Respondent Memo BR
Respondent Memo BR
Respondent Memo BR
BEFORE
THE HON’BLE MOOT COURT
SURESH AGARWAL…………………………………..……APPELANT
VS
GEETHA AGARWAL…..………………………………….RESPONDENT
ON SUBMISSION
OF MEMORIAL ON BEHALF OF RESPONDENT
(GEETA AGARWAL)
Here after RESPONDENT
TABLE OF CONTENT
INDEX OF AUTHORITIES.
o JUDICIAL PRECEDENT…………………………….....Page 6
o BOOKS………………………………………………… Page 9
STATEMENTS OF
FACTS………………………………………………….............Page 11
STATEMENTS OF JURISDICTION………………………………..
……….…….Page 13
STATEMENT OF
ISSUES………………………………………………………....Page 14
SUMMARY OF
ARGUMENTS…………………………………………..……..Page 15
ARGUMENTS ADVANCED……………………………….Page 17
LIST OF ABBREVIATIONS
ABBREVIATION EXPANSION
& And
¶ Paragraph
ABR All India Reports- Bombay High Court Reports
AIR ALL INDIA REPORTE.
AIR All India Reporter
All. Allahabad
Anr. Another
AP Andhra Pradesh
Art. ARTICLE.
Bom. Bombay
Edn. / Ed. Edition
Guj. Gujarat
HC High Court
Hon`ble Honorable
HON’BLE HONORABLE.
I.L.R Indian Law Reporter
Id. Ibid
Ker. Kerela
L.J. Law Journal
Ltd. Limited
Mad. Madras
MP Madhya Pradesh
Mr. Mister
No. NUMBER.
No. Number
Ors. OTHERS.
Ors. Others
Pat. Patna
Pg. Page
Pvt. Private
Re. Reference
SC SUPREME COURT.
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
SC Supreme Court
SCC SUPREME COURT CASES.
SCR Supreme Court Reporter
Sd/ Signed
UOI Union Of India
UP Uttar Pradesh
v./vs. VERSUS.
Vol. Volume
INDEX OF AUTHORITIES
CASE CITATION
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
Guramma v. Mallapa
1964 AIR 510, 1964 SCR
(4) 497
Devulapalli Kameswara Sastri vs. Polavarapu
Veeracharlu (1911) ILR 34 Mad 422
Rani v. Shanta
1971 AIR 1028, 1971 SCR
(2) 603
[i] (1812) 2 SD 42 (52)
[iii](1907)34 IA 107
[ix] 1927 P.C. 37
[xi]http://www.scribd.com/doc/68527077/Alienation-Under-Hindu-Law.
[xii] Supra Note 10
[xv] Ibid.
[xix]http://www.lawyersclubindia.com/articles/Concept-of-Karta-in-Joint-Hindu-
Family-4678.asp#.Ux4svz-SySo.
[xxi]http://www.scribd.com/doc/68527077/Alienation-Under-Hindu-Law.
[xxxvi] 1917 P.C. 41
STATUTES
Hindu Law
Constitutional aspects of Hindu Law
Family Law
JOURNALS REFERRED:-
BOOKS REFFERED
www.westlaw.com
www.manupatra.com
www.indiankanoon.com
www.scconline.com
STATEMENT OF FACTS
After which, Mr.Shyam Agarwal became the Karta of the family. He passed
away in the year 1995 due to ill health.
Thereafter, Mr. Sunil Agarwal became the head of HUF. Whose children
include, Somesh Agarwal, Suresh Agarwal, Sailesh Agarwal and Geetha
Agarwal, grandchildren, Ramesh Agarwal and Ramya Agarwal (predecased
son Somesh Agarwal’s children), Kiran Agarwal. Keerthi Agarwal, Kalyan
Agarwal, Arjun Agarwal.
Sunil Agarwal ran,
(1) Non-Banking Finance Company by name SR Agarwal NBFC Jubilee
Hills, Hyderabad
(2) SR Agarwal Film Studio extending to acres 200, at Madhapur,
Hyderabad
(3) A Farm House of 100 acres at Gandipet, Hyderabad.
