# 570 S. SHANMUGAM PILLAI AND ORS v. K. SHANMUGAM PILLAI AND ORS

- **Citation:** [1973] 1 S.C.R. 570
- **Court:** Supreme Court of India
- **Decided:** 1972-05-04
- **Case number:** Civil Appeal No. 693 of 1967
- **Bench:** K. S. Hegde, A. N. Grover
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/570-s-shanmugam-pillai-and-ors-v-k-shanmugam-pillai-and-ors-5693
- **Pages:** 14

## Headnote

Hindu Law;___Widow's
estate-Family
arrangement-,lUenation ,by
widow-When reversioners precluded from challenging alienation-Charitable Trust-Tests for determining whether dedication coniplete or partial:
The last male-h6lder endowed some of his properties for a charity the
management of which was hereditary.
His widows alienated the properties inherited by them including the properties endowed. The appellants,
as reversioners, filed a suit for 'setting aside the alienations and claiming
the enoowed properties as 'huqdars'. The High Court! dismissed the suit.
HEID, dismissing the appeal, that the appellants were precluded from
questioning the alienations of the properties.
(i) Equitable principles such as estoppel, election and family settlement are not mere technical rules of evidence. They have an important
pμrpose to serve in the administration of justice and their scope should
not be narrowed down.
An alienation by a Hindu widow is voidable and not void.
A reversioner to the estate of a deceased separated Hindu, who has expressly
assented to an alienation of property forming part of the estate, made by
the widow in possession, cannot on succeeding to the estate after the
widow's death repudiate his action and sue for possession of the property
alienated by the widow. If the presumpfive reversioner is a minor at the
time he has taken a benefit under the transaction, the principle of estoppel
will be controlled by' another rule governing the law of minors. A minor
cannot be compelled to take the benefit of a transaction which will have
the effect of depriving him of his legal rights when the succession opens.
But a minor can, after attaining majority, ratify the transaction entered
into on his behalf by his guardian. If he so ratifies the transaction entered
into by his guardian and accepts the benefit thereunder, there cannot be
any difference in the application of
the principle of election. If the
original transaction conferring. the benefit was in favour o'f.the minor his
enjoyment of the benefit after attaining the ir.ajority may in itself be ·a
sufficient act of ratificafion.
f,578 D-G]
Krishna Beharilal v. Guiab Chand, :L1971] 1 S.C.C. 837, T. V. R.
Subbu Chetty's Family Charities v. M. Raghava Mudaliar and Ors., [,1961)
3 S.C.R. 624, Fateh Singh v. Thakur Rukmini Pamanji Maharan, I.L.R.
XIV All. 339 Jagarlpudi Seetharamayya ''- Sarva Chandra/ya (1954] 2
M.L. J. 162, Maklneni Vinzyya, v. Madamanchi Sapayya, [1964] 1 M.L.J.
276, and Ramgouda Annagouda v. Bhausaheb, 54 I.A. 396, referred to.
Further, if a person having full knowledge of his right as a possible
reversioner enters into a transaction which settles his claim as well as the
claim of the opponents at the relevant time he cannot be permitted to go
hack on that agreement when reversion actually falls open. Although conflict of legal claims in present or in future is generally a condition for the
validity of family arrangements it is not necessarily so.
Even bona fide
disputes present or possible, which may not involve legal claims would
be suffi~ient. Members of a Joint Hindu family may, to maintain peace
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s. s. PILLAI v. K. s. PILLAI (Hegde, J.)
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or to bring about harmony in the family, enter into such a family arralfgement. If such an agreement is e'1tered into bona fide and the terms thereto
are fair in the circumstances of a particular case, the courts would more
readily give assent tc such an agreement than to avoi? it. .[580 D, 581Al
Sallu Madho Das v. Pandit Mukand Ram, :[,1955] 2 S.C.R. 22, Maturi
Pul/aiah v. Maturi Narasimhan, A.I.R. 1966 S.C. 1836 and
Krishna
Behari/ll/ v. Guiab Chand, [1971] 1 S.C.C. 837, referred to.
(ii) A dedication of a property to religious or charitable purposes may
be either complete or partial. If the dedication is complete a trust in
favour of a charity is created.
Jlf
the ded,cation is partial,
a trust in
favour of a cbarity is not created but a charge in
favour of charity is
attached to, and

## Text

.570
S. SHANMUGAM PILLAI AND ORS.
v.
K. SHANMUGAM PILLAI AND ORS.
May 4, 1972
[K. S. HEGDE AND A. N. GROVER, JJ.J
Hindu Law;___Widow's
estate-Family
arrangement-,lUenation ,by
widow-When reversioners precluded from challenging alienation-Charitable Trust-Tests for determining whether dedication coniplete or partial:
The last male-h6lder endowed some of his properties for a charity the
management of which was hereditary.
His widows alienated the properties inherited by them including the properties endowed. The appellants,
as reversioners, filed a suit for 'setting aside the alienations and claiming
the enoowed properties as 'huqdars'. The High Court! dismissed the suit.
