Full Judgment Text
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PETITIONER:
SMT. RUKHAMANBAI
Vs.
RESPONDENT:
SHIVRAM & ORS.
DATE OF JUDGMENT03/09/1981
BENCH:
DESAI, D.A.
BENCH:
DESAI, D.A.
KOSHAL, A.D.
MISRA, R.B. (J)
CITATION:
1981 AIR 1881 1981 SCR (1) 607
1981 SCC (4) 262 1981 SCALE (3)1437
ACT:
Bombay Tenancy and Agricultural Lands Act, 1948,
sections 2 (18), 4, 32F and G, scope of-Whether a limited
owner of agricultural land governed by the Tenancy Act
during his/her life time was entitled to lease the land, and
is he or she did lease the land whether the tenant inducted
by the holder of life estate could be said to be lawfully
cultivating the land so as to acquire the status of a deemed
tenant under section 4 of the Act and as a corollary would
become a deemed purchaser on the tillers’ day-Transfer of
Property Act, section 13, section 76A and construction of
the deed of settlement.
HEADNOTE:
Under the deed of settlement (Ex. 2A) dated May
22,1930, the appellant-landlady acquired a life-interest in
certain agricultural lands under dispute and the reversion
remainder was in her children. During her lifetime she was
entitled to enjoy the income of the property but she could
not dispose of the property by will, gift or sale. She was
also under a disability to encumber the estate though she
had the right of carrying on the "vahivat" (management).
By virtue of the provisions of section 32 of the Bombay
Tenancy and Agricultural Lands Act, 1948, providing that on
April 1, 1957 styled as tillers’ day, a tenant of
Agricultural land covered by the said Act would be the owner
of the land held by him, if other conditions specified
therein are fulfilled, the respondents made five separate
applications on August 27, 1962 against the appellant before
the Agricultural Lands Tribunal, Raver under section 32G for
determining the price of the land held by each of them as
tenant. The appellant contested the right of the tenant to
purchase the land, inter alia contending that under the deed
of settlement she acquired a right only to usufruct of land
involved in the dispute and she being a limited owner and
the settlement imposing certain disability on her precluding
her from dealing with the property which would indicate that
she could not have leased out the land thereby creating an
encumbrance which would be impermissible under the deed of
settlement and consequently the tenant of each piece of land
could not be said to be lawfully cultivating the land so as
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to a become the deemed tenant under section 4 of the Tenancy
Act. The respondents not being tenants within the meaning of
the Tenancy Act could not have become the owner of the land
on the tillers’ day. Alternatively it was contended that the
minor children of the appellant, she being a limited owner
had acquired a vested right in the land and, therefore, as
they were minors the date of compulsory purchase would be
postponed under section 32F ousting the jurisdiction of the
tribunal to determine the price under section 32G. The
Tribunal allowed
608
the applications and negatived the appellant’s contentions.
All the five appeals preferred by the appellant were allowed
by the Collector of Jalgaon. The revision petitions filed by
the tenants under section 76 of the Tenancy Act before the
Maharashtra Revenue Tribunal were allowed holding that even
though the landlady in these cases was a limited owner the
instrument settling the property on the landlady did not
preclude her from leasing the land and the lease was
accordingly valid under section 4, the tenant would be a
deemed tenant within the meaning of the Tenancy Act and such
deemed tenant would become the owner of the land held by him
on the tillers’ day. The appellant approached the High Court
under Article 227 of the Constitution. While rejecting the
special civil applications the High Court remanded the case
to the Collector to give an opportunity to the appellant to
agitate the contention about the quantum of price as it was
not dealt with by the Collector on merits. The appellant
having obtained a certificate under Article 133(1) (a) and
(b) of the Constitution preferred these five appeals.
Dismissing the appeals, the Court,
^
HELD: 1. On a plain reading of the deed and the
admitted position that the appellant had leased the land to
each of the respondents and in view of the requirements of
section 4 of the Tenancy Act, 1948, it is clear that the
respondents would be deemed tenants under that section. [616
E-F]
1 :1. Section 4 comprehends within its sweep any person
lawfully cultivating any land belonging to another person.
If land belongs to one person and another is lawfully
cultivating it, unless such person falls under any of the
excepted categories; he would acquire the status of a deemed
tenant. The excepted categories are: (a) a member of the
owner’s family, or (b) a servant on wages, payable in cash
or kind but not in crop share or a hired labourer
cultivating the land under the personal supervision of the
owner or any member of the owner’s family, or (c) a
mortgagee in possession. It would thus appear that if the
land belonging to one person is being lawfully cultivated by
another person and that such other person is not a member of
the owner’s family or a servant on wages payable in cash or
kind but not in crop share or a hired labourer or a
mortgagee in possession then such cultivator lawfully
cultivating the land would be deemed to be a tenant. The
legal fiction of clothing a lawful cultivator of land
belonging to other person has widened the traditional
concept of expression "tenant" which would normally imply
contractual relationship. [615 E-H, 616A]
1:2. Under the deed of settlement appellant was given a
life-estate. She was the owner of the land during her life
time with a limitation that she could not will, gift or sell
the property or encumber the same. In view of these four
limitations she is undoubtedly a limited owner. But this
limited owner holding the life-estate has been given the
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right to administer the estate after she attained majority.
Administration of the estate would normally include leasing
of the property except where a specific condition is
prescribed precluding the administrator from leasing the
property. There is no such limiting or restrictive condition
prohibiting the appellant in the course of her management
from leasing the land. The appellant beneficiary being a
woman, the settlors must have thought that she may not be
able to personally carry on agricultural operations and
therefore when the settlors authorised her, on attaining
majority, to administer the estate
609
it would per se in the absence of a limiting or restricting
condition to the countrary enable her to lease the land.
Thus, if the appellant as beneficiary after attaining
majority took over the administration and as part of the
administration leased the land, the person so inducted by
her on the land would be lawfully cultivating the land
belonging to the appellant and being not in any of the
excepted categories would be deemed to be a tenant.[616 B-E]
Dahyalal and Ors. v. Rasul Mohammed Abdul Rahim, [1963]
3 SCR 1, followed.
2. Upon a pure literal construction of deed coupled
with intendment of the settlement, the appellants’ interest
in the property was a vested interest during the life lime
with a right to take over management on attaining majority
and to deal with the property in her own way, and the
children had only contingent interest during the period. The
property would devolve on the heirs named in the deed and
the devolution would take place on her death. Section 13 of
the Transfer of Property Act makes this position clear since
none of her children to whom the remainder was given was in
existence at the time of transfer. Even if transfer is in
favour of unborn person, at the date of transfer to be valid
there has to be a prior interest created by the very
transfer. This prior interest though limited would not be
contingent but vested interest. In fact the interest of
future born children would be contingent till the death of
the appellant. The deed of settlement cannot be construed as
a transfer in favour of unborn person, yet it settles
property on trust and the unborn children, under trust, may
be beneficiaries but they can claim interest only after the
death of the appellant and no interest in her life time.
Under the deed of settlement an interest is created in
favour of the children of the appellant and the interest
would take effect on the happening of specified uncertain
event-uncertain as to time-namely, the death of the
appellant the interest of the children would be contingent.
It is nothing short of spes successionis [618 D-H, 619 A]
Rajes Kanta Roy v. Santi Debi, [1957] SCR 77, discussed
and distinguished.
3. The right to administer the property conferred on
the appellant on her attaining majority inheres the right to
lease the property. If it be so, it is futile to contend
that restraint on the right to encumber would preclude her
from leasing the land. The right to manage or administer an
immovable property such as agricultural land as a prudent
man, comprehends the right to lease, save where the contrary
intention is indicated. It is equally well-recognised that a
limited owner or a life-estate holder in agricultural land,
unless a clear intention to the contrary is expressed, would
be entitled to lease the land during his or her life time.
Reading the deed of settlement as a whole no such contrary
intention could be found. [620 B-D]
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JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 285-89
of 1969.
(From the judgment and order dated 7th December, 1966
of the Bombay High Court in Special Civil Appeal Nos. 4 to 8
of 1965)
610
G.L. Sanghi and A.G. Ratnaparkhi for the Appellant.