Later, Sunil Agarwal alienated 15.00 acres by way of gift in favor of Ramya
and executing 15 acres of farm land by will favor of Ramesh Agarwal.
Sailesh Agarwal married Sanjana, a Neurologist, who set up a nursing home
which had flourishing practice, studied medicine and obtained MD in
Cardiology at the expenses of joint family property.
The fact that Sailesh kept his earnings for himself, after studying with the
expenses of the joint family property, made other family members unhappy.
After Sunil Agarwal’s death in 2005, Suresh Agarwal being elder among
coparceners became the "Karta" of Joint Hindu Family.
Later, he sold 30 acres of farm agricultural land for 50 Crores to one
Mr.Anil Kapoor to renovate film studio at Madhapur. He also mortgaged
shares of S.R. Agarwal NBFC for Rs.5 Crores to the State Bank of
Hyderabad, Baghlingampally Branch, Hyderabad to perform the marriage of
Ramya Agarwal aged 16 years.
Aggrieved by the acts of Suresh Agarwal, GeethaAgarwal filed a Suit before
District Court. The district court dismissed the suit.
Aggrieved by this judgement of the District Court, Mrs. Geetha Agarwal
preferred an Appeal before the Hon'ble High Court. The High Court held
that she could be Karta of Joint Hindu Family as per Hindu Succession
(Amendment) Act, 2005.
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
Kantilal Agarwal
died in1985
Shyam Susheela
died Sunil and Rama died
1995 1998
died 2005
Ramya keerthi
STATEMENT OF JURISDICTION
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
133. Appellate jurisdiction of Supreme Court in appeals from High Courts in regard to civil matters
(1) An appeal shall lie to the Supreme Court from any judgment, decree or final order in a civil proceeding of a High
Court in the territory of India if the High Court certifies under Article 134A(a) that the case involves a substantial
question of law of general importance; and(b) that in the opinion of the High Court the said question needs to be
decided by the Supreme Court(2) Notwithstanding anything in Article 132, any party appealing to the Supreme
Court under clause ( 1 ) may urge as one of the grounds in such appeal that a substantial question of law as to the
interpretation of this Constitution has been wrongly decided(3) Notwithstanding anything in this article, no appeal
shall, unless Parliament by law otherwise provides, lie to the Supreme Court from the judgment, decree or final
order of one Judge of a High Court
ISSUES RAISED
(2) If so, whether she is legally entitled to be the Karta of the HUF after the
enactment of Hindu Succession (Amendment) Act, 2005
(5) Whether the sale of 30 acres of farm agricultural land for Rs.50 crores to
renovate film studio is valid?
SUMMARY OF ARGUMENTS
(2) If so, whether she is legally entitled to be the Karta of the HUF after the
enactment of Hindu Succession (Amendment) Act, 2005?
Firstly, the constitutional provisions eradicate the gender bias. This is
evident as per Article 14, Article 15(2), Article 15(3), Article 16.
Secondly, if a woman has a right to be a coparcener, she also has a right to
be a kartha.
Thirdly, the Hindu Succession (Amendment) Act, 2005 entitles women to
acquire a share in the coparcener peoperty.
Thus, she is legally entitled to be the Karta of the HUF after the enactment
of Hindu Succession (Amendment) Act, 2005
(3) Whether the gift made in favour of Ramya Agarwal is valid?
Firstly, property was alienated in the form of gift from the property of HUF.
Firstly, property was alienated in the form of gift from the property of HUF.
(5) Whether the sale of 30 acres of farm agricultural land for Rs.50 crores to
renovate film studio is valid?
ARGUMENTS
Hence it is clear from the above stated Sec 29A that a woman can be a
Coparcener and has equal rights like a Son in the Property.
