Showing posts with label life interest. Show all posts
Showing posts with label life interest. Show all posts

Monday, 19 February 2024

Under which circumstances life interest in property given to wife will not convert into ownership rights as per S 14 of Hindu Succession Act?

In our view the relevant aspect of the aforesaid conclusion is para 4 which opines where Sub-section (2) of Section 14 of the said Act would apply and this does inter alia applies to a Will which may create independent and new title in favour of females for the first time and is not a recognition of a pre-existing right. In such cases of a restricted estate in favour of a female is legally permissible and Section 14(1) of the said Act will not operate in that sphere.{Para 30}


31. We may add here that the objective of Section 14(1) is to create an absolute interest in case of a limited interest of the wife where such limited estate owes its origin to law as it stood then. The objective cannot be that a Hindu male who owned self-acquired property is unable to execute a Will giving a limited estate to a wife if all other aspects including maintenance are taken care of. If we were to hold so it would imply that if the wife is disinherited under the Will it would be sustainable but if a limited estate is given it would mature into an absolute interest irrespective of the intent of the testator. That cannot be the objective, in our view.


32. The testator in the present case, Tulsi Ram, had taken all care for the needs of maintenance of his wife by ensuring that the revenue generated from the estate would go to her alone. He, however, wished to give only a limited lift interest to her as the second wife with the son inheriting the complete estate after her lifetime. We are, thus, of the view that it would be the provisions of Section 14(2) of the said Act which would come into play in such a scenario and Ram Devi only had a life interest in her favour. The natural sequitur is that the Respondents cannot inherit a better title than what the vendor had and, thus, the view taken by the trial court and the first appellate court is the correct view and the sale deeds in favour of the Respondents cannot be sustained.

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 1543-1544 of 2019

Decided On: 01.02.2022

Jogi Ram Vs. Suresh Kumar and Ors.

Hon'ble Judges/Coram:

Sanjay Kishan Kaul and M.M. Sundresh, JJ.

Author: Sanjay Kishan Kaul, J.

Citation:  MANU/SC/0119/2022.

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Wednesday, 17 April 2019

Whether tenant inducted by person having life interest can be evicted without following eviction proceeding?

 A statutory protection granted for the benefit of the tenants under specific tenancy laws is to be viewed from a standpoint of protecting the interests of a particular class. Restrictions on recovery of possession of the premises let out to the tenants have been imposed for the benefit of the tenants as a matter of legislative policy.
16 There is a fallacy in the submission which was urged on behalf of the appellant. The appellant postulates that a life interest is personal to the person who possesses it and the creation of a tenancy which will enure beyond her life amounts to a transfer of the life interest. What the submission overlooks is that the

creation of the tenancy was an act of the person enjoying a life interest in the present case and was an incident of the authority of that individual to generate income from the property for her own sustenance. The creation of a tenancy is an incident of the exercise of such an authority. The protection which is conferred upon the tenant against eviction, except on specified grounds, arises as a consequence of statutory prescription under rent control legislation. The reason why the tenant is entitled to occupy the premises beyond the life time of the landlord who created the tenancy is simply as a result of a statutory enactment, in this case, the East Punjab Rent Restriction Act 1949. It is the intervention of a legislative mandate which enures to the benefit of the tenant. Once this has taken place, it was not open to the civil court to entertain a suit for possession founded on the hypothesis that the tenant is a trespasser.
17 In view of the above discussion, we have come to the conclusion that:
(i) Shiv Dev Kaur was in terms of the will executed by her father, Dr Hira Singh on 16 September 1944 entitled to a life interest in the property;
(ii) Under the terms of the will, Shiv Dev Kaur was entitled to settle and reside in the property and benefit from the income arising out of the rent;
(iii) The life estate granted to Shiv Dev Kaur enabled her to create a tenancy and receive the rent from the tenants on the property. She fulfilled the description of a ‘landlord’ under Section 2(c) of the East Punjab Urban Rent Restriction Act 1949;
(iv) The first respondent who was covered by the expression ‘tenant’ under Section 2(i) of the East Punjab Urban Rent Restriction Act 1949 acquired the character of a statutory tenant and was protected under it;

(v) The statutory protection afforded to the tenant did not cease to exist upon the death of Shiv Dev Kaur;
(vi) A suit for possession on the basis that the tenant was a trespasser after the death of Shiv Dev Kaur was not maintainable; and
(vii) The remedy of the appellants was to pursue eviction proceedings on the grounds contemplated by the East Punjab Urban Rent Restriction Act 1949.

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
Civil Appeal No 11086 of 2018

Dr RS Grewal  Vs  Chander Parkash Soni 


Dr Dhananjaya Y Chandrachud, J
Dated:April 16, 2019.
Citation: (2019) 6 SCC 216,2019 (1) RCR (Rent) 577 : 2019 (6) Scale 532
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Saturday, 23 March 2019

Whether wife will get absolute right in property if his husband was having only life interest in said property?