HEID, dismissing the appeal, that the appellants were precluded from
questioning the alienations of the properties.
(i) Equitable principles such as estoppel, election and family settlement are not mere technical rules of evidence. They have an important
pμrpose to serve in the administration of justice and their scope should
not be narrowed down.
An alienation by a Hindu widow is voidable and not void.
A reversioner to the estate of a deceased separated Hindu, who has expressly
assented to an alienation of property forming part of the estate, made by
the widow in possession, cannot on succeeding to the estate after the
widow's death repudiate his action and sue for possession of the property
alienated by the widow. If the presumpfive reversioner is a minor at the
time he has taken a benefit under the transaction, the principle of estoppel
will be controlled by' another rule governing the law of minors. A minor
cannot be compelled to take the benefit of a transaction which will have
the effect of depriving him of his legal rights when the succession opens.
But a minor can, after attaining majority, ratify the transaction entered
into on his behalf by his guardian. If he so ratifies the transaction entered
into by his guardian and accepts the benefit thereunder, there cannot be
any difference in the application of
the principle of election. If the
original transaction conferring. the benefit was in favour o'f.the minor his
enjoyment of the benefit after attaining the ir.ajority may in itself be ·a
sufficient act of ratificafion.
f,578 D-G]
Krishna Beharilal v. Guiab Chand, :L1971] 1 S.C.C. 837, T. V. R.
Subbu Chetty's Family Charities v. M. Raghava Mudaliar and Ors., [,1961)
3 S.C.R. 624, Fateh Singh v. Thakur Rukmini Pamanji Maharan, I.L.R.
XIV All. 339 Jagarlpudi Seetharamayya ''- Sarva Chandra/ya (1954] 2
M.L. J. 162, Maklneni Vinzyya, v. Madamanchi Sapayya, [1964] 1 M.L.J.
276, and Ramgouda Annagouda v. Bhausaheb, 54 I.A. 396, referred to.
Further, if a person having full knowledge of his right as a possible
reversioner enters into a transaction which settles his claim as well as the
claim of the opponents at the relevant time he cannot be permitted to go
hack on that agreement when reversion actually falls open. Although conflict of legal claims in present or in future is generally a condition for the
validity of family arrangements it is not necessarily so.
Even bona fide
disputes present or possible, which may not involve legal claims would
be suffi~ient. Members of a Joint Hindu family may, to maintain peace
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or to bring about harmony in the family, enter into such a family arralfgement. If such an agreement is e'1tered into bona fide and the terms thereto
are fair in the circumstances of a particular case, the courts would more
readily give assent tc such an agreement than to avoi? it. .[580 D, 581Al
Sallu Madho Das v. Pandit Mukand Ram, :[,1955] 2 S.C.R. 22, Maturi
Pul/aiah v. Maturi Narasimhan, A.I.R. 1966 S.C. 1836 and
Krishna
Behari/ll/ v. Guiab Chand, [1971] 1 S.C.C. 837, referred to.
(ii) A dedication of a property to religious or charitable purposes may
be either complete or partial. If the dedication is complete a trust in
favour of a charity is created.
Jlf
the ded,cation is partial,
a trust in
favour of a cbarity is not created but a charge in
favour of charity is
attached to, and follows the property which retains its original private
and secular character.
Whether or not a dedicat:on is complete would
naturally be a quesfon of fact to be determined in each case on the terms
of the relevant document if the dedication in question was made under a
document. If the income of the property is substantially intended to be
used for the purpose of a charity and only an insign;ficant and minor
portion of the income is expected or required to be used and a substantial
or the manager, it may be possible to take the view that dedication
is
complete. If on the other hand, for the maintenance of charity a minor
portion of the income is expected or required to be used and· a substantial
surplus is lefr in the hands of the manager or worshipper for his own
private purposes, it would be difficult to accept the theory of complete
dedication .
. In the present case the appellants failed to establish that the dedication was complete.
The dedication being only partial the properties re·
tained the character of private properties and therefore the widows had a
beneficial interest in those properties., [582 D-Hl
Menakuru Dasaratharmai Reddi v. V. Duddukuru Suhba Rao, A.I.R.
1957 S.C. 797, referred tn.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 693 of
1967.
Appeal from the judAAient and decree dated November 10,
1966 of the. Madras Hi"h Cou\11: in Appeals Nos, 245 and 530
of 1961.
M. C.Chaala and B. R . .Agrawala, for the appellant.
S. T. Desai, K. R. Nagara/a. D. P. Mohanthy and S. Gopa/a·
kishnan, for the respondents Nos. l, 3 and 4.
The Judgment of the Court was delivered by
Hegde, J.-This is a plaintiffs'
appeal by certificate.
