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Tuesday, December 18, 2018

Whether under Mysore Hindu Law women's Rights Act /Karanataka Hindu law women's rights Act - if a women acquired property on the death of her husband - can be considered as aboslute owner and whether she can gift the same to her one of the daugther and whether on the death of donee , this property falls on her husband or revert back on the legal heirs of Donor that is another duagther under sec.15 [[2][a] of Hindu Succession Act ? Mysore Hindu Law Women�s Rights Act, 1933 [subsequently known as �Karnataka Hindu Law Women�s Rights Act, 1933� by way of amendment by Mysore State (Alteration of Name) Act, 1973 (31 of 1973)] - under Section 10 the suit property that came to her on the death of her husband - was Stridhana property and by virtue of Section 11 of the said Act the aforesaid person i.e. she became the absolute owner of such property with unrestricted powers of enjoyment and disposition. - If that is so, she was undoubtedly competent to execute the gift deeds in question dated 9 th April, 1954 by virtue of which Muddamma became the absolute owner of half of that property. On her death (i.e. Muddamma�s death) i.e. on 7 th May, 1997 her husband Rangappa @ Bodappa would become the absolute owner and would, therefore, be competent to transfer the property by way of sale deed in favour of the appellant - The provisions of Section 15(2)(a) of the Hindu Succession Act, 1956 not applies - In the present case, Muddamma had not inherited any property but what she had acquired is an absolute right to the suit property by way of the gift deed dated 9 th April, 1954. On her death, the property would, therefore, not vest in terms of Section 15(2)(a) of the Hindu Succession Act, 1956 but would go to her husband who would be competent to transfer the same in favour of the present appellant. Trial court decree is restored - High court order is setaside - appeal allowed.


Hon'ble Mr. Justice Ranjan Gogoi
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IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO(S).8076-8077 OF 2018
[ARISING OUT OF SPECIAL LEAVE PETITION
(CIVIL) NO.24201-24202 OF 2014]
RANGAPPA  ...APPELLANT(S)
VERSUS
THIPPESWAMY & ORS. ...RESPONDENT(S)
ORDER
1. Leave granted.
2. One   Rangamma   and   Odo   Nagappa   had
two   daughters   Nagamma   and   Muddamma.
Nagamma,   who   is   represented   by   her   legal
representatives  and  her  son  Thippeswamy  are
the   respondents   in   the   present   appeals
whereas     one   Sri   Rangappa   s/o   Kurilingappa
who   purchased   the   suit   property   from
Rangappa   @   Bodappa,   the   husband   of   the

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other   daughter   Muddamma   is   the   appellant
herein.
3. The   purchaser   of   the   suit   property
i.e.   the   appellant   herein   instituted
Original   Suit   No.163   of   2002   seeking   a
declaration   of     title   and   permanent
injunction.     The   respondents   herein   also
instituted   Original   Suit   No.8   of   2004
seeking   a   similar   relief   of   declaration   of
title.
4. The   learned   trial   Court   decreed
Original   Suit   No.163   of   2002   filed   by   the
appellant   herein   and   dismissed   Original
Suit   No.8   of   2004   filed   by   the   respondents
herein.   The   First   Appellate   Court   affirmed
the said decrees.   The High Court in Second
Appeals   preferred   by   the   respondents   had
reversed the decree passed in Original Suit
No.163   of   2002   filed   by   the   appellant   and

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decreed   the   Original   Suit   No.8   of   2004
filed by the respondents herein.   Hence the
present appeals.
5. The   point   in   issue   is   short   and
precise.   Whether   on   the   death   of   Odo
Nagappa   sometime   in   the   year   1950   his   wife
Rangamma   became   an   absolute   owner   of   the
property   to   be   competent   to   execute   two
gift   deeds   dated   9 th
  April,   1954   in   favour
of her two daughters Nagamma and Muddamma.
6. We   have   been   taken   through   the
provisions   of   Section   4   and   10   of   the
Mysore   Hindu   Law   Women�s   Rights   Act,   1933
[subsequently  known  as  �Karnataka  Hindu  Law
Women�s   Rights   Act,   1933�   by   way   of
amendment   by   Mysore   State   (Alteration   of
Name)   Act,   1973   (31   of   1973)].   Reading   the
aforesaid   provisions   conjointly   we   find
that   under   Section   10   the   suit   property

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that   came   to   Rangamma   on   the   death   of   her
husband   Odo   Nagappa   was   Stridhana   property
and by virtue of Section 11 of the said Act
the   aforesaid   person   i.e.   Rangamma   became
the   absolute   owner   of   such   property   with
unrestricted   powers   of   enjoyment   and
disposition.     If   that   is   so,   she   was
undoubtedly   competent   to   execute   the   gift
deeds   in   question   dated   9 th
  April,   1954   by
virtue   of   which   Muddamma   became   the
absolute   owner   of   half   of   that   property.
On   her   death   (i.e.   Muddamma�s   death)   i.e.
on   7 th
  May,   1997   her   husband   Rangappa   @
Bodappa would become the absolute owner and
would,   therefore,   be   competent   to   transfer
the   property   by   way   of   sale   deed   in   favour
of   the   appellant   -   Sri   Rangappa   s/o
Kurilingappa.
7. The   provisions   of   Section   15(2)(a)
of the Hindu Succession Act, 1956 which has

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been   invoked   by   the   High   Court   to   reverse
the   decree   in   question,   in   our   considered
view, was not at all applicable inasmuch as
Section   15(2)(a)   of   the   Hindu   Succession
Act, 1956 deals with the line of succession
in   case   of   property   inherited   by   a   female
Hindu.     In   the   present   case,   Muddamma   had
not inherited any property but what she had
acquired   is   an   absolute   right   to   the   suit
property   by   way   of   the   gift   deed   dated   9 th
April,   1954.     On   her   death,   the   property
would,   therefore,   not   vest   in   terms   of
Section   15(2)(a)   of   the   Hindu   Succession
Act,   1956   but   would   go   to   her   husband   who
would   be   competent   to   transfer   the   same   in
favour of the present appellant.
8. On the aforesaid basis, we find the
order   of   the   High   Court   to   be   flawed   and,
accordingly,   liable   to   be   set   aside   which
we   hereby   do.     The   decree   passed   by   the

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learned   trial   Court   as   affirmed   by   the
First   Appellate   Court   is   restored.   The
appeals are accordingly allowed. 

