Madras High Court Allows Second Appeal in Recovery of Possession Case — Sale Deed Valid Despite Non-Execution of Rental Agreement. Plaintiff's title established through registered sale deed and possession handed over; defendant's denial of tenancy does not negate ownership.

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

The plaintiff (since deceased, represented by legal heirs) filed a suit for recovery of possession and arrears of rent against the defendant. The plaintiff claimed that he purchased the suit property from the defendant by a registered sale deed dated 13.10.1986 for Rs.14,000/-, and the defendant remained in possession as a tenant on a monthly rent of Rs.300/-. The defendant paid rent till 01.10.2002 but failed to vacate despite notice. The defendant denied the sale and tenancy, claiming that the property belonged to his paternal uncle Ethiraj Mudaliar and that he was in possession with his permission. The Trial Court decreed the suit, holding that the plaintiff proved title and tenancy. On appeal, the First Appellate Court reversed the decree, holding that the plaintiff failed to prove the rental agreement. The plaintiff filed a second appeal under Section 100 CPC. The High Court framed a substantial question of law: whether the First Appellate Court's finding was perverse. The High Court held that the First Appellate Court's finding was perverse because it ignored the registered sale deed which established the plaintiff's title, and the defendant's own admission of possession and payment of rent. The court noted that the defendant did not produce any evidence to rebut the sale deed or prove Ethiraj Mudaliar's title. The court also held that the defendant, having attorned to the plaintiff by paying rent, was estopped from denying the plaintiff's title under Section 116 of the Evidence Act. The High Court allowed the second appeal, set aside the First Appellate Court's judgment, and restored the Trial Court's decree with costs.

Headnote

A) Civil Procedure - Second Appeal - Substantial Question of Law - Section 100 CPC - The High Court can interfere with findings of fact if they are perverse or based on no evidence - Held that the First Appellate Court's finding that the plaintiff failed to prove the rental agreement was perverse as it ignored the registered sale deed and the defendant's admission of possession (Paras 10-15).

B) Property Law - Title - Registered Sale Deed - Transfer of Property Act, 1882, Section 54 - A registered sale deed is conclusive proof of transfer of title unless rebutted - Held that the plaintiff's title was established by the registered sale deed dated 13.10.1986 and the defendant failed to rebut it (Paras 7-9).

C) Evidence Act - Estoppel - Section 116 - A tenant is estopped from denying the landlord's title - Held that the defendant, having attorned to the plaintiff by paying rent, cannot deny the plaintiff's title (Paras 12-14).

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Issue of Consideration

Whether the First Appellate Court was justified in reversing the Trial Court's decree on the ground that the plaintiff failed to prove the rental agreement, despite the plaintiff having established title through a registered sale deed and the defendant's possession being permissive?

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Final Decision

Second Appeal allowed. The judgment and decree of the First Appellate Court dated 22.11.2010 in A.S.No.17 of 2010 are set aside. The judgment and decree of the Trial Court dated 20.01.2010 in O.S.No.1 of 2003 are restored. The respondent is directed to pay costs.

Law Points

  • Section 100 CPC
  • second appeal only on substantial question of law
  • concurrent findings of fact not interfered with unless perverse
  • registered sale deed confers title
  • burden of proof on defendant to disprove sale
  • tenancy can be inferred from conduct
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Case Details

2025 LawText (MAD) (01) 452

S.A.No.289 of 2011

2025-01-29

R.N.MANJULA

2025:MHC:307

Mr.K.V.Ananthakrushnan for appellants, Mr.R.P.Ruban Chakravarthy for Mr.S.Kaithamalai Kumaran for respondent

D.Venkatesan (died) and others (legal heirs)

G.Rajendran

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Nature of Litigation

Civil suit for recovery of possession and arrears of rent

Remedy Sought

Plaintiff sought recovery of possession of suit property and arrears of rent from defendant

Filing Reason

Defendant failed to vacate the suit property after termination of tenancy despite legal notice

Previous Decisions

Trial Court decreed the suit; First Appellate Court reversed the decree

Issues

Whether the First Appellate Court's finding that the plaintiff failed to prove the rental agreement is perverse? Whether the plaintiff's title to the suit property is established by the registered sale deed?

Submissions/Arguments

Appellants argued that the First Appellate Court erred in reversing the Trial Court's decree despite the plaintiff proving title through a registered sale deed and the defendant's possession as tenant. Respondent argued that the plaintiff failed to prove the rental agreement and that the property belonged to Ethiraj Mudaliar.

Ratio Decidendi

A registered sale deed is conclusive proof of transfer of title unless rebutted. The First Appellate Court's finding that the plaintiff failed to prove the rental agreement was perverse as it ignored the registered sale deed and the defendant's admission of possession and payment of rent. A tenant is estopped from denying the landlord's title under Section 116 of the Evidence Act.

Judgment Excerpts

The First Appellate Court has not considered the fact that the plaintiff has purchased the suit property by way of a registered sale deed and the defendant has not produced any document to show that the suit property belonged to Ethiraj Mudaliar. The defendant has admitted that he is in possession of the suit property and that he paid rent to the plaintiff. Hence, the defendant is estopped from denying the plaintiff's title.

Procedural History

Plaintiff filed O.S.No.1 of 2003 before District Munsif Court, Sholinghur, which decreed the suit on 20.01.2010. Defendant appealed in A.S.No.17 of 2010 before Subordinate Judge, Ranipet, which reversed the decree on 22.11.2010. Plaintiff filed Second Appeal No.289 of 2011 before Madras High Court, which was allowed on 29.01.2025.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100
  • Transfer of Property Act, 1882: Section 54
  • Indian Evidence Act, 1872: Section 116
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