SUPREME COURT OF INDIA
M.R. SHAH, NAGARATHNA, JJ
Manik Majumder and Others – Appellant
Versus
Dipak Kumar Saha (Dead) through Lrs. & Others – Respondent
CIVIL APPEAL NO. 2965 OF 2022 | Regular Second Appeal No. 01/2005
Based on the provided legal document, here are the key points regarding the case Manik Majumder and Others – Appellant vs. Dipak Kumar Saha (Dead) through Lrs. & Others – Respondent:
Case Overview and Outcome * The Supreme Court of India allowed the appeal filed by the original defendants (appellants in this context), quashing the High Court's judgment that had decreed the suit in favor of the plaintiffs. * The judgment of the Trial Court and the First Appellate Court, which had dismissed the plaintiffs' suit for declaration of title, was restored. * The Court held that the plaintiffs failed to prove their title because the foundational Power of Attorney (PoA) was not produced, and the statutory requirements for its execution were not satisfied.
Facts of the Case * The original owner, Braja Mohan Dey, allegedly borrowed money from the tenant (Plaintiff No. 2) and subsequently went to East Pakistan (now Bangladesh). * It is alleged that Braja Mohan Dey executed a Power of Attorney in favor of Plaintiff No. 2 in East Pakistan to enable the repayment of the loan through the sale of the property. * Plaintiff No. 2 executed two registered sale deeds: one in his own favor dated 3.9.1968 and another transferring the property to his wife (Plaintiff No. 1) dated 29.09.1968. * The defendants (original owners' successors) claimed peaceful possession of the property for over forty years and contested the plaintiffs' title. * Crucially, the Power of Attorney executed by the original owner was never produced before the Trial Court or the First Appellate Court.
Lower Courts' Findings * Trial Court: Dismissed the suit, holding that the plaintiffs failed to establish their right, title, or interest because the PoA was not produced. The Court noted that the sale deeds lacked specific endorsements by the Sub-Registrar regarding the authority derived from the PoA. * First Appellate Court: Confirmed the Trial Court's judgment, stating that without the PoA, the genuineness of the sale deeds could not be presumed. * High Court: Allowed the plaintiffs' second appeal. It held that the endorsement on the sale deed by the Sub-Registrar established the authority of the plaintiff. The High Court drew a statutory presumption under Section 60 of the Registration Act, 1908, regarding the validity of the PoA and the sale deeds, reversing the lower courts' findings.
Key Legal Issues and Arguments * Non-production of PoA: The appellants argued that the plaintiffs failed to discharge their initial burden of proving title. Since the PoA was the "fulcrum" of the case and was not produced, the validity of the sale deeds relying on it was doubtful. * Compliance with Registration Act: The appellants contended that the PoA was executed in a foreign jurisdiction (East Pakistan) without complying with Section 33(1)(c) of the Registration Act, 1908, which requires specific authentication for PoAs executed outside India. * Statutory Presumption: The respondents argued that the endorsement made by the Sub-Registrar on the sale deed creates a statutory presumption of validity under Sections 58, 59, and 60 of the Registration Act. They argued that the burden lies on the defendants to rebut this presumption with strong evidence, which they failed to do. * Conduct of Plaintiffs: The Court noted that Plaintiff No. 2's conduct raised doubts; after acquiring title in his own name via the first sale deed, he executed a second sale deed in favor of his wife claiming to act as the PoA holder of the original owner, which was legally unnecessary if he was already the owner. * Burden of Proof: The Supreme Court emphasized that a party averring title must prove it. The non-compliance with Section 33(1)(c) regarding the execution of the PoA meant the statutory presumption could not be invoked.
