Case Note & Summary
The plaintiffs, Sharad Shantilal Chheda and Taruna Anil Chheda, filed a suit in the Bombay High Court seeking a decree of possession and mesne profits against the defendants, Concord Builders and BEML Limited. The plaintiffs claimed to be co-owners of the suit property, having purchased it from the original owner, Maurice Concessio, under a conveyance dated 22 November 1997. They alleged that the defendants were trespassers occupying a structure on the property without any right, title or interest. The defendants' occupation was based on an unstamped and unregistered agreement dated 11 August 1979, whereby Maurice had agreed to sell the property to Defendant No.1 (Concord Builders) for construction of a new building. The agreement required Defendant No.1 to pay a balance consideration of Rs.40,000 on completion of the building or within 12 months, whichever was later. Despite passage of time, the balance consideration was not paid, and Maurice terminated the agreement. The defendants claimed that the building was not completed, so the time for payment had not arrived. The court held that the plaintiffs had established their title through the conveyance, and the defendants failed to prove any subsisting right or interest. The unregistered agreement did not confer title or a right to possession. Accordingly, the court decreed possession in favor of the plaintiffs and ordered an inquiry into mesne profits.
Headnote
A) Property Law - Title and Possession - Decree of Possession - Plaintiffs proved title by conveyance; defendants failed to prove any right, title or interest - Held that plaintiffs are entitled to possession and mesne profits (Paras 1-2).
Issue of Consideration
Whether the plaintiffs, as purchasers of the suit property, are entitled to a decree of possession and mesne profits against the defendants who claim under an unregistered agreement for sale from the plaintiffs' predecessor-in-title.
Final Decision
Suit decreed in favor of plaintiffs. Plaintiffs entitled to possession of suit property. Inquiry into mesne profits directed.
Law Points
- Title prevails over possession
- Unregistered agreement for sale does not confer title
- Mesne profits recoverable from trespasser
- Possession without title is trespass
