Search By Topic: Property Dispute Cases

152. (SC) 09-11-2022

A. Specific Relief Act, 1963 (47 of 1963), Section 16 -- Suit for specific performance – Readiness and willingness -- High Court non-suited the appellant-original plaintiff on the ground that as the post-dated cheque of Rs. 35 lakhs was returned which was towards part sale consideration and tendering the worthless post-dated cheque cannot be said to be tendering the payment and therefore, there was no concluded contract between the parties -- By observing so, the High Court has refused to go into the aspect of the readiness and willingness on the part of the plaintiff – Held, at the time when the post-dated cheque of Rs. 35 lakhs was tendered the same cannot be said to be worthless cheque -- Post-dated cheque of Rs. 35 lakhs returned by the bank was with an endorsement i.e., “payment stopped by attachment order” as there was a raid conducted by the IT Department and the bank account was attached and therefore, the post-dated cheque was returned -- Therefore, the observation made by the High Court cannot be accepted.

(Para 4)

B. Specific Relief Act, 1963 (47 of 1963), Section 16 -- Suit for specific performance – Readiness and willingness – Framing of issue -- There must be a specific issue framed on readiness and willingness on the part of the plaintiff in a suit for specific performance and before giving any specific finding, the parties must be put to notice -- The object and purpose of framing the issue is so that the parties to the suit can lead the specific evidence on the same -- On the aforesaid ground the judgment and order passed by the learned Trial Court dismissing the suit and refusing to pass the decree for specific performance of the agreement to sell confirmed by the High Court deserves to be quashed and set aside and the matter is to be remanded to the learned Trial Court to frame the specific issue with respect to the readiness and willingness on the part of the plaintiff.

(Para 4.1)

154. (P&H HC) 04-11-2022

A. Indian Succession Act, 1925 (39 of 1925), Section 63 -- Indian Evidence Act, 1872 (1 of 1872), Section 68 -- Proof of Will – Suspicious circumstances – Burden to prove -- Mere proving of a Will does not establish the same to be valid in law, in case the same is surrounded by suspicious circumstances -- The beneficiary is not only required to discharge his burden to prove the Will; but is also to satisfy the conscious of the Court that there are no suspicious circumstances or if there are any, to explain them is also on the propounder of the Will -- It is only when such responsibility is discharged by the beneficiary, the Court can accept the Will to be genuine.

(Para 7)

B. Indian Succession Act, 1925 (39 of 1925), Section 63 -- Indian Evidence Act, 1872 (1 of 1872), Section 68 -- Will – Suspicious circumstances -- It is settled proposition of law that mere exclusion or dis-heritance of a natural heir while executing a Will is not to be taken as a suspicious circumstance as the very purpose of execution of a Will is to divert from the line of natural succession -- However, it has also been settled and expounded upon by the Hon’ble Supreme Court in catena of judgments that any unnatural, improbable or unfair disposition made in the Will has to be considered as a suspicious circumstance.

(Para 9)

C. Indian Succession Act, 1925 (39 of 1925), Section 63 -- Indian Evidence Act, 1872 (1 of 1872), Section 68 -- Will – Suspicious circumstances -- Respondent happened to be the legally wedded wife of deceased, neither the testator has recorded the factum of his marriage with the respondent in the Will; nor even her name has been mentioned therein -- More than that, no provision has even been made for her maintenance particularly under the circumstances wherein it has been established/ proved on record that the relationship between the husband and wife remained amicable throughout – From cumulative effect of the aforesaid facts and circumstances, one can easily see through that the testator’s mind was not free at the time of making disposition of Will.

(Para 9-14)

156. (P&H HC) 14-10-2022

A. Code of Civil Procedure, 1908 (V of 1908), Section 9 -- Multiple cause of action – Civil suit – Limitation -- Suit can be filed within three years from the accrual of the initial cause of action, however, any successive violation of rights after institution of the suit would not give fresh cause of action to file a suit -- If the suit is based on multiple causes of action, the period of limitation would commence from the date when the right to sue first accrued.

(Para 13)

B. East Punjab Holdings (Consolidation and Prevention of Fragmentation) Act, 1948 (50 of 1948), Section 44 -- Code of Civil Procedure, 1908 (V of 1908), Section 9 – Consolidation proceedings -- Jurisdiction of civil court -- Consolidation Authorities allotted 15 kanal 5 marla land of lesser value to the defendant as per his entitlement in lieu of 7 kanal 12 marla of standard land during consolidation -- Plaintiff till date has not challenged the order of Consolidation Authorities -- In case, the plaintiff was aggrieved by any such order, he should have challenged it before the authorities empowered under the Consolidation Act, which admittedly was not done -- Jurisdiction of the Civil Court barred -- Civil Court cannot derive jurisdiction beyond the statute by merely giving it a colour for a suit of declaration.

(Para 15)

C. Haryana Land Revenue Act, 1887 (XVII of 1887), Section 34, 44 -- Code of Civil Procedure, 1908 (V of 1908), Section 9 -- Mutation – Jurisdiction of civil Court -- Mutation is only entered to update the revenue records and it not being a document of title does not confer any right on any person whatsoever -- Correctness of mutation cannot be challenged by plaintiff in a civil suit.

(Para 16)

D. Code of Civil Procedure, 1908 (V of 1908), Section 9 -- Specific Relief Act, 1963 (47 of 1963), Section 34 -- Maintainability of suit for simplicitor declaration -- If the plaintiff is not in possession of the suit land, he cannot file a simpliciter suit for declaration and injunction without claiming possession thereof.

(Para 20)

160. (SC) 20-09-2022

A. Hindu Succession Act, 1956 (30 of 1956), Section 4(2) – Delhi Land Reforms Act, 1954 (8 of 1954), Section 50(a) – Constitution of India, Article 254 – Challenge to Section 50(a) of Delhi Reforms Act, 1954 – Repugnancy in two Acts -- Concurrent list III -- Question of repugnancy would not come into existence unless it is first established that both enactments are under the Concurrent list (List III) – 1954 Act is not referable to any matter enumerated in List III but it is referable to Entry 18 of List II -- Thus, no question of repugnancy would arise in view of Article 254 of the Constitution.

(Para 18, 19)

B. Hindu Succession Act, 1956 (30 of 1956), Section 4(2) – General Clauses Act, 1897 (10 of 1897), Section 6(b) (c) -- Repeal of Section 4(2) of Hindu Succession Act, 1956 – Prospective effect -- Deletion of Section 4(2) took place w.e.f 09.09.2005 therefore, the effect of the deletion can only be in respect of successions which opened on or after 09.09.2005 -- This is because under Section 6(b) and 6(c) of the General Clauses Act repeal cannot affect the previous operation of any enactment so repealed and cannot affect any right which may have been acquired or accrued.

(Para 23-25)

C. Hindu Succession Act, 1956 (30 of 1956), Section 4(2) – Delhi Land Reforms Act, 1954 (8 of 1954), Section 50(a) – Repeal of Section 4(2) of Hindu Succession Act, 1956 w.e.f. 09.09.2005 – Prospective effect -- Property in question is agricultural property, and therefore, in 1997 on death, the devolution of interest (inheritance) would be determinable on the said date, in accordance with the law existing at that time -- Subsequent deletion would not have any impact on the rights of inheritance, which had already accrued and crystallised, prior to the amendment -- Even existence of Section 4(2) in the 1956 Act and its deletion will not have any impact for the reason that the 1954 Act, is a special law, dealing with fragmentation, ceiling, and devolution of tenancy rights over agricultural holdings only, whereas the 1956 Act is a general law, providing for succession to a Hindu by religion as stated in Section 2 thereof -- Existence or absence of Section 4(2) in the 1956 Act would be immaterial.