....................,J.
(RANJAN GOGOI)
...................,J.
   ( NAVIN SINHA )
...................,J.
   ( VINEET SARAN )
NEW DELHI
AUGUST 07, 2018

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ITEM NO.8               COURT NO.2               SECTION IV-A
               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS
PETITION(S)   FOR   SPECIAL   LEAVE   TO   APPEAL   (C)     NO(S).     24201-
24202/2014
(ARISING OUT OF IMPUGNED FINAL JUDGMENT AND ORDER DATED  20-12-2013
IN   RSA   NO.   25/2009   C/W   26/2009   PASSED   BY   THE   HIGH   COURT   OF
KARNATAKA AT BENGALURU)
RANGAPPA                                           PETITIONER(S)
                                VERSUS
THIPPESWAMY & ANR.                                 RESPONDENT(S)
Date : 07-08-2018 These petitions were called on for hearing today.
CORAM :  HON'BLE MR. JUSTICE RANJAN GOGOI
         HON'BLE MR. JUSTICE NAVIN SINHA
         HON'BLE MR. JUSTICE VINEET SARAN
For Petitioner(s) Mr. Manjunath Meled, Adv.
Ms. Vijayalaxmi, Adv.
                     Mr. Anil Kumar, AOR
                 
For Respondent(s) Mr. Ashwin V. Kotemath, Adv.
Ms. Christi Jain, Adv.
Ms. Kanika, Adv.
Ms. Priyal Jain, Adv.
Mr. Harsh Jain, Adv.
                     Mrs. S. Usha Reddy, AOR
                 
          UPON hearing the counsel the Court made the following
                             O R D E R
The   appeals   are   allowed   in   terms   of   the   signed
order.
[VINOD LAKHINA] [ASHA SONI]
AR-cum-PS BRANCH OFFICER
[SIGNED ORDER IS PLACED ON THE FILE]


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INTHESUPREMECOURTOFINDIA
CIVILAPPELLATEJURISDICTION
CIVILAPPEALNO(S).80768077OF2018
[ARISINGOUTOFSLP(C)NO.2420124202OF2014]
RANGAPPA ...APPELLANT(S)
VERSUS
THIPPESWAMY&ORS. ...RESPONDENT(S)
ORDER
1. In  the  order  dated  7 th  August,  2018  deciding  Civil  Appeal
Nos.8076 8077of 2018 arising out of Special Leave Petition(Civil)No.
24201 24202  of  2014,  it  has  been  recorded,  while  answering  the
question  set out  in  para  5  of  the  order,  that  after  the  death  of  Odo
Nagappa the property became the absolute property of Rangamma by
virtue  of  Section  10  read  with  Section  11  of  the  Mysore  Hindu  Law
WomensRightsAct,1933.
2. The  aforesaid  conclusions,  on  suo moto  reconsideration  by
us,does not appear to be correct as Rangamma was not an absolute
but a limited owner as at the time of death of Odo Nagappa (husband
of  Rangamma)  two  daughters  i.e.  Nagamma  and  Muddamma  were
alive.

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3. Theorderdated7 th August,2018 is accordingly corrected.
4. However,�the�above�correction�will not lead to any change in
the�eventual�conclusion�recorded�in�the�order �dated�7 th
� August,�2018
as  the  gift  deeds  by  Rangamma  were  infact  so  made  to  her  two
daughtersandthattoowaybackintheyear1954which�gifts�has�not
been � challenged � by � either � the � second � daughter � Muddamma � or � her
legal�heirs�at�any�point�of�time.�
5. The�order�dated�7 th
�August,�2018�is�accordingly�corrected�to
the�above�extent.
��������.,�J.
�[RANJAN�GOGOI]
��������.,�J.
�[NAVIN�SINHA]
��������.,�J.
�[VINEET�SARAN]
NEW�DELHI
AUGUST�21,��2018
2

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ITEM NO.801               IN CHAMBERS               SECTION IV-A
               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS
CIVIL APPEAL  NO(S).  8076-8077/2018
RANGAPPA                                           APPELLANT(S)
                                VERSUS
THIPPESWAMY & ANR.                                 RESPONDENT(S)

Date : 21-08-2018 These appeals were taken up in Chambers today.
CORAM : 
         HON'BLE MR. JUSTICE RANJAN GOGOI
         HON'BLE MR. JUSTICE NAVIN SINHA
         HON'BLE MR. JUSTICE VINEET SARAN
The Court made the following
                             O R D E R
The   order   dated   7 th
  August,   2018   passed   in   Civil
Appeal   Nos.   8076-8077   of   2018   (@   SLP(C)   Nos.   24201-24202
of 2014) is corrected in terms of the signed order.
[VINOD LAKHINA] [ASHA SONI]
AR-cum-PS BRANCH OFFICER
[SIGNED ORDER IS PLACED ON THE FILE] 

Suit for declaration of title and recovery of possession in respect of the suit house . The suit was decreed by the Trial Court in favour of the plaintiffs. - High court reversed the same and held that the defendants have perfected their title by way of adverse possession basing upon certain paid tax receipts and khatian extracts. Apex court held that We fail to comprehend why the law should place premium on dishonesty by legitimising possession of a rank trespasser and compelling the owner to lose his possession only because of his inaction in taking back the possession within limitation. In our considered view, there is an urgent need of fresh look regarding the law on adverse possession. We recommend the Union of India to seriously consider and make suitable changes in the law of adverse possession - we find that there is no absolute requirement to deem the mere possession of the suit property by the defendants to amount to adverse possession over the suit property. This would be in clear violation of the basic rights of the actual owner of the property. There is nothing on record to show that the defendants� permissive possession over the property became adverse to the interest of the real owner, at any point of time. On the contrary, the records reveal that the permissive possession of the defendants continued till the filing of the suit. The defendants have relied upon certain paid tax receipts and khatian extracts. The Trial Court has, on facts, specifically found that these documents do not disclose the khatian and plot number, and even the tax receipts do not relate to the suit house. Also, the chaukidari receipts (A1 to A16) do not contain the khatian of the suit house. These receipts have been unfortunately believed to prove that the defendants are in adverse possession of the disputed land. Even assuming that those documents relate to the suit house, they, at the most, depict the possession of the defendants and not their adverse possession. Having regard to the totality of the facts, in our considered opinion, the First Appellate Court as well as the High Court are not justified in arriving at the conclusion that the contesting defendants have perfected their title by adverse possession. In view of the same, the judgment of the High Court as also the judgment of the 9 th Additional District Judge, Bhojpur at Arrah are set aside. The judgments of the Trial Court is restored. Appeal is allowed accordingly.




Hon'ble Mr. Justice N.V. Ramana
1
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.7266 OF 2013
RAM NAGINA RAI & ANR.     ..APPELLANTS
VERSUS
DEO KUMAR RAI (DECEASED) BY LRS.
& ANR.                              ..RESPONDENTS
O R D E R
This   appeal   is   directed   against   the   judgment   and   order   dated
17.10.2003,   passed  by   the   learned   Single   Judge   of   the   High   Court   of
Judicature   at   Patna   in   Second   Appeal 
No.   403   of   1998.   By   the   impugned   judgment,   the   High   Court
confirmed   the   judgment   and   decree   dated   30.06.1998   passed   by   the
9 th
  Additional   District   Judge,   Bhojpur   at   Arrah   in   Title   Appeal
No.26/97.
2. The records reveal that the appellants being the plaintiffs in Title
Suit No. 64/89 in  the  court of  Munsif III,  Arrah  (Bhojpur) filed  a  suit
for declaration of title and recovery of possession in respect of the suit
house situated over new Plot No. 2909 under new Khata No. 699, area
measuring 10 decimals. The suit came to be decreed by the Trial Court
in favour of the plaintiffs. The contesting defendants filed Title Appeal
No.   26/97  9 th
  before  the   Additional  District  Judge,   Bhojpur   at   Arrah,

2
which   came   to   be   allowed,   setting   aside   the   judgment   of   the   Trial
Court;  consequently,  the suit of  the appellants  herein was dismissed.
The   judgment   of   the   District   Court,   i.e.   the   First   Appellate   Court,
dated  30.06.1998  was  confirmed  by   the   High  Court  in  second   appeal
on   17.10.2003.     Thus,   the   unsuccessful   plaintiffs   are   before   us
questioning   the   judgment   of   the   High   Court   as   well   as   the   First
Appellate Court.
3. The case of the plaintiffs is that the disputed house was in their
ownership and the   khata   of the property was recorded in the name of
their   ancestor.   Since   the   defendants�   ancestor   was   on   friendly   terms
with   the   plantiffs�   ancestor,   and   as   plaintiffs�   ancestor   was   in   a
different  place   for   business,   the   defendants  were  permitted to   occupy
the   disputed   house.   The   defendants   got   khatian   changed   without
notice to the plaintiffs, showing  the defendants to be in possession of
the   disputed   house.   Since   the   defendants   did   not   hand   over
possession  of   the  property   to  the  plaintiffs,   despite  many   requests  by
the plaintiffs, the suit came to be filed.
The case of the contesting defendants is that they are the owners
in possession of the suit house even prior to 1953. Their ancestor, viz.
Sheomuni   Rai,   had   friendly   relations   with   the   plaintiffs�   grandfather,
Pitambar   Rai.   At   the   time   of   the   revision   survey,   the   concerned
authorities having found that the defendants are in possession of  the

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property,   R.S. Khatian   was prepared in their names.   R.S. Khatian   was
finally published in the year 1970, but the plaintiff filed the Title Suit
only   19  years  after   its   final   publication   and   hence,   the   suit   is   barred
by   limitation.   It   is   further   the   case   of   the   defendants   that   they   have
become   owners   of   the   property   by   virtue   of   their   adverse   possession
over the suit property. In other words, the defendants contended that
they   had   perfected   the   title   by   adverse   possession   and   therefore   the
plaintiffs   are   not   entitled   to   recover   the   possession   of   the   suit   house
from the defendants.
4.  The   only   question   to   be   decided   in   this   appeal   is,   whether   the
First Appellate Court and the High Court were justified in concluding
that the defendants have perfected the title by adverse possession over
the   suit   property.   Heard   the   arguments   on   both   the   sides,   and
perused the records at hand.
5.  At the  outset,  it  is relevant to  mention that  the  defendants  have
not   produced   any   document   to   show   that   they   are   the   owners   of   the
suit property by purchasing the same or by acquiring the same by any
mode   of   transfer.   Also,   there   is   nothing   on   record   to   show   that   the
property   in   question   is   the   ancestral   property   of   the   defendants.
However, alternative case of the defendants that the plaintiffs were the
owners   of   the   property   and   had   permitted   the   defendants�   ancestor
and thereafter, the defendants to be in possession of the property.   In

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other words, the defendants do admit that the plaintiffs are the owners
of the property. But the sole contention of the contesting defendants is
that  they have perfected the  title by adverse possession, and that the
suit   to   claim   possession   of   the   suit   property   is   beyond   the   period   of
limitation.   The   plaintiffs   do   admit   that   the   defendants   are   in
permissive possession of the property, but claim that k hatian  changed
in the name of defendants was without notice to the plaintiffs and the
same cannot be relied upon. It is the specific case of the plaintiffs that
the   defendants   have   not   perfected   the   title   by   virtue   of   adverse
possession.
6.     Since   the   contesting   defendants   have   raised   a   plea   of   adverse
possession,   the  burden  is on  them   to  prove   affirmatively  that  the  bar
of   limitation   prescribed   under   Article   65   of   the   Schedule   of   the
Limitation Act, 1963, viz., 12 years, is applicable in the matter to file a
suit   for   possession   of   immovable   property   based   on   title.   The
limitation   of   12   years   begins   when   the   possession   of   the   defendants
would   become   adverse   to   that   of   the   plaintiffs.   Thus,   it   is   incumbent
on the plaintiffs to file a suit for possession within 12 years from when
the   possession   of   the   defendants   becomes   adverse   to   the   plaintiffs.
Article 65 presupposes that the limitation starts only if the defendants
prove the factum of adverse possession affirmatively from a particular
time.   Adverse   possession   means   a   hostile   assertion,   i.e.   a   possession

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which is expressly or impliedly in denial of the title of the true owner.
The   person   who   bases  his  title   on   adverse   possession   must  show,   by
clear and unequivocal evidence, that the possession was hostile to the
real   owner   and   it   amounted   to   the   denial   of   his   title   to   the   property
claimed. In deciding whether the acts alleged by the person constitute
adverse possession, regard must be given to the animus of the person
doing   such   acts,   which   must   be   ascertained   from   the   facts   and
circumstances   of   each   case.   It   is   needless   to   observe   that   where   the
possession can be referred to a lawful title, it would not be considered
to be adverse, the reason being that the person whose possession can
be   drawn   to   a   lawful   title,   will   not   be   permitted   to   show   that   his
possession   was   hostile   to   another�s   title.   Simply   put,   one   who   holds
possession on behalf of another, does not by mere denial of the other�s
title,   make  his  possession  adverse  so  as  to  give   himself   the  benefit  of
the statute of limitation.
7.     In   the   matter   on   hand,   though   the   defendants   have   pleaded   that
they are the owners of the property, it seems that during the course of
the   trial,   they   have   given   up   this   contention,   inasmuch   as   they   have
only concentrated on the contention that they have perfected the title
by   adverse   possession.   All   through,   as   is   evident   from   the   material
evidence on record and their contentions, the defendants have tried to
show that they have been in continuous possession of the property for

6
more   than   60   years.   But   there   is   no   iota   of   evidence   to   show   as   to
when the defendants� possession in fact became adverse to the interest
of the plaintiff. Except for the change of k hatian   sometime in the year
1970   by   the   defendants   and   the   payment   of   taxes   for   being   in
possession   of   property,   no   material   is   produced   by   the   defendants   to
show   whether   the   possession   was   really   hostile   to   the   actual   owner.
There is absolutely nothing on record to show that there was a hostile
assertion   by   the   defendants.   We   do   not   find   that   the   defendants   had
hostile animus at any point of time, from the facts and circumstances
of   this   case.   The   defendants   denied   the   title   of   the   plaintiffs   over   the
suit   property   only   when   the   suit   came   to   be   filed,   inasmuch   as   the
defendants   have   taken   such   a   contention   for   the   first   time   in   their
written statements.
8. The   non-use   of   the   property   by   the   owner   even   for   a   long   time
may   affect   the   title   of   the   owner   under   certain   circumstances.   The
acquisition   of   title   by   adverse   possession   springs   into   action
essentially   by   default   or   inaction   of   the   owner.   There   is   a   lot   of
difference   between   simple   possession   and   adverse   possession.   Every
possession is not adverse possession. The defendants will not acquire
adverse   possession   by   simply   remaining   in   permissive   possession   for
howsoever long it may be.
9. Until   the   defendants�   possession   becomes   adverse   to   that   of   the

