SHYAM SUNDER DUTTAversusBAIKUNTHA NATH BANERJEE (DEAD) BY LRS. AND ORS.
- Citation
- 1994 INSC 409
- Decided
- 21 September 1994
- Disposal
- Appeal(s) allowed
Holding
The respondents did not acquire tenancy rights; possession under a receiver cannot be counted for adverse possession, and the High Court’s factual finding was illegal.
Summary
The appellant filed successive partition suits over property where a court‑appointed receiver (1933‑1941) had inducted the respondents as occupants. After the receiver’s discharge, the respondents claimed tenancy rights by adverse possession. The trial court and the appellate court found that the respondents were not in possession after August 1945 and thus had no tenancy rights. The High Court reversed, holding that the respondents had acquired tenancy by prescription. The Supreme Court held that a receiver acts as an officer of the court; occupants inducted by the receiver are merely licensees whose possession ends on the receiver’s discharge and cannot be counted for adverse possession. It also held that the High Court erred by not considering the full evidence and by making an unwarranted factual finding. Consequently, the appeal was allowed, setting aside the High Court decree and restoring the appellate court’s decision.
Issues considered
- Whether occupants inducted by a court‑appointed receiver acquire tenancy rights by adverse possession after the receiver’s discharge.
- Whether the period of possession under a receiver can be counted towards the limitation period for adverse possession under the Bengal Tenancy Act.
- Whether the High Court erred in re‑appraising the factual findings of the lower courts without considering the entire evidence.
Legislation cited
Subjects
Judgment
SHYAM SUNDER DUTTA A
v.
. BAIKUNTHA NATH BANERJEE (DEAD) BY LRS. AND ORS.
SEPTEMBER 21, 1994
- [K. RAMASWAMY AND N. VENKATACHALA, JJ.] B
Tenancy Laws:
Bengal Tenancy Act.
Suit for partition-Appointment of Receiver-Tenants inducted by C
him-Receiver was discharged after the suit was decreed-Whether tenants
inducted by him acquired tenancy rights pursuant to the tenancy created by
him by adverse possessio7t-Held no-Finding of fact-lnteiference by High
Court without considering the entire evidence-Held not justified.
D
The 'appellant's mother filed a suit for partition of certain proper-
ties. A Receiver was appointed· in 1933. He induc~ed the Respondents as
tenants therein. The suit was decreed in 1940 and the Receiver was dis·
charged in 1941.
On attaining majority, the appellant filed a second partition suit for E
partition of other properties and also the suit property which was jointly
in possession and enjoyment of the appellant and his co-sharers. He also
filed an application for ad-interim injunction to restrain the respondents
from interfering with his possession. The .suit was decreed.
Thereafter a third suit was filed by the appellant when there was F
threat of dispossession to an extent of 2 acres and 21 cents, praying for a
declaration that the said lands together with the gardtn and, fruit bearing
trees belong to the appellant and his co-sharers and the respondents had
no tenancy rights created by the Receiver and for perpetual injunction
restraining them from interfering with their possession. The Trial Court G
dismissed the suit. The appellate Court decreed the suit. On appeal, the
High Court reversed the order of the appellate Court.
In this appeal, the question that arose was whether the respondents
acquired any tenancy rights pursuant to the tenancy· created by the
Receiver by adverse possession. H
741
742 SUPREME COURT REPORTS [1994) SUPP. 3 S.C.R.
A Allowing the appeal, this Court
HELD : 1. It is settled law that a Receiver when appointed to manage
the suit property, acts as an officer of the Court. Unless the Court grants
permission to induct any third party into possession as a tenant in
accordance with the directions contained in the Order or as per the law
B then prevailing, the person inducted by the Receiver into possession would
remain only as a licensee under the Receiver. As soon as the Receiver is
discharged, the possession of the licensee being a limited right to remain
in possession during the period when the receiver was in management of
the suit property, it comes to an end. On the discharge of the Rece_iver, the
c licensee has no ·right to remain in possession as either a tenant or a
licensee. Therefore, the period of his possession cannot be treated or
tagged for the purpose of claiming adverse possession. (745-B, CJ
P. Lakshmi Reddy v. L. Lakshmi Reddy, (1957) SCR 195, relied· on.
D
2. In the instant case, the question of the respondents to have
remained in possession, could not have been gone into by the High Court,
since the District Court on consideration of the entire evidenc;e had
categorically recorded a finding of fact that the appellant and his co-:.
