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Issues Involved:
1. Whether a member of a joint family can maintain an action on a promissory note allotted at an oral partition without an endorsement of transfer or deed of assignment. 2. Whether the transfer of a promissory note at a partition amounts to a transfer by operation of law or by an act of parties. 3. Applicability of Section 130 of the Transfer of Property Act and the Negotiable Instruments Act to such transfers. Issue-wise Detailed Analysis: 1. Maintainability of Action on Promissory Note Without Endorsement or Assignment: The primary question was whether a member of a joint family, to whom a promissory note was allotted at an oral partition, could maintain an action on the promissory note without an endorsement of transfer or a deed of assignment. The plaintiff was non-suited by the District Munsif of Pudukottai on the grounds that no rights in the promissory note were obtained without an assignment. The High Court examined conflicting judicial opinions. One line of cases held that a promissory note could not be validly transferred without endorsement and delivery, while another line allowed for transfer without endorsement, interpreting the Negotiable Instruments Act as not exhaustive in this regard. 2. Transfer by Operation of Law vs. Act of Parties: The court examined whether a partition in a joint family is a transfer by operation of law or an act of parties. It was argued that partition is not a transfer as envisaged by the Transfer of Property Act but rather an operation of law. The court referred to various precedents, including decisions that recognized the devolution of rights by operation of law, such as in cases of legal representatives, trustees, and receivers. The court concluded that where rights in a promissory note devolve by operation of law, the absence of an endorsement does not bar the suit. 3. Applicability of Section 130 of the Transfer of Property Act and Negotiable Instruments Act: The court analyzed whether Section 130 of the Transfer of Property Act, which requires writing for the assignment of actionable claims, applies to negotiable instruments. It was held that Section 130 does not apply to negotiable instruments, as per Section 137 of the Transfer of Property Act. The court also concluded that the Negotiable Instruments Act is not exhaustive regarding the modes of transfer and does not preclude the transfer of rights by operation of law. Conclusion: The court concluded that a partition in a joint Hindu family does not amount to a transfer within the meaning of the Transfer of Property Act. The transfer of a promissory note at a partition is by operation of law, not by an act of parties. Therefore, no document in writing is required under Section 130 of the Transfer of Property Act. The person to whom the property in the negotiable instrument is transferred by operation of law is entitled to sue on the note. The judgment and decree dismissing the suit were set aside, and the suit was directed to be restored and disposed of on merits.
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