7
real   owner,   the   defendants   continue   in   permissive   possession   of   the
property.   Only   if   the   defendants�   possession   becomes   adverse   to   the
interest   of   the   real   owner   and   the   real   owner   fails   to   file   the   suit   for
possession   within   12   years,   as   prescribed   under   Article   65   of   the
Limitation   Act,   from   the   point   of   time   the   possession   by   the
defendants becomes adverse to the plaintiffs, the real owner loses his
title over the property.
The   defendants   are   not   only   required   to   prove   that   they   have
been   in   possession   of   the   suit   property   continuously   and
uninterruptedly,   but   also   need   to   prove,   by   cogent   and   convincing
evidence,   that   there   is   hostile   animus   and   possession   adverse   to   the
knowledge of the real owner.
10. This Court, while discussing the law relating to adverse possession
in  P.T. Munichikkanna Reddy and Ors. v. Revamma and Ors, 1
 held that,
to   assess   a   claim   of   adverse   possession,   a   two-pronged   enquiry   is
required;  viz.  application  of  the  limitation  provisions,  and  the  specific
positive intention to dispossess on the part of the adverse possessor.
In  Thakur Kishan Singh v. Arvind Kumar, 2
 this Court held:
�5.   As   regards   adverse   possession,   it   was   not   disputed   even   by
the trial court that the appellant entered into possession over the
land in dispute under a licence from the respondent for purposes
of   brick-kiln.   The   possession   thus   initially   being   permissive,   the
burden   was   heavy   on   the   appellant   to   establish   that   it   became
1  (2007) 6 SCC 59 p. 68 para 8
2  (1994) 6 SCC 591 p. 594, para 5

8
adverse.   A   possession   of   a   co-owner   or   of   a   licensee   or   of   an
agent   or   a   permissive   possession   to   become   adverse   must   be
established   by   cogent   and   convincing   evidence   to   show   hostile
animus   and   possession   adverse   to   the   knowledge   of   real   owner.
Mere   possession   for   howsoever   length   of   time   does   not   result   in
converting   the   permissive   possession   into   adverse   possession.
Apart   from   it,   the   appellate   court   has   gone   into   detail   and   after
considering   the   evidence   on   record   found   it   as   a   fact   that   the
possession of the appellant was not adverse. �
(emphasis supplied)
Talking   about   the   concept   of   intention   to   dispossess,   the   case   of
Powell   v.   McFarlane, 3
  was   used   as   guidance   in   P.T.   Munichikkanna
Reddy and Ors. v. Revamma and Ors  (supra) ,  wherein it is stated thus:
�18.   On   intention,   Powell   v.   McFarlane   is   quite   illustrative   and
categorical, holding in the following terms:
"If the law is to attribute possession of land to a person
who can establish no paper title to possession,   he must
be   shown   to   have   both   factual   possession   and   the
requisite intention to possess ('animus possidendi') .
xxx
If   his   acts   are   open   to   more   than   one   interpretation   and
he has not made it perfectly plain to the world at large by
his actions or words that he has intended to exclude the
owner   as   best  he   can,   the   courts   will   treat   him   as   not
having   had   the   requisite   animus   possidendi   and
consequently as not having dispossessed the owner. 
xxx
In my judgment it is consistent with principle as well as
authority that a person who originally entered another's
land as a trespasser,  but later seeks to show that he has
dispossessed   the   owner,   should   be   required   to   adduce
compelling   evidence   that   he   had   the   requisite   animus
possidendi   in   any   case   where   his   use   of   the   land   was
equivocal,   in   the   sense   that   it   did   not   necessarily,   by
itself,   betoken   an   intention   on   his   part  to   claim   the   land
as his own and exclude the true owner . 
xxx
What   is   really   meant,   in   my   judgment,   is   that   the
animus   possidendi   involves   the   intention,   in   one's   own
3  (1977) 38 P & CR (Property, Planning and Compensation Reports) 452

9
name   and   on   one's   own   behalf,   to   exclude   the   world   at
large, including the owner with the paper title if he be not
himself the possessor, so far as is reasonably practicable
and so far as the processes of the law will allow. "
19. Thus, there must be intention to dispossess. And it needs to
be   open  and  hostile  enough   to  bring   the   same  to  the   knowledge
and   plaintiff   has   an   opportunity   to   object.   After   all   adverse
possession   right   is   not   a   substantive   right   but   a   result   of   the
waiving   (willful)   or   omission   (negligent   or   otherwise)   of   right   to
defend   or   care   for   the   integrity   of   property   on   the   part   of   the
paper  owner   of  the   land.   Adverse  possession  statutes,  like   other
statutes of limitation, rest on a public policy that do not promote
litigation   and   aims   at   the   repose   of   conditions   that   the   parties
have   suffered   to   remain   unquestioned   long   enough   to   indicate
their acquiescence.�
(emphasis in original)
11.  Thus,   it   is   important   to   assess   whether   such   intention   to
dispossess is apparent to the actual owner or not. The intention of the
adverse   user   must   be   communicated   atleast   impliedly   to   the   actual
owner   of   the   property.   His   hostile   attitude   should   be   open   to   the
knowledge   of   the   real   owner.   It   follows   that   the   intention   and
possession   of   the   adverse   possessor   must   be   hostile   enough   to   give
rise to a reasonable notice to the actual owner.
12.  Applying   the   test   of   nec   vi,   nec   clam,   nec   precario   i.e.,   'without
force,   without   secrecy,   without   permission '   as   an   established   test   for
finding   adverse   possession,   we   find   that   the   defendants   have   not
proved   their   possession   to   be   adverse   to   that   of   the   real   owner
inasmuch   as   they   entered   into   possession   as   licensees   to   begin   with
and   there   is   nothing   on   record   to   show   as   to   when   the   permissive

