THAKUR GAJENDRA SHAH Vs. THAKUR SHANKAR BAKHAH SINGH

JUDGEMENT

(1.) On 8 April 1923, Harihar Bakhsh Singh, an infant two years of age died in right of a taluqdari estate known as Haluapur in the District of Sitapur, Oudh, and certain other real and personal property. Disputes arose as to the succession between Shankar Bakhsh Singh, the nearest male agnate of the deceased, and Raj Kuar, the deceased's paternal grandmother. These disputes were settled on terms embodied in a deed of arrangement between them, dated 6 March 1925. The question which their Lordships have to determine in the present appeal arises on the interpretation of this deed of arrangement. Under the settlement, as set forth in the deed, Raj Kuar was constituted the tenant for life of the villages owned by the deceased (with certain exceptions immaterial for the present purpose) and was expressly precluded from burdening or transferring them. On her death, the villages life-rented by Raj Kuar were to become the property of Shankar Bakhsh Singh (again with certain immaterial exceptions). Under para. 6 of the deed, the moveable property left by the deceased was to remain in the possession of Raj Kuar with power "to make any sort of transfer". Para. 7 dealt with "several mortgage deeds without possession" standing in the names of previous owners of the estate; as to these, Raj Kuar was empowered to utilize or spend the principal and interest "in any way she likes". Then followed para. 8 which has given rise to the present controversy. It is thus expressed :

(2.) That there are several properties also which stand mortgaged with possession to the estate regarding which it has been settled that if the mortgagors get these properties redeemed from Mt. Raj Kuar or the said Thakurain Sahiba realizes the amount due under them by means of a suit, then she will have the same powers as regards that money and the interest thereon as have been laid down in para. 7, but Mt. Raj Kuar shall have no power to transfer these mortgagee rights.

(3.) Under para. 9 it is provided that Shankar Bakhah Singh shall be entitled to and enter in possession of the entire property mentioned in paras. 6 to 8 which will be left at the time of Mt. Raj Kuar's death. The mortgages referred to in para. 8 fall into three groups. The total amount of principal thereby secured was about Rs. 21,000, and the security subjects consisted of shares in certain villages of which the remaining shares formed part of the deceased's estate. These mortgages had been outstanding for many years and the rents and profits of the mortgaged subjects had been enjoyed by the mortgagees. At the time of the transactions about to be narrated, the interest at compound rates had accumulated to an almost fabulous amount, the sum outstanding in the case of one of the mortgages being about three and a half crores. The equity of redemption of all the mortgaged properties was in Sumer Singh.