The
plaintiffs sued for possession of the properties described in Sch. I
and IV of the plaint as reversioners of one V. Rm. Shanmugam
Pillai who admittedly was the last male holder of those properties
as wel! as several other properties. They also claimed past and
futu~e mesne profits in respect of those properties. Properties
.detailed in Sch. I were said to have been endowed for a charil'J
by name Annadhana Chatram Charity. The plaintiffs claimed
possession of those properties as "Huqdars". They claimed possesion of Sch. IV properties as reversioners.
The trial court
572
SUPREME COURT REPORTS
[1973] 1 S.C.R.
decreed the plaintiffs' claim in part. It gave a decree in favour
A
of the plaintiffs in respect of plaint Sch. I properties but disJltls.,ed
their claim regarding Plaint-Sch. IV properties.; Both the parties
appealed against the judgment and decree of the trial court. The
High CQllrt allowed the appeal of the defendants and dismissed
that of the plaintiffs. In the result the entire suit was dismissed.
In order to examine the various contentions advanced at the
hearing, it is necessary to state in brief various events that took
place prior to the institution of the suit. One Ramalingam Pillai
was the owner of a substantial· part of the suit properties.
I-Jc
had a brother by name Kuppan Pillai. Ramalingam Pill~i's wifr
pre-deceased him. He had no children. Ramalingam Pillai
and
Kuppan Pillai had married sisters.
Ramalingam Pillai
in 1898 but Kuppan Pillai had pre-dece~sed him.
He had.died
in 1894, leaving behind him his two daughters Palani Achi
Ammal and Pichai Anunal. Kuppan Pillai's wife had also predeceased Ramalingam Pillai. Ramalingam Pillai had brought up
hi5 blfother's daughters Palani Achi Aroma! and Pichai Ammal
as his foster· daughters. Before '1lis death, Ramalingam Pillai had
gut married Palani Achi Aroma! to V. Rm. Shanmugham Pillai,
his maternal uncle's son by his first wife. The said Shanmugarn
Pillai was associated with Ramalingam Pillai in his business. On
September 29, 1898 Ramalingam Pillai executed a settlement deed
l Ex. A-2) settling his properties principally on Palani Achi
Ammal, Pichai Ammal and Shanmugam Pillai. Under that deed.
he gave some properties to his deceased wife's sister's son, Subramania Pillai.
Subramania Pillai was the son of Chitravadav,rn1mal, sister of the wives of Rarnalingarn Pillai and Kuppan
Pillai. Under Ex. A-2 Plaint-Sch. I properties except item No. 4.
were set apart for charities which Ramalingam Pillai was carryc
E
in.g on. Under that document Shanmugam Pillai was declared
"Huqdars" of the aforementioned Annadhana charity.
The
Huqdarship was to be hereditary in the family of Shanmugam
Pillai.
Ramalingam died very soon after eA:ecutii;ig E:::. A-2.
After the death of Ramalingam Pillai, Shanmugam Pillai took as
F
his second wife Pichai Aroma!, the sister of his first wi.fe Palani
Aclli Aroma!.
While managing the Annadhana Charities, Shanmugam Pillai acquired item No. 4 of Sch. I. and treated that property as that of the Charity.
Shanmugam Pillai had no issue!.
He had executed a will on December 19, 1926. It was a regi~
tered will. That will be revoked on December 29, 1926. He
G
died on December 31, 1926.
After bis death, his widows put
forward another will said to have been executed by him on
December 30, 1926 under which substantial biequests were made. H
to Shanmugam Pillai know;11 as Vendor Shanmugam Pillai, the
step brother of V. Rm. Shanmugaoi Pillai as well as to his step
sisters Irnlammai and her hasband Subramania Pillai.
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On September 29, 1898, the widows of V. Rm. Shaumuo-am
Pillai and Vendor Shanmugar Pillai, his sister Irulammai andli.cr
husband Subramania Pillai entered into a registered agreement
styled as "agreement of peaceful settlement".
This document is
marlr.cd as Ex. B-2.
To that document Vendor Shanmugam
Pillai's sons, the present plaintiffs 1 and 2 were also parties.
.-\ t
that time, they were minors.
They were represented by their
father Vendor Shanmugam Pillai. Ex. A-2 primarily affinrn; die
alleged will said to have been executed by V. Rm. Shanmugam
Pillai on December 30, 1926. As per the agreement entered intcJ
under Ex. B-2, Vendor Shanmugam Pillai obtained possession of
various items or properties left behind biY V. Rm. ShanmugJm
Pillai. In his turn he admitted that the widows of V. Rm. Shanmugam Pillai were the absolute owners of the properties said tu
have been bequeathed to them under the alleged will dated
December 30, 1926. Ex. B-2 purports to be a family arrang~
mcnt. In that deed Vendor Shanmugam Pillai acknowledged the
right of the widows to manage the charities and pass on that right
to others.
