# Amar Nath Kapoor & Ors v. Krishna Gopal Kapoor & Ors

- **Citation:** (2016) 5 ILRA 159
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2016-05-25
- **Bench:** Sudhir Agarwal, Rakesh Srivastava
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/amar-nath-kapoor-ors-v-krishna-gopal-kapoor-ors-43790
- **Pages:** 28

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5 All. Amar Nath Kapoor & Ors. Vs Krishna Gopal Kapoor & Ors.

159

Whether relief can be granted beyond pleadings and relief prayed:-

25. There is yet another ground on which these applications deserve to be rejected. As already
noted in preceding paragraphs of this judgment, whatever relief was sought by the appellant was
granted by this court by judgment dated 29.03.2008. The relief attempted to be sought by means of
the above noted three applications namely modification, recall and review applications, cannot be
even entertained in the absence of any manifest error in the order dated 29.03.2008, on the settled
legal proposition that a relief not founded on the pleadings, can not be granted. This view is well
supported by the judgments of Hon'ble Supreme Court in State of Orrisa Vs. Mamta Mohanty,
2011 (3) SCC 436 (para-55), Trojan and Co. Vs. Nagappa Chettiar, AIR 1953 SC 235, Ishwar
Dutt Vs. Collector (LA), 2005 (7) SCC 190 and State of Maharashtra Vs. Hindustan
Construction Co. Ltd., 2010 (4) SCC 518.

Applicability of amended Section 23(2):-

26. In the case of Union of India and another Vs. Raghubir Singh (dead) by LRs. Etc.
(1989) 2 SCC 754 (paras-32, 33 and 34), Constitution Bench of Hon'ble Supreme Court considered
the provisions of Section 23 and Section 11 of the Act and Section 30(2) of the Amending Act,
1984 and held that the enhanced solatium of 30% shall, by virtue of Section 30(2) shall apply only
to the award by the Collector or by the court made between 30.04.1982 and 24.09.1984. In the
present set of facts admittedly the award by the S.L.A.O. was made on 08.03.1977 and by the court
on 27.02.1982 which is prior to the cut off dates. Thus even on merit the judgment dated
29.03.2008 passed by this court in the present appeal awarding solatium @ 15% does not suffer
from any error.

27. In view of the above discussions, all the above noted applications filed by the applicant/
appellant, are dismissed.
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APPELLATE JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 25.05.2016

BEFORE

THE HON'BLE SUDHIR AGARWAL, J.
THE HON'BLE RAKESH SRIVASTAVA, J.

First Appeal No.- 629 Of 2005
&
First Appeal No.- 177 Of 2006

Amar Nath Kapoor & Ors. ...Appellants
Versus
Krishna Gopal Kapoor & Ors. ...Respondents
160 INDIAN LAW REPORTS ALLAHABAD SERIES
Councel For Appellants:
S.D. Singh, A.K. Singh, Ajay Kumar Singh, R.S. Prasad, Ravi Kant, R.R. Mansingh

Councel For Respondents:
B.D. Shukla, Atul Kumar Srivastava, K.M. Asthana, Radhey Shyam, Rajesh Trivedi

Held:-

Award dated 27.05.1979 is admissible; suit for specific performance maintainable; compound interest payable
on last installment.

Case Laws Discussed:-

Kale vs. Deputy Director of Consolidation (1976)
Lachhman Dass vs. Ram Lal (1989)
Sardar Singh vs. Krishna Devi (1995)
Bhoop Singh vs. Ram Singh Major (1996)
Kashinathsa vs. Narsingsa (1961)

(Delivered by Hon'ble Sudhir Agarwal, J.)

1. Both these appeals are connected involving common questions of facts and law and
therefore have been heard together and are being decided by this common judgment.

2. First Appeal No. 629 of 2005 was filed before this Court under Section 96 of Code of Civil
Procedure (hereinafter to referred as "CPC") and First Appeal No. 177 of 2006 has been registered
after its transfer from the Court of VIIth Additional District Judge, Kanpur Nagar pursuant to this
Court's order dated 21.11.2005.

3. First Appeal No. 629 of 2005 (hereinafter to referred as "Appeal-II") is a plaintiff's appeal
arisen from the same judgment dated 30th of May, 2005 and decree dated 05.07.2005 passed by Sri
B.P. Saxena, Additional Chief Metropolitan Magistrate - IV/Additional Civil Judge (Senior
Division), Kanpur Nagar in Original Suit No. 1300 of 1994 (hereinafter to referred as "Suit-2")
whereby suit has been dismissed.

