Search By Topic: Property Dispute Cases

6. (SC) 17-12-2024

A. Violation of building approved plan – Regularisation of construction – Construction(s) put up in violation of or deviation from the building plan approved by the local authority and the constructions which are audaciously put up without any building planning approval, cannot be encouraged -- In the event of any violation being brought to the notice of the Courts, it has to be curtailed with iron hands and any lenience afforded to them would amount to showing misplaced sympathy -- Delay in directing rectification of illegalities, administrative failure, regulatory inefficiency, cost of construction and investment, negligence and laxity on the part of the authorities concerned in performing their obligation(s) under the Act, cannot be used as a shield to defend action taken against the illegal/unauthorized constructions – Regularization schemes must be brought out only in exceptional circumstances.

(Para 20)

B. Building approved plan – Occupation certificate – Amenities -- In the larger public interest, directions issued, in addition to the directives issued by this Court in Re: Directions in the matter of demolition of structures 2024 SCC OnLine SC 3291:

(i) While issuing the building planning permission, an undertaking be obtained from the builder/applicant, as the case may be, to the effect that possession of the building will be entrusted and/or handed over to the owners/beneficiaries only after obtaining completion/occupation certificate from the authorities concerned.

(ii) The builder/developer/owner shall cause to be displayed at the construction site, a copy of the approved plan during the entire period of construction and the authorities concerned shall inspect the premises periodically and maintain a record of such inspection in their official records.

(iii) Upon conducting personal inspection and being satisfied that the building is constructed in accordance with the building planning permission given and there is no deviation in such construction in any manner, the completion/occupation certificate in respect of residential / commercial building, be issued by the authority concerned to the parties concerned, without causing undue delay. If any deviation is noticed, action must be taken in accordance with the Act and the process of issuance of completion/occupation certificate should be deferred, unless and until the deviations pointed out are completely rectified.

(iv) All the necessary service connections, such as, Electricity, water supply, sewerage connection, etc., shall be given by the service provider / Board to the buildings only after the production of the completion/occupation certificate.

(v) Even after issuance of completion certificate, deviation / violation if any contrary to the planning permission brought to the notice of the authority immediate steps be taken by the said authority concerned, in accordance with law, against the builder / owner / occupant; and the official, who is responsible for issuance of wrongful completion /occupation certificate shall be proceeded departmentally forthwith.

(vi) No permission /licence to conduct any business/trade must be given by any authorities including local bodies of States/Union Territories in any unauthorized building irrespective of it being residential or commercial building.

(vii) The development must be in conformity with the zonal plan and usage. Any modification to such zonal plan and usage must be taken by strictly following the rules in place and in consideration of the larger public interest and the impact on the environment.

(viii) Whenever any request is made by the respective authority under the planning department/local body for co-operation from another department to take action against any unauthorized construction, the latter shall render immediate assistance and co-operation and any delay or dereliction would be viewed seriously. The States/UT must also take disciplinary action against the erring officials once it is brought to their knowledge.

(ix) In the event of any application / appeal / revision being filed by the owner or builder against the non-issuance of completion certificate or for regularisation of unauthorised construction or rectification of deviation etc., the same shall be disposed of by the authority concerned, including the pending appeals / revisions, as expeditiously as possible, in any event not later than 90 days as statutorily provided.

(x) If the authorities strictly adhere to the earlier directions issued by this court and those being passed today, they would have deterrent effect and the quantum of litigation before the Tribunal / Courts relating to house / building constructions would come down drastically. Hence, necessary instructions should be issued by all the State/UT Governments in the form of Circular to all concerned with a warning that all directions must be scrupulously followed and failure to do so will be viewed seriously, with departmental action being initiated against the erring officials as per law.

(xi) Banks / financial institutions shall sanction loan against any building as a security only after verifying the completion/occupation certificate issued to a building on production of the same by the parties concerned.

(xii) The violation of any of the directions would lead to initiation of contempt proceedings in addition to the prosecution under the respective laws.

(Para 21)

14. (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)

15. (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)

20. (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)

24. (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)

39. (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)

41. (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)

44. (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)

45. (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)

47. (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)