Shortly after the execution of Ex. B-2, the senior widow Palani
Achi Ammal filed a suit for partition of the properties mention~d
in Ex. B-2. That suit was decreed. Thereafter on July 20, 1931.
the senior wic!o.w settled the properties that she got as her share
under the partition decree Ex. B-3 on Kanthimathimatha Pillai.
his wife Pichai Ammal and their minor daughters as per the registered settlement deed Ex. B-3. This Pichai Ammal is the daughicr
of S;.ibramania Pillai son of the original settlor's wife's sister
Chitravadamal. The two widows Palani Achi Ammal and Pichai
Ammal had brought up Pichai Ammal daughter of Subramani:1
Pillai as their foster daughter and had got her married to the
aforesaid Kanthimathinatha Pillai.
The settlement proceeds on
the basis that Palani Achi Ammal is absolutely entitled to the
properties settled. Thereafter the junior widow Picha! Amm:il
settled the properties that she got under the partition de.:ree in
favour of Palani Pillai, the 4th defendant in the suit, as per tl!l'
registered settlement deed Ex. B-4 dated December 20, 19r.
Palani Pillai is the son of Kanthimathinatha Pillai. He is referred
to in the setlement deed as the seci;nd son of the foster daug;Her
of the widows, Picha! Ammal.
After the execution of Ex. B-2, Sankaralingam Pillai, bro<hc:·
0£ Vendor Shanmugam Pillai who was not a party to Ex. B-2
filed a suit for declaration that the alleged will dated December 30.
J 926 is a forged document.
The suit was riccreed.
The trial
court held the will put forward to be a forgery.
Palani Achi
Ammal and Pichai Ammal were def~ndants in that suit. The
defendants appealed against the decision of the trial court. When
614
SUPREME COURT REPORTS
(1973) l S.C.R.
the matter was pending in appeal in the High Court Sankaralingam Pillai died. Thereafter the third plaintiff who was his
adopted son was brought on record as the legal. representative of
Sankaralingam Pillai.
He was represented by his guardian
Meenakshi Ammal. That appeal was dismissed. The High Court
came to the conclusion that on the evidence on record, it was not
satisfied about the genuineness of the will.
The present third
plaintiff became major in 1938.
Even after obtaining a decree
in his favour in the will suit, the third plaintiff entered into an
agreement with the two widows on October 27, 1938 (Ex. B-5).
Under this deed he took substantial pfoperties and acknowledged
the absolute right of the widows as regards the other properties
detailed therein. It may be noted that b'y the time Ex. B 5 came
to be executed alienations in favour of Defendants 1 to 4 had
already taken place.
Under Ex. B-5, the third plaintiff also
acknowledged the right of those defendants who were also parties
to that deed, to the properties settled on them. Further under
that document the third plaintiff acknowledged the right of the two
widows and defendants 1 to 4 to manage the properties set apart
for charities.
We have earlier mentioned that at the time Ex. B-2 was
executed, plaintiffs i to 2 were minors.
As seen earlier, the
father of the plaintiffs had secured for himself and for his sons
several items of properties μnder that agreement. The first plaintiff became ma.ior on January 10, 1931.
Thereafter he, on hb
own behalf and as the guardian of his minor brother joined hi;
aunt, Irulammal in partitioning the properties jointly obtained by
them under Ex. B-2.
Ex. B-10 dated October 11, 1931 is u
settlement deed executed by the first plaintiff for himself and a>
the guardian of his brother, the second plaintiff settling some of
. the properties obtained under Ex. B-2 on their sister. The second
plaintiff after becoming a major' jcined with the first plaintiff in
conveying an item of property secured under Ex. B-2 in favour
of one Sublbiah Konar (Ex. B-11). Palintiffs 1 and 2 effected
various alienations under Ex. B-12, B-15 and B-16 to B-42 of the
pmperties obtained by them under Ex. B-2. All these transactions proceeded on the basis that the arrangement entered into
under B-2 as was valid one. Those tran~actions show that plaintiffs 1 and 2 ratified the arrangement mllde under Ex. B-2. The
third plaintiff in his turn alienated several items of the property
obtained by him under Ex. B-5. On October 16, 1939, he sold
some portions of that property under Ex. B-34 for Rs. 4,000/-.
Again under Ex. B-36, he sold some other items on July 13, 1953
for a sum of Rs. 25,000/-.
He also effected certain exchanges
under Ex. B-34 and B-35.
All these transactions proceeded on
the basis that the arrangement made under Ex. B-5 was a valid
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one. Having set out the course of events, we shall JJOw examine
whether it is open to the plaintiffs to 'challenge the alienations
effected in favour oi D-1 to D-4.
We shall first take up the question whether the alienation of
the Plaint-Sch. IV properties by PalaJJi Achi Ammal and Pichai
Ammal is open to challenge. There is now no dispute that these
two widows had only widows' estate in the properties left by their
husband. The impugned alienations were not effected to meet
any JJeccssity of the estate of the deceased last male holder.
Hence prima facie, the impugned alienations are not binding on
the reversioners. But it is now well settled that an alienaticm by
a Hindu widow is only voidable and not void. The reversioners
may or may not choose to avoid the same,-see Ramgouda Annagouda and ors. v. Bhausaheb and ors.(1)
and T. V. R. Subbu
Chetty'~ Family Charities v. M. Raghava Mudaliar and ors(').