4. First Appeal No. 177 of 2006 (hereinafter to referred as "Appeal-I") has also arisen from the
same judgment dated 30th of May, 2005 and decree dated 05.07.2005 passed by the same Judge
namely Sri B.P. Saxena, Additional Chief Metropolitan Magistrate - IV/Additional Civil Judge
(Senior Division), Kanpur Nagar in Original Suit No. 714 of 1994 (hereinafter to referred as "Suit1") decreeing aforesaid suit and directing defendant appellants to execute sale deed of their share in
favour of plaintiff-respondents in terms of award dated 27.05.1979 after receiving remaining
consideration as stated in the award, along with ten per cent interest from the date of award, till
execution of sale deed. This is, therefore, defendant's appeal.
5 All. Amar Nath Kapoor & Ors. Vs Krishna Gopal Kapoor & Ors.

161

5. Plaintiffs and defendants belong to a family of common ancestor, late Chhutkan Lal
Kapoor, who had two sons namely late Sidha Gopal Kapoor and Manoo Lal Kapoor. Amar Nath
Kapoor is son of late Manoo Lal Kapoor and Krishna Gopal Kapoor is son of Sidha Gopal Kapoor.
To understand the relationship, family tree is given as under:-
Chhutkan Lal Kapoor

 Chhutkan Lal Kapoor

Siddha Gopal Kapoor

 Mannu Lal Kapoor

 (Smt. Shyamo Bibi -wife)

Krishna Gopal Kapoor

(Smt. Usha Rani - wife)

 Amar Nath Kapoor

 (Smt. Indrani Kapoor - wife)

 Naveen Kapoor
 Sharad Kapoor
 Praveen Kapoor Om Nath Kapoor

Suit - 1

6. Krishna Gopal Kapoor, his wife Smt. Usha Rani Kapoor and three sons, Navin Kapoor,
Sharad Kapoor and Praveen Kapoor instituted Suit-1 in the Court of Second Civil Judge, Kanpur
impleading Shri Amar Nath Kapoor, his mother Smt. Shyamo Bibi, wife Smt. Indrani Kapoor and
son Om Nath Kapoor as defendants. Suit was instituted for specific performance directing
defendants to execute sale deed in favour of plaintiffs in respect to their half share in House No.
7/24, Tilak Nagar, Kanpur, boundaries whereof were mentioned at the bottom of plaint dated 22nd
April, 1983.

7. The plaint case set up is that defendants constitute Hindu Undivided Family (hereinafterto
referred as "HUF") of which defendant -1, Amar Nath Kapoor was Karta and manager. The
defendants along with Sri Sidha Gopal Kapoor purchased House No. 7/24, Tilak Nagar, Kanpur
from one Rai Sahab Lala Dhanpal Chandra, son of Lala Karorimal (Rtd. Principal from
Government Technical Institute, Lucknow) who, then, was residing at Sita Niwas, Char Bagh,
Lucknow, through sale deed dated 14th of August, 1946, registered in the office of Sub Registrar
on 26th of August, 1946. For the aforesaid purchase, requisite funds were made available from
HUF funds.

8. Since the date of purchase, defendants and Sri Siddha Gopal Kapoor and his family
members are and were in joint possession and ownership of the said property. Defendants being in
need of money for expansion of their business, decided to sell their undivided half share in the
162 INDIAN LAW REPORTS ALLAHABAD SERIES
disputed property, hence, entered into a "contract for sale" dated 07.02.1979 with one Jagdish
Prasad Gupta, son of Gopi Kishan Gupta, and Urmila Devi wife of Vishwa Nath Gupta, resident of
25/79, Birhana Road, Kanpur. Defendants agreed to transfer and convey their half undivided share
in disputed property to prospective vendees for a good and valuable consideration. Contract for sale
dated 12.02.1979 was registered in the office of Sub Registrar, Kanpur on 27.03.1979.
Subsequently, prospective vendees backed out for the reason that vendors could not take steps for
division of disputed property by metes and bounds. A cancellation deed dated 24.09.1979 was
executed and registered in the office of Sub Registrar, Kanpur.

9. Later on, a dispute of share between appellants and family of Siddha Gopal Kapoor was
referred for arbitration and mediation of one M.M. Thapar wherein on 27.05.1979 it was decided
before Mediator that defendants shall transfer and convey their undivided half share in the disputed
property to plaintiffs. The sale consideration agreed between the parties was Rs.4,16,000/-, out of
which Rs.3, 24, 875/- was paid in the following manner:-

A. Rs. 1,00,000/- by Cheque No. 083783 Dt. 13.06.1979drawn on OBC Ltd., The Mall,
Kanpur by Sri Sidh Co. in favour of Amar Nath Kapoor.

B. Rs.1,00,000/- through entries passed in the name of Amar Nath Kapoor HUF in the
account book of M/s. Beni Prasad & Co., Amritsar on 15.06.1979.

C. Rs.1,24,875/- through entries passed in the name of Amar Nath Kapoor in the account
book of M/s. Beni Prasad & Co., Amritsar on 30.06.1980 including interest of Rs.16,875/-.

