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1982 Supreme(P&H) 315

PUNJAB & HARYANA HIGH COURT
A.S.Bains, J.
Municipal Committee, Khanna
Versus
Sheela Rani
Regular Second Appeal No. 96 of 1974,
Decided On : SEPTEMBER 27, 1982

Section 47 of the Punjab Municipal Act, 1911, does not apply to leases of property to a municipal committee.

Headnote:

MUNICIPAL LAW - LEASE OF MUNICIPAL PROPERTY - APPLICABILITY OF SECTION 47 OF THE PUNJAB MUNICIPAL ACT, 1911 - COMPETENCY OF TRUSTEES TO LEASE OUT PROPERTY - VALIDITY OF LEASE DEEDS - PRIORITY OF REGISTERED DOCUMENT OVER UNREGISTERED DOCUMENT.

Fact of the Case:

The Municipal Committee, Khanna, filed a suit for possession of land leased from Mandir Shivala. The contesting defendants claimed possession under a pattanama executed by one of the trustees of the Mandir. The trial court decreed the suit, but the lower appellate court reversed the decision.

Finding of the Court:

The High Court held that Section 47 of the Punjab Municipal Act, 1911, which requires certain formalities for contracts and transfers of property by a municipal committee, was not applicable to the case as the lease was executed by the Mandir in favor of the Municipal Committee. The court also held that the trustees of the Mandir were competent to lease out the property and that the lease deeds were valid. The court further held that the registered pattanama executed in favor of the Municipal Committee had priority over the unregistered pattanama executed in favor of the defendant.

Issues: 1. Whether Section 47 of the Punjab Municipal Act, 1911, applies to the lease of property by a Mandir to a Municipal Committee? 2. Whether the trustees of the Mandir were competent to lease out the property? 3. Whether the lease deeds were valid? 4. Whether the registered pattanama executed in favor of the Municipal Committee had priority over the unregistered pattanama executed in favor of the defendant?

Ratio Decidendi: 1. Section 47 of the Punjab Municipal Act, 1911, applies only to contracts and transfers of property by a municipal committee, not to leases of property to a municipal committee. 2. The trustees of the Mandir were competent to lease out the property as there was no evidence of mala fide or ulterior motive. 3. The lease deeds were valid as they were executed by the trustees of the Mandir and approved by the Municipal Committee. 4. The registered pattanama executed in favor of the Municipal Committee had priority over the unregistered pattanama executed in favor of the defendant.

Final Decision: The appeal filed by the Municipal Committee was allowed, and the judgment and decree of the lower appellate court were set aside. The judgment and decree of the trial court were restored with costs throughout.

Judgment

A.S.Bains, J.

1. Facts giving rise to this second appeal by the Municipal Committee, Khanna, are as follows :-

The Municipal Committee, Khanna, plaintiff-appellant, through its President, filed a suit for possession of 33 kanals 15 marlas of land forming part of Khasra No. 2247, Khewat No. 1553, Khatauni No. 2047, fully described in the heading of the plaint. It was averred by the plaintiff that the land measuring 61 kanals 6 marlas consisting of Khasra No. 2247 was owned by Mandir Shivala, defendant-respondent No. 7, that 41 kanals 14 marlas out of the said land was leased to it on 2nd January, 1957, for a period of 99 years by Mandir Shivala through Amar Singh, one of the trustees, and that the remaining land measuring 19 kanals 3 marlas was further leased out to it for a period of 20 years with effect from 23rd July, 1962 by the said Mandir through Amar Singh and Malan Singh trustees: that the plaintiff-Committee handed over the possession of 27 kanals 12 marlas of land to Government Girls Higher Secondary School; that the possession of the remaining land measuring 33 kanals 15 marlas had remained with the plaintiff Committee for public use; that defendants 1 and 2 had taken forcible possession of that piece of land about 4 years prior to the institution of the present suit alleging that a `pattanama had been executed in their favour by Ishar Dass, one of the trustees; that the possession of defendants Nos. 1 and 2 over the land in suit was illegal and without any jurisdiction.

2. The suit was not contested on behalf of Mandir Shivala. The contesting respondents 1 and 2 denied that the plaintiff-committee is the lessor of the land in dispute. It was further pleaded that Amar Singh, trustee of the Shivala Mandir, was not competent to lease out the property in favour of the plaintiff-committee and that Ishar Dass, one of the trustees, was competent to lease out the property on behalf of the Mandir by executing a parttanama on 20th August, 1958, under which the defendant No.1 was holding possession of 20 bighas of Kham land since then and the plaintiff-Committee had no locus standi to file the suit and that the suit was premature.

3. The parties contested on the following issues :-

1. Whether the plaintiff is the lessee of the property of defendant No. 3 by alleged lease deed dated 2.1.1957 and 23.7.1962 ?

2. Whether Amar Singh had power to lease out the property in dispute ?

3. Whether the defendants are in illegal possession of the property in dispute ?

4. Whether the defendant No.1 is lessee of defendant No.3 through lease deed dated 20.8.1958 ?

5. Whether Ishar Dass was competent to lease out the property on behalf of defendant No. 3 ?

6. Whether plaintiff has locus standi to file the suit ?

7. Whether the suit is premature ?

8. Whether the defendant is entitled to special costs under section 35-A, C.P.C. ?

9. Whether the plaintiff is barred by his act and conduct from filing the suit ?

10. Whether defendant No. 1 is entitled to bona fide improvements. If so, how much ?

11. Relief.

4. The trial Court decided issues Nos. 1, 2, 3, 4, 6, 7, 8, 9 and 10 in favour of the plaintiff-appellant and issue No. 5 against it, and decreed the suit with costs. On appeal by respondents 1 and 2, the findings of the trial Court on issue Nos. 1, 2, 3, and 4 were reversed by the learned 1st Additional District Judge, Ludhiana and the suit of the plaintiff-appellant was dismissed.

5. Only issues which survive for determination in this second appeal are issues No. 1 to 4. The lower appellate Court decided these issues 1 and 2 against the plaintiff-Committee on the basis of Section 47 of the Punjab Municipal Act, 1911 (hereinafter referred to as the Act), but its finding is misconceived as section 47 has no applicability to the facts of the present case. Section 47 is in the following terms :-

"47. Mode of executing contract and transfer of property: (1) Every contract made by or on behalf of the committee of any municipality of the firs







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