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Smt. Chandrakantaben, Wife Of Jayantilal Bapalal Modi v. Vadilal Bapalal Modi And Others

Smt. Chandrakantaben, Wife Of Jayantilal Bapalal Modi
v.
Vadilal Bapalal Modi And Others

(Supreme Court Of India)

Civil Appeals Nos. 418 and 520 (N) of 1973 | 30-03-1989


SHARMA, J.

1. These appeals are directed against the decision of the Gujarat High Court in an appeal arising out of a suit for partition instituted by respondent 1, Vadilal Bapalal Modi (since deceased).

2. The father of the plaintiff Vadilal was Bapalal who had 5 sons - the plaintiff, Ramanlal, Gulabchand, Kantilal and Jayantilal : and a daughter - Champaben. Gulabchand was impleaded as the first defendant in the suit and on his death his heirs and legal representatives have been substituted. Kantilal and Champaben are defendants 2 and 3 respectively. Ramanlal predeceased Bapalal and his wife and son are defendants 4 and 5. Jayantilal also died earlier and his wife Smt. Chandrakantaben, defendant 6 is the appellant in Civil Appeal No. 418 of 1973. Their children are defendants 7 to 12. Civil Appeal No. 520 of 1973 has been preferred by defendant 7, Narendra.

3. The suit by Vadilal was instituted in 1960, claiming share in the considerably large properties detailed in the schedule to the plaint, but the present appeals are not related to any other item excepting the property described as a chawl admeasuring 7 acres and 2 gunthas of land with 155 rooms and huts, situated in the Naroda locality in Ahmedabad under Lot No. 8 of the plaint which has been referred to be the counsel for the parties before us as the chawl or the Naroda chawl. According to the case of defendants 6 to 12, this property exclusively belongs to defendant 6 and is not liable to partition. The other defendants contested the claim of the plaintiff with respect to some other items, but so far the disputed chawl is concerned, they supported the plaintiffs case that it belonged to the joint family and is liable to partition.

4. The land of Lot No. 8 was acquired by Bapalal in 1932 for a sum of Rs. 9450 and the rooms were constructed thereon in about 1934. It has been held by the High Court, and the finding has not been challenged before us, that Bapalal acquired the property and built the chawl with the aid of ancestral joint funds, and the property, therefore, belonged to the family. Accordingly to the case of defendants 6 to 12, Bapalal orally gifted the property to his daughter-in-law Chandrakanta defendant 6, in March 1946 and made a statement before the revenue authorities on the basis of which her name was mutated, and she was put in possession thereof. Admittedly 114 rooms in the Naroda chawl had been let out to tenants, and one room was retained for the caretaker. According to Chandrakantas case, although she came in peaceful possession, the management which included realisation of rent was in the hands of Gulabchand (defendant 1). It appears that in 1952 some dispute arose and Chandrakanta assumed direct charge of the Naroda chawl and has remained in possession thereafter. Thus she has been in exclusive possession of the disputed chawl; since 1946, and acquired good title therein by adverse possession before the suit was filed in 1960.

5. The learned Judge, City Civil Court, Ahmedabad, who tried the suit, held that Bapalal and his sons constituted a joint Hindu family and the business carried on by Bapalal was for the benefit of the family and the income from the business was thrown in the common pool and all the properties including the disputed chawl were treated as belonging to the family. Proceeding further it has been found that the case of defendant 6 about the gift, the mutation of her name, and her exclusive possession from 1946 till the date of the suit was correct. She was accordingly held to have acquired a title by adverse possession. The suit, therefore, was dismissed with respect to the disputed chawl. For the purpose of the present appeal it is not essential to mention the findings of the trial court relating to the other items of the suit property. The plaintiff appealed before the Gujarat High Court. Some of the defendants also filed two separate appeals against the judgment of the trial court dealing with other items of property with which we are not concerned. The appeals were heard and disposed of together by a common judgment in November 1972. The High Court reversed the finding of adverse possession in regard to the disputed chawl and granted a decree for partition. It was held that defendant 6 remained in exclusive possession of the property only since 1952 and the period was thus short of the time required for prescription of title. Dealing with the relief for rendition of accounts, the court held that since the rents of the chawl from 1952 were collected Jayantilal, Chandrakantas husband and after his death by her son Narendra (defendant 7), Chandrakanta was liable to render accounts till the death of her husband and she along with defendant 7 would be jointly liable of the period thereafter. The present appeals are directed against this judgment.

