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2013 Supreme(Online)(SC) 198

Dr. B. S. CHAUHAN, FAKKIR MOHAMED IBRAHIM KALIFULLA, JJ
The State of A.P. & Ors. – Appellant
Versus
M/s. Star Bone Mill & Fertiliser Co. – Respondent
CIVIL APPEAL NO. 6690 of 2004



Advocates:
For the Appellants/Petitioners: Shri Amarendra Sharan
For the Respondents: Shri D. Rama Krishna Reddy

Possession does not infer title; vendor's lack of legal title invalidates subsequent property claims under statutory regulations.

Headnote:(A) Evidence Act, 1872 - Section 90 - Civil Suit for title - Sale deed questioned for lack of vendor's title - Courts below misapplied Section 90 regarding evidence and title - Revenue records considered sufficient for ownership claim without evidence of vendor title - Courts failed to address inadequacies in claim to title based on prior lessee's authority. (Paras 3, 6, 16)

(B) Property Law - Possession and title - Mere possession does not secure title without proving ownership; mere acceptance of taxes does not negate statutory rights. (Paras 12-14)

(C) Findings of Court - Trial and appellate courts incorrectly upheld that revenue records confer title, failing to recognize vendor's lessee status. (Paras 16-17)

Facts of the case:
Appellants contested the declaration of title by respondent over disputed land based on a sale deed executed by a lessee without valid title; previous possessive claims and lease details outlined.

Findings of Court:
Courts ignored that the vendor's title was inadequate, thus impacting title claims over the land; trial ruling found unsustainable.

Issues: Whether the vendor had valid title to transfer; validity of the sale deed relied upon in the absence of proper ownership evidence.

Ratio Decidendi: Possession does not equate to ownership; vendor's lack of title invalidates respondent's claims.

Result: Appeal allowed; judgments of lower courts set aside; suit of the respondent dismissed.

JUDGMENT

Dr. B. S. CHAUHAN, J.

1. This appeal has been preferred against the impugned judgment and order dated 22.3.2004, passed by the High Court of Judicature of Andhra Pradesh at Hyderabad in City Civil Court Appeal No. 72 of 1989, by way of which the Civil Suit filed by the respondent against the appellants, claiming title over the suit land in dispute, has been upheld.

2. The facts and circumstances giving rise to this appeal are:

A. One Shri M.A. Samad, Assistant Engineer, City Improvement Board, Hyderabad, alongwith his associate, converted the land in dispute measuring 3.525 acres i.e. 17061 sq. yards, in favour of the Forest Department in 1920.

B. The suit land was given on lease on 21.5.1943 to M/s. A. Allauddin & Sons for a fixed time period, incorporating the terms and conditions, that the lessee would not be entitled to extend the existing building in any way, or to erect any structure on the land leased. The lessee was also prohibited from transferring the suit land by any means.

C. The said M/s. A. Allauddin & Sons, a proprietory concern, sent a letter dated 29.9.1945 in response to the eviction notice, informing the appellants that it was not possible for it to remove the factory established on the suit land, and thus, the said lessee asked the appellants to put up the said property for rent. The said firm, then sent a letter dated 1.5.1951, offering rent of Rs.600/- per annum.

D. The appellants vide letter dated 20.12.1954, informed M/s. A. Allauddin & Sons to vacate the site within a period of one month, or else be evicted in accordance with law, and in that case it would also be liable to pay damages. In spite of receiving such a letter, the said lessee/tenant remained in possession of the suit premises, and continued to pay rent, as is evident from the letter dated 15.8.1956. The appellants, however, vide letter dated 21.2.1958, asked the said lessee/tenant M/s. A. Allauddin & Sons, yet again, to vacate the suit land.

E. Instead of vacating the suit land, M/s. A. Allauddin & Sons executed a lease deed dated 24.2.1958, and got it registered on 6.4.1958, in favour of Syed Jehangir Ahmed and others (Partners of the respondent firm, M/s Star Bone Mill and Fertiliser Co.), for a period of two years. During the subsistence of the said sub-lease, the partners of the firm M/s. A. Allauddin & Sons, executed a sale deed on 11.11.1959 in favour of the respondent, for a consideration of Rs.45,000/-. The said sale deed was also registered, and possession was handed over to the respondent.

F. The respondent herein filed a petition in 1964 before the Minister for Agriculture & Forest, seeking permanent lease of the suit premises in his favour. On 26.4.1967, an order was passed by the Ministry of Agriculure & Forest in respect of recovery of arrears of rent as regards the said land. The respondent vide letter dated 7.5.1969, offered higher rent to the appellants for the suit land.

G. On 22.5.1970, the respondent wrote a letter to the Chief Minister of Andhra Pradesh (Ex.B-39), stating that he had been cheated by M/s. A. Allauddin & Sons, as it had executed a sale deed in his favour, even though it had no title, and a very high rate of rent was fixed by the department, which should be reduced and till the matter is finally decided, a rent of Rs.569/- per month should be accepted. The said application/petition was rejected by the Assistant Secretary to the Government, Food & Agriculture Department, vide letter dated 18.12.1970.

H. Aggrieved, the respondent filed Writ Petition No. 187 of 1971 wherein an interim order dated 12.1.1971 was passed, to the effect that the recovery of rent for the period prior to 26.4.1969 would be made at the rate of Rs.568/- per month instead of Rs.1279/- per month. Subsequent to 26.4.1969, rent would be recovered at the rate of Rs.1279/- per month. In case, arrears are not paid by the respondent, he would be vacated from the suit land.

I. In view of the interim order of the High Court, the appellants issued

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