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Saturday, October 1, 2011

The Parliament may consider abolishing the law of adverse possession or at least amending and making substantial changes in law in the larger public interest. =whether the State, which is in charge of protection of life, liberty and property of the people can be permitted to grab the land and property of its own citizens under the banner of the plea of adverse possession?


                                                      REPORTABLE




              IN THE SUPREME COURT OF INDIA






               CIVIL APPELLATE JURISDICTION




PETITION FOR SPECIAL LEAVE TO APPEAL (CIVIL) NO. 


28034/2011


                  (Arising out of CC 9038/2010)








State of Haryana                                        ...Petitioner 






                         Versus




Mukesh Kumar & Ors.                                   ...Respondents








                        J U D G M E N T






Dalveer Bhandari, J.




1.    People   are   often   astonished   to   learn   that   a 






trespasser may take the title of a building or land from 






the   true   owner   in   certain   conditions   and   such   theft   is 






even authorized by law.






2.    The  theory of  adverse possession is also perceived 






by the general public as a dishonest way to obtain title 






to   property.     Property   right   advocates   argue   that 






mistakes   by   landowners   or   negligence   on   their   part 






should   never   transfer   their   property   rights   to   a 



                                                                             2






wrongdoer,   who   never   paid   valuable   consideration   for 






such an interest.  






3.    The government itself may acquire land by adverse 






possession.  Fairness dictates and commands that if the 






government   can   acquire   title   to   private   land   through 






adverse possession, it should be able to lose title under 






the same circumstances. 






4.    We   have   heard   the   learned   counsel   for   the   State   of 






Haryana.     We   do   not   deem   it   appropriate   to   financially 






burden   the   respondents   by   issuing   notice   in   this   Special 






Leave   Petition.   A   very   vital   question   which   arises   for 






consideration in this petition is whether the State, which is 






in   charge   of   protection   of   life,   liberty   and   property   of   the 






people can be permitted to grab the land and property of its 






own   citizens   under   the   banner   of   the   plea   of   adverse 






possession?






5.    Brief   facts,   relevant   to   dispose   of   this   Special   Leave 






Petition are recapitulated as under:






6.    The State of Haryana had filed a Civil Suit through the 






Superintendent   of   Police,   Gurgaon,   seeking   a   relief   of 






declaration   to   the   effect   that   it   has   acquired   the   rights   of 



                                                                               3






ownership   by   way   of   adverse   possession   over   land 






measuring   8   biswas   comprising   khewat   no.   34,   khata   no. 






56, khasra no.  3673/452 situated in  the  revenue  estate of 






Hidayatpur Chhavni, Haryana.






7.     The   other   prayer   in   the   suit   was   that   the   sale   deed 






dated   26th  March,   1990,   mutation   no.   3690   dated   22nd 






November, 1990 as well as judgment and decree dated 19th 






May,   1992,   passed   in   Civil   Suit   No.   368   dated   9 th  March, 






1991 are liable to be set aside.   As a consequential relief, it 






was   also   prayed   that   the   defendants   be   perpetually 






restrained   from   interfering   with   the   peaceful   possession   of 






the   plaintiff   (petitioner   herein)   over   the   suit   land.     For   the  






sake   of   convenience   we   are   referring   the   petitioner   as   the 






plaintiff and the respondents as defendants.






8.     In   the   written   statement,   the   defendants   raised   a 






number   of   preliminary   objections   pertaining   to   estoppel, 






cause of action and mis-joinder of necessary parties.  It was 






specifically   denied   that   the   plaintiff   ever   remained   in 






possession of the suit property for the last 55 years.  It was  






submitted that the disputed property was still lying vacant. 






However, the plaintiff recently occupied it by using force and 



                                                                            4






thereafter have also raised a boundary wall of police line.  It 






was   denied   in   the   written   statement   that   the   plaintiff 






acquired   right   of   ownership   by   way   of   adverse   possession 






qua   property   in   question.     The   defendants   prayed   for 






dismissal of suit and by way of a counter claim also prayed 






for a decree for possession qua suit property be passed.  






9.    The Trial Court framed the following Issues in the suit.






      1. Whether   plaintiffs   have   become   owner   of   disputed 


         property by way of adverse possession? OPP






      2. Whether   sale   deed   26.3.1990   and   mutation   no. 


         3690   dated   22.11.90   are   null   and   void   as   alleged? 


