P. SATYANARAYANAversusNANDYALA RAMA KRISHNA REDDY

                          [2021] 9 S.C.R. 489                              489


                       P. SATYANARAYANA                                    A
                                   v.
             NANDYALA RAMA KRISHNA REDDY
          (Special Leave Petition (Civil) No.11286 of 2021)
                        DECEMBER 16, 2021                                  B
  [HEMANT GUPTA AND V. RAMASUBRAMANIAN, JJ.]
       Suit – Respondent-plaintiff filed suit inter alia for declaration
that he is the absolute owner of the suit property – Also sought
interim injunction restraining the petitioner-defendant from
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interfering with his possession thereof – Interlocutory application
dismissed – Appeal by respondent – Allowed – While issuing notice
in the petition, Supreme Court observed that the withdrawal of prior
suit by vendor of the respondent would have bearing upon the
prayer for interim injunction in the present suit – Held: Prior suit
filed by the vendor of the respondent was only a suit for permanent        D
injunction and the dismissal of the application for injunction without
recording any finding relating to possession was of no consequence
– Previous proceeding will not be an impediment in the way of the
respondent filing the present suit and seeking an injunction –
Impugned order of High Court does not warrant any interference –
                                                                           E
Andhra Pradesh (Telangana Area) Tenancy and Agricultural Lands
Act, 1950 – s.38-E – Constitution of India – Art.136 – Code of Civil
Procedure, 1908 – Or.XLIII, r.1.
      Dismissing the petition, the Court
      HELD : 1.1 The Division Bench of the High Court, while               F
reversing the Order of the trial Court, pointed out: (i) that the
predecessor of the respondent-plaintiff was issued a certificate
under Exhibit P-21 dated 16.12.1975 under Section 38-E of the
Andhra Pradesh (Telangana Area) Tenancy and Agricultural Lands
Act, 1950; (ii) that the said certificate is proof enough to show
the passing of title in favour of the predecessor of the respondent-       G
plaintiff; (iii) that Exhibit P-17, which is Form 1-B (Record of
Rights) showed that prima facie the respondent was in possession
of the land on the date of institution of the suit; and (iv) that
therefore, the person in possession was entitled to an interim
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490            SUPREME COURT REPORTS                      [2021] 9 S.C.R.


A     order of protection. The High Court pointed out that the person
      under whom the defendant claimed title could not have acquired
      any right, under the sale deed dated 08.07.1980, after the issue
      of the certificate under Section 38-E of the Act in favour of the
      predecessor of the respondent-plaintiff on 16.12.1975. Insofar
      as the prior suit filed by the vendor of the respondent plaintiff is
B     concerned, the High Court pointed out that it was only a suit for
      permanent injunction and that the dismissal of the application for
      injunction without recording any finding relating to possession
      was of no consequence. The High Court took note of the fact
      that under Exhibit P-22, which is the Pahani for the year 2003-
      2004, there was a sub-division of the land in Survey No.272 into
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      Survey No. 272/A and 272/AA and that the Pahanis of all
      subsequent years in respect of Survey no.272/A were in favour
      of predecessors-in-title of the respondent-plaintiff. On the basis
      of these findings, the High Court reversed the Order of the trial
      Court and granted an interim injunction in favour of the
D     respondent-plaintiff. Therefore, this is not a case warranting
      interference under Article 136 of the Constitution. [Paras 10-
      13][493-G-H; 494-C-D; 495-A-B]
             1.2 At the time when this Court ordered notice in the above
      special leave petition on 2.08.2021, this Court was impressed
      prima facie with the argument that the withdrawal of the prior
E     suit by the vendor of the respondent-plaintiff would have a serious
      bearing upon the prayer for interim injunction in the present suit.
      Paragraph 52 of the Order of the High Court records reasons as
      to why the High Court thought that the previous proceeding will
      not be an impediment in the way of the respondent-plaintiff filing
      the present suit and seeking an injunction. As rightly observed
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      by the High Court, the dismissal of the application for
      injunction in the prior suit, was on account of the fact that the
      photographs showed the land to be an open vacant land.
      [Paras 14, 16][495-B-C, G-H]
             Thota Sridhar Reddy and Ors. vs. Mandala Ramulamma
G            and Others 2021 SCC Online SC 851 – relied on.
             CIVIL APPELLATE JURISDICTION : Special Leave Petition
      (Civil) No.11286 of 2021.
             From the Judgment and Order dated 02.06.2021 of the High Court
      for the State of Telangana, Hyderabad in Civil Miscellaneous Appeal
H     No.421 of 2020.
    P. SATYANARAYANA v. NANDYALA RAMA KRISHNA                                  491
                       REDDY

      Shyam Divan, Sr. Adv., D. Venkat Reddy, Ms. Mehak Jaggi,                 A
Sudipto Sircar, Challa Vivekananda Reddy, Ponnam Mahesh Babu,
Somanadri Goud Katam, Advs. for the Petitioner.
      D. Ramakrishna Reddy, S. Asif Ali Zaidi, Mrs. D. Bharathi Reddy,
Advs. for the Respondent.
      The Judgment of the Court was delivered by                               B