10. Defendants handed over possession of half portion of disputed premises which was in their
possession to plaintiffs, by vacating the same and handing over keys thereof on 15.06.1979.
Defendant-1, Amar Nath Kapoor, who is Karta and manager of HUF addressed a letter
Dt.23.04.1980 to the plaintiffs acknowledging and confirming receipt of Rs.1,00,000/- through
Cheque No. 083783 Dt.13.06.1979 as first instalment of cash down payment towards sale
consideration of aforesaid half share in the disputed property. It was also acknowledged that a letter
of authority dated 21.04.1980 enabling defendant-1 to get a sum of Rs.1,00,000/- transferred to his
credit from M/s. Beni Prasad & Co., Amritsar was issued and the said amount was second
installment towards sale consideration. It was also agreed that whenever plaintiffs would require
for transfer of existing electric connection in their name appropriate documents shall be signed by
defendants.

11. Defendants applied on 21st December, 1981 before competent authority under Urban Land
(Ceiling and Regulation) Act, 1976 (hereinafter to referred as 'Act 1976') for permission. Their
application was received in the office of competent authority on 24th December, 1981, but
thereafter, it was not pursued by defendants.

12. On 2nd February, 1981 defendant-1 as Karta and manager of HUF, applied to Income Tax
Officer, Central Circle-4, Kanpur, for certificate under Section 230 A (1) of Income Tax Act, 1961
5 All. Amar Nath Kapoor & Ors. Vs Krishna Gopal Kapoor & Ors.

163
(hereinafter to referred as "Act, 1961") to transfer its half share in disputed property to plaintiffs.
Thereafter, necessary certificate under Section 230-A (1) of Act, 1961 was granted by Income Tax
Department on 11.02.1981.

13. Plaintiffs through plaintiff-1 gave a letter of authority dated 05.04.1983 to M/s. Ram
Mohan Das @ Company, Amritsar to transfer Rs.1,92,556/- for completing entire amount of sale
consideration to defendant-1. The said letter of authority was in possession of Mr. N.L. Sahgal,
Chief Executive of M/s. Jagatjit Cotton Textile Mills Ltd., Phagwara to be passed on to defendant-1
at the time of registration of sale deed.

14. As per Mediator, plaintiffs were also required to pay interest at the rate of 15 per cent per
annum on the sale consideration of Rs.4,16,000/-. Thus, as on 31st of March, 1983, sale
consideration along with interest was worked out to Rs.5,17,431/- and the same has been paid in
the manner as stated above to defendants.

15. Plaintiffs throughout have been ready and willing to purchase defendants' half share in
disputed property and to get sale deed executed in their favour, having paid sale consideration
which was received by defendants in the manner aforesaid, but defendants avoided execution of
sale deed without any rhyme or reason. On 14th of April, 1983 a draft sale deed was prepared and
sent to defendants but they did not return the same and also failed to show their willingness for
execution of sale deed. Even after 22nd of April, 1983, plaintiffs continued to pursue defendants to
execute sale deed in terms of Mediator's award. It was settled between the parties that defendants
shall hold Rs.3,24,875/- as advance till execution of sale deed and on the balance amount, interest
shall be payable at the rate of 18 per cent per annum. The said settlement was incorporated in the
letter dated 07.01.1984 written by defendants and addressed to plaintiffs.

16. Defendants applied for obtaining permission of Ceiling Authority on 07.01.1984 by duly
completing the form, but it could be received on 30th of March, 1988; whereupon plaintiffs
approached defendants to execute sale deed, but they did not respond.

17. Subsequently, defendants served a notice dated 17th of August, 1993 claiming
Rs.10,40,885/- as balance sale consideration for execution of sale deed. Plaintiffs in their reply to
notice sent a bank draft of Rs.3,86,871/- which included balance amount of Rs.1,08,000/- together
with interest, agreed at the rate of 18 per cent per annum showing their willingness for execution of
sale deed. Defendants returned above bank draft and refused to execute sale deed by their reply
dated 29th October, 1993 alleging that plaintiffs have committed breach of terms of contract for
sale. Claim of defendants for Rs.10,40,885/- upto 15th June, 1983 is founded on an assumption that
interest agreed at the rate of 18 per cent per annum, payable, was compound and not simple.