In the instant case, there is nothing on record to show that the property in the hands of Chhimli came in lieu of maintenance or on account of arrears of maintenance. The property in her hands came as a result of she being a successor of Sheo Lal. Sheo Lal did not possess any property. He had only life interest in the property which did not enlarge into a full right because Section 14(1) does not recognize the pre-existing right of a Hindu male. Smt. Chhimli could not have acquired a better right than her husband had in the property in dispute. Right of Sheo Lal, as also Smt. Chhimli, flows from the decree. Therefore, her right would not mature into full-fledged ownership by virtue of Section 14(1). She has acquired the right by virtue of the compromise decree for the first time. Therefore, Section 14(2) would apply to the instant case.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 7919 of 2011

Decided On: 08.05.2018

 Basanti Devi (dead)  Vs. Rati Ram and Ors.

Hon'ble Judges/Coram:
N.V. Ramana and S. Abdul Nazeer, JJ.

Citation:(2018) 16 SCC 608
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Tuesday, 26 December 2017

Whether it is permissible to create life interest in property in favour of Hindu woman?


 An owner of property has normally the right to deal with that property including the right to devise or bequeath the property. He could thus dispose it of by a testament. Section 30 of the Act, not only does not curtail or affect this right, it actually reaffirms that right. Thus, a Hindu male could testamentarily dispose of his property. When he does that, a succession under the Act stands excluded and the property passes to the testamentary heirs. Hence, when a male Hindu executes a will bequeathing the properties, the legatees take it subject to the terms of the will unless of course, any stipulation therein is found invalid. Therefore, there is nothing in the Act which affects the right of a male Hindu to dispose of his property by providing only a life estate or limited estate for his widow. The Act does not stand in the way of his separate properties being dealt with by him as he deems fit. His will hence could not be challenged as being hit by the Act.

14. When he thus validly disposes of his property by providing for a limited estate to his heir, the wife, the wife or widow has to take it as the estate falls. This restriction on her right so provided, is really respected by the Act. It provides in Section 14(2) of the Act, that in such a case, the widow is bound by the limitation on her right and she cannot claim any higher right by invoking Section 14(1) of the Act. In other words, conferment of a limited estate which is otherwise valid in law is reinforced by this Act by the introduction of Section 14(2) of the Act and excluding the operation of Section 14(1) of the Act, even if that provision is held to be attracted in the case of a succession under the Act. Invocation of Section 14(1) of the Act in the case of a testamentary disposition taking effect after the Act, would make Sections 30 and 14(2) redundant or otiose. It will also make redundant, the expression "property possessed by a female Hindu" occurring in Section 14(1) of the Act. An interpretation that leads to such a result cannot certainly be accepted. Surely, there is nothing in the Act compelling such an interpretation. Sections 14 and 30 both have play. Section 14(1) applies in a case where the female had received the property prior to the Act being entitled to it as a matter of right, even if the right be to a limited estate under the Mitakshara law or the right to maintenance.

15. Dealing with the legal position established by the decisions in Tulasamma and Bai Vajia v. Thakorbhai Chelabhai the position regarding the application of Section 14(2) of the Act is summed up in Mayne on Hindu Law thus:

Sub-section (2) of Section 14 applies to instruments, decrees, awards, gifts, etc., which create independent and new title in favour of females for the first time and has no application where the instruments concerned merely seek to confirm, endorse, declare or recognise pre-existing rights. The creation of a restricted estate in favour of a female is legally permissible and Section 14(1) will not operate in such a case. Where property is allotted or transferred to a female in lieu of maintenance or a share at partition the instrument is taken out of the ambit of Sub-section (2) and would be governed by Section 14(1) despite any restrictions placed on the powers of the transferee. (See p. 1172 of the 15th Edn.)

41. Reading of the aforementioned principle of law laid down in the cases of V. Tulasamma and Sadhu Singh (supra), it is clear that the ambit of Section 14(2) of the Act must be confined to cases where property is acquired by a female Hindu for the first time as a grant without any pre-existing right, under a gift, will, instrument, decree, order or award, the terms of which prescribe a "restricted estate" in the property. Where, however, property is acquired by a Hindu female at a partition or in lieu of right of maintenance, it is in virtue of a pre-existing right and such an acquisition would not be within the scope and ambit of Section 14(2) of the Act, even if the instrument, decree, order or award allotting the property prescribes a "restricted estate" in the property.

42. Applying the principle laid down in the aforementioned two cases to the facts of the case on hand, we are of the considered opinion that the case of Plaintiff No. 2-Mrs. Pritam does not fall Under Section 14(1) of the Act but it squarely falls Under Section 14(2) of the Act. In other words, in our view, in the facts of this case, the law laid down in Sadhu Singh's case (supra) would apply.