Both the trial court as well as the appellate court have come
to the conclusion that the plaintiffs are not entitled to avoid the
alienations in question either on the ground of estoppet or election.
So far as the third· plaintiff is concerned, he is clearly estopped
from challenging those alienations made. As seen earlier even
after the High Court came to the conclusion that the will put
forward by the widows is not proved to be genuine, he entered
into an agreement with those widows under which he obtained
some properties as absolute owner. In hls turn he acknowledged
the right oi the widows to the remaining properties iJlcluding
those that had been alienated in favour of defendants 1 to 4. As
seen earlier by the time Ex. :S-5. came to be execute\! on October
27, 1938, the alienations in favour of defendants 1 to 4 had taken
place. D-1 to D-4 were parties to Ex.-B-5. It is clear from Ex. B-5
that the, third plaintiff was aware of those alienations. In Ex. B-5,
he accepted the validity of those alienations. In other words with
full knowledge of facts the third plaintiff represented to the
widows a5 well as to defendants 1 to 4-that he accepts the
validity of the alienations in favour of defendants 1 to 4.
By
doing so he secured immediate advantage of getting possession of
fairly extensive properties which he would not have otherwise got
till the death of the two widows.
Hence he is clearly estopoed
from contesting the validity of the alienations in favour of defendants 1 to 4.
The claim of the third plaintiff may be examined from another
angle.
It is seen from the record that within about a month of
the decision of the High Court in the litigation relating to the
will, the guardian of the third plaintiff entered into a compromise
(I) 54 I.A. 396.
(2) [1961] 3 S.C.R. 624.
576
SUPREME COURT REPORTS
[1973] I S.C.i;.
with the two widows possibly with a view to avoid further litig~
tion. Evidenrly in pursuance of that agreement Ex. B-5 cam~ to
be executed after the third plaintiff became a major.
Hem:e
Ex. B-5 can be considered as a family settlement. That is not ail.
As seen earlier after. he Lecame a major, on the strength ot
Ex. B-5, he alienated several ite1ns o~-property obtained by him
under that document. We shall presently examine the relevant
decisiolli but at present it is sufficient to say that the third plaintiff is precluded from challenging the validity of the alienation
made in favour of defendants l to 4.
Let us now examine whether plaintiffs 1 and 2 can challenge
tho alienations made in favour of defendants 1 to 4.
The trial
court ha' come to the conclusion that they are estopped from
challenging the validity of the alienations in favour of defendant'
1 to 4 in respect of the properties mentioned in Plaint-Sch. IV.
The High Court has affirmed that decision on the ground that
after they became majors they had elected to stand by Ex. B-2.
Hence they cannot challenge the alienations in question.
\\'. c
have earlier seen that very soon after the death of V. Rm. Shanmugam Pillai, the father of the plaintiffs, Vendor Shanmug1m
Pillai on his own behalf and as the guardian of plaintiffs J and
2 entered into an agreement with the wido\''S of v: Rm. Shanmumugam Pillai (Ex. B-2).
Under that agreement he secured
immediate possession oJ' considerable properties for himself and
his minor sons, plaintiffs 1 and 2. Under Ex. B-2, Vendor ."hanmugam Pillai by implication, admitted the genuineness of the
alleged wi11 of V. Rm. Shanmugam Pillai which was ultimately
found to be not genuine by the High Court as seen earlier. But
for the agreement under Ex. B-2 Vendor Shannrngam Pillai would
not have got any portion of the properties left by V. Rm. Shanmugam Pillai during the life time of the widows of V. Rm. Shanmugam Pillai. It was said that at the time when Ex. B-2 was entered
into V. Rrn.Shanmugam Pillai might not have been aware of tlte
fact that the will put forward by the widows was not a genuine
one. Our attention was iavited to the finding of the trial court that
Ex. B-2, was a part of a scheme on the part of the widows of V.
Rm. Shanmugarn Pillai and Vendor Shanmugam Pillai. to defeat
the claims of Sankarlingam Pillai, the father of the third plaintiff.
It is true that the plaintiffs who were minors on the dale of Ex.
B-2 would not have been bound by the agreement contained th~rdn
if they had not chosen tG stand by it. It was open to them on
attaining majority either to sL1nd by the agreement or renounce
the same.
By the time they attained mJjority, the will case had
been decided by the High Court. It is reasonable to assume that
they were aware ot the fact that the High Court had come to the
conclmion that the will put forward was not genuine. Therefore
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it y;as open to them to denounce the agreement under Ex. B-2.
But they did not choose to do so.
On the other hand they not
only continued to enjoy the properties that they and their fath~r
got under Ex. B-2 but also went on allienating various items ,,r
those properties, see Ex. B-9, B-10, B-11, B-12, B-15 and B-16
to B-4l. From these transactions, it is clear that plaintiff> 1 and
2 ratified the agreement entered into under Ex. B-2.