18. During pendency of suit, defendant-1, Amar Nath Kapoor, died on 26.02.2004 and since
his legal heirs were already on record, therefore, suit proceeded with remaining parties.
164 INDIAN LAW REPORTS ALLAHABAD SERIES

19. On behalf of defendants - 1, 2 and 3, a combined written statement dated 15th April, 1995
was filed stating that Smt. Shyamo Bibi died on 25.05.1986, that is before registration of suit in
1994. It was admitted that disputed house was purchased for valuable consideration by late Sidha
Gopal Kapoor and Amar Nath Kapoor, having equal share. The sale consideration was paid from
their respective HUF funds. After purchase, defendant-1 along with his branch occupied entire
southern portion together with southern lawn, part of servants' quarters, while late Sidha Gopal
Kapoor along with his branch entered into occupation of northern portion of premises. Contract for
sale dated 7th of February, 1979 was admitted. Court proceedings for partition were not initiated
with an intention to have matter settled between parties, amicably, out of Court, which could not be
arrived at due to unfair stand on the part of late Sidha Gopal Kapoor and after his death, by plaintiff
-1. It is also admitted that for amicable resolution, dispute was referred to Shri M.M. Thapar for
mediation. He (Mediator) made award on 27th of May, 1979 working out value of half share in
disputed property as Rs.4,16,000/-. Since late Sidha Gopal Kapoor was not in a position to pay
entire amount in lump-sum, it was decided to make payment in instalments along with interest
accruing on the outstanding amount from time to time. Rs.1,00,000/- was paid on 13.06.1979 by
Cheque and further amount of Rs.1,00,000/- and Rs.1,24,875/- was paid through entries in account
books of M/s. Beni Prasad & Co., Amritsar, where-after a balance amount of Rs.10,8000/- together
with interest agreed at the rate of 15 per cent per annum, compound, w.e.f. 15.06.1979 up to
15.06.1981, was payable so as to complete sale consideration, failing which 18 per cent per annum
compound interest was payable on the outstanding amount. Since plaintiffs failed to pay the entire
amount as per award of Mediator, Shri Thapar, hence, plaintiffs are not entitled for equitable relief
of specific performance.

20. In the additional pleas it is said that suit is barred by limitation; plaintiffs have not come
with clean hands, hence are not entitled for discretionary relief of specific performance.

21. There are three replications Dt. 16.07.1996, 26.03.2002 and 29.10.2002 and one additional
written statement dated 17.02.1999 which may be referred to as and when the occasion would arise.

Suit - 2

22. Suit-2 (O.S. No. 1300 of 1994) was instituted in the Court of Civil Judge, Kanpur Nagar
by Amar Nath Kapoor, his wife Indrani Kapoor and son Om Nath Kapoor impleading five
defendants namely Sri Krishna Gopal Kapoor , his wife Smt. Usha Rani Kapoor and three sons ―
Praveen Kapoor, Naveen Kapoor and Sharad Kapoor. The relief sought is delivery of possession of
southern side of disputed premises stating that plaintiffs have a right of resumption of their
enjoyment and possession over disputed property and therefore by granting a mandatory injunction,
possession of half of share of southern side of disputed property be directed to be handed over to
plaintiffs. They also claimed pendente lite and mesne profits at the rate of Rs.1100/- per day.

23. Plaint case in suit-2 is that plaintiff-1 as Karta and manager of his branch and late Sidha
Gopal Kapoor as Karta and manager of his branch, jointly purchased disputed premises that's
Bungalow No. 7/24, Tilak Nagar, Kanpur and started living therein along with their respective
5 All. Amar Nath Kapoor & Ors. Vs Krishna Gopal Kapoor & Ors.

165
branches. Both the branches also had joint business. Sri Sidha Gopal Kapoor died on 07.07.1983.
Defendants - 1, 3, 4 and 5 are lineal descendants of late Sidha Gopal Kapoor. They succeeded and
inherited all the rights and interest of late Sidha Gopal Kapoor, after his death, on 07.07.1985.
Since defendants failed to comply with the directions contained in award dated 27.05.1979 given
by Mediator, Shri M.M. Thapar, regarding payment of balance sale consideration, and delivery of
possession of disputed house was made by plaintiffs to defendant-1, hence they claimed resumption
of possession of disputed house.

24. Trial Court consolidated both the suits. However, issues were framed separately in both
the suits as under :-

Suit-1 (O.S. No.714/94)

1. क्या वादी भवन सं० 7/24 तिलक नगर कानपुर के आधे भाग का तवकय पत्र प्रतिवादी से तनष्पातदि कराने का अतधकारी है ?

Whether the plaintiffs are entitled to get the sale deed executed by the defendants in
respect of their half share in premises No. 7/24, Tilak Nagar, Kanpur?

2. क्या वादी अनुबन्ध की शिों का अनुपालन कराने हेिु हमेशा ित्पर रहा है?

Whether the plaintiffs all along remained ready and willing to act according to the terms
and conditions of the agreement?

3. क्या प्रतिवादी कतिि बकाया धनरातश पर चकवृति ब्याज पाने का अतधकारी है ?

Whether the defendants are entitled to compound interest on the alleged balance
amount?

4. क्या दावा काल बातधि है ?