(Para 21-26)

D. Delhi Land Reforms Act, 1954 (8 of 1954), Section 50(a) – Constitution of India, Article 14, 15, 21, 254 – Challenge to Section 50(a) of Delhi Reforms Act, 1954 -- Gender bias/ women empowerment  -- There can be no challenge to the 1954 Act as the said legislation is included in the Ninth Schedule of the Constitution of India.

(Para 28)

E. Amendment in statute -- Prospective effect -- It is well settled that all amendments are deemed to apply prospectively unless expressly specified to apply retrospectively or intended to have been done so by the legislature.

(Para 23)

162. (SC) 18-08-2022

Specific Relief Act, 1963 (47 of 1963), Sections 10, 16 (c), 20, 21, 22, 23 -- Suit for specific performance of contract – Alternative relief of refund -- Agreement to sell for two properties – Soon after, plaintiff came to know that defendant was likely to assign the properties to third parties, filed application for temporary injunction, thereafter, communicated his interest to pay balance sale consideration and requested for execution of sale deed -- Request denied by defendant -- Suit filed for specific performance decreed by Trial Court – Division Bench of High Court instead of decreeing the suit for specific performance allowed the alternative relief of refund of advance -- Direction was given to defendant to pay plaintiff along with interest @ 12% p.a. from date of agreement till realization and also to bear  entire cost of suit before Trial Court and High Court – High Court deny specific performance on account of the following reasons:

i) That a huge sum of Rs.50 lakhs was paid as cash to the defendant which covers almost major portion of the sale consideration. Under normal circumstances when huge amounts are involved, some payments are paid either by cheque or demand draft.

ii) Plaintiff is a person who is capable of purchasing the entire property by paying the entire sale consideration at one stretch. If he could pay fifty lakhs on 20.01.2005, he could have paid the balance amount within a short time.

iii) It is not known under what circumstance a period of four months had been stated for complying with the terms of contract.

iv) Plaintiff claims that he was put in possession of the property which appears to be incorrect. There is no evidence to prove the said fact.

v) Plaintiff is a person who does not know to read Malayalam, but still the agreement is executed in Malayalam.

vi) The agreement is written by PW3 who is an interested party to the transaction. He claims to have received commission from both the parties which is not the practice followed in such situations.

vii) Defendant has a contention that his intention was only to get a loan for which he had signed certain papers. But he further states that he did not receive the loan. According to him, he had not received any amount from the plaintiff which of course we don’t agree.

viii) The actual amount paid by the plaintiff to defendant can only be discerned from the agreement, the genuineness of which is doubted by the defendant.

ix) Exts. A5 and A5(a) though had been relied upon by the Court below, the manner in which the said documents are executed and the purpose is doubtful.

x) The intention of the defendant was to sell only one item of property as is evident from Exts.B1 and B2 advertisements. The advertisements were published on 1st January, 2005. A person who is in dire need of finances will either sell his property or he may take loan. Taking into account the factual circumstances, it is possible that a loan was arranged by the plaintiff for which a document in the nature of Ext.A1 was prepared.

Held, reasons given by High Court for not awarding relief of specific performance were sufficient -- Substantial justice was done by granting the  alternate relief.

(Paras 9-14)

167. (P&H HC) 18-05-2022

A. Indian Penal Code, 1860 (45 of 1860), Sections 417, 420, 467, 468 -- Code of Criminal Procedure, 1973 (2 of 1974), Section 401 -- Agreement to sell with complainant – Concealment of previous agreement – Conviction by Trial Court, affirmed by Appellate Court – Revision against -- In agreement to sell executed with the complainant, it was stated that there is no prior agreement pertaining to the land -- Vendee of prior agreement to sell/ PW-1 submitted that the agreement to sell was executed with him and that the civil suit filed for specific performance of the said agreement under the Specific Relief Act was decreed in his favour and consequently, the sale deed was executed in his favour – Claim of the petitioner that he did not intend to defraud the complainant is apparently misconceived -- No explanation has been given as to why a wrong statement was made by the petitioner under his signature in the agreement – It cannot be said that the dispute in question was civil in nature – No illegality, perversity, infirmity or impropriety in the judgments passed by the Courts below – Revision dismissed.