         OPP






      3. Whether   judgment   and   decree   dated   19.05.92 


         passed in civil suit no. 368 dated 9.3.91 is liable to 


         be set aside alleged? OPP






      4. Whether the suit of the plaintiff is not maintainable 


         in the present form? OPP






      5. Whether the plaintiff has no locus-standi to file the 


         present suit? OPP






      6. Whether   the   plaintiff   has   no   cause   of   action   to   file 


         the present suit? OPP






      7. Whether   the   suit   of   the   plaintiff   is   bad   for   mis-


         joinder of necessary parties? OPP






      8. Whether defendants no. 1 to 4 are rightful owners of 


         disputed   property   on   the   basis   of   impugned   sale 


         deed dated 23.6.1990 registered on 3.7.1990? OPP



                                                                             5






       9. Whether   defendants   are   entitled   for   possession   of 


          disputed property? OPP






       10.    Relief.






10.    Issue   No.   1   which   relates   to   adverse   possession   and 






issue   No.   4   pertaining   to   maintainability   were   decided 






together.     According   to   the   Trial   Court,   the   plaintiff   has 






failed   to   prove   the   possession   over   the   disputed   property  






because   the   plaintiff   could   not   produce   any   documentary 






evidence   to   prove   this.     On   the   contrary,   revenue   records 






placed on the file shows that the defendants are the owners 






in   possession   of   disputed   property.     The   Trial   Court 






observed  that  possession  of  State,  as claimed in  the  plaint 






for   a   continuous   period   of   55   years,   stood   falsified   by   the  






documents issued by the officials of the State. 






11.    The   Trial   Court   also   observed   that   despite   claiming 






adverse possession, there was no pleading qua denial of title 






of   the   defendants   by   the   plaintiff,   so   much   so   that   the 






specific   day   when   the   alleged   possession   of   State   allegedly 






became   adverse   against   the   defendants   has   not   been 






mentioned   in   order   to   establish   the   starting   point   of 






limitation could be ascertained. 



                                                                             6






12.    The Trial Court relied on the judgment of this Court in 




S.M.   Karim     v.     Mst.   Bibi   Sakina  AIR   1964   SC   1254 




wherein   this  Court   has   laid   down   that   the   adverse 






possession must be adequate in continuity, in publicity and 






extent   and   a   plea   is   required   at   the   least   to   show   when 






possession becomes adverse. The Court also held that long  






possession is not necessarily adverse possession.






13.      The   Trial   Court  also   relied  on   a   decision   of   the   High 






Court of Punjab and Haryana in the case of Bhim Singh &  




Ors.       v.     Zile   Singh   &   Ors.,    AIR   2006   P   and   H   195, 




wherein it was stated that no declaration can be sought by a 






plaintiff   with   regard   to   the   ownership   on   the   basis   of 






adverse possession. 






14.    The   Trial   Court   came   to   specific   conclusion   that 






despite the fact that the possession of the plaintiff over the  






disputed land is admitted on behalf of defendants, Issue No. 






1  stand   decided  against   the   plaintiff.    It  was   held  that  the  






suit   of   the   plaintiff   claiming   ownership   by   way   of   adverse 






possession is not maintainable.   Consequently, Issue No. 1 






was decided against the plaintiff and Trial No. 4 was decided  






in favour of the defendants.



                                                                             7






15.    The   Trial   Court   decided   Issue   Nos.   2,   3,   5   and   6  






together   and   came   to   the   definite   conclusion   that   the 






plaintiff   failed   to   prove   its   possession   over   the   property   in 






question.     It   was   also   held   that   the   plaintiff   had   no  locus  






standi  to   challenge   the   validity   of   the   impugned   sale   deed, 






mutation   as   well   as   the   judgment   and   decree   because   the 






plaintiff   was   neither   the   owner   nor   in   possession   of   the 






property in dispute.  Consequently, the plaintiff had no right  






to say that the impugned sale deed dated 26th  March, 1990 






was a sham transaction and the suit of mutation dated 22nd 






November,   1990   and,   thereafter,   the   judgment   and   decree 






dated 19th  May, 1992 passed in Civil Suit No. 386 dated 9th 






March, 1991 are liable to be set aside.  






16.    The   Trial   Court   came   to   the   conclusion   that   the 






plaintiff   having   no   right   or   title   in   the   suit   property   has 






neither  locus   standi  nor   cause   of   action   to   file   the   present 






suit.   Issue Nos. 2 and 3 were decided against the plaintiff,  






whereas,  Issue  Nos.  5  and  6  were  decided in   favour  of  the 






defendants.






17.    Regarding Issue Nos. 8 and 9, the Trial Court observed 






that once it is held that defendant Nos. 1 to 4 are owners of  



                                                                                    8






the   disputed   property,   which   is   presently   in   possession   of 






the plaintiff without any right, they (defendants) are entitled 






to   its   possession.     Hence,   Issue   Nos.   8   and   9   were   also 






decided in favour of the defendants. 






18.    Issue   No.   7   was   not   pressed   and   decided   against   the 






defendants.  






