VITHAL DAS versus RUPCHAND & ORS.

VITHAL DAS versus RUPCHAND & ORS.

Interest is only payable to the plaintiffs at 6% per annum from the date of the final decree, not for periods prior to suit, as there is no agreement, statutory provision, or breach of trust by co-owner liable under Trusts Act; a co-owner collecting rent does not become trustee unless advantage in derogation is shown.

Parties
Appellant: Vithal Das; Respondent: Rup Chand; Respondent: Hukam Chand
Jurisdiction
India
Judgment Date
07 April 1966
Procedural Posture
Civil Appeals Nos. 926 and 927 of 1965 / Final Supreme Court Appeal, Judgment Rendered
Outcome
Appeals allowed in part, decree of High Court modified as indicated.
Legal Topics
Interest Under Trusts Act, Interest Prior to Suit Under Interest Act, Co Owner Liability for Rental Income, Partition, Constructive Trusts
Trusts Partnership Civil Procedure Interest Under Trusts Act Interest Prior to Suit Under Interest Act Co Owner Liability for Rental Income Partition Constructive Trusts

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Parties

Vithal Das

Appellant

Rup Chand

Respondent

Hukam Chand

Respondent

Procedural Posture

Civil Appeals Nos. 926 and 927 of 1965 / Final Supreme Court Appeal, Judgment Rendered

Legal Issues

  1. 1 Whether interest is payable by appellant on plaintiffs' share of rental income prior to suit under Trusts Act, 1882 and Interest Act, 1839
  2. 2 Whether possession and collection of rent by co-owner constitutes constructive trust under ss. 90 and 95 of Trusts Act
  3. 3 Whether unreasonable delay in payment of shares of income triggers liability for interest under s. 23(b) of the Trusts Act

Ratio Decidendi

Interest is only payable to the plaintiffs at 6% per annum from the date of the final decree, not for periods prior to suit, as there is no agreement, statutory provision, or breach of trust by co-owner liable under Trusts Act; a co-owner collecting rent does not become trustee unless advantage in derogation is shown.

Court Disposition

Appeals allowed in part, decree of High Court modified as indicated.

Orders

  • Interest to plaintiffs at 6% per annum from the date of final decree (November 20, 1962) on amount found due.
  • Plaintiffs granted Rs. 2,400 (instead of Rs. 3,100) for period Jan 1, 1955 to April 11, 1957 as share of profits.