Whether the suit is barred by time?

5. क्या वाद का मूलयांकन सही नहीं तकया गया है ििा प्रदत्त न्याय शुलक अपयााप्त है ?

Whether the suit is not properly valued and the Court fee paid is insufficient?

6. क्या वादी तकसी अन्य उपचार को पाने का अतधकारी है ?

Whether the plaintiffs are entitled for any other relief?

7. क्या श्री एम.एम. िापर का तनर्ाय प्रभावशाली नहीं है, जैसा तक प्रतिवादी पत्र की धारा 35अ व 35ब में कहा गया है ?
166 INDIAN LAW REPORTS ALLAHABAD SERIES

Whether the award of Shri M.M. Thapar is ineffective as alleged in Para 35A and 35B of
the written statement?

8. क्या श्री एम.एम. िापर का तनर्ाय, पंच तनर्ाय नहीं है? यतद हों िो उसका प्रभाव ?

Whether the award of Shri M.M. Thapar is not an arbitration award, if yes, then its
effect?

9. क्या वादीका वाद अतिररक्त अतभवचनों के पैरा 35सी में वतर्ाि िथ्यों के आधार पर पोषर्ीय नहीं है?

Whether the suit is not maintainable as alleged in para 35C of the written statement.?

 (English Translation by Court)

Suit-2 (O.S. No.1300/94)

1. क्या प्रस्िुि वाद सी.पी.सी. की धारा 10 के अन्िगाि स्ितगि होने योग्य हैं ?

Whether the suit is liable to be stayed under Section 10 CPC as alleged in para 21 of the
written statement?

2 क्या वाद मूलयांकन गलि तकया गया है ििा प्रदत्त न्याय शुलक अपयााप्त है ?

Whether the suit is undervalued and the court fee paid is insufficient?

3. क्या वाद तमयाद से वातधि है?

Whether the suit is barred by limitation?

4. क्या प्रतिवादीगर् मकान नं0 7/24 में वादी के 1/2 तहस्से के अनुज्ञतप्तधारी िे, यतद हााँ िो क्या वह अनुज्ञतप्त वादी ने तनरस्ि कर तदया
?

Whether the defendants were the Vicensee of plaintiffs' half share in premises no. 7/24,
Tilak Nagar, Kanpur? If so whether the license had been revoked by the plaintiffs?

5. क्या प्रतिवादीगर् तनधााररि समय के अन्दर सम्पूर्ा तवक्रय प्रतिफल अदा करने में असफल रहें ?

Whether the defendants have failed to pay the entire sale consideration within the
stipulated time. If so it's effect?

6. क्या वादीगर् तववातदि सम्पतत्त में पुनः अपना कब्जा व उपयोग वापस प्राप्त करने के अतधकारी है ?
5 All. Amar Nath Kapoor & Ors. Vs Krishna Gopal Kapoor & Ors.

167

Whether the plaintiffs are entitled to resume enjoyment in upon and over the disputed
premises?

7. वादीगर् तकस उपशम के अतधकारी है ?

To what relief, if any, the plaintiffs are entitled?

8. क्या प्रतिवादीगर् प्रतिवाद पत्र के पैरा 6 में वतर्ाि आधारों पर तववातदि मकान के तहस्से पर शमसः अनुपालन के कब्जे में है?

Whether the defendants are in possession of the portion of the disputed premises in part
performance as alleged in para 6 of the written statement? (English Translation by Court)

25. Trial Court considered issues of Suit-1 first. Issues -1 and 2 were answered in favour of
plaintiffs Krishna Gopal Kapoor and others. Issue-3 was answered holding that plaintiffs shall be
liable to pay 10 per cent annual interest on the remaining amount of consideration for the purposes
of getting sale deed executed. Issue-4 relating to limitation was answered in negative. Issues - 7 and
8 were also answered in negative holding, since mediation and award given by M.M. Thapar is
admitted to both the parties, therefore, it is effective and operative. Issue-9 was answered in
negative holding that the suit is maintainable.

26. Thereafter, issues of Suit-2 were taken. Issue-1 was answered in negative holding that both
suits can proceed together. Issue-3 relating to limitation was answered in negative. Issue-4 was also
answered in negative holding that both parties were co-owner and in joint possession of disputed
property. Issue-5 was answered holding that Mediator's award has partly been executed and a small
sum of Rs.1 Lakh and odd was still payable showing that parties have partly discharged their
obligations under award. Issue-6 was answered against plaintiff holding that against total sale
consideration of Rs.4,16,000/-, he has already received Rs.3,24,875/- and thereafter, handed over
possession to defendants. Issue-8 was answered holding that plaintiffs are not in possession and
defendants are in possession of the disputed property.