1
sharers ·remained in possession from August 1945 and that the respon-
E dents were not continuing in possession from that time. This being a
finding of fact, the High Court would not have gone into the question. The
High Court has gone into the question whether. the respondents were not
dispossessed from suit lands and recorded a finding that they remained
in possession. That finding does not appear to be warranted in view of the
F fact that the evidence was not discussed and the only evidence the High
Court had considered was that of PW-1 but the first appellate court had
considered the evidence of PWs 2 to 5 and the documentary evidence and
that evidence was found to be in support of the evidence given by PW-1
that the respondents did not continue in possession from August, 1945.
Therefore, the finding recorded by the High Court, in fact, was not nec~s-
G sary. Even otherwise, that finding was recorded without adverting to all
the material evidence and that, therefore, the finding of possession
recorded by the High Court is clearly illegal. (745-E to H, 746-A]
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3190 of
H 1988.
S.S. DU1TA v. B.N. BANERJEE 743
From the Judgment and Order dated 10 & 16.8.84 of the Calcutta A
High Court in Appeal from Appellate Decree No. 153 of 1975.
P.K. Chatterjee and Sukumar Ghose for the Appellants.
G.S. Chatterjee Adv. for the Respondents.
B
The following Order of the Court was delivered :
This case has a chequered career. Initially, Title Suit No. 40 of 1927
was filed for partition of the plaint-schedule-properties by the mother of
the. appellant. Pending suit, a Receiver was appointed on May 3, 1933.
During the course of the administration of the plaint-schedule-properties, C
he had inducted the respondents into · possession purporting to be as
tenants. Ultimately, the suit was decreed in January 1940 and the Receiver
was discharged in December, 1941. Thereafter, the appellant on attaining
majority, filed a second partition suit-Title Suit No. 53/1944, for partition
of other properties and also the suit property which was jointly in posses- D
sio~ and enjoyment of him and his co-sharers. He also filed an application
for ad-interim injunction to restrain the respondents from interfering with
his possession when there was a threat of dispossession. On April 30, 1944,
a preliminary decree in the title Suit No. 53/1944 was passed followed by
a final decree of November 7, 1949..Thereafter ·in November, i955, the
third suit-T.S. No. 164/1955, was filed against the defendants when the E
threat of dispossession to the extent of 2 acres and 21 cents was persisting
for a declaration that the lands therein together with the garden and fruit
bearing tress belong to the appellant and his co-sharers and the respon-
dents have not tenancy rights created by the Receiver and for perpetual
injunction restraining them from interfering with their possession. The trial p
Court dismissed the suit on May 30, 1959, in Title Appeal No. 773/59, by
judgment and decree dated January 17, 1974.
The Appellate Court recorded the findings thus :
"The entire evidence on record considered together clearly shows G
that the defendants are out of possession from the suit lands from
August 1945 and that the plaintiff and his co- sharers are in actual
physical possession of the suit lands from that time. n
The evidence of PWs 2, ·3, 4 and 5 considered with the
documentary evidence discussed above lands support to the H
744 SUPREME COURT REPORTS [1994) SUPP. 3 S.C.R.
A evidence of PW-1 that the defendants were not in possession of
the suit lands from August, 1945 and that the plaintiff and his
co-sharer are possessing the suit properties from. that time. I
accordingly hold that the defendants failed to prove that they
acquired any limited interest of tenancy by adverse possession."
B The appellate Court decreed thus : ·
"It is hereby-declared that the suit land is in joint possession of the
plaintiff and the pro-defendants and that the defendant Nos. 1 to
5 have no tenancy therein or any right to possess the same. The
defendant Nos. 1 to 5 are hereby permanently restrained from
c interfering in any way with the plaintiff's possession of the suit
land."