10
possession   became   adverse   to   the   interest   of   the   real  owner.   � Animus
possidendi � is one of the ingredients of adverse possession, and unless
the   person   possessing   the   property   has   the   requisite   hostile   animus,
the   period   of   prescription   does   not   commence.   Virtually,   the
defendants   are   required   to   prove   the   possession   to   be   adequate   in
continuity,   adequate   in   publicity   and   to   adequately   show   that   their
possession   is   adverse   to   that   of   the   true   owner.   It   must   start   with
wrongful   dispossession   of   the   rightful   owner   and   be   actual,   visible,
exclusive, hostile and continued over the statutory period.
The physical fact of exclusion, possession and  animus possidendi
to   hold   as   owner,   in   exclusion   to   the   actual   owner,   are   the   most
important factors to prove adverse possession.
A   person   pleading   adverse   possession   has   no   equities   in   his
favour. Since he is trying to take away the rights of the true owner, it
is   for   him   to   clearly   plead   and   establish   all   the   facts   necessary   to
establish his adverse possession.
13.  It is an established position of law that insofar as Articles 64 and
65   of   the   Limitation   Act   are   concerned,   once   a   party   proves   its   title,
the onus of proof would be on the other party to prove the claim of title
by   adverse   possession.   In   this   case,   it   is   an   admitted   fact   that   the
ownership   of   the   said   suit   property   rests   with   the   plaintiffs.   In   this
given scenario, it is our considered view that the defendants have not

11
proved the onus of adverse possession against the plaintiffs.
14. This   court   in   the   case   of   Hemaji   Waghaji   vs.   Bhikhabhai
Khengarbhai and  Ors. , 4
  has  opined  that   there  is  an  urgent  need  for   a
fresh look regarding the law on adverse possession by observing thus :
" 32 .   Before parting with this case, we deem it appropriate to
observe   that   the   law   of   adverse   possession   which   ousts   an
owner on the basis of inaction within limitation is irrational,
illogical   and   wholly   disproportionate.   The   law   as   it   exists   is
extremely   harsh   for   the   true   owner   and   a   windfall   for   a
dishonest   person   who   had   illegally   taken   possession   of   the
property   of   the   true   owner.   The   law   ought   not   to   benefit   a
person who in a clandestine manner takes possession of the
property   of   the   owner   in   contravention   of   law.   This   in
substance would mean that the law gives seal of approval to
the illegal action or activities of a rank trespasser or who had
wrongfully   taken   possession   of   the   property   of   the   true
owner.
33.   We   fail   to   comprehend   why   the   law   should   place
premium   on  dishonesty  by   legitimising  possession  of   a  rank
trespasser   and   compelling   the   owner   to   lose   his   possession
only   because   of   his   inaction   in   taking   back   the   possession
within limitation.
36.   In  our   considered  view,   there   is   an   urgent   need  of   fresh
look   regarding   the   law   on   adverse   possession.   We
recommend   the   Union   of   India   to   seriously   consider   and
make suitable changes in the law of adverse possession.�
This aforementioned observation was reiterated by this Court in a
subsequent judgment of   State of  Haryana v. Mukesh Kumar,   5 
wherein
the Court   observed that the law of adverse possession needs a re-look,
holding   the   right   to   property   to   be     a   human   right,   in   addition   to   it
being a constitutional or a statutory right.
4  (2009) 16 SCC 517
5  (2011) 10 SCC 404

12
15.  In light of the above observations of this Court, we find that there
is   no   absolute   requirement   to   deem   the   mere   possession   of   the   suit
property  by  the  defendants  to  amount to  adverse possession  over   the
suit property. This would be in clear violation of the basic rights of the
actual owner of the property.   There is nothing on record to show that
the   defendants�   permissive   possession   over   the   property   became
adverse to the interest of the real owner, at any point of time. On the
contrary,   the   records   reveal   that   the   permissive   possession   of   the
defendants continued till the filing of the suit.  
16.     The   defendants   have   relied   upon   certain   paid   tax   receipts   and
khatian   extracts. The Trial Court has, on facts, specifically found that
these   documents   do   not   disclose   the   khatian   and   plot   number,   and
even   the   tax   receipts   do   not   relate   to   the   suit   house.   Also,   the
chaukidari   receipts  (A1  to   A16)  do  not   contain   the   khatian   of   the   suit
house.   These   receipts   have   been   unfortunately   believed   to   prove   that
the  defendants  are  in  adverse   possession   of   the   disputed  land.     Even
assuming   that   those  documents  relate  to   the   suit  house,   they,   at  the
most,   depict   the   possession   of   the   defendants   and   not   their   adverse
possession. 
17.   Having   regard   to   the   totality   of   the   facts,   in   our   considered
opinion,   the   First   Appellate   Court   as   well   as   the   High   Court   are   not
justified   in   arriving   at   the   conclusion   that   the   contesting   defendants

13
have   perfected   their   title   by   adverse   possession.   In   view   of   the   same,
the   judgment   of   the   High   Court   as   also   the   judgment   of   the   9 th
Additional District Judge, Bhojpur at Arrah are set aside.
18.  The   judgments   of   the   Trial   Court   i.e.   the   Court   of   Munsif   III,
Arrah   (Bhojpur)   in   Title   Suit   No.64/89   is   restored.   Appeal   is   allowed
accordingly. 
                                       ..������������..��.J.
                    [N.V. RAMANA]
 
      ..���������������.J.
                                     [MOHAN M. SHANTANAGOUDAR]
NEW DELHI;
AUGUST 21, 2018.

14
ITEM NO.104               COURT NO.7               SECTION XVI
               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS
Civil Appeal  No(s).  7266/2013
RAM NAGINA RAI & ANR.                              Appellant(s)
                                VERSUS
DEO KUMAR RAI (D) BY LRS. & ANR.                   Respondent(s)
Date : 21-08-2018 This appeal was called on for hearing today.
CORAM :
         HON'BLE MR. JUSTICE N.V. RAMANA
         HON'BLE MR. JUSTICE MOHAN M. SHANTANAGOUDAR
For Appellant(s)
Mr. Dhruv Paul, Adv.
                    Mr. Ranjan Mukherjee, AOR (Not present)
                 
For Respondent(s)
Mr. Vijay Kumar, Adv.
Mr. Thomas O., Adv.
                    For Mr. Vishwajit Singh, AOR
                   
          UPON hearing the counsel the Court made the following
                             O R D E R
This appeal is allowed in terms of the signed order.
(SUKHBIR PAUL KAUR)                             (RAJ RANI NEGI)
     AR CUM PS                                ASSISTANT  REGISTRAR
   (Signed order is placed on the file) 

Or.1 rule 10 CPC- The Respondent Nos. 1 to 4 filed the suit for declaration of title and recovery of possession in the year 2002 - The appellants herein, claimed that they have purchased the suit property by two sale deeds for valuable consideration from respondent nos. 1 to 4 -plaintiffs in the year 2012- pending the suit. -The appellants herein filed interlocutory application to implead themselves on the basis of their sale deeds -Respondent Nos 5 6, the defendants in the suit resisted the application contending that the sale deeds are fraudulent since respondent nos. 1 to 4-plaintiffs themselves do not have the title and they themselves are seeking for declaration of the title.- Trail court dismissed the same on the ground that they are subsequent purchasers and not bonafide purchasers and if they were impleaded, it can be presumed that the plaintiffs title was accepted -the High Court which again came to be dismissed - Apex court held that No doubt respondent nos. 1 to 4 - plaintiffs have filed the suit for declaration of their title alleging that their title is disputed and that cannot in any way be an impediment for the appellants who are the subsequent purchasers, for being impleaded. whether the purchase by the appellants is bona fide or not is to be agitated only at the time of the trial after the parties adduce oral and documentary evidence. Since the appellants have purchased the suit property after the filing of the suit, in order to have an effective adjudication and also to afford opportunity to the appellants, the impleading application is to be allowed - set aside the orders both courts and allowed the petition.


