Case Note & Summary
The Life Insurance Corporation of India (LIC) filed a suit seeking declaration of ownership, removal of construction, and possession of land in Eksar, Borivali, Mumbai. LIC claimed title through a registered conveyance dated 20th August 1948 from Gurbux Rai Agarwal to Asian Assurance Company Limited, and subsequent statutory vesting under the Life Insurance Corporation Act, 1956. The suit property comprised two CTS numbers: 2400 (area 4,364.6 sq m) and 1446 (area 2,311.4 sq m), totaling 6,676 sq m. LIC alleged that Defendants 1 to 4, claiming through Defendant No.5 Rajesh Builders, had constructed a stone boundary wall, grill gates, drainage, toilet block, shed, and cabins without any right. Defendants contended that they had acquired title by adverse possession and relied on a stay order dated 11th April 2002 from the Maharashtra Revenue and Forest Department, which stayed an order of the Additional Commissioner, Konkan Division, dated 28th October 1991. The court examined the evidence, including the registered conveyance, vesting order, revenue records, and oral testimony. It held that LIC had proved its title, and the burden shifted to Defendants to show better title. The Defendants failed to prove adverse possession as they did not establish ouster of LIC or hostile possession for the statutory period. The revenue entries and stay order did not confer title. The court decreed the suit in favor of LIC, declaring it the owner, ordering removal of construction, delivery of possession, and entitlement to mesne profits from the date of suit until possession, to be determined separately.
Headnote
A) Property Law - Title and Ownership - Statutory Vesting - Life Insurance Corporation Act, 1956 - LIC claimed title through a registered conveyance of 1948 to Asian Assurance and subsequent statutory vesting under the Life Insurance Corporation Act, 1956. The court held that LIC had proved its title by producing the conveyance and vesting order, and the burden shifted to Defendants to show better title. (Paras 1-10) B) Property Law - Adverse Possession - Burden of Proof - Limitation Act, 1963, Article 65 - Defendants claimed adverse possession for over 12 years. The court held that the burden was on Defendants to prove ouster of the true owner and hostile possession for the statutory period. Mere revenue entries or a stay order do not constitute adverse possession. (Paras 11-14) C) Property Law - Revenue Records - Evidentiary Value - Revenue records are not documents of title and do not confer ownership. The stay order dated 11th April 2002 from the Revenue Department does not confer any right, title or interest on the Defendants. (Paras 2, 15) D) Property Law - Mesne Profits - Entitlement - Code of Civil Procedure, 1908, Order 20 Rule 12 - LIC is entitled to mesne profits from the date of suit until delivery of possession, to be determined in separate proceedings. (Para 16)
Issue of Consideration
Whether the Plaintiff LIC has established its title to the suit property and is entitled to possession and removal of construction, and whether the Defendants have acquired any right by adverse possession or under a revenue stay order.
Final Decision
The suit is decreed in favor of LIC. It is declared that LIC is the owner of the suit property. The stay order dated 11th April 2002 does not confer any right on Defendants. Defendants are directed to remove all construction and deliver vacant possession to LIC within three months. LIC is entitled to mesne profits from the date of suit until delivery of possession, to be determined in separate proceedings.
Law Points
- Title to property
- Adverse possession
- Burden of proof
- Statutory vesting
- Revenue records not determinative of title
- Stay order does not confer title