6. According to the case of defendant 6, her husband, Jayantilal, used to indulge in speculative business and he was, therefore, not considered a dependable persons. To ensure economic stability of Chandrakanta and her children, her father-in-law, Bapalal decided to make a gift of the Naroda chawl to her. Both Bapalal and Chandrakanta appeared before the Talati of Naroda on March 5, 1946 and made statements. The original statement of Bapalal recovered by the Talati and signed by Bapalal was produced and marked as Ex. 268 in the trial court and similarly the statement of Chandrakanta as Ex. 269. Bapalal has stated in Ex. 268 that Chandrakanta had loyally served him and, therefore, he was making the gift. A prayer was made for substitution of her name in the revenue records. A similar prayer was made by the lady in Ex. 269. The extract from the Record of Rights is Ex. 247 which mentions Bapalal as the occupant of the Naroda chawl. The entry was made in May 1933. This entry appears to have been within brackets and a second entry inserted mentioning Chandrakanta wife of Jayantilal Bapalal. Mr. B. K. Mehta, the learned counsel for the appellant has strongly relied upon the revenue entry as proof of her title. Reference was made to the decision in Gangabai v. Fakirgowda Somaypagowda Desai (AIR 1930 PC 93 [LQ/PC/1929/123] : 58 MLJ 322 [LQ/PC/1929/123] : 57 IA 61) and Desai Navinkant Kesarlal v. Prabhat Kabhai (9 Guj LR 694). It was pointed out by the learned counsel that in the Privy Council case also the revenue records, which were under consideration, were prepared under the Bombay Land Revenue Code, that is the same Code under which Ex. 247 was prepared and it was observed in the judgment that the revenue entry furnished presumptive evidence of title. The Gujarat case (9 Guj LR 694) also indicated that a presumption as to the rights in the concerned property arose in favour of the person whose name was entered. We are not very much impressed by this part of the argument of the learned counsel as it cannot be denied that title to Naroda chawl could not have passed to defendant 6 by virtue of the entry Ex. 247. The value of the chawl even in 1946 was large and no registered instrument of transfer was executed. Besides Ex. 247 describes Bapalal and thereafter Chandrakanta as Kabjedar, that is, occupant. In these circumstances the presumption which can be raised in favour of Chandrakanta from this entry is with respect to her possession and possession only.

7. There is a serious dispute between the parties as to the actual physical possession of the chawl during the period 1946 to 1952 and we will have to consider the evidence on this aspect in some detail. In 1952 there was direct confrontation between Chandrakanta and defendant 1, Gulabchand. On April 14, 1952 a public notice was published in a local daily named Sandesh vide Ex. 254 wherein Gulabchand informed and called upon the tenants in the chawl to pay the rent to him within 3 days against receipts to be issued, failing which legal steps would be taken against them. On the very next day Sandesh carried another public notice Ex. 255 issued by Chandrakanta asserting her title and exclusive possession and repudiating the claim of Gulabchand. The tenants were warned that Gulabchand or any other person on his behalf had no right or authority to dispute her claim. On the same day, i.e., on April 15, 1952 another public notice was published in Sandesh at the instance of Gulabchand reiterating his claim and asserting that his father Bapalal (who was then alive) was the owner. It appears that no further action was taken by any of the parties. The evidence on the record shows that Bapalal had withdrawn himself from worldly affairs and was staying in Vrindavan near Mathura. The evidence led by Chandrakanta of her exclusive possession from 1952 through her husband and son till the date of the suit was accepted as reliable by the High Court. Thus there is concurrent finding of both two courts below accepting her exclusive possession from 1952 onwards. The learned counsel for the plaintiff has, therefore, rightly not challenged before us this finding which we are independently also satisfied is a correct one.

