K K UNNI NAYAR Vs. UNION OF INDIA

JUDGEMENT

(1.) The first petitioner is the Receiver appointed by the Sub Court, Ottappalam, in O. S. No. 65 of 1956 on the file of that Court, in respect of the sthanam properties of the Mannarghat Moopil Nayar. Subsequent to the filing of the O. P. there was a change in the personnel of the Receiver, and the present Receiver by C. M. P. No. 5086 of 1964, has petitioned this Court to be impleaded as supplemental second petitioner in the O. P. The said C. M. P. has to be allowed and I do so.

(2.) By this O. P. the Receiver abovenamed seeks to quash the notices evidenced by Exts. D & E by which the Estate Duty payable in respect of the estate of late Sri. Manarghat T. Moopil Nayar was determined (provisionally) at Rs. 37,196.71 under S.57 of the Estate Duty Act, XXXIV of 1953. There is a further prayer for a writ of prohibition restraining the respondent, the Assistant Controller of Estate Duty, from taking any action or initiating any proceedings to enforce the demand made by the notices evidenced by Exts. D & E.

(3.) The Mannarghat Moopil Nayar in respect of whose estate the impugned proceedings have been taken, died on 3-1-1960, after the passing of the Hindu Succession Act, 30 of 1956. The petitioner's case is, that by reason of S.7(3) of the Hindu Succession Act, 30 of 1956, there was a statutory disruption of the sthanam properties immediately before the death of the sthanamdar, and a devolution of the same upon the members of the family of the sthanamdar and his heirs. Therefore, according to the petitioner, the respondent had no jurisdiction to assess the entire estate of the late Moopil Nayar, but could at best assess only the share of the sthani that got statutorily fractioned under S.7(3) of the Hindu Succession Act and passed on his death to his heirs. In reply to the notice evidenced by Ext. A, issued by the respondent the petitioner submitted his return along with a covering letter evidenced by Ext. C. In Para.11 thereof the petitioner had stated his contention that in view of the S.7(3) of the Hindu Succession Act, no estate duty would be leviable.