      V. RAMASUBRAMANIAN, J.
      1. The respondent herein filed a suit (i) for a declaration that he is
the absolute owner in possession and enjoyment of the suit schedule
property; (ii) for a further declaration that the Gift Settlement Deed         C
dated 24.07.1987 executed in favour of the petitioner herein was null
and void; and (iii) for a permanent injunction restraining the petitioner
herein from interfering with his possession and enjoyment.
       2. Pending suit the respondent also moved an interlocutory
application for an interim order of injunction restraining the petitioner      D
herein from interfering with his peaceful enjoyment and possession of
the suit property. By an Order dated 11.02.2020, the trial Court dismissed
the application for injunction.
       3. Challenging the said order of dismissal, the respondent filed an
appeal under Order XLIII, Rule 1 of the Code of Civil Procedure. By an
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Order dated 2.06.2021, the High Court for the State of Telangana at
Hyderabad allowed the appeal and granted an interim order of injunction
in favour of the respondent, pending disposal of the suit. It is against the
said order that the defendant in the suit has come up with the present
special leave petition.
                                                                               F
      4. We have heard Mr. Shyam Divan, learned senior advocate
appearing for the petitioner and Mr. D. Ramakrishna Reddy, learned
advocate appearing for the respondent.
       5. The suit schedule property is an agricultural dry land measuring
acres 1.00 Gts, out of the total extent of acres 2.20 Gts, in Survey No.
272/A, in Turkayamjal Village, Hayathnagar Revenue Mandal, Ranga               G
Reddy District, Telangana. The case of the respondent-plaintiff in the
suit was:
      (i)    that he purchased the suit schedule property under a
             registered Sale deed dated 09.12.2015 from one Mekala
             Ram Reddy;                                                        H
492      SUPREME COURT REPORTS                           [2021] 9 S.C.R.


A     (ii)    that the said Mekala Ram Reddy had purchased the suit
              property under a registered sale deed dated 25.11.2008 from
              one Pannala Ram Reddy and others;
      (iii) that after the purchase, he got the revenue records mutated
              in his name;
B     (iv) that the vendor of the plaintiff held Patta bearing No.1159
              and the respondent himself got a Pattadar passbook under
              Patta No.1464;
      (v) that when he started construction of a compound wall and
              a room in the suit property in January, 2016, the defendant
C             attempted to interfere, forcing the respondent-plaintiff to
              lodge a police complaint on 6.01.2016;
      (vi) that since the police did not take any action, the petitioner-
              defendant came to the spot on 08.01.2016 and tried to
              demolish the compound wall;
      (vi) that the petitioner-defendant also lodged a police complaint,
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              admitting the construction of the compound wall by the
              respondent plaintiff;
      (v) that when he perused the police compliant, he came to know
              that the petitioner-defendant was claiming title by virtue of
              a Gift Settlement Deed dated 24.07.1987;
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      (vi) that however, the enquiries made with the office of the
              Tehsildar indicated that what was in possession of the
              petitioner-defendant was the land in Survey No.272/AA and
              not Survey No.272/A; and
      (vii) that, therefore, he was constrained to file the suit.
F     6. In the written statement, the petitioner-defendant claimed:
      (i)     that the vendor of the respondent-plaintiff had earlier
              instituted a suit in O.S. No.603 of 2015 seeking a decree of
              permanent injunction;
      (ii) that the application for interim injunction filed in the said
G             suit was dismissed on 11.08.2015;
      (iii) that thereafter, the vendor of the respondent-plaintiff sold
              the property to the plaintiff under a registered Sale Deed
              dated 9.12.2015;
      (iv)   that after such sale, the vendor of the respondent-plaintiff
H            withdrew his suit as not pressed on 2.03.2016;
    P. SATYANARAYANA v. NANDYALA RAMA KRISHNA                                    493
           REDDY [V. RAMASUBRAMANIAN, J.]

       (v)    that the petitioner-defendant got the suit scheduled property      A
              under a Gift Settlement Deed dated 24.07.1987;
       (vi)   that, therefore, all subsequent sale transactions are not valid;
       (vii) that any mutation in revenue records and the issuance of
             Pattadar passbook are of no consequence; and
                                                                                 B
       (viii) that, therefore, the suit was liable to be dismissed.
       7. To substantiate his claim, the respondent-plaintiff filed the
registered Sale deed in his favour, the registered sale deed in favour of
his vendor, the original Pattadar Passbook in the name of his vendor, the
original Pattadar passbook in his own name, the original proceedings for         C
mutation, the copies of the Pahanis for the years 2007 to 2015 in favour
of the plaintiff, Pahani for the year 2015 in favour of the defendant in
respect of Survey No.272/AA and the copies of the police complaints.
       8. The petitioner-defendant, on his part filed the Gift Settlement
Deed in his favour dated 24.07.1987, the sale deed dated 08.07.1980,             D
the Raithu passbook of himself and his predecessor, the encumbrance
certificate, the copies of the plaint and written statement in the prior suit,
the order of dismissal of the application for injunction in the prior suit,
the order of dismissal of the prior suit after withdrawal and the copy of
the quash petition filed by the plaintiff before the High Court.
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       9. The trial Court dismissed the application for injunction primarily
on the ground inter alia that the suit instituted by the vendor of the
respondent-plaintiff was dismissed as withdrawn, after the dismissal of
the interim application for injunction; that the proceeding of Revenue
Division Officer dated 08.04.1996 filed by the petitioner-defendant
showed that the petitioner was in possession and enjoyment; and that             F
since there were nothing to show the sub-division of the land in Survey
No.272, no case was made out by the respondent-plaintiff for the grant
of an interim injunction.
       10. The Division Bench of the High Court, while reversing the
Order of the trial Court, pointed out: (i) that the predecessor of the           G
respondent-plