High Court Kerala High Court

Sankarankutty vs Kochammini on 27 April, 2010

Kerala High Court
Sankarankutty vs Kochammini on 27 April, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

AS.No. 273 of 2000(E)



1. SANKARANKUTTY
                      ...  Petitioner

                        Vs

1. KOCHAMMINI
                       ...       Respondent

                For Petitioner  :SRI.K.P.SREEKUMAR

                For Respondent  :SRI.N.P.SAMUEL

The Hon'ble MR. Justice PIUS C.KURIAKOSE

 Dated :27/04/2010

 O R D E R
                    PIUS C. KURIAKOSE, J.
             ------------------------------------------
                      AS. No. 273 of 2000
             -------------------------------------------
             Dated this the 27th day of April, 2010

                         J U D G M E N T

The second defendant in a suit for partition which is

decreed by the trial court is the appellant. The parties will

be referred to as they were before the trial court. The

plaintiffs, two sisters filed the suit arraying their father as

the first defendant and siblings as the other defendants.

2. The case of the plaintiffs as averred in the plaint was

that they and defendants 2 to 8 are the children of the first

defendant and his wife Kochupennu. Kochupennu passed

away on 4-3-1982. As per document No. 2801/1118 M.E. of

the Sub Registry Office, Thrissur, (Ext.A1), Ext.B5 the

properties were acquired by late Kochupennu along with

some other properties. Kochupennu had already assigned

the remaining properties. Kochupennu acquired these

properties with her own funds. Kochupennu had exclusive

possession and enjoyment of the properties till she died.

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She had made valuable improvements in the properties.

She assigned 49 cents of land to the third defendant who

wanted to get her share out of her mother’s properties in

advance. Hence the third defendant is not entitled to get

further share in the property. Upon demise of Kochupennu

the properties devolved upon the plaintiffs and defendants

1, 2 and 4 to 8 who are in joint possession and enjoyment

of the properties. The first defendant was looking after the

properties on behalf of all the co-owners and he was paying

share of profits to the plaintiffs till January, 1983.

Thereafter he did not pay the share of profits. Hence the

plaintiffs sent a notice demanding partition. To that notice,

a reply was sent raising untenable contentions. The parties

are Ezhavas governed by the Hindu Succession Act for

inheritance. The mesne profits from the property per year

will come to Rs.27,000/-. Hence the suit for partition with

future mesne profits.

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3. A joint written statement was filed by defendants 1,

2, 4, 5, 7 and 8. It was contended that it is not correct to

say that Kochupennu acquired the properties with her own

funds and was in possession and enjoyment of the

properties till her demise. The properties were actually

acquired by the first defendant in the name of Kochupennu.

Kochupennu was only a benamidar. The first defendant was

tenant under one Neelakanta Sasthrikal. After the marriage

of Kochupennu, she was residing along with the first

defendant in the house constructed by him. While so, the

suit properties along other 12 acres and 87 cents was

purchased by the first defendant from Neelakanta Sasthrikal

for a consideration of Rs.800/-. Rs.300/- was paid by cash

and the remaining Rs.500/- was raised by executing a

mortgage deed in favour of one Varunni. The first

defendant subsequently redeemed portions of these

properties from mortgage. Even though the documents

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stand in the name of Kochupennu, the properties are in the

possession of the first defendant. The first defendant

caused late Kochupennu to execute a settlement deed in

favour of the third defendant 48= cents in 1981. The

averment that the third defendant was given one share in

the properties is not correct. The properties did not devolve

upon the parties upon demise of Kochupennu. The first

defendant had already given in marriage his daughters

giving ornaments and utensils etc. and all the daughters are

residing in the houses of their husbands. For conducting

marriage of the 7th defendant, the first defendant had taken

a loan of Rs.20,000/- . In 1984, the A schedule property

was settled by the first defendant in favour of second

defendant and in 1985, the B- schedule property was settled

in favour of the 5th defendant. Similarly, the C – schedule

properties were settled in favour of 7th defendant in 1985

itself. The first defendant has executed a Will in respect of

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the properties. These properties will fetch mesne profits

as stated is wrong.

3. The learned Subordinate Judge formulated the

following issues for trial in the suit.

1. Whether the suit properties were acquired and held
exclusively by deceased Kochupennu as is pleaded
in the plaint, or whether the sale deed in her name
was only a benami transaction?

2. Whether the plaintiffs are entitled to claim partition?

3. What are the correct shares?

4. Whether the documents executed by the 1st
defendant are valid and binding?

5. Equities and reservations?

6. Whether the plaintiffs are entitled to mesne profits?

If so, what is the quantum?

7. Reliefs and costs?

The issues were enquired into and at trial the evidence

consisted of Exts.A1 to A3, B1 to B44 and the oral evidence

of the first defendant as DW-1. On evaluating the evidence

the learned Subordinate Judge found that the defendants

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are not entitled to take the benefit of Section 2 of the

Benami Transactions (Prohibition of the Right to Property)

Ordinance, 1988. The court also relied on a statement made

by first defendant as DW1 that he has no contention and

that he has simply agreed for passage of a decree as prayed

for. The court went on to find that the suit properties are

partible and hence passed a preliminary decree for partition.

Against that judgment and decree AS. No. 468 of 1990

was filed before this Court by the present appellant himself.

This court set aside that judgment and decree taking the

view on the basis of the judgment of the Supreme Court in

Nanda Kishore Mehra v. Sushila Mehra (1995) 4 SCC 572

that when Section 3(2) permits a person to enter into a

benami transaction of purchase of property in the name of

his wife or unmarried daughter, the question of punishing

him under Section 3(3) or the question of acquiring the

property concerned under Section 5 can never arise. This

AS. 273/2000
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court accordingly held that there is no valid reason to deny

to a person enforcement of his rights under Section 3(2) of

the Act. This court also relied on the judgment of the

Supreme Court in R.Rajagopal Reddy v. Padmini

Chandrasekharan, (1995) 2 SCC 630 and held that since the

suit is of the year 1985, the provisions of the Benami

Transactions (Prohibition) Act, 1988 cannot apply. This

court was not very much impressed by the statement made

by DW1 in his evidence. According to this Court, since DW1

had filed a joint written statement along with the other

defendants, the other defendants should be given an

opportunity to adduce evidence in support of the written

statement. Accordingly, the judgment and decree were set

aside and the suit was remanded to the trial court giving

opportunity to the defendants to adduce evidence regarding

the benami nature of the transaction. It was also ordered

that if the first defendant is not available for evidence the

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other defendants will be allowed to give separate evidence.

After the above order of remand the second defendant was

examined as DW2 and the learned Subordinate Judge would

formulate additional issue No.8 as follows:

“Whether the first defendant has acquired the property
in the name of his wife as benami?

Issue Nos. 1 to 6 and additional issue No. 8 were considered

by the learned Subordinate Judge together. On appreciating

the evidence and by relying on the judgment of the

Supreme Court in Jagdagal Poddar v. Bibi Hazra and others

(AIR 1974 SC 171) which lays down the principles to be

kept in mind while finding out the benami nature of a

particular transaction, the learned Sub Judge came to the

conclusion that the purchase of the property under Ext.B5

was made in the name of late Kochupennu and it can never

be treated as a benami transaction. In this regard the

learned Sub Judge relied on Section 3(2) of the Benami

Transaction (Prohibitory) Act also. Accordingly repelling the

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contentions a preliminary decree was passed. It is

assailing the above preliminary decree and judgment that

the present appeal is filed raising various grounds.

4. Before the arguments commenced I noticed that

despite the mandate of Order 32A the possibility of a

settlement between the parties in this case, which clearly

comes within the ambit of Order 32A, had not been

explored. Hence I directed the parties to be present in my

chamber. Accordingly most of the parties and counsel were

present in my chamber on 26-6-2008. I explored the

possibility of a settlement between the parties. I was

convinced that an out of court settlement is not possible and

hence listed the appeal for hearing.

5. Extensive and strenuous submissions were

addressed before me by Mr. K.P.Sreekumar, learned counsel

for the appellant. Equally extensive arguments were

addressed before me by Mr.N.P.Samuel, learned counsel for

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the respondents. Drawing my attention to the averments in

the plaint Mr. Sreekumar submitted that the case pleaded

by the plaintiffs was that the properties were acquired by

Kochupennu and the acquisition of the plaint schedule

property was with the own funds of Kochupennu. He also

pointed out that Kochupennu had assigned 49 cents of land

to the 3rd defendant as per Ext.B13 dated 7-1-1981 and

therefore the 3rd defendant is not entitled to any further

share in the plaint schedule property. Mr. Sreekumar

submitted that the specific contention raised by DW1, the

husband of Kochupennu was that Kochupennu had no assets

at the time when Raman married her. The funds for

acquiring the plaint schedule property was generated by

Raman and the improvements were all made in the property

and the house was constructed by Raman. The learned

counsel would read over to me paragraph 3 of the written

statement where these contentions are raised. Counsel

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submitted that there was a specific contention that the

marriage of the 7th defendant was conducted by raising a

loan of Rs.20,000/- on the security of the properties and

that the first defendant has even executed a Will

bequeathing the properties as desired by him. Mr.

Sreekumar would paraphrase issue No.1 remanded by this

court by judgment in AS. 468 of 1990 and submit that the

above issue has two parts. According to him the two parts

contemplated by this issue are as to whether the

acquisition is exclusively by Kochupennu or whether the

acquisition is benami for the 1st defendant. According to

Mr. Sreekumar, it cannot be contended that the plaintiff has

no burden of proof in view of the nature of the issue

settled. Counsel highlighted that the plaintiff had no case

that the issue was wrongly settled and the same is to be re

-cast before the trial started. Counsel argued that a party

accepting the onus without demur cannot object at a later

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stage that the onus was wrongly put on him. According to

Mr. Sreekumar, there is absolutely no evidence on record

that at the time of marriage Kochupennu was given money

as a wedding gift. There is no evidence on record to show

that after the marriage and when she started staying with

Raman she engaged herself in any avocation such as

vending milk, rearing goats, poultry to augment the income

of the family and while doing so she could save money

with which she could acquire Ext.A1 properties. Counsel

submitted that it was not the case pleaded by the plaintiffs

that there was financial help rendered to Kochupennu from

her family to acquire Ext.A1 properties. According to Mr.

Sreekumar, the crucial question is what is the presumption

in respect of a lady who had no job, no private avocation, no

family help acquiring property in her name. The learned

counsel would ask whether it is to be presumed that the

property was acquired with the funds generated by her

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husband as claimed or the case of acquisition with the own

funds as pleaded in the plaint, for, the documents stands in

her name. Counsel submitted that it is a well established

principle of law that a person seeking partition of property

must establish his right to demand partition. According to

him, the right of the plaintiff to get partition will stand

established only on establishing the fact comprised in the

aforesaid issue, viz., whether the properties were acquired

individually and held by Kochupennu. Placing strong

reliance on the judgment of the Supreme Court in

Vidhyadhar v. Mankikrao, (AIR 1999 SC 1441) Mr.

Sreekumar submitted that the non examination of the

plaintiffs in this particular case will justify drawal of adverse

inference against them. The learned counsel blamed the

court below for not entering in a finding on the question as

to whether the plaintiffs’ case that the property has been

acquired by their mother with her own funds is correct. The

AS. 273/2000
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court below considered only the second part of the first

issue and omitted to consider the first part. This has

resulted in serious prejudice to the interest of the appellant.

Mr. Sreekumar would assail the conclusions of the learned

Sub Judge based on Section 3(2) of the Benami

Transactions (Prohibition) Act, 1988. According to him, while

properties purchased by one in the name of his wife or

unmarried daughter the presumption can be that the

purchase was for the benefit of wife or unmarried daughter

unless the contrary is proved. In the instant case

Mr.Sreekumar referred to Exts.B14 to B16, the three

assignment deeds and the recitals therein and argued that

those documents and the recitals therein will amount to

proving the contrary for the purpose of Section 3(2). He

referred to Ext. B19 and B17 also and submitted that though

A1 stood in the name of Kochupennu alone all the

subsequent dealings in relation to the property, Raman also

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was participating with Kochupennu. After the death of