(Para 10-16)

B. Code of Criminal Procedure, 1973 (2 of 1974), Section 401 -- Revisional jurisdiction -- Restricted to examine whether there is any manifest error of law or procedure, such a power is to be exercised only when there is an apparent illegality, gross procedural irregularity or impropriety leading to miscarriage of justice, legal infirmity or gross mis-appreciation of the evidence that does not reconcile to the conclusion drawn by the Court -- High Court in a revisional jurisdiction would not interfere in the opinion of the Courts below if such an opinion is a possible opinion on the basis of the evidence brought on record and would not substitute its own opinion merely because such opinion is also a possible opinion.

(Para 15)

181. (SC) 03-03-2022

A. Specific Relief Act, 1963 (47 of 1963), Section 34, 37, 38 -- Suit for declaration and permanent injunction -- Injunction against true owner -- Plaintiff failed to get any declaratory relief and the defendant No.1 is held to be a true and absolute owner on the basis of the registered sale deed on payment of full sale consideration thereafter the plaintiff’s possession cannot be said to be “lawful possession” -- Plaintiff is not entitled to any permanent injunction against the true owner.

(Para 10)

B. Specific Relief Act, 1963 (47 of 1963), Section 34, 37, 38 -- Substantive relief – Consequential relief -- Once the plaintiff has failed to get any substantive relief of cancellation of the sale deed and failed to get any declaratory relief, relief of injunction can be said to be a consequential relief must fail.

(Para 11)

C. Specific Relief Act, 1963 (47 of 1963), Section 34, 37, 38 -- Suit for declaration -- Consequential relief of injunction – Injunction against true owner -- It is not a suit for declaration simpliciter, it is a suit for declaration with a further relief -- Injunction may be granted even against the true owner of the property, only when the person seeking the relief is in lawful possession and enjoyment of the property and also legally entitled to be in possession, not to disposes him, except in due process of law -- Once the rights of the parties are adjudicated and the defendant No.1 is held to be the true owner on the basis of the registered sale deed and on payment of full sale consideration, it can be said that due process of law has been followed and thereafter the plaintiff is not entitled to any permanent injunction against the true owner.

(Para 11.1-12.1)

183. (P&H HC) 10-09-2021

A. Specific Relief Act, 1963 (47 of 1963), Section 37 -- Suit for permanent injunction -- Question of title – Requirement of – In suit for grant of permanent injunction, where the main thing to be seen is as to whether the plaintiff has been in established possession of the suit land -- Question of title is not to be decided in such type of suit -- Nevertheless, the document of title to the suit property produced in evidence on behalf of any of the parties can certainly be taken into consideration to find out the nature of possession.

(Para 10)

B. Code of Civil Procedure, 1908 (v of 1908), Section 151 -- Exhibition of documents – Replacement by original – Permissibility of -- Plaintiff placed on record copy of the sale deed, duly attested by Notary Public, which had been exhibited, though, it was subject to objection with regard to mode of proof and admissibility raised on behalf of the defendant -- Plaintiff sought to place on record the original sale deed and to exhibit it just to remove the technical objection -- Trial Court considering all the aspects of the case, exercising powers u/s 151 CPC had allowed that application -- Such exercise of power by the trial Court can certainly be not termed as arbitrary or perverse, rather, it comes out that such power has been exercised in a judicious manner for proper adjudication of the controversy between the parties.

