Shrimati and ors. Vs. Sudhakar R. Bhatkar and ors. - Court Judgment

SooperKanoon Citationsooperkanoon.com/353016
SubjectContract;Property
CourtMumbai High Court
Decided OnMar-04-1997
Case NumberSecond Appeal No. 401 of 1986
JudgeR.M. Lodha, J.
Reported in1998(1)ALLMR648; 1997(4)BomCR237
ActsContract Act, 1872 - Sections 16(3)
AppellantShrimati and ors.
RespondentSudhakar R. Bhatkar and ors.
Appellant AdvocateD.S. Sawant, Adv.
Respondent AdvocateA.A. Kumbhakoni, Adv.
DispositionAppeal dismissed
Excerpt:
[a] indian contract act, 1872 - section 16 - undue influence - section to be applied in a particular order - three aspects to be seen - first - relations between the parties to the extent of domination of will of other - second -whether contract has been induced by undue influence - third - burden of proof - courts can not go into third aspect directly leaving aside first two aspect.;[b] indian contract act, 1872 - section 16(3) - undue influence - burden of proof - other party's position to dominate the will and that he used that position to obtain unfair advantage to be proved first - when transaction appears to be unconscionable person in a dominating position must affirmatively prove that no domination was practised and contract was not induceed by undue influence. - - the original plaintiff and original defendant are not related but they were well acquainted since the original defendant was residing in the premises owned by the original plaintiff. 1 he looked after the original plaintiff as his mother for about 12 years and out of love and affection for the original defendant no. the gift deed dated 15-12-1966 has been exhibited as exhibit 56. 3. the trial court after recording the evidence and hearing the learned counsel for the parties held that the original plaintiff has failed to prove that defendant no. once this condition is satisfied the second aspect which is required to be seen is whether the contract has been induced by undue influence. may be therefore since the original plaintiff and original defendant were living in one house and the original defendant who was being treated like her son might have persuaded the original plaintiff to gift her entire property. there is absolutely no material much less reliable evidence to show that the original defendant no. however, the said case is not only reliable but does not seem to be probable as well. the original plaintiff was illiterate having no formal education from school or college but she was intelligent enough to manage her properties and was getting agricultural land cultivated from various persons from time to time for about two decades and, therefore, from the available facts it cannot be inferred that she would sign a document without understanding the purport of such document. it is now well established that in a court of equity, when a person obtains any benefit from another, whether under a contract or as a gift, by exerting his influence which, in the opinion of the court, prevents the grantor from exercising an independent judgment in the matter in question, the latter can set aside the contract or recover the gift. this court relied upon the following :as to a certain well-known and easily ascertained class of women, well-known rules of law are established, with the wisdom of which we are not now concerned. outside that class it must depend in each case on the character and position of the individual woman whether those who deal with her are or are not bound to take special precautions that her action shall be intelligent and voluntary and to prove that it was so in case of dispute. the burden in these circumstances was on the purchaser to prove intelligent execution of sale deed by the illiterate lady. according to the statement made in the gift deed itself she had gifted her property to the donee out of love and affection. since the plaintiff has failed to prove that the original defendant was in dominating position to affect her decision, the burden cannot be said to have been shifted upon the original defendant no.r.m. lodha, j.1. on 15-12-1980 the civil judge, junior division, rajapur dismissed the plaintiffs suit for declaration that the gift deed dated 15-12-1968 was not binding on her and other incidental reliefs. the district-judge, ratnagiri affirmed the said judgment and decree on 18-2-1986. this second appeal filed under section 100 of code of civil procedure is directed against the aforesaid concurrent judgment and decree.2. one motiram mugadum was originally owner of the suit properties comprising of survey nos. 158/9, 164/3, 48/6, 48/9, 44/8 and 31/4 situate at village tulsawade and house property being grampanchayat no. 13 situate at village tulsawade. motiram magadum died and after his death shrimati motiram sakharam magadum (original plaintiff) became the owner and was in possession and enjoyment of the aforesaid properties. the part of the house property was let out by original plaintiff to village panchayat. tulsawade for rent of rs. 60/- per year somewhere in the year 1967. shri sudhakar raghunath bhatkar (original defendant) was secretary and gram sevak of village panchayat. tulsawade and he was also talathi of the said village. the original defendant was residing in the premises owned by the original plaintiff and taken on rent by the village panchayat from her. the original plaintiff and original defendant are not related but they were well acquainted since the original defendant was residing in the premises owned by the original plaintiff. the gift deed dated 15-12-1966 is the bone of contention in the present litigation and according to the plaintiff the original defendant took original plaintiff in confidence and took her to taluka place rajapur on the pretext that bhade chitti was to be executed but in garb thereof as later on she came to know that the original defendant got the gift deed executed from her relating to entire property held by her. the original plaintiff, according to her, came to know in the month of july 1976 that original defendant had mortgaged the property to ratnagiri district land development bank. on 8-3-1977 the original plaintiff accordingly filed a suit in the court of civil judge, junior division. rajapur against the original defendant and the other defendants namely, maharashtra state co-operative land development bank with whom the properties were mortgaged praying therein that the gift deed dated 15-12-1966 allegedly