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Civil Property & InheritanceSupreme Court of India

Hirabai (D) Thr. L.Rs. & Ors. v. Ramniwas Bansilal Lakhotiya (D) by L.Rs. & Ors.

Civil Appeal · 2019 INSC 571Decided 25 Apr 2019
Civil Appeal No. 4282 of 2019
Justice Abhay Manohar Sapre · Justice Dinesh Maheshwari

Background

Two sisters (the original plaintiffs, since substituted by their legal representatives as appellants) challenged a 1965 sale deed by which their brother (acting as "Karta," or male head, of their joint family) sold a family property in Jalna, Maharashtra ("Moti Building") to a third party. An earlier 1971 suit filed by the purchaser's heirs against the brother had already resulted in a 1975 decree recognizing the purchaser's heirs as owners, which had attained finality. The sisters then filed a fresh suit seeking a declaration that this 1975 decree did not bind them and that the original 1965 sale deed was invalid, but the trial court, first appellate court, and the Bombay High Court (Aurangabad Bench) all dismissed their suit.

Decision Breakdown

The Supreme Court upheld the dismissal, holding that the finding in the earlier 1971 suit, that the brother, as Karta, had validly sold the property for family legal necessity (to pay off his debts), bound not just him but also the sisters, as members of the same joint family, since a Karta's sale for legal necessity and family benefit binds all family members. The Court found the sisters had failed to plead or prove that the sale was not for the family's benefit or that there was no legal necessity, while the purchaser's side had affirmatively proved the sale was justified. It also noted the sisters had themselves admitted in evidence that they filed their suit at their brother's instigation, which the Court treated as evidence the suit was a collusive attempt to defeat the earlier, final decree rather than a bona fide claim. Finding no error in the concurrent findings of the courts below, the Supreme Court dismissed the appeal as devoid of merit.

Lesson Learnt

A sale of joint family property made by its "Karta" for a genuine family necessity or benefit is binding on all members of the family, even those who did not personally consent to or participate in the transaction, and courts will scrutinize a later challenge to such a sale for signs that it is a collusive attempt to escape an earlier, already-final decree.

Hirabai (D) Thr. L.Rs. & Ors. v. Ramniwas Bansilal Lakhotiya (D) by L.Rs. & Ors. – Legal Case Shots | LegalAware