19.    Regarding Issue No. 10 (relief) the Trial Court observed 






as under:






                    "As   a   sequel   to   the   findings   of   this  


             court   on   the   issues   mentioned   above,   the  


             suit   of   the   plaintiff   stands   dismissed,  


             however,           counter         claim         filed         by  


             defendants   is   decreed   with   costs   to   the  


             effect that  they  are  entitled  to  possession  


             of land measuring 8 biswas  comprising of  


             khewat   no.   34   khata   no.   56   khasa   no.  


             3673/452   situated   in   revenue   estate   of  


             Hidayatpur   Chhavni   village   now   the   part  


             of   known   as   Patel   Nagar,   Gurgaon.  


             Decree   sheet   be   drawn   accordingly.     File  


             be consigned to  the record room after due  


             compliance."








20.    The   plaintiff,   aggrieved   by   the   judgment   of   the   Trial 






Court filed an appeal (Civil Appeal No. 33) before the learned  






Additional   District   Judge,   Gurgaon.     Learned   Additional 






District   Judge   while   deciding   the   appeal,   relied   on   the 






judgment of the Punjab & Haryana High Court delivered in 



                                                                     9






the   case   of  Food   Corporation   of   India   and   Another     v.  




Dayal Singh 1991 PLJ 425, wherein it was observed that it 




does not behove the Government to take the plea of adverse 






possession against the citizens.    






21.    Learned Additional  District Judge also relied on  other 






judgments of Punjab & Haryana High Court in the cases of 




Bhim   Singh   &   Ors.  (supra)  and  Kanak   Ram   &   Ors.     v.  




Chanan Singh & Ors. (2007) 146 PLR 498 wherein   it was 




held   that   a   person   in   adverse   possession   of   immovable  






property   cannot   file   a   suit   for   declaration   claiming 






ownership and such a suit was not maintainable.  






22.    Before   parting   with   the   judgment   the   learned 






Additional District Judge observed regarding conduct of the 






plaintiff that the present suit was filed by State of Haryana 






by the then Superintendent of Police, Gurgaon on 11th May, 






1996.     It   was   also   observed   by   the   learned   Additional 






District   Judge   that   the   Police   department   is   for   the 






protection of the people and property of the citizens and the 






police   department   had   unnecessarily   dragged   the 






defendants   in   unnecessary   litigation.     The   appeal   was 






dismissed with exemplary cost of Rs.25,000/-.



                                                                            1






23.    Unfortunately, despite serious strictures passed by the 






Court,   the   State   of   Haryana   did   not   learn   a   lesson   and 






preferred   a   Second   Appeal   (RSA   No.   3909   of   2008)   before 






the High Court of Punjab and Haryana, Chandigarh against 






the judgments and decrees of the two courts below. 






24.    The   High   Court,   relying   on   the   earlier   judgments, 






observed   that   the   welfare   State   which   was   responsible   for 






the protection of life and property of its citizens, was in the 






present   case,   itself   trying   to   grab   the   land/property   of   the 






defendants under the garb of plea of adverse possession and 






hence   the   action   of   the   plaintiff   is   deplorable   and 






disgraceful.






25.    Unfortunately,   the   State   of   Haryana,   is   still   not 






satisfied with the three strong judgments by three different 






forums given against the State and is still quite anxious and 






keen to grab the property of the defendants in a clandestine  






manner on the plea of adverse possession. 






26.    In   a   democracy,   governed   by   rule   of   law,   the   task   of 






protecting   life   and   property   of   the   citizens   is   entrusted   to 






the   police   department   of   the   government.     In   the   instant 






case, the suit has been filed through the Superintendent of 



                                                                          1






Police,   Gurgaon,   seeking   right   of   ownership   by   adverse 






possession. 






27.    The   revenue   records   of   the   State   revealed   that   the 






disputed property stood in the name of the defendants.  It is 






unfortunate   that   the   Superintendent   of   Police,   a   senior 






official of the Indian Police Service, made repeated attempts 






to   grab   the   property   of   the   true   owner   by   filing   repeated 






appeals before different forums claiming right of ownership 






by way of adverse possession. 






28.    The   citizens   may   lose   faith   in   the   entire   police 






administration of the country that those responsible for the  






safety and security of their life and property are on a spree 






of   grabing   the   properties   from   the   true   owners   in   a 






clandestine manner. 






29.    A   very   informative   and   erudite   Article   was 






published in Neveda Law Journal Spring 2007 with the 






title   `Making   Sense   Out   of   Nonsense:     A   Response   to 






Adverse   Possession   by   Governmental   Entities'.     The 






Article   was   written   by   Andrew   Dickal.   Historical 






background of adverse possession was discussed in that 






article.