M.C. Bhandare, Mrs. Sunanda Bhandare, T. Sridharan and
Miss C.K Sucharita, for the Respondents.
The Judgment of the Court was delivered by
DESAI, J. In the wake of agrarian reforms initiated by
the Bombay Tenancy and Agricultural Lands Act, 1948
(’Tenancy Act’ for short) an amendment of far reaching and
revolutionary character was introduced in 1956 so as to
eliminate every intermediary between the tiller of the soil
and the state. The title of the landlord to the land passes
immediately to the tenant on the tillers’ day and there is a
completed purchase or sale thereof as between the landlord
and the tenant. The title of the land which was vested
originally in the landlord passes to the tenant on the
tillers’ day or the alternative period prescribed in that
behalf. This title is defeasible only in the event of the
tenant failing to appear or making a statement that he is
not willing to purchase the land or committing default in
payment of the price thereof as determined by the
Agricultural Lands Tribunal (See Sri Ram Ram Narain Medhi v.
The State of Bombay.
Section 32 provided that on April 1, 1957 styled the
tillers’ day, a tenant of agricultural land covered by the
Tenancy Act would become the owner of the land held by him
if other conditions specified in the section were fulfilled.
A forum styled Agricultural Lands Tribunal was set-up and a
procedure was prescribed in the Act to determine the price
payable by such tenant to the erstwhile landlord on becoming
owner of the land held by him. Accordingly five tenants of
five different pieces of agricultural land made five
separate applications on August 27, 1962 against a common
landlord, the appellant herein before the Agricultural Lands
Tribunal (’ALT’ for short), Raver, under section 32 of the
Tenancy Act for determining the price of land held by each
of them as tenant. The land lord appeared in each proceeding
and contested the right of the tenant to purchase the land,
inter-alia, contending that under a deed of settlement dated
May 22, 1930, she acquired a right only to usufruct of land
involved in the dispute and thus she is a limited owner and
the settlement imposes certain disability on her precluding
her from dealing with the property which would indicate that
she
611
could not have leased out the land thereby creating an
encumbrance which would be impermissible under the deed of
settlement and consequently the tenant of each piece of land
could not be said to be lawfully cultivating the land so as
to become the deemed tenant under section 4 of the Tenancy
Act. It was also contended that, the applicant (respondent
herein) before ALT was not a tenant within the meaning of
the Tenancy Act and therefore he could not have become the
owner of the land on the tillers’ day. Alternatively, it was
contended that the minor children of the landlord who being
the limited owner, had acquired a vested right in the land
involved in the dispute under the deed of settlement and
therefore as the landlords were minors the date of
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compulsory purchase in the case of such minor-landlord would
be postponed under section 32 and therefore the ALT had no
jurisdiction to determine the price under section 32 G.
The ALT held that the appellant was the landlord and
the tenant in each case was a deemed tenant under section 4
of the Tenancy Act and on 1st April, 1957 by the operation
of law he became the owner thereof. It was also held that
the ALT was under a statutory obligation to determine the
price under section 32 G. The ALT accordingly proceeded to
determine the price in each case.
Five separate appeals were preferred by the appellant
landlord in each case to the Collector of Jalgaon. The
Collector held that the present appellant landlord had a
limited interest in the land and thus as her interest fell
short of ownership, she could not be regarded as landlord
within the meaning of the expression in the Tenancy Act,
Consequently, the Collector held that the tenant in each
case could not be deemed to be a tenant within the meaning
of the expression in the Tenancy Act. It was accordingly
held that the tenant in each case did not become the deemed
purchaser under section 32 and therefore the ALT had no
jurisdiction to determine the price. The Collector allowed
all the five appeals and dismissed the five applications
preferred by the tenant in each case.
The tenant in each case preferred a revision petition
under section 76 of the Tenancy Act before the Maharashtra
Revenue Tribunal. The Special Bench of the Maharashtra
Revenue Tribunal by a common judgment allowed five revision
petitions preferred by the tenants and set aside the order
of the Collector and restored the order made by the ALT
holding that even though the landlord in these cases was a
limited owner the instrument settling the property
612
on the landlord did not prohibit the landlord from leasing
the land and lease was accordingly valid and therefore under
section 4, the tenant would be a deemed tenant within the
meaning of the Tenancy Act and such deemed tenant would
become the owner of the land held by him on the tillers’
day.
