Search By Topic: Property Dispute Cases

1. (SC) 12-11-2024

A. Specific Relief Act, 1963 (47 of 1963), Section 10 -- Suit for specific performance of agreement -- Evidence of attorney -- One of the purchasers and plaintiff in his suit for specific performance throughout present in the transaction held the Power of Attorney from the other plaintiffs – He was examined as PW-1 in each of the suits whether in his capacity as plaintiff or as Power of Attorney from other plaintiffs -- It was not necessary for each of the plaintiffs in separate suits to appear and prove the transaction -- Trial Court had examined this aspect and had found favour with the plaintiffs – Adverse inference drawn by the High Court for the reason that the plaintiffs did not enter the witness box to prove the Agreement to Sell, was completely misplaced.

(Para 28)

B. Specific Relief Act, 1963 (47 of 1963), Section 10 – Limitation Act, 1963 (36 of 1963), Article 54 -- Suit for specific performance of agreement – Limitation -- Agreement to Sell dated 30.08.1990 did not mention any date for the performance, nor did owner refused at any point of time and soon after the death of owner in December 1992, the plaintiffs having come to know of the mutation proceedings by her legal heirs, they proceeded to file the suit, after giving notice in May 1995, which was well within a period of three years -- Second part of Article 54 of the Schedule to the Limitation Act would be applicable once there was no date fixed for performance in the Agreement to Sell.

(Para 27, 30)

C. Agreement to sell – Possession with original title deed – Effect of -- A purchaser who has paid the full consideration and received the original title deeds from the seller would have taken possession under normal circumstances -- Any possession taken by any other party thereafter would be unauthorised and illegal.

(Para 32)

D. Violation of Injunction order – Alienation of the property in violation of the injunction order -- Sale deed would be a void document.

(Para 33)

2. (SC) 08-11-2024

A. Specific Relief Act, 1963 (47 of 1963), Section 10, 16 -- Limitation Act, 1963 (36 of 1963), Article 54 – Suit for specific performance – Limitation -- Limitation prescribed by Article 54 sets in from the date when the petitioner received the reply refusing performance.

(Para 31)

B. Specific Relief Act, 1963 (47 of 1963), Section 10, 16(c) – Specific performance of agreement – Readiness and willingness – Purchaser paid a sum of Rs.11,30,00 as earnest money and paid Rs.13,00,000 on the same day by cheque and paid another Rs. 5,00,000 by Demand Draft -- If the petitioner was unwilling to perform the contract, he would not have paid nearly 75 percent of the sale consideration -- Petitioner with the payment of the additional sum above the earnest money, has proved his readiness and willingness to perform the contract -- Fit case for to exercise discretion to direct specific performance.

(Para 42)

C. Transfer of Property Act, 1882 (4 of 1882), Section 52 – Lis panders -- Doctrine of lis pendens that Section 52 of the Transfer of Property Act encapsulates, bars the transfer of a suit property during the pendency of litigation -- The only exception to the principle is when it is transferred under the authority of the court and on terms imposed by it -- Where one of the parties to the suit transfers the suit property (or a part of it) to a third-party, the latter is bound by the result of the proceedings even if he did not have notice of the suit or proceeding.

(Para 47)

D. Transfer of Property Act, 1882 (4 of 1882), Section 52 – Object of doctrine of lis pendens -- Purpose of lis pendens is to ensure that the process of the court is not subverted and rendered infructuous --  In the absence of the doctrine of lis pendens, a defendant could defeat the purpose of the suit by alienating the suit property.

(Para 49)

E. Transfer of Property Act, 1882 (4 of 1882), Section 52 – Lis pendens – Review -- Pendency means -- Review proceedings were “instituted” within the period of limitation of thirty days –  Doctrine of lis pendens kicks in at the stage of “institution” and not at the stage when notice is issued by this Court -- Argument of the respondents that the doctrine of lis pendens does not apply because the petition for review was lying in the registry in a defective state cannot be accepted.