executed in favour of defendant no. 1 be treated as cancelled and it be declared that defendant no. 1 has got no right in the said properties pursuant to the said gift deed. the original plaintiff also sought the relief that it be declared that the original defendant no. 1 had no right to mortgage the property with the maharashtra state co-operative land development bank and the said property was not liable for auction for re-payment of loan in favour of original defendant no. 1. the original defendant no. 1 filed written statement and denied the averments made in theplaint. according to original defendant no. 1 he looked after the original plaintiff as his mother for about 12 years and out of love and affection for the original defendant no. 1, she gifted her property at her will and volition by the gift deed dated 15-12-1966 which was duly registered. he set up the defence that he was put in possession of the suit property by the original plaintiff on the date of execution of the gift deed and that he has made improvements in the suit house from his own income and loan. the original defendant no. i denied that the gift deed was obtained by practising fraud or exerting undue influence. the trial court framed issues and thereafter the plaintiff examined herself and one witness shri sitaram panchal. though the original defendant no. 1 did not examine herself but examined two witnesses on his behalf namely, shri sitaram narayan chavan and shri kashiram shivram tanawadi. the gift deed dated 15-12-1966 has been exhibited as exhibit 56.3. the trial court after recording the evidence and hearing the learned counsel for the parties held that the original plaintiff has failed to prove that defendant no. 1 got executed the registered gift deed in his favour by fraud and also that she was not entitled to the declaration sought by her. thus, me trial court dismissed the suit which has been affirmed in appeal as observed above.4. at the time of admission of the second appeal, the substantial question of law was formulated and that reads :--'whether in the context of admitted facts of the case, the burden of proving that the gift-deed was not executed by the original plaintiff on account of fraud practised on her was not upon defendant no. 1, as also whether defendant no. 1 who was himself a gram sevak and talathi could not be said to have influenced the gram panchayat who passed the resolution exhibit 69 and whether the resolution was not passed in most irregular manner?'5. however, during the course of arguments, the learned counsel for the parties submitted that following substantial question of law arises in the second appeal and they advanced their arguments on the question :'whether in the facts and circumstances of the case burden to prove that the gift-deed exhibit-56 was not due to undue influence exerted by the defendant no. 1 was on the defendant no. 1 the burden having not been discharged, whether the courts below were justified in dismissing the plaintiff's suit?'6. section 16 of the indian contract act 1872 defines undue influence which reads thus :'16. undue influence defined.--(1) a contract is said to be induced by 'undue influence' where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain un unfair advantage over the other.(2) in particular and without prejudice to the generality of the foregoing principle, a person is deemed to be in a position to dominate the will of another-- (a) where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other; or(b) where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness, or mental or bodily distress. (3) where a person who is in a position to dominate the will of another, enters into a contract with him, and the transaction appears, on the face of it or on the evidence adduced, to the unconscionable, the burden of proving that such contract was not induced by undue influence shall be upon the person in a position to dominate the will of the other.nothing in this sub-section shall affect the provisions of section 111 of the indian evidence act, 1872 (1 of 1872).7. consent under section 14 of the indian contract act is said to be free where it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.8. sub-section (3) of section 16 provides that where a person who is in a position to dominate the other and enter into contract with him and the transaction appears on the face of it, or in the conveyance, to be unconscionable, the burden of proving that such contract was not induced by undue influence shall lie upon the person in the position to dominate the will of the other. where a party to a contract seeks to set it aside on the ground of undue influence, it is not sufficient for him under section 16 of the indian contract act to establish that the other party was in a position to dominate his will. he must also prove that the other party has used that position to obtain unfair advantage on him. it is only if the transaction appears to be unconscionable by sub-section (3) of section 16 the burden of proof that the contract was not induced by undue influence is upon the person who was in the dominating position. in that situation such person must affirmatively prove that no domination was practised. in raghunath prasad v. sarju prasad, (1924) 51 ia 101 : air 1924 pc 60 it has been held,'before, however, addressing themselves to the authorities cited their lordships think it desirable to make clear their views upon, in particular, section 16, sub-section (3) of the contract act as amended. by that section three matters are dealt with. in the first place the relations between the parties to each other must be such that one is in a position to dominate the will of the other. once that position is substantiated the second stage has been reached namely, the issue whether the contract has been induced by undue influence. upon the determination of this issue a third point emerges, which is that of the onus proband. if the transaction appears to be unconscionable, then the burden of proving that the contract was not induced by undue influence is to lie upon the person who was in a position to dominate the will of the other.'sub-section (3) of section 16 has to be applied in a particular order according to privy council. first consideration is the relations between the parties to the extent that one was in a position to dominate the will of the other. once this condition is satisfied the second aspect which