                                                                      1




Historical background




30.    The   concept   of   adverse   possession   was   born   in 






England around 1275 and was initially created to allow 






a   person   to   claim   right   of   "seisin"   from   his   ancestry. 






Many   felt   that   the   original   law   that   relied   on   "seisin" 






was  difficult to  establish, and  around 1623  a statue  of 






limitations was put into place that allowed for a person 






in   possession   of   property   for   twenty   years   or   more   to 






acquire   title   to   that   property.     This   early   English 






doctrine   was   designed   to   prevent   legal   disputes   over 






property   rights   that   were   time   consuming   and   costly. 






The   doctrine   was   also   created   to   prevent   the   waste   of 






land   by   forcing   owners   to   monitor   their   property   or 






suffer the consequence of losing title.  






31.    The   concept   of   adverse   possession   was 






subsequently   adopted   in   the   United   States.     The 






doctrine   was   especially   important   in   early   American 






periods   to   cure   the   growing   number   of   title   disputes. 






The   American   version   mirrored   the   English   law,   which 






is   illustrated   by   most   States   adopting   a   twenty-year 



                                                                      1






statue of limitations for adverse possession claims.   As 






America   has   developed   to   the   present   date,   property 






rights   have   become   increasingly   more   important   and 






land has become limited.  As a result, the time period to 






acquire land by adverse possession has been reduced in 






some States to as   little as five years, while in others, it 






has remained as long as forty years.  The United States 






has also changed the traditional doctrine by preventing 






the use of adverse possession against property held by a 






governmental entity.






32.    During the colonial  period,  prior  to the enactment 






of   the   Bill   of   Rights,   property   was   frequently   taken   by 






states from private land owners without compensation. 






Initially,   undeveloped   tracts   of   land   were   the   most 






common   type   of   property   acquired   by   the   government, 






as  they  were  sought  for   the  installation  of  public  road. 






Under   the  colonial   system   it   was  thought   that   benefits 






from the road would, in a newly opened country, always 






exceed the value of unimproved land.



                                                                         1






33.    The   doctrine   of   adverse   possession   arose   in   an   era 






where   lands   were   vast   particularly   in   the   United   States   of 






America and documentation sparse in order to give quietus 






to the title of the possessor and prevent fanciful claims from  






erupting.     The   concept   of   adverse   possession   exits   to   cure 






potential  or  actual  defects in  real estate  titles by putting  a 






statute   of   limitation   on   possible   litigation   over   ownership 






and possession.  A landowner could be secure in title to his  






land;   otherwise,   long-lost   heirs   of   any   former   owner, 






possessor   or   lien   holder   of   centuries   past   could   come 






forward   with   a   legal   claim   on   the   property.     Since 






independence   of   our   country   we   have   witnessed   registered 






documents of title and more proper, if not perfect, entries of  






title   in   the   government   records.     The   situation   having 






changed, the statute calls for a change.






34.    In Hemaji Waghaji Jat v. Bhikhabhai Khengarbhai  




Harijan   and   Others  (2009)   16   SCC   517   (one   of   us 




Bhandari,   J.),   this   Court   had   an   occasion   to   examine   the 






English   and   American   law   on   "adverse   possession".     The 






relevant paras of that judgment (Paras 24 and 26 to 29) are 






reproduced as under:



                                                                    1




      "24.  In   a   relatively   recent   case   in  P.T.  


Munichikkanna Reddy v. Revamma (2007) 6 SCC 


59,  this   Court   again   had   an   occasion   to   deal   with 


the   concept   of   adverse   possession   in   detail.   The 


Court   also   examined   the   legal   position   in   various 


countries   particularly   in   English   and   American 


systems.   We   deem   it   appropriate   to   reproduce 


relevant   passages   in   extenso.   The   Court   dealing 


with adverse possession in paras 5 and 6 observed 


as under: (SCC pp.        66-67)






         "5. Adverse possession in one sense is based 


      on   the   theory   or   presumption   that   the   owner 


      has   abandoned   the   property   to   the   adverse 


      possessor on the acquiescence of the owner to 


      the   hostile   acts   and   claims   of   the   person   in 


      possession.  It  follows  that  sound qualities  of a  


      typical  adverse  possession  lie  in  it  being  open,  


      continuous   and   hostile.   (See   Downing  v.  Bird 


      100   So   2d   57   (Fla   1958),              Arkansas  


      Commemorative   Commission                   v.     City   of  


      Little  Rock  227,   Ark   1085   :   303   SW   2d   569 


      (1957);  Monnot  v.  Murphy  207   NY  240   :   100 


      NE   742   (1913);  City   of   Rock   Springs  v. 