It i» alsu
reasonable to hold that after becoming majors instead of r<!llouncing the benefit obtained UJJder Ex. B-2, they elected to stand by
th11t agreement and retained the benefit obtained under that document.
Ex. B-2 and B-5 read together may also be considered !Ii con-
>tituting a family arrangement. The plaintiffs and the widoW» 'of
V. Rm. Shanmugam Pillai are near relations. There were sever~!
diiputes between the parties.
The parties must have thought it
wiie that instead of spending their money and energy in courts, ti'
settle their disputes amicably.
The father of plaintiffs 1 and ~
and later on the plaintiffs were only presumptive reversionen, ,,,
also was the third plaintiff. None of them had any vested right
in the suit properties till the death of the widows. Hence first the
father of plaintiffs 1 and 2 and later on the plaintiffs must have
thought that a biird in hand is worth more than two in the bush.
If in the ;~terest of the family properties or. family pf>ace the cloie
relations had settled their disputes amicably, this court will be
reluctant to disturb the same. The courts generally Jean in fa'Jour
oi family arrangements.
Equitable principles such as estoppel, election, family settlement etc. are not mere technical rules of evidence. They have an
important purpose to serve in the administration of justice. The
ultimate aim of the Jaw is to secure justice. In recent tiln~ '·'
order to render justice between the parties, courts have been
liberally relying on those principles. We would hesitate to narrow
down their scope.
Now Jet us proceed to cc,1sider the decided cases re:td to l1'
at the hearing ,of the appeal.
In Fat~h Singh v. Thakur Rukmini Ramanji Maharaj( 1), a
Full Bench of the Allahabad High Court held that a reversion"r
to the estate of ~ de~eased separated Hindu, who has exprmly
assented to an ahenalion of pro~rty forming p~;rt of the estate.
made by the widow in posses>ion, canno\ on succeeding to the
Oitate after the widow's death repudimc his action <ind ;u0 for
p06Session of the property alienated by the widow.
Th0 ratio of
that decision clearly applies to the claim made by the th.;rd olaintiff in this case.
·
·
(I) !LR XLV All 339.
578
SUPREME COURT REPORTS
(1973] l S.C.R.
In Jagarlapudi Seetharamayya v. Sarva Chandrayya and
A
ors., ( 1) Andhra Pradesh High Court was called upon to consider
a claim somewhat similar to that made by plaintiffs 1 and 2.
Therein the court ruied that during the life time of the widow a
presumptive reversioner has only a spec successionis in the estate
of the iast mate hower and he cannot,
therefore, purport to
convey the said interest or otherwise deal with it.
His rights
B
in the property wJuld be crystallised only after succession opens.
But after succession opens or even during the widow's life time
he may elect to stand by the tra~action ~ntered into b\Y the widow
or otherwise ratify it, in whlch case v·wcrula be precluded frOJ}l~
guestioning the transaction.
Prod!eding . .further the court•eriumerated the three classes of estoppels that may arise for considerac
tion in dealing with reversioner's challenge to a widow's alienation.
They are : (1) that which is embodied in s. 115 of the
Evidence Act, (2) election in the strict sense of the term whereby
the person electing takes a benefit under the transaction and ( 3)
ratification, i.e., agreeing to abide by the transaction. A presumptive reversioner coming under any one of the aforesaid categories
is precluded from questioning the transaction, when succession
D
opens and when he becomes the actual reversioner.
But if the
presumptive reversioner is a minor at the time he has taken a
benefit under the transaction, the principle of estoppel will be co.,-
lrolled by ·another rule governing the law of minors.
A minor
obviously cannot be ron,pelled to take the benefit of a transaction which will have the effect of depriving him of his legal rights
E
when the succession opens. But a minor can certainly after att?.'..1ing majority ratify the transaction entered into on his behalf by
his guardian. If he so ratifies the transaction entered into by his
guardian and accepts the benefit thereunder, there cannot be any
difference in the application of the principle of election. The effect
would be the same. It is as if he was a major at the time the
F
transaction was affected ahd the benefit was conferred or. him.
What he could not do at the time of the transaction must be
deemed to have been done by him by his act of ratification.
It
may be that on attaining majority he has the option to disown the
transaction and disgorge the benefit or to accept it and adopt it
as his own. Whether after attaining majr1rity the quandum minor
accepted the benefit or disowned it, is a question to be· decided or.
G
the facts. of each case.
In the course of the judgment Subha Rao C.J. (as he then
was) dealing with the ·case of persons who were minors at the
time the transaction was entered. into observed :
"The mere act of succession to the father may . not
H
amount to ratification as the son's enjoyment is consistent
(I) [1954] 2, M.L.J. p. 162.
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s. s. PILLAI v. K. s. PILLAI (Hegde, J.)
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with his right of inheritance to the father.