Hon'ble Mrs. Justice R. Banumathi 
                                                            1


                                          IN THE SUPREME COURT OF INDIA

                                          CIVIL APPELLATE JURISDICTION



                                   CIVIL APPEAL NOs. 10192-10195   OF 2018
                         (@ SPECIAL LEAVE PETITION (CIVIL) NO. 31814-31817 OF 2015)



     B. FATHIMA BEEVI AND ANOTHER                                                       ...APPELLANT(S)


                                                            VERSUS


     SORNAMMAL @ SORNAM (DEAD) TH.LRS.AND OTHERS                                        ...RESPONDENT(S)



                                                   O R D E R



                      1.      Leave granted.

                      2.      Civil Appeal No. 10192 of 2018 @ S.L.P.(Civil) No. 31814

                      of 2015 has been preferred against the order of the Madras

                      High Court (Madurai Bench) in and by which the High Court

                      affirmed      the    order     of    the        Trial     Court      dismissing    the

                      application for impleading the applicant herein.

                      3.      The   Respondent       Nos.        1    to    4   filed      the   suit   for

                      declaration of title and recovery of possession in the year

                      2002.    The appellants herein, namely, B. Fathima Beevi and M.

                      Kabir    Mohammed     claimed       that       they   have    purchased    the    suit
Signature Not Verified
                      property by two sale deeds dated 09.03.2012 and 14.03.2012
Digitally signed by
MADHU BALA
Date: 2018.12.15
11:12:52 IST
Reason:               for valuable consideration from respondent nos. 1 to 4 -

                      plaintiffs.         The   appellants            herein       filed     interlocutory
                                            2

application being 630 of 2014 to implead themselves on the

basis    of     their     sale    deeds.         Respondent          Nos.       5   &    6,   the

defendants in the suit resisted the application contending

that the sale deeds are fraudulent since respondent nos. 1 to

4-plaintiffs        themselves         do       not    have      the      title      and      they

themselves are seeking for declaration of the title.

4.      The Trial Court dismissed the impleading application on

the ground that respondent nos. 1 to 4 -plaintiffs have filed

the suit way back in the year 2002 for declaration and for

recovery of possession. The Trial Court further held that the

suit property is in dispute right from the year 1995 and,

therefore, the appellants-herein cannot be said to be bona

fide    purchaser.        The    Trial      Court      held        that    impleading          the

appellants      herein     would       amount         to   (i)     presumption           of    the

plaintiffs title; and (ii) the appellants herein might set up

a plea of bona fide purchase.

5.      Being    aggrieved        by     the      dismissal         of     the      impleading

application,        the    appellants           have       filed        Revision        Petition

before the High Court which again came to be dismissed as

aforesaid.

6.      We have heard Mr. V. Prabhakar, learned counsel for the

appellants as well as Mr. Antony R. Julian, learned counsel

appearing     for    the    respondent           nos.      5   &    6     and    taking       into

account the impugned judgment and materials on record.

7.      No doubt respondent nos. 1 to 4 - plaintiffs have filed

the suit for declaration of their title alleging that their

title is disputed and that cannot in any way be an impediment
                                          3

for the appellants who are the subsequent purchasers, for

being    impleaded.          Learned    counsel    for    respondent       nos.    5-6

submitted that the appellants herein are not the bona fide

purchasers and they knowingly purchased the litigation. The

merits       of    this      contention       whether    the    purchase     by    the

appellants is bona fide or not is to be agitated only at the

time     of       the    trial   after    the     parties       adduce     oral    and

documentary evidence. Since the appellants have purchased the

suit property after the filing of the suit, in order to have

an effective adjudication and also to afford opportunity to

the appellants, the impleading application i.e. I.A. No. 630

of 2014 is to be allowed and the appeal arising out of the

SLP(C)No. 31814 of 2015 is to be allowed.

8.      Insofar         as   appeals   arising     out    of    SLP(C)Nos.    31815,

31816 and 31817 of 2015                - application filed for change of

Commissioner,           application       for     temporary          injunction    and

application for appointment of a receiver, in view of the

concurrent findings recorded by the Trial Court as well as by

the High Court, we are not inclined to interfere with those

orders. The appeals arising out                  SLP(C)Nos. 31815, 31816 and

31817 of 2015 are, accordingly, dismissed.

9.      The impugned order of the High court (insofar as it

arises out of I.A. No. 630/2014) in C.R.P. No. 1088 of 2015 is

set aside and the appeal arising out of SLP(C)No. 31814 of

2015    is    allowed.        After    impleadment       of    the    appellants    as

plaintiffs, the defendants shall file their additional written

statement, if any, within a period of four weeks from today
                                     4

   and   the   appellants   are   permitted    to   file   their   rejoinder

   within four weeks thereafter.


                                              �.......................J.
                                              [R. BANUMATHI]


                                              �......................J.
                                              [INDIRA BANERJEE]
NEW DELHI
3RD OCTOBER, 2018
                                   5

                                                         REVISED
ITEM NO.10                 COURT NO.10                SECTION XII

               S U P R E M E C O U R T O F       I N D I A
                       RECORD OF PROCEEDINGS

Petition(s) for Special Leave to Appeal(C)No(s). 31814-31817/2015
(Arising out of impugned final judgment and order dated 12-06-2015
in CRPMD No. 1088/2015    CRPMD No. 1089/2015   CRPMD No. 1090/2015
CRPMD No. 1091/2015 passed by the High Court Of Judicature At
Madras At Madurai)

B. FATHIMA BEEVI AND ANOTHER                          Petitioner(s)

                                  VERSUS

SORNAMMAL @ SORNAM (DEAD) TH. LRS.AND OTHERS             Respondent(s)
(Application for exemption from filing O.T.)

Date : 03-10-2018 These petitions were called on for hearing today.

CORAM :
          HONBLE MRS. JUSTICE R. BANUMATHI
          HONBLE MS. JUSTICE INDIRA BANERJEE

For Petitioner(s)   Mr.   V. Prabhakar,Adv.
                    Ms.   Jyoti Parashar,Adv.
                    Mr.   N.J. Ramchandar,Adv.
                    Mr.   S. Rajappa, AOR

For Respondent(s)   Mr. Antony R. Julian,Adv.
                    Mr. Danish Zubair Khan, AOR

          UPON hearing the counsel the Court made the following
                             O R D E R
          Leave granted.