      Sturm  39   Wyo   494   :   273   P   908   :   97   ALR   1 


      (1929).)






         6.   Efficacy   of   adverse   possession   law   in 


      most   jurisdictions   depends   on   strong 


      limitation statutes by operation of which right 


      to   access   the   court   expires   through   efflux   of 


      time.  As  against   rights   of  the   paper-owner,   in 


      the   context   of   adverse   possession,   there 


      evolves   a   set   of   competing   rights   in   favour   of 


      the   adverse   possessor   who   has,   for   a   long 


      period of time, cared for the land, developed it, 


      as  against  the  owner   of the  property who  has 


      ignored   the   property.   Modern   statutes   of 


      limitation operate, as a rule, not only to cut off 


      one's right  to  bring an  action   for  the  recovery 


      of   property   that   has   been   in   the   adverse 


      possession of another for a specified time, but 



                                                                                    1






              also   to   vest   the   possessor   with   title.   The 


              intention of such statutes is not to punish one 


              who   neglects   to   assert   rights,   but   to   protect 


              those   who   have   maintained   the   possession   of 


              property   for   the   time   specified   by   the   statute 


              under   claim   of   right   or   colour   of   title.   (See 


              American Jurisprudence, Vol. 3, 2d, p. 81.  It is  


              important   to   keep   in   mind   while   studying   the  


              American   notion   of   adverse   possession,  


              especially in the backdrop of limitation statutes,  


              that the intention to dispossess cannot be given  


              a   complete   go-by.   Simple   application   of  


              limitation   shall   not   be   enough   by   itself   for   the  


              success of an adverse possession claim."






35.    A person pleading adverse possession   has no equities 






in   his   favour   since   he   is   trying   to   defeat   the   rights   of   the 






true   owner.   It   is   for   him   to   clearly   plead   and   establish   all 






facts necessary to establish adverse possession. Though we 






got   this   law   of   adverse   possession   from   the   British,   it   is  






important to note that these days English Courts are taking 






a very negative view towards the law of adverse possession. 






The English law was amended and changed substantially to 






reflect these changes, particularly in   light of the   view that  






property   is   a   human   right   adopted   by   the     European 






Commission.    This   Court   in  Revamma  (supra)   observed 






that   to   understand   the   true   nature   of   adverse 




possession, Fairweather v. St                     Marylebone            Property  




Co [1962]   2   WLR   1020 : [1962]   2   All   ER   288 can   be 



                                                                                1






considered           where         House         of         Lords         referring 






to Taylor v. Twinberrow [1930]   2   K.B.   16 termed   adverse 






possession   as   a   negative   and   consequential   right   effected 






only   because   somebody   else's   positive   right   to   access   the 






court is barred by operation of law.  As against the rights of 






the paper-owner, in the context of adverse possession, there 






evolves   a   set   of   competing   rights   in   favour   of   the   adverse  






possessor who  has, for a long period of time, cared for the  






land, developed it, as against the owner of the property who 






has ignored the property.






36.    The right to property is now considered to be not only 






constitutional   or   statutory   right   but   also   a   human   right. 






Human   rights   have   already   been   considered   in   realm   of 






individual rights such as right to health, right to livelihood, 






right to shelter and employment etc. But now human rights 






are gaining a multi faceted dimension.   Right to property is 






also   considered   very   much   a   part   of   the   new   dimension. 






Therefore, even claim  of adverse possession has to be read 






in that context.






37.    The   changing   attitude   of   the   English   Courts   is   quite 






visible   from   the   judgment   of  Beaulane   Properties   Ltd.  v. 



                                                                       1




Palmer (2005) 3 WLR 554.  The Court here tried to read the 




human rights position in the context of adverse possession. 






But what is commendable is that the dimension of human 






rights   have   widened   so   much   that   now   property   dispute 






issues are also being raised within  the  contours  of human 






rights.   With the expanding jurisprudence of the European 






Courts   of   Human   Rights,   the   Court   has   taken   an   unkind 






view to the concept of adverse possession.