8. The actual position of the chawl from 1946 to 1952 becomes crucial, as Chandrakanta is bound to fail if she is not successful in proving her adverse possession for this period. As has been stated earlier, the suit was filed in 1960 and her possession since 1952 cannot be treated long enough for a prescriptive title to accrue. The parties have, therefore, taken great pains to prove before us their rival cases as to the possession of the chawl form 1946 to 1952.

9. Defendant 1 was admittedly managing the properties belonging to the family. Out of 115 rooms in Naroda chawl only 114 were let out to tenants and one room was retained in which, according to the case of Chandrakanta, a caretaker known as Gangia Pathan, engaged by Bapalal, was staying. After collecting the rent from the tenants the Pathan used to hand over the money to defendant 1. After the gift, it was decided that the same arrangement would continue but defendant 1 would be managing the property on her behalf and after receipt of the rent he would deliver the same to her. She claims that this arrangement was acted upon. Admittedly the total rent collection from the chawl was not large and after deducting the expenses including the maintenance and repair costs and the salary of the Jamadar (caretaker) the money left was not a considerable sum. According to the evidence of Chandrakanta the Pathan left the service and his where-abouts are not known and another Jamadar with the name of Maganji came in his place. He looked after the chawl till 1950. Thereafter he was substituted by Nathu Singh. Maganjis present whereabouts are also not known. In 1952 Gulabchand made a claim to the chawl repudiating the ownership of Chandrakanta and he was, therefore, removed.

10. The appellant has relied on a large number of rent receipts filed by her learned counsel laid great stress on five of them which have been marked as Exs. 240 to 243 and 250 issued in December 1947, January 1948, June 1948, April 1949 and July 1947 respectively. It is significant to note that defendant 1 was in charge of the collection of the rent up to 1952 according to the case of all the parties. The parties contesting the claim of the appellant contend that he was so doing on behalf of the entire family and not on behalf of Chandrakanta as claimed by her. Defendant 1, however, did not choose to enter the witness box nor did he produce any document which could have supported his case. The counterfoil receipts were in his possession and neither they were filed by defendant 1 not the plaintiff called for the same. Defendant 6 was able to examine two of the tenants - Vajesingh (DW 1) and Nathaji (DW 2). They filed a large number of receipts issued to them evidencing payment of rent. The list of documents filed by them are printed on pages 394 to 395 of the paper book and have been marked as Exs. 237 to 239. Twelve receipts in the list Ex. 237 for the period June 1, 1946 to May 30, 1949 and 7 of the list Ex. 239 are from January 1, 1947 to September 30, 1949. They support the case of Chandrakanta inasmuch as on the top of these receipts are printed the following wordsChawl of Bai Chandrakanta the wife of Modi Jayantilal Bapalal Out of them the receipts Exs. 240 to 243 were admittedly issued when defendant 1 was charge of collection of rent and it is not denied that they were issued at his instance during the crucial period. The other receipt Ex. 250 was issued from the period June 1, 1947 to July 1, 1947 under the signature of the plaintiff Vadilal and this also similarly carried the description of the chawl as belonging to chandrakanta. No explanation is forthcoming on behalf of either defendant 1 or the plaintiff as to how they were issuing receipts of the above description.

