1955 (8) TMI 48 - HC - Income Tax

High Court Upholds Burden of Proof in Mortgage Dispute

Nagayya Gowdu Versus K. Chenganna Gowdu and Ors.

The High Court affirmed the District Judge's decision, stating that the burden of proof regarding the nominal nature of the mortgage deed and lack of ... - Issues Involved:1. Burden of Proof regarding the Nominal Nature of Mortgage Deed2. Consideration for Mortgage Deed3. Legal Necessity and Antecedent Debt in Hindu Law4. Sufficiency of Recitals as Evidence5. Onus of Proof in Cases of Alienation by Hindu FatherIssue-wise Detailed Analysis:1. Burden of Proof regarding the Nominal Nature of Mortgage Deed:The Plaintiff, the only son of the 1st Defendant, filed a suit for partition and separate possession of a half share, challenging the alienation of joint family properties by the 1st Defendant. The Plaintiff contended that the mortgage deed dated 9-12-1927 and the sale deed dated 19-6-1933 were nominal and executed to benefit the mother of Defendants 2 and 3. The District Munsif held that the onus of proving the nominal nature of the alienations lay upon the Plaintiff. However, on appeal, the District Judge reversed this finding, stating that the Plaintiff had not discharged the burden of proof.2. Consideration for Mortgage Deed:The Plaintiff argued that the consideration for the mortgage deed was not made out, and the transactions were make-believe. The District Munsif accepted the Plaintiff's evidence and found the mortgage and sale to be nominal. However, the District Judge did not address the material questions regarding the sufficiency of means of Gangulamma (the mortgagee), the relationship between Veeramma and the 1st Defendant, and the timing of the mortgage deed. The High Court noted the need for a fresh finding on these questions and called for an authoritative ruling on the burden of proof regarding the consideration for the mortgage deed.3. Legal Necessity and Antecedent Debt in Hindu Law:The High Court discussed the legal principles governing the burden of proof in cases where a Hindu father's alienation is challenged by his son. The Court referred to the Privy Council decision in Bhagawan Singh v. Bishambhar Nuth, which held that the onus of proving consideration for a mortgage lies on the Defendants. The Court also considered the views of Abdur Rahman, J., and Somayya, J., who held that the mortgagee must establish that the mortgage was executed for legal necessity or payment of an antecedent debt.4. Sufficiency of Recitals as Evidence:The High Court examined the sufficiency of recitals in a mortgage deed as evidence of consideration. It was noted that a recital acknowledging the receipt of consideration is admissible in evidence, but its weight depends on the circumstances of each case. The Court emphasized that the burden of proof on the pleadings never shifts, while the burden of adducing evidence shifts during the trial. The Court concluded that there is no special rule of onus in such cases and that the recitals in a document can be prima facie proof of the receipt of consideration.5. Onus of Proof in Cases of Alienation by Hindu Father:The High Court clarified that the onus of proving the nominal nature of a mortgage or the lack of consideration lies on the party challenging the transaction. The Court referred to the decision in Chidainbaramma v. Hussainamma, which held that the onus of proving that a sale was nominal or without consideration lies upon the Plaintiff, while the onus of proving that it was binding on the reversion lies on the alienee. The Court also discussed the distinction between the burden of proof on the pleadings and the burden of adducing evidence.Judgment of the Bench:The Bench affirmed the decision of the learned District Judge, holding that the burden lay upon the Plaintiff to establish that the recitals in the mortgage-bond executed six years before the actual alienation and twenty years before the date it was attacked were false. The Bench concluded that the Plaintiff had not discharged this burden, especially in the absence of their father from the witness-box. Consequently, the appeal was dismissed with costs.