Bombay High Court Allows Second Appeal in Suit for Possession Based on Title — Sale Deed Found to Be a Sham Transaction Without Consideration. The court held that the respondents failed to prove the sale deed dated 02/01/1991 as required under Section 68 of the Evidence Act, 1872, and Section 54 of the Transfer of Property Act, 1882, and thus the appellants remained the owners entitled to possession.

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

The appellants, Hausu Dhondba Uike and Ganba Dhondba Uike, owned agricultural field Survey No.110 at village Wai. Due to poor financial condition, they permitted respondent No.1, their cousin, to cultivate the land about 7-8 years before filing the suit in 1999. In 1999, the appellants learned that the respondents had received fertilizer bags from the government for the suit field and demanded half, but the respondents refused and claimed ownership. Upon enquiry, the appellants discovered that the respondents had mutated their names in revenue records based on an alleged sale deed dated 02/01/1991. The appellants denied executing any sale deed or receiving consideration. They filed Regular Civil Suit No.17 of 1999 for possession and declaration of title. The trial court decreed the suit in favor of the appellants on 22/04/2002, holding that the sale deed was not proved. The respondents appealed in Regular Civil Appeal No.217 of 2002, and the Second Additional District Judge, Nagpur reversed the decree on 03/05/2003, dismissing the suit. The appellants then filed the present second appeal. The High Court framed the substantial question of law: whether the lower appellate court erred in holding that the sale deed was proved. The court noted that the respondents failed to examine any attesting witness as required under Section 68 of the Evidence Act, 1872, and did not prove payment of consideration. The court also observed that the respondents' possession was initially permissive, and they failed to establish any change in title. The High Court allowed the appeal, set aside the lower appellate court's judgment, and restored the trial court's decree, directing the respondents to hand over possession within three months.

Headnote

A) Property Law - Sale Deed - Burden of Proof - Section 54 Transfer of Property Act, 1882 - The burden to prove a valid sale lies on the party asserting it; when the plaintiffs deny execution and consideration, the defendant must prove the sale deed was executed for consideration. Held that the respondents failed to discharge this burden as they did not examine the attesting witnesses or prove payment of consideration (Paras 8-12).

B) Evidence Act - Attestation - Section 68 Evidence Act, 1872 - For a sale deed to be proved, at least one attesting witness must be examined if the execution is denied. Held that the respondents' failure to examine any attesting witness rendered the sale deed unproved (Para 10).

C) Property Law - Possession - Permissive Possession - When possession is initially permissive, the burden shifts to the person claiming ownership to show a change in title. Held that the appellants permitted the respondents to cultivate the land, and the respondents' assertion of ownership based on an unproven sale deed did not defeat the appellants' title (Paras 5-7).

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Issue of Consideration

Whether the sale deed dated 02/01/1991 was a genuine transaction supported by consideration, and whether the respondents acquired valid title to the suit property.

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Final Decision

The High Court allowed the second appeal, set aside the judgment and decree of the lower appellate court, and restored the trial court's decree. The respondents were directed to hand over possession of the suit field to the appellants within three months.

Law Points

  • burden of proof on defendant to prove sale
  • sham transaction
  • absence of consideration
  • Section 54 Transfer of Property Act
  • 1882
  • Section 68 Evidence Act
  • 1872
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Case Details

2014 LawText (BOM) (01) 154

Second Appeal No. 407 of 2003

2014-01-15

S. B. Shukre, J.

Shri V. A. Dhabe for the appellants, Shri A. P. Kalmeghe for the respondents

Hausu Dhondba Uike and Ganba Dhondba Uike

Sahebrao Chintaman Salam and Ashok Chintaman Salam

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Nature of Litigation

Civil suit for possession and declaration of title based on ownership.

Remedy Sought

Appellants sought possession of the suit field and declaration that they are the owners.

Filing Reason

Respondents claimed ownership based on an alleged sale deed and refused to vacate the suit field.

Previous Decisions

Trial court decreed the suit in favor of appellants on 22/04/2002; lower appellate court reversed the decree on 03/05/2003.

Issues

Whether the sale deed dated 02/01/1991 was a genuine transaction supported by consideration. Whether the respondents acquired valid title to the suit property.

Submissions/Arguments

Appellants argued that they never executed any sale deed nor received consideration; the sale deed was a sham. Respondents contended that the sale deed was valid and they became owners.

Ratio Decidendi

The burden to prove a sale deed lies on the party asserting it; failure to examine attesting witnesses and prove consideration renders the sale deed unproved. Permissive possession does not confer title.

Judgment Excerpts

The respondents have not examined any attesting witness to the sale deed. The burden to prove the sale deed was on the respondents, which they failed to discharge.

Procedural History

Appellants filed Regular Civil Suit No.17 of 1999 which was decreed on 22/04/2002 by Civil Judge, Junior Division, Katol. Respondents appealed in Regular Civil Appeal No.217 of 2002, which was allowed on 03/05/2003 by Second Additional District Judge, Nagpur, dismissing the suit. Appellants then filed Second Appeal No.407 of 2003 in the High Court.

Acts & Sections

  • Transfer of Property Act, 1882: Section 54
  • Indian Evidence Act, 1872: Section 68
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