Case: Controller of Estate-Duty, Bihar Vs. Mahant Umesh Narain Puri

or character thereof. It may, in this connection, be noted that it is not known under what circumstances any of the properties came to be disposed of by the deceased Mahant. There is no sale deed on record and no sale deed was made available to the High Court or to this court. The true nature and the character of the properties have to be determined on a proper interpretation of the Firman. In our opinion, the High Court in the instant case has correctly come to the conclusion that the properties belonged to the Math and are trust properties, relying on the Firman and the judgment of the district judge in the civil suitThe next contention urged by Mr. Manchanda is that even assuming that the properties were trust properties, the deceased had a beneficial life interest in the properties and the beneficial interest of the deceased Mahant must be deemed to have passed on to the next disciple or issue or Farzand by virtue of the provisions contained in s. 7 of the Act12. This argument has no merit. Section 6 and s. 7 of the Act are in the following terms" 6. Property which the deceased was at the time of his death competent to dispose of shall be deemed to pass on his death7. (1) Subject to the provisions of this section, property in which the deceased or any other person had an interest ceasing on the death of the deceased shall be deemed to pass on the deceases eat to the extent to which a benefit accrues or arises by the cesser of such interest, including, in particular, a coparcenary interest in the joint family property of a Hindu family governed by the Mitakshara, Marumakkattayam or Aliyasantana law(2) If a member of a Hindu coparcenary governed by the Mitakshara School of Law dies, then the provisions of sub-section (1) shall apply with respect to the interest of the deceased in the coparcenary property only(a) if the deceased had completed his eighteenth year at the time of his death, or(b) where he had not completed his eighteenth year at the time of his death, if his father or other male ascendant in the male line was not coparcener of the same family at the time of his deathExplanation.-Where the deceased was also a member of a sub-coparcenary (within the coparcenary) possessing separate property of its own, the provisions of this sub-section shall have effect separately in respect of the coparcenary and the sub-coparcenary(3) If a member of any tarwad or tavazhi , governed by the Marumakkattayam rule of inheritance or a member of a kutumba or kavaru governed by the Aliyasantana rule of inheritance dies, then the provisions of sub-section (1) shall not apply with respect to the interest of the deceased in the property of the tarwad, tavazhi, kutumba or kavaru, as the case may be, unless the deceased had completed his eighteenth year(4) The provisions of sub-section (1) shall not apply to the property in which the deceased or any other person had an interest only as a holder of an office or recipient of the benefits of a charity, or as a corporation soleExplanation.-For the removal of doubts, it is hereby declared that the holder of a Sthanam is neither the holder of an office nor a corporation sole within the meaning of this sub-section."13. On a consideration of the facts and circumstances of this case including the Firman and the judgment of the district judge, the High Court has correctly come to the conclusion that the Mahant had no property which he was competent to dispose of and the only interest the Mahant had was common enjoyment of the trust properties of the Math, with the disciples of the Math. The deceased Mahant had no particular or specific beneficial interest in the property and no benefit would accrue or arise to any one by the cesser of the interest of common enjoyment of the property by the deceased Mahant to any other person, as the deceased Mahant had no property at the time of his death which he was competent to dispose of and no benefit accrued or arose to the Mahant who came to be elected as Mahant according to custom on the demise of the Mahant or to any other disciple of the Math on the death of the Mahant. No interest, therefore, could be deemed to have passed on the death of the Mahant14. Section 2(16) of the Act provides" Property passing on the death includes property passing either immediately on the death or after any interval, either certainly or contingently, and either originally or by way of substitutive limitation, and on the death includes at a period ascertainable only by reference to the death"15. In the instant case, the interest of the Mahant who is elected to be the incharge of the property and who is in enjoyment of the property in common with the disciples of the Math comes to an end on his death and his interest of enjoyment in common with other disciples, whatever may be the nature of such interest, does not pass at any point of time to any other person, After the death of the Mahant duly elected, the right to be the in-charge of the property vests in the person who is thereafter elected as Mahant and the right of the deceased Mahant to enjoy the property in common with the other disciples of the Math completely ceases and does not pass to anybody else. In the instant case, therefore, no interest of the Mahant passes to anybody else and the provisions of the Act are, therefore, not attractedWe are, therefore, of the opinion that the High Court in the instant case was right in its answer to the question referred to it. The appeal against the judgment in the Tax Reference, therefore, fails. The appeal from the orders in the writ petition, therefore, necessarily fails. The appeals are hereby dismissed.