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2023 Supreme(P&H) 2689

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
B.S. WALIA, J.
Subhash Chander – Appellant
Versus
Improvement Trust Pathankot & Ors. – Respondents
RSA-285 of 1991
Decided On : 30-01-2023

Advocates Appeared:
Mr. Vishal Aggarwal, Advocate; For the Petitioner
Mr. Kavita Arora, Advocate; For the Respondents

Headnote:(A) Punjab Town Improvement Act, 1922 - Sections 26 and 27 - Claim for permanent injunction against dispossession of commercial property - Appellant ceased being owner after acquisition; presence was only as a possessor - Section 27, applicable only for residential properties; not compulsory for the Trust to provide alternative accommodation for commercial properties - Claim for rehabilitation dismissed. (Paras 2-10)

(B) Injunction - Right to seek injunction against dispossession - No legal right established for the continuation of possession after compensation has been deposited by the Trust - Claim for relief based on the nature of property not substantiated. (Paras 4-6)

Facts of the case:
The appellant filed a suit seeking permanent injunction against the respondents from dispossessing him from a shop marked in the site plan, alleging that he had not been provided alternative accommodation following the acquisition of his property by the respondents.

Findings of Court:
The appellant was not entitled to the relief as his property was commercial and thus not covered under the rehabilitation provisions for residential houses per the Act.

Issues: Whether the appellant was entitled to be provided alternative accommodation prior to dispossession and whether the Trust could take possession of the property without offering rehabilitation.

Ratio Decidendi: The court upheld that only residential house owners could claim rehabilitation under Section 27, dismissing the claim on grounds of lack of legal right to remain in possession after the property was acquired.

Result: Appeal dismissed with liberty to represent for the release of land as per the governing scheme.

Table of Content
1. facts surrounding the appeal. (Para 1)
2. court's analysis of ownership and possession. (Para 2 , 3 , 4)
3. confirmation of lower court's dismissal. (Para 5)
4. arguments on lack of legal basis for rehabilitation. (Para 6 , 7 , 8 , 9)
5. final dismissal of appeal. (Para 10)

JUDGMENT

B.S. Walia, J. (Oral)

Regular Second appeal has been filed against judgment and decree dated 08.10.1990 passed by the learned Additional District Judge, Gurdaspur in Civil Appeal No.22/98 in case titled as Subash Chander v. Improvement Trust , Pathankot and another upholding the judgment and decree dated 14.10.1987 passed by the learned Sub Judge Ist Class, Pathankot vide which the civil suit filed by the Appellant/plaintiff for a decree of permanent injunction for restraining the Respondents/ defendants from forcibly dispossessing/dismantling/demolishing the shop marked as ABCD and shown in red colour in the site plan attached with the plaint situated in village Saili, Pathankot, unless he was provided with alternative shop accommodation.

2. On the pleadings of the parties, the following issues were framed:-

    1. Whether the plaintiff is owner in possession of the property in dispute? OPP

    2. Whether the plaintiff is entitled to the injunction as requested for ? OPP.

    3. Relief.

Thereafter,on the basis of the evidence led, qua issue No.1, it was held that although the Appellant/plaintiff had ceased to be owner of the disputed land/property after its acquisition by the Respondents/defendants, yet the Appellant/plaintiff continued to be in possession over the disputed structure and accordingly, issue No.1 was decided in his favor, qua possession but against him, regarding ownership.

3. As regards issue No.2, learned trial Court held that the compensation in respect of the acquired site having been deposited and the Appellant/plaintiff not having filed appeal against the verdict of the Court regarding the assessment of the compensation after depositing of the compensation assessed by the competent Court for the acquisition of the disputed structure as well as the site covered by the same, the Respondents/defendants-Trust had the right to acquire its possession and the Appellant/plaintiff had no right to remain or continue in possession over the same and that the Respondents/defendants in the circumstances could not be restrained from taking possession thereof. Accordingly, issue No.2 was decided against the Appellant/plaintiff.

4. As regards the claim for alternative accommodation before dispossessing the Appellant/plaintiff from the disputed structure, learned trial Court referred to Section 27 of the PUNJAB TOWN IMPROVEMENT ACT , 1922 (for short - " the Act") which is reproduced as under:-

    "Any resident house-owner who is likely to be displaced by the execution of any scheme under this Act, may apply to the trust to be re-housed and no such scheme shall be put into execution until a re-housing scheme as provided for in Section 26 for the re-housing of such resident house-owners as may apply under this Section has been completed."

and held that claim would be attracted in terms of Section 27 of the Act ibid only in case the same pertained to a residential house whereas the dispute in the instant case was regarding the structure raised for running a brick kiln and presently, allegedly being used for running a Karyana shop by the Appellant/plaintiff, accordingly, the disputed structure / or business in the premises in respect thereto was not covered under the law contained in Section 27 of the Act, therefore, it was not mandatory for the Respondents/defendants to provide the Appellant/plaintiff with alternative accommodation before taking possession of the disputed property, therefore, the Appellant/plaintiff could not be held entitled to relief of a permanent prohibitory injunction against the Respondents/defendants. Accordingly, case on the issue was decided against him and in view of the same, the suit was dismissed vide judgment and de

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