Bombay High Court Allows Second Appeal in Lease Dispute Over Suit Structure and Gada — Sets Aside Appellate Court's Reversal for Ignoring Evidence of Possession and Leasehold Rights. Oral lease of 21 sq. mts. land for monthly rent of Rs. 10/- established through long possession and consistent evidence.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The appellants, Esso Raghu Khandolkar and Vatsala E. Khandolkar, were the plaintiffs in a suit filed before the Civil Judge, Junior Division, Ponda, seeking a declaration of leasehold rights over 21 sq. mts. of land in Survey No. 97/2 of Village Khandola, Ponda Taluka, Goa, along with possession of a suit structure (a gada for selling beedies, cigarettes, etc.) and permanent injunction against the defendants. The plaintiffs claimed that their father had obtained an oral lease from the father of defendant no.6 (the owner) on a monthly rent of Rs. 10/-, and they had constructed the suit structure with the lessor's consent, running the gada for over 20 years. In February 1987, the defendants (relatives) forcibly occupied the structure after being allowed to store articles temporarily. The trial court decreed the suit, but the Additional District Judge, Panaji, allowed the defendants' appeal and dismissed the suit. The plaintiffs then filed the present second appeal. The High Court of Bombay at Goa, presided by Justice P.V. Kakade, heard the appeal. The court found that the lower appellate court had failed to properly appreciate the evidence, including the plaintiffs' long possession and the oral lease, and had reversed the trial court's decree without sufficient justification. The High Court held that the appellate court's findings were perverse and not based on the evidence on record. Consequently, the second appeal was allowed, the judgment of the Additional District Judge was set aside, and the trial court's decree was restored. The court directed the defendants to hand over possession of the suit structure to the plaintiffs and restrained them from interfering with the plaintiffs' possession. The plaintiffs were also awarded costs.

Headnote

A) Civil Procedure - Second Appeal - Interference with Findings of Fact - The High Court in second appeal can interfere if the lower appellate court's findings are perverse or based on no evidence - The appellate court failed to consider material evidence regarding the plaintiffs' long possession and oral lease - Held that the judgment of the appellate court was liable to be set aside (Paras 2-10).

B) Property Law - Lease - Oral Lease - Validity - An oral lease for a monthly rent of Rs. 10/- created by the father of defendant no.6 in favour of the father of plaintiff no.1 was established through consistent evidence of possession for over 20 years - The suit structure and gada were erected with consent of the lessor - Held that the plaintiffs had proved their leasehold rights (Paras 3-8).

C) Evidence - Possession - Presumption - Long and uninterrupted possession for more than 20 years raises a presumption of title or leasehold rights - The plaintiffs' possession of the suit structure and gada was supported by oral and documentary evidence - The appellate court erred in ignoring this evidence (Paras 5-9).

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Issue of Consideration

Whether the Additional District Judge was justified in reversing the trial court's decree without properly appreciating the evidence on record, particularly regarding the plaintiffs' leasehold rights and possession of the suit structure.

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Final Decision

Second appeal allowed. Judgment and order of the Additional District Judge, Panaji dated 30/04/2003 set aside. Judgment and decree of the Civil Judge, Junior Division, Ponda dated 30/04/1999 restored. Respondents directed to hand over possession of suit structure to appellants and restrained from interfering with appellants' possession. Appellants entitled to costs.

Law Points

  • Leasehold rights
  • oral lease
  • possession
  • burden of proof
  • interference with findings of fact
  • second appeal jurisdiction
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Case Details

2006 LawText (BOM) (11) 164

Second Appeal No. 86 of 2003

2006-11-17

P.V. Kakade, J.

2006:BHC-GOA:2295

Shri R.V. Kamat for Appellants; Shri S.D. Lotlikar, Sr. Advocate with Ms. Shambhavi Rao for Respondents

Esso Raghu Khandolkar and Vatsala E. Khandolkar

Sonu Esso Khandolkar (deceased by LRs) and Ladu Anant Naik (deceased by LRs)

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Nature of Litigation

Second appeal against appellate court's reversal of trial court decree in a suit for declaration of leasehold rights, possession, and injunction.

Remedy Sought

Appellants sought restoration of trial court decree declaring their leasehold rights over 21 sq. mts. land, possession of suit structure, and permanent injunction against respondents.

Filing Reason

Respondents forcibly occupied the suit structure in February 1987 after being allowed to store articles temporarily.

Previous Decisions

Trial court decreed the suit; Additional District Judge allowed appeal and dismissed the suit.

Issues

Whether the Additional District Judge erred in reversing the trial court's decree without properly appreciating the evidence on record. Whether the plaintiffs had established their leasehold rights and possession over the suit structure.

Submissions/Arguments

Appellants argued that the appellate court ignored evidence of long possession and oral lease, and its findings were perverse. Respondents supported the appellate court's judgment, contending that the plaintiffs failed to prove leasehold rights.

Ratio Decidendi

In a second appeal under Section 100 CPC, the High Court can interfere if the lower appellate court's findings are perverse or based on no evidence. The appellate court failed to consider material evidence regarding the plaintiffs' long possession and oral lease, rendering its judgment unsustainable.

Judgment Excerpts

Heard the learned Counsel for both the parties. Perused the record. This is an appeal preferred by the unsuccessful plaintiffs against the judgment and order passed by the Additional District Judge, Panaji allowing the appeal and setting aside the judgment and decree passed by the trial Court.

Procedural History

Plaintiffs filed suit in Civil Judge, Junior Division, Ponda, which was decreed. Defendants appealed to Additional District Judge, Panaji, who allowed the appeal and dismissed the suit. Plaintiffs then filed Second Appeal No. 86 of 2003 in the High Court of Bombay at Goa.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100
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