Bombay High Court Declares LIC Owner of Suit Property, Orders Removal of Unauthorized Construction by Defendants. Defendants' claim based on revenue stay order and adverse possession fails as LIC's title from 1948 conveyance and statutory vesting under Life Insurance Corporation Act, 1956 is established.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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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)

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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.

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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
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Case Details

2018 LawText (BOM) (12) 100

SUIT NO. 3523 OF 2002

2018-12-05

G.S. PATEL, J

Mr Ajay Khaire, I/b M/s. The Law Point, for the Plaintiff; Mr Rajesh Kachare, with Amit Potnis, I/b Tamhane & Co, for Defendants Nos. 1 to 4; Mrs Sheeja John, I/b M/s MP Savla & Co, for Defendant No. 1

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Nature of Litigation

Civil suit for declaration of ownership, removal of construction, and possession of immovable property.

Remedy Sought

LIC sought declaration that it is the owner of the suit property, declaration that a stay order dated 11th April 2002 confers no right on Defendants, removal of all construction, and delivery of possession.

Filing Reason

LIC claimed that Defendants had encroached upon and constructed on its property without any right.

Issues

Whether LIC has proved its title to the suit property? Whether Defendants have acquired any right by adverse possession? Whether the stay order dated 11th April 2002 confers any right on Defendants? Whether LIC is entitled to possession, removal of construction, and mesne profits?

Submissions/Arguments

LIC argued that it derived title from a registered conveyance of 1948 and statutory vesting under the Life Insurance Corporation Act, 1956, and that Defendants had no right to the property. Defendants contended that they had been in possession for over 12 years and had acquired title by adverse possession, and that the revenue stay order supported their claim.

Ratio Decidendi

LIC proved its title through a registered conveyance and statutory vesting, shifting the burden to Defendants. Defendants failed to prove adverse possession as they did not establish ouster of the true owner or hostile possession for the statutory period. Revenue entries and a stay order do not confer title. Therefore, LIC is entitled to possession, removal of construction, and mesne profits.

Judgment Excerpts

The Plaintiff is the Life Insurance Corporation of India constituted under the Life Insurance Corporation Act 1956. According to LIC, by a registered conveyance dated 20th August 1948 one Gurbux Rai Agarwal sold Survey No. 204 Hissa No.1 to the erstwhile Asian Assurance Company Limited. The Plaint then goes on to say that in 1968 upon the conduct of a survey under the new City Survey Regime, old Survey No. 204 Hissa No.1 was assigned City Survey No. 1446.

Procedural History

The suit was filed in 2002. After evidence and arguments, judgment was reserved on 22nd November 2018 and pronounced on 5th December 2018.

Acts & Sections

  • Life Insurance Corporation Act, 1956:
  • Limitation Act, 1963: Article 65
  • Code of Civil Procedure, 1908: Order 20 Rule 12
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