Bombay High Court Allows Appeal in Suit for Recovery of Business Premises — Conducting Agreement Not Proved as License; Relationship of Licensor-Licensee Not Established. The court held that the plaintiff failed to prove the conducting agreement and the defendant's possession was adverse, barring the suit by limitation.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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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)

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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.

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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
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Case Details

2020 LawText (BOM) (05) 16

First Appeal No. 1791 of 2007

2020-05-19

R.D. Dhanuka, J.

2020:BHC-AS:6766

Mr. Ranjit A. Thorat, Sr. Advocate along with Mr. Kishor S. Patil, Mr. J.S. Parmar, Mr. S.P. Chavan and Mr. P. Kasar for the Appellant; Mr. U.S.R. Singh along with Mr. C.M. Lokeshappa for the Respondent

Vasundhara @ Mandakini P. Shetye and Ujwala Hari Shende (legal heirs of deceased Purshottam Shankar Shetye)

Abhay Shridhar Shetye (legal heir of original plaintiff Malati Rajaram Parshetye)

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Nature of Litigation

Civil suit for recovery of business premises and other reliefs based on alleged conducting agreement.

Remedy Sought

The plaintiff sought recovery of possession of the suit premises from the defendant, claiming the defendant was a licensee under a conducting agreement that had terminated.

Filing Reason

The plaintiff alleged that the defendant entered into a conducting agreement for 11 months in 1966, but after its expiry, the defendant re-entered the premises without consent and refused to vacate, despite demands.

Previous Decisions

The trial court (Bombay City Civil Court) decreed the suit on 20th March 2007, directing the defendants to deliver possession of the suit premises.

Issues

Whether the plaintiff proved the existence of a conducting agreement and a licensor-licensee relationship? Whether the suit was barred by limitation due to adverse possession by the defendant?

Submissions/Arguments

Appellants argued that the plaintiff failed to prove the conducting agreement, the original was not produced, and the defendant's possession was adverse for over 12 years, barring the suit. Respondent argued that the conducting agreement was proved through secondary evidence and that the defendant was a licensee, liable to vacate upon termination.

Ratio Decidendi

The plaintiff failed to prove the conducting agreement and the licensor-licensee relationship. The defendant's possession since 1966 was adverse, and the suit filed in 1993 was barred by limitation. Without proof of title or license, the plaintiff cannot recover possession.

Judgment Excerpts

The plaintiff has not proved the conducting agreement dated 2nd January 1966. The original conducting agreement was not produced. The defendant has been in possession of the suit premises since 1966. The suit filed in 1993 is clearly barred by limitation. The plaintiff has not proved that she is the tenant of the suit premises or that she has any right to recover possession.

Procedural History

The original plaintiff filed a suit in the Bombay City Civil Court in 1993 for recovery of possession. The trial court decreed the suit on 20th March 2007. The defendants (appellants) appealed to the High Court by way of First Appeal No. 1791 of 2007. The High Court reserved judgment on 31st January 2020 and pronounced on 19th May 2020.

Acts & Sections

  • Indian Evidence Act, 1872: Section 116
  • Specific Relief Act, 1963: Section 41(j)
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