1966 (9) TMI 146 - SC - Indian Laws

Summary

Issues Involved:
1. Validity of the deed of settlement (Nirupan Patra).
2. Allegation of undue influence and mental incapacity of the donor.
3. Presumption of undue influence based on the relationship and circumstances.
4. Sufficiency of pleadings and evidence regarding undue influence.
5. Onus of proof in cases of alleged undue influence.
6. Legality of the High Court's presumptions and approach.

Issue-wise Detailed Analysis:

1. Validity of the Deed of Settlement (Nirupan Patra):
The appeal concerns a judgment and decree from the High Court of Calcutta, which reversed the Subordinate Judge of Bankura's decision dismissing the plaintiff's suit. The suit sought to declare a deed of settlement executed by the plaintiff's father and sister in favor of the plaintiff's brother's son as fraudulent, collusive, and invalid, and to cancel the said document. The High Court presumed undue influence due to the relationship and circumstances but did not find explicit evidence of the donor's incapacity or the donee's dominance.

2. Allegation of Undue Influence and Mental Incapacity:
The plaintiff alleged that the deed was executed under undue influence and that the donor, being 90 years old, suffered from senile decay and lacked the power of discrimination. However, the trial court found no sufficient evidence to support the claim of undue influence or mental incapacity. The plaintiff's own evidence suggested that the father was of sound mind and aware of the transaction.

3. Presumption of Undue Influence Based on Relationship and Circumstances:
The High Court presumed undue influence due to the donor's advanced age and the close relationship with the donee. However, the Supreme Court emphasized that mere relationship and old age do not automatically lead to a presumption of undue influence. The law requires more than mere influence; it must be shown that the influence was "undue."

4. Sufficiency of Pleadings and Evidence Regarding Undue Influence:
The Supreme Court noted that the pleadings in the plaint were insufficient to establish a case of undue influence. The plaintiff failed to provide full particulars of undue influence as required by law. The plaint contained conflicting statements, suggesting both collusion and incapacity, which are inconsistent positions.

5. Onus of Proof in Cases of Alleged Undue Influence:
Under Section 16 of the Indian Contract Act, the burden of proving undue influence lies on the person alleging it. The court must first establish that the relations between the parties were such that one could dominate the will of the other and that the transaction was unconscionable. Only then does the burden shift to the benefiting party to prove the absence of undue influence.

6. Legality of the High Court's Presumptions and Approach:
The Supreme Court found that the High Court's approach was flawed. The High Court made presumptions about undue influence without concrete evidence and overlooked the necessary stages of proving undue influence. The Subordinate Judge's findings, based on evidence, were that the donor was of sound mind and the transaction was not unconscionable. The High Court's presumptions were neither warranted by law nor supported by facts.

Conclusion:
The Supreme Court allowed the appeal, set aside the judgment and decree of the High Court, and restored the trial court's decision. The High Court's approach was deemed incorrect, and the plaintiff's case of undue influence was not sufficiently alleged or substantiated. The respondents were ordered to pay costs throughout.