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by Admin
05 December 2025 12:07 PM
“A release by a coparcener for consideration operates immediately to divest his coparcenary interest; it does not depend on further act of implementation” – Apex Court Upholds Collateral Use of Family Arrangement to Establish Disruption and Separate Enjoyment
In a significant ruling that redefines how courts should approach family partition disputes, the Supreme Court of India on 6 November 2025 delivered a detailed judgment in P. Anjanappa (D) by LRs v. A.P. Nanjundappa & Others (Civil Appeal No. 3934 of 2006), setting aside the concurrent findings of both the Trial Court and the Karnataka High Court. The apex court declared that registered release deeds executed by two sons in a Hindu joint family were valid, binding, and effective, and an unregistered palupatti recording a family arrangement was admissible for proving severance of joint status, thereby altering the landscape of partition litigation under Hindu law.
"A Registered Release Once Executed and Admitted in Evidence Creates a Legal Estoppel – It Cannot Be Dismissed for Want of Being 'Acted Upon'"
The Supreme Court began its opinion with a clear rejection of the lower courts' reasoning that the registered release deeds dated 09.11.1956 and 14.09.1967 were ineffective merely because they were not "acted upon". Justice Vikram Nath, writing for the Bench, observed:
"A release by a coparcener for consideration operates immediately to divest his subsisting coparcenary interest; it does not depend for its efficacy on any further act of implementation."
The Court held that once a release deed is registered, proved on record, and unrebutted, it is not open for courts to disregard its legal consequences by inventing additional requirements. Citing Prem Singh v. Birbal, the judgment reiterated:
"There is a presumption that a registered document is validly executed. The onus of proof lies on the person who alleges otherwise."
In this case, plaintiff no. 2 and defendant no. 3 had each executed a registered deed relinquishing their coparcenary rights in favour of the joint family, and neither had seriously disputed their execution. The Court noted:
"Silence in a later document or lack of further implementation does not undo a concluded and registered relinquishment inter partes, particularly when it stands unchallenged in cross-examination."
"Estoppel Binds Heirs Who Execute Registered Releases and Then Claim Share Later" – Court Applies Doctrines of Estoppel and Equity
The Court went further to hold that even if the releases did not technically transfer title at the time due to the heirs being "expectant", their conduct, consideration received, and subsequent silence created an equitable estoppel. Citing Elumalai v. M. Kamala, the Bench observed:
"An equitable estoppel operates, if its elements are established, as a rule of evidence preventing the assertion of rights which may otherwise exist."
This doctrine prevented both plaintiff no. 2 and defendant no. 3 from turning back decades later and claiming shares they had unequivocally given up.
"Unregistered Family Arrangement (Palupatti) is Admissible to Prove Disruption of Joint Status and Separate Possession"
Turning to the controversial palupatti dated 11.02.1972, the Court held it admissible for collateral purposes, especially to prove that the joint family had already been disrupted, and plaintiff no. 1 and defendant no. 5 were in separate possession of the respective properties ever since.
Rejecting the High Court's view that the document was inadmissible due to lack of registration, the Supreme Court clarified:
"An unregistered document can be used to prove a family arrangement and conduct consistent with partition – registration is not necessary when it is not relied upon to transfer title."
Referring to Thulasidhara v. Narayanappa and Kale v. Director of Consolidation, the Court underscored that family arrangements do not require registration when relied upon to demonstrate past conduct or partition in fact, not to claim title directly.
The Court noted that the revenue records, separate cultivation, separate cooking, and independent transactions by the parties after 1972 were all consistent with the palupatti and proved beyond doubt that the joint family had been disrupted.
"Coparcenary Was Restricted to Plaintiff No. 1 and Defendant No. 5 as of 1969 – Other Brothers Had Already Released Their Rights"
The Court then applied Section 6 of the Hindu Succession Act, 1956, as it stood prior to the 2005 amendment, to determine the shares. Since plaintiff no. 2 and defendant no. 3 had validly severed ties through registered releases, only plaintiff no. 1 and defendant no. 5 were held to be surviving coparceners at the time of their father’s death in 1969.
The judgment held:
"On the death of the propositus in 1969, the subsisting coparcenary comprised only plaintiff no. 1 and defendant no. 5."
Accordingly, the Court restructured the entire computation of shares in the partitionable estate and excluded the released brothers from claiming any portion of the ancestral property.
"Schedule B Property and Rental Income Not Part of Family Hotchpot – Held Jointly by Defendant Nos. 5 and 6"
Regarding the Schedule B properties and rents under item 17 of Schedule C, the Court found that these were purchased in 1974, after the joint family had already been disrupted by the palupatti. These were jointly acquired by defendant no. 5 and defendant no. 6, and not liable to partition.
The Court observed:
"Properties acquired after 11.02.1972 do not form accretions to a subsisting coparcenary and fall to the acquirer’s separate estate, subject to any proven joint purchase."
Accordingly, defendant nos. 5 and 6 were each granted a half share in these properties, and the daughters were held to have no coparcenary interest therein, since the disruption occurred long before the 2005 amendment.
"Fresh Preliminary Decree Passed – Trial Court and High Court Erred in Law and Evidence"
The Supreme Court set aside both the judgment of the Karnataka High Court dated 30.08.2005 and the preliminary decree of the Trial Court dated 19.08.1994, holding that the findings were legally unsustainable.
The Court passed a fresh preliminary decree, declaring:
"Ex.D-15 and Ex.D-16 are declared valid and binding releases. Ex.D-17 read with Ex.D-17(a) is held admissible for the collateral purposes of establishing severance of joint status with effect from 11.02.1972."
Shares in the partitionable estate (Schedule A and items 1–16 of Schedule C) were recomputed as follows:
Plaintiff no. 1 = 8/21
Defendant no. 5 = 8/21
Each daughter’s branch = 1/21
Predeceased daughter’s 1/21 to defendant no. 2
Plaintiff no. 2 and defendant no. 3 = no share
The Court ordered that a final decree be drawn by the Trial Court, demarcating the shares accordingly and preserving the equal moieties of defendant nos. 5 and 6 in Schedule B and item 17 of Schedule C.
"Family Settlements Must Be Upheld Where Conduct and Revenue Records Corroborate Disruption – Courts Should Avoid Hyper-Technical Rejections"
In closing, the Court sent a strong message to subordinate courts to adopt a more practical and equitable approach in dealing with family partitions, especially where old documents and longstanding conduct establish the parties’ intentions.
The judgment concluded:
"The long and consistent course of conduct that followed confirms the reality of disruption on 11.02.1972. The insistence on division by metes and bounds misdirects the inquiry when parties have already lived, cultivated, and transacted separately for decades."
This ruling will undoubtedly have significant ramifications in future partition litigation, especially involving registered release deeds, unregistered family arrangements, and pre-2005 Hindu Succession claims.
Date of Decision: 06 November 2025