Supreme Court's Reasoning and Decision * Validity of PoA Execution: The Court found that the recitals in the sale deeds indicated the PoA was executed before a Magistrate in East Pakistan. However, the Court determined that this did not satisfy the strict requirements of Section 33(1)(c) of the Registration Act, 1908, necessary for a PoA executed outside India to be valid for registration purposes in India. * Rejection of Presumption: The Court held that a statutory presumption under Section 60 of the Registration Act applies only when all requirements of execution are complied with and there is no doubt about the genuineness of the PoA. Since the PoA was not produced and its compliance with Section 33(1)(c) was not established, the presumption could not be drawn. * Reliance on Precedents: The Court relied on Amar Nath v. Gian Chand to clarify that while a PoA holder executing a sale deed does not always need to produce the original PoA for registration, that principle does not absolve the party of proving the underlying authority when the PoA's execution itself is challenged regarding statutory compliance. * Final Holding: The Supreme Court concluded that the Trial Court was justified in dismissing the suit. The High Court erred in decreeing the suit by drawing a presumption without satisfying the statutory conditions for the PoA's validity. Consequently, the appeal was allowed, and the lower courts' judgments were restored.
| Table of Content |
|---|
| 1. defendants appeal against high court's order. (Para 1 , 2) |
| 2. appellants' legal arguments against high court. (Para 3) |
| 3. respondents' counterarguments in support of the high court. (Para 4) |
| 4. summary of the judicial hearing. (Para 5) |
| 5. underlining essential legal issues for consideration. (Para 6 , 7 , 8) |
| 6. discussion on execution and proof of sale deeds. (Para 9 , 10) |
| 7. final arguments and assessment of evidence. (Para 11) |
| 8. judicial conclusions on title and property laws. (Para 12 , 13 , 14) |
| 9. consolidation of evidentiary presumptions. (Para 15 , 16 , 17) |
| 10. final judgment delivered by the supreme court. (Para 18 , 19 , 20) |
| 11. discussion on statutory obligations and legal interpretations. (Para 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30) |
| 12. conclusion and dismissal of the appeal. (Para 31) |
JUDGMENT
M.R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 05.04.2018 passed by the High Court of Tripura at Agarthala in Regular Second Appeal No. 01/2005, by which the High Court has allowed the said appeal preferred by the original plaintiffs and has decreed the suit by quashing and setting aside the concurrent findings recorded by both the courts below, the original defendants have preferred the present appeal.
2. The facts leading to the present appeal in a nutshell are as under:
That one Braja Mohan Dey was the owner and in possession of ‘Schedule A’ property. He was alleged to have taken a loan of Rs. 10,000/- from his tenant, namely, Dhirendra Chandra Saha, original plaintiff No.2. The original owner, Braja Mohan Dey went to East Pakistan. It was alleged that he had executed a Power of Attorney (PoA) in East Pakistan, ostensibly in favour of original plaintiff No.2 to enable repayment of the alleged loan amount by sale of the subject land to himself (original plaintiff No.2) as his PoA holder. That original plaintiff No.2, on the basis of the alleged loan amount and PoA alleged to have been executed by the original owner, executed in his favour sale deed dated 3.9.1968 as PoA holder of the original owner. Thereafter original plaintiff No.2, by virtue of the said PoA, transferred ‘Schedule A’ property to his wife Gita Rani Saha (original plaintiff No.1) (now deceased) vide sale deed dated 29.09.1968, allegedly for repayment of a sum of Rs. 20,000/- taken by him from his wife, out of which a sum of Rs. 10,000/- was alleged to have been handed over to the original owner Braja Mohan Dey.
2.1 That original plaintiff No.2 allegedly constructed a godown at the rear end of the grocery shop in another part of ‘Schedule A’ property (‘Schedule C’ property). It was the case on behalf of the plaintiffs that one Sarat Chandra Majumdar (original defendant No.1) tried to dispossess the plaintiffs from the said ‘Schedule C’ property. However, on the other hand, it was the case on behalf of the defendants that their predecessor-in-interest held out that Sarat Chandra Majumdar was in possession of the suit land for more than thirty years and was running a business from the said property, while denying that the plaintiffs had acquired any right, title or interest as claimed over the suit land. The original defendants also claimed to be in peaceful possession of the property for over forty years and it was their case that they were paying the municipal taxes and land revenue and other statutory dues. The plaintiffs alleged that the defendants had started a pucca construction on ‘Schedule C’ property and forcibly dispossessed them from the said property. Therefore, the plaintiffs filed a Civil Suit being T.S. No. 201/1985 before the learned trial Court for a declaration of title over the suit land and recovery of khas possession from the defendants (appellants herein).
2.2 The said suit was resisted by the defendants by filing a written statement denying all the allegations as well as their right of possession in respect of the disputed suit property. At this stage, it is required to be noted
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