Supreme Court Allows Amendment of Written Statement in Appeal and Remands Civil Suit for Fresh Findings on Adverse Possession and Reversionary Rights. The Court Held That Khasra Entries Carry Statutory Presumption of Correctness Under Section 80(3) of Central Provinces Land Revenue Act, 1917, and the First Appellate Court Erred by Ignoring That Presumption Under Section 100(1)(c) CPC.

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Case Note & Summary

The dispute concerned recovery of possession of 12.86 acres of agricultural land in mauza Imlai, Panagar, Madhya Pradesh. The plaintiff, Digamber Jain Praband Karini Sabha, Panagar, a trust registered under the Madhya Pradesh Public Trust Act, 1951, claimed title under a registered gift deed executed on 18 January 1954 by Smt. Rajrani, the fifth defendant, who was the malik maqbooza of the land after abolition of proprietary rights in 1951. The third and fourth defendants, Ram Das and Ballu, were cultivating the land and had earlier been sued by the plaintiff; they pleaded that the appellant, Shikharchand Jain, had sub-let the land to them, and that suit was decreed in favour of the plaintiff. The appellant had also filed a separate suit in 1955 seeking a declaration that the gift by Smt. Rajrani would be void after her death, but that suit was dismissed in default. In the present suit, the appellant and other defendants except Smt. Rajrani filed a joint written statement denying the plaintiff's title, claiming that Smt. Rajrani held only a limited estate, that the gift was ineffective after her death, and that the appellant had been in possession since 1937 and had acquired ownership by adverse possession. Smt. Rajrani filed a separate written statement supporting the plaintiff. The trial court framed issues, including whether Smt. Rajrani was owner and in possession till 18 January 1954 and whether the appellant had perfected title by adverse possession. The trial court answered the ownership and possession issues in favour of the plaintiff and held that the appellant was in possession for and on behalf of Smt. Rajrani, not in his own right. It decreed the suit for possession. The first appellate court allowed the defendants' appeal, set aside the decree, and dismissed the suit, finding that the appellant had become owner by adverse possession. The plaintiff filed a second appeal in the High Court of Madhya Pradesh. The High Court reversed the first appellate court and restored the trial court decree, holding that the first appellate court had ignored the statutory presumption of correctness of Khasra entries under Section 80(3) of the Central Provinces Land Revenue Act, 1917, and had misread Exhibit D/1, a plaint in a suit for profits, and had not approached the issue in a proper legal manner. The appellant then appealed to the Supreme Court by special leave. Before the Supreme Court, two main questions arose: whether the High Court could interfere with the first appellate court's finding of fact under Section 100(1)(c) CPC, and whether the appellate court should allow amendment of the written statement due to changed circumstances, namely the death of Smt. Rajrani in 1968. The appellant argued that the first appellate court's finding on adverse possession was a finding of fact and the High Court could not interfere; he also sought amendment to claim reversionary rights. The respondent argued that Khasra entries were presumed correct and the appellant had admitted Smt. Rajrani's ownership and paid rent on her behalf till 1958-59, negating adverse possession. The Supreme Court held that the High Court was justified in interfering because the first appellate court overlooked the statutory presumption and misread evidence, constituting a substantial error in procedure under Section 100(1)(c) CPC. The Court also held that courts including appellate courts can take notice of events after institution of suit and allow amendment of pleadings. Consequently, the Supreme Court allowed the amendment of the written statement, remanded the case to the trial court with directions to give the respondent time to file a reply to the amended written statement, record findings on the new plea, and forward them to the Supreme Court through the High Court within four months of receipt of the record.

Headnote

A) Civil Procedure - Amendment of Pleadings - Amendment of written statement during appeal due to changed circumstances - Code of Civil Procedure, 1908 - The appellant sought amendment of his written statement after the death of Smt. Rajrani in 1968 to claim reversionary rights as sole reversioner; the Court held that courts including appellate courts can take notice of events after institution of suit and afford relief to parties; amendment allowed and case remanded for trial court to accept reply and record findings on new plea (Paras 10-12).

B) Civil Procedure - Second Appeal - Interference with finding of fact - Code of Civil Procedure, 1908, Section 100(1)(c) - The High Court could interfere in second appeal where the first appellate court ignored the statutory presumption of correctness of Khasra entries under Section 80(3) of Central Provinces Land Revenue Act, 1917 and misread Exhibit D/1; Held that substantial error or defect in procedure justified interference (Paras 4-7).

C) Evidence/Revenue Law - Presumption of Correctness of Record of Rights - Khasra entries are record of right and presumed correct unless contrary is shown - Central Provinces Land Revenue Act, 1917, Sections 45(2) and 80(3) - Khasra entries from 1937-38 to 1951-52 were in favour of Smt. Rajrani, raising presumption of her possession; burden of proving adverse possession was heavy and lay on the party claiming it; Court relied on this to uphold High Court view that first appellate court erred (Paras 5-6).

D) Property Law - Adverse Possession - Claim of adverse possession from 1937 - The appellant claimed ownership by adverse possession for more than 12 years from 1937 but Khasra entries were against him and a witness admitted appellant paid rent on behalf of Smt. Rajrani till 1958-59; Court held adverse possession claim failed, referring to Maharaja Srischandra Nandy v. Baijnath Jugal Kishore, Deity Pattabhiramaswamy v. S. Hanymayya, and H.R. Ramachandran Ayyar v. Ramalingam Chettiar (Paras 8-9).

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Issue of Consideration

Whether the High Court was justified in interfering with the first appellate court's finding of fact under Section 100(1)(c) CPC; whether the appellate court could allow amendment of the written statement during pendency of appeal due to changed circumstances i.e. death of Smt. Rajrani.

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Final Decision

Supreme Court allowed the appeal in part: it upheld the High Court's interference with the first appellate court's finding, holding that the first appellate court ignored the statutory presumption of correctness of Khasra entries and misread Ex D/1; it allowed the amendment of the written statement due to changed circumstances (death of Smt. Rajrani) and remanded the case to the trial court to permit respondent to file reply, record findings on the new plea, and forward them to the Supreme Court through the High Court within four months of receipt of the record.

Law Points

  • The Court
  • including an appellate court
  • may take notice of events after institution of suit and allow amendment of pleadings
  • Khasra entries are record of rights and presumed correct unless contrary shown under Section 80(3) of Central Provinces Land Revenue Act
  • 1917
  • burden of proving adverse possession lies on party claiming it
  • High Court can interfere in second appeal under Section 100(1)(c) CPC if first appellate court ignores statutory presumption and misreads evidence.
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Case Details

1974 LawText (SC) (01) 28

Civil Appeal No. 1598 of 1967

1974-01-11

Bhagwati, P.N., Palekar, D.G., Krishna Iyer, V.R., Dwivedi, J.

AIR 1974 SC 1174, (1974) 2 SCC 215

V. M. Tarkunde, S. L. Jain, M. S. Gupta for appellant; M. C. Chagla, S. K. Bagga, S. Bagga, Yash Bagga, Rani Arora for respondents

Shikharchand Jain

Digamber Jain Praband Karini Sabha and others

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Nature of Litigation

Civil suit for recovery of possession of agricultural land filed by plaintiff trust against defendant Shikharchand Jain, involving claims of gift, adverse possession, and reversionary rights.

Remedy Sought

The plaintiff sought recovery of possession over 12.86 acres of agricultural land in mauza Imlai; the defendant/appellant sought to resist possession on ground of adverse possession and later sought amendment to claim reversionary rights.

Filing Reason

The plaintiff claimed title under a registered gift deed executed by Smt. Rajrani on 18 January 1954; the defendants disputed plaintiff's title and claimed adverse possession since 1937.

Previous Decisions

Trial court decreed suit for plaintiff; first appellate court allowed defendants' appeal and dismissed suit; Madhya Pradesh High Court in second appeal reversed first appellate court and restored trial court decree; appellant sought special leave before Supreme Court.

Issues

Whether the High Court could interfere with the first appellate court's finding of fact under Section 100(1)(c) CPC when the first appellate court ignored the statutory presumption of correctness of Khasra entries under Section 80(3) of Central Provinces Land Revenue Act, 1917. Whether the appellate court should allow amendment of the written statement during pendency of appeal in light of changed circumstances, namely death of Smt. Rajrani, to claim reversionary rights.

Submissions/Arguments

For appellant: The first appellate court's finding on adverse possession was a finding of fact and High Court could not interfere in second appeal; appellant also sought amendment of written statement due to death of Smt. Rajrani in 1968, claiming he became sole reversioner and respondent no.1 had no right. For respondents: Khasra entries in record of rights were presumed correct under Section 80(3) of Central Provinces Land Revenue Act, 1917; appellant admitted Smt. Rajrani's ownership and had paid rent on her behalf till 1958-59, negating claim of adverse possession; first appellate court misread Ex D/1 and ignored statutory presumption.

Ratio Decidendi

Courts can take notice of events after institution of suit and allow amendment of pleadings to grant relief in changed circumstances; statutory presumption of correctness attaches to record of rights entries under Section 80(3) of Central Provinces Land Revenue Act, 1917; and in second appeal, High Court can interfere under Section 100(1)(c) CPC if first appellate court ignores such statutory presumption and misapprehends evidence.

Judgment Excerpts

Khasra is a record of right according to s. 45(2) of the Central Provinces Land Revenue Act, 1917. Section 80(3) of that Act provides that entries in a record of right shall be presumed to be correct unless the contrary is shown. It is, therefore open to the Court, including a court of appeal to take notice of events which have happened after the institution of the suit and afford relief to the parties. Under the circumstances, since the death of Smt. Rajrani creates a fresh cause of action to the appellant who claims to be her next reversioner, it will be just and proper to allow the amendment. Therefore, the amendment is allowed and the case will go back to the trial court and the trial court will give reasonable time to the respondent to file a reply to the amended written statement.

Procedural History

The suit was instituted by plaintiff for recovery of possession. Trial court decreed in plaintiff's favour. First appellate court allowed defendants' appeal and dismissed suit. Plaintiff filed second appeal in High Court of Madhya Pradesh. High Court reversed first appellate court and restored trial court decree. Appellant filed civil appeal in Supreme Court by special leave. During pendency, Smt. Rajrani died in 1968; appellant filed application for substitution as legal representative and later sought amendment of written statement. Supreme Court allowed amendment and remanded for findings on new plea.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100(1)(c)
  • Central Provinces Land Revenue Act, 1917: Section 45(2), Section 80(3)
  • Madhya Pradesh Public Trust Act, 1951:
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