          The appeal arising out of SLP(C)No. 31814 of 2015 is

allowed and the appeals arising out        SLP(C)Nos. 31815, 31816 and

31817 of 2015 are, accordingly, dismissed in terms of the signed

order.

          Pending application(s), if any, shall also stand disposed

of.

(MADHU BALA)                             (PARVEEN KUMARI PASRICHA)
COURT MASTER (SH)                                  BRANCH OFFICER
(Corrected signed order is placed on the file)
                                   6

ITEM NO.10                 COURT NO.10                SECTION XII

               S U P R E M E C O U R T O F       I N D I A
                       RECORD OF PROCEEDINGS

Petition(s) for Special Leave to Appeal(C)No(s). 31814-31817/2015
(Arising out of impugned final judgment and order dated 12-06-2015
in CRPMD No. 1088/2015    CRPMD No. 1089/2015   CRPMD No. 1090/2015
CRPMD No. 1091/2015 passed by the High Court Of Judicature At
Madras At Madurai)

B. FATHIMA BEEVI AND ANOTHER                          Petitioner(s)

                                  VERSUS

SORNAMMAL @ SORNAM (DEAD) TH. LRS.AND OTHERS             Respondent(s)
(Application for exemption from filing O.T.)

Date : 03-10-2018 These petitions were called on for hearing today.

CORAM :
          HONBLE MRS. JUSTICE R. BANUMATHI
          HONBLE MS. JUSTICE INDIRA BANERJEE

For Petitioner(s)   Mr.   V. Prabhakar,Adv.
                    Ms.   Jyoti Parashar,Adv.
                    Mr.   N.J. Ramchandar,Adv.
                    Mr.   S. Rajappa, AOR

For Respondent(s)   Mr. Antony R. Julian,Adv.
                    Mr. Danish Zubair Khan, AOR

          UPON hearing the counsel the Court made the following
                             O R D E R

          Leave granted.

          The appeal arising out of SLP(C)No. 31814 of 2015 is

allowed and the appeals arising out        SLP(C)Nos. 31815, 31816 and

31817 of 2015 are, accordingly, dismissed in terms of the signed

order.

          Pending application(s), if any, shall also stand disposed

of.

(MADHU BALA)                                (PARVEEN KUMARI PASRICHA)
COURT MASTER (SH)                                     BRANCH OFFICER
(Signed order is placed on the file)
 

Monday, December 17, 2018

Whether the owner of the vehicle despite the sale of the vehicle on ,to the third party ,but no transfer of ownership, in accordance with Section 50 of the Motor Vehicles Act,1988 (‘the Act’ for short) and was continued to be the owner in terms of definition as incorporated in Section 2(30) of the Act and as such was laible to pay compensation if any accident was occured while the Vehicle was in the hands of thrid party ? Accident claim - appellant sold his vehicle to the respondent No.2 but ownership not transferred with in 30 days as per sec.50 of M.V. Act -in the meanwhile accident was occured - victim filed MVOP for compensation -Trai court awarded Rs.12 lakhs holding jont liability on Appellant and Respondent No.2's driver -The High Court found that despite the sale of the vehicle on 11.09.2009, no transfer of ownership, in accordance with Section 50 of the Motor Vehicles Act,1988 (‘the Act’ for short) was effected and as such the appellant continued to be the owner in terms of definition as incorporated in Section 2(30) of the Act. Relying on the decision of this Court in Naveen Kumar vs. Vijay Kumar and others1 the High Court concluded as under. “Applying the ratio of the above said judgment to the facts of the present case, the award stands modified to the above extent that the Insurance Company is liable to make the compensation to the claimant and theInsurance Company will have the recovery rights to 1 (2018) 3 SCC 1 Prakash Chand Daga vs. Saveta Sharma & Ors. recover the same from the registered owner i.e. respondent No.1 of the offending vehicle. Remaining conditions of disbursal of amount shall remain unaltered.”-Apex court held that . The law is thus well settled and can be summarised:- Prakash Chand Daga vs. Saveta Sharma & Ors. “Even though in law there would be a transfer of ownership of the vehicle, that, by itself, would not absolve the party, in whose name the vehicle stands in RTO records, from liability to a third person … … …Merely because the vehicle was transferred does not mean that such registered owner stands absolved of his liability to a third person. So long as his name continues in RTO records, he remains liable to a third person.” The High Court was therefore absolutely right in allowing the appeal. The challenge raised by the appellant must fail. This appeal is dismissed. No costs.