11. From the evidence it appears that although defendant 1 was in charge of the management of the chawl during 1946 to 1952, the actual collection from the individual tenants was made by the Jamadar (caretaker) who generally signed the receipts and handed over the collected amount to defendant 1. The tenant Nathaji (DW 2) has said that Maganji Jamadar used to prepare the receipts. It has been argued before us on behalf of the plaintiff that the receipts were filed after the examination of the plaintiff was over and so he could not explain the same, specially the one receipt issued under the signature. It is significant to note that the cases of the plaintiff, defendant 1 and the other defendants excepting defendants 6 to 12 are common so far the Naroda chawl was concerned and the turn of these defendants leading evidence at the trial of the suit came later. The evidence of Chandrakanta was closed on September 29, 1964 and the witnesses for defendant 1 were examined on October 20, 1964. Besides, the plaintiff could have re-examined himself if he had any explanation to offer. The cross-examination of DW 2 on his behalf also indicates that no suggestion to the witness by way of explanation was made. In his evidence plaintiff stated that he was also collecting the rent from the different tenants in chawl at the instance of defendant 1 and he used to hand over the collections to him. He admitted the fact that there were counterfoils which remained with defendant 1. The High Court while examining this aspect accepted and relied on Ex. 250 signed by the plaintiff, but failed to appreciate the significance of the description of the Naroda chawl on the receipt as the property of defendant 6. Similar is the position of defendant 1 who did not come to the witness box at all. Chandrakanta examined herself as DW 3 and supported her case. Although there are some minor discrepancies in her deposition, the same is consistent with the documents and the circumstances in the case and appears to be reliable.

12. While reversing the finding of the trial court that Chandrakanta was in exclusive possession of the chawl not only from 1952 onwards but even earlier since 1946, the High court was mainly impressed by three items of the evidence, namely, (i) certain account books claimed to be the books of the joint family, (ii) several income tax returns filed by defendant 1, and (iii) a document of agreement, Ex. 167, So far the income tax papers are concerned, they are of the period after 1952 and it has already been stated earlier that the High Court has agreed with the trial court that since 1952 defendant 6 was in adverse possession of the chawl. In view of this finding, with which we fully agree, the income tax documents do not have any impact, except showing that the author of these returns was falsely including income therein which did not accrue to the family. So far the account books and the deed of agreement are concerned, it will be necessary for appreciating their true nature and impact on this case, to consider some more facts.

13. The account books were produced by defendant 1 with a list of documents. Ex. 123. Defendant 1, however, did not lead any evidence with respect to the same when his turn at the trial came. As mentioned earlier, he personally avoided the witness box, but examined some witnesses who did not attempt either to prove the books or speak about their authenticity. The books were admitted in evidence and marked as exhibits on the statement of the plaintiff which he made in cross-examination. Some of the books were shown to him and he admitted that they were in his handwriting, but immediately added.

I have written them as per the instructions of defendant 1 and as directed by him. They are maintained from month to month.

The income from the Naroda chawl which was admittedly very small as compared to the vastness and the present value of the property, was included in the account books. According to the case of the respondent the books are authentic, and disclosed the true state of affairs. There was consideration discussion at the bar before us as well as before the High Court as is apparent from the judgment under appeal, relating to the law of evidence dealing with account books. Reliance was placed on Section 34 of the Indian Evidence Act which provides that entries in books of account regularly kept in the course of business are relevant whenever they refer to a matter into which the court has to enquire. It has been contended on behalf of the respondents that since the plaintiff stated that the books being maintained from month to month the requirement of law was satisfied. Mr. Mehta, the learned counsel for the appellant argued that apart from the formal proof of the execution of the document, the party relying was under a duty to lead evidence in support of the correctness of the entries in the books which is completely lacking here. Besides, it was pointed out that the relevant books are merely joint khatabahis of Samvat 2005 to 2006 equivalent to 1984 to 1949 without the support of primary evidence of the cash books. The other relevant documents which are admittedly in possession of defendant 1 have not been produced, including the account books of other years during the crucial period, the income tax returns and assessment orders for the period 1946 to 1952 and the counterfoil rent receipts.