(Para 49)

6. (P&H HC) 17-09-2024

A. Punjab Tenancy Act, 1887 (XVI of 1887), Section 4(3)(5)(6) – Landlord -- Tenant -- Gair marusi tenant -- Merely because appellant is recorded as ‘Gair Maurusi’ in the revenue record, does not mean that he is a tenant over the suit property – There can be no tenancy unless there is a condition of payment of rent, though the rent may be payable in cash, kind or service etc. -- Held, it is inconceivable that there can be any tenancy without the condition of payment of rent, unless there is a contract to the contrary, absolving the tenant the liability to pay rent.

(Para 14, 15)

B. Punjab Tenancy Act, 1887 (XVI of 1887), Section 4(3)(5)(6) – Gair marusi tenant – Trespasser -- Adverse possession -- A party to the litigation cannot be allowed to take contrary stands to suit his convenience -- When in the earlier two litigations, it was ordered by the courts that appellant could be dispossessed in due course of law, he changed the stand in next litigations taking contrary plea that he had become owner of suit property by adverse possession -- In none of the earlier litigations decided earlier, he has been held to be tenant in the suit land, though his plea of possession has been upheld with further direction that he cannot be dispossessed except in due course of law – No evidence that tenancy was ever created and as such, his possession over the suit land is nothing less than that of a stranger / trespasser.

(Para 19)

C. Punjab Tenancy Act, 1887 (XVI of 1887), Section 4(3)(5)(6) – Punjab Security of Land Tenures Act, 1953 (10 of 1953), Section 9 --  Tenant of land – Eviction -- Jurisdiction of civil court --  When the person is inducted as a tenant on payment of rent and the rent is not paid --  Civil Court will not have jurisdiction and the landlord will have to seek his remedy before the Revenue Authorities to seek ejectment of such tenant or a tenant holding over, under the provisions of Punjab Tenancy Act, 1887 to be read with the provisions Punjab Security of Land Tenure Act.

(Para 22)

D. Punjab Tenancy Act, 1887 (XVI of 1887), Section 4(3)(5)(6) – Punjab Security of Land Tenures Act, 1953 (10 of 1953), Section 9 --  Gair marusi tenant – Suit for possession – Jurisdiction of civil court --  When the possession of person concerned on the suit land is without payment of rent, such as person is no more than a stranger or trespasser over the suit property -- In such a situation, his possession, howsoever long it may be, cannot be considered in the capacity of tenant in view of the definition of ‘landlord’, ‘tenant’ and ‘rent’ -- In this eventuality, it is only the Civil Court, which will have the jurisdiction to pass the decree of possession in favour of the landlord – Suit for possession decreed.

(Para 22, 23)

10. (SC) 06-09-2024

A. Consumer Protection Act, 1986 (68 of 1986), Section 21 -- Limitation Act, 1963 (36 of 1963), Section 18, 19 -- Offer of possession made on 04.02.2014 -- ADA issued reminders to the appellant on 22.09.2014, 21.11.2014 and 17.01.2018 -- Additionally, ADA accepted the appellant's payment of Rs. 3,43,178/- on 20.06.2019 without any reservations -- NCDRC correctly applied Sections 18 and 19 of the Limitation Act, 1963, which extend the limitation period where part payments or acknowledgments are made -- Consequently, the cause of action continued to exist, and the filing of the complaint in July 2020 is within the limitation period.

(Para 16)

B. Consumer Protection Act, 1986 (68 of 1986), Section 21 -- Pecuniary jurisdiction -- Respondent ADA challenged the pecuniary jurisdiction of the NCDRC, contending that the total payment made by the appellant amounted to Rs. 59,97,178/-, which was less than Rs. 1 crore -- Claim made by the appellant also included compensation for mental agony, harassment, and loss of income, which brought the total claim well above Rs. 1 crore -- In consumer disputes, the value of the claim is determined not just by the amount deposited but by the aggregate relief sought, which includes compensation and other claims -- NCDRC rightly held that it had the requisite pecuniary jurisdiction to entertain the complaint, and this Court affirms that finding.

