Case Note & Summary
The dispute involved land recorded in the name of Hiral Lal, father of the appellants, which was claimed by the respondents as 'Sir' and 'Khudkasht' land of their predecessor, Hansraj. The respondents contended that they should have been recorded as 'Bhumidhars' after the abolition of Zamindari under the U.P. Zamindari Abolition & Land Reforms Act, 1950. The Consolidation Officer ruled in favor of Hiral Lal, stating that the respondents lost their rights due to adverse possession, as they did not file a suit for ejectment within the limitation period. This decision was upheld by the Assistant Settlement Officer and the Deputy Director of Consolidation. The respondents' subsequent writ petition was dismissed, but a Special Appeal led to a Full Bench ruling on two legal questions regarding the nature of possession and the commencement of the limitation period for ejectment suits. The Full Bench concluded that the limitation period starts from the date of demand for possession, not from the date of vesting. The Division Bench later upheld this ruling, leading to the current appeal. The appellants argued that the limitation period should start from the date of vesting, but the court found that the mortgagee's possession was lawful and thus permissive, not adverse. The court emphasized that the mortgagee's possession, having been lawfully obtained, does not change character and remains permissive until a demand for possession is made and refused. The court dismissed the appeal, affirming the Full Bench's interpretation of the law and the permissive nature of the mortgagee's possession.
Headnote
A) Property Law - Mortgagee Rights - Nature of Possession - U.P. Zamindari Abolition & Land Reforms Act, 1950, Section 14 - The court held that the possession of a mortgagee, even after the rights have extinguished, remains permissive and does not become adverse to the mortgagor's rights. The period of limitation for a suit under Section 209 would commence from the date the mortgagee refuses to deliver possession, not from the date of vesting (Paras 5-6).
Issue of Consideration
Whether the possession of a mortgagee whose rights have extinguished under section 14(1) of the Zamindari Abolition and Land Reforms Act is, on or after the date of vesting, per se, adverse or permissive?
Final Decision
The Supreme Court dismissed the appeal, affirming that the mortgagee's possession was permissive and not adverse, with the limitation period for ejectment suits commencing from the date of demand for possession.
Law Points
- Adverse possession
- Limitation period
- Mortgagee rights
- Bhumidari rights
- Zamindari Abolition


