1964 (3) TMI 98 - SC - Indian Laws

Summary

Issues Involved:

1. Whether the properties acquired in the names of Ramakrishna's wife, son, grandson, and brother-in-law were joint family properties.
2. Whether the income and expenditure of the joint family properties from 1931 to 1946 were properly managed and accounted for.
3. Whether the acquisitions made post-1931 were from joint family funds or Ramakrishna's personal earnings.
4. Whether the Karta (Ramakrishna) is liable to account for the management of the family properties prior to the notice demanding partition.

Issue-Wise Detailed Analysis:

1. Joint Family Properties:
The plaintiff claimed that the properties acquired in the names of Ramakrishna's wife, son, grandson, and brother-in-law were acquired with family funds and thus formed part of the joint family properties. The High Court disagreed with the Trial Court's finding that the joint family had sufficient funds to acquire these properties and concluded that the acquisitions and investments in the names of defendants 3, 4, and 6 were not made from joint family funds. The legal position is well settled that if the joint family had sufficient nucleus at the time of acquisition, the property should be presumed to be joint family property unless the contrary is shown. The High Court found that the plaintiff failed to show that the joint family had sufficient nucleus for these acquisitions, thus rebutting the presumption of joint family property.

2. Income and Expenditure Management:
The High Court concluded that the first defendant, Ramakrishna, had saved enough from his separate earnings to make the acquisitions and investments post-1930. The evidence showed that the family income was not sufficient to account for the acquisitions made during this period. The High Court found that the joint family did not possess sufficient nucleus for making the purchases mentioned in Schedules B, B1, C, C1, and the properties in the Schedule to the second defendant's written statement. The High Court's conclusion that these properties did not form part of the joint family properties was upheld.

3. Acquisitions Post-1931:
The High Court found that the acquisitions made in the names of Ramakrishna's wife, son, and grandson post-1931 were from Ramakrishna's personal earnings. The Trial Court's finding that Ramakrishna had an accumulated income of about Rs. 14,000 from family funds by 1931 was deemed "surprising and untenable" by the High Court. The evidence showed that Ramakrishna had sufficient personal income from his role as Karnam and other sources to make these acquisitions. The High Court's conclusion that the properties acquired post-1931 were not joint family properties was upheld.

4. Karta's Liability to Account:
The High Court ruled that in the absence of evidence of fraud or misappropriation, the Karta (Ramakrishna) could not be called upon to account for past transactions. The Karta is only responsible for establishing the assets available for partition. The High Court found no justification for calling Ramakrishna to account for his past dealings with the joint family property and its income prior to the notice demanding partition on 12th December 1946. The High Court's order that there was no liability on the first defendant to render any account of any kind prior to this date was upheld.

Conclusion:
The appeal by the plaintiff was dismissed, and the High Court's decision was upheld. The properties acquired in the names of Ramakrishna's wife, son, and grandson were not considered joint family properties. The Karta, Ramakrishna, was not liable to account for the management of the family properties prior to the notice demanding partition.