- (1.) ONE K. C. Sreemanavikraman alias Eattan Raja was the Zamorin of Calicut. He was a Sthanamdar. In respect of the sthanam property, he was liable to pay agricultural income -tax under the Kerala Agricultural Income -tax Act, 1950 (in brief the Act) for the period from November 1, 1956 to March 31, 1958. Sreemanavikraman Raja died on May 2,1958. Thereafter on May 12,1958, Sthanam Properties (Assumption of temporary Managemen and Control) and Hindu Succession (Amendment) Act, 1958, (Act 23 of 1958) came into force. After the death of Sreemanavikraman Raja, the sthanam property was taken possession of by Kunhammaman Raja claiming to be the succeeding sthanamdar. In respect of the assessment due for the period November 1, 1956 to March 31,1958, Kunhammaman Raja was assessed to tax as the successor sthanamdar. The said Kunhammaman Raja died on December 23,1960 without making any payment. Thereafter the next senior most member in the Zamorin family, P. C. Cheria Kunjunni Raja took possession of the sthanam property. He also died soon after. During the life time of P. C. Cheria Kunjunni Raja, the Agricultural Income -tax Officer imposed a penalty of Rs. 5,000 for non -payment of the tax referred to earlier. P. C. Cheria Kunjunni Raja paid a sum of Rs. 20,100 out of the tax and penalty due, as coercive proceedings were threatened to be taken against him. On the death of P. C. Cheria Kunjunni Raja, the next senior most member in the Zamorin family was K. C. Cheria Kunjunni Raja. When the Agricultural Income -tax Officer attempted to collect the tax imposed under the assessment order mentioned earlier from K. C. Cheria Kunjunni Raja, he filed a petition before that officer representing that he had nothing to do with the sthanam property and the sthanam property stood divided under S.7(3) of the Hindu Succession Act, 1956 on the death of Sreemanavikraman on May 2, 1958. The Hindu Succession Act, 1956 had come into force on June 18, 1956. After the receipt of that representation, the Agricultural Income -tax Officer passed as order on March 25, 1S63 stating that as the successors of the Zamorin who died on 2 51958 had designated themselves as Zamorin Rajas, they have the liability to pay the arrears due to the Government. He directed K. C. Cheria Kunjunni Raja to pay the tax and penalty imposed. Aggrieved by that order K, C. Cheria Kunjunni Raja filed a writ petition in the Kerala High Court challenging the validity of the threatened proceedings against him. The High Court quashed the demand notices issued by the Agricultural Income -tax Officer to K. C. Cheria Kunjunni Raja. It held that the assessment having been made on Kunhammaman Raja, his share alone was liable to be proceeded against. It further held that the liability to pay that tax and penalty was that of the personal heirs of Kunhammaman Raja and that only to the extent, they had come into possession of the assets of the said Raja.
(2.) THEREAFTER the Inspecting Assistant Commissioner Kozhikode ordered that as the entire sthanam property had devolved on the 693 members, all those persons were liable to pay the arrears of the tax and penalty. This order was made without notice to the parties. Meanwhile in the partition suit in the Zamorins family, the court appointed two joint receivers. The receivers objected to the order of the Assistant Commissioner demanding the arrears of tax referred to earlier from them They represented to him that the estate in their hands is not liable to pay the arrears of tax and penalty demanded. But those representations were not accepted by the authorities. They threatened to proceed against the assets in the hands of the receivers. At that stage, the receivers filed the writ petition from which this appeal arises. Therein they challenged the right of the Agricultural Income -tax Officer to collect the arrears of tax and penalty from out of the properties in their hands. The question before the High Court was whether the tax due from Manavikraman Raja was realisable from the assets in the hands of the receivers. The writ petition was heard by a full beach of three judges. By a majority, the High Court came to the conclusion that the only persons who were liable to pay the tax in question were the personal hears of Sreemanavikraman Raja who had received the income. The Court held that in view of S.7(3) of the Hindu Succession Act, the Sthanam property stood divided at the time of the death of Sreemanavikraman Raja into 693 shares, out of which 692 shares went to members of the Tarwad of the deceased and one share to his personal heirs wife and children. It opined that the tax due from Manavikraman Raja could have been levied and collected only from bis personal heirs as they alone were liable to pay that tax. As a result of that conclusion, it quashed the impugned demand.
(3.) S . 7 of the Hindu Succession Act provides for the devolution of interest in the property of a tarwad, tavazhi, kutumba, kavaru, or illom. S.7(3) provides: "Notwithstanding anything contained in Sub -S. (1) when a sthanamdar dies after the commencement of this Act, the sthanam property held by him shall devolve upon the members of the family to which the sthanamdar belonged and the heirs of the sthanamdar as if the sthanam property had been divided per capita immediately before the death of the sthanamdar among himself and all the members of his family then living, and the shares falling to the members of his family and the heirs of the sthanamdar shall be held by them as their separate property." "Explanation: For the purposes of this sub -section the family of a sthanamdar shall include every branch of that family, whether divided or undivided, the male members of which would have been entitled by any custom or usage to succeed to the position of sthanamdar if this Act had not been passed." ;