(Para 18, 19)

C. Consumer Protection Act, 1986 (68 of 1986), Section 21 -- Real Estate (Regulation and Development) Act, 2016 (16 of 2016), Section 19(10) -- Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Act, 2010 (U.P. Act No. 16 of 2010), Section 4(5) -- Offer of possession -- Completion certificate -- Firefighting clearance certificate – Requirement of -- A developer must obtain these certificates before offering possession -- Possession offered without the requisite completion certificate is illegal, and a purchaser cannot be compelled to take possession in such circumstances -- ADA’s failure to provide the required certificates justifies the appellant’s refusal to take possession --  Entire amount deposited by the appellant ordered to be refunded with interest 9% per annum from the date of complaint till the date of refund, the ADA is directed to pay an additional amount of Rs. 15,00,000/- (Fifteen Lakhs only) to the appellant.

(Para 20-23)

25. (Allahabad HC) 16-07-2024

A. Code of Civil Procedure, 1908 (V of 1908), Order 18 Rule 4 – Provincial Small Cause Courts Act, 1887 (9 of 1887), Section 25 -- Transfer of Property Act, 1882 (4 of 1882), Section 106 -- Termination of lease – Suit for eviction, and recovery of rent and damages for use and occupation -- Ex-parte proceedings -- In ex-parte proceedings the Court is required to test the case of the plaintiff and not merely believe whatever has been stated in the plaint.

-- Impugned order records that the Defendants/Revisionists had filed written statement however, at the stage of evidence did not file any evidence in support of his written statement or in rebuttal of the plaint nor examined the plaintiff witnesses.

-- Defendants/ Revisionists also did not appear at the time of arguments and the case in such circumstances proceeded ex-parte against the Defendants/ Revisionists.

– Plaintiff/ Respondent filed the certified copy of the registered Lease Agreement executed between the parties.

-- Notice u/s 106 of the Transfer of Property Act, Postal receipts showing service of the Notice upon the Defendants/ Revisionists, photocopies of the cheques along with the Bank return memos showing insufficient funds in the Bank account of the Defendants/ Revisionists.

Evidence of the Plaintiff/ Respondent stood unrebutted -- Taking note of the above in the absence of any contest from the Defendants/ Revisionists learned Judge Small Causes Court proceeded to decree the suit of the Plaintiff/Respondent -- No illegality in the procedure adopted by the learned Judge Small Causes Court in decreeing the Suit of the Plaintiff/Respondent -- Findings recorded by the learned JSCC calls for no interference.

(Para 25-28, 39-41)

B. Indian Evidence Act, 1872 (1 of 1872), Section 63(2)(3), 65, 74 -- Registration Act, 1908 (16 of 1908), Section 57 -- Certified copy of registered lease deed – Admissibility in evidence –  Certified copy of the Lease Agreement will fall under the category of secondary evidence – Certified copy of the Lease Agreement is a Public Document, as contemplated u/s 74 and in terms of the 3rd Proviso to Section 65(e) or 65(f) the certified copy is admissible in evidence -- Sub Section 5 of Section 57 of the Registration Act provides that certified copy given u/s 57 of the Registration Act shall be admissible for the purpose of proving the contents of its original document -- Rightly relied while decreeing the Suit.

(Para 29-34)

27. (P&H HC) 12-07-2024

A. Hindu Succession Act, 1956 (30 of 1956), Section 6, 8 -- Coparcenary property -- Mutation was sanctioned in accordance with Section 8 of the Hindu Succession Act, 1956 -- The property can no longer be claimed to be a coparcenary.

(Para 4.5)

B. Indian Succession Act, 1925 (39 of 1925), Section 63 – Drafting of Will -- Attestation of Will – Presence of witnesses – Knowledge of contents – Requirement of -- Will is required to be executed in the presence of witnesses or they should receive acknowledgment from the testator that he has signed it.

-- Drafting of the Will and the typing of the Will in the presence of witnesses is not necessary.

-- Will shall be attested by two or more witnesses, each of whom has either seen the testator’s sign or affixed his mark to the Will or has received acknowledgment from the testator that he has signed the Will.

-- Both the witnesses are not required to be simultaneously present at one place.

-- Witnesses are not required to know the contents of the Will -- They are required to attest the signatures of the testator.

