High Court of Karnataka Adjudicates Appeal in Ejectment Suit — Dispute Over Tenancy and Part Performance Under Section 53A Transfer of Property Act. Plaintiffs Claimed Tenancy Had Terminated; Defendants Asserted Possession Under Agreement to Sell and Assignment, Invoking Shield of Part Performance.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

This appeal under Section 96 of the Code of Civil Procedure, 1908, arose from the dismissal of a suit for ejectment filed by five sisters against two defendants. The plaintiffs claimed ownership of municipal No.138, Dharmaraja Koil Street, Shivajinagar, Bangalore, comprising ground, first and second floors, through a partition decree. They alleged that defendant No.1 was a tenant in a 400 sq. ft. portion at a monthly rent of Rs.2,000 and that the tenancy had been terminated by notice dated 09.07.2007, but possession was not surrendered. The defendants denied the landlord-tenant relationship. Defendant No.1 asserted that two shops in the property were agreed to be sold to him by the plaintiffs under an agreement dated 02.11.1992, that he was put in possession in part performance of that contract, and that the entire consideration of Rs.4,75,000 had been paid. He claimed to have assigned his rights to defendant No.2, K.P. Harish, through an assignment deed dated 12.09.2003/01.10.2003. Defendant No.2, impleaded during trial, claimed possession through that assignment. Another shop was stated to be in possession of one Kailash Jain as a mortgagee under defendant No.1. Both defendants invoked Section 53A of the Transfer of Property Act as a shield against dispossession. The trial court dismissed the suit on 27.06.2011, holding that no landlord-tenant relationship existed and that defendants were protected under part performance. In the appeal before the High Court, the plaintiffs contended that the assignment was false and that defendant No.1 had no right to induct a third party. They argued that even if an agreement to sell existed, it did not confer a right to retain possession after termination of tenancy. The defendants maintained that the suit was not maintainable for non-joinder of necessary parties and absence of jural relationship, and that they were entitled to remain in possession until execution of a registered sale deed. During the hearing, the High Court identified the core issue as whether the plaintiffs could recover possession or were barred by Section 53A of the Transfer of Property Act. The provided excerpt of the judgment, however, ends before the court’s analysis and final decision. Consequently, the complete reasoning and operative part of the High Court’s judgment are not available in the supplied text.

Headnote

A) Transfer of Property – Part Performance – Section 53A, Transfer of Property Act, 1882 – Whether defendants in possession under an unregistered agreement to sell can resist ejectment on part performance despite no registered conveyance – Plaintiffs sought ejectment of defendants as tenants; defendants claimed possession under an agreement to sell dated 02.11.1992 and assignment, raising the shield of part performance. The High Court considered the scope of Section 53A and the necessity of a written contract, possession, and willingness to perform. (Paras 19-22)

B) Civil Procedure – Ejectment – Landlord-Tenant Relationship – Whether jural relationship of landlord and tenant existed between plaintiffs and defendants – Plaintiffs claimed tenancy at Rs.2,000 per month and had terminated the lease by notice dated 09.07.2007; defendants denied any tenancy and asserted possession under part performance of sale agreement. The trial court found no landlord-tenant relationship, leading to dismissal of suit. (Paras 4, 14-15)

C) Civil Procedure – Non-joinder – Order I Rule 9 CPC – Defendants contended suit was bad for non-joinder of Kailash Jain, a mortgagee in possession of one shop, and K.P. Harish before impleadment. The issue was raised but not decided in the provided excerpt. (Paras 13)

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Issue of Consideration

Whether the plaintiffs are entitled to possession of the schedule property or whether the defendants are protected under Section 53A of the Transfer of Property Act by virtue of part performance of an agreement to sell; Whether there existed a jural relationship of landlord and tenant between the parties; Whether the suit is bad for non-joinder of necessary parties.

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Final Decision

Not mentioned (judgment text incomplete)

Law Points

  • Section 53A of Transfer of Property Act protects transferee in possession under part performance
  • ejectment suit requires proof of landlord-tenant relationship and valid termination
  • assignment of rights under agreement to sell may transfer protections
  • non-joinder of necessary parties can be fatal to suit
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Case Details

2020 LawText (KAR) (09) 97

RFA No.1677/2011

2020-09-23

N.K. Sudhindrarao

D.R. Sundaresha (for appellants 1,3,4,5), Sreevatsa (Senior Counsel for appellant 2), Srinivasa P. Dhondale (for respondents)

Smt. Mumtaz Begum, Smt. Gulnaz Begum, Smt. Shanaz Begum, Smt. Dilshad Begum, Smt. Sultana Begum

Sri M. Balaji, Sri K.P. Harish

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Nature of Litigation

Ejectment suit filed by plaintiffs claiming to be owners and alleging defendants as tenants, seeking possession after terminating tenancy.

Remedy Sought

Plaintiffs sought ejectment of defendants from schedule property.

Filing Reason

Defendants allegedly failed to vacate after termination of tenancy; plaintiffs needed possession.

Previous Decisions

Trial court dismissed suit on 27.06.2011, finding no landlord-tenant relationship and defendants protected under part performance. The present appeal challenges that dismissal.

Issues

Whether the plaintiffs are entitled to possession of the schedule property or whether the defendants are protected under Section 53A of the Transfer of Property Act by virtue of part performance of an agreement to sell. Whether there existed a jural relationship of landlord and tenant between the parties. Whether the suit is bad for non-joinder of necessary parties.

Submissions/Arguments

Plaintiffs argued that defendant No.1 colluded with defendant No.2 to knock off the property, that the assignment agreement was false, and that rights under the lease were terminated in accordance with law. Plaintiffs contended that even if a sale agreement existed, it did not relieve defendants of the duty to vacate, and that defendant No.1 had no right to induct a third party. Defendants argued that there was no landlord-tenant relationship and that the suit was not maintainable for non-joinder of K.P. Harish and Kailash Jain. Defendants claimed possession under an agreement to sell dated 02.11.1992 in part performance, with full consideration paid, and that they were protected under Section 53A TP Act. Defendant No.2 claimed through assignment deed dated 12.09.2003/01.10.2003, asserting he stepped into the shoes of defendant No.1.

Judgment Excerpts

Defendant No.1 merely has assigned his right under the agreement dated 12.09.2003 and 01.10.2003 to one K.P.Harish and presently defendant No.1 is in possession of one shop and another shop is in possession of one Kailash Jain as a mortgagee under defendant No.1. The Core point or matter for consideration would be as to whether the plaintiff are entitled for passion of the SSP or whether they are debarred from recovery the same from the defendant by virtue of Section 53-A Transfer of property Act. Even in case if it is assumed that the sale agreement was duly executed and is in existence, that has nothing to do with that of duties of the defendants to vacate the schedule property under the agreement.

Procedural History

Plaintiffs filed O.S.No.26594/2007 before XXVI Addl. City Civil Judge, Mayo Hall Unit, Bengaluru, for ejectment. Defendants filed written statements denying tenancy and claiming part performance. Defendant No.2 (K.P. Harish) was impleaded. Plaint was amended twice. Common evidence was recorded in related suit O.S. No.26585/2007. PW1 and DW1-4 testified; exhibits P1 to P61, D1 to D101, and Ex.C1 were marked. Trial court dismissed the suit on 27.06.2011. Plaintiffs filed RFA No.1677/2011 under Section 96 CPC before High Court of Karnataka. During trial, OS No.25720/2007 was pending with status quo order. Final Decree Proceedings No.15001/2004 also mentioned.

Acts & Sections

  • Transfer of Property Act, 1882: Section 53A
  • Code of Civil Procedure, 1908: Section 96, Order VII
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