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2007 Supreme(SC) 242

SUPREME COURT OF INDIA
DR. ARIJIT PASAYAT AND S.H. KAPADIA, JJ.
KRISHNAMURTHY S. SETLUR
(DEAD) BY LRS. - Appellant;
Versus
O. V. NARASIMHA SETTY AND OTHERS - Respondents.
Civil Appeal No. 5079 of 2000
Decided on February 23, 2007
Advocates appeared
D.A. Dave, Senior Advocate (R.S. Hegde, Chandra Prakash. Rahul Tyagi and P.P. Singh, Advocates. with him) for the Appellant;
V.A. Mohta, Shanti Bhushan and Jaideep Gupta. Senior Advocates (D. Bharat Kumar, Anand, Ms Indrani, Abhijit Sengupta, Azim H. Laskar, N.K. Nayak and Indra Makwana, Advocates, with them) for the Respondents.

The judgment emphasized the importance of considering crucial questions of law, such as adverse possession and the binding nature of previous judgments, and highlighted the need for a clear and reasoned decision in property disputes.

Headnote:

Adverse Possession - Property Dispute - Limitation Act, 1963, Article 64 - The court discussed the adverse possession claim, the binding nature of previous judgments, and the effect of possession on the computation of the limitation period under Article 64 of the Limitation Act, 1963.

Fact of the Case:

The case involved a property dispute arising from a series of litigations dating back to 1949. The plaintiff, K.S. Setlur, claimed adverse possession of the suit lands and sought a declaration of ownership against the LRs of Iyengar and their alienees.

Finding of the Court:

The trial court decreed the suit in favor of the plaintiff, holding that the possessory title vested in K.S. Setlur and that the defendants had wrongly entered into possession in 1970. The High Court, however, set aside the trial court's judgment, leading to the appeal to the Supreme Court.

Issues: The main issue was whether the plaintiff had proved that the defendants wrongly came into possession of the suit lands in 1970 and whether the plaintiff was entitled to get back the possession from the defendants.

Ratio Decidendi: The court found that the High Court's judgment was a bundle of confusion, quoting depositions of witnesses as findings and failing to answer crucial questions of law, such as the treatment of tenants' possession in the computation of the limitation period under Article 64 of the Limitation Act, 1963.

Final Decision: The Supreme Court allowed the civil appeal, set aside the High Court's judgment, and remitted the case back to the High Court for a fresh decision in accordance with the law, emphasizing the need for expeditious disposal of the appeal.

JUDGMENT

S.H. KAPADIA, J. - This civil appeal arises out of judgment and decree rendered by the Karnataka High Court on 22 - 3 - 1999 filed under Section 96 CPC against judgment and decree dated 11 - 10 - 1996 passed in as No. 3656 of 1981 on the file of the City Civil Judge, Bangalore, decreeing the suit for declaration. By the impugned judgment, the High Court has set aside the judgment and decree dated 11 - 10 - 1996. Hence this civil appeal has been filed by the LRs of deceased Krishnamurthy S. Setlur (the original plaintiff).

2. The facts giving rise to this civil appeal are as follows:

One Kalyana Sundram Iyer was the owner of the suit properties. H.R. Narayana Iyengar (represented by his LRs) claimed to have purchased the suit properties from Iyer under sale deed dated 10 - 7 - 1942. At the relevant time, one Shyamala Raju was the cultivating tenant. Iyengar (since deceased) claimed that he had terminated the tenancy in 1948. On termination of the tenancy disputes arose between Iyengar and Shyamala Raju. Consequently, Suit No. 79 of 1949 came to be instituted by Iyengar in the Court of the Second Munsif, Bangalore. The suit was instituted by Iyengar against K.S. Setlur and Shyamala Raju stating that they had unauthorisedly disturbed his possession. Suit No. 79 of 1949 was for permanent injunction restraining the defendants from interfering with the possession of Iyengar (the plaintiff). In his defence Raju stated that he was in possession for eight years; that he continued to be in possession; that Iyengar was collecting rents arising from the suit properties as a constituted attorney of KS. Setlur; that on termination

of the power of attorney, he paid rent to KS. Setlur and, therefore, he was in a possession of the suit lands as a tenant under KS. Setlur and not under Iyengar (the plaintiff). He (Raju) in his written statement stated that he continued to remain in possession till 28 - 8 - 1950 (SCC p. 78 of the SLP paperbook). According to Iyengar, Defendant 2 (Shyamala Raju) was his tenant who turned hostile when he terminated the tenancy. According to Iyengar, there was collusion between Shyamala Raju and KS. Setlur to defeat his b rights. In the said suit, K.S. Setlur contended that he was the real owner who had appointed Iyengar as his constituted attorney to collect rent and profits. It was contended that the sale deed executed by Kalyana Sundram Iyer was a benami transaction. He further alleged that in 1946 he had cancelled the power of attorney in favour of Iyengar. He further alleged that after 1946, Shyamala Raju had considered him as the landlord. Rent was paid to him by c Shyamala Raju. Raju had attorned in favour of KS. Setlur. Lease deeds were executed by Shyamala Raju in favour of K.S. Setlur. By judgment dated 282 - 1951, delivered by the Munsif Court in Suit No. 79 of 1949, it was held that the factum of Shyamala Raju being in possession of the suit lands till 288 - 1950 stood proved, therefore, it was held that Raju was in possession of the suit lands from 1946 onwards. It was further observed by the trial court that d the disputed suit lands were not in de facto possession of Iyengar. The trial court relied upon the revenue records of 1947 - 48 showing cultivation of the lands by Shyamala Raju (see p. 91 of the SLP paper - book). The trial court did not believe the plaintiff (Iyengar) to say that he had entered into possession in 1947. However, the trial court also observed that the plaintiff had a conveyance in his favour from Kalyana Sundram Iyer but the suit was for permanent injunction and since the plaintiff was not in actual possession e it was not possible to grant injunction restraining Shyamala Raju from entering the lands. The trial court further held that Shyamala Raju as a tenant had attorned in favour of K.S. Setlur. The trial court, however, held that it was not in a position to give a clear - cut finding as to whether Shyamala Raju was the tenant of Iyengar or of KS. Setlur. In this con















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