Gujarat High Court Allows Appeal in Property Dispute Case Due to Non-Examination of Key Witness and Adverse Inference Under Section 114(g) of Evidence Act. Sale Deed in Favour of Plaintiffs Proved Valid, Subsequent Transfers by Vendor After Losing Title Held Void.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The present First Appeal under Section 96 of the Code of Civil Procedure, 1908, was filed by the appellants-original plaintiffs challenging the judgment and decree dated 05.09.2017 passed by the learned Additional Senior Civil Judge, Kalol, Gandhinagar, in Special Civil Suit No.47 of 2016, which dismissed the plaintiffs' suit for declaration of title and possession. The brief facts are that the suit land, a sub-plot admeasuring 330 sq. yards, was originally owned by Kahalia and Amthabhai Kahlia, who obtained non-agricultural permission in 1990. The land was sold to Jayantibhai Prahladbhai Patel in 1992, who then sold it to defendant No.1 in 1994. The plaintiffs purchased the suit property from defendant No.1 by a registered sale deed dated 24.10.1997 for Rs.14,000/- and claimed to be in possession. However, defendant No.1 subsequently executed another registered sale deed in favour of defendant No.2 on 30.06.1999, and defendant No.2 mortgaged the property to defendant No.4 (a financial institution), which took possession under Section 29 of the State Financial Corporations Act, 1951, and proposed to sell it by public auction. The plaintiffs issued a legal notice in 2007 and filed the suit in 2016 seeking declaration of title and possession. The trial court dismissed the suit, holding that the plaintiffs failed to prove their title and possession. The legal issues before the High Court were whether the trial court erred in not drawing an adverse inference under Section 114(g) of the Indian Evidence Act, 1872, for the non-examination of defendant No.1, who was the common vendor, and whether the plaintiffs had proved their title. The appellants argued that they had proved their registered sale deed and that the trial court wrongly placed the burden on them to disprove the subsequent sale deed. The respondents argued that the plaintiffs failed to prove possession and that the subsequent sale deed was valid. The High Court analyzed that defendant No.1, who executed both sale deeds, was the best witness to clarify the transactions, but he was not examined by the defendants. The court held that an adverse inference must be drawn under Section 114(g) of the Evidence Act that his evidence would have been unfavourable to the defendants. The court also noted that the plaintiffs had proved their registered sale deed, and the defendants failed to prove the validity of the subsequent sale deed. The High Court allowed the appeal, set aside the trial court's judgment, and decreed the suit in favour of the plaintiffs, declaring their title and directing possession to be handed over to them.

Headnote

A) Civil Procedure - First Appeal under Section 96 CPC - Challenge to dismissal of suit - Appeal against judgment and decree dated 05.09.2017 in Special Civil Suit No.47 of 2016 - Plaintiffs challenged dismissal of suit for declaration of title and possession - Held that trial court erred in not drawing adverse inference under Section 114(g) of Evidence Act for non-examination of defendant No.1 (vendor) who executed both sale deeds (Paras 1, 10-12).

B) Evidence Act - Section 114(g) - Adverse Inference - Non-examination of key witness - Defendant No.1, who executed sale deeds in favour of plaintiffs and subsequently in favour of defendant No.2, was not examined - Held that adverse inference must be drawn that his evidence would have been unfavourable to defendants (Paras 10-12).

C) Property Law - Title and Possession - Registered Sale Deed - Plaintiffs proved their registered sale deed dated 24.10.1997 from defendant No.1 - Defendants failed to prove subsequent sale deed dated 30.06.1999 from same vendor - Held that plaintiffs' title is valid and subsequent transfer by vendor after losing title is void (Paras 3.1-3.3, 10-12).

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Issue of Consideration

Whether the trial court erred in dismissing the suit for declaration of title and possession when the plaintiffs had proved their registered sale deed and the defendants failed to examine the vendor to prove the subsequent sale deed?

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Final Decision

The High Court allowed the appeal, set aside the judgment and decree dated 05.09.2017 passed by the learned Additional Senior Civil Judge, Kalol, in Special Civil Suit No.47 of 2016, and decreed the suit in favour of the plaintiffs, declaring their title and directing possession to be handed over to them.

Law Points

  • Adverse inference under Section 114(g) of Indian Evidence Act
  • 1872 for non-examination of key witness
  • Burden of proof on party claiming title through subsequent sale
  • Validity of registered sale deed
  • Section 96 of Code of Civil Procedure
  • 1908
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Case Details

2026 LawText (GUJ) (03) 614

R/First Appeal No. 4159 of 2017 with Civil Application (For Vacating Interim Relief) No. 1 of 2025

2026-03-09

Devan M. Desai

2026:GUJHC:17352

Mr. H.S. Tolia, Mr. Y.J. Patel, Mr. A.S. Athavadi, Mr. Varun Bharda, Mr. P.P. Majmudar, Mr. Nishit P. Gandhi

Javahar Ashanand Bhatiya & Anr.

Anurup Babulal Sheth & Ors.

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Nature of Litigation

First Appeal under Section 96 of CPC against dismissal of suit for declaration of title and possession.

Remedy Sought

Appellants (original plaintiffs) sought to set aside the trial court's judgment and decree and to decree the suit declaring their title and possession over the suit property.

Filing Reason

The trial court dismissed the suit holding that plaintiffs failed to prove their title and possession, despite plaintiffs having a registered sale deed from defendant No.1.

Previous Decisions

The trial court (Additional Senior Civil Judge, Kalol) dismissed Special Civil Suit No.47 of 2016 on 05.09.2017.

Issues

Whether the trial court erred in not drawing an adverse inference under Section 114(g) of the Indian Evidence Act, 1872, for the non-examination of defendant No.1, who was the common vendor? Whether the plaintiffs proved their title and possession over the suit property based on the registered sale deed dated 24.10.1997?

Submissions/Arguments

Appellants argued that they had proved their registered sale deed and that the trial court wrongly placed the burden on them to disprove the subsequent sale deed executed by the same vendor in favour of defendant No.2. Respondents argued that the plaintiffs failed to prove possession and that the subsequent sale deed was valid, and that the financial institution had taken possession under Section 29 of the SFC Act.

Ratio Decidendi

When a party fails to examine a key witness who is in a position to clarify the facts, an adverse inference under Section 114(g) of the Indian Evidence Act, 1872, must be drawn that the evidence would have been unfavourable. In this case, defendant No.1, who executed both the sale deeds in favour of the plaintiffs and subsequently in favour of defendant No.2, was not examined by the defendants, leading to the inference that his evidence would have supported the plaintiffs' title. The plaintiffs had proved their registered sale deed, and the defendants failed to prove the validity of the subsequent sale deed.

Judgment Excerpts

The present First Appeal is filed under Section 96 of the Code of Civil Procedure, 1908... challenging judgment and decree dated 05.09.2017 passed in Special Civil Suit No.47 of 2016... Defendant No.1, without any authority in law, executed registered sale deed in respect of the same suit land in favour of Defendant No.2 on 30.06.1999. Adverse inference under Section 114(g) of the Evidence Act must be drawn against the defendants for non-examination of defendant No.1.

Procedural History

The original plaintiffs filed Special Civil Suit No.47 of 2016 before the Additional Senior Civil Judge, Kalol, seeking declaration of title and possession. The suit was dismissed on 05.09.2017. The plaintiffs then filed the present First Appeal No.4159 of 2017 under Section 96 of CPC before the High Court of Gujarat. A connected Civil Application for vacating interim relief was also filed. The High Court heard the appeal and delivered judgment on 09.03.2026.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 96
  • Indian Evidence Act, 1872: Section 114(g)
  • State Financial Corporations Act, 1951: Section 29
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