
obtained from the Court Linder s. 31(2) of the Guardians and
Wards Act 1890 on the application filed under s. 29 cannot
be regarded as valid.
The question, therefore, is whether appellants are entitled
to get the money advanced, tinder the mortgages as a charge
of the entire interest in these properties. [451B]
(ii) The High Court granted the decree on the basis that the
orders of sanctions for mortgaging the properties were
valid. If to avoid a decree for recovery of the mortgaged
money from the entire interest of the minor in these
properties be refused on the ground that the orders
sanctioning the mortgages were invalid, it would be
contradictory to the of the finding of High Court on the
basis of which it passed the decree. Order 41, r. 33 of the
C.P. clothes the appellants that the power to pass any
decree or order which the trial court ought to have passed
and to pass or make such further or other decree or order as
the justice of the case may require.
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The respondents would be entitled to avoid the orders of
sanction in defence without the necessity of filing a suit.
provided they give restitution. The High Courts have taken
the view that as a condition for setting aside a disposal of
immovable property made in contravention of s. 28 or s. 29
which is voidable under s. 30, it is just that there must be
restitution of the benefits received. [451E,G]
Parshotam Das v. Nazir Hussan, 54 IC. 846, Peria Karuppam
Chetty v. Kandasamy Chetty (1933) Madras W.N. 791, and Abbas
Hussain v. Kiran Sashi Devi, A.I.R. 1942 Nagpur 12, referred
to.
(iii) In the present appeal, one item of the properties has
been sold by the A.G. through the sanction of the Court and
the proceeds of the sale are with him. Therefore a decree
is passed against the respondent/defendants directing
them to pay the appellants the principal amounts due under
the two mortgages ’together with 6% interest from June 1,
1950, on the principal amount upto the date of payment or
realisation. The amount decreed will be a charge on the
sale proceeds of one of the properties which are being
retained by the A.G. and the entire interest in the other
Property under the mortgage. [452E]
JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1701 of
1967.
Appeal from the judgment and order dated December 1, 1961 of
the Madras High Court in O.S.A. No. 17 of 1957.
444
V. M. Tarkunde, Harbans Singh and H. S. Dher, for the
appellant.
M. Natesan and S. Gopalakrishnan, for respondent No, 1.
The Judgment of the Court was delivered by
MATHEW, J.--One Gopalakrishna Raju (hereinafter called Raju
died in Madras on or about November 13, 1941, leaving behind
him his window Manorama, one minor son and two minor
daughters. On March 25, 1941, Raju had executed a will
whereby he appointed Manorama the executor of the will and
the guardian of his-minor son and daughters and bequeather
a.1 his properties to the minor son with directions as
regards the maintenance and marriage of his daughters. On
June 7, 1948, Manorama mortgaged certain properties to raise
a loan of Rs. 7,000/- for the purpose of meeting the
marriage expenses of her elder daughter. Thereafter, she
filed an application under sections 7 and 10 of the
Guardians and Wards Act. 1890, hereinafter called the Act ’
on August 26, 1948, before the High Court of Madras to
appoint her as the guardian of her minor children. In that
petition she did not disclose that Raju died after executing
a will, but said that Raju died leaving two houses Nos. 18
and 18A in Egmore, Madras and that she was the owner of one
half of the houses and that her minor son was the owner of
the other half. She also said that no guardian had been
appointed of the person or the property of the minors.
Along with the petition for appointing her as guardian, she
also filed an application seeking permission of the court to
raise a loan of Rs. 7,000/,by mortgaging the two houses. On
September 9, 1948, the Court passed an order appointing
Manorma as the guardian of the person and property of the
minor son and daughter and, by another order, granted her
permission to raise a loan of Rs. 7,000/- by mortgaging the
two houses. On the basis of these orders, she borrowed a
sum of Rs. 7,000/- on September 24, 1948, by mortgaging the
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two houses. Thereafter, she filed another application on
January 19, 1950, seeking permission of the High Court to
raise a loan of Rs,40,000/- on the security of the two
houses. On January 23, 1.950, the application was allowed
under s. 29 of the Act permitting her to raise a loan of Rs.
