9911796707
TMI Blog1986 (10) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... d family? " These appeals involve the construction of two trust deeds couched in identical terms. To understand their import, it is necessary to set out genealogical table: Sir Hukum Chand Seth m Lady Kanchanbai (karta) (wife) Raj Bahadur Singh(son) Maharaj Bahadur Singh (son) Jambukumar Singh (son) Ch. Kumar Singh Yesh Kumar Singh m m m (Minor) (Minor) Smt.Indrani Devi (wife) Smt.Sneha Lata Devi (wife) Smt.Urmila Devi (wife) Pravin Dhir rendra Kumar (son) Naina Sunaina Kumari (Daughter) Pramod Kumar (son) Sir Hukum Chand Seth was the head of a well-known family of Indore. The family carried on various businesses and owned extensive properties. Prior to March 31, 1950, Sir Hukum Chand and the members of his family constituted a Hindu undivided family. By a deed of partition dated March 31, 1950, various family properties were partitioned between Sir Hukum Chand, his wife, lady Kanchanbai, and their son, Rai Kumar Singh, in equal shares. Sir Hukum Chand and lady Kanchanbai executed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , that the authors of the trust deeds were competent to settle the properties in accordance with the terms and conditions expressed in those documents. The sole question before us is whether upon those terms and conditions, it was intended by the settlors that the beneficiaries should receive the properties in their individual capacity or in a representative capacity as kartas of their respective Hindu undivided families. It is not necessary to refer to all the provisions of the trust deeds because, the parties are in common agreement, that the principal provisions calling for consideration are clauses 1, 3 and 4 of the trust deeds. Clause I empowers the trustees to apply the income from the trust properties to the rent, rates, taxes and other liabilities in respect of the trust properties, including the cost of maintenance, and thereafter to divide the balance left over in equal shares among the beneficiaries, so that each beneficiary received one-sixth of the balance. In the event of a beneficiary being a minor, his share of income was payable to his natural guardian for being applied towards his education, maintenance and advancement in life, marriage and other expenses. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was further provided that if any beneficiary should have died before the time of such division or distribution leaving a widow and any son or sons or only son or sons, the widow and/or the sons would take by substitution the share which the beneficiary would have taken had he been alive, and such share would be divided equally between the widow and the sons. The proviso declares that if at the time of the division and distribution, any beneficiary should have died without leaving any son but leaving only a widow, the widow would get half of the share of that beneficiary while the other half would be distributed among the remaining beneficiaries and the heirs of the beneficiaries entitled to distribution. A further provision declares that if at the time of division and distribution, any beneficiary should have died without leaving a widow or a son, his share would, subject to such adequate provision made for the maintenance and education until marriage and the marriage expenses of the daughter or daughters of such beneficiary as the trustees may in their discretion think fit, be distributed among the remaining beneficiaries and the heirs of the beneficiaries entitled to distributi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n if the matter be looked at in the context of the Hindu law as it obtained at the relevant time, the terms and conditions of the trust deeds are wholly inconsistent with the property passing into the hands of the beneficiaries as kartas of their respective Hindu undivided families. There is clear indication in the trust deeds which bears this out. In the first place, had it been intended that the beneficiary should receive the property as karta of his Hindu undivided family, the document would not have empowered the trustees, in clause 1, to exercise an absolute and uncontrolled discretion on the death of a beneficiary to apply his share to the maintenance of his widow and his male issue and to accumulate the surplus to the account of the said beneficiary for distribution. On the contrary, the trustees would have been under an obligation to entrust the income falling to the share of the deceased beneficiary to the members of his Hindu undivided family and no discretion would have been permissible in regard to the disposal or otherwise of any part thereof. Secondly, the document would not have provided that if before the time of division and distribution, a beneficiary died leaving ..... X X X X Extracts X X X X X X X X Extracts X X X X
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