But he can
either expressly or by necessary implication ratify the
transaction entered into by the father. But if the original transaction conferring the benefit was in favour ot
the minor, different considerations would arise. His enjoyment of the benefit after attaining majority may in
itself be. a sufficient act of ratification."
In support of the con(ention that the plaintiffs are not estopped
which expression includes not only the estoppel proper but also
"election'' Mr. M. C. Chagla, learned Counsel for the appellants
relied on the deeision of a Division Bench of the .Madras Hir,h
Court.in Makineni Virayya and ors. v. Madamanchi Bapayya( )'.
On the facts of that case, the learned judge came to the co.nclusion
that the plaintiffs-reversioners in that case were not estopped from
claiming the suit property on the death of the widow. But in the
course of his judgment, after examining several decisions Patanjali Sastri J. (as he then was) speaking for the Court observed :
"These decisions will be found on examination to proceed on the principle that an allienation by a Hindu
widow without justifying necessity is not void but only
voidable at the instance of the reversionary heir who may
either affirm or avoid it, but will bi: precluded from
questioning it if he does something which amounts to an
affirmation of the transaction. Such election to hold the
sale good, as it has sometimes been expr,essed, may, it
has been held, take place even before the death of the.
widow while the reversionary heir was only a presumptive reversioner."
In our opinion this decision instead of helping the plaintiffs
definitely supports the contentions of the defendants.
It was urged on behalf of the plaintiffs that it was not pe1missible for the father of ·the plaintiffs I and 2 as well as the third
plaintiff to transfer their contingent interest as remote reversioners; hence we must hold that the transactions entered into under
Exs. B-2 to B-5 were wholly void. This contention can best be
answered by quoting a passage from the decision cf the Judicial
Committee
in
Ramgouda
Anna1?ouda's
case(2 ).
Therein
repelling a similar contention the Judicial Committee observed :
"It was argued that Annagouda's contingent interest as
a r.emote reversioner could not be validly sold by him,
as it was ~ mere spec succession is, and an agreement to
sell such mterest would also qe void in law. It is not
necessary to consider that question because he did not
0) [1946] I, M.L.J. 276.
(2) 541.A. 396:
580
SUPREME COURT REPOl\TS
[1973] 1 'l.CR.
in fact either sell or agree to sell his reversionary interest.
Jt is settled law that an alienation bv a widow in execs~
of her powers is not altogether void but only voidable
by the reversioners, who may either singly or as a body
be precluded from exercisinll: their right to avoid it
either by express ratification or by acts which treat it as
valid or binding."
It is true that a widow cannot enlarge her own estate by
entering- into a contract. Dut as observed by this Court in Krishna
Beh«rilal v. Guiab Chand( 1):
"It is well settled that a Hindu widow cannot enlarge
her estate l>y entering into· a compromise with third
parties to the prejudice of the ultimate reversioner. But
the same will not be true if the compromise is entered
into with persons who ultimately become the reversioners."
As ob.~erved by this Court in T. V. R. Subbu Chetty's Familv
Charit~s· Case (supra), that if a person having full knowledge
of hii right as a possible reversioner enters into a transaction
which settks his claim as well as the claim of the opponents at
the· relevant time, he cannot be permitted to go back on that
agrocment when reversion actually falls open.
The application of the tests laid down in the above decisions
Jeadll to the firm conclusion that the plaintiffs are precluded from
queitioning th" alienations of the various items of property
covered by Sch. IV of the plaint.
Now turning to the plea of family arrangement, as observctl
by this Court in Sahu Madho Das and ors. v. Pandit Mukand
Ram and another('), the courts lean strongly in favour of family
a~ungeme:1ts that bring about harmony in a family and do justice
to it11 various members and avoid, in anticipation, future disputes
which might ruin them all. As ol$erved in that case the familv
arr~ngement can as a matter or law be inferred from a long course
of dealings between the parties.
In Maturi Pullaiah and anr. v. Maturi l-/arasimhan and or-s. (3 1
thh Court held that although conflict of legal claims in presmti
or in future is generally a condition for tb.e validity of family
'nangements, it is not necessarily so.
Even bona-fide dispute>
prCient or possible, which may not involve legal claims would be
sW!icicnt.
Members of a joint Hindu family may, to maintain
peace or to bring about harmony in the family, enter into such a
<1i (1971] S.C.C. 837.
(JJ [1955] 2, S.C. R. 22,
(2) A.LR. 1966 S.C 1816.
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3. s. PILLAI v. K. s. PILLAI (Hegde, I.)
58]
family arrangement. If such an agreement is entered into bona
:ftde and the terms thereto are fair in the. circumstances of a particular case, the courts would moro readily give assent to such an
agreement th?n to avoid it.
In Krishna Behari/al' s case (supra), this Court observed :
"The dispute between the parties was in respect of a certain property which was originally owned by their
common ancestor namely Chhedilal.
To consider a
settlement as a family arrangement, it .is not necessary
that the parties to the compromise shou!Q all belong to
one family.