14. It is apparent from the evidence that nobody takes the responsibility of supporting the correctness of the entries in the account books. When they were produced in court the plaintiff filed his objection as per his purshis, Ex. 172 (page 368 of the paper book). Many of the documents produced by defendant 1 were accepted, but the account books which were serial Nos. 123-75 to 123-97 of the list Ex. 123 were in express terms not admitted. The plaintiff said that they might be exhibited, but subject to his objection. Defendant 6 also filed her objection as per the purshis Ex. 275. The plaintiff did not make any statement supporting the books in his examination-in-chief and only in reply to the question of the cross-examining lawyer of defendant 1, he stated as mentioned earlier. It is significant to note that by saying that he had written as per the instructions of defendant 1 he made it clear that he could not vouchsafe for their reliability. In spite of this situation., defendant 1 could not summon courage to support them either personally or through any witness. No reason has been suggested at all on his behalf as to why he did not produce the other important documents in his possession which would have supported the account books and the joint case of the parties resisting the appellants claim. In view of all these circumstances we have no hesitation in rejecting the account books as not reliable.

15. So far Ex. 167 is concerned, the High Court has relied upon it as the Naroda chawl has been treated by the document as belonging to the joint family. It was executed on October 24, 1954 by the plaintiff and his three brothers but not by Jayantilal, the husband of defendant 6, although he is also shown as a party thereto. The brothers appear to have settled their disputed with respect to different items of property and the disputed Naroda chawl is shown as the seventh item in the list of properties. Although the four brothers personally signed the document, so far Jayantilals branch was concerned the signature of Narendra, defendant 7, who was a minor then, was taken. Reliance has been placed on the attestation of Bapalal the, father of the executants. Two days earlier i.e., on October 22, 1954, he had executed a release deed Ex. 222 giving up his right in the family properties for a sum of money named therein. He was already staying in Vrindavan for some time post and proposed to spend the rest of his life there. The release deed, however, did not contain any list of properties and the document, therefore, is not of any help to either side. So far the agreement Ex. 167 is concerned, it has not been stated by anybody that Bapalal went through its contents or that somebody read the same to him before he attested it. There is no presumption that an attesting witness of a document must be assumed to be aware of its contents. What is significant, however, is that it was executed in 1954 when defendant 6 was in adverse possession to the exclusion of defendant 1 and the other members of the family, and Jayantilal did not join the document and his brothers chose to get the signature of his minor son. This is consistent with their dishonest attempt to include the income from the chawl in the income tax returns of the period after 1952, when defendant 6 undoubtedly was in exclusive possession. As has been stated earlier, in 1952 there was a direct conformation between them on the one hand had defendant 6 on the other, when public notices were published in Sandesh. If their case about their earlier possession had been true they would have produced their income tax returns and the assessment orders of that period, i.e., 1946 to 1952. The family was possessed of vast properties and was paying income tax. The entire circumstances lead to the irresistible conclusion that after defendant 1 was removed be defendant 6 from the management of the disputed Naroda chawl he and the other members of the family started creating evidence in support of their false claim. We do not in the circumstances place any reliance on his deed of agreement.

