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Unregistered Receipt Inadmissible as Sale Evidence; False Ownership Claim Bars Injunction for Tenant Possession: J&K High Court - 2025-12-05

Subject : Civil Law - Property Disputes

Unregistered Receipt Inadmissible as Sale Evidence; False Ownership Claim Bars Injunction for Tenant Possession: J&K High Court

Supreme Today News Desk

J&K High Court Upholds Vacation of Injunction in Property Dispute: Tenant Cannot Claim Protection Based on False Ownership

In a significant ruling on property possession and interim relief, the High Court of Jammu & Kashmir and Ladakh at Srinagar dismissed a petition challenging the vacation of an interim injunction. Justice Sanjay Dhar, presiding single bench, ruled that a claimant's prima facie false assertion of ownership disentitles them to equitable relief, even if they are in actual possession as a tenant. The decision, dated November 24, 2025, in Abdul Khaliq Sofi vs. Mohammad Shafi Mir and Another (CM(M) No. 512/2025), emphasizes that adjudication in an injunction suit satisfies "due process of law" for dispossession, allowing the true owner to use reasonable force if necessary.

Case Background and Parties Involved

The dispute centers on a small plot of land measuring 15 by 12 feet in the Main Market of Shadi Marg, Pulwama district, along the Shadimarg Keller Road. Petitioner Abdul Khaliq Sofi, the plaintiff in the original suit, filed for a permanent injunction against respondents Mohammad Shafi Mir (defendant No. 1) and another unnamed defendant. Sofi claimed he purchased the land in 2009 for Rs. 4.5 lakh, paying Rs. 3.92 lakh via receipt and the balance later, and subsequently built a two-storied bakery shop, investing an additional Rs. 1.82 lakh.

The suit, filed before the Sub Judge (Special Mobile Magistrate) in Pulwama, sought to restrain the defendants from interfering with his alleged ownership and possession. An interim injunction was initially granted in Sofi's favor. However, on March 11, 2025, the trial court vacated it under Order 39 Rules 1 and 2 of the Code of Civil Procedure (CPC), finding no prima facie case. This order was upheld on appeal by the District Judge, Pulwama, on November 17, 2025, prompting Sofi's petition to the High Court.

Arguments from Both Sides

Sofi argued that the Rs. 3.92 lakh receipt proved the sale transaction, invoking the proviso to Section 49 of the Registration Act , 1908, to use it as evidence of a collateral transaction. He contended that even if deemed a tenant, his possession could not be disturbed without due process, such as a formal eviction decree, emphasizing his long-standing use of the property for a bakery business.

The defendants, represented by counsel M. Amin Khan, denied any sale and asserted exclusive ownership of the shopping complex, which includes three ground-floor shops and a first floor. They claimed the payment was an advance for a seven-year lease at Rs. 2,250 per month (with a 20% enhancement thereafter), not a purchase. By December 2023, they alleged Sofi owed Rs. 23,000 in arrears (after deductions), and he refused to pay market-rate rent of Rs. 4,000 from January 2024. The defendants portrayed Sofi as a tenant by sufferance or holding over, without a formal rent deed, and accused him of filing a frivolous suit to avoid eviction.

Legal Principles and Precedents Applied

Justice Dhar meticulously analyzed the evidentiary value of the unregistered receipt, ruling it inadmissible under Section 49 of the Registration Act for proving a sale, as it lacked any covenant of transfer and was not an agreement to sell. The proviso allows such documents only for specific performance suits or collateral purposes, neither of which applied here. The court distinguished this from cases where an unregistered agreement could support a specific performance claim.

On possession rights, the bench clarified that Sofi's claim was rooted in ownership, not tenancy. Since the ownership assertion was prima facie untenable, equitable injunction relief was barred: "A litigant who seeks equitable relief has to do equity. The plaintiff in this case has come up with a prima facie false claim of ownership qua suit property, so he is disentitled to relief of injunction."

Drawing on precedents, the court referenced its own decision in

* Madan Lal vs. Shri Mata Vaishno Devi Shrine Board

* (CSA No. 18/2018, decided September 20, 2023), which discussed "due process of law" in dispossessions. It quoted extensively from Delhi High Court rulings like M/s. G. M. Modi Hospital vs. Shankar Singh Bhandari (AIR 1996 Delhi 1) and Thomas Cook (India) Limited vs. Hotel Imperial (2006 (15) ILR Delhi 90), emphasizing that settled possession—even unlawful—cannot be disturbed without judicial adjudication, but the initiator of the suit (here, Sofi for injunction) satisfies this requirement if they fail to prove their case.

The Supreme Court's approval in Maria Margarida Sequeira Fernandes vs. Erasmo Jack de Sequeira (AIR 2012 SC 1727) reinforced that "due process" is met once rights are determined by a competent court, regardless of who files. Justice Dhar noted: "The requirement of due process of law gets fulfilled once a person in possession brings a suit for injunction... and his rights are determined in the said suit. It is not necessary for the defendants to bring a fresh suit for eviction."

This distinguishes between forcible self-help (prohibited) and post-adjudication eviction, allowing true owners to use reasonable force against trespassers or overstaying tenants after a failed injunction claim.

Court's Decision and Implications

Dismissing the petition, the High Court upheld the lower courts' orders, finding no merit in Sofi's challenge. The ruling clarifies that tenants or possessors cannot leverage false ownership claims for interim protection, and a single injunction adjudication fulfills due process, streamlining property disputes.

For legal professionals, this reinforces limits on unregistered documents and equitable relief in civil suits. For the public, it underscores the risks of informal transactions without registration, particularly in commercial tenancies in regions like Jammu & Kashmir. The decision may influence similar cases, promoting swift resolutions while protecting genuine owners from prolonged litigation.

The full judgment is available under CM(M) No. 512/2025, with associated applications CM Nos. 7685/2025 and 7686/2025.

#PropertyDispute #TenantRights #JKHighCourt

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