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Civil Property & InheritanceSupreme Court of India

Prasanta Kumar Sahoo & Ors. vs. Charulata Sahu & Ors.

Civil Appeal · 2023 INSC 319Decided 29 Mar 2023
Civil Appeal Nos. 2913-2915 of 2018
A.S. Bopanna · J.B. Pardiwala

Background

This was a decades-old family partition dispute over the ancestral and self-acquired properties of one Late Kumar Sahoo, fought between his son (Defendant No. 1, now represented by his heirs, the appellants) and his two daughters: Charulata Sahoo (the original plaintiff) and Santilata (Defendant No. 2). In 1980, Charulata sued for her 1/3rd share; the trial court held some properties were self-acquired (giving the son a larger share) and others ancestral. While the son's first appeal was pending in the High Court, he privately entered into a settlement with his sister Santilata (Defendant No. 2), under which she gave up her share of the ancestral property in his favour for cash and land, and a compromise petition to this effect (signed by counsel, not the parties themselves) was accepted by a Single Judge. Santilata's heirs later challenged this settlement by cross-appeal, and the High Court's Division Bench struck down the compromise as invalid while otherwise upholding the partition decree.

Decision Breakdown

The Supreme Court addressed two questions: how the 2005 Amendment to Section 6 of the Hindu Succession Act (recognizing daughters as coparceners with equal rights, per the Constitution Bench ruling in Vineeta Sharma v. Rakesh Sharma) affected the shares in this still-pending partition suit, and whether the compromise between the son and Santilata was valid. On the first, the Court held that since no registered partition deed or final decree had been passed before the cut-off date of 20.12.2004 (only a preliminary decree existed, and a suit for partition is not concluded until the final decree), the 2005 Amendment fully applied, both daughters were entitled to an equal 1/3rd share each in all the properties (ancestral and self-acquired), along with the son, overriding the earlier unequal shares fixed by the trial court. On the compromise, the Court held it invalid: under professional conduct rules and settled case law (Byram Pestonji Gariwala and others), a lawyer needs clear, specific instructions or written authorization from the client before compromising a substantive right, and here the compromise petition had been signed by counsel without such express authorization from Santilata, and the plaintiff Charulata was never even a party to it. Consequently, the son's heirs could not claim Santilata's share, and both appeals were dismissed, with the trial court directed to redraw the final decree, reflecting 1/3rd shares each, within three months, given the litigation's 40-year age and the plaintiff's advanced age (85 years).

Lesson Learnt

A compromise affecting a party's property rights, if signed only by a lawyer without the client's clear and specific authorization, will not bind that client or survive judicial scrutiny; and under the 2005 Hindu Succession Amendment, daughters are entitled to an equal coparcenary share with sons in ancestral property as long as the partition was not legally finalized (by registered deed or court decree) before 20 December 2004, even if a partition suit was filed decades earlier.

Prasanta Kumar Sahoo & Ors. vs. Charulata Sahu & Ors. – Legal Case Shots | LegalAware