(Para 4.17)

C. Hindu Succession Act, 1956 (30 of 1956), Section 6, 8 -- Coparcenary property – The property not come through male lineal descendants -- In between, there was a civil court decree, transfer deed of some property – The Property was inherited u/s 8 of the Hindu Succession Act, 1956 and not as a coparcenary property – The property received from different sources including ownership by way of adverse possession as well as receipt of the property from aunt – Held, the property is not coparcenary.

(Para 4.21, 4.22)

30. (P&H HC) 03-07-2024

A. Code of Civil Procedure, 1908 (V of 1908), Order 39 Rule 1 & 2 – Temporary injunction -- Before granting injunction, the court is required to apply three well known tests namely;

a) prima facie case in favour of the plaintiffs

b) balance of convenience

c) irreparable loss and injury which the party may suffer if the injunction is not granted.

(Para 8)

B. Code of Civil Procedure, 1908 (V of 1908), Order 39 Rule 1 & 2 – Temporary injunction – Joint owner -- Property is situated in an area which is being used for running a small scale industry -- No dispute that previously the defendants were utilising the area by constructing a shed with iron sheets -- Defendants have installed their machinery to carry out work of laundry and steam press -- Even if the defendants are permitted to put new iron or cemented sheets over the pillars, there will be no permanent change in the nature of the property -- Defendants stated that if suit is decreed and suit property falls in the share of the plaintiffs, they will not claim any compensation for the construction.

-- Decision of the suit is likely to take a long time and if the parties are not permitted to use the property, it will lead to wastage of resources.

-- If the plaintiffs succeed they will get the property with construction.

-- Parties are yet to lead evidence.

Held, Courts below have erred in obstructing the defendants from completing the renovation/ re-construction of the shed by granting injunction.

(Para 9, 10)

31. (P&H HC) 02-07-2024

A. Specific Relief Act, 1963 (47 of 1963), Section 9 -- Punjab Tenancy Act, 1887 (XVI of 1887), Section 51 – Civil suit for possession of agricultural land -- Ejectment of tenant -- Denying title of landlord – Effect of – Jurisdiction of civil Court -- If defendants denied the title of the plaintiffs in the written statement by taking a specific plea to the effect, that will be sufficient to hold that they had denounced the title of the plaintiff -- Civil Court will have the jurisdiction to entertain the suit for possession.

(Para 10)

B. Specific Relief Act, 1963 (47 of 1963), Section 9 -- Limitation Act, 1963 (36 of 1963), Section 27 -- Punjab Tenancy Act, 1887 (XVI of 1887), Section 51 – Tenancy of agricultural land – Adverse possession – Plea of -- Effect of – Finding beyond pleadings – Permissibility of -- At no point of time, defendants ever claimed to be tenants on the suit land -- Their consistent stand taken in the written statement is that they are in possession of the suit land and had perfected their title by way of adverse possession -- Their plea of adverse possession has not been found as correct -- The First Appellate Court on its own, made out a new case for the defendants by holding them to be tenants on the suit land -- The First Appellate Court could not travel beyond the pleadings of the parties -- Even the evidence, led beyond the pleadings of the parties, could not be appreciated in that direction -- Suit decreed.

(Para 11, 13)

33. (P&H HC) 24-06-2024

Specific Relief Act, 1963 (47 of 1963), Section 16 – Transfer of Property Act, 1882 (4 of 1882), Section 41 -- Code of Civil Procedure, 1908 (V of 1908), Order 8 Rule 6 – Agreement to sell by brother/ attorney after death of Owner -- Plaintiffs asserted in the plaint, specifically that brother/ attorney of owner received payments from various vendees -- While filing the written statement there is no specific denial to the assertion -- In the absence of specific denial, the pleadings are deemed to have been admitted -- Moreover, two daughters of Owner while appearing in evidence, have not disputed the payment – Attorney died, children of attorney have not stepped into the witness box -- It will not be appropriate to hold that the plaintiffs have failed to prove the payment of the entire sale consideration.

-- Colony has already been carved out on the disputed property.