(Para 10)

C. Code of Civil Procedure, 1908 (v of 1908), Section 151 -- Inherent power of civil Court – Nature of -- It is a very vast power, which can be exercised by the Court for achieving ends of justice and to prevent abuse of process of the Court -- Unnecessary interference in exercise of such power by the trial Court is uncalled for.

(Para 11)

186. (P&H HC) 23-04-2021

A. Specific Relief Act, 1963 (47 of 1963), Section 14 -- Agreement to sell – Property already mortgage with bank – Criminal proceedings initiated – Effect on civil rights -- Merely because the plaintiff had also preferred criminal proceedings on the ground that the accused had taken bank loan from Bank but had entered into an agreement with him to sell the property, and he had been cheated, would not be a ground to deny the benefit of the decree to him – Appellant/accused acquitted by giving benefit of doubt in criminal proceedings – Suit decreed by civil court, upheld.

(Para 1, 13)

B. Evidence beyond Pleadings – Permissibility of -- It is settled principle that evidence beyond the pleadings cannot be taken into consideration.

(Para 17)

C. Specific Relief Act, 1963 (47 of 1963), Section 14, 16(1)(c) – Specific performance of agreement -- Readiness and willingness – Earnest money and additional amount of Rs.8.5 lacs paid -- Plaintiff prepared D.D. of Rs.13,50,000/-, balance consideration before the cut-off date and purchased stamp papers worth Rs.1,54,000/- -- Filing of the suit was also within a month and a half after serving a legal notice asking the appellant to execute the sale deed -- All these factors combined would go on to show that the Courts below have justifiably decreed the suit in favour of the plaintiff.

(Para 2, 18)

D. Code of Civil Procedure, 1908 (V of 1908), Order 6 Rule 4 -- Evidence law -- Execution of agreement to sell – Willingness of -- Wife of the appellant opposed the agreement by approaching the police -- Appellant himself applied for NOC to sell the property --  These factors would go on to show that the agreement had been entered into for the sale of the said property -- Almost 1/3rd of the amount had been received in advance and therefore, it would not lie in the mouth of the appellant to contend that the same had not been executed by him willingly.

(Para 19)

E. Code of Civil Procedure, 1908 (V of 1908), Order 6 Rule 4 -- Misrepresentation – Undue influence – Proof of – It is settled principle that allegations of misrepresentation or undue influence have to be given in full and precise particulars and then duly proved under Order 6 Rule 4 CPC.

(Para 20)

198. (SC) 18-12-2020

A. Transfer of Property Act, 1882 (4 of 1882), Section 111, 114, 114A – Ejectment of lessee – Forfeiture for non-payment of rent -- U/s 114A of the TP Act a condition for issue of notice prior to filing suit of ejectment is provided so as to enable the lessee to remedy the breach – Held, same cannot be construed as a statutory protection nor as a hard and fast rule in all cases to waive the forfeiture -- It is a provision enabling exercise of equitable jurisdiction in appropriate cases as a matter of discretion.

(Para 15)

B. Transfer of Property Act, 1882 (4 of 1882), Section 111, 114, 114A – Arbitration and Conciliation Act, 1996 (26 of 1996) -- Ejectment of lessee -- Forfeiture for non-payment of rent – Arbitration jurisdiction -- If the special statutes do not apply to the premises/property and the lease/tenancy created thereunder as on the date when the cause of action arises to seek for eviction or such other relief and in such transaction if the parties are governed by an Arbitration Clause; the dispute between the parties is arbitrable and there shall be no impediment whatsoever to invoke the Arbitration Clause – It would be open for the Arbitrator to take note of Section 114, 114A of TP Act and pass appropriate award in the nature as a Court would have considered that aspect while exercising the discretion.

(Para 16, 18)

C. Arbitration and Conciliation Act, 1996 (26 of 1996) -- Protection of Rent Control legislation – Eviction of tenants – Arbitration jurisdiction – Insofar as eviction or tenancy relating to matters governed by special statutes where the tenant enjoys statutory protection against eviction whereunder the Court/Forum is specified and conferred jurisdiction under the statute alone can adjudicate such matters -- Hence in such cases the dispute is non-arbitrable.

