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2024 Supreme(SC) 125

SUPREME COURT OF INDIA
HRISHIKESH ROY, SANJAY KAROL, JJ.
Vasantha (Dead) through LRs. – Appellant
Versus
Rajalakshmi @ Rajam (Dead) through LRs. – Respondent
Civil Appeal No. 3854 of 2014
Decided On : 13-02-2024

Advocates appeared:
For the Appellant(s) : Mr. Dama Seshadri Naidu, Sr. Adv. Mr. G. Balaji, AOR
For the Respondent(s): Mr. V. Ramasubramanian, AOR

IMPORTANT POINTS
(1) Adverse Possession – Plea of adverse possession is not a pure question of law but a blend of fact and law – Efficacy of adverse possession law in most jurisdictions depends on strong limitation statutes by operation of which, right to access court expires through efflux of time.
(2) Lapse of limitation bars only remedy but does not extinguish title.
(3) Amendment of a plaint can be made at any stage of a suit, even at second appellate stage.

Headnote:

(A) Adverse Possession – [Limitation Act, 1963 – Article 65] – Plea of adverse possession is not a pure question of law but a blend of fact and law – A person who claims adverse possession should show : (a) on what date he came into possession; (b) what was nature of his possession; (c) whether factum of possession was known to other party; (d) how long his possession has continued; and (e) his possession was open and undisturbed – A person pleading adverse possession has no equities in his favour since he is trying to defeat rights of true owner – It is for him to clearly plead and establish all facts necessary to prove his adverse possession – Efficacy of adverse possession law in most jurisdictions depends on strong limitation statutes by operation of which, right to access court expires through efflux of time – Modern statutes of limitation operate, as a rule, not only to cut off one's right to bring an action for recovery of property that has been in adverse possession of another for a specified time but also to vest possessor with title – Intention of such statutes is not to punish one who neglects to assert rights but to protect those who have maintained possession of property for the time specified by statute under a claim of right or colour of title. (Paras 20 and 21)

(B) Specific Relief Act, 1963 – Sections 34 – Limitation Act, 1963 – Section 27 and Articles 58 and 65 – Suit for declaration based on first Settlement Deed – Maintainability – Bar of limitation – Lapse of limitation bars only remedy but does not extinguish title – This aspect was overlooked entirely by High Court in reversing findings of Courts below – It was not justified for it to have overlooked aspect of limitation, particularly when deciding a dispute purely civil in nature – Plaintiff was aware that appellant herein was in possession of suit property and it was incumbent upon him to seek relief which follows – After death of life-estate holder in 2004, there was no attempt made by original plaintiff to amend plaint to seek relief of recovery of possession – Judgment impugned fails scrutiny at threshold stage itself, i.e. on limitation as also maintainability of suit. (Paras 32, 33 and 35)

(C) Civil Procedure Code, 1908 – Order VI Rule 17 – Amendment of a plaint – Amendment of a plaint can be made at any stage of a suit, even at second appellate stage. (Para 33)

Facts of the case:

The action that set in motion instant dispute was in year 1947, when a mother transferred property inherited at death of her husband, in one form to her two sons and in another, to her daughter. Some forty-odd years later, daughter’s husband filed a suit in respect of such property, in 1993. Additional District Munsiff1 decided the matter in 1999. Additional District and Session Judge2 returned a decision on First Appeal in 2002. Second Appeal was decided by High Court in 2012. It is against this order and judgment in Second Appeal that present civil appeal has been preferred.

Findings of Court:

Judgment of Trial Court in O.S. No. 726 of 1993 as also First Appellate Court in S.C. Appeal Suit 47/99 FTC-II Appeal Suit 113/2002 which dismissed suit of Gopalkrishnan on the grounds of limitation cannot be faulted with.

Result : Appeal allowed.

Judgement Key Points

Certainly. Here are the key points derived from the provided legal document:

  1. The plea of adverse possession involves both factual and legal considerations. Its success depends on demonstrating specific facts such as the date of possession, nature of possession, awareness of the other party, duration, and openness of possession. The law emphasizes that adverse possession laws rely heavily on limitation statutes that prescribe time limits within which rights can be asserted or extinguished. These statutes generally serve to protect those who maintain possession over a period of time under a claim of right, vesting them with title, and are not intended to punish neglectful owners (!) (!) .

  2. Limitation statutes primarily bar the remedy to enforce a right but do not extinguish the underlying title itself. Therefore, even if a remedy is barred, the title may still be intact (!) .

  3. Amendments to pleadings, including the plaint, are permissible at any stage of a suit, including during appellate proceedings. This provides flexibility to parties to correct or adjust their claims as the case progresses (!) .

  4. The case involved a long history of property transfers and family settlements dating back to 1947, with subsequent legal actions spanning several decades. The courts examined the validity and effect of various settlement deeds, including whether they created life interests or vested interests, and whether subsequent deeds affected the original rights (!) (!) (!) .

  5. The courts found that certain settlement deeds, which purported to revert interests or grant life interests, did not alter the vested rights of the parties involved. The validity of these deeds and their impact on ownership rights was a central issue (!) (!) .

  6. The timing of filing a suit is crucial, especially in relation to limitation periods. The courts observed that claims based on adverse possession or rights under settlement deeds must be initiated within prescribed time frames, failing which the claims are barred (!) (!) .