As observed by tliis Court in Ram Charan
Das v. Girjanandini Devi and ors. [1965] 3, S:C.R. 841,
the word· "family" in the context of a family arrangement is not to be nnderstood in a narrow sense of being
a group of persons who are recognised in law as having
a right of succession or having a claim to a share in the
property in dispute. If the dispute which is settled is
one between near relations then the settlement of such
a dispute can be considered as a family arrangementsee Ramcharan Das's case (supra)."
Judged by the tests laid down in these decisions, we ca11
rea~onably come to the conclusion that Ex. B-2 and B-5 read
together brought about a family settlement.
This leaves us with the dispute relating to properties set out
in Sch. I of the plaint.
So far as the properties set out in Sch. I of the paint are concerned, the High Court and the trial court have reached dificrent
conclusions.
The trial court held that under E1( .A-2, RamaJingam Pillai had made a complete dedication of those propertie~
for charities and the management of the charities had been left
to V. Rm. Shanmugam Pillai an(fafter him to his successors. On
the basis of those conclusions that Court held that the alienation
of those properties is. invalid and not binding, on the plaintiffs.
The High Court felt unable to come to any firm conclusion on
the evidence on record, as to whether the dedication made under
Ex. A-2 by Ramalingam Pillai was complete or partial. Further
it came to the conclusion that the plaintiffs are precluded from
questioning the management of those properties by defendants 1
to 4 in view of the various transactions between the partie5 referred to earlier.
It may be noted that the parties are .:greed that charities
mentioned in Ex. A-2 have to be conducted in accordance with
the directions given in Ex. A-2. The only question is who should
conduct them.
Tho further controversy between the partie5 is
whether the dedication made under Ex. A-2 is partial or complete.
582
SUPREME COURT REPORTS
[19'73] l S.C.R.
We agree with the High Court that the evidence on record is
not satisfactory enough to reach a firm conclusion as to the nature
of the dedication.
Plaintiffs have failed to adduce acceptable
.evidence as regards the income of the properties set apart for
charitie.s. That being so, even if we accept the estimate made by
the trial court regarding the expenses to be incurred for conducting those charities, we have no basis to find out the extent of the
surplus that is likely to be left in the hands of the persons who
manage those charities. Under these circumstances it is nbt possible to come to the conclusion that under Ex. A-2, Ramalingam
Pillai had created a trust in respect of those properties for conducting the charities mentioned in Ex. A-2.
As observed by this Court in Menakuru Daisaratharami Reddi
and anr. v. Duddukuru Subba Rao and ors.(1)_that dedication of
a property to religious or charitable purposes may be either complete or partial. If the dedication is complete a trust in favour of
a charity is created. Ii the dedication is partial, a trust in favour
of a charity is not created but a charge in favour of the charity
is attached to, and follows,. the property which retains its original
private and secular character.
Whether or not a dedication is
complete would naturally be a question of fact to be determined
in each case on the terms of the relevant document if the dedication in question was made under a document. In such a case it
.is always a matter of ascer•aining the true intention of the parties,
it is obvious <hat such an intention must be gathered on a fair
and reasonable construction of the document considered as a whole.
If the income of the property. is substantially intended to be used
for the purpose of a charity and only an insignificant and minor
portion of it is allowed to be qsed for the maintenance of the
worshipper or the manager, it may be possible to take the view
that dedication is complete. If, on the other hand, for the maintenance of charity a minor portion of the income is exnected or
required to bie used arid a substantial surplus is left in the hands
of the manager or worshipper for his own private purp0ses, it
would be difficult to accept the theory of complete dedication.
Ex. A-2, after setting out the various charities to be conducted
concludes by saying that "If, after conducting the said charities
properly, there be any surnlus, the same shall be utilised bv the
said Shanmugam Pillai and his heirs for family expenses.
Thev
should aho look after the same carefully and properly." This
shows that the entire income of the properties set apart for charities was not thought to be necessary for conducting the charities.
It was for the plaintiffs to establish that the dedication was complete and cosequently there was a resulting tru~t. As th~y have
(I) AIR 1957 S.C. 797.
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s. s. PILLAI v. K. s. PILLAI (Hedge, J.)
583
failed to establish the same, for the purpose of this case, we have
to proceed on the basis that the dedication was only partial and
the properties retained the character of private properties. Therefore the widows cf V. Rm. Shanmugam Pillai had a beneficial
interest in those properties-see Kalipada Chakraborti and anr. v.
Pa/am' Bala Devi and ors(1). As seen earlier they had alienated
their interest in those properties. For the reasons already men-
'tioned, the plaintiffs ate precluded from questioning the validity
of those alienations. It is not open now to them to contend that
the alienations in questior, are invalid. It is not necessary for us
to decide in this case whether their succe•sors can challenge those
alie1,1ations. Suffice it to say that the plaintiffs are precluded from
challenging those alienations.
In the result this appeal fails and the same is dismissed with
costs.
K.B.N.
Appeal dimissed.
(I) [1953] S.C.R. 503:° __ _