30,000/- on the security of the two houses belonging to the
minor. On the strength of this order, Manorama borrowed on
March 4, 1950, a sum of Rs. 30,000/- from the trustees of
Shri Chandre Prabhuji Jain Temple, the appellants before
this Court, by executing a mortgage of the two houses. She
again applied on April 24, 1950, to the Court for raising a
further loan of Rs. 15,000/- on the security of these two
houses but sanction was accorded to raise a loan of only Rs.
1.0.000/On the basis of this order she borrowed a further
sum of Rs. 1,000/from the appellants by executing a mortgage
on May 31, 1950, of the same properties. Manorama filed yet
another application praying for permission to sell one of
the houses with a view to enable her to discharge the amount
due to the appellants under the two mortgages. The
permission was granted and the Indian Bank Limited purchased
one of the house properties for a sum of Rs. 41.500/- It
would appear that subsequent to the execution of the sale,
the bank came to know that Raju had executed a will. So the
bank applied to the High Court to
445
have the sale set aside. This was done. When the existence
of the will, executed by Raju was brought to the notice of
the Court, Krishnaswami Nayudu, J. directed the
Administrator-General to take immediate possession of the
estate of Raju and to apply for Letters of Administration.
The Administrator-General obtained Letters of Administration
and took possession of the estate. In the course of the,
administration, the Administrator-General, after obtaining
the sanction of the Court put up for sale one of the houses
in question. The Indian Bank purchased it for, Rs.
39,200/-. The sale proceeds are being retained by the
Administrator-General.
The appellants filed the suit on the original side of the
High Court out of which this appeal arises, to recover the
money due under the two mortgages executed in favour of the
appellants by Manorama as guardian.
The respondents, namely, the Administrator-General and the
minor son, contended that Manorama had no authority to
execute the mortgages and that she obtained the sanctions to
execute the mortgages by practising fraud upon the court.
They also contended that the appellants had not acted with
due care, that the sanctions to mortgage given by the court
were only prima facie evidence that the transactions were
beneficial to the minors but that they would not cure any
inherent defect that existed in the transactions, that the
enquiry conducted by a court in granting sanction was of a
summary character, and that as the existence of the will has
not been brought to the notice of the court, the sanctions
to raise the loans were invalid and did not bind the minor.
Balakrishna Ayyar, J. who tried the suit held that Manorama
deliberately suppressed the execution of the will by Raju
and therefore, the orders authorizing her to raise the
amounts by mortgaging the properties of the 2nd respondent
were obtained by fraud. The learned Judge, however, held
that since the orders were only voidable and as .the
appellants were not parties to the fraud and as they were
not required to go behind the orders, the appellants were
entitled to recover the amount from the properties mortgaged
and passed a preliminary decree.
Against this decree the respondents appealed and the appeal
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was referred to a Full Bench as there was conflict of
opinion on the question whether an order under s. 31(2) of
the Act granting leave to a guardian for alienating the
property of the ward was conclusive proof that the
alienation made in pursuance thereof was supported by
necessity or benefit of the minor.
The Full Bench held that an order under s. 31(2) of the Act
can be relied on by an alienee as a substitute for an honest
enquiry to be made by him; but that it will be open to the
minor challenging the alienation to show that the alienee
was nut on notice at the time of the alienation of matters
which would show the defects in the transaction or that the
alienee did not act bona fide- It also held that where there
is no evidence to show that there existed circumstances
exciting suspicion as to the way in which an order under s.
31(2) was obtained,
446
the alienee would be entitled to rely on it to support his
title, but that an order under S. 31 C2) cannot be treated
always as conclusive as to, the existence of necessity or
benefit and that even as to the sufficiency of the- enquiry
to be made by the alienee, it would be competent for the
minor to prove that the alienee did have sufficient reason
not to rest on the mere order of the court. The court said
further that if the minor proves that the alienee knew more
or did not himself rely on the order but made independent
enquiries-the onus being on the minor to prove it-the order
of the court will not afford conclusive evidence on the
question of enquiry. However, if the alienee is not a party
to any fraud and has no knowledge of any fraud the mere fact
that the guardian was guilty thereof will not disentitle him
to rely on the order of the court as proving an honest
enquiry by him. The court further that the orders of
sanction were valid even though they were made under s.
