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2025 Supreme(Kar) 2992

2025 KHC-D 14641 
IN THE HIGH COURT OF KARNATAKA,AT DHARWAD
C. M. JOSHI, J.
Sri. Dattusa, S/o. Khandusa Chavan - Appellant
Versus 
Sri. Siddanagouda Shivanagouda Patil Since Deceased By His Lrs. - Respondent
REGULAR SECOND APPEAL NO. 1398 OF 2008
Decided On : 29-10-2025
Advocates Appeared : 
For the Appellant : Sri. Ashok Haranahalli, Sr. Counsel For Sri. G. I. Gachchinamath, Advocate
For the Respondent : Sri. Mahesh Wodeyar, Advocate, Sri. Dayanand Sangreshi, Hcgp 

A permanent lease does not confer ownership rights, and the distinction between leasehold rights and ownership must be carefully evaluated in legal disputes concerning property.

Headnote:(A) Property Law - Lease and Title - Distinction between ownership and leasehold rights - Permanent lease deed executed does not confer ownership - Rights and status of lessees vs owners discussed. (Para 15)

(B) Civil Procedure Code - Order XLI Rule 27 - Requirement to deal with additional evidence not addressed by the First Appellate Court. (Paras 12, 20)

Facts of the case:
The plaintiff sought a declaration that the alienation of suit property by defendant No.1 to defendant No.2 is null and void, claiming he has possession based on a permanent lease. The trial court ruled in favor of the plaintiff, declaring the alienation void. The appellate court reversed this but ordered possession to be given to the plaintiff, leading to further appeal.

Findings of Court:
The appellate court's judgment was set aside, and the case was remanded for consideration of additional evidence and proper adjudication of the appeal.

Issues: The major issues addressed include whether the First Appellate Court could direct possession despite adjudging ownership and whether proper considerations were given to the ownership status.

Ratio Decidendi: The court emphasized the need to distinguish between leasehold rights and ownership, reinforcing that a permanent lease does not equate to ownership, and criticized the appellate court for not properly addressing evidence and not framing relevant considerations.

Result: The appeal is allowed and the case is remanded for re-evaluation.

Table of Content
1. plaintiff's ownership based on lease. (Para 2 , 4 , 6)
2. first appellate court's direction considered. (Para 10 , 11)
3. distinction between lease and ownership. (Para 15 , 16 , 17)
4. need for remand due to oversight. (Para 19 , 20)
5. final order for remand and reconsideration. (Para 21)

JUDGMENT :

C. M. JOSHI, J.

Heard Sri.Ashok Harnahalli, learned Senior Counsel, appearing for the appellant and Sri.Mahesh Wodeyar, learned counsel appearing for the respondent No.4. The other respondents despite service of notice have not appeared before this Court.

2. Being aggrieved by the judgment and decree in R.A.No.125/2001 passed by the learned First Additional Civil Judge (Sr.Dn), Hubballi dated 17.03.2008, the appellant therein, who was defendant No.2 in O.S.No.26/1993 is before this Court in this second appeal.

3. The parties would be referred to as per their rank before the Trial Court for the sake of convenience.

4. The plaintiff (now represented by defendant No.3 to 7) filed a suit for declaration that the alienation in respect of the suit schedule property, which is site No.6 in Block No.284 of the Bhairidevarakoppa, in favour of defendant No.2 is null and void, ab-initio and not binding on the plaintiff; and consequential relief of permanent injunction. During the pendency of the suit, by way of amendment to the plaint, he also prayed for an alternative relief of possession in case the Court comes to a conclusion that the plaintiff is not in possession of the suit schedule property.

5. It was contended that the suit schedule property was owned by the father of defendant No.1 and in the year 1961, the father of the defendant No.1 executed registered permanent lease deed in favour of one Vasant Belamkar and thereafter, the said Vasant Belamkar had sold the permanent lease-hold rights in favour of the plaintiff through registered deed dated 11.12.1970. In pursuance to the said deeds, the plaintiff was in possession and enjoyment of the suit schedule property. It was contended that the defendant No.2, claiming to be the purchaser of the suit schedule property, tried to interfere in the possession of the plaintiff and later he came to know that the defendant No.1 had executed a registered sale deed in favour of the defendant No.2, which cannot bind the plaintiff in any way since he is in possession of the property on the basis of permanent lease deed.

6. The said suit was resisted by the defendant No.2. The defendant No.1 and 2 appeared before the Trial Court and filed their written statements. The defendant No.1 and 2 denied the contentions of the plaintiff but on the other hand, they contended that the defendant No.1 had sold the title in respect of the suit schedule property to the defendant No.2 under a sale deed dated 01.10.1991 and as such, the defendant No.2 is in possession and enjoyment of the property. It is also contended that the defendant No.1 had sold plot No.4 and 5, which were adjacent to the suit schedule property to one Rasheed Ballari and Veeresh, who are in possession of the same.

7. On the basis of the said contentions, the following issues were framed:

“ISSUES

1. Whether the plaintiff proves that he is in peaceful possession and enjoyment of the suit property since 12.12.1970?

2. Whether the plaintiff proves that the alienation of the suit property at para 2(b) by defendant No.1 in favour of defendant No.2 is null, void, ab-initio, not binding on the plaintiff?

3. Whether the plaintiff proves that defendant No.2 is causing obstruction to his peaceful possession and enjoyment of the suit property at para 2(b) of the plaint?

4. Whether the defendant No.2 has proved that he is in peaceful possession and enjoyment of the suit property at para 2(b) as a owner?

5. Whether the plaintiff proves that defendant No.1 is trying to alienate the suit property at a para 2(a) causing disturbances to the peaceful possession and enjoyment of the suit property by the plaintiff?

6. Whether the plaintiff proves that he is entitle

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