Bombay High Court Hears Combined Second Appeals in Property Dispute Involving Individual and Charity. Substantial Questions of Law Frame the Priority of Gift Deed Over Sale Deed and Effect of Pending Litigation.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The judgment pertains to two second appeals preferred before the High Court of Judicature at Bombay, Aurangabad Bench, arising out of two civil suits involving a property dispute between an individual, Chandrashekhar Shankarrao Kulkarni, and a public charitable trust, Rahul Shikshan Prasarak Mandal. Both parties claim title to the suit property, Plot No.5-17-33/P admeasuring 60’x80’ (later described as 60’x60’) situated at Samata Nagar, Aurangabad, through a common vendor, Sonaji Ganoji Sonavane. The dispute centers on whether the trust’s registered gift deed dated 29.08.1973 or Chandrashekhar’s sale deeds dated 18.01.1974 and 11.04.1978 confer valid title. The factual background is that Sonaji owned the plot. On 07.08.1973, he delivered possession to the trust, and on 29.08.1973 executed a registered gift deed in its favor for running a school. In 1974, Chandrashekhar purchased the plot from Sonaji by a registered sale deed, paying additional consideration in 1978 for an increased area. Chandrashekhar’s name was entered in city survey and municipal records. In 1974, the Municipal Council issued a demolition notice under Section 189 for a basement constructed on the plot, leading Chandrashekhar to file RCS No.442 of 1974 against the Council; the trust’s application for impleadment was rejected. In September 1979, the trust attempted excavation on the plot, prompting Chandrashekhar to file RCS No.539 of 1979 for perpetual injunction, alleging encroachment. The trust contested, asserting ownership by the gift deed and claiming Chandrashekhar’s sale deeds were fabricated and collusive. The trial court decreed the suit in favor of Chandrashekhar on 31.01.1987, but on appeal (RCA No.49 of 1984), the first appellate court reversed the decree (inference drawn from the framing of the second appeal), leading to Second Appeal No.166 of 1986 by Chandrashekhar. Simultaneously, on 12.02.1985, the trust filed RCS No.174 of 1985 for declaration of ownership and recovery of possession against Chandrashekhar and his tenant Shaikh Gulab. The trust alleged that Chandrashekhar secured an ex-parte injunction and manipulated records, and that the trust was the true owner having obtained possession and a registered gift deed prior to the sale deeds. Chandrashekhar resisted, citing the decree in RCS No.539 of 1979, alleging fraud in the gift deed, and raising limitation. The trial court decreed the suit in favor of the trust on 21.02.1995, and the first appellate court (RCA No.156 of 1996) affirmed, prompting Second Appeal No.379 of 1998 by Chandrashekhar and Shaikh. Both second appeals were heard together. The High Court framed the following substantial questions of law: (i) Whether, when both parties claim through the same predecessor, the mis-reading of the property conveyed constitutes a substantial question; (ii) Whether the pendency of the earlier suit (RCS No.539/1979 and the resulting SA No.166/1986) barred the entertainment of the subsequent suit for possession; and (iii) Whether a prior registered gift deed confers better title than a subsequent sale deed. The judgment excerpt provided does not include the court’s analysis or final decision on these questions. The oral judgment was pronounced on November 23/24, 2006, but only the initial portion containing the framing of issues is available in the extracted text.

Issue of Consideration

Whether the first appellate court rightly appreciated the competing claims of title when both parties trace through the same vendor, Sonaji; Whether the suit for possession by the trust was maintainable in view of the pendency of the earlier suit and appeal; Whether prior registered gift deed confers better title than subsequent sale deed

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Case Details

2006 LawText (BOM) (11) 4

Second Appeal No. 166 of 1986 and Second Appeal No. 379 of 1998

2006-11-23

S.B. Deshmukh, J.