31(2) of the Act notwithstanding the fact that Manorama was
appointed guardian under the will of her husband. The
further finding of the court was that the mortgages could be
enforced only against one half of the mortgaged properties
as Manorama was appointed guardian only in respect of that
half. The court was of the-view.that the sanctions to
execute the mortgages in respect of the two properties were
only in respect of one-half share therein. The Court
therefore, passed a decree for recovery of the amounts from
one-half of the properties mortgaged.
It is against this decree that this appeal by certificate-
has been preferred.
The most important point canvassed on behalf of the
appellants was that the finding of the High Court that the
mortgages were valid only in respect of one half interest in
the properties was not correct. Counsel for the appellants
submitted that Manorama was appointed pardon in respect of
the person and the properties of her minor son and the fact
the Manorama stated in the application to appoint her
guardian that she was entitled to one-half of the properties
and the minor to the other half, would not conclude the
question that she was appointed guardian only in respect of
the half share in the, properties. Counsel further
submitted that under the Act or under the inherent powers of
the Court, a guardian can be appointed only of an the pro-
perties of a minor and not in respect of any specific items
and that if a guardian is appointed of the properties of a
minor in one district, it is not necessary that there should
be a fresh appointment for the properties of the minor in
another district as under S. 16 of the Act, a certificate
from the court appointing the guardian would be conclusive
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evidence in the other district that he was appointed
guardian of the properties in that district also.
In the application to appoint her as guardian, Manorama
stated that only the two houses were inherited by her and
the minor son from her husband and that she was entitled to
a half share in them with limited rights and that her minor
son was entitled to the other half In the affidavit
accompanying that petition she said that she has inherited
half of the estate of her husband of the value of Rs.
37,500/-. The order appointing her as guardian stated that
she is declared guardian
447
of the person and properties of the minor and that as
guardian she shall not, without previous permission of the
court, mortgage, charge or transfer by sale, gift, exchange
or otherwise any part of the immovable property of the minor
or lease the same.
In the application made by her for permission to execute the
mortgage for Rs. 30,000/- as guardian, she has stated that
she required the loan to discharge the debts and the demands
then existing against the properties belonging to her and
her minor son as heirs of her late husband. The order of
the court on that application dated February 1950, giving
her leave stated that "the applicant do have permission to
raise. a loan of Rs. 30,000/- on the security of the two
houses No. 18 and 18A". In the reasons given for that
order, the court said that "the guardian is permitted to
raise a loan of Rs. 30,000,/- on the security of two items
of property belonging the minor viz., Nos. 18 and 18A in
Sait Colony, First Street, Egmore, Madras". In the mortgage
executed in pursuance to this order of sanction, Manorama
described’ herself as executing the mortgage for herself,
and as mother and guardian as per the order of the High
Court in O.P. No. 269 of 1948, namely, the original petition
for appointing her as guardian.
The court appointed Manorama as guardian of the properties
of the minor. The order does not show that she was
appointed guardian in respect of the one half interest in
the properties. A person looking into the order could not
have found any limitation in it. A purchaser of the
properties of minor could not be expected to go behind the
order.
The court had no occasion to inquire nor did it make any
enquiry as regards the extent of the interest of the minor
in the properties. That apart, the orders sanctioning the
mortgages in fact authorized Manorama as guardian to
mortgage the properties, even though in the application on
the basis of which the order sanctioning the mortgage for
Rs. 30,000/- was passed, Manorama said that she was entitled
to one half interest in the properties and that the minor to
the other half (see para 1 of her application dated January
19, 1950 for sanctioning the mortgage for Rs. 30,000/-) We
think that the orders sanctioning the mortgages authorized
her to mortgage the properties and not any particular
interest therein. If her capacity to alienate the
properties of the minor is to be judged from the orders of
sanction, its extent must be measured by these orders read
in the light of the order appointing her guardian.
Section 28 of the Act provides
"Where a guardian has been appointed by will
or other instrument, his power to mortgage or
charge, or transfer by sale, gift, exchange or
otherwise, immovable property belonging to his
ward is subjected to any restriction which may
be imposed by the instrument, unless he has
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under this Act been declared guardian and the
court which made the declaration permits him
by an order in writing, notwithstanding the
restriction, to dispose of any immovable
property specified in the order in a manner
permitted by the order."
448
Manorama did not make any application under this section.
Nor was the court appraised of the will or the restrictions
which it imposed on her power of alienation. The court,
therefore, had no occasion to pass an order in writing as
visualised in the section enabling her to dispose of any
property of the minor notwithstanding the restriction
imposed by the will.
Section 29 says that where a person other than a Collector
or than a guardian appointed by will or other instrument,
has been appointed or declared by the court to be guardian
of the property of a ward, he shall not, with the previous
permission of the court (a) mortgage of charge or transfer
by sale, gift, exchange or otherwise any part of the immov-
able property of his ward, or (b) lease any part of that
property for a term exceeding five years or for any term
extending more than one year beyond the date on which the
ward will cease to be a minor. As Manorama was declared by
the will to be the executor and also guardian of the minor,
she could not have made an application for permission to
mortgage under s. 29. Nor could the court have passed any
order granting permission under s. 31(2) to mortgage the
immovable property of the minor. The order sanctioning the
mortgage for Rs. 30,000/- was ’expressly passed on an
application made under s. 29. Though there is, no mention
in the order sanctioning the mortgage for Rs. 10,000/- of
the section under which it was passed the order appears to
have been made under s. 31(2). But as already-stated, the
orders could not have been passed under s. 31(2) on the
basis of the applications filed under s. 29 as Manorama was
a guardian appointed by the will of Raju.
Mr. Tarkunde for the appellants argued that s. 3 of the Act
preserves the inherent powers of certain High Courts to
appoint a guardian and determine his powers and to sanction
any alienation by the guardian of the properties of the
ward, apart from the provisions of the Act. He cited In re
Mahadev Krishna Rupji(1) and The Raja of Vizianagaram v. The
Secretary of State for India in Council(2) and said that the
High Court of Madras had inherent jurisdiction to appoint a
guardian and determine his powers untrammeled by the pro.
visions of the Act. In the first of the cases above
referred to, it was held by the Bombay High Court that
though the Act does not sanction (,he Appointment of a
guardian in respect of undivided share of a minor in a joint
Hindu Family, the High Court of Bombay had inherent power to
appoint a guardian. In the latter case, the Madras High
Court hold that the High Court has, under clause 17 of the
Letters Patent, 1865, jurisdiction in regard to minors,
though not of British birth, resident outside the limits of
the Presidency town and its jurisdiction to act under that
clause is not affected by the Act. The court also said "the
jurisdiction of the High Court under clause 17 of the
Letters Patent is not in the exercise of its ordinary
original civil jurisdiction and it is saved by s. 3 of the
Guardsman and Wards Act which says that ’nothing
(1) T. L. R. 1937 Bom. 432.
(2) T. L. R. 1937 Mad. 383.
449
in the Act shall be construed to take away any power
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possessed by any High Court established under the Statute 24
and 25 Vic.c.104 It does not follow from these rulings that
the principle underlying S. 28 of the Act should not bind
the High Court even while exercising its inherent powers.
The principle underlying s. 28 is that when a guardian is
appointed under a will and Ins powers are expressly
restricted by that instrument, the court must be apprised of
the will and of the restrictions on his powers imposed by
the testator in order to exercise its discretion to
determine whether those restrictions should be removed or
not. The section enacts a salutary principle for the
exercise of its parental jurisdiction.