Hon'ble Mr. Justice Uday Umesh Lalit
1
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.11369 OF 2018
(Arising out of SLP(Civil)No.27296 of 2018)
PRAKASH CHAND DAGA …Appellant
VERSUS
SAVETA SHARMA & ORS. …Respondents
JUDGMENT
Uday Umesh Lalit, J.
1. This appeal challenges the judgment and order dated 05.04.2018 passed
by the High Court of Punjab and Haryana at Chandigarh in FAO No.7010/2011.
2. The appellant, original owner of a Santro Car sold said vehicle to Ms.
Saveta Sharma, first respondent on 11.09.2009. According to the appellant,
after receiving due consideration, the possession was transferred to said first
respondent. An accident occurred on 09.10.2009 in which one Rakesh Kumar,
second respondent, received injuries. In a claim lodged by second respondent,
the Motor Accident Claims Tribunal assessed the compensation at Rs.12.47
lakhs and directed as under:
Civil Appeal No.11369 of 2018
Prakash Chand Daga vs. Saveta Sharma & Ors.
2
“32. In view of my findings on the various issues
above, the claim petition is allowed with costs and
claimant is awarded total compensation of
Rs.12,47,739/- (Rs. Twelve lacs Forty Seven Thousand
Seven Hundred Thirty Nine only), Rs.11,58,489/-
compensation for medical expenses etc. + Rs.60,000/-
as compensation for pain and sufferings + Rs.18,000/-
as compensation for loss of income + Rs.11,250/- as
compensation for temporary disability from respondent
No.2 and 3 alone. Keeping in view prevalent interest
rates, the claimant shall also be entitled to interest on the
above awarded amount at the rate of 7.5% per annum
from the date of filing of petition till final realisation.
The liability of the respondent No.2 and 3 to pay the
compensation shall be joint as well as several. Memo of
costs be prepared and file be consigned to records.”
3. Since the liability was fastened on the driver and first respondent, the
aforesaid decision was challenged by them in the High Court by filing FAO
No.7010/2011. The High Court found that despite the sale of the vehicle on
11.09.2009, no transfer of ownership, in accordance with Section 50 of the
Motor Vehicles Act,1988 (‘the Act’ for short) was effected and as such the
appellant continued to be the owner in terms of definition as incorporated in
Section 2(30) of the Act. Relying on the decision of this Court in Naveen
Kumar vs. Vijay Kumar and others1
 the High Court concluded as under.
“Applying the ratio of the above said judgment to the
facts of the present case, the award stands modified to
the above extent that the Insurance Company is liable to
make the compensation to the claimant and the
Insurance Company will have the recovery rights to
1 (2018) 3 SCC 1
Civil Appeal No.11369 of 2018
Prakash Chand Daga vs. Saveta Sharma & Ors.
3
recover the same from the registered owner i.e.
respondent No.1 of the offending vehicle. Remaining
conditions of disbursal of amount shall remain
unaltered.”
4. Learned counsel appearing for the appellant submitted that the accident
had occurred within thirty days of the transfer when the statutory period as
prescribed under Section 50(1)(b) of the Act had not expired and as such the
liability could not be fastened on the present appellant. Though served, the
transferee, namely, first respondent has chosen not to appear in the matter. We
have gone through the record and considered the submissions advanced by the
learned counsel for the appellant and the Insurance Company.
5. It is true that in terms of Section 50 of the Act, the transfer of a vehicle
ought to be registered within 30 days of the sale. Section 50(1) of the Act
obliges the transferor to report the fact of transfer within 14 days of the
transfer. In case the vehicle is sold outside State, the period within which the
transfer ought to be reported gets extended. On the other hand, the transferee is
also obliged to report the transfer to the registering authority within whose
jurisdiction the transferee has the residence or place of business where the
vehicle is normally kept. Section 50 thus prescribes timelines within which the
transferor and the transferee are required to report the factum of transfer. As
per Sub-Section 3 of said Section 50, if there be failure to report the fact of
transfer, fine could be imposed and an action under Section 177 could
Civil Appeal No.11369 of 2018
Prakash Chand Daga vs. Saveta Sharma & Ors.
4
thereafter be taken if there is failure to pay the amount of fine. These timelines
and obligations are only to facilitate the reporting of the transfer. It is not as if
that if an accident occurs within the period prescribed for reporting said
transfer, the transferor is absolved of the liability.
6. Chapter XII of the Act deals with Claims Tribunals and as to how
applications for compensation are to be preferred and dealt with. While
considering such claims, the Claims Tribunal, in case of an accident is required
to specify the amount which shall be paid by the insurer or owner or driver of
the vehicle involved in the accident or whether such amount be paid by all or
any of them, as the case may be. It is well settled that for the purposes of
fixing such liability the concept of ownership has to be understood in terms of
specific definition of ‘owner’ as defined in Section 2(30) of the Act.
7. In Pushpa alias Leela and Ors. Vs. Shakuntala and Ors.2
the vehicle
in question belonged to one Jitender Gupta who was its registered owner. He
sold said vehicle to one Salig Ram on 02.02.1993 and gave its possession to the
transferee. Despite said sale, the change of ownership was not entered in the
Certificate of Registration. The earlier insurance policy having expired, the
transferee took out fresh insurance policy in the name of original owner
Jitender Gupta. In an accident that took place on 07.05.1994 two persons lost
2 (2011)2 SCC 240
Civil Appeal No.11369 of 2018
Prakash Chand Daga vs. Saveta Sharma & Ors.
5
their lives. The heirs and legal representatives lodged separate claims and an
issue arose as to who was liable as owner. The submissions that Jitender
Gupta, the registered owner had no control over the vehicle and the possession
and control of the vehicle was in the hands of the transferee and as such no
liability could be fastened on the transferor were rejected by this Court. It was
observed in para 11 as under:
“11. It is undeniable that notwithstanding the sale of
the vehicle neither the transferor Jitender Gupta nor the
transferee Salig Ram took any step for the change of
the name of the owner in the certificate of registration
of the vehicle. In view of this omission Jitender Gupta
must be deemed to continue as the owner of the
vehicle for the purposes of the Act, even though under
the civil law he ceased to be its owner after its sale on
2.2.1993.”
8. In the decision in Naveen Kumar (supra) the legal position was adverted
to and this Court observed as under:
“13. The consistent thread of reasoning which
emerges from the above decisions is that in view of
the definition of the expression “owner” in Section
2(30), it is the person in whose name the motor
vehicle stands registered who, for the purposes of the
Act, would be treated as the “owner”. However,
where a person is a minor, the guardian of the minor
would be treated as the owner. Where a motor vehicle
is subject to an agreement of hire purchase, lease or
hypothecation, the person in possession of the vehicle
under that agreement is treated as the owner. In a
situation such as the present where the registered
owner has purported to transfer the vehicle but
Civil Appeal No.11369 of 2018
Prakash Chand Daga vs. Saveta Sharma & Ors.
6
continues to be reflected in the records of the
Registering Authority as the owner of the vehicle, he
would not stand absolved of liability. Parliament has
consciously introduced the definition of the
expression “owner” in Section 2(30), making a
departure from the provisions of Section 2(19) in the
earlier 1939 Act. The principle underlying the
provisions of Section 2(30) is that the victim of a
motor accident or, in the case of a death, the legal
heirs of the deceased victim should not be left in a
state of uncertainty. A claimant for compensation
ought not to be burdened with following a trail of
successive transfers, which are not registered with the
Registering Authority. To hold otherwise would be to
defeat the salutary object and purpose of the Act.
Hence, the interpretation to be placed must facilitate
the fulfilment of the object of the law. In the present
case, the first respondent was the “owner” of the
vehicle involved in the accident within the meaning
of Section 2(30). The liability to pay compensation
stands fastened upon him. Admittedly, the vehicle was
uninsured. The High Court has proceeded upon a
misconstruction of the judgments of this Court in
Reshma (2015)3 SCC 679 and Purnya Kala Devi
(2014) 14 SCC 142.
14. The submission of the petitioner is that a failure to
intimate the transfer will only result in a fine under
Section 50(3) but will not invalidate the transfer of
the vehicle. In T.V. Jose (2001)8 SCC 748, this Court
observed that there can be transfer of title by payment
of consideration and delivery of the car. But for the
purposes of the Act, the person whose name is
reflected in the records of the Registering Authority is
the owner. The owner within the meaning of Section
2(30) is liable to compensate. The mandate of the law
must be fulfilled.”
9. The law is thus well settled and can be summarised:-
Civil Appeal No.11369 of 2018
Prakash Chand Daga vs. Saveta Sharma & Ors.
7
“Even though in law there would be a transfer of
ownership of the vehicle, that, by itself, would not
absolve the party, in whose name the vehicle stands in
RTO records, from liability to a third person … … …
Merely because the vehicle was transferred does not
mean that such registered owner stands absolved of his
liability to a third person. So long as his name
continues in RTO records, he remains liable to a third
person.” 3
The High Court was therefore absolutely right in allowing the appeal.
The challenge raised by the appellant must fail.
10. This appeal is dismissed. No costs.
……………….………………………………J.
[UDAY UMESH LALIT]
………………………………………………J.
[DR. DHANANJAYA Y. CHANDRACHUD]
New Delhi;
December 14, 2018.
3 P.P. Mohammed vs. K. Rajappan and Ors. (2008) 17 SCC 624 para 4