  7. The suit in question was filed beyond the limitation period, and the courts determined that the limitation period started from relevant events such as the death of a life estate holder or the execution of certain deeds. Since the suit was filed after the expiry of these periods, it was barred by limitation (!) (!) .

  8. The nature of the suit—whether for declaration alone or including possession—is significant. A suit seeking only declaration without seeking consequential relief such as recovery of possession may be barred under applicable statutes, especially if the plaintiff was not in possession at the time of filing (!) (!) .

  9. The court emphasized that the purpose of limitation laws is to prevent stale claims and to promote certainty and finality in property rights. The lapse of limitation affects the remedy but not necessarily the underlying title, which can persist despite the bar on enforcement (!) (!) .

  10. The court also clarified that a suit for declaration without seeking recovery of possession is not maintainable if the plaintiff is not in possession at the time of filing, and that such suits are subject to specific statutory restrictions (!) (!) .

  11. The court highlighted that amendments to pleadings can be made at any stage, including appellate stages, which can influence the outcome of the case (!) .

  12. Ultimately, the courts found the impugned judgment to be flawed due to issues of limitation and maintainability. The decision set aside the previous judgments and restored the earlier decrees that dismissed the suit based on these grounds (!) (!) .

These points summarize the legal principles and findings relevant to property rights, limitation, and procedural aspects discussed in the document.


JUDGMENT :

SANJAY KAROL, J.

1. The action that set in motion the instant dispute was in the year 1947, when a mother transferred property inherited at the death of her husband, in one form to her two sons and in another, to her daughter. Some forty-odd years later, the daughter’s husband filed a suit in respect of such property, in 1993. The Additional District Munsiff1 [“Trial Court”] decided the matter in 1999. The Additional District and Session Judge2 [“First Appellate Court”] returned a decision on the First Appeal in 2002. The Second Appeal was decided by the High Court3 [“Impugned judgment”] in 2012. It is against this order and judgment in Second Appeal that the present civil appeal has been preferred.

BACKGROUND FACTS

2. It would be necessary to advert to the facts underlying the present dispute.

3. On 10th July 1947, one Thayammal executed a settlement deed4 [“First Settlement Deed”] granting rights in her property to her two sons namely Raghavulu Naidu and Chinnakrishnan @ Munusamy Naidu5 [“Munusamy”] for their lives and thereafter to the former’s two daughters namely Saroja and Rajalakshmi (present Respondent now represented through LRs). Saroja pre-deceased Thayammal as also her father and uncle, in 1951.

3.1 Subsequently, Raghavulu and Munusamy executed a Settlement Deed dated 31st July 19526 [“Second Settlement Deed”] reverting the said interests in the properties back to their mother.

3.2 Thayamma, soon thereafter, executed a further Settlement Deed7 [“Third Settlement Deed”] dated 18th August 1952, bequeathing absolute interest in such properties only in favour of her two sons namely Raghavulu Naidu and Munusamy Naidu, with the consequence of extinguishing the rights, if any, of Saroja and Gopalakrishnan.

3.3 Munusamy had no children. His wife Pavunammal enjoyed life interest in the property bequeathed to her husband. They had an adopted daughter, Vasantha (present Appellant, now represented through LRs).

3.4 In 1993, during the lifetime of Pavunammal, Gopalakrishnan (Husband of Saroja) filed a suit, subject matter of the present lis, praying for a declaration as the owner of the properties since he was the sole heir of Saroja in terms of the First Settlement Deed.

4. It is in this brief background of facts that the dispute entered the courts. It would be useful to have a summary of family relations forming the backdrop of, and parties to, the dispute by way of a chart, as immediately hereunder:

Pounamma is also referred to as Pavanuammal at some places, as was so done by the Courts below.

PROCEEDING BEFORE THE TRIAL COURT

(A) PLAINT

5. Plaintiff (Gopalakrishnan) filed a suit for declaration and to establish his vested rights and interest in the property.

5.1 It was urged that only the First Settlement Deed had legal sanctity. Accordingly, the wife of Munusamy is only entitled to possession and enjoyment till her lifetime. There is no right of transfer in her favour.

5.2 The Second Settlement Deed is only for the lifetime of Thayammal, and the same would not impact the vested right created in favour of deceased Saroja, inherited by Gopalakrishnan, as her husband and sole heir.

5.3 The adoption of Vasantha is illegal. Also, the vested right in favour of Saroja was created prior to such adoption and, therefore, would not affect the rights of Gopalakrishnan.

(B) WRITTEN STATEMENT

6. The written statement is of denial of all claims made by Gopalakrishnan.

6.1 It is incorrect to state that the two sons Raghavulu and Munasamy, were in possession of suit properties according to the First Settlement Deed. No claim of any vested rights can be accepted.

6.2 The claim that Gopalakrishnan is the sole legal heir of Saroja, cannot be accepted as after her death in the year 1951, he has remarried and relocated to Pondicherry.

6.3 Even if the First Settlement Deed is accepted as genuine, then Pavanuammal alone would be the heir to such properties.

6.4 Munasamy had, during his lifetime, on 7th October, 1976 executed a settlement deed in favou

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