Mr. Tarkunde said that s. 28 is applicable only to a
guardian of the property of the minor, that the will of Raju
declared Manorama only as guardian of the person of the
minor and therefore, s. 28 was not attracted.
The definition of the word ’guardian’ in s. 4 (2) of the Act
says that ’guardian’ means a person having the care of the
person of a minor or his property, or of both his person and
property. In the matter of Sirsh Chander Singh and
Others(3) the court said that the question whether a person
is appointed guardian of the person of the minor alone but
of his property also must be determined on a perusal of the
entire document appointing him. if powers of managing the
properties of the minor are vested in a guardian and express
restrictions are placed on his powers of alienation in the
course of the management, that is an indication that the
appointment is as guardian of the property also. Manorama
was given power under the will to manage the properties of
the minor. The fact that restrictions have been imposed by
the will on her powers of alienation of the properties of
the minor seem,; to us a rather sure indication that
Manorama was appointed guardian of the properties of the
minor also. To what purpose were the restrictions imposed
unless she was also appointed guardian of the properties ?
Section 28 no doubt comes under the heading "Guardian of
property". But we are not sure that from that fact we can
infer that s. 28 contemplates only the case of a guardian of
the property of the minor. However, we express no opinion
on the question as that is unnecessary. We proceed on the
assumption that the section only applies to a guardian of
the property of a minor.
That apart, as the learned trial Judge rightly held, the
orders of sanction were obtained by fraud and they were,
therefore, on that account bad.
Mr. Tarkunde said that the respondents cannot raise the
objection in this appeal that the orders of sanction were
invalid as the respondents did not appeal from the decree of
the High Court to recover the mortgage money from the one-
half share in properties. His argument was since the
respondents did not Me an appeal against that decree, they
cannot be allowed to impugn the validity of the orders of
sanction. on the basis. of which that decree was passed,
and, if the orders of
(1) 21 [1894] I. L. R. Calcutta 206, 21 1.
450
sanction are allowed to be impugned here, that would be
allowing the respondents to imperil the decree ill respect
of the half-share in the properties.
It is no doubt true that respondents cannot be allowed to
impugn the decree passed by the High Court in favour of the
appellants as they did not file any appeal from that decree.
But we think that there is no reason why they should not be
allowed to’ urge the plea that the order, of sanction wire
invalid when the appellants want not only to maintain the
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decree passed by the High Court but also to yet a decree
charging the entire Properties. :In other words, the bar
against urging the plea of the invalidity of the orders of
sanction would apply only if the respondents seek to impugn
the decree already obtained by the appellants but not when
the appellant seek to obtain further reliefs in the appeal
on the basis of the orders. In such a case we are not
aware of any rule of law which would preclude the
respondents from urging the plea.
In The Management of Itakhoolic Tea Estate v. its
workmen,(1) the question whether in such circumstances, a
respondent who has not appealed from the decree can be
allowed to urge such a plea in answer to a claim ,by an
appellant for a further decree although the plea might
imperil the decree already obtained was left undecided. But
the Full Bench decision of the Madras High Court in Venkata
Rao v. Satyanarayanamurthy (2 ) has held that ’it is open to
a respondent who’ had not filed cross-objection with respect
to the portion of the decree’ which had gone against him "to
urge in opposition to the appeal of the plaintiff, a
contention which if accepted by the trial court would have
necessitated the total dismissal of the suit" but that the
decree in so for as it was against him would stand. The
decree of the High Court here in so far as it held that the
mortgage money can be recovered only from the half share in
the properties was also a decree in favour of the res-
pondents as it did not allow the claim of the appellants to
recover it from the entire interest in the properties. To
that extent, the respondents had a decree in their favour.
That decree they could support on any of the grounds decided
against them by the court which passed the decree. And when
they do this, they are only supporting and not attacking
that decree. We think that the rule laid down by the Madras
High Court in the above decision is sound. And there is no
reason why the respondents should be barred from urging the
plea. So even though we hold that the power of Manorama as
guardian to mortgage the properties extended to the entire
interest in tie properties, it would not follow that the
appellants would be entitled to a decree charging the entire
interest in the properties as the orders of sanction on the
basis of which alone Manorama got the power to alienate the
properties were invalid.
