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2024 Supreme(Ori) 169

IN THE HIGH COURT OF ORISSA AT CUTTACK
A.C. Behera, J.
Balasore Municipality represented by the Executive Officer - Appellant
Versus
Abdul Kadar Dahlani & Others - Respondents
RSA No.128 of 2013
Decided On : 17-05-2024

Advocates Appeared:
For the Appellant :Mr. Niranjan Panda, Advocate
For the Respondent:Mr. Maheswar Mohanty, Advocate

A permanent tenant cannot transfer ownership rights over leased property, and the landlord retains conventional ownership despite errors in land records.

Headnote:(A) Land Acquisition Act - Declaration of rights over the land - The appellant challenged the First Appellate Court’s decree favoring the plaintiff, asserting ownership over suit properties claimed by the municipality. Court confirmed the legality of recorded ownership of the municipality and established that the tenant cannot transfer ownership. (Paras 5, 12, 14, 16)

(B) Transfer of ownership - Permanent tenants have limited rights that do not extend to ownership transfer. The initial decree did not confer ownership to the vendor of the plaintiff, merely a tenancy status. (Paras 14-18)

(C) Substantial questions of law - Questions regarding the application of Limitation Act provisions and deletion of the municipality from the ROR were addressed. (Paras 11, 13)

Findings of Court:
The court concluded that the municipality's ownership over the properties was established and that the tenant could not transfer better rights than existed without extinguishing the ownership of the original lessor. (Para 16)

Issues: The main issues revolved around ownership disputes, rights of tenants versus landowners, and legality of land records.

Ratio Decidendi: The court emphasized that a tenant's rights are subordinate to the landlord’s and reaffirmed the original ownership of the municipality, thus rejecting the plaintiff's claims to ownership.

Result: Appeal allowed; dismissal of plaintiff's suit confirmed, and earlier decrees set aside.

Table of Content
1. ownership and possession of the suit properties. (Para 4)
2. dispute over ownership based on past court decrees. (Para 5 , 8)
3. legal definitions of lease and ownership rights. (Para 14 , 15)
4. judicial review of previous decrees and establishing ownership. (Para 16 , 17)
5. final ruling and confirmation of trial court's decision. (Para 18 , 19 , 20 , 21)

JUDGMENT :

A.C. Behera, J.

This 2nd Appeal has been preferred against the reversing Judgment.

2. The appellant of this 2nd Appeal was the defendant before the Trial Court in the suit vide C.S. No.970 of 2006-I and the appellant was the respondent before the First Appellate Court in the 1st Appeal vide R.F.A. No.147 of 2009-I.

The respondent No.1 of this 2nd Appeal was the sole plaintiff before the Trial Court in the suit vide C.S. No.970 of 2006-I and he was the appellant before the First Appellate Court in the 1st Appeal vide R.F.A. No.147 of 2009-I.

The respondent No.2 to 5 have been impleaded as parties in this 2nd Appeal as per Order dated 22.04.2024 passed in I.A. No.655 of 2023.

3. The suit of the plaintiff (respondent No.1 of this 2nd Appeal) vide C.S. No.970 of 2006-I against the defendant (appellant of this 2nd Appeal) was a suit for declaration.

4. According to the plaintiff, the suit properties are Hal Plot Nos.137,138,140 & 141 in total Ac.0.38 Decimals under Hal Khata No.275 in Mouza Gopalgaon under Town PS of Balasore District corresponding to CS Plot No.37 under C.S. Khata No.39.

The suit properties along with other properties were acquired by the Balasore Municipality (defendant) as per the provisions of Land Acquisition Act and after acquisition of the suit properties, Balasore Municipality became the exclusive owner of the same and leased out the suit properties to Sk. Mahiuddin Abdul Kadar and Gulam Mahiuddin and on the basis of the said lease, the lessee of the suit properties i.e. Sk. Mahiuddin Abdul Kadar and Gulam Mahiuddin possessed the suit properties and reclaimed the same and made it fit for house and homestead and constructed their residential house on the same by digging a tank, installing limekiln and raising various fruits bearing plants therein. One of the lessee i.e Gulam Mahiuddin sold his half interest in the suit properties to the other lessee i.e. to Sk. Mahiuddin Abdul Kadar through R.S.D. dated 08.05.1957 and after purchasing the half interest of Gulam Mahiuddin in the suit properties, the other lessee i.e. Sk. Mahiuddin Abdul Kadar became the exclusive owner over the entire Ac.0.38 Decimals suit properties and mutated his name in the Municipality office in place of Gulam Mahiuddin and paid the rent of the suit properties to the Municipality (defendant). When, the defendant (Balasore Municipality) created disturbances In the possession of that Sk. Mahiuddin Abdul Kadar giving threat for creation of third party interest therein, then, Sk. Mahiuddin Abdul Kadar instituted a suit vide O.S. No.39 of 1973 against the defendant for declaration of his right, title and interest over the suit properties and to injunct the defendant (Balasore Municipality) from creating any sort of disturbance in his possession over the suit properties. The said suit vide O.S. No.39 of 1973 of the Sk. Mahiuddin Abdul Kadar was decreed against the defendant. Then, on being aggrieved with the Judgment and Decree of the suit vide O.S. No.39 of 1973 passed in favour of Sk. Mahiuddin Abdul Kadar, the defendant municipality preferred an appeal before the First Appellate Court vide S.J.A. No.17/8 OF 1976/76-I. That 1st appeal of the defendant was dismissed and the Judgment and Decree of the Trial Court passed in O.S. No.39 of 1973 in favour of the Sk. Mahiuddin Abdul Kadar was confirmed.

Thereafter, Sk. Mahiuddin Abdul Kadar sold the suit properties to the plaintiff i.e Abdul Kadar Dahlani for a consideration of Rs.5,000/- and delivered possession thereof and since, the date of purchase, the plaintiff possessed the suit properties exclusively after purchasing from

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