27. Consequently, Suit-1 that is Original Suit No. 714 of 1994 was decreed and Suit-2 that is
Original Suit No. 1300 of 1994 was dismissed.

28. Defendants in Suit-1 and plaintiffs in Suit-2 are common and both these appeals have been
filed at their instance.

29. Shri Ashish Kumar Singh, Advocate, has advanced submissions on behalf of appellants
and Sri K.M. Asthana has made submissions on behalf of respondents. Both have also filed written
submissions which have been taken on record.

30. It is contended that a non-testamentary document i.e. award Dt. 27.05.1979 is not
enforcible and therefore, suit for specific performance was/is not maintainable. Award was
168 INDIAN LAW REPORTS ALLAHABAD SERIES
compulsorily registrable. Since it was not registered, hence not admissible in evidence and could
not have been enforced at all. Trial Court has erred in law in holding that the alleged award is a
settlement and therefore, does not require registration. Trial Court also erred in law in holding that
award dated 27.05.1979, a non-testamentary document, was an agreement. It is then contended that
respondents were not ready and willing to execute sale deed since amount directed to be paid by
Mediator was not paid by due date. Delay of more than 12 years in tendering last instalment should
have been construed as if respondents were not willing and ready to get sale deed executed. Since
property had been passed on to respondents, Trial Court should have directed for resumption of
possession to appellants and by not doing so, had erred in law in dismissing suit-2 that is Original
Suit No. 1300 of 1994.

31. Shri K.M. Asthana, learned counsel appearing for respondents, on the contrary, argued that
it was a case where facts were basically admitted. Alleged award was also an admitted document to
both the parties. Since it is a family settlement/agreement between the parties of a special character,
the document was also admitted, partly executed and appellants also relied on said document to
claim resumption stating that conditions set out in the said document with regard to payment of
balance consideration along with interest was flouted, hence it is not open to appellants to
challenge that said document/award as inadmissible in evidence.

32. Rival submissions, advanced by both parties have given rise to following points for
determination which need adjudication for deciding these appeals:

1. What is the nature of document/award dated 27.05.1979 and whether it was admissible
in evidence in any manner or not at all?

2. Whether non-testamentary document/award dated 27.05.1979 was necessarily
registrable and if so what is the effect of its non registration?

3. Whether suit for specific performance of non-testamentary document/award dated
27.05.1979 was not maintainable, since the document was not registered?

4. Whether respondents were ready and willing to pay entire consideration and get the
sale deed executed justifying a decree of specific performance by Court below?

5. Whether, even otherwise, suit of respondents for a direction for execution of sale deed
could have been decreed by Court below or it has erred in law in decreeing Suit-1 and dismissing
Suit-2?

6. Whether Trial Court is justified in directing respondents to pay 10% simple interest on
unpaid amount so as to oblige appellants to execute sale deed of property in dispute?
5 All. Amar Nath Kapoor & Ors. Vs Krishna Gopal Kapoor & Ors.

169

33. We propose to answer issues - 1 to 5 together since they are interconnected. It would be
appropriate first to cull out certain admitted facts since both the parties have filed their separate
suits which have some common but admitted facts. These common admitted facts are:-

(a) House in dispute that's premises No. 7/24, Tilak Nagar, Kanpur was jointly purchased
vide sale deed dated 26.08.1946 by fathers of plaintiffs and defendants i.e. Amar Nath Kapoor and
Siddha Gopal Kapoor.

(b) At that time they were having an HUF wherein Amar Nath Kapoor was Karta and
funds for purchase of the house were made available from HUF funds.

(c) Both and their heirs had possession and ownership of the said house having equal
shares therein. (as a matter of fact, both occupied separate part of house for residence purpose but
in law their ownership and possession was joint).

(d) With regard to division of property there was a dispute between the parties. For
resolution thereof, they (i.e. Siddha Gopal Kapoor and Amar Nath Kapoor) approached Shri M.M.
Thapar to function as a Mediator, being common friend of family, and settle the dispute.

(e) Terms and conditions of settlement arrived at before mediator were noted in the
document dated 27th of May, 1979.

(f) Property was valued by Mediator worth Rs.8.32 lacs, half whereof was worked out to
Rs.4.16 lacs.

(g) Siddha Gopal Kapoor was supposed to pay Rs.4.16 lacs to Amar Nath Kapoor,
whereupon Amar Nath Kapoor was to hand over keys and vacant possession of disputed house,
which was in his and his family's possession.