is required to be seen is whether the contract has been induced by undue influence. it is only on adjudication of this issue the third point emerges relating to burden of proof or onus probandi. the consideration of the aforesaid matters has to be in that order only one after the other and the said order cannot be disturbed. in other words, the court cannot go into the question of proof of onus probandi as the first issue leaving the other two issues namely the relations between the parties to the effect that one was in a position to dominate the other and whether the contract was induced by the undue influence to be left for decision later on. if that be the approach, the mistake is bound to creep in because the transaction whether an unconscionable or not is not the first thing to be determined but the last aspect to be seen in the order of the circumstances referred to in sub-section (3) of section 16.9. the apex court in afsar shaik v. soleman bibi, air 1976 sc 163 had occasion to deal with undue influence and section 16 of the indian contract act and with reference to the decision of prem shah (supra) decided by privy council, held that it was not sufficient for a person seeking relief to show that the relations of the parties have been such that the one naturally relied upon on the other for advice and the other was in a position to dominate the will of the first and dealing it. the apex court ruled that more than mere influence must be proved so as to render influence in the language of law undue and upon determination of this issue at the second stage, a third point emerges which is of the onus probandi. if the transaction appears to be unconscionable, the apex court observed that the burden of proving that it was not induced by undue influence is according to the law upon the person who was in a position to dominate the will of the other.10. applying the aforesaid principles, the first thing that is required to be seen is whether the relation between the original plaintiff and the original defendant no. 1 was such that one was in a position to dominate the will of the other. that is what is required to be seen first while determining first stage is whether one of the parties could influence the decision of the other. in the facts on hand it would be seen that as it is there was no relationship between the original plaintiff and original defendant no. 1. that fact is not only not disputed but rather admitted in the plaint itself where the original plaintiff has averred that there was no relationship as such between the parties i.e. the original plaintiff and original defendant no. 1. merely because the original defendant no. 1 was residing in the part of the house owned by original plaintiff as an employee of the tenant, it cannot be said that the original defendant no. 1 was in dominating position who could influence the plaintiff. except this fact there is no material on record from which any inference can be drawn that the original defendant no. 1 was in a position where he could dominate and influence the original plaintiff. influence in the eye of law has to be contradistinguished with persuasion. any and every persuasion by one party to the other to contract cannot lead to inference or conclusion that such party has influenced the other party. one may by his act and conduct convince and persuade the other party to do a particular act and if the other party does such an act freely and of own volition may be to his or her prejudice or to his or her disadvantage or even to his or her peril, it cannot be said that such act was influenced by the other. may be therefore since the original plaintiff and original defendant were living in one house and the original defendant who was being treated like her son might have persuaded the original plaintiff to gift her entire property. by such persuasion, it cannot be held that he has influenced the decision of the original plaintiff by dominating his will over her. the first element of influence is, therefore, missing. the second stage whether such influence was undue or not, therefore, cannot be said to have arisen. there is absolutely no material much less reliable evidence to show that the original defendant no. 1 induced the original plaintiff by undue influence for execution of the gift deed exhibit 56. of course the original plaintiff has deposed and sought to set up the case that the original defendant no. 1 on the pretext of execution of bhade chitti took her to rajapur and in the garb of execution of bhade chitti got executed the document which turned out to be gift deed. however, the said case is not only reliable but does not seem to be probable as well. it will be seen that motiram the original owner and the husband of the original plaintiff had died long back and perhaps two decades before the execution of the gift deed in the year 1966. during this period of 20 years the original plaintiff had been getting the agricultural land cultivated from various persons and was sustaining her livelihood therefrom. the original plaintiff was illiterate having no formal education from school or college but she was intelligent enough to manage her properties and was getting agricultural land cultivated from various persons from time to time for about two decades and, therefore, from the available facts it cannot be inferred that she would sign a document without understanding the purport of such document. gift deed exhibit 56 therefore, must have been signed by the original plaintiff after fully understanding its effect. the gift deed admittedly is the registered document.11. mr. sawant, the learned counsel for the appellant relied upon the decision of this court in shivgangawa madiwalappa vulavi v. basangouda govindgouda patil air 1938 bom 304 in which the division bench of this court has held thus at page 305-306 :--'we also believe the plaintiff that by various pretences and show of sympathy the defendant had gained a position of dominance over the plaintiff at the material time. it is during the subsistence of that relationship that the deed of gift was executed. it is now well established that in a court of equity, when a person obtains any benefit from another, whether under a contract or as a gift, by exerting his influence which, in the opinion of the court, prevents the grantor from exercising an independent judgment in the matter in question, the latter can set aside the contract or