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2016 Supreme(Raj) 1112

IN THE HIGH COURT OF RAJASTHAN AT JAIPUR BENCH
Mohammad Rafiq, J.
Rajasthan State Industrial Development and Investment Corporation Ltd. and Ors. - Appellants
Vs.
Jai Industries - Respondent
Civil Second Appeal No. 242 of 2015
Decided On : 11-01-2016

Advocates Appeared:
For the Appellants : R.A. Katta, M.K. Dhakad
For the Respondents: Amit Dadhich

A party cannot be held liable for not raising construction on a plot allotted to him if the construction was halted due to an injunction order passed by a court, and the party continued to be in possession of the plot.

Headnote:

LEASE AGREEMENT - CANCELLATION - STAY ORDER - POSSESSION - COURT FEE - RAJASTHAN STATE INDUSTRIAL DEVELOPMENT AND INVESTMENT CORPORATION LTD. V. DIAMOND & GEM DEVELOPMENT CORPORATION LTD. & ANR. - SECTION 115(3) C.P.C. - SUMMARY

Fact of the Case:

Plaintiff-respondent filed a suit for declaration and permanent injunction, pleading that the defendant-appellant allotted a plot to the deceased Amar Lal in 1976, and a lease deed was executed in his favor in 1977. Plaintiff claimed possession of the land and raised construction, but due to an interim injunction order in a civil suit filed by M/s. Kota Industries, construction was halted. The defendant-appellants issued a letter in 1989 informing that the allotment should be canceled since construction was not made. The plaintiff argued that he could not raise construction due to the pending litigation and the injunction order.

Finding of the Court:

The court found that the plaintiff was in possession of the disputed plot since 1977 and continued to be in possession even after the cancellation of the allotment in 1989. The court held that the plaintiff was not required to pay deficit court fee as he did not pray for recovery of possession but only sought a declaration and perpetual injunction. The court also found that the defendants did not take any steps to take possession of the plot from the plaintiff.

Issues: 1. Whether the plaintiff could not complete construction over the disputed plot because of the pendency of the case? 2. What would be the effect if the plaintiff did not raise construction after 27.04.1985 when there was no stay order of the Court? 3. Whether the suit was maintainable without payment of the Court fee?

Ratio Decidendi: 1. The court held that the plaintiff could not raise construction due to the injunction order passed in the suit filed by M/s. Kota Industries. Even though the suit was dismissed in 1985, the appeal remained pending till 1999, and the plaintiff continued to be in possession of the plot. 2. The court held that the plaintiff was not required to raise construction after the dismissal of the suit as there was no stay order in the appeal. The defendants did not take any steps to take possession of the plot from the plaintiff. 3. The court held that the plaintiff was not required to pay deficit court fee as he did not pray for recovery of possession but only sought a declaration and perpetual injunction.

Final Decision: The court dismissed the appeal, upholding the judgments of the trial court and the first appellate court.

ORDER :

Mohammad Rafiq, J.

1. This is defendants' appeal against the judgment and decree dated 28.2.2015 passed by Additional District Judge No. 2, Kota, who thereby affirmed the judgment and decree passed by the Additional Civil Judge (Junior Division) and Judicial Magistrate No. 1, Kota.

2. Plaintiff-respondent filed a suit for declaration and permanent injunction in the trial court inter alia pleading that defendant-appellant allotted a plot No. F2 (1), Indraprastha Industrial Area, Kota to deceased Amar Lal on 8.6.1976 and a lease deed was executed in his favour on 21.1.1977. Possession was also handed over to the plaintiff and since then he has continued in possession of the land. Plaintiff claimed that he raised construction and when the boundary wall was constructed, a civil suit came to be filed by M/s. Kota Industries through one Mathuresh Kumar Gopi Lal, the neighbour of the allotted land. In that suit, an interim injunction order was passed against the plaintiff. Even though he was not impleaded as party to the suit, owning to the interim order however plaintiff could not raise any construction. The defendant-appellants in the meantime issued a letter dated 3.3.1989 informing that since construction was not made, therefore, the allotment of plot should be cancelled. The Resident Engineer of the appellant wrote a letter dated 11.4.1978 to the plaintiff stating that since there was a dispute pending in the Court, therefore, the construction may not be raised. It is owning to these facts that the plaintiff could not raise the construction. The defendant-appellants filed their written statement to the plaint pleading that the suit was dismissed by the trial court on 27.4.1985 and thus the injunction order in his favour came to an end. Even thereafter the plaintiff failed to raise the construction, thus it has violated the provisions of clause 2(d) and 3(a) of the lease agreement. The defendants also raised objection about valuation of the suit and that there was an arbitration clause which ought to be opted by the plaintiff, rather than filing the suit. The trial court framed as many as seven issues. The plaintiff produced 2 witnesses and exhibited 6 documents. The defendants produced 1 witness and exhibited 17 documents. The learned trial court decreed the suit which was affirmed by the appellate court.

3. Shri R.A. Katta, learned counsel for the appellants has argued that the learned trial court as well as first appellate court committed serious illegality in deciding Issue No. 1. Issue No. 1 pertains to the fact as to whether the plaintiff could not complete construction over the disputed plot because of pendency of the case? It is submitted that the defendants have specifically pleaded and proved the fact that the suit filed by M/s. Kota Industries came to be dismissed on 27.04.1985. In that suit, the plaintiff was also party and this fact is admitted. This is also uncontroverted fact that there was no stay order passed by any competent court for raising construction after 27.04.1985. Plaintiff himself could not give and prove any justified and valid reason for not raising any construction after 27.04.1985 but the learned courts below did not accept the contention of the defendants illegally on the ground that the suit was not finally decided as the appeal was still pending. It is submitted that the suit filed by M/s. Kota Industries was decided on 27.04.1985 and thereafter there was no stay order by any competent court. In absence of stay order, the party cannot presume the fact that it is restrained from raising any construction. Learned courts below committed serious illegality and perversity in accepting the contention of plaintiff that since the appeal was pending, therefore, he could not raise construction even though there was no restraint order from any court. Learned trial court though noted this fact that there is no stay order after 27.04.1985 but wrongly observed because of principles of natural justice, the













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