MADANJI DEVCHAND Vs. TRIBHOWAN VIRCHAND

JUDGEMENT

(1.) The plaintiffs as heirs of Ruttonji Shamji prayed for a declaration that two shares in the Manockji Petit Spinning and Weaving Company and four shares in the Bank of Bombay standing in the name of the 1st and 2nd defendants belonged to and formed part of the estate of Ruttonji Shamji and that the plaintiffs and the 5th defendant (and two other defendants now deceased) were the absolute owners thereof and of all dividends accrued due thereon and for consequential relief by transfer of the shares and payment of the dividends.

(2.) Ruttonji Shamji was a Dassa Shrimali Bania of the Jain religion domiciled at Mangrole in Kathiawar who died without issue and possessed of considerable property on the 18th of November 1892 leaving two widows Monghibai and Nandoobai. Monghibai died on the 16th of August 1893 leaving a will whereof she appointed executors. After her death litigation was commenced by the executors claiming from Nandoobai part of the property left by Ruttonji Shamji as belonging to Monghibai s estate. Eventually a settlement was arrived at whereby Nandoobai agreed to pay to Monghibai s executors the sum of Rs. 10,251 in respect of the share of Monghibai in Ruttonji s estate in three installments. For the purpose of paying the last installment Nandoobai who resided at Mangrole appointed her brother Tribhowan, the 1st defendant, her attorney to obtain from the High Court in Bombay Letters of Administration to the estate of Ruttonji to enable him to raise money upon mortgage of four shares in the Bank of Bombay standing in Ruttonji s name. Letters of Administration were obtained by Tribhowan accordingly and the four shares were transferred by him by way of mortgage to Premcorebai, the wife of Morarji Jootha, as security for a loan of Rs. 4000.

(3.) Shortly before her death which occurred on the 14th of December 1902, Nandoobai made a gift of two shares in the Manockji Petit Co. standing in Ruttonji s name to her brothers the 1st and 2nd defendants and the same were duly transferred to their names in the books of the Company. A little later she arranged for the payment of the debt secured by the Bank of Bombay shares. Three of the shares were sold and the proceeds paid to the mortgagee and the certificate for the remaining share was handed back to an agent of Tribhowan, the 1st defendant, on payment of a small balance which still remained due. Nandoobai had given instructions to Tribhowan to get the remaining share transferred into the name of her two sister s sons for their benefit. The intended beneficiaries were, however, minors and although Premcorebai executed a transfer form in their favour on the 1st of December 1902 it was found that the Bank would not accept it for registration on account of the incompetence of the transferees. To get over the difficulty Nandoobai then directed that the share should be transferred to the names of the 1st and 2nd defendants on behalf of the minors.