Section 6 - Devolution of interest in coparcenary property. —
(1) On and from the commencement of the Hindu Succession (Amendment) Act,
2005*, in a Joint Hindu family governed by the Mitakshara law, the daughter of a
coparcener shall,—
(a) by birth become a coparcener in her own right in the same manner as the son;
(b) have the same rights in the coparcenary property as she would have had if she
had been a son;
(c) be subject to the same liabilities in respect of the said coparcenary property as
that of a son,
and any reference to a Hindu Mitakshara coparcener shall be deemed to include a
reference to a daughter of a coparcener: Provided that nothing contained in this
sub-section shall affect or invalidate any disposition or alienation including any
partition or testamentary disposition of property which had taken place before the
20th day of December, 2004.
(2) Any property to which a female Hindu becomes entitled by virtue of sub-
section (1) shall be held by her with the incidents of coparcenary ownership and
shall be regarded, notwithstanding anything contained in this Act or any other law
for the time being in force in, as property capable of being disposed of by her by
testamentary disposition.
(3) Where a Hindu dies after the commencement of the Hindu Succession
(Amendment) Act, 2005*, his interest in the property of a Joint Hindu family
governed by the Mitakshara law, shall devolve by testamentary or intestate
succession, as the case may be, under this Act and not by survivorship, and the
coparcenary property shall be deemed to have been divided as if a partition had
taken place and,—
(a) the daughter is allotted the same share as is allotted to a son;
(b) the share of the pre-deceased son or a pre-deceased daughter, as they would
have got had they been alive at the time of partition, shall be allotted to the
surviving child of such pre-deceased son or of such pre-deceased daughter; and
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
The most significant amendment made by the Hindu Succession Amendment Act,
(2005) was to make the daughter a coparcener by birth in her own right. The term
Mitakshara Coparcener now includes daughters in it. A daughter now has the same
rights in the Coparcenary property as that of a son and is subject to the same
liabilities as that of a son in respect of the said Coparcenary property. For example
if the coparcenary property is subject to some debts then on partition the female as
a coparcener would also be liable to pay the debts over her share of the property
and thus is subject to the same sets of liabilities as that of a son in respect of the
said property. Also any property which a daughter obtains under the amended
section will be held by her with the incidents of Coparcenary property and she can
dispose it off by the testamentary disposition. This act also abolishes survivorship
and the only modes of devolution now followed are testamentary or intestate
succession. Further in case of notional partition the daughter is allotted the same
share as is allotted to a son. This act also removes the obligation of a son, grandson
or great grandson to pay the debts of his father, grandfather or great grandfather
solely on the ground of his pious obligation thus bringing equality amongst sons
and daughters.
#Indian Constitution
The framers of the Indian Constitution took note of the adverse and discriminatory
position of women in society and took special care to ensure that the State took
positive steps to give her equal status. Articles 14, 15(2) and (3) and 16 of the
Constitution of India, thus not only inhibit discrimination against women but in
appropriate circumstances provide a free hand to the State to provide protective
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
Article 14 -Equality before law The State shall not deny to any person equality before the law or the equal protection
of the laws within the territory of India Prohibition of discrimination on grounds of religion, race, caste, sex or place
of birth
Article 15(2) & (3) Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth
(1) The State shall not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth or
any of them
(2) No citizen shall, on grounds only of religion, race, caste, sex, place of birth or any of them, be subject to any
disability, liability, restriction or condition with regard to
(a) access to shops, public restaurants, hotels and palaces of public entertainment; or
(b) the use of wells, tanks, bathing ghats, roads and places of public resort maintained wholly or partly out of State
funds or dedicated to the use of the general public(3) Nothing in this article shall prevent the State from making any
special provision for women and children
(2) If so, whether she is legally entitled to be the Karta of the HUF after
the enactment of Hindu Succession (Amendment) Act, 2005
Only a coparcener can be a Karta.