The landlord approached the High Court under article
227 of the Constitution. The Division Bench of the Bombay
High Court by a common judgment disposed of the five special
civil applications filed by the landlord. The High Court
relying on the decision of this Court in Dahya Lal and
Others v. Rasul Mohammed Abdul Rahim held that the deed of
settlement did not prohibit the landlord from leasing the
land and if the lease is created by such a limited owner not
precluded from leasing the land, it would confer on the J
tenant of such landlord, the status of a deemed tenant under
section 4 and such a tenant would be deemed to have
purchased the land held by him on the tillers’ day. The High
Court negatived the contention that the children of the
landlord had a vested interest in the land involved in the
dispute during the life-time of the landlord and The
children being minors, the date of purchase would be
postponed under section 32 F. The High Court accordingly
rejected the special civil applications but remanded the
case to the Collector to give an opportunity to the landlord
to agitate the contention about the quantum of price which
Contention was not dealt with by the Collector on merits.
The landlord by certificate under article 133 (1) (a)
and (b) of the Constitution preferred these five appeals
Expression ’Tenancy’ has been defined in section 2 (17)
of the Act to mean "relationship of landlord and tenant".
’Tenant’ is defined in section 2 (18) as under:
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’Tenant" means a person who holds land on lease and
includes:
(a) a person who is deemed to be a tenant under
section 4;
(b) a person who is a protected tenant; and
613
(c) a person who is a permanent tenant;"
Section 4 which is material for the present appeal
reads as under:
"4. A person lawfully cultivating any land
belonging to another person shall be deemed to be a
tenant if such land is not cultivated personally by the
owner and if such person is not:-
(a) a member of the owner’s family, or
(b) a servant on wages payable in cash or kind but not
in crop share or a hired labourer cultivating the
land under the personal supervision of the owner
or any member of the owner’s family, or
(c) a mortgagee in possession."
There are two explanations appended to this section
which are not material for the present purpose. Section 32
(1) which was introduced in 1956 provided that on the 1st
day of April, 1957, called the tillers’ day, every tenant,
subject to the provisions of the next succeeding sections,
be deemed to have purchased from his landlord, free of all
encumbrances subsisting thereon on the said day, the land
held by him as tenant if he satisfied the conditions set out
in the section. Section 32G provided that as soon as may be
after the tillers’ day, the ALT shall publish or cause to be
published a public notice in the prescribed form in each
village within the jurisdiction calling upon:-
(a) all tenants who u/s 32 are deemed to have
purchased the lands:
(b) all landlords of such lands, and
(c) all other persons interested therein; to appear
before the ALT on the date specified in the
notice. The ALT shall then proceed to record
statement of the tenant whether he is or is not
willing to purchase the land held by him as a
tenant If the tenant is willing to purchase, the
Tribunal shall after giving an opportunity to the
tenant and landlord and all the other persons
614
interested in such land to be heard and after
holding an enquiry determine the purchase price of
such land in accordance with the provisions of
section 32 and sub-section 3 of section 63A.
Section 32 post pones the date of statutory
purchase in the case where a landlord is a minor
or a widow or a person subject to any mental or
physical disability or a serving member of the
armed forces to a date one year from the expiry of
the period during which such landlord is entitled
to terminate the tenancy under section 31.
Having noticed the relevant provisions of the Act, it
is necessary first to refer to the deed of settlement under
which the landlord acquired land involved in this appeal. By
the deed of settlement Exh. 2-A dated May 22, 1930 Devidas
Devlal Seth father and Sheo Parshad Devidas Seth, brother of
the appellant landlord settled on trust the properties more
particularly described in the deed. At the time of
settlement, appellant the beneficiary under the trust was a
minor and the deed provided for the consequences to ensue on
her attaining majority. The relevant portion of the deed of
trust in this behalf reads as under:
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"After the girl completes 21 years and while she
is physically and mentally in good condition, the right
of carrying on the ’vahivat’ (management) of the estate
and of spending the income thereof is with her alone,
during her life-time. However, she has no right in any
way either to purchase the aforesaid estate or to
create in any way a charge (Translation is disputed and
is stated that ’encumbrance’ is the appropriate
rendering) thereon; nor she has a right to dispose of
the said estate under a will."
