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2025 Supreme(Del) 870

2025:DHC:244
IN THE HIGH COURT OF DELHI AT NEW DELHI
PURUSHAINDRA KUMAR KAURAV, J.
M/s Jainsons Westend Pvt. Ltd. – Appellant
Versus
S. Tarjit Singh S/o Late S. Sharam Singh – Respondent
R.S.A. No. 82 of 2022, C.M. APPL. Nos. 51372, 54268 of 2022
Decided On : 14-01-2025
Advocates Appeared : 
For the Appellants : Jayant Mehta. Vinod Kumar Sachdeva, Abdul Vahid
For the Respondents : H.L. Narula, Ashutosh Lohia, Rohit Saraswat, Princy Sharma, Samapika Biswal, Aman Kumar Yadav

A suit for declaration of title is maintainable without a claim for possession when the property is in possession of a tenant not part of the suit, as jurisdictions may bar possession claims under specific tenancy laws.

Headnote:(A) Specific Relief Act, 1963 - Section 34 - Delhi Rent Control Act, 1958 - Bar on maintainability of suit for declaration without claim for possession - The first Appellate Court decreed the respondent's suit declaring the sale deed as null and void, stating that possession remained with the tenant and the respondent's claim for declaration was maintainable, despite not claiming possession. (Paras 14, 15, 18, 36)

(B) The court found that a suit seeking declaration of title without possession is valid where the court lacks jurisdiction to grant possession due to tenancy provisions. The jurisdictional bar under Section 34 of the SRA is nuanced, particularly where fraud is concerned. (Paras 18, 19, 22)

(C) Other appeals relating to the same controversy were also dismissed, confirming the findings on jurisdiction. (Paras 38)

Facts of the case:
The appellant sought to contest a sale deed regarding property previously tenanted by a partnership firm, following a compromise agreement that led to confusion over ownership and possession. (Paras 3, 4, 10)

Findings of Court:
The trial court's dismissal was reversed by the first Appellate Court based on the fact that the respondent did not need to claim possession in light of existing tenancy laws prohibiting such claims in civil court for low-rent properties. (Paras 35, 36)

Issues: Whether the respondent's suit for cancellation of the sale deed was maintainable without a claim for possession, as per Section 34 of the SRA and the RCA. (Paras 14, 15)

Ratio Decidendi: A claim for declaration can stand alone without a claim for possession if the property is in possession of a tenant not party to the suit, and jurisdictional bars must not impede the quest for substantial justice. (Paras 18, 21, 36)

Result: Appeals dismissed.

Table of Content
1. appealed judgments overview and contesting claims. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. arguments concerning maintainability and possession. (Para 9 , 10 , 11 , 12)
3. court examines implications of ownership and rights to seek possession. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23)
4. assessment of the legal framework concerning agreements and possession. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
5. enforcement principles of appellate jurisdiction and substantial questions. (Para 32 , 33 , 34 , 35 , 36 , 37)
6. conclusion and dismissal of appeals. (Para 38 , 39)

JUDGMENT :

PURUSHAINDRA KUMAR KAURAV, J.

1. The captioned appeals revolve around a similar controversy and, therefore, are being decided by this common order. For the sake of convenience, the facts are extracted from RSA No. 82/2022.

2. The appeal has arisen out of the impugned judgment dated 25.05.2022 and decree dated 26.05.2022 passed by the Court of learned Additional District Judge-8, (Central District), Tis Hazari Courts, Delhi in RCA No.14/2017, whereby, the suit has been decreed while setting aside the judgment and decree dated 30.11.2016 passed by the Court of learned Civil Judge-10, Tis Hazari Courts, Delhi in Suit no.161/2005, dismissing the suit of the respondent/plaintiff seeking declaration and cancellation of the sale deed dated 10.06.2002 as null and void.

3. The contesting respondents i.e. Tarjit Singh and Dr. Jagjit Singh are claiming through their predecessor-in-interest namely, Shanti Devi and S. Sharam Singh, who were the owners of property bearing no.5/8, W.E.A., Karol Bagh, New Delhi (hereinafter referred as "suit property").

4. The facts of the case would further indicate that M/s Jainsons Westend was a partnership firm that was a tenant on the suit property vide a registered lease deed dated 31.05.1967. The property in question was a leasehold property and the owners were S. Sharam Singh and Shanti Devi each holding 50% shares in the property. S. Sharam Singh and Shanti Devi had filed a civil suit bearing no. 831/1989 for recovery of rent and possession of the tenanted premises against tenant partnership firm M/s Jainsons Westend.

5. During the pendency of the civil suit, S. Sharam Singh died on 18.05.1994, accordingly, his legal heirs i.e. the contesting respondents herein were brought on record. During the pendency of the said civil suit, parties entered into a compromise. As per the terms of the said compromise, an Agreement to Sell dated 16.01.1995 was also entered into. The contesting respondents agreed to sell the suit property to five companies namely, M/s. Jainsons Westend Pvt. Ltd, M/s. Jainsons Collections Pvt. Ltd., M/s. Jainsons Finance Pvt. Ltd., M/s. Saville Row Collections and M/s. Popular Sales. The appellant/defendant herein agreed to purchase 1/5th of the suit property for a consideration of Rs.1,75,000/- subject to terms and conditions that the property will be first converted into freehold from leasehold and then sale deeds shall be executed.

6. In pursuance of the Agreement to Sell, one unregistered general power of attorney was also jointly executed by the owners in favour of Rakesh Jain and Neena Jain. In view of the compromise, civil suit no. 831/1989 came to be disposed of vide order dated 21.04.1995 vide a compromise decree. It appears that thereafter, a dispute further arose between the parties and another suit came to be filed by the appellant/defendant before this Court on 08.01.1998 seeking specific performance of the aforesaid Agreement to Sell and Perpetual Injunction. The said suit got transferred to the District Court after a change in pecuniary jurisdiction and subsequently, registered as suit no. 253/2002, which was eventually withdrawn by the appellant/defendant on 03.03.2003.

7. On 10.06.2002, Mr. Rakesh Jain appears to have executed a sale deed with respect to 1/5th share of the suit property in favour of M/s. Jainsons Westend Pvt. Ltd.

8. The respondent/plaintiff then filed a ci

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