-- If specific performance of the agreement to sell is granted chances are that the plaintiffs would complete the colony by providing all the requisite facilities to the residents/ plot buyers.

-- Heirs of owner/ principal are settled in England and for the last 25 years, they have never bothered to take care of their property after their father passed away in the year 1991, hence, no equity lies in their favour.

-- From the testimony of both the daughters of owner, it is evident that they always treated agreement to sell to be the complete sale of the suit property.

Plaintiffs are not guilty of committing any default which may disentitle them the relief of specific performance of the agreement to sell as they being third parties unaware of the death of principal were bonafide purchasers -- Relief of specific performance of the agreement to sell granted.

(Para 1.5, 6-8.1)

46. (SC) 03-05-2024

A. Transfer of Property Act, 1882 (4 of 1882), Section 52 -- Doctrine of lis pendens -- Object underlying the doctrine of lis pendens is for maintaining status quo that cannot be affected by an act of any party in a pending litigation -- The objective is also to prevent multiple proceedings by parties in different forums -- The principle is based on equity and good conscience.

(Para 16)

B. Transfer of Property Act, 1882 (4 of 1882), Section 1, 52 -- Doctrine of lis pendens – Applicability of -- By virtue of Section 1 of the Transfer of Property Act, 1882 the provisions of the said Act are not applicable in the States of Punjab, Delhi or Bombay; subject, of course to certain exceptions -- In the case of Kanshi Ram v. Kesho Ram, AIR 1961 P&H 299 the Punjab and Haryana High Court has held that since the explanation to Section 52 is based on equity and good conscience this principle can be applicable -- Even if Section 52 of T.P Act is not applicable in its strict sense then too the principles of lis pendens, which are based on justice, equity and good conscience, would certainly be applicable.

(Para 17)

C. Transfer of Property Act, 1882 (4 of 1882), Section 52 -- Doctrine of lis pendens – Pendency of a suit shall be deemed to have commenced from the date on which the plaintiff presents the suit -- Such pendency would extend till a final decree is passed and such decree is realised.

(Para 18)

D. Transfer of Property Act, 1882 (4 of 1882), Section 52 -- Doctrine of lis pendens – Suit for permanent injunction was filed prior to the execution of release deed -- Since the release deed is executed after the suit for temporary injunction was filed by the appellant, the alienation made would be covered by the doctrine of lis pendens.

(Para 19)

E. Transfer of Property Act, 1882 (4 of 1882), Section 41, 52 -- Doctrine of lis pendens – Bonafide purchaser -- Once it has been held that the transactions executed by the respondents are illegal due to the doctrine of lis pendens the defence of the respondents 1-2 that they are bonafide purchasers for valuable consideration and thus, entitled to protection under Section 41 of the Act of 1882 is liable to be rejected.

(Para 21)

48. (HP HC) 29-04-2024

A. Code of Civil Procedure, 1908 (V of 1908), Section 39 Rule 1, 2 & 3 – Temporary injunction – Notice to opposite party – Requirement of -- It is mandatory for the Court to direct notice of the application filed under Rules 1 and 2 of Order 39 to be given to the opposite party except where it appears to the Court that object of granting injunction would be defeated by delay -- Notice mandated under Rule 3 cannot be a mere formality -- It has to be reasonable notice and the opposite party is entitled to make itself response within reasonable period.

(Para 26)

B. Code of Civil Procedure, 1908 (V of 1908), Section 39 Rule 1, 2 & 3 – Interim mandatory injunction – Installation of electric connection as interim relief -- Ld. trial Court hastened to pass an interim order in mandatory form which in fact is peri-materia to the prayer as made in the main suit -- Impugned order does not record any reason as to what urgency was seen by the learned trial Court in passing the impugned order on the same day on which the application was filed -- Thus, there is serious non-compliance of Rule 3, Order 39 of the CPC and the manner in which learned trial Court has conducted itself definitely is not confirming to the basis principles of judicial procedure and propriety -- Impugned order set aside with direction to the parties to maintain status quo ante as on the date of passing of the impugned order with respect to the installation of electricity connection.

(Para 10, 26, 27)