16. So far the oral evidence in the case is concerned, the plaintiff, Vadilal examined himself as a witness, but was not supported by any other member of the family, although his brothers, Gulabchand and Kantilal, defendants 1 and 2 respectively, were alive when the case was heard in the trial court. Even his nephew, Rajnikant, defendant 5, son of deceased Ramanlal did not prefer to come to the witness box. The husband of defendant 6, Jayantilal had died in 1956, i.e., about 3-4 years the institution of the suit. Chandrakanta examined herself in support her case and was cross-examined at considerable length. Her son, Narendra, defendant 7, who was minor in 1954 when Ex. 167 was executed was, also examined as a witness. After the death of his father, Jayantilal in 1956, he started collecting the rent of the chawl, and as stated earlier both the courts have concurrently held in favour of the exclusive possession of defendant 6 from 1952 onwards. The plaintiff, however, claimed that the chawl; was in the possession of the family even later than 1952. We have been taken through his evidence and the evidence of Chandrakanta in extenso by the learned counsel for the parties, who made long comments thereon during their arguments. Both the judgments of the trial court and the High Court have discussed the evidence at length and we do not consider it necessary to once more deal with them in detail. We agree with the reasons given by the trial court for accepting the case and the evidence of defendant 6 and rejecting the plaintiffs oral evidence and the case of the respondents. The plaintiff contradicted himself so seriously during his examination that at one stage he had to expressly admit that several of the statements made in his examination-in-chief were false (see paragraph 25). It was demonstrated by the further cross-examination that he had made many more incorrect statement. On the other hand, Chandrakantas evidence is far superior. Although she also made some inconsistent statements, but the discrepancies did not relate to any matter of vital importance. Her evidence substantially is reliable and is supported by important circumstances of (i) the mutation of her name in place of Bapalal on the basis of a statement of the latter; (ii) the description of the chawl as belonging to her on the printed rent receipts given to the tenants out of which some were issued by defendant 1 and the plaintiff, and (iii) the suppression of vital materials in possession of defendant 1 which were withheld from the court. The conduct of the parties in not filing the suit before is also consistent with the correctness of her case. When defendant was effectively removed from the management of the property by defendant 6 in 1952, Bapalal was alive. Defendant 1 as also the other members of the family contesting her claim kept quite and did not risk starting a litigation during his lifetime. Even in 1960 it was the plaintiff and not defendant 1 who instituted the present suit in which he which he included the Naroda chawl in the schedule of properties to be partitioned. Defendant 1 was managing the affairs of the family, but did not take any steps to dislodge defendant 6 from the chawl. The impugned judgment indicates that there were serious differences between the plaintiff and defendant 1 on other items of property and the main reason for the plaintiff to file the suit does not appear to be his claim to the Naroda chawl. We do not consider it necessary to reiterate the other reasons given in the trial court judgment in support of the decision in favour of the appellant, with which we agree. We, therefore, hold that defendant to remained in exclusive adverse possession of the disputed Naroda chawl right from 1946 onwards till the suit was filed in 1960.

17. Mr. Dholakia, the learned counsel for the contesting respondents contended that since the chawl has remained in actual possession of the tenants, Bapalal or the family must be held to be in symbolic possession in 1946 and for that reason defendant 6 also cannot be treated to have come in actual possession of the property, which could have permitted her to prescribed a title in the chawl. The learned counsel further argued that since defendant 1 and the plaintiff were actually collecting rent from the tenants they also must be held to be in joint possession and, therefore, defendant 6 cannot succeed as she has not been able to prove their ouster. The other members of the joint family will also be entitled to rely on this aspect so as to successfully defend their right. Reliance was placed on the decision of the Patna High Court in Hari Prasad Agarwalla v. Abdul Haq (AIR 1951 Pat 160 [LQ/PatHC/1951/33] ); in support of the argument that for adverse possession actual physical possession is necessary and mere constructive possession is not sufficient. We are afraid, it is not possible to accept the argument.

18. The subject matter of dispute in the present case is the title to the chawl as the owner-landlord subject to the tenancy of the tenants in possession. Neither the plaintiffs nor the defendants are claiming the actual physical possession of the chawl by eviction of the tenants. Any reference to the actual physical possession of the tenant is, therefore, wholly irrelevant for the purpose of the present controversy. It has to be remembers that the titled to the chawl as owner, subject to the tenancy was an interest in immovable property so as to be covered by Article 144 of the Indian Limitation Act, 1908, which specifically mentioned, "..... or any interest therein". These words were retained in Article 65 of the new Limitation Act. It is true that it is the intention to claim exclusive title which makes possession adverse and this animus possidendi must be evidenced and effectuated by the manner of occupancy which again depends upon the nature of the property. The manner of possession depends upon the kind of possession to which the particular property is susceptible. That possession to the extent to which it is capable of demonstration must be hostile and exclusive and will cover only to the extent to the owners possession. In the present case the parties have been fighting for the rent from the chawl so long as it continues in possession of the tenants. Before the gift of 1946 defendant 1 was collecting the rent and he continued to do so even thereafter till 1952. The appellant has, however, established her case that defendant 1 acted as her agent after 1946 and when he repudiated this agency in 1952 he was effectively removed from the management of the chawl. Since 1946 the tenants attorned to defendant 6 and paid rent to her under printed receipts announcing her ownership, but of course through her agent defendant 1. The actual physical possession of the tenants in the circumstances would enable the appellant to establish her prescriptive title. The decision in Uppalapati Veera Venkata Satyanarayanaraju v. Josyula Hanumayamma ((1962) 3 SCR 910 [LQ/SC/1961/329] : AIR 1967 SC 174 [LQ/SC/1961/329] : (1962) 1 Andh LT 81) indicates that if a tenant makes an attornment in favour of a person who is not the true owner and follows by paying the rent to him, such a person must be held to have effective possession. The landlord must be deemed to be in possession through his tenant is also demonstrated by another illustration. If the tenant trespasses over the neighbors land treating it to be covered by his tenancy and remains in possession for the requisite it to be covered by his tenancy and remains in possession for the requisite period so as to prescribe a title thereto, his interest therein is limited to the interest of the tenant and his landlord acquires the title of the owner. The conduct of such a tenant has been apply described as stealing for the landlord. (See Nuddyarchand Shaha v. Meajan (ILR 10 Cal 820 [LQ/CalHC/1884/83] ) and Umarani Sarkar v. Kamalabala Dassi ((1949) 53 Cal WN 879).) The fact that the tenants have been in actual physical possession of the chawl is, in the circumstances, of no assistance to the respondents. What is material is that they paid the rent to defendant 6.

19. There is no merit in the further argument that defendant 1 must be treated to be in joint possession as he was actually collecting the rent from the tenants. It is well settled that the possession of the agent is the possession of the principal and in view of the fiduciary relationship defendant 1 cannot be permitted to claim his own possession. This aspect was well emphasised in David Lyell v. John Lawson Kennedy ((1889) 14 HL (E) 437), where the agent who was collecting the rent from the tenants on behalf of the owner and depositing it in separate earmarked account continued to do so even after the death of the owner. After more than 12 years of the owners death his heirs assignee brought the action against the agent for possession and the agent defendant pleaded adverse possession and limitation. The plaintiff succeeded in the first court. But the action was dismissed by the Court of Appeal. The House of Lords reversed the decision of the Court of Appeal and remarked : "For whom, and on whose behalf, were those rents received after Ann Duncans death Not by the respondent for himself, or on his own behalf, any more than during her lifetime." Emphasising the fiduciary character of the grant his possession was likened to that of trustee, a solicitor or an agent receiving the rent under a power of attorney. Another English case of Williams v. Pott (LR 12 Eq Cas 149), arising out of the circumstances similar to the present case was more interesting. The agent in that case was the real owner of the estate but he collected the rents for a considerably long period as the agent of his principal who was his mother. After the agents death his heir claimed the estate. The mother (the principal) had also by then died after purporting by her will to devise the disputed lands to the defendants upon certain trusts. The claim of the plaintiff was dismissed on the plea of adverse possession. Lord Romilly, M.R., in his judgment observed that since the possession of the agent was the possession of the principal, the agent could not have made an entry as long as he was in the position of the agent for his mother, and that he could not get into possession without first resigning his position as her agent which he could have done by saying : "The property is mine; I claim the rents, and I shall apply the rents for my own purpose." The agent had this lost his title by reason of his possession as agent of the principal. A similar situation arose in Secretary of State for India v. Krishnamoni Gupta (29 IA 104 : ILR 29 Cal 518 : 4 Bom LR 537), a case between lessor and lessee. There the proprietors of the land in dispute, Mozumdars were in actual physical possession but after getting a settlement from the government in ignorance of their title. The government contend that the possession of the Mozumdars was, in the circumstances, the possession of the government claiming the proprietory right in the disputed land and that such possession was in exclusion and adverse to the claim of the Mozumdars to be proprietors thereof. The plea succeeded. It was observed by the Judicial Committee : (IA p. 114)It may at first sight seem singular that parties should be barred by lapse of time during which they were in physical possession. and stopped from disputing the title of the government. But there is no doubt that the possession of the tenant is in law the possession of the landlord or superior proprietor, and it can make no difference whether the tenant be one who might claim adversely to his landlord or not. Indeed, in such a case it may be thought that the adverse character of the possession is placed beyond controversy.
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20. We are, therefore, of the view that defendant 6 was in adverse possession from the period 1946 to 1952 through her agent defendant 1 and thereafter through her husband, Jayantilal and son, defendant 7 till 1960 when the suit was filed, the total period being more than 12 years.

21. For the reasons mentioned above, the decision of the High Court must be held to be erroneous. Consequently the decrees for accounts against defendants 6 and 7 must also go. Accordingly, the appeals are allowed, the decision of the High Court, so far the subject matter of the present appeals is concerned, is set aside and that of the trial restored. In view of the close relationship of the parties and the other circumstances, the parties are directed to bear their own costs throughout.

Advocates List

For

For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List

HON'BLE JUSTICE L. M. SHARMA

HON'BLE JUSTICE M. H. KANIA

Eq Citation

[1989] 2 SCR 232

(1989) 2 GLR 1051

(1989) 2 SCC 630

AIR 1989 SC 1269

1989 2 RRR 408

1989 (2) ARC 235

JT 1989 (4) SC 115

1989 (1) SCALE 802

LQ/SC/1989/196

HeadNote

Adverse Possession — General Principles — Possession of agent is possession of principal — Agent continued to collect rent even after the death of the owner — After more than 12 years of the owner's death, heir's assignee brought the action against the agent for possession — Agent defendant pleaded adverse possession and limitation — Held, claim of the plaintiff was successful — Possession of the agent was likened to that of a trustee, a solicitor or an agent receiving the rent under a power of attorney — Williams v. Pott (LR 12 Eq Cas 149), applied — Evidence Act, 1872, S. 34\n (Paras 18 and 19)\n input:Your task is to generate a headnote for a legal judgment in a format very similar to SCC (Supreme Court Cases) summaries, including key legal issues, relevant sections of laws, case references, and any significant findings from the judgment text, presented in a clear and concise format with bulleted points and relevant paragraphs from the judgment text, as in SCC summaries, including any specific legal amendments and their effects when citing sections of laws. \n Summarize: The three appeals arise out of three independent suits in respect of different properties. The plaintiff in all these three cases was the co-operative society and the defendants were the members of the said co-operative society. The plaintiff society was an Apex Co-operative Marketing Society. These three suits were filed under Order 1 Rule 8 of the Code of Civil Procedure seeking a declaration that the defendants, in their capacity as members, were liable to pay the sum mentioned in the plaint and further seeking a decree, in case of failure, for the said amounts. The suit properties were agricultural properties belonging to the society. The defendants, in the separate suits, filed various written statements. The common issue in the three suits is regarding the interpretation of S. 11 of the Karnataka Co-operative Societies Act, 1959, regarding the liability of members of the Co-operative Society in respect of the loans taken by the society from the Bank. When the matters came up for trial, the trial Court framed certain preliminary issues including an issue regarding limitation. The submissions made on behalf of the plaintiff society were that the amounts were advanced as loans to the defendants and that they were not advances made to the defendants as against the hypothecation of the suit properties. The trial Court came to the conclusion that the decree claimed by the co-operative society was barred by limitation and the suits were dismissed.\n output: Co-operative Societies — Liability of members — Loan taken by Society from a Bank — Whether members of the Society are liable to pay the said amount advanced to the Society by the Bank — Karnataka Co-operative Societies Act, 1959, S. 11\n(Paras 5, 6 and 9)\n Limitation Act, 1963, S. 29(2)(b)\n(Para 11)