Feeling aggrieved against the appellate decree, the respondents filed
Second Appeal No. 153/1975 in the High Court. The learned Single Judge,
D by judgment and decree dated August 16, 1984, reversed the decree of the
appellate court and confirmed the decree of the trial court. The High
Court held that the respondents remained in possession of the property
and they have acquired by adverse possession the limited right of tenancy
and that, therefore, the decree of the appellate court is not valid in law.
E The question that arises in the appeal is whether the respondents
have acquired any tenancy rights pursuant to the tenancy created by the
Receiver by adverse possession. This Court in P. Lakshmi Reddy v. L.
Lakshmi Reddy, [1957) SCR 195, held that "the possession of a Receiver is
as an officer- of the Court and he is not agent of any party to the suit and
F notwithstanding that in law his possession is ultimately treated as posses-
sion of the successful party on the termination of the suit, he could not be
considered as the agent of such party with the animus of claiming sole and
exclusive title with a view to initiate adverse possession, and during the time
of the Receiver's possession the respondent could not sue H, and limitation
G could not therefore run against him". In that case, one of the contentions
raised was that the unsuccessful party in the sµit . having remained in
possession and the Receiver having continued to be in possession of the
land taken from the opposite party, the possession of the Receiver should
be tagged to compute the period of adverse possession in his favour. This
Court negatived the contention and held that the possession was not taken
H from him by the Receiver and that, therefore, the question of tagging the
S.S. DlJITA v. B.N. BANERJEE 745
period due to that contingency did not arise for decision. However, this A
court held that the possession of the Receiver is possession on behalf of
the Court and a party cannot claim any title adverse to the opposite surly
when the Receiver remained in possession. It is settled law that a Receiver
-,
when appointed to manage the suit property, he acts as an officer of the
Court. Unless the court grants permission to induct any third party into
B
the possession as a tenant in accordance with the directions contained in
the Order or as per the law then prevailing, the person inducted by the
Receiver into possession would remain only as a licensee under the
Receiver. As soon as the Receiver is discharged, the possession of the
licensee being a limited right to r~main in possession during the period
when the Receiver was in management of the suit property, it comes to an c
end. On the discharge of the Receiver, the licensee has no right to remain
in possession as either a tenant or a licensee. Therefore, the period of his
possession cannot be treated or tagged for the purpose of claiming adverse
possession. The finding of the courts below the High Court was that the
respondents remained in possession from 1933 to August, 1945 and during D
that period, such possession cannot be treated to be adverse to the real
owner of the property. Consequently, the declaration given by the High
Court that the respondents had acquired the tenancy rights by prescription
is clearly illegal.
The question of the respondents to have remained in possession E
cannot be gone into by the High Court, since the District Court on
consideration of the entire evidence had categorically recorded a .finding
of fact that appellant and his co-sharers remained in possession from
August 1945 and that the respondents were not continuing in possession
from that time. This being a finding of fact, the High Court would not have F
gone into the question. However, it would appear that on the question of
limitation under the Bengal Tenancy Act when the arguments were ad-
dressed, in consideration of that question, the High Court has gone into
the question whether the respondents were not dispossessed from suit
lands and recorded a finding that they remained in possession. That finding
docs not appear to be warranted in view of the fact that the evidence was G
not discussed and as rightly contended the only evidence the High Court
had considered was that of PW-1 but the first appellate court had con-
sidered the evidence of PWs 2 to 5 and the documentary evidence and that
evidence was found to be in support of the evidence given by PW-1 that
the respondents did not continue in possession from August, 1945. Th~re- H
746 SUPREME COURT REPORTS [1994] SUPP. 3 S.C.R.
A fore, the finding recorded by the High Court; in fact, was not necessary.
Even otherwise, that finding was recorded without adverting to all the
materictl evidence and that, the refore, the finding of possessl.on recorded
by the High Court is clearly illegal. ·
The appeal is accordingly allowed. The judgment and decree of the ·
B High Court is set aside and the judgment and decree of the appellate court
is reversed. No Costs.
G.N. Appeal allowed.
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