38.    Paragraphs   from   26   to   29   of  Hemaji   Waghaji   Jat 






(supra) are set out as under:-






             26.  With   the   expanding   jurisprudence   of   the 


       European   Court   of   Human   Rights,   the   Court   has 


       taken   an   unkind   view   to   the   concept   of   adverse 


       possession   in   the   recent   judgment   of  JA   Pye  


       (Oxford)   Ltd.  v.  United   Kingdom  (2005)   49   ERG 


       90 which concerned the loss of ownership of land by 


       virtue   of  adverse possession.  In the  said  case, "the 


       applicant   company   was   the   registered   owner   of   a 


       plot of 23 hectares of agricultural land. The owners 


       of   a   property   adjacent   to   the   land,   Mr   and   Mrs 


       Graham   (the   Grahams)   occupied   the   land   under   a 


       grazing   agreement.   After   a   brief   exchange   of 


       documents in December 1983 a chartered surveyor 


       acting   for   the   applicants   wrote   to   the   Grahams 


       noting   that   the   grazing   agreement   was   about   to 


       expire   and  requiring  them  to  vacate  the  land."  The 


       Grahams   continued   to   use   the   whole   of   the 


       disputed land for farming without the permission of 


       the   applicants   from   September   1998   till   1999.   In 


       1997,   Mr   Graham   moved   the   Local   Land   Registry 


       against   the   applicant   on   the   ground   that   he   had 


       obtained  title   by  adverse   possession.   The   Grahams 



                                                                    1






challenged   the   applicant   company's   claims   under 


the   Limitation   Act,   1980   (the   1980   Act)   which 


provides   that   a   person   cannot   bring   an   action   to 


recover any land after the expiration  of 12 years of 


adverse possession by another.






      27.  The judgment was pronounced in  JA Pye  


(Oxford) Ltd.  v.  Graham  (2000) 3 WLR 242 : 2000 


Ch   676.   The   Court   held   in   favour   of   the   Grahams 


but  went  on  to  observe the   irony  in  law of  adverse 


possession.   The   court   observed   that  the   law   which 


provides to oust an owner on the basis of inaction of 


12 years is "illogical and disproportionate". The effect 


of   such   law   would   "seem   draconian   to   the   owner" 


and   "a   windfall   for   the   squatter".   The   court 


expressed   its   astonishment   on   the   prevalent   law 


that   ousting   an   owner   for   not   taking   action   within 


limitation   is   illogical.   The   applicant   company 


aggrieved by the said judgment filed an appeal and 


the   Court   of   Appeal   reversed   the   High   Court 


decision. The Grahams then appealed to the House 


of   Lords,   which,   allowed   their   appeal   and   restored 


the order of the High Court.






      28.  The   House   of   Lords   in  JA   Pye   (Oxford)  


Ltd.  v.  Graham  (2003)   1   AC   419   :   (2002)   3   WLR 


221   :   (2002)   3   All   ER   865   (HL),  observed   that   the 


Grahams had possession of the land in the ordinary 


sense   of   the   word,   and,   therefore,   the   applicant 


company   had   been   dispossessed   of   it   within   the 


meaning of the Limitation Act of 1980.






      29.  We   deem   it   proper   to   reproduce   the 


relevant   portion   of   the   judgment   in                 P.T.  


Munichikkanna Reddy v. Revamma (2007) 6 SCC 


59: (SCC p. 79, paras 51-52)






          "51.   Thereafter   the   applicants   moved   the 


      European   Commission   of   Human   Rights 


      (ECHR)   alleging   that   the   United   Kingdom   law 


      on adverse possession, by which they lost land 



                                                           2






to a neighbour, operated in violation of Article 


1   of   Protocol   1   to   the   Convention   for   the 


Protection of Human Rights and Fundamental 


Freedoms (`the Convention').






   52. It was contended by the applicants that 


they   had   been   deprived   of   their   land   by   the 


operation   of   the   domestic   law   on   adverse 


possession   which   is   in   contravention   with 


Article 1 of Protocol 1 to the Convention for the 


Protection of Human Rights and Fundamental 


Freedoms   (`the   Convention'),   which   reads   as 


under:


          `Every natural or legal person is entitled 


     to   the   peaceful   enjoyment   of   his 


     possession. No one shall be deprived of his 


     possession   except   in   the   public   interest 


     and subject to the conditions provided for 


     by   law   and   by   the   general   principles   of 


     international law.


          The   preceding   provisions   shall   not, 


     however, in any way impair the right of a 


     State   to   enforce   such   laws   as   it   deems 


     necessary to control the use of property in 


     accordance with the general interest or to 


     secure   the   payment   of   taxes   or   other 


     contributions or penalties.' "


This Court in Revamma case   also mentioned 


that   the   European   Council   of   Human   Rights 


importantly   laid   down   three-pronged   test   to 


judge the interference of the Government with 


the   right   of   "peaceful   enjoyment   of   property": 


(SCC p. 79, para 53)








   "53. ... [In]  Beyeler  v.  Italy  [GC] No. 33202 


of   1996  ''   108-14   ECHR   2000-I,   it   was   held 


that   the   `interference'   should   comply   with   the 


principle of lawfulness and pursue a legitimate 


aim   (public   interest)   by   means   reasonably 


proportionate to the aim sought to be realised."