The position that emerges from this discussion is : Under
the will Manorama had no power to alienate the properties.
As the existence of the will and the curb on her powers of
alienation were not disclosed
(1) A. I. R. [1960] S. C. 1349. (2) I. L. R. [1944] Mad.
147.
451
to the court when she applied for sanction and as the court
did not by order in writing remove, the fetters on her power
of alienation, the sanctions cannot be regarded as having
been obtained under s. 28; nor could the sanctions, as they
were given under S. 31(2) on the applications filed under s.
29, be regarded as valid, as Is. 29 has no application when
there is a will appointing a person as guardian.
The question then is whether the appellants are entitled to
get the money advanced under the, mortgages as a charge on
the entire interest in these properties.
The appellants advanced the amounts bona fide believing
that. there was necessity on the strength of the orders of
sanction and there is no finding that there was no
necessity. These orders were not void, even though they
were obtained by fraud. That was the view of Balakrishna
Ayyar, J. and it was on the basis that the orders ware
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voidable, and that, until set aside, they were valid, that
the learned Judge granted a decree. A disposal of property
in contravention of the provisions of s. 28 or s. 29 is only
voidable (see s. 30). We think that there is no reason why,
when in defence to the claim by the appellants for a decree
charging the entire interest in the properties, in the
appeal, the respondents should not be allowed to show that
the orders of sanction were invalid notwithstanding the fact
that they were not set aside in a suit instituted by the 2nd
respondent. If the court were to refuse to pass a decree
allowing the appellants to recover the money on the rest of
the minor’s interest in the properties, the basis of that
refusal would be on a ground destructive of the decree
passed by the High Court. In other words, the High Court
granted the decree on the basis that the orders of sanction
for mortgaging the properties were valid. If we are to
refuse to pass a decree for recovery of the mortgage money
from the entire interest of the minor in these properties,
on the, ground that the orders sanctioning the mortgages
were invalid, that would be contradictory to the finding of
the High Court on the basis of which it passed the decree.
Order 41, rule 33 of the Civil Procedure Code clothes the
appellate court with the power to pass any decree or order
which the trial court ought to have passed or made and to
pass or make such further or other decree or order as the
justice of the case may require.
Though the respondents are entitled to avoid the orders of
sanction in defence without the necessity of filling a suit,
it is just and proper that as a condition for doing no, they
must give restitution-. The High Courts in this country
have taken the view, and we think rightly, that as condition
for setting aside a disposal of immovable property- made in
contravention. of s. 28 or s. 29 which is voidable under s.
30, it is just that there must be restitution of the
benefits received [See Parshotam Das V. Nazir Husain(1),
Peria Karuppan Chetty v. Kandasamy Chetty(2), Abbas Husain
v. Kiran Shashi Devi(3).]
(1) 54 I. C. 846. (2) 1933 Mad. W. N. 791.
(3) A. T. R. 1942 Nag. 12.
452
In this view, we do not think it necessary to express any
opinion on the correctness or otherwise of the view of the
High Court on the. nature and effect of an order passed
under S. 31 (2). Suffice it to say that different views
have been expressed by the High Court,,;.
As already stated, one item of the properties has been ,old
by the Administrator-General with the sanction of the Court
and the proceeds of the sale are with him. We pass a decree
against the respondent-defendants directing them to pay the
appellants the principal amount due under the two mortgages
together with 6 per cent interest from June 1, 1950 on the
principal amount up to the date of payment or realization.
The amount decreed will be a charge on the sale proceeds of
one of the properties which are being retained by the
Administrator-General and, on the entire interest in the
other property under the mortgages.
The decree of the High Court is set aside and a decree in
terms as aforesaid is passed. The appeal is allowed in the
manner and to" the extent indicated above. The parties will
bear their costs here.
S.C.
Appeal allowed.
453
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