(h) Since Siddha Gopal had some difficulty in making payment in one stroke hence
Mediator provided mode of payment as under:-

(i) Rs. 1 lac by 15.02.1979;

(ii) Rs. 1 lac by adjustment in account of Amar Nath Kapoor in the Firm of his choice
where both the parties were partner, by 15.06.1979;

(iii) On the installments paid, interest at 15% per annum payable up to the date of
payment;

(iv) Rs. 1.08 lac by 15.06.1980 together with interest at the rate of 15% per annum from
16th of June, 1979 to 15th of June, 1980;
170 INDIAN LAW REPORTS ALLAHABAD SERIES

(v) Rs. 1.08 lac by 15th of June, 1981 together with interest at the rate of 15% per annum
(payable annually) from 15th of June, 1979 to 15th June, 1981. If the amount is paid earlier,
interest was payable only till payment;

(i) First three instalments of Rs. 1 lac, Rs. 1 lac and Rs. 1.08 lac along with interest were
actually paid as per terms and conditions contained in the document dated 27.05.1979 prepapred by
Mediator.

(j) Amar Nath Kapoor after having received first two instalments of Rs. 1 lac each i.e. Rs.
2 lacs, and in full confidence and acceptance of settlement, handed over vacant possession of
disputed house (the portion where he and his family was residing) to respondents on 15th June,
1979.

(k) It also appears that for execution of sale deed permission from Ceiling Authority was
necessary, for which Amar Nath Kapoor submitted application on 21st December, 1981, but what
happened thereto is not clear. However, another application seeking permission of Ceiling
Authority was filed on 7th of January, 1984 and permission was granted on 30th of March, 1988.

(l) He also applied to Income-tax Department for grant of certificate under Section 230-A
(1) of the Act, 1961, which was granted on 11th February, 1981."

34. Case of appellants is that since fourth instalment was not paid in time along with interest
as directed by Mediator vide document/ award dated 27th of May, 1979, respondents were not
entitled to file suit for specific performance against appellants and on the contrary, appellants are
entitled for resumption of premises, vacant possession whereof was handed over to the respondents.

35. Parties are ad idem in respect of co-ownership of house in dispute, earlier joint possession,
later on transfer of possession by appellant to respondents and also a settlement arrived at between
parties which was substantially adhered to and acted upon inasmuch as out of four installments,
three were paid by respondents; and, appellants after receiving first two installments handed over
vacant possession of their share in disputed house to respondents.

36. Learned counsel for appellants has argued that document dated 27.05.1979 prepared by
Mediator is an award and has also been named and titled by parties as such, therefore, it was
compulsorily registrable and without being registered Court below could not have admitted it in
evidence.

37. Learned counsel for respondents, on the contrary, sought to argue that it is a peculiar case
where terms and conditions of settlement are not only admitted to parties but the same have been
substantially adhered to. In fact plaintiffs in Suit-1, have relied on the said document in support of
their prayer for execution of sale deed. Plaintiffs-appellants in Suit-2 are also relying on same
document for the purpose of seeking a decree of resumption of possession in disputed house to the
extent of their share which they have handed over to respondents.
5 All. Amar Nath Kapoor & Ors. Vs Krishna Gopal Kapoor & Ors.

171

38. It is in these circumstances what is needed is to ascertain the true nature of document dated
27.05.1979.

39. We have no manner of doubt that title given by author or the manner in which parties have
addressed a document, would not govern its nature but it is to be considered and determined from
contents thereof, to arrive at a conclusion as to what is the nature of a document. The parties
constituted HUF and have continued to run the same without disclosing as to when initial HUF
ceased and new HUF was created.

40. HUF between the parties as long back as 1946 when house in dispute was purchased is
admitted. It has not come on record as to when the aforesaid HUF ceased or new or different HUF
came into existence. Even when dispute was required to be resolved with mediation of Mr. M.M.
Thapar, it does not appear that there was cessation of already continuing HUF. Karta of HUF may
change but HUF itself came to an end at any point of time even till 1979, is not a fact pleaded by
either party, therefore, there is no reason to hold that HUF between the parties ceased after 1946 at
some point of time.

41. In Hindu Law, concept of joint family or HUF has been given great respect and honour. In
India and particularly among Hindus, the family bonds are not only very strong but they have given
right to a society who believe in a joint family going to the extent of even the concept of village
community.

42. In the concept of property, there have been three layers, i.e., Patriarchal Family, Joint
Family and Village Community. The patriarchal family is headed by father and consists of his
offsprings. Joint family may include within itself members, related to each other, though not having
common ancestors and goes beyond family flowing from father himself.

43. It is said that unlike England, where the concept of ownership, as a rule, is single,
independent and unrestricted, and it may be joint, but the presumption is to the contrary. It may be
restricted but only in special instances and under special provisions. The situation in India is totally
different. Here joint ownership is normally the rule and may be presumed to succeed until contrary
is proved. If an individual holds property in severalty, in the next generation, it will relapse into a
stand of joint-tenancy. A Hindu may start with nothing and make a self acquired fortune by dint of
his own labour, capacity and merits and he is the absolute owner of estate but in a couple of
generations his offspring would ramify in a joint family, like a banian tree which also stands as a
single shoot. If the property is free from hands of its acquirer, it will become fettered in the hands
of his heirs.