Kochupennu, Exts.B14 to B16 were executed asserting his

rights as the real owner. A state of things is shown to

have existed throughout. Hence the presumption will move

forward and backward. For this proposition the learned

counsel relied on the judgment of the Supreme Court in AIR

1996 SC 605.

6. Sri.N.P.Samuel was able to meet all the submission

of Mr.K.P.Sreekumar to a considerable extent. Mr.Samuel

referred to Section 3(1) and (2) of Benami Transaction

(Prohibition) Act and submitted that since in the instant case

the purchase of the property by Kochupennu as contended

by the defendant was effected before the commencement of

the Benami Transactions (Prohibition) Act, Section 3(1)

cannot have any application regarding this case. What the

learned counsel argued is that the burden to prove that a

purchase of a property is benami as always on a person

AS. 273/2000
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who asserts it to be so and this burden can never shift. Even

if an issue was wrongly framed casting burden on the

plaintiff as is done in the present case, the onus will not

shift. Counsel referred to paragraph 5 of the judgment of

the Supreme Court in AIR 1974 Page 171 and submitted

that “the essence of a benami is the intention of the party or

parties concerned and not unoften such intention is

shrouded in a thick veil which cannot be easily pierced

through”. But such difficulty will not relieve the person

asserting the transaction to be benami from the obligation

of establishing that the transaction is benami. Referring to

the same judgment Mr.Samuel highlighted that a registered

document is a solemn document prepared and executed

after considerable deliberations and that if so, the person

expressly shown as the purchaser or transferee in the

document always enjoys the initial presumption in his favour

that the apparent state of affairs is the real state of affairs.

AS. 273/2000
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Mr.Sreekumar referred to the judgment of the Allahabad

High Court in AIR 1979 page 47 and submitted that a

registered sale deed carries a presumption of genuineness

regarding the correctness of the recitals and the burden to

prove that the sale is not a real and that the document is

executed benami for the benefit of somebody else is on the

person who alleges the same. Referring to the judgment of

the Patna High Court in AIR 1964 Page 543 Mr.Samuel

submitted that there is no presumption in Hindu Law that

the transactions standing in the name of wives are

transactions belonging to their husbands. Mr.Samuel

reiterated that the defendants have not discharged their

burden of proof in this case. Mr.Samuel submitted that after

acquiring the suit property under Ext.A1 in the year 1118

ME late Smt.Kochupennu had purchased property in the

year 1123 also by paying sale consideration. Ext.B11 was

referred to. It is submitted that extent of 2 acres and 4

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cents of land with a house and a well is purchased by

Kochupennu and the learned counsel highlighted the recitals

in the document that the sale consideration is paid by

Kochupennu and her possession of the property is delivered

to Kochupennu. Mr.Samuel highlighted that in the joint

written statement filed by D1, D2, D4, D5, D7 and D8, it

was never claimed that Ext.B11 property purchased by late

Kochupennu is a benami transaction and that it was Raman

who paid the sale consideration and purchased the same in

the name of Kochupennu. Ext.B11 was more than sufficient

evidence to show that Kochupennu had her own funds for

purchasing properties and that there is nothing incredible or

improbable about Kochupennu purchasing the plaint

schedule properties with her funds as recited in Ext.A1.

Mr.Samuel highlited that till Smt.Kochupennu passed away

it was she who exercised the rights over ownership of the

property and her husband never questioned the same.

AS. 273/2000
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Ext.B13 settlement deed dated 07/01/81 executed by

Kochupennu regarding an extent of 48 1/8th cents of

property covered by Ext.A1 is highlited by Mr.Samuel.

Mr.Samuel submitted that Ext.B13 is executed only by late

Kochupennu and Raman is not a co-executant. Raman who

was aware of the execution of Ext.B13 had no demur

against Ext.B13 or the assertion of ownership by Ext.B13

over the property covered by Ext.B13. Mr.Samuel submitted

it was after the demise of Kochupennu and after receiving

Ext.A4 demand for partition on 16.07.1984 Ext.DW1 Raman

came out with the case of Benami for the first time. Till

Kochupennu died Raman never claimed that it was he who

paid the consideration for purchase of Ext.A1. It is after his

wife passed away that Raman declared himself as the owner

and started transferring properties by executing settlement

deeds. Exts.B14, B15 and B16 settlement deeds executed

by Raman in favour of his children are the documents

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through which Raman introduced the theory of benami for