43. A fortiori, Plaintiff No. 2-late Mrs. Pritam received only "life interest" in the suit house by the Will dated 24.06.1986 from her late husband and such "life interest" was neither enlarged nor ripened into an absolute interest in the suit house and remained "life interest", i.e., "restricted estate" till her death Under Section 14(2) of the Act. This we say for following factual reasons arising in the case.

44. First, the testator-Mr. Dewan being the exclusive owner of the suit house was free to dispose of his property the way he liked because it was his self earned property.

45. Second, the testator gave the suit house in absolute ownership to his son and the daughter and conferred on them absolute ownership. At the same time, he gave only "life interest" to his wife, i.e., a right to live in the suit house which belonged to son and daughter. Such disposition, the testator could make by virtue of Section 14(2) read with Section 30 of the Act.

46. Third, such "life interest" was in the nature of "restricted estate" Under Section 14(2) of the Act which remained a "restricted estate" till her death and did not ripen into an "absolute interest" Under Section 14(1) of the Act. In other words, once the case falls Under Section 14(2) of the Act, it comes out of Section 14(1). It is permissible in law because Section 14(2) is held as proviso to Section 14(1) of the Act.

47. Fourth, the effect of the Will once became operational after the death of testator, the son and the daughter acquired absolute ownership in the suit house to the exclusion of everyone whereas the wife became entitled to live in the suit house as of right. In other words, the wife became entitled in law to enforce her right to live in the suit house qua her son/daughter so long as she was alive. If for any reason, she was deprived of this right, she was entitled to enforce such right qua son/daughter but not beyond it. However, such was not the case here.

48. Fifth, the testator had also given his other properties absolutely to his wife which enabled her to maintain herself. Moreover, a right to claim maintenance, if any, had to be enforced by the wife. She, however, never did it and rightly so because both were living happily. There was, therefore, no occasion for her to demand any kind of maintenance from her husband.

49. Sixth, it is a settled principle of law that the "life interest" means an interest which determines on the termination of life. It is incapable of being transferred by such person to others being personal in nature. Such person, therefore, could enjoy the "life interest" only during his/her lifetime which is extinguished on his/her death. Such is the case here. Her "life interest" in the suit house was extinguished on her death on 12.09.2016.

50. Seventh, as mentioned above, the facts of the case on hand and the one involved in the case of Sadhu Singh (supra) are found to be somewhat similar. The facts of the case of Sadhu Singh were that the husband executed a Will in favour of his wife of his self-acquired property in 1968. Though he gave to wife absolute rights in the properties bequeathed but some restrictions were put on her right to sell/mortgage the properties and further it was mentioned in the Will that the said properties after wife's death would go to testator's nephew. Due to these restrictions put by the testator on his wife's right to sell/mortgage, it was held that the wife received only the "life interest" in the properties by Will and such "life interest", being a "restricted estate" within the meaning of Section 14(2) of the Act, did not enlarge and nor ripen into the absolute interest Under Section 14(1) but remained a "life interest" i.e. "restricted estate" Under Section 14(2) of the Act. It was held that such disposition made by the husband in favour of his wife was permissible in law in the light of Section 14(2) read with Section 30 of the Act. In our view, the facts of the case on hand are similar to the facts of Sadhu Singh's case (supra) and, therefore, this case is fully covered by the law laid down in Sadhu Singh's case.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 21784 of 2017 (Arising out of SLP (C) No. 32044/2016)

Decided On: 12.12.2017

Ranvir Dewan Vs. Rashmi Khanna and Ors.

Hon'ble Judges/Coram:
R.K. Agrawal and Abhay Manohar Sapre, JJ.
Citation: (2018) 12 SCC 1
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Wednesday, 1 February 2017

Whether person having life interest in property can transfer said property?

 In my view, since Godubai herself had life interest in the
suit property, after her demise, no party could claim any right, title
and interest even in respect of half of the suit property through
Godubai. A party who had life interest in the property cannot create

any right, title or interest of any nature and more particularly transfer
of the alleged ownership in favour of any third party. In my view, the
judgment of this Court dated 12th July, 1972 passed in the Second
Appeal No.1190 of 1964 is binding on the parties, including the
defendant, who is claiming through Godubai, who was admittedly the
appellant in the said Second Appeal No.1190 of 1964.
 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
 CIVIL APPELLATE JURISDICTION
SECOND APPEAL NO.197 OF 2013
WITH
CIVIL APPLICATION NO.526 OF 2013
IN
SECOND APPEAL NO.197 OF 2013
Shri Shaikh Mustafa Yasin 
V
 Shri Sharad Ganesh Tisgaonkar 
 CORAM : R.D. DHANUKA, J.

Dated : 13TH OCTOBER, 2016
Citation: 2016(6) ALLMR 880
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