Supreme Court Upholds License Irrevocability in Educational Institution Dispute — License Granted for School Construction Found Irrevocable.

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Case Note & Summary

The dispute involved a property occupied by a school managed by a Registered Education Society. The property was initially owned by Raja Ram Kumar Bhargava, who allowed the school to use the premises free of rent as a permanent contribution. The school made permanent constructions on the property without objection from the donor. After the property was mortgaged and later sold to Ram Sarup Gupta, the appellant, he sought to terminate the school's license and regain possession. The trial court dismissed his suit, finding that the property remained under the donor's ownership due to the absence of a registered deed transferring title. The court ruled that the license granted to the school was irrevocable under Section 60(b) of the Indian Easement Act, as the school had made permanent constructions. The High Court upheld this decision, leading to the appeal in the Supreme Court. The Supreme Court affirmed the lower courts' findings, emphasizing that the license was irrevocable because the school acted upon it and incurred expenses for the constructions. The court noted that the donor's conduct indicated acceptance of the school's actions, thus preventing revocation of the license. The court also addressed the importance of pleadings, stating that the defendants had sufficiently raised the issue of irrevocability in their written statement. Ultimately, the appeal was dismissed, confirming the school's right to continue occupying the property.

Headnote

A) Property Law - License Irrevocability - Conditions for Irrevocability of License - Indian Easement Act, 1882, Section 60 - License granted for running a school and making permanent constructions was deemed irrevocable as the licensee acted upon the license and incurred expenses. The court held that the grantor could not revoke the license after the licensee made permanent constructions for the school. (Paras 821-823).

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Issue of Consideration

Whether the license granted to the school was irrevocable under Section 60(b) of the Indian Easement Act, 1882.

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Final Decision

The Supreme Court dismissed the appeal, affirming the lower courts' findings that the license was irrevocable under Section 60(b) of the Indian Easement Act, 1882.

Law Points

  • License
  • irrevocability
  • Indian Easement Act
  • 1882
  • Section 60
  • construction on land
  • permanent character
  • pleadings
  • evidence
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Case Details

1987 LawText (SC) (04) 13

Civil Appeal No. 638 of 1980

1987-04-08

K.N. Singh, Sabyasachi Mukharji

1987 AIR 1242, 1987 SCR (2) 805, 1987 SCC (2) 555

S.N. Kacker, G.C. Mathur, U.R. Lalit, K.K. Gupta, P.H. Parekh, P.K. Manohar, Soli J. Sorabjee, Prithvi Raj, N.B. Sinha, Sanjeev B. Sinha

Ram Sarup Gupta (Dead) by LRs

Bishun Narain Inter College & Ors.

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Nature of Litigation

Dispute over possession of property occupied by a school.

Remedy Sought

Ram Sarup Gupta sought possession of the property.

Filing Reason

Gupta claimed the school was occupying the property without a valid license.

Previous Decisions

Trial court dismissed the suit, affirming that the license was irrevocable.

Issues

Whether the license granted to the school was irrevocable under Section 60(b) of the Indian Easement Act.

Submissions/Arguments

The appellant argued that the license was revocable and that the defendants failed to plead necessary facts. The respondents contended that the license was irrevocable as the school acted upon it and made permanent constructions.

Ratio Decidendi

The court held that a license granted for a specific purpose, where the licensee has made permanent constructions and incurred expenses, is irrevocable under Section 60(b) of the Indian Easement Act, 1882.

Judgment Excerpts

Where license is granted for the purpose of running the school without reserving any right to revoke license and if the licensee erected works of permanent nature, the grantor of license is not entitled to recover land. If a person allows another to build on his land in furtherance of the purpose for which he is granted license, he cannot turn round, later on, to revoke the license.

Procedural History

The trial court dismissed the suit for possession, the High Court affirmed the trial court's decision, leading to the appeal in the Supreme Court.

Acts & Sections

  • Indian Easement Act, 1882: 52, 60, 62, 63, 64
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