44. The "patriarchal family" may be defined as a group of natural or adoptive descendants,
held together by subjection to the eldest living ascendant, father, grand-father, great-grandfather.
Whatever be a formal prescription of law, the Head of such a group is always in practice, despotic;
and he is the object of respect, if not always of affection, which is probably seated deeper than any
positive institution. Manu says, "three persons, a wife, a son and a slave, are declared by law to
172 INDIAN LAW REPORTS ALLAHABAD SERIES
have in general no wealth exclusively their own; the wealth which they may earn is regularly
acquired for the man to whom they belong." Narada says, "he is of age and independent, in case
his parents be dead; during their lifetime he is dependent, even though he be grown old."

45. The "joint family" is normally a transition form from "patriarchal family" at the death of
common ancestors or Head of house. If the family chose to continue united, the eldest son would be
the natural head. The former one is head of family by natural authority, the later other can only be
so by a delegated authority. He is primus but inter pares.

46. An undivided Hindu family thus is ordinarily joint not only in estate but in food and
worship. The presumption, therefore, is that members of a Hindu family are living in a state of
union unless contrary is established. This presumption however varies inasmuch as it is stronger in
case of real brothers than in case of cousins and farther one go, from the founder of family, the
presumption becomes weaker and weaker.

47. However, there is no presumption that a family, because it is joint, possesses joint
property. Under Mitakshara Law, possession of property is not necessary requisite for constitution
of a joint family, though where persons live together, joint in food and worship, it is difficult to
conceive of their possessing no property whatever, such as ordinary household articles which they
would enjoy in common.

48. The intention to break joint family by effecting partition in respect of joint family property
has always been considered with great respect, where amicably and peacefully, intacting love and
affection, the members of joint family have settled their rights mutually. It can be given effect,
orally, as also in writing.

49. In Appovier Vs. Ramasubba Aiyan (1866) 11 MIA 75, Lord Westbury took a view that
partition covers both, a division of right and a division of property. This is also reiterated in Girja
Bai Vs. Sadashiv Dhundiraj (1916) 43 IA 151. When members of undivided family agreed
amongst themselves either with respect to a particular property or with reference to entire joint
estate that it shall thenceforth be the subject of ownership in certain defined shares, then the
character of undivided property and joint enjoyment is taken away from the subject matter so
agreed to be dealt with; and in the estate, each member has thenceforth a definite and certain share
which he may claim the right to receive and to enjoy in severalty although the property itself has
not been actually severed and divided.

50. At this stage, we may also have a look on the concept of partition by agreement between
the family or family arrangement.

51. In Raghubir Vs. Moti (1913) 35 All 41 PC and Anurago Kuer Vs. Darshan Raut, AIR
1938 PC 65, partition by agreement was explained by observing, that, if there be a conversion of
joint-tenancy of an undivided family into a tenancy in common of the members of that undivided
family, the undivided family becomes a divided family with reference to the property, i.e., the
5 All. Amar Nath Kapoor & Ors. Vs Krishna Gopal Kapoor & Ors.

173
subject to agreement and that is a separation in interest and in right, although not immediately
followed by a de facto actual division of subject matter. This may, at any time, be claimed by virtue
of separate right. This was also held so in Amrit Rao Vs. Mukundrao (1919) 15 Nag LR 165 PC.

52. If we look into the facts of present case in the light of Privy Council's decision in
Raghubir Vs. Moti (supra); Anurago Kuer Vs. Darshan Raut (supra); and, Amrit Rao Vs.
Mukundrao (supra), we find that though there was no formal partition between appellants and
respondents but admittedly Sidha Gopal Kapoor and his branch were occupying Northern portion
of premises while Amarnath Kapoor and his branch were occupying Southern portion of house in
dispute. A de facto actual division existed with an oral agreement between parties since long.
Appellants also handed over Southern portion of house which they were occupying to respondents.
This fact also supports an inference that house in question by oral agreement or settlement between
parties was already divided. Parties, therefore, had a practice of having oral family arrangement or
agreement or settlement so as to avoid Court cases among them. It was an amicable and happily
accepted family arrangement between them.

53. A "family arrangement" also stand and enjoy a respectable and recognised status. It is an
agreement arrived by members of family, either by compromise of doubtful or disputed rights, or
by preserving a family property or by avoiding litigation for the peace and security of family or
saving its honour. A severance of joint status may result, not only from an agreement between the
parties but from any act or transaction which has the effect of defining their shares in the estate
though it may not partition the estate. Among all the coparceners, now it has been held, that, an
agreement between all of them is not essential so as to result in disruption of joint status though it is
required for the actual division and distribution of property, held jointly.