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]We are not impressed by this argument of the learned counsel. It is true that in the absence of a specific question raised with regard to the correctness of any finding of fact, the High Court in a reference is not to interfere with the finding of fact by the Tribunal and the High Court has to proceed to answer the question on the facts found by the Tribunal. The finding of the CBR in the instant case that the properties are the personal properties of the deceased Mahant cannot, in the facts and circumstances of this case, be considered to be a finding of fact. The CBR in coming to its conclusion that the properties were the personal properties of the deceased Mahant had considered the nature of the grant by the Firman and also the judgment of the district judge in the title suit. The conclusion of the Board of Revenue that the properties are the personal properties of the Mahant on an interpretation of the grant and on a consideration of the judgment of the district judge is not a pure finding of fact. Any conclusion as to the true character or nature of the properties on the interpretation of the Firman and on taking into consideration the judgment of the district judge in the title suit is a finding on a mixed question of law and fact. The mere fact that the deceased Mahant had disposed of some of the properties does not in any way materially affect the question of consideration of the true nature and character of the properties and does not, in any way, affect the true nature or character thereof. It may, in this connection, be noted that it is not known under what circumstances any of the properties came to be disposed of by the deceased Mahant. There is no sale deed on record and no sale deed was made available to the High Court or to this court. The true nature and the character of the properties have to be determined on a proper interpretation of the Firman. In our opinion, the High Court in the instant case has correctly come to the conclusion that the properties belonged to the Math and are trust properties, relying on the Firman and the judgment of the district judge in the civil suitThe next contention urged by Mr. Manchanda is that even assuming that the properties were trust properties, the deceased had a beneficial life interest in the properties and the beneficial interest of the deceased Mahant must be deemed to have passed on to the next disciple or issue or Farzand by virtue of the provisions contained in s. 7 of theOn a consideration of the facts and circumstances of this case including the Firman and the judgment of the district judge, the High Court has correctly come to the conclusion that the Mahant had no property which he was competent to dispose of and the only interest the Mahant had was common enjoyment of the trust properties of the Math, with the disciples of the Math. The deceased Mahant had no particular or specific beneficial interest in the property and no benefit would accrue or arise to any one by the cesser of the interest of common enjoyment of the property by the deceased Mahant to any other person, as the deceased Mahant had no property at the time of his death which he was competent to dispose of and no benefit accrued or arose to the Mahant who came to be elected as Mahant according to custom on the demise of the Mahant or to any other disciple of the Math on the death of the Mahant. No interest, therefore, could be deemed to have passed on the death of the Mahant14. Section 2(16) of the Act provides" Property passing on the death includes property passing either immediately on the death or after any interval, either certainly or contingently, and either originally or by way of substitutive limitation, and on the death includes at a period ascertainable only by reference to the death"15. In the instant case, the interest of the Mahant who is elected to be the incharge of the property and who is in enjoyment of the property in common with the disciples of the Math comes to an end on his death and his interest of enjoyment in common with other disciples, whatever may be the nature of such interest, does not pass at any point of time to any other person, After the death of the Mahant duly elected, the right to be theincharge of the propertyvests in the person who is thereafter elected as Mahant and the right of the deceased Mahant to enjoy the property in common with the other disciples of the Math completely ceases and does not pass to anybody else. In the instant case, therefore, no interest of the Mahant passes to anybody else and the provisions of the Act are, therefore, not attractedWe are, therefore, of the opinion that the High Court in the instant case was right in its answer to the question referred to it. The appeal against the judgment in the Tax Reference, therefore, fails. The appeal from the orders in the writ petition, therefore, necessarily fails. The appeals are hereby dismissed.