the first time. Mr.Samuel submitted that in the written

statement no reason is stated as to why Kochupennu

transferred the property in favour of one of the daughters

by Ext.B13. The reason brought out in evidence is that the

transfer became necessary as the properties stood in the

name of Kochupennu. But this is only a lame reason. The

properties covered by Exts.B14 to B16 also stood in the

name of Kochupennu. After the demise of Kochupennu

Raman can claim only co-ownership along with the other

legal representatives of Kochupennu. The action of Raman

in executing Exts.B14 to B16 declaring himself to be the

owner without support of any court verdict came up for

severe attack at the hands of Mr.Samuel. According to him,

it is after the issuance of Ext.A4 partition notice that Raman

usurped the power of court to declare himself as the owner

of the property. According to Mr.Samuel the junction of

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Raman also to the mortgage deed executed by Kochupennu

in spite of Raman having no right over the property is easily

explicable. Counsel submitted that Raman was the

subscriber to the Kuri conducted by Guruvijaya Kuri

Company and Smt.Kochupennu’s liability was only as

mortgagor. Therefore, in order that Raman also became

personally liable it was absolutely necessary that Raman

also joined the mortgage deed. Answering the argument

that Kochupennu had no funds Mr.Samuel would refer to

various aspects of the evidence and argue that the evidence

is to the effect that Raman was in considerable financial

difficulties and had no funds to purchase the properties. As

for Kochupennu’s financial ability Mr.Samuel argued that the

recitals in the registered document arouses a presumption

that consideration was paid by the purchaser Kochupennu

and the evidence in the case falls short of holding that such

presumption has been rebutted by acceptable legal

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evidence.

7. I have very anxiously considered the rival

submissions addressed at the Bar. I have made a thorough

re-appraisal of the entire evidence available in the case. I

have gone through the impugned judgment as well as the

earlier judgment of this Court in A.S.468/90 by which the

case was remanded to the Sub Court for fresh decision.

8. The submissions of Sri.K.P.Sreekumar, the learned

counsel for the appellant that issue No.1 which was

remanded to the court below for re-consideration

contemplates two parts and that the court below has

considered only the second part is attractive, but if one goes

deeper it will be seen that the attractiveness is superficial.

According to me, in the light of the pleadings raised once

the so called second part of the issue as to whether the sale

deed in favour of the Kochupennu is a benami transaction is

answered against the contesting defendants it has to follow

AS. 273/2000
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that the apparent tenor of the title document Ext.A1 under

which absolute ownership and possession of the property is

conveyed to the purchaser Kochupennu is real. The manner

in which the issue is framed and the use of the word or

between what Mr.Sreekumar described as the two parts of

the issue will show that the decision on the so called second

part will have its inevitable effect on the first part also.

9. In order that the scope of the remand order is

understood correctly it is necessary to read the remand

order itself. A careful reading of the remand order will show

that the point which is relegated to be re-considered is the

point whether the purchase covered by Ext.A1 is a purchase

by the first defendant in the name of his wife Kochupennu

benami for him and for his benefit. Permission is granted to

the defendant’s alone to adduce evidence regarding the

benami nature of the transaction and other defendants have

been permitted to give separate evidence if the first

AS. 273/2000
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defendant is not available for adducing further evidence.

Once the scope of the remand oder is understood correctly

then the only question that arises is whether the defendants

were successful in establishing that purchase under Ext.A1

was a purchase actually by the first defendant in the name

of his wife Kochupennu for his benefit.

10. The observations of the Supreme Court in 1974 SC

171 at paragraph 5 are significant.

“The essence of a benami is the intention of
the party or parties concerned and not unoften
such intention is shrouded in a thick veil which
cannot be easily pierced through. But such
difficulties do not relieve the person asserting the
transaction to be benami ….. …… . The reason is
that the deed is a solemn document prepared and
executable after considerable deliberations, and
the person expressly shown as the purchaser or
the transferee in the deed, starts with the initial
presumption in his favour that the apparent state
of affairs is the real state of affairs.”

(underline supplied).

11. The burden to prove that a purchase of a property

is benami for the benefit of another person is on that person

AS. 273/2000
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who asserts the same to be benami and this is a burden that

will seldom shift. Any difficulty in the framing of the issue

will not relieve the person on whom the onus rests to prove

the transaction to be a benami, of such onus. That

registered sale deed carries a presumption regarding the

correctness of the recitals therein (rebuttable though the

same may be) is also settled by a line of decision including

the judgment of the Allahabad High Court in AIR 1979

Allahabad 47 relied on by Mr.Samuel.