                                                                         2






            The   Court   observed:(Revamma   case  79-80, 


            paras 54-56)






               "54.   ...   `The   question   nevertheless   remains 


            whether, even having regard to the lack of care 


            and inadvertence on the part of the applicants 


            and their advisers, the deprivation of their title 


            to   the   registered   land   and   the   transfer   of 


            beneficial   ownership   to   those   in   unauthorized 


            possession   struck   a   fair   balance   with   any 


            legitimate public interest served.






               In   these   circumstances,   the   Court 


            concludes   that   the   application   of   the 


            provisions   of   the   1925   and   1980   Acts   to 


            deprive the applicant companies of their title to 


            the   registered   land   imposed   on   them   an 


            individual and excessive burden and upset the 


            fair   balance   between   the   demands   of   the 


            public   interest   on   the   one   hand   and   the 


            applicants'   right   to   the   peaceful   enjoyment   of 


            their possessions on the other.






               There   has   therefore   been   a   violation   of 


            Article 1 of Protocol 1.'






               55. The question of the application of Article 


            41   was   referred   for   the   Grand   Chamber 


            Hearing   of   the   ECHR.   This   case   sets   the   field 


            of adverse possession and its interface with the 


            right   to   peaceful   enjoyment   in   all   its 


            complexity.






               56. Therefore it will have to be kept in mind 


            the   courts   around   the   world   are   taking   an 


            unkind   view   towards   statutes   of   limitation 


            overriding property rights."




39.    In  Hemaji   Waghaji   Jat  case,   this   Court   ultimately 






observed as under:



                                                                             2




             "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."




Fifth   Amendment   of   the   U.S.   Constitution   -   a 


principle of a civilized society






40.    Another important development in the protection of 






property   rights   was   the   Fifth   Amendment.     James 






Madison was the drafter and key supporter for the Fifth 






Amendment.     The   Fifth   Amendment   states:     "nor   shall 






private   property   be   taken   for   public   use,   without   just 






compensation".   The   main   issue   is   to   pay   just 






compensation   for   acquiring   the   property.   There   are 






primarily  two  situations  when  a  landowner  may  obtain 






compensation   for   land   officially   transferred   to   or 



                                                                   2






depreciated by the government.   First, an owner may be 






entitled   to   compensation   when   a   governmental   entity 






intentionally acquires private property through a formal 






condemnation   proceeding   and   without   the   owner's 






consent.   The   State's   power   to   take   property   is 






considered inherent through its eminent domain powers 






as a sovereign.  Through the condemnation proceedings, 






the   government   obtains   the   necessary   interest   in   the 






land,   and   the   Fifth   Amendment   requires   that   the 






property owner be compensated for this loss.






41.    The   second   situation   requiring   compensation 






under   Fifth   Amendment   occurs   when   the   government 






has   not   officially   acquired   private   property   through   a 






formal   condemnation   proceeding,   but   "nonetheless 






takes   property   by   physically   invading   or   appropriating 






it".     Under   this   scenario,   the   property   owner,   at   the 






point in which a "taking" has occurred, has the option 






of filing a claim against the government actor to recover 






just   compensation   for   the   loss.     When   the   landowner 






sues the government seeking compensation for a taking, 



                                                                           2






it   is   considered   an   inverse   condemnation   proceeding, 






because   the   landowner   and   not   the   government   is 






bringing the cause of action.






42.    We   inherited   this   law   of   adverse   possession   from   the  






British.  The Parliament may consider abolishing the law of 






adverse   possession   or   at   least   amending   and   making 






substantial   changes   in   law   in   the   larger   public   interest. 






The   Government   instrumentalities   -   including   the   police   - 






in   the   instant   case   have   attempted   to   possess   land 






adversely. This, in our opinion, a testament to the absurdity  






of   the   law   and   a   black   mark   upon   the   justice   system's 






legitimacy.   The Government should protect the property of 






a citizen - not steal it.  And yet, as the law currently stands, 






they may do just that. If this law is to be retained, according  






to the wisdom of the Parliament, then at least the law must 






require   those   who   adversely   possess   land   to   compensate 






title   owners   according   to   the   prevalent   market   rate   of   the 






land or property in question.  This alternative would provide 






some semblance of justice to those who have done nothing 






other   than   sitting   on   their   rights   for   the   statutory   period, 






while allowing the adverse possessor to remain on property. 



                                                                             2






While   it   may   be   indefensible   to   require   all   adverse 






possessors   -   some   of   whom   may   be   poor   -   to   pay   market  






rates   for   the   land   they   possess,   perhaps   some   lesser 






amount   would   be   realistic   in   most   of   the   cases.     The 






Parliament may either fix a set range of rates or to leave it 






to   the   judiciary   with   the   option   of   choosing   from   within   a 






set   range   of   rates   so   as   to   tailor   the   compensation   to   the 






equities of a given case.