The deed provides for the disposal of the estate on the
death of beneficiary, the appellant giving 2/3rd of the
estate to her male issues and 113rd to the female issues. In
this behalf the recital in the deed is: that the children as
many as will be alive at the time of her death are to get
the estate according to the terms mentioned in the deed and
if no child will be living the estate is to go to her grand
children according to the terms in the deed. The direction
was given that 2/3rd and 1/3rd share shall be given to the
children who will be living at the time of her death and in
the event that there is no child of a particular sex the
whole estate was to go to the children
615
of the other sex. There is also a provision about disposal
of the estate in the event the appellant has no child of her
own.
The contention which Mr. G.L. Sanghi, the learned
counsel for the appellant put in the forefront was that the
appellant being a limited owner under the deed of settlement
was not entitled to lease the land and therefore respondents
could not be said to be said to be lawfully cultivating the
land and therefore could not become deemed tenants under
section 4. Consequently, they could not have become deemed
purchasers on the tillers’ day. As a corollary it was
contended that in any event as the children have a vested
remainder in the estate the date of purchase would be
postponed as provided in section 32 of the Act, and
therefore ALT could not entertain an application under
section 32 and proceed to determine the price on the footing
that the tenant has become a deemed purchaser.
Under the deed of settlement appellant acquired a life
interest and the reversion-remainder was in her children.
During her life time she was entitled to enjoy the income of
the property but she could not dispose of the property by
will, gift or sale. She was also under a disability to
encumber the estate and it was urged that lease is an
encumbrance. The substantial question is whether a limited
owner of agricultural land governed by the Tenancy Act
during his/her life time was entitled to lease the land and
if he or she did lease the land whether the tenant inducted
by the holder of life estate could be said to be lawfully
cultivating the land so as to acquire the status of a deemed
tenant under section 4 and as a corollary would become a
deemed purchaser on the tillers’ day. Section 4 has been
extracted hereinbefore. It comprehends within its sweep any
person lawfully cultivating any land belonging to another
person. If land belongs to one person and another is
lawfully cultivating it, unless such person falls under any
of the excepted categories; he would acquire the status of a
deemed tenant. The excepted categories are: (a) a member of
the owner’s family, or (b) a servant on wages payable in
cash or kind but not in crop share of a hired labourer
cultivating the land under the personal supervision of the
owner or any member of the owner’s family, or (c) a
mortgagee in possession. It would thus appear that if the
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land belonging to one person is being lawfully cultivated by
another person and that such other person is not a member of
the owner’s family or a servant on wages payable in cash or
kind but not in crop share or a hired labourer or a
mortgagee in possession then such cultivator lawfully
cultivating the land would be deemed
616
to be a tenant. The legal fiction of clothing a lawful
cultivator of land belonging to other person has widened the
traditional concept of expression ’tenant’ which would
normally imply contractual relationship.
Under the deed of settlement appellant was given a
life-estate. She was the owner of the land during her life
time with a limitation that she could not will, gift or sell
the property or encumber the same. In view of these four
limitations she is undoubtedly a limited owner. But this
limited owner holding the life estate has been given the
right to administer the estate after she attained majority.
Administration of the estate would normally include leasing
of the property except where a specific condition is
prescribed precluding the administrator from leasing the
property. There is no such limiting or restrictive condition
prohibiting the appellant in the course of her management
from leasing the land. The appellant beneficiary being a
woman, the settlors must have thought that she may not be
able to personally carry on agricultural operations and
therefore when the settlors authorised her, on attaining
majority, to administer the estate it would per se in the
absence of a limiting or restricting condition to the
contrary enable her to lease the land. Thus, if the
appellant as beneficiary after attaining majority took over
the administration and as part of the administration leased
the land, the person so inducted by her on the land would be
lawfully cultivating the land belonging to the appellant and
being not in any of the excepted categories would be deemed
to be a tenant. On a plain reading of the deed and the
admitted position that she had leased the land to each of
the respondents and keeping in view the requirements of
section 4, the conclusion that the respondents would be
deemed tenants under section 4 of the Act is inescapable.