# Making her the Karta would make her position more respectable:
Despite the Constitution guaranteeing equality to women, there are still many
discriminatory aspects in the Hindu law in the sphere of property rights. In our
society maltreatment of a woman in her husband's family, e.g. for failing to
respond to a demand of dowry, often results in her death. But the tragedy is that
there is discriminatory treatment given to her even by the members of her own
natal family. Thus, if she is made the Karta of the family, then all the members of
the family will respect her because of her position and women abuse will be
controlled. This will enhance her self-confidence and social worth and give her
greater bargaining power for herself and her children, in both parental and marital
families.
# After The Hindu Succession Amendment Act, 2005 women are recognized
as coparceners:
In the Hindu system, ancestral property has traditionally been held by a joint Hindu
family consisting of male coparceners. Coparcenary as seen and discussed earlier
in the present work is a narrower body of persons within a joint family and consists
of father, son, son's son and son's son's son. A coparcenary can also be of a
grandfather and a grandson, or of brothers,or an uncle and nephew and so on. Thus
ancestral property continues to be governed by a wholly partrilineal regime,
wherein property descends only through the male line as only the male members of
a joint Hindu family have an interest by birth in the joint or coparcenary property.
Since a woman could not be a coparcener, she was not entitled to a share in the
ancestral property by birth. A son's share in the property in case the father dies
intestate would be in addition to the share he has on birth. But after the amendment
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
daughters have from birth coparcenary rights. So they can be kartas as they are
now recognized as coparcenors.
Till 2005, daughters were not coparceners of their father’s family (unlike sons,
who became coparceners on birth), but were only members of the family on birth,
and ceased to be members of their father’s family on their marriag
In a recent decision, a daughter claimed a share in her father’s family, where her
father had passed away in 1988, on the basis of the 2005 amendment. The Supreme
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
Court held that she was not entitled to a share since her father had passed away
prior to the amendment coming into effect. The Supreme Court clarified that it was
not necessary that the daughter had to be born after the amendment, to claim the
benefit of the amendment. It also held that the rights under the amendment applied
to a living daughter of a living coparcener as on 9 September 2005. According to
the court, the rights which had already crystallised by operation of law prior to 20
December 2004 did not get disturbed by the amendment. This was evident from
the clause in the amendment providing that partitions that have taken place before
20 December 2004 would remain unaffected by the amendment.
Therefore, it is now clear that the date of birth of the daughter, or the date of her
marriage (whether before or after the amendment) are immaterial. What is relevant
is that both the daughter and the father had to be alive on the date of the
amendment for the daughter to get the benefit, irrespective of whether she was
married or not on that date. If the father had passed away earlier, she was not a
daughter as envisaged by the amendment. Similarly, if the daughter had passed
away prior to the amendment, she was not a daughter on the date of the
amendment, and, therefore, her legal heirs would not get the benefit of the
amendment.
The issue as to whether a daughter can become the karta of an HUF has recently
been decided by the Delhi High Court. In this case, the granddaughter, whose
father passed away in 1983, claimed to be the karta of her grandfather’s HUF after
the death of her paternal uncle. Her cousin, who was the eldest grandson, but
younger to her, was functioning as the karta, which she claimed was incorrect. The
court held in her favour, on the ground that since she was now a coparcener, as the
eldest coparcener, she was entitled to become the karta of the HUF.
Hence it is clear from the above made arguments that a woman has equal right to
be a Karta.
The burden of proof is on the alienee to prove that it was for a valid purpose. It has
been laid down that in case the alienation is made by the father for the payment of
his debts, then the burden of proof is on the alienation to prove that he had taken
sufficient care to determine that it was for the payment of debt. The sons can rebut
this assumption only by proving that the debt was Avyavharik i.e. immoral, in such
a case the burden of proof that the debt was tainted is on the son.
Power of Alienation -Neither the karta or any other co-parcener has the right to
alienate the joint property of the family but in exceptional situations wherein the
alienation becomes binding upon all the members of the family. The
Dharmashastra recognizes this power of the karta to alienate the property but under
some specific situations only. They have been stated below:
The term legal necessity does not hold any precise definition due to the varied no.
of cases that are seen and it being extremely difficult to explain it in exact terms.
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
Still, under interpretation it can be stated that the legal necessity of a family is with
regard to the necessities of a family and the alienation being in requirement of that
need.