43.    The   Parliament   must   seriously   consider   at   least   to 






abolish   "bad   faith"   adverse   possession,   i.e.,   adverse 






possession   achieved   through   intentional   trespassing. 






Actually   believing   it   to   be   their   own   could   receive   title 






through   adverse   possession   sends   a   wrong   signal   to   the 






society   at   large.     Such   a   change   would   ensure   that   only 






those who had established attachments to the land through 






honest means would be entitled to legal relief.   






44.    In   case,   the   Parliament   decides   to   retain   the   law   of 






adverse   possession,   the   Parliament   might   simply   require 






adverse   possession   claimants   to   possess   the   property   in 






question for a period of 30 to 50 years, rather than a mere 






12.     Such   an   extension   would   help   to   ensure   that  



                                                                          2






successful claimants have lived on the land for generations, 






and   are  therefore  less likely to   be  individually  culpable  for 






the   trespass   (although   their   forebears   might).   A   longer 






statutory   period   would   also   decrease   the   frequency   of 






adverse   possession   suits   and   ensure   that   only   those 






claimants most intimately connected with the land acquire 






it, while only the most passive and unprotective owners lose 






title.  






45.   Reverting   to   the   facts   of   this   case,   if   the   Police 






department   of   the   State   with   all   its   might   is   bent   upon 






taking   possession   of   any   land   or   building   in   a   clandestine  






manner,   then,   perhaps   no   one   would   be  able   to  effectively 






prevent them.  






46.    It is our bounden duty and obligation to ascertain the 






intention of the Parliament while interpreting the law.   Law 






and   Justice,   more   often   than   not,   happily   coincide   only 






rarely   we   find   serious   conflict.   The   archaic   law   of   adverse 






possession   is   one   such.     A   serious   re-look   is   absolutely 






imperative in the larger interest of the people.






47.    Adverse   possession   allows   a   trespasser   -   a   person 






guilty of a tort, or even a crime, in the eyes of law - to gain  



                                                                            2






legal   title   to   land   which   he   has   illegally   possessed   for   12 






years. How 12 years of illegality can suddenly be converted 






to   legal   title   is,   logically   and   morally   speaking,   baffling. 






This outmoded law essentially asks the judiciary to place its 






stamp   of   approval   upon   conduct   that   the   ordinary   Indian 






citizen would find reprehensible.






48.    The   doctrine   of   adverse   possession   has   troubled   a 






great many legal minds.   We are clearly of the opinion that 






time has come for change.






49.    If   the   protectors   of   law   become   the   grabbers   of   the 






property   (land   and   building),   then,   people   will   be   left   with 






no   protection   and   there   would   be   a   total   anarchy   in   the 






entire country.  






50.    It is indeed a very disturbing and dangerous trend.  In 






our   considered   view,   it   must   be   arrested   without   further 






loss   of   time   in   the   larger   public   interest.     No   Government 






Department, Public Undertaking, and much less the Police 






Department   should   be   permitted   to   perfect   the   title   of   the 






land   or   building   by   invoking   the   provisions   of   adverse 






possession and grab the property of its own citizens in the  






manner that has been done in this case.  



                                                                            2






51.    In   our   considered   view,   there   is   an   urgent   need   for   a 






fresh   look   of   the   entire   law   on   adverse   possession.     We 






recommend the Union  of India to immediately consider and 






seriously   deliberate   either   abolition   of   the   law   of   adverse 






possession   and   in   the   alternate   to   make   suitable 






amendments in the law of adverse possession. A copy of this 






judgment   be   sent   to   the   Secretary,   Ministry   of   Law   and 






Justice, Department of Legal Affairs, Government of India for 






taking appropriate steps in accordance with law.






52.    This   Special   Leave   Petition   is   dismissed   with   costs   of  






Rs.50,000/- (Rupees Fifty Thousand only) to be paid by the  






State   of   Haryana   for   filing   a   totally   frivolous   petition   and 






unnecessarily   wasting   the   time   of   the   Court   and 






demonstrating   its   evil   design   of   grabbing   the   properties   of 






lawful   owners   in   a   clandestine   manner.     The   costs   be 






deposited within four weeks from the date of pronouncement 






of this judgment.  In this petition, we did not issue notice to 






the   defendants,   therefore,   we   direct   that   the   costs   be 






deposited   with   the   National   Legal   Services   Authority   for 






utilizing the same to enable the poor litigants to contest their 






cases.  



                                                                            2






53.     This Special Leave Petition being devoid of any merit is  






accordingly dismissed.










                                             ..................................J.


                                                      (Dalveer Bhandari)










                                              .................................J.


                                                       (Deepak Verma)




New Delhi:


September 30,  2011