The view which we are taking, is borne out by the
observations of this Court in Dahyalal and Ors. v. Rasul
Mohammed Ahdul Rahim (supra). In that case the tenant was
inducted on the land by a mortgagee in possession and the
contention was that as the mortgagee in possession would not
be deemed to be a tenant because he is in the excepted
categories set out in section 4, the tenant inducted by him
would not acquire the status of a deemed tenant. After
analysing the provisions of the Tenancy Act, this Court held
that all persons other than those mentioned in clauses (a),
(b) and (c) of section 4 who lawfully cultivate land
belonging to other persons whether or not their authority is
derived directly from the owner of the land must be deemed
tenants of the land. The execution of
617
mortgagee in possession from the category of deemed tenant
was explained on the ground of public policy in that to
confer such status upon mortgagee in possession would be to
invest him with rights inconsistent with his fiduciary
character. However, the tenant inducted by a mortgagee in
possession in discharge of his liability of prudent
management cast by section 76(a) of the Transfer of Properly
Act as also under the authority derived from the mortgagor
would be lawfully cultivating the land. Accordingly the
person inducted would be a deemed tenant who would be
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entitled to the protection of the Act even after the
mortgage is redeemed. Once such a tenant enjoys the status
of a deemed tenant and holds land in that capacity, on the
tillers’ day he would become the deemed purchaser.
A contention was raised that this Court overlooked in
Dahyalal’s ease a vital point that a transferor cannot
confer a better title on another than he himself possesses
and that therefore in view of section 76(a) of the Transfer
of Property Act a mortgagee in possession cannot create an
interest to endure beyond redemption of mortgage to bind the
mortgagor. It was urged that if a mortgagee in possession is
specifically excluded from acquiring status of a deemed
tenant, ipso facto tenant inducted by him cannot acquire
that status. The court negatived the contention. It would be
advantageous in this context to refer to Prabhu v. Ramdeo
and Ors. where this Court held that a tenant of a mortgagee
in possession can invoke the benefit of subsequent tenancy
legislation which provided that such a tenant could not be
evicted except in the circumstances set out in that
legislation. The mortgaged property in that case was land
used for agricultural purposes and the mortgage was
usufructory mortgage. After redemption the original
mortgagor sued for actual possession from tenant inducted by
the erstwhile mortgagee alleging that on redemption of
mortgage, the tenant has to surrender possession. In the
meantime, Rajasthan Tenancy Act of 1955 had been introduced
and the tenant claimed protection against eviction under it.
This Court after referring to Mahabir Gope and Others v.
Harbans Narain Singh and others and Harihar Prasad Singh and
Another v. Must. of Manshi Nath Prasad and Others held that
rights of the tenants inducted by the mortgagee may
618
conceivably be improved by virtue of statutory provisions
which may meanwhile come into operation. Such a case would
clearly be an exception to the general rule prescribed by
the Transfer of Property Act that mortgagee in course of
management cannot create an interest which would endure
beyond the redemption of mortgage.
It was next contended that in any event the appellant
having been given a life estate with the vested remainder in
her children, she had no vested interest in the property
during her lifetime but her interest would be contingent
interest and therefore even during her lifetime, the
children would be the owners and as they were minors the
date of statutory purchase would be postponed under section
32 F. Looking to the terms of the deed of settlement,
subject to the limitations therein prescribed the appellant
had a vested interest with a right to take over management
on attaining majority and to deal with the property in her
own way. Assuming without deciding that she had no right to
will, gift, sell or encumber the property yet assuming she
did deal with it in the manner prohibited it would
nonetheless be binding during her lifetime. The property
would devolve on the heirs named in the deed and the
devolution would take place on her death. Therefore, upon a
pure literal construction of deed coupled with intendment of
the settlement it is difficult to accept Mr. Sanghi’s
submission that her interest in the property during her life
time was contingent interest. This will further be borne out
by the provision contained in section 13 of the Transfer of
Property Act inasmuch as she was given life or limited
interest and the remainder to her children none of whom was
in existence at the time of transfer. Even if transfer is in
favour of unborn person, at the date of transfer to be valid
there has to be a prior interest created by the very
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transfer. This prior interest though limited would not be
contingent but vested interest. In fact the interest of
future born children would be contingent till the death of
the appellant. The deed of settlement cannot be construed as
a transfer in favour of unborn person, yet it settles
property on trust and the unborn children, under trust, may
be beneficiaries but they can claim interest only after the
death of the appellant and no interest in her life time.
