2003 Supreme(P&H) 1370
PUNJAB & HARYANA HIGH COURT
V.K.Bali, J.
Harbans Singh Cheema
Versus
Harwant Singh (Dead) Through L.Rs.
Regular Second Appeal No. 2127 of 1979,
Decided On : OCTOBER 5, 2003
The central legal point established in the judgment is that the owner of the property, with title, has the authority to create a lease or license even before the full payment of the sale consideration, and any person who can transfer their interest in the property is competent to grant a license.
Headnote:
Specific Relief Act - Property Dispute - Section 39 of Specific Relief Act, 1963 - [Section 39] - [Summary of Acts and Sections: The court discussed the ownership of the property under the Specific Relief Act, 1963 and the authority to create a license or transfer interest in the property. The court referred to the conveyance deed and the ability of the owner to create a lease or license even before the full payment of the sale consideration. The court also cited a previous judgment to support the principle that any person who can transfer their interest in the property is competent to grant a license.]
Fact of the Case:
The plaintiff filed a suit seeking a decree for mandatory injunction under Section 39 of Specific Relief Act, 1963, to vacate the premises claimed to be owned by the plaintiff. The defendant contested the suit on the grounds of ownership and possession as a licensee.
Finding of the Court:
The court found that the plaintiff had the right to create a license and that the defendant's possession was not permissible. The court also noted that the issue of improvements made by the defendant was not pressed before the appellate court.
Issues: The issues included the ownership of the disputed property, possession as a licensee, time-barred suit, ownership of the defendant, valuation of the suit, estoppel, improvements made by the defendant, maintainability of the suit, and exclusive possession of the house in part performance of the agreement of sale.
Ratio Decidendi: The court held that the owner of the property, with title, could create a lease or license even before the full payment of the sale consideration. It also emphasized that any person who can transfer their interest in the property is competent to grant a license.
Final Decision: The appeal was dismissed, and the parties were left to bear their own costs.
V.K.Bali, J.
1. Harwant Singh, who is the maternal uncle of Harbans Singh Cheema, the sole defendant, filed a suit to the effect that he is the purchaser and, and thus, the owner of Kothi No. l30-R, Model Town, Ludhiana, described fully in the plaint and, by styling himself as owner, sought a decree for mandatory injunction under Section 39 of Specific Relief Act, 1963 , directing the defendant to vacate the said premises and never to interfere in future with his legal possession thereafter. This suit was decreed by Shri Baldev Singh, P.C.S., Sub Judge, 1st Class, Ludhiana vide his judgment and decree dated 25.4.1978. Aggrieved, defendant Harbans Singh Cheema filed an appeal against the judgment and decree of the trial Court, which has since been dismissed by learned Additional District Judge, Ludhiana, vide his judgment dated 4.6.1979. Still aggrieved, the defendant has filed this Regular Second Appeal. The bare minimum facts that need a necessary mention reveal that Harwant Singh (hereinafter to be referred as the plaintiff) filed a suit for declaration to the effect that he is the owner of Kothi No. 130-R, Model Town, Ludhiana and Harbans Singh Cheema should vacate the said kothi. The burden of plaint is that he had purchased the property of 500 square yards vide sale deed dated 13.5.1968, registered on 29.6.1968 from the previous owner Sohinder Singh son of Sohan Singh for a sale consideration of Rs. 7,000/- and is the owner of the said premises. Shri Sohinder Singh, in turn, had purchased the entire unit No. 130 for an amount of Rs. 11,453/- from the Rehabilitation Department in an open auction on 23.4.1950, He was granted conveyance deed on 3.5.1950, with the condition that Rs. 900/- was to be paid as earnest money on the spot, whereas, the remaining amount of sale consideration was to be paid along with 3% interest in 30 equal half yearly installments. The title of Sohinder Singh purchaser was to be effected only on the payment of full installments. Concededly, Sohinder Singh obtained a clearance certificate on 26.4.1868 and also obtained permission from the Rehabilitation Department to sell the same in favour of the plaintiff after clearing all the installments. The plaintiff, being the real maternal uncle of the defendant, was persuaded by the defendant to enter into the bargain of purchase of Kothi No. 130-R. The plaintiff was then in military (Central Government) service outside Ludhiana and he relied upon the defendant in bringing about the transaction of sale in his favour. The amount of earnest money of Rs. 900/-had been paid by the plaintiff to Sohinder Singh through the defendant and subsequent installments had been paid by the plaintiff in Rehabilitation Department through the defendant in the name of Sohinder Singh, who, after the conveyance deed issued in his favour, had agreed to sell Kothi No. 130-R, Model Town, Ludhiana in favour of the plaintiff and delivered the possession of the said kothi to the plaintiff in 1950. The defendant, it was asserted, was using the said kothi since 8.9.1956 as a mere licensee under the plaintiff. Prior to that, the defendant was leasing out the said premises to defendant tenants on behalf of the plaintiffs and rendered accounts to the plaintiff of the rent realised from the tenants. The defendant, being the sisters son of the plaintiff, had been using the kothi as a mere licensee without payment of any licence fee. The plaintiff through a registered notice dated 2.1.1971 revoked the licence of the defendant and requested him to vacate kothi No. 130-R in his occupation within a week. The defendant did not respond to notice aforesaid, thus, constraining the plaintiff to file the suit, as mentioned above.
2. The matter herein was contested by the defendant-appellant, who raised number of preliminary objections in his written statement but at this stage, all that requires to be mentioned is that he also contested the suit on the ground that he could not be a licensee an