A.T. Raghava Chariar v. O.A. Srinivasa (1916) — Minor’s Right to Enforce Mortgage

Quick Summary

A mortgage was made in favour of a minor who had paid the full mortgage money. The question: can a minor enforce such a mortgage? The Full Bench answered “Yes.” The law that stops minors from binding themselves exists to protect them, not to strip them of benefits when they have paid money. If the transaction benefits the minor and puts no burden on them, it is enforceable by the minor or by someone acting for the minor.

Issues

• Is a mortgage in favour of a minor, who advanced all the money, enforceable?
• If enforceable, can it be enforced by the minor personally or through another on the minor’s behalf?

Rules

• Incapacity rule protects minors from liability; it does not deny them benefits from transfers they have paid for.
• A contract that is for the minor’s benefit and imposes no personal obligation on the minor can be enforced by or for the minor.

Arguments

The Full Bench held unanimously that the mortgage was enforceable by the minor, or by another person on the minor’s behalf. The protective rule on minors’ incapacity cannot be twisted to make them lose benefits under a transfer after paying money. Here, the transaction benefited the minor and did not load the minor with obligations.

Ratio Decidendi

Minors cannot bind themselves by contract; that rule exists to shield them. But a transfer or arrangement that benefits the minor and imposes no personal duty may be enforced by or for the minor—e.g., a mortgage where the minor advanced the money.

Why It Matters

• Balances protection of minors with fairness when they have paid value.
• Clarifies that minors may take benefits under transfers without bearing obligations.
• Useful precedent for mortgages, gifts, and other beneficial transactions to minors.

Key Takeaways

Mnemonic + 3-Step Hook

Mnemonic: “PROTECT — DON’T DEPRIVE.”

1. Protect: Minority rule protects the child.
2. Benefit: If transaction benefits the minor, allow enforcement.
3. No Burden: Ensure no personal obligations are put on the minor.

IRAC Outline

Issue

Can a minor, who advanced all mortgage money, enforce the mortgage in their favour?

Rule

Minors cannot bind themselves, but they may enforce beneficial arrangements that place no obligations on them.

Application

The mortgage placed no personal duty on the minor and secured repayment for money paid by the minor. Denying enforcement would punish the minor contrary to the protective purpose of the law.

Conclusion

Yes, the mortgage is enforceable by the minor or someone acting for the minor.

Glossary

Minor

A person under the age of legal majority; lacks capacity to bind themselves by contract.

Mortgagee

The person in whose favour a mortgage is granted (here, the minor).

Next Friend/Guardian

A person who can sue on behalf of a minor in legal proceedings.

FAQs

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