V.J. Dixit, Dipali Ansingkar, M.V. Deshpande

Chandrashekhar Shankarrao Kulkarni, Shaikh Gulab Shaikh Imam

Rahul Shikshan Prasarak Mandal

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Nature of Litigation

Civil property disputes involving two suits: one for perpetual injunction (RCS 539/1979) and another for declaration and recovery of possession (RCS 174/1985), both arising from conflicting claims of title over the same plot.

Remedy Sought

In RCS 539/1979, Chandrashekhar sought perpetual injunction against the trust from interfering with the suit property. In RCS 174/1985, the trust sought declaration of ownership and recovery of possession against Chandrashekhar and Shaikh.

Filing Reason

In RCS 539/1979, the trust attempted excavation on the plot claimed by Chandrashekhar, prompting him to file for injunction. In RCS 174/1985, the trust alleged that Chandrashekhar obtained an ex-parte injunction and manipulated records, and claimed ownership based on a gift deed.

Previous Decisions

Trial court in RCS 539/1979 decreed in favor of Chandrashekhar on 31.1.1987; first appellate court (RCA 49/1984) reversed (implied). In RCS 174/1985, trial court decreed in favor of the trust on 21.2.1995; first appellate court (RCA 156/1996) affirmed (implied).

Issues

Whether both parties claiming through same predecessor in title and mis-reading of property conveyed affects title determination. Whether the courts below should have entertained the trust's suit for possession in view of the pendency of the earlier suit and appeal. Whether a prior registered gift deed confers better title than a subsequent sale deed.

Submissions/Arguments

Plaintiff Chandrashekhar: claims title via sale deeds dated 18.1.1974 and 11.4.1978 from Sonaji; trust's gift deed is fraudulent; trust tried to encroach; trust has no right. Defendant trust in RCS 539/1979: owned property by registered gift deed dated 29.8.1973; sale deeds are false; no title on Sonaji to transfer after gift; entries are collusive. Plaintiff trust in RCS 174/1985: obtained possession from Sonaji on 7.8.1973 and registered gift deed on 29.8.1973; Chandrashekhar obtained ex-parte injunction and fabricated records; trust is lawful owner; seek possession. Defendant Chandrashekhar in RCS 174/1985: earlier suit RCS 539/1979 decreed in his favor; gift deed is fraudulent; trust's suit is barred by limitation; trust failed to act after gift.

Judgment Excerpts

Both the parties are claiming through the same predecessor in title. Mis-reading of property conveyed is the substantial question of law. Both the courts below have proceeded on the basis that since the gift deed is executed prior to the sale deed and the same is registered gift deed, the present plaintiff has better title.

Procedural History

Sonaji delivered possession to trust on 07.08.1973 and executed registered gift deed on 29.08.1973. On 18.01.1974, Chandrashekhar purchased plot from Sonaji by registered sale deed; additional sale deed executed on 11.04.1978. In 1974, Chandrashekhar filed RCS 442/1974 against Municipal Council after demolition notice under Section 189; trust's impleadment application rejected. In September 1979, Chandrashekhar filed RCS 539/1979 for perpetual injunction; ex-parte temporary injunction granted. Written statement filed by trust on 30.07.1981. Trial court decreed RCS 539/1979 in favour of Chandrashekhar on 31.01.1987. First appeal RCA 49/1984 filed (year unclear); allowed, setting aside trial decree. Second Appeal 166/1986 filed by Chandrashekhar; substantial question framed on 07.10.1986. On 12.02.1985, trust filed RCS 174/1985 for declaration and possession. Written statement filed by Chandrashekhar on 17.07.1985. Trial court decreed RCS 174/1985 in favour of trust on 21.02.1995. First appeal RCA 156/1996 filed; dismissed, affirming trial decree. Second Appeal 379/1998 filed by Chandrashekhar and Shaikh; substantial questions framed on 19.11.1998. Both second appeals clubbed and heard together; oral judgment pronounced on 23-24.11.2006.

Acts & Sections

  • Bombay Public Trusts Act, 1950:
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