Estate’s benefit
This is also a broad criterion for the alienation to take place. In it, the benefits
which the estate gains through any such specified alienation by the Karta is to be
considered as valid. Such beneficial contracts of property alienation are
encouraged and the karta does hold the right to go forward under his prudent
discretion.
Broadly speaking, benefit of estate means anything, which is done for the benefit
of the joint family property. There are two views as to it. One view is that only
construction, which is of defensive character, can be a benefit of estate. This view
seems to be no longer valid. The other view is that anything done which is of
positive benefit, will amount to benefit of estate. The test is that anything which a
prudent person can do in respect of his own property. It was re-iterated through
various case laws[6] that if the property owned by the specific joint family is sold
by the karta due to a valid legal necessity and also that the price in return was also
reasonable, just the fact that a portion of the price was not considered to have been
not applied for the purpose of necessity, cannot render the whole mechanism
invalid.
Considering a limitation in the matter, through this paper, it has been analyzed that
even though the Karta holds supreme managerial and alienation powers in the
family but if he gets into a contract where it is apparent that the family cannot
complete its obligations in monetary terms, the liability cannot be shifted to
ancestral property sale.[7] Nevertheless, if there is an acquisition made by the
Karta on behalf of the joint family even through the loss of a portion of an
ancestral property, it is binding upon the minor members of the family too and they
cannot impeach this contract for which the benefit has been enjoyed, upon
attaining majority.[8]
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
Also, it is a cardinal rule that the actions of the karta have to be justified with the
clause of necessity or benefit to the family for these members to be bound by the
actions of the Karta. Such alienation cannot be considered to be for the purpose of
a legal necessity “if the legal remedy to recover the debt has become time-
barred.” He can alienate the property with his own discretion due to some
necessity or through the normal process of having a totality in family assent
towards such alienation.
Thus, it can be safely concluded through the research that Karta can only have one
specified limitation which is that:
“A karta must act with prudence; prudence implies caution as well as foresight
and excludes hasty, reckless and arbitrary conduct and such alienation on part of
the karta without the family purpose or necessity clause, is void”[9]
In kanna Gounder v arjuna gounder,[10] the court held that the prohibition against
making the gifts by coparcener of his undivided interest in the coparcenery
property continues even after the enactment of Hindu succession Act . where a
coparcener made a gift from joint family property without obtaining the consent of
other coparceners, the gift becomes invalid.
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
[6] AIR 1941 ALL 174: 1941 ALJ 129: 1941 AWR (HC) 70
If the karta alienates property with out any legal necessity or for the benefit of the
family then such alienation is impeachable by the sons but it may bind the sons
under the doctrine of pious obligation if such alienation is made for payment of
antecedent untained debts.
The debate was put to rest by the Supreme Court in the case of R. Raghubanshi
Narain Singh vs. Ambica Prasad[13], where it was held that alienation made
without legal necessity is not void but merely voidable.
LEGAL NECESSITY
Broadly speaking, legal necessity will include all those things which are deemed
necessary for the members of the family. The term ‘Apatkale’ under
Vijnaneshwara may indicate that joint family property can be alienated only in
time of distress such as famine, epidemic, etc. and not otherwise, however, it has
been recognized under the modern law that necessity may extend beyond that. In
Devulapalli Kameswara Sastri vs. Polavarapu Veeracharlu[14], it was held that
necessity should not be understood in the sense of what is absolutely indispensable
but what according to the notions of the joint Hindu family would be regarded as
proper and reasonable[15]. Thus, Legal Necessity doesn’t mean actual compulsion;
it means pressure upon estate which may in law may be regarded as serious and
sufficient. If it is shown that family’s need was for a particular thing and if
property was alienated for the satisfaction of that particular need, then it is enough
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
proof that there was a legal necessity. The following have been held to be family
necessities.
Maintenance of all the members of the Joint Hindu family, expenses for
medical care for the members.
Payment of government revenue and government taxes and duties like
income tax.