Under the deed of settlement an interest is created in
favour of the children of the appellant and the interest
would take effect on the happening of specified uncertain
event-uncertain as to time-namely, the death of the
appellant, then till the death of the appellant the interest
of the children would be contingent. It is nothing short of
spes
619
successionis. Mr. Sanghi, however, referred to Rajes Kanta
Roy v. Santi Debi and urged that by a parity of reasoning we
must hold that the interest of the appellant was a
contingent interest. In that case one Ramani created an
endowment in respect of some of his properties in favour of
his family deity and appointed his three sons as shebaits.
After the death of one of his sons, widow of the deceased
son instituted a suit against other members of the family
for a declaration that she as an heir of her deceased
husband, was entitled to function as shebait, in place of
her husband. The suit ended in a consent decree recognising
the right of the widow as a co-shebait. Subsequently the
settlor Ramani and his two other sons filed a suit against
widow of the pre-deceased son for a declaration that the
consent decree was null and void. During the pendency of the
suit the settlor Ramani executed a registered trust deed in
respect of his entire property. The eldest son was appointed
trustee to hold property under trust subject to certain
powers and obligations. The second suit which was pending at
the death of settlor Ramani ended in a consent decree. One
of the terms of the consent decree was that widow of the
predeceased son gave up her rights under the earlier consent
decree by which she obtained status of co-shebait and she
was paid Rs. 475/- per month as allowance. Complaining of a
default in the payment of allowance she filed an application
for execution to realise the arrears and she sought
attachment and sale of certain properties. The eldest son
filed an objection contending that under the settlement of
trust his interest in the property was contingent till the
debts are paid and as the precondition is not satisfied the
contingent interest is not attachable. Negativing this
contention, it was held that the determination of the
question as to whether any interest created by trust deed is
vested or contingent has to be guided by the principles
recognised under sections 19 and 21 of the Transfer of
Property Act and the Indian Succession Act. After referring
to certain English authorities and text-books by writers it
was held that the question is really one of intention to be
gathered from a comprehensive view of all the terms of a
document. After examining all the terms of the deed of
trust, this Court held that even though the debts were not
discharged the appellants, namely, the sons acquired a
vested interest and not a contingent one.
Having examined the trust deed before us, we are
satisfied that the appellant had the vested interest in the
property during
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her life time and the children had only contingent
intermediating that period.
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It was lastly contended that as the appellant was
prohibited from creating an encumbrance on the property, she
had no right to lease the property because in a certain way
lease is also an encumbrance. Without going into the wider
question whether the expression ’encumbrance’ in the context
in which it is used would comprehend lease within its fold
we would dispose of the contention on the short ground that
the right to administer the property confined on the
appellant on her attaining majority inheres the right to
lease the property. If it be so, it is futile to contend
that restraint on the right to encumber would preclude her
from leasing the land. The right to manage or administer an
immovable property such as agricultural land as a prudent
man, comprehends the right to lease, save where the contrary
intention is indicated. It is equally well recognised that a
limited owner or a life estate holder in agricultural land,
unless a clear intention to the contrary is expressed, would
be entitled to lease the land during his or her life time.
Reading the deed of settlement as a whole, we do not find
any such contrary intention and, therefore, we must negative
the contention .
Having examined all the contentions of Mr. Sanghi, we
find no merit in any of them and therefore all these appeals
fail and are dismissed with costs. Hearing fee in one set.
V.D.K . Appeals dismissed.
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