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Issues Involved:
1. Validity of the Sahebzadi Anwar Begum Trust. 2. Inclusion of the value of the corpus of the Sahebzadi Anwar Begum Trust in the principal value of the estate. 3. Validity of the Sahebzadi Oolia Kulsum Trust. 4. Inclusion of the value of the corpus of the Sahebzadi Oolia Kulsum Trust in the principal value of the estate. Detailed Analysis: Issue 1: Validity of the Sahebzadi Anwar Begum Trust The court examined whether the trust created by the deceased on March 21, 1953, known as the Sahebzadi Anwar Begum Trust, was ab initio void. The Assistant Controller of Estate Duty initially found the trust to be repugnant to Sections 13 and 14 of the Transfer of Property Act, as the trust conferred benefits from generation to generation, thus creating a perpetuity. The Appellate Controller, however, held that the trust was saved by the provisions of the Wakf Validation Act, 1913. The Appellate Tribunal confirmed this view, stating that the trust had become valid by adverse possession. The court, however, disagreed, noting that the Mussalman Wakf Validating Act, 1913, did not apply to the Hyderabad State, as established by a Division Bench in Salah v. Husain, AIR 1955 Hyd 229. Consequently, the trust was deemed invalid under Sections 13 and 14 of the Transfer of Property Act. Issue 2: Inclusion of the Value of the Corpus of the Sahebzadi Anwar Begum Trust in the Principal Value of the Estate The court addressed whether the value of the corpus of the Sahebzadi Anwar Begum Trust should be included in the principal value of the estate of the late Sri Osman Ali Khan Bahadur. Given that the trust was found to be void, the properties settled under the trust deed should revert to the settlor and his heirs. This legal position was supported by the Supreme Court in CED v. Usha Kumar [1980] 121 ITR 735 (SC). The court further held that the right to recover the trust properties was not barred by limitation under Article 113 of the Limitation Act, as there had been no demand from the settlor or his heirs, nor any refusal or denial by the trustees. Therefore, the value of the corpus of the trust was liable to be included in the principal value of the estate under Section 5 of the E.D. Act. Issue 3: Validity of the Sahebzadi Oolia Kulsum Trust Similarly, the court examined the validity of the trust created by the deceased on March 21, 1953, known as the Sahebzadi Oolia Kulsum Trust. The terms of this trust were identical to those of the Sahebzadi Anwar Begum Trust. The Assistant Controller of Estate Duty found it to be repugnant to Sections 13 and 14 of the Transfer of Property Act. The Appellate Controller and the Appellate Tribunal had previously upheld the trust's validity under the Wakf Validation Act, 1913. However, the court ruled that the Mussalman Wakf Validating Act, 1913, did not apply to the Hyderabad State, rendering the trust invalid under Sections 13 and 14 of the Transfer of Property Act. Issue 4: Inclusion of the Value of the Corpus of the Sahebzadi Oolia Kulsum Trust in the Principal Value of the Estate The court considered whether the value of the corpus of the Sahebzadi Oolia Kulsum Trust should be included in the principal value of the estate of the late Sri Osman Ali Khan Bahadur. As the trust was found to be void, the properties settled under the trust deed should revert to the settlor and his heirs. The court reiterated that the right to recover the trust properties was not barred by limitation under Article 113 of the Limitation Act. Consequently, the value of the corpus of the trust was liable to be included in the principal value of the estate under Section 5 of the E.D. Act. Conclusion: - R.C. No. 85 of 1978: The trust created by the deceased on March 21, 1953, known as Sahebzadi Anwar Begum Trust, is void ab initio. - R.C. No. 95 of 1978: The value of the corpus of the Sahebzadi Anwar Begum Trust is liable to be included in the principal value of the estate of Sir Osman Ali Khan Bahadur. - R.C. No. 87 of 1978: The trust created by the deceased on March 21, 1953, known as Sahebzadi Oolia Kulsum Trust, is void ab initio. - R.C. No. 88 of 1978: The value of the corpus of the Sahebzadi Oolia Kulsum Trust is liable to be included in the principal value of the estate of late Sir Osman Ali Khan Bahadur. There will be no order as to costs. The request for leave to appeal to the Supreme Court was refused.
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