Featured image for Supreme Court Judgment dated 20-08-2018 in case of petitioner name Kehar Singh (D) Thr. L.Rs. & O vs Nachittar Kaur & Ors.
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Supreme Court Upholds Sale of Ancestral Property by Karta for Legal Necessity

The Supreme Court of India, in the case of Kehar Singh (D) Thr. L.Rs. & Ors. v. Nachittar Kaur & Ors., ruled in favor of the sale of ancestral property by the family Karta for legal necessity. The judgment, delivered on August 20, 2018, by a bench comprising Justice Abhay Manohar Sapre and Justice Sanjay Kishan Kaul, upheld the High Court’s ruling that the sale of the disputed land was valid and legally binding on the plaintiff.

Background of the Case

The dispute concerned land measuring 164 Kanals 1 Marla in Ludhiana, Punjab. The suit was filed by Kehar Singh against his father, Pritam Singh, and the land’s purchasers, challenging the legality of a sale executed by his father. The sale was made through a registered deed on April 25, 1960, for Rs. 19,500 in favor of Tara Singh and Ajit Singh, who were placed in possession of the land.

Kehar Singh filed a civil suit on November 27, 1964, claiming that the land was ancestral and that his father had no right to sell it without his consent. The plaintiff contended that the sale was executed without legal necessity and thus was void. He sought a declaration that the sale was not binding on him and that the land should revert to him.

Petitioner’s (Plaintiff’s) Arguments

The plaintiff, Kehar Singh, put forth the following arguments:

  • The suit land was ancestral property governed by the Punjab Custom (Power to Contest) Act, 1920.
  • His father, as the Karta of the family, had no right to sell the land without the consent of the coparceners.
  • The sale was executed without legal necessity and was not for the benefit of the family.
  • The transaction should be declared void and ineffective against the plaintiff.

Respondents’ (Defendants’) Arguments

The defendants, including the purchasers Tara Singh and Ajit Singh, defended the sale on the following grounds:

  • The land was sold for legal necessity to discharge family debts and improve agricultural land.
  • The sale was made in good faith and for valuable consideration.
  • The Punjab Custom (Power to Contest) Act, 1920, was later amended in 1973, barring sons from challenging sales made by their fathers.
  • The trial court and appellate court had upheld the validity of the sale, recognizing the financial necessity.

Supreme Court’s Observations

The Supreme Court analyzed the case and made the following key observations:

  • The sale of ancestral property by a Karta is valid if made for legal necessity.
  • The evidence showed that the sale proceeds were used to repay a Taccavi loan and other debts, which qualified as legal necessity.
  • The land improvement and marriage expenses of family members further justified the sale.
  • Since the father acted in the family’s best interest, the son could not challenge the sale.
  • The Punjab Custom (Power to Contest) Amendment Act, 1973, retrospectively barred such claims.

Final Judgment

The Supreme Court ruled in favor of the defendants and upheld the High Court’s decision:

  • The appeal filed by the plaintiff was dismissed.
  • The sale of the land by Pritam Singh was declared valid and binding on the plaintiff.
  • The property could not revert to the plaintiff as the sale was executed with legal necessity.

Impact of the Judgment

The ruling had significant implications for Hindu joint family property laws:

  • Clarification on Karta’s Power: The judgment reaffirmed that a Karta has the authority to sell ancestral property for legal necessity.
  • Recognition of Legal Necessity: Debt repayment, land improvement, and family welfare were considered valid grounds for alienation.
  • Application of Customary Law: The ruling reinforced that amendments to the Punjab Custom Act bar challenges to sales made by the father.

Conclusion

The Supreme Court’s verdict in Kehar Singh (D) Thr. L.Rs. & Ors. v. Nachittar Kaur & Ors. upholds the principle that the Karta of a Hindu joint family has the power to alienate ancestral property if justified by legal necessity. This ruling provides clarity on property rights and protects transactions made for the genuine benefit of the family.


Petitioner Name: Kehar Singh (D) Thr. L.Rs. & Ors..
Respondent Name: Nachittar Kaur & Ors..
Judgment By: Justice Abhay Manohar Sapre, Justice Sanjay Kishan Kaul.
Place Of Incident: Punjab.
Judgment Date: 20-08-2018.

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