(Para 17, 18)

200. (SC) 08-12-2020

A. Transfer of Property Act, 1882 (4 of 1882), Section 122, 23 – Gift deed – Acceptance by donee --  Section 122 of the TP Act, 1882 neither defines acceptance, nor does it prescribe any particular mode for accepting the gift – Aforesaid fact can be ascertained from the surrounding circumstances such as taking into possession the property by the donee or by being in the possession of the gift deed itself -- Only requirement stipulated here is that, the acceptance of the gift must be effectuated within the lifetime of the donor itself – Being an act of receiving willingly, acceptance can be inferred by the implied conduct of the donee.

(Para 24-27)

B. Transfer of Property Act, 1882 (4 of 1882), Section 122, 23 – Gift deed – Acceptance by donee --  Recitals clearly indicate that donor intended to part with ownership and possession immediately after the execution of the gift deed -- Mutation entry in the Revenue Record clearly reflects that half portion of appellant's land was bestowed as a gift by the appellant to his son through a registered instrument of gift -- Statement rendered by the appellant-donor before the Court of Additional District Magistrate indicates that the donee was already a major at the time of the execution of the gift deed and after execution of the gift deed the donee started cultivating on the same -- Aforesaid statement of the appellant-donor is completely supported by the statement made by the donee before the Court of Additional District Magistrate -- Donee clearly stated that, the land was transferred to him by virtue of gift deed was under his possession and he was cultivating the same – Held, therefore, there was an acceptance of the gift by the donee during the lifetime of the donor.

(Para 28-32)

C. Transfer of Property Act, 1882 (4 of 1882), Section 122, 23 – Registered Gift deed – Challenge to -- Respondents failed to bring on record any evidence to rebut the fact that the donee was in enjoyment of the property -- Plausible view was taken that, it was a transfer between a father and a son and there was a valid acceptance of the gift when the donee-son started living separately -- Lastly, it ought to be noted that apart from the point of acceptance by the donee, since the deed is registered, bears the signature of the donor and has been attested by two witnesses, the requirements u/s 123 of the TP Act, 1882 have been satisfied.

(Para 33)

D. Rajasthan Tenancy Act, 1955 (Rajasthan Act No. 3 of 1955), Section 30D, 30DD – Transfer by gift deed -- Protection from land ceiling -- If the appellant succeed in its endeavor to establish that the transfer was covered u/s 30DD of the Tenancy Act of 1955, then such transferred land has to be exempted from computation of confiscable land, irrespective of the fact that it falls within the ceiling limit as prescribed under Section 30D of the Tenancy Act of 1955.

(Para 43)

E. Rajasthan Tenancy Act, 1955 (Rajasthan Act No. 3 of 1955), Section 30C, 30D, 30DD -- Land ceiling area u/s 30C -- Transfer by registered gift-deed on 19.12.1963 – Protection from land ceiling -- It must be taken into consideration that, the aforesaid transfer was executed way before the cut-off date stipulated u/s 30DD i.e. 31.12.1969 -- Therefore, the registered gift deed dated 19.12.1963 was a bona fide transfer squarely covered within the ambits of Section 30DD, which intended to protect the rights of agriculturalists – Held, transfer is not invalid as it stands protected as per the provision of Section 30DD of the Tenancy Act of 1955.

(Para 46)

F. Rajasthan Imposition of Ceiling on Agricultural Holding Act, 1973 (Rajasthan Act No. 11 of 1973), Section 6 – Bonafide transfer – Protection from land ceiling -- Transfer of land by gift deed on 19.12.1963 -- There is no finding that the gift deed was actuated upon any extraneous consideration -- Hence, it constitutes a bona fide transfer which are exempted from the rigors of Section 6 of the Ceiling Act of 1973.

(Para 48)