12. There is evidence in the case to hold that even

after acquiring the property under Ext.A1 in the year 1118

M.E. late Smt.Kochupennu had purchased the property in

1123 also by paying sales consideration. Ext.B11 is

document executed by one Rajan Menon in favour of

Kochupennu in 1123 in respect of a fairly extensive area of

land with building. It is seen that no contention is raised by

Raman in his written statement that Ext.B11 property was

AS. 273/2000
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also purchased by him in the name of Kochupennu as a

benami transaction. This according to me is a circumstance

which supports the case of the plaintiff that Ext.A1

transaction is not a benami transaction.

13. Ext.B13 settlement deed executed by

Smt.Kochupennu on 07/01/81 in favour of her daughter

Parukutty with respect to an extent of 14 and 1/8th cents of

the property from out of the properties covered by Ext.A1 is

again a circumstance which will show that Kochupennu was

asserting her ownership rights over the property covered by

Ext.A1 during her life time. Significantly in Ext.B13

Kochupennu is the sole executant though Raman’s

contention is it was at his instance that Ext.B13 is executed

there is no evidence to support the above contention.

14. The one circumstance which is highlighted by

Mr.Sreekumar to show that Kochupennu herself conceded

Raman’s interest over the property is the junction of Raman

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to Ext.B19 mortgage deed. But I am of the view that the

circumstance of Raman also joining Ext.B19 mortgage deed

has been satisfactorily explained. The mortgage deed is

executed as a Kuri security mortgage in favour of

Guruvijaya Kuri Company where Raman was the subscriber.

It was to facilitate payment of the Kuri amount due to

Raman that the mortgage became necessary. In fact the

recitals in Ext.B19 itself are to the effect that the property

covered by the mortgage deed belongs absolutely to party

No.2 namely Kochupennu alone. The explanation that it was

for the purpose of fastening Raman the subscriber and

Parukutty, co-guarantor with personal liability that they also

joined the mortgage deed is convincing.

15. Ext.B19 can be safely relied on to conclude that

even Raman had admitted that as on the date of that

document his wife Kochupennu was the person in

possession and enjoyment of the property in question.

AS. 273/2000
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16. Now we will consider whether any evidence has

been adduced by the contesting defendants to show that

Raman was having funds with him to advance to his wife for

the purpose of purchasing the property. Ext.B17 is another

mortgage deed executed by Kochupennu in which also

husband Raman is a co-executor. Ext.B17 is executed for

the purpose of securing the amounts borrowed from

Smt.Devaky Amma for discharge of the debts inclusive of

Rs.1,000/- borrowed for giving in marriage to one of their

daughters. This document will also show that the co-

mortgagor Raman has admitted that the property is

mortgaged belonged to Kochupennu.

17. The oral evidence of DW1 continues to be a very

relevant piece of evidence for resolving the issue. Raman

admitted that plaintiffs can be given 40 cents each from out

of the plaint schedule property. In cross examination, he

further admitted that he has no objection whatsoever in the

AS. 273/2000
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suit being decreed in favour of the plaintiffs. Of course, this

Court while passing the remand order has permitted the

other defendants to substantiate the contention that the

purchase was by Raman for Raman’s benefit in the name of

Raman’s wife. Let us examine the evidence adduced by

them after remand. DW2 Shankarankutty son of Raman is

examined after remand. He had no explanation to offer as to

why the property was purchased in the name of mother

rather than in the name of father himself. He stated that he

has not come across any document which will show that his

father was having income. He also stated that father did not

maintain any income and expenditure accounts. He further

stated that his father had no bank deposit. He also did not

deny the suggestion that his father was hard pressed for

money. I do not find any evidence which will show that it

was Raman who advanced the consideration recited in

Ext.A1.

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18. Under the above circumstances, I do not find any

warrant for interfering with the preliminary decree for

partition passed by the court below. The appeal fails and will

stand dismissed. However, considering the relationship

between the parties I refrain from awarding cost to the

respondent.

PIUS C.KURIAKOSE, JUDGE

ksv/kns-

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PIUS C.KURIAKOSE, J.

AS. No. 273 of 2000

JUDGMENT

27th April, 2010