recover the gift. the court of equity then imposes upon the grantee the burden, if he wishes to maintain the contract or gift, (sic) proving that in fact he exerted no influence for the purpose of obtaining it.'12. shivgangawa madiwalappa vulavi (supra) is a case where a young widow who had inherited her brother's property had no relative to look after her and there was none who could give her disinterested advice. her husband's brother came and lived with her appropriating her income. the widow quarrelled with him and during the quarrel she was thrown out of her property. through the advice and assistance of an influential watandar patil she recovered her property back. patil lived with the widow in a stage of immorality and having obtained from the widow of a gift of all her property drove her away. it was in these circumstances that this court held that the gift was presumably obtained through undue influence. this court relied upon the following :'as to a certain well-known and easily ascertained class of women, well-known rules of law are established, with the wisdom of which we are not now concerned. outside that class it must depend in each case on the character and position of the individual woman whether those who deal with her are or are not bound to take special precautions that her action shall be intelligent and voluntary and to prove that it was so in case of dispute.'the relation of paramour and mistress was included in such cases if the party obtaining the benefit was in a position to dominate and influence the will of the other. in the present case, the facts are entirely different. here the widow over two decades looked after and managed her property after the death of her husband and therefore original defendant no. 1 who was only occupying part of the tenanted premises cannot be said to be in a position to dominate and influence the will of the original plaintiff.13. another decision relied upon by the learned counsel for the appellant is smt. koze v. makhan singh : air1973mp252 wherein the sale of the entire property by an illiterate woman belonging to scheduled tribe was set aside on the ground of undue influence and fraud because there was absence of (i) independent advice (ii) payment of sale consideration to her (iii) urgency to sell the property to the vendee and (iv) reading over the sale deed to vendor. in this background the madhya pradesh high court held that since the vendee was not able to establish that the sale was fair, reasonable and equitable, the sale would not be allowed to stand and was set aside.14-15. smt. koze's case (supra) has no application whatsover in the facts of this case already referred to here above.16. the learned counsel for the appellant then cited miti bewa v. daitari nayak : air1982ori174 . the said ruling of the orissa high court has no application in the present case. that was a case where suit was filed by illiterate lady for declaration of title and setting aside sale deed executed by her on the allegation that the sale deed was taken from her on the pretext of power of attorney by her son-in-law, who was living with her for a score of years and was managing her property. the burden in these circumstances was on the purchaser to prove intelligent execution of sale deed by the illiterate lady.17. yet another case relied upon by mr. savant, the learned counsel for the appellant is the judgment of the himachal pradesh high court, in smt. jakri devi v. smt. rama dogra . in that case an illiterate lady living separately from her husband gifted practically all her landed property worth rs. 2 lacs which had an apple orchard to the donee who was her lover. in these facts, the himachal pradesh high court held that the transaction of gift deed by the illiterate lady in favour of her lover was a result of undue influence exercised by the donee who was in a position to dominate the will of the owner.18. adverting to the preser' facts, it would be seen that the gift deed was attested by two attesting witnesses and was written by a scribe. none of the attesting witnesses nor the scribe was produced by the original plaintiff. had the attesting witnesses or the scribe or any one of them been examined by the original plaintiff, it would have thrown some light whether the gift deed was executed by perpetrating fraud or exerting undue influence. according to the statement made in the gift deed itself she had gifted her property to the donee out of love and affection. since the plaintiff has failed to prove that the original defendant was in dominating position to affect her decision, the burden cannot be said to have been shifted upon the original defendant no. 1 to prove that the gift deed at exhibit 56 was not executed by inducing the original plaintiff by undue influence. that stage of onus on the original defendant no. 1 did not arise in the facts and circumstances of the present case. i, therefore, hold that in the facts and circumstances of the case the stage of placing the burden on original defendant no. 1 to prove that the document gift deed exhibit 56 was not executed by inducing undue influence had not arrived at and, therefore, the courts below cannot be said to be unjustified in dismissing the plaintiff's suit.19. the original plaintiff has also died during the pendency of the appeal and her daughter smt. chapabai had also died living behind her legal representatives who have been substituted as appellants in the second appeal. the original defendant no. 1, respondent no. 1 herein, shri sudhakar r. bhatkar has however, filed an undertaking in the form of an affidavit that in case if the second appeal is dismissed, to put an end to the dispute finally, he on his own would pay to the appellants collectively a sum of rs. 50,000/- from the date of the decision in the manner in which he could deposit the said amount in the court. the said undertaking in the form of the affidavit is accepted and defendant no. 1 -- respondent no. 1 herein is permitted to deposit the said amount of rs. 50,000/- before the trial court within six months from today and the appellants would be at liberty to withdraw the said amount from the trial court. though the second appeal filed by the original plaintiff is dismissed the gesture by original defendant no. 1 is appreciated in the facts and circumstances of the case.20. in the result, the appeal is dismissed with the observations as aforestated. no costs.
Judgment:

R.M. Lodha, J.

1. On 15-12-1980 the Civil Judge, Junior Division, Rajapur dismissed the plaintiffs suit for declaration that the gift deed dated 15-12-1968 was not binding on her and other incidental reliefs. The District-Judge, Ratnagiri affirmed the said judgment and decree on 18-2-1986. This second appeal filed under Section 100 of Code of Civil Procedure is directed against the aforesaid concurrent judgment and decree.

2. One Motiram Mugadum was originally owner of the suit properties comprising of survey Nos. 158/9, 164/3, 48/6, 48/9, 44/8 and 31/4 situate at village Tulsawade and house property being Grampanchayat No. 13 situate at village Tulsawade. Motiram Magadum died and after his death Shrimati Motiram Sakharam Magadum (original plaintiff) became the owner and was in possession and enjoyment of the aforesaid properties. The part of the house property was let out by original plaintiff to village panchayat. Tulsawade for rent of Rs. 60/- per year somewhere in the year 1967. Shri Sudhakar Raghunath Bhatkar (original defendant) was Secretary and Gram Sevak of village Panchayat. Tulsawade and he was also talathi of the said village. The original defendant was residing in the premises owned by the original plaintiff and taken on rent by the village Panchayat from her. The original plaintiff and original defendant are not related but they were well acquainted since the original defendant was residing in the premises owned by the original plaintiff. The gift deed dated 15-12-1966 is the bone of contention in the present litigation and according to the plaintiff the original defendant took original plaintiff in confidence and took her to taluka place Rajapur on the pretext that bhade chitti was to be executed but in garb thereof as later on she came to know that the original defendant got the gift deed executed from her relating to entire property held by her. The original plaintiff, according to her, came to know in the month of July 1976 that original defendant had mortgaged the property to Ratnagiri District Land Development Bank. On 8-3-1977 the original plaintiff accordingly filed a suit in the Court of Civil Judge, Junior Division. Rajapur against the original defendant and the other defendants namely, Maharashtra State Co-operative Land Development Bank with whom the properties were mortgaged praying therein that the gift deed dated 15-12-1966 allegedly executed in favour of defendant No. 1 be treated as cancelled and it be declared that defendant No. 1 has got no right in the said properties pursuant to the said gift deed. The original plaintiff also sought the relief that it be declared that the original defendant No. 1 had no right to mortgage the property with the Maharashtra State Co-operative Land Development Bank and the said property was not liable for auction for re-payment of loan in favour of original defendant No. 1. The original defendant No. 1 filed written statement and denied the averments made in theplaint. According to original defendant No. 1 he looked after the original plaintiff as his mother for about 12 years and out of love and affection for the original defendant No. 1, she gifted her property at her will and volition by the gift deed dated 15-12-1966 which was duly registered. He set up the defence that he was put in possession of the suit property by the original plaintiff on the date of execution of the gift deed and that he has made improvements in the suit house from his own income and loan. The original defendant No. I denied that the gift deed was obtained by practising fraud or exerting undue influence. The trial Court framed issues and thereafter the plaintiff examined herself and one witness Shri Sitaram Panchal. Though the original defendant No. 1 did not examine herself but examined two witnesses on his behalf namely, Shri Sitaram Narayan Chavan and Shri Kashiram Shivram Tanawadi. The gift deed dated 15-12-1966 has been exhibited as Exhibit 56.

3. The trial Court after recording the evidence and hearing the learned Counsel for the parties held that the original plaintiff has failed to prove that defendant No. 1 got executed the registered gift deed in his favour by fraud and also that she was not entitled to the declaration sought by her. Thus, me trial Court dismissed the suit which has been affirmed in appeal as observed above.

4. At the time of admission of the second appeal, the substantial question of law was formulated and that reads :--

'Whether in the context of admitted facts of the case, the burden of proving that the Gift-deed was not executed by the original plaintiff on account of fraud practised on her was not upon defendant No. 1, as also whether defendant No. 1 who was himself a Gram Sevak and Talathi could not be said to have influenced the Gram Panchayat who passed the Resolution Exhibit 69 and whether the Resolution was not passed in most irregular manner?'

5. However, during the course of arguments, the learned Counsel for the parties submitted that following substantial question of law arises in the second appeal and they advanced their arguments on the question :

'Whether in the facts and circumstances of the case burden to prove that the Gift-deed Exhibit-56 was not due to undue influence exerted by the defendant No. 1 was on the defendant No. 1 the burden having not been discharged, whether the Courts below were justified in dismissing the plaintiff's suit?'

6. Section 16 of the Indian Contract Act 1872 defines undue influence which reads thus :

'16. Undue influence defined.--(1) A contract is said to be induced by 'undue influence' where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain un unfair advantage over the other.

(2) In particular and without prejudice to the generality of the foregoing principle, a person is deemed to be in a position to dominate the will of another--

(a) Where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other; or

(b) where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness, or mental or bodily distress.

(3) Where a person who is in a position to dominate the will of another, enters into a contract with him, and the transaction appears, on the face of it or on the evidence adduced, to the unconscionable, the burden of proving that such contract was not induced by undue influence shall be upon the person in a position to dominate the will of the other.

Nothing in this sub-section shall affect the provisions of Section 111 of the Indian Evidence Act, 1872 (1 of 1872).

7. Consent under Section 14 of the Indian Contract Act is said to be free where it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.

8. Sub-section (3) of Section 16 provides that where a person who is in a position to dominate the other and enter into contract with him and the transaction appears on the face of it, or in the conveyance, to be unconscionable, the burden of proving that such contract was not induced by undue influence shall lie upon the person in the position to dominate the will of the other. Where a party to a contract seeks to set it aside on the ground of undue influence, it is not sufficient for him under Section 16 of the Indian Contract Act to establish that the other party was in a position to dominate his will. He must also prove that the other party has used that position to obtain unfair advantage on him. It is only if the transaction appears to be unconscionable by Sub-section (3) of Section 16 the burden of proof that the contract was not induced by undue influence is upon the person who was in the dominating position. In that situation such person must affirmatively prove that no domination was practised. In Raghunath Prasad v. Sarju Prasad, (1924) 51 IA 101 : AIR 1924 PC 60 it has been held,

'Before, however, addressing themselves to the authorities cited their Lordships think it desirable to make clear their views upon, in particular, Section 16, Sub-section (3) of the Contract Act as amended. By that section three matters are dealt with. In the first place the relations between the parties to each other must be such that one is in a position to dominate the will of the other. Once that position is substantiated the second stage has been reached namely, the issue whether the contract has been induced by undue influence. Upon the determination of this issue a third point emerges, which is that of the onus proband. If the transaction appears to be unconscionable, then the burden of proving that the contract was not induced by undue influence is to lie upon the person who was in a position to dominate the will of the other.'

Sub-section (3) of Section 16 has to be applied in a particular order according to Privy Council. First consideration is the relations between the parties to the extent that one was in a position to dominate the will of the other. Once this condition is satisfied the second aspect which is required to be seen is whether the contract has been induced by undue influence. It is only on adjudication of this issue the third point emerges relating to burden of proof or onus probandi. The consideration of the aforesaid matters has to be in that order only one after the other and the said order cannot be disturbed. In other words, the Court cannot go into the question of proof of onus probandi as the first issue leaving the other two issues namely the relations between the parties to the effect that one was in a position to dominate the other and whether the contract was induced by the undue influence to be left for decision later on. If that be the approach, the mistake is bound to creep in because the transaction whether an unconscionable or not is not the first thing to be determined but the last aspect to be seen in the order of the circumstances referred to in Sub-section (3) of Section 16.

9. The Apex Court in Afsar Shaik v. Soleman Bibi, AIR 1976 SC 163 had occasion to deal with undue influence and Section 16 of the Indian Contract Act and with reference to the decision of Prem Shah (supra) decided by Privy Council, held that it was not sufficient for a person seeking relief to show that the relations of the parties have been such that the one naturally relied upon on the other for advice and the other was in a position to dominate the will of the first and dealing it. The Apex Court ruled that more than mere influence must be proved so as to render influence in the language of law undue and upon determination of this issue at the second stage, a third point emerges which is of the onus probandi. If the transaction appears to be unconscionable, the Apex Court observed that the burden of proving that it was not induced by undue influence is according to the law upon the person who was in a position to dominate the will of the other.

10. Applying the aforesaid principles, the first thing that is required to be seen is whether the relation between the original plaintiff and the original defendant No. 1 was such that one was in a position to dominate the will of the other. That is what is required to be seen first while determining first stage is whether one of the parties could influence the decision of the other. In the facts on hand it would be seen that as it is there was no relationship between the original plaintiff and original defendant No. 1. That fact is not only not disputed but rather admitted in the plaint itself where the original plaintiff has averred that there was no relationship as such between the parties i.e. the original plaintiff and original defendant No. 1. Merely because the original defendant No. 1 was residing in the part of the house owned by original plaintiff as an employee of the tenant, it cannot be said that the original defendant No. 1 was in dominating position who could influence the plaintiff. Except this fact there is no material on record from which any inference can be drawn that the original defendant No. 1 was in a position where he could dominate and influence the original plaintiff. Influence in the eye of law has to be contradistinguished with persuasion. Any and every persuasion by one party to the other to contract cannot lead to inference or conclusion that such party has influenced the other party. One may by his act and conduct convince and persuade the other party to do a particular act and if the other party does such an act freely and of own volition may be to his or her prejudice or to his or her disadvantage or even to his or her peril, it cannot be said that such act was influenced by the other. May be therefore since the original plaintiff and original defendant were living in one house and the original defendant who was being treated like her son might have persuaded the original plaintiff to gift her entire property. By such persuasion, it cannot be held that he has influenced the decision of the original plaintiff by dominating his will over her. The first element of influence is, therefore, missing. The second stage whether such influence was undue or not, therefore, cannot be said to have arisen. There is absolutely no material much less reliable evidence to show that the original defendant No. 1 induced the original plaintiff by undue influence for execution of the gift deed exhibit 56. Of course the original plaintiff has deposed and sought to set up the case that the original defendant No. 1 on the pretext of execution of bhade chitti took her to Rajapur and in the garb of execution of bhade chitti got executed the document which turned out to be gift deed. However, the said case is not only reliable but does not seem to be probable as well. It will be seen that Motiram the original owner and the husband of the original plaintiff had died long back and perhaps two decades before the execution of the gift deed in the year 1966. During this period of 20 years the original plaintiff had been getting the agricultural land cultivated from various persons and was sustaining her livelihood therefrom. The original plaintiff was illiterate having no formal education from school or college but she was intelligent enough to manage her properties and was getting agricultural land cultivated from various persons from time to time for about two decades and, therefore, from the available facts it cannot be inferred that she would sign a document without understanding the purport of such document. Gift deed exhibit 56 therefore, must have been signed by the original plaintiff after fully understanding its effect. The gift deed admittedly is the registered document.

11. Mr. Sawant, the learned counsel for the appellant relied upon the decision of this Court in Shivgangawa Madiwalappa Vulavi v. Basangouda Govindgouda Patil AIR 1938 Bom 304 in which the Division Bench of this Court has held thus at page 305-306 :--

'We also believe the plaintiff that by various pretences and show of sympathy the defendant had gained a position of dominance over the plaintiff at the material time. It is during the subsistence of that relationship that the deed of gift was executed. It is now well established that in a Court of equity, when a person obtains any benefit from another, whether under a contract or as a gift, by exerting his influence which, in the opinion of the Court, prevents the grantor from exercising an independent judgment in the matter in question, the latter can set aside the contract or recover the gift. The Court of equity then imposes upon the grantee the burden, if he wishes to maintain the contract or gift, (sic) proving that in fact he exerted no influence for the purpose of obtaining it.'

12. Shivgangawa Madiwalappa Vulavi (supra) is a case where a young widow who had inherited her brother's property had no relative to look after her and there was none who could give her disinterested advice. Her husband's brother came and lived with her appropriating her income. The widow quarrelled with him and during the quarrel she was thrown out of her property. Through the advice and assistance of an influential watandar Patil she recovered her property back. Patil lived with the widow in a stage of immorality and having obtained from the widow of a gift of all her property drove her away. It was in these circumstances that this Court held that the gift was presumably obtained through undue influence. This Court relied upon the following :

'As to a certain well-known and easily ascertained class of women, well-known rules of law are established, with the wisdom of which we are not now concerned. Outside that class it must depend in each case on the character and position of the individual woman whether those who deal with her are or are not bound to take special precautions that her action shall be intelligent and voluntary and to prove that it was so in case of dispute.'

The relation of paramour and mistress was included in such cases if the party obtaining the benefit was in a position to dominate and influence the will of the other. In the present case, the facts are entirely different. Here the widow over two decades looked after and managed her property after the death of her husband and therefore original defendant No. 1 who was only occupying part of the tenanted premises cannot be said to be in a position to dominate and influence the will of the original plaintiff.

13. Another decision relied upon by the learned Counsel for the appellant is Smt. Koze v. Makhan Singh : AIR1973MP252 wherein the sale of the entire property by an illiterate woman belonging to scheduled tribe was set aside on the ground of undue influence and fraud because there was absence of (i) independent advice (ii) payment of sale consideration to her (iii) urgency to sell the property to the vendee and (iv) reading over the sale deed to vendor. In this background the Madhya Pradesh High Court held that since the vendee was not able to establish that the sale was fair, reasonable and equitable, the sale would not be allowed to stand and was set aside.

14-15. Smt. Koze's case (supra) has no application whatsover in the facts of this case already referred to here above.

16. The learned Counsel for the appellant then cited Miti Bewa v. Daitari Nayak : AIR1982Ori174 . The said ruling of the Orissa High Court has no application in the present case. That was a case where suit was filed by illiterate lady for declaration of title and setting aside sale deed executed by her on the allegation that the sale deed was taken from her on the pretext of power of attorney by her son-in-law, who was living with her for a score of years and was managing her property. The burden in these circumstances was on the purchaser to prove intelligent execution of sale deed by the illiterate lady.

17. Yet another case relied upon by Mr. Savant, the learned Counsel for the appellant is the judgment of the Himachal Pradesh High Court, in Smt. Jakri Devi v. Smt. Rama Dogra . In that case an illiterate lady living separately from her husband gifted practically all her landed property worth Rs. 2 lacs which had an apple orchard to the donee who was her lover. In these facts, the Himachal Pradesh High Court held that the transaction of gift deed by the illiterate lady in favour of her lover was a result of undue influence exercised by the donee who was in a position to dominate the will of the owner.

18. Adverting to the preser' facts, it would be seen that the gift deed was attested by two attesting witnesses and was written by a scribe. None of the attesting witnesses nor the scribe was produced by the original plaintiff. Had the attesting witnesses or the scribe or any one of them been examined by the original plaintiff, it would have thrown some light whether the gift deed was executed by perpetrating fraud or exerting undue influence. According to the statement made in the gift deed itself she had gifted her property to the donee out of love and affection. Since the plaintiff has failed to prove that the original defendant was in dominating position to affect her decision, the burden cannot be said to have been shifted upon the original defendant No. 1 to prove that the gift deed at Exhibit 56 was not executed by inducing the original plaintiff by undue influence. That stage of onus on the original defendant No. 1 did not arise in the facts and circumstances of the present case. I, therefore, hold that in the facts and circumstances of the case the stage of placing the burden on original defendant No. 1 to prove that the document gift deed Exhibit 56 was not executed by inducing undue influence had not arrived at and, therefore, the Courts below cannot be said to be unjustified in dismissing the plaintiff's suit.

19. The original plaintiff has also died during the pendency of the appeal and her daughter Smt. Chapabai had also died living behind her legal representatives who have been substituted as appellants in the second appeal. The original defendant No. 1, respondent No. 1 herein, Shri Sudhakar R. Bhatkar has however, filed an undertaking in the form of an affidavit that in case if the second appeal is dismissed, to put an end to the dispute finally, he on his own would pay to the appellants collectively a sum of Rs. 50,000/- from the date of the decision in the manner in which he could deposit the said amount in the Court. The said undertaking in the form of the affidavit is accepted and defendant No. 1 -- respondent No. 1 herein is permitted to deposit the said amount of Rs. 50,000/- before the trial Court within six months from today and the appellants would be at liberty to withdraw the said amount from the trial Court. Though the second appeal filed by the original plaintiff is dismissed the gesture by original defendant No. 1 is appreciated in the facts and circumstances of the case.

20. In the result, the appeal is dismissed with the observations as aforestated. No costs.