Payment of debts incurred for family necessity or family business or decretal
debts
Performance of necessary ceremonies, sradhs and upanyana.
Marriage expenses of male coparceners, and of the daughters of coparceners.
Payment of debts incurred for family business or other necessary purpose.
Costs incurred for the defense of the head of the joint family or any other
member involved in a serious criminal charge.
[15] Manupatra
PARTIAL NECESSITY
In Krishandas vs. Nathuram[16], Privy council held that where the necessity is
only partial, i.e., where the money required to meet the necessity is less than the
amount raised by alienation, in such a case, the sale will be valid only where the
purchaser acts in good faith and after due inquiry and is able to show that the sale
itself is justified by legal necessity.
In the instant case, alienation was for Rs. 3500, and the alienee was able to prove
the legal necessity for Rs.3000, the alienation was held valid.
1. If the alienation is made only for partial necessity, it may be set aside.
2. If alienation is only a device for distinguishing a gift, the other coparceners
don’t lose interest in the property or survivorship rights.
Finally, it was laid down in the case of Sunil Kumar vs. Ram Prakash[18] that a
coparcener cannot ask for an injunction against alienation on the ground that it is
not for legal necessity.
(5) Whether the sale of 30 acres of farm agricultural land for Rs.50 crores to
renovate film studio is valid?
No the sale of the farm agricultural land for Rs.50Crs to renovate film studio is
invalid:-
As Firstly the property being HUF property the Karta has to take the consent of
the family as it is undivided interest of all the coparceners equally according to Sec
6 of Hindu Succession Act (2005 Amended).
Secondly assuming the sale to be valid:
Karta is accountable to the family members and the coparceners as it’s the dutiy of
a karta to provide the details of the transactions made in the interest of the HUF.
Thirdly, Is there a legal necessity to sale agricultural land for renovation of the
Studio?
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
The Validity of the sale is questionable as every coparcener has a right to know
their interest in the HUF Property
The power of alienation of the karta of a joint family is governed by the rule laid
down by the privy council in Hanooman Persaud’s[19] case , so alienation would
be justified if there is legal necessity. Payment of government revenue, maintence
of coparceners,marriage expenses of coparceners and their children payment of
debts binding on the family are instances of legal necessity.
the alienation of joint family property No, according to Andhra Pradesh Highcourt.
[21]
Alination on that ground cannot be regarded as lawful alienation binding upon the
minors and was void.Expenses incurred in connection with the marriage of a child
do not constitute legal necessity. “Antecedent debt” means antecedent in fact as
well as in time, that is to say , that debt much be truly independence of and not part
of the transaction impreached.A borrowing made on the occasion of the grant of a
mortgage is not an antecedent debt.
[19] 6 MIA 393
Yes Income of Sailesh Agarwal has to be included in the HUF as it is specified and
clear from the facts that he studied with the help of the familys money.
Coparcenary property
Sri.G.VENKATSWAMY MEMORIAL MOOT COURT COMPETITION -2016
Property inherited by a person from his father,or father’s father or father’s father’s
father’s or property his own son,son’s son’s or son’s son’s son’s acquires an
interest by birth as coparcenary rights.It is, Therefore, coparcenary property.An
accretion to this property, such as purchases made with income of the coparcenary
property is also coparcenary property.
(c)joint acquisition of the coparceners and there is no proof of intention on the part
of the coparceners that such property should not be treated as joint property and
(d) separate property of the coparceners thrown into the commom stock.
Hence until when an undivided interest - Sailesh Agarwal has to contribute to the
family.
Wherefore, in the light of the authorities cited, issue raised and arguments
advanced, it is most humbly pleaded before the Hon’ble court that it may adjudge
and declare:
> The Gift and Will made by Sunil Agarwal made in favour of Ramya,Ramesh
Agarawal respectively?
> Sale of 30 acres of farm agricultural land for Rs.50 crores to renovate film
studio?
To issue any other further order as the court may deem fit in interest of
justice, equity good conscience and fair play.