Case Note & Summary
The appellants (original defendants) challenged the judgment and decree dated 20th March 2007 passed by the Bombay City Civil Court, which decreed the suit filed by the respondent (original plaintiff) for recovery of business premises. The plaintiff, widow of late Rajaram Appa Parshetye, claimed that her husband was a tenant of the suit premises and had entered into a conducting agreement with the original defendant on 2nd January 1966 for 11 months. She alleged that after the agreement expired, the defendant handed over possession, but later re-entered without consent and refused to vacate. The defendant denied the conducting agreement and claimed to be in possession since 1966 as a tenant or by adverse possession. The trial court decreed the suit, holding that the defendant was a licensee and liable to deliver possession. On appeal, the High Court examined the evidence and found that the plaintiff failed to produce the original conducting agreement or prove its execution. The defendant's witness denied the agreement, and the plaintiff's evidence was inconsistent. The court held that the plaintiff did not establish a licensor-licensee relationship. Additionally, the defendant's possession since 1966 was adverse to the plaintiff, and the suit filed in 1993 was barred by limitation. The court also noted that the plaintiff did not prove her own title or tenancy rights. Consequently, the High Court allowed the appeal, set aside the trial court's decree, and dismissed the suit with no order as to costs.
Headnote
A) Property Law - Conducting Agreement - Licensor-Licensee Relationship - Burden of Proof - The plaintiff must prove the existence of a license or conducting agreement to establish a licensor-licensee relationship. In this case, the plaintiff failed to prove the conducting agreement dated 2nd January 1966, as the original was not produced and the defendant denied it. The court held that without proof of the agreement, the plaintiff cannot claim recovery of possession based on termination of license. (Paras 2-10) B) Evidence Act - Section 116 - Estoppel of Tenant - Adverse Possession - Section 116 of the Evidence Act estops a tenant from denying the landlord's title during the tenancy, but does not apply to a licensee. The defendant claimed adverse possession for over 12 years, and the court found that the plaintiff's suit was barred by limitation as the defendant's possession became adverse from 1966. (Paras 11-15) C) Specific Relief Act - Section 41(j) - Injunction Against Person in Possession - A person in possession without title cannot be ejected except by due process of law. The court held that the plaintiff failed to prove better title or a licensor-licensee relationship, and thus the suit for recovery was not maintainable. (Paras 16-20)
Issue of Consideration
Whether the plaintiff proved that the defendant was a licensee under a conducting agreement and that the plaintiff was entitled to recovery of possession of the suit premises.
Final Decision
The High Court allowed the appeal, set aside the judgment and decree of the trial court, and dismissed the suit with no order as to costs.
Law Points
- Burden of proof
- Conducting agreement
- Licensor-licensee relationship
- Adverse possession
- Tenancy rights
- Suit for recovery of possession
- Section 116 Evidence Act
- Section 41(j) Specific Relief Act


