Bombay High Court Dismisses Second Appeal in Property Dispute — Upholds Concurrent Findings of Title and Adverse Possession. Court holds that plea of adverse possession must be specifically pleaded and proved, and that the First Appellate Court's reversal of trial court's finding on adverse inference was justified.

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

The case involves a Second Appeal filed by the appellants (original plaintiffs) against the judgment of the First Appellate Court which reversed the trial court's decree in their favor. The dispute pertains to Lote No. XXXIII in Sancoale, Goa. The appellants claimed that the suit property was part of a larger property owned by late Joaquim Gomes and that they had acquired title by adverse possession. The respondents, M/s. Zuari Agro Chemicals Ltd. and Communidade of Sancoale, contested the claim. The trial court had decreed the suit in favor of the plaintiffs, but the First Appellate Court reversed that decision. The Second Appeal was admitted on five substantial questions of law. The High Court examined each question. On the first question, the Court found that the plaint did not contain a specific plea that Lote No. XXXIII was within the pucca laterite stone wall, and the First Appellate Court's finding was not perverse. On the second question, the Court held that the First Appellate Court correctly appreciated the evidence regarding title, and the finding was not contrary to the Code of Communidades or Transfer of Property Act. On the third question, the Court found that the officers executing the transfer documents had the requisite authority. On the fourth question, the Court held that the adverse inference for non-examination of defendant no. 2 was discretionary and the First Appellate Court rightly reversed the trial court's finding. On the fifth question, the Court upheld the First Appellate Court's finding on the certificates issued by the Communidade. Consequently, the High Court dismissed the Second Appeal, finding no merit in any of the substantial questions of law.

Headnote

A) Property Law - Adverse Possession - Specific Plea - The court considered whether the finding that there was no specific plea that Lote No. XXXIII was within the pucca laterite stone wall erected by late Joaquim Gomes was perverse. Held that the substance of the plaint, particularly para 12, did not contain a specific plea, and the finding was not perverse (Paras 2-5).

B) Property Law - Title - Code of Communidades and Transfer of Property Act - The court examined whether the finding that defendant no. 1 had title to the suit property was arrived at in disregard of the Code of Communidades and Transfer of Property Act. Held that the First Appellate Court correctly appreciated the evidence and the title documents, and the finding was not perverse (Paras 6-10).

C) Property Law - Transfer of Property - Authority of Officers - The court considered whether defendant no. 1 could step into the shoes of the original owner in the absence of authority in the officers executing transfer documents. Held that the transfer documents were validly executed and the officers had the requisite authority (Paras 11-15).

D) Evidence Law - Adverse Inference - Non-examination of Witness - The court examined whether the First Appellate Court was right in reversing the trial court's finding that an adverse inference was available against defendant no. 2 for its non-examination. Held that the adverse inference under Section 114(g) of the Evidence Act is discretionary and the First Appellate Court correctly exercised its discretion (Paras 16-20).

E) Property Law - Certificates by Communidade - The court considered whether the finding of the First Appellate Court reversing the trial court's finding on certificates issued by the Communidade was correct. Held that the certificates were properly considered and the finding was not perverse (Paras 21-25).

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Issue of Consideration

Whether the findings of the First Appellate Court on the issues of specific plea regarding Lote No. XXXIII, title of defendant no. 1, authority of officers executing transfer documents, adverse inference for non-examination of defendant no. 2, and certificates issued by Communidade are perverse or contrary to law.

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Final Decision

The Second Appeal is dismissed. The judgment of the First Appellate Court is upheld. No order as to costs.

Law Points

  • Adverse possession must be specifically pleaded and proved
  • Plea of title must be established by clear evidence
  • Code of Communidades provisions govern transfer of communidade property
  • Adverse inference under Section 114(g) of Evidence Act is discretionary
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Case Details

2014:BHC-GOA:2073

Second Appeal No.118 of 2003

2014-08-05

F. M. REIS, J

2014:BHC-GOA:2073

Mr. A. F. Diniz with Mr. Nilesh Takkekar and Mr. N. Noronha for Appellants; Mr. S. D. Lotlikar, Senior Advocate with Mr. D. Pangam and Mr. C. Padgaonkar for Respondents

Smt. Basilia M. Gomes (since deceased by LRs) and others

M/s. Zuari Agro Chemicals Ltd. and Communidade of Sancoale

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Nature of Litigation

Second Appeal against the judgment of the First Appellate Court reversing the trial court's decree in a suit for declaration of title and injunction.

Remedy Sought

Appellants sought to set aside the judgment of the First Appellate Court and restore the trial court's decree.

Filing Reason

Appellants claimed title to Lote No. XXXIII by adverse possession and challenged the title of the respondents.

Previous Decisions

Trial Court decreed the suit in favor of the plaintiffs; First Appellate Court reversed the decree and dismissed the suit.

Issues

Whether the finding that there is no specific plea that Lote No. XXXIII is coming within the pucca laterite stone wall is perverse? Whether the finding that defendant no. 1 has title to the suit property is contrary to the Code of Communidades and Transfer of Property Act? Whether defendant no. 1 could step into the shoes of the original owner in the absence of authority in the officers executing transfer documents? Whether the First Appellate Court was right in reversing the finding on adverse inference for non-examination of defendant no. 2? Whether the First Appellate Court's finding on certificates issued by Communidade is correct?

Submissions/Arguments

Appellants argued that the plaint contained a specific plea regarding the laterite stone wall and that the First Appellate Court ignored material on record. Appellants contended that the title of defendant no. 1 was not properly established and that the transfer documents were invalid for lack of authority. Respondents argued that the findings of the First Appellate Court were based on proper appreciation of evidence and were not perverse.

Ratio Decidendi

The court held that the substantial questions of law raised by the appellants were without merit. The First Appellate Court's findings were based on proper appreciation of evidence and were not perverse. The plea of adverse possession must be specifically pleaded and proved, and the adverse inference under Section 114(g) of the Evidence Act is discretionary.

Judgment Excerpts

The above Second Appeal came to be admitted by an Order dated 08.01.2004 on the following substantial question of law : Whether the finding that there is no specific plea that Lote No. XXXIII is coming within the pucca laterite stone wall erected by late Joaquim Gomes is arrived at ignoring the material on record viz. the substance of the entire plaint, more particularly para 12 of the plaint and as such is perverse and reached contrary to the pleading in the plaint ?

Procedural History

The suit was filed by the appellants (original plaintiffs) in the Trial Court. The Trial Court decreed the suit. The respondents appealed to the First Appellate Court, which reversed the decree and dismissed the suit. The appellants then filed the present Second Appeal under Section 100 CPC, which was admitted on 08.01.2004 on five substantial questions of law.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100
  • Indian Evidence Act, 1872: Section 114(g)
  • Transfer of Property Act, 1882:
  • Code of Communidades:
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