IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
MOUSHUMI BHATTACHARYA, M.G. PRIYADARSINI, JJ.
Kantilal – Petitioner
Versus
Indian Overseas Bank, Rep. by the Senior Manager – Respondent
I.A. Nos. 1, 2, 3 of 2024, A.S. No. 25 of 2006
Decided On : 16-07-2024
(A) Code of Civil Procedure, 1908 - Order XLI Rule 22 - Order XXIII Rule 1 - Withdrawal of appeal - Appellants sought to withdraw appeal against the Bank after settling dues - Respondents opposed withdrawal but had no cross-objections - Court allowed withdrawal as respondents had no interest in the properties post-judgment - Court emphasized the limited power to refuse withdrawal without cross-objections. (Paras 30, 31)
JUDGMENT :
MOUSHUMI BHATTACHARYA, J.
1. The appellants have filed I.A. No. 3 of 2024 for withdrawal of the Appeal Suit.
2. The appellants were the plaintiffs in a Suit filed before the Trial Court for declaration that the appellants are the absolute owners of the suit schedule properties and are in exclusive possession over the same. The appellants also prayed for restraining the defendant No. 4/Indian Overseas Bank from proceeding with the sale of the suit schedule properties.
3. The respondent No. 1 in the appeal i.e., Indian Overseas Bank is the defendant No. 4 and the other 3 respondents in the appeal are the defendant Nos. 1-3 in the Suit.
4. By the impugned judgment dated 19.10.2005, the Suit was decreed in favour of the appellants and against the defendant Nos. 1-3 for declaration of title and exclusive possession over the suit schedule properties. The Suit was however dismissed against the defendant No. 4/Bank (respondent No. 1 in the appeal).
5. A curious situation has however arisen pursuant to the appellants’ plea for withdrawal of the appeal. The respondent No. 1/Bank supports the appellants while the respondent Nos. 2-4 vehemently opposes the said withdrawal. The opposing respondents however do not have any objection if the appeal is dismissed as withdrawn without further reference to the facts which led to the appellants’ prayer for withdrawal.
6. Learned Senior Counsel representing the appellants and counsel representing the respondents No. 1/Bank and respondent Nos. 2 and 3 have made detailed submissions including referring to the proceeding pending before the Debts Recovery Tribunal (D.R.T.) against the respondent Nos. 2-4.
7. A brief background to the appeal should first be stated. The defendant Nos. 1-3 and their family members had purchased the suit schedule properties vide a registered Sale Deed dated 16.11.1966 and became owners of the suit schedule properties by a registered partition deed dated 21.07.1970. The appellants (plaintiff Nos. 1-6) purchased 3 items of the suit schedule properties under registered Sale Deeds dated 12.12.1988, 13.12.1988 and 14.12.1988 from the defendant Nos. 1-3. The registration of the suit schedule properties was done in 1994. The possession of the properties however was delivered to the appellants under Agreements of Sale in 1985.
8. In February, 2004, the appellants/plaintiffs came to know that the defendant No. 4/Bank had made a claim for attachment of the property and for proclamation of sale on a prior mortgage of the property which had not been disclosed by the defendant Nos. 1-3 or their General Power of Attorney Holder. The appellants filed O.S. No. 84 of 2004 before the Trial Court in these circumstances for declaration of title and for restraining the defendant No. 4/Bank from interfering with the appellants’ peaceful possession of the suit schedule property.
9. The defendants filed their respective written statements in the Suit denying the contentions of the appellants/plaintiffs and claiming under the prior mortgage to the Agreement of Sale and the Sale Deed, which the defendants executed in favour of the plaintiffs.
10. The Trial Court framed 5 issues and a 6th additional issue in the Suit which included the plaintiffs’ claim for declaration of title and exclusive possession and whether the suit schedule properties were the subject matter of Recovery Certificates issued by the D.R.T. Ernakulam, in favour of the defendant No. 4/Bank. The additional issue related to the jurisdiction of the Court for trying the Suit in view of the appeal mechanism provided under Section 30 of The Recovery of Debts Due to Banks and Financial Institutions Act, 1993, as amended.
11. The Trial Court passed a detailed judgment (impugned in the present appeal) and decided in favour of the appellants/plaintiffs for grant of relief for declaration of title and exclusive possession over the suit schedule properties against the defendant Nos. 1-3 (respondent Nos. 2-4 in the appeal). The Trial Court how
The court affirmed the right to withdraw an appeal when no cross-objections are filed, emphasizing limited grounds for refusal.
Withdrawal of a suit post-adjudication at the appellate stage requires strong justification to avoid prejudicing vested rights established by a prior decree.
Permission to withdraw a suit with liberty to file a fresh suit requires sufficient grounds or a formal defect; mere change in circumstances does not suffice.
The main legal point established in the judgment is that the plaintiff has an unqualified right to withdraw the suit unconditionally, and the defendant's objection to the withdrawal amounted to a mis....
The establishment of title and failure to prove right to possession are crucial in determining entitlement to recovery of possession.
The right to withdraw a suit is absolute unless restricted by law, and a significant delay in seeking recall of such withdrawal must be justified with a bona fide explanation.
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