This Regular First Appeal under Section 96 read with Order XLI of the CPC was filed by the appellant/father (Sudhir Kawatra) to challenge the judgment and decree dated January 10, 2023 passed by the Additional District Judge, Delhi, which decreed the respondent/daughter’s (Shamli Kawatra) recovery suit for Rs. 8,13,853.79/- along with 8% per annum interest under Order XII Rule 6 of the CPC based on categorical admissions. The dispute arose after the appellant closed a Public Provident Fund (PPF) account opened in his daughter’s name during her minority, withdrew the entire maturity corpus of Rs. 8,13,853.79/-, and transferred it to his personal account while giving an undertaking to the bank that it would be used for her education and welfare—an obligation he failed to fulfill. In defense, the father argued that he was entitled to close the account and claimed he should be allowed to set off this amount against the monthly maintenance payments he made to his daughter and wife pursuant to Family Court and High Court orders.
Upon review, the High Court of Delhi dismissed the appeal and upheld the trial court’s judgment. The court held that a parent’s legal responsibility to maintain a child is an independent statutory and moral duty, distinct from investments or savings made for the child’s future corpus. While the father’s closure of the PPF account under the PPF Act may have been procedurally valid, the maturity proceeds belonged beneficially to the daughter upon attaining majority, and the father held them merely in a fiduciary capacity as a guardian. Crucially, a parent cannot utilize a child’s personal investment corpus to discharge their independent legal responsibility to pay maintenance. Because the father unequivocally admitted in his pleadings to withdrawing the funds and failing to hand them over, the trial court correctly exercised its discretion under Order XII Rule 6 CPC to decree the suit for the entire amount.
- Factual Background and Dispute Origin:
- On December 9, 1999, the appellant/father opened a minor PPF account in the name of his daughter (the respondent) at the State Bank of India, Janakpuri Branch.
- The respondent attained majority on November 13, 2016. When she later approached the bank to convert the account into a normal major account, she discovered that the appellant had closed the account on October 18, 2016, upon maturity, and withdrawn the entire balance of Rs. 8,13,853.79/- into his personal account.
- The appellant provided an undertaking to the bank that the funds would be spent on the respondent’s higher education and well-being, which he failed to do.
- Suit for Recovery and Trial Court Decision:
- Following matrimonial discord between her parents and financial strain regarding her BBA education fees, the respondent filed a recovery suit.
- The trial court decreed the suit under Order XII Rule 6 CPC for the full sum of Rs. 8,13,853.79/- with 8% per annum interest, ruling that clear admissions existed and that maintenance payments could not be adjusted against the daughter’s independent investment corpus.
- Appellant/Father’s Contentions:
- The withdrawal was executed in good faith under the PPF Act, and the suit was barred under Section 10 of the PPF Act.
- The appellant was entitled to close the account and should receive credit/adjustment for Rs. 6,00,000/- paid toward the daughter’s maintenance (at Rs. 12,000/- per month) under a Family Court order, alongside monthly maintenance paid to his wife.
- The suit involved mixed questions of fact and law requiring full trial, making a judgment on admissions improper.
- High Court’s Analysis and Findings:
- Investment vs. Maintenance: The court distinguished between long-term investments made for a child’s future and day-to-day maintenance. Maintenance is an independent legal obligation of a parent. A father cannot utilize his child’s personal investment funds to off-set or discharge his own independent duty to pay maintenance.
- Fiduciary Capacity: Although the father contributed the savings and closed the account upon maturity, the corpus belonged beneficially to the daughter. He held the funds only as a guardian in a fiduciary capacity and was legally obligated to hand them over to her upon majority.
- Propriety of Order XII Rule 6 CPC: Because the appellant categorically admitted in his pleadings to withdrawing the entire amount and transferring it to his account, the trial court rightly invoked Order XII Rule 6 CPC to pass a judgment on admissions.
- Final Order:
- The appeal along with pending applications was dismissed.
- The impugned judgment and decree dated January 10, 2023, awarding Rs. 8,13,853.79/- with 8% interest per annum, was affirmed as well-reasoned.
2026 DHC 6228
Sudhir Kawatra v. Shamli Kawatra (D.O.J. 03.08.2026)
