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2023 Supreme(Kar) 856

IN THE HIGH COURT OF KARNATAKA
M.G. Uma, J.
Bharat Petroleum Corporation Ltd – Appellant
Versus
D. Prabhavathi – Respondent
Regular Second Appeal No. 1211 of 2019 (RES)
Decided On : 17-02-2023

Advocates appeared:
N.J. Kumar, Advocate, T.N. Raghupathy, Advocate

The central legal point established in the judgment is the interpretation and application of the provisions of the Transfer of Property Act in determining the rights of parties in a property dispute.

Headnote:

Lease Agreement - Property Dispute - Sec. 106 of Transfer of Property Act, Sec. 111(h) of Transfer of Property Act, Sec. 108(q) of Transfer of Property Act, Sec. 52 of Transfer of Property Act

Fact of the Case:

The plaintiffs sought possession of a property through a suit, claiming entitlement based on a partition decree. The defendant, a lessee under a registered lease deed, contested the suit, arguing that the plaintiffs had no right to terminate the lease prematurely.

Finding of the Court:

The Court found that the plaintiffs were entitled to the possession of the property as it was allotted to their share and symbolically handed over to them during the pendency of the appeal. The Court held that the lease could be terminated by the lessor or lessee by issuing a notice, and the lessee was bound to put the lessor in possession of the property upon termination of the lease.

Issues: The issues included the entitlement of the plaintiffs to the property, the termination of the lease, and the liability of the defendant for damages.

Ratio Decidendi: The Court relied on the provisions of the Transfer of Property Act, particularly Sec. 106, Sec. 111(h), Sec. 108(q), and Sec. 52, to determine the rights of the parties and the validity of the lease agreement.

Final Decision: The appeal was dismissed, confirming the judgment and decree of the Trial Court and the First Appellate Court.

JUDGMENT/ORDER

1. The defendant has preferred this appeal being aggrieved by the judgment and decree dtd. 29/9/2015 passed in OS No.311 of 2013 on the file of the learned Principal Civil Judge at Malavalli (hereinafter referred to as 'the Trial Court' for brevity), decreeing the suit of the plaintiffs holding that they are entitled for the possession of the suit schedule property and directing the defendant to quit and hand over the possession of the suit schedule property within three months from the date of the order, which was confirmed vide judgment dtd. 2/4/2019 passed in RA No.73 of 2015 on the file of the learned Senior Civil Judge, Mallavalli (hereinafter referred to as 'the First Appellate Court' for brevity).

2. For the sake of convenience, parties are referred to as per their status and rank before the Trial Court.

3. Brief facts of the case are that, the plaintiffs being the legal representatives of deceased M P Krishna filed the suit OS No.311 of 2013 seeking possession of the schedule property i.e., the piece and parcel of the land situated in Municipal Assessment No.1009 within Malavalli town measuring 100/19.8 feet, with the boundaries mentioned therein.

4. It is contended by the plaintiffs that they have filed OS No.40 of 1992 seeking partition and separate possession of several items of the properties of late Puttamadappa including the schedule property. In the final decree proceedings in FDP No.9 of 2006, the schedule property was allotted to the share of the plaintiffs. During the pendancy of RFA No.390 of 2008 before this Court, i.e., on 28/1/2004 the defendant had entered into an agreement for lease with M P Sampath for running the retail petrol bunk in Assessment No.1009 including the suit schedule property. This agreement was entered into with M P Sampath behind the back of the plaintiffs, even though the plaintiffs were in joint possession of the property. The defendant knowing fully well about the litigation that was pending, entered into such agreement and therefore, the plaintiffs are not bound by the said agreement.

5. It is stated that the defendant had established a petrol bunk over the land measuring East to West 175.56 feet and North to South 19.8 feet. But he is in possession of East to West 100 feet and North to South 19.8 feet on the front portion. The remaining 75.56 feet x 19.8 feet lies towards the rear side and the plaintiffs cannot reach their land on the back portion. The plaintiffs got issued the legal notice dtd. 17/9/2012 calling upon the defendant to quit and hand over the vacant possession of the schedule property and also to pay arrears of rent. The said notice was served and the defendant has issued untenable reply on 16/10/2012. Therefore, it is contended that the tenancy of the defendant commencing from 28th of each month ended on 27th of the succeeding month, has been terminated. The defendant is liable to pay damages from 1/11/2012 till handing over the vacant possession of the property, at the rate of 1,350/- per month and accordingly, prays for decreeing the suit.

6. The defendant entered appearance and filed the written statement contending that it is a Government of India undertaking engaged in supplying and distribution of the petroleum products under the Essential Commodities Act . Considering the application filed by Sri. M P Sampath, the defendant entered into lease agreement dtd. 28/1/2014 and since then the defendant is in possession and enjoyment of Sy.Nos.80 and 81/1 with Municipal Assessment No.1009, totally measuring 15807 square feet.

7. It is further contended that Boramma, the mother of M P Chinnaswamy and his brothers M P Nagesh and M P Suresh and his wife Suvarna are the parties to the lease agreement as consenting witnesses. Even NOC was obtained by the defendant as required under Sec. 144 of the Petroleum Act. Since then the defendant is running the petrol bunk under the name and style as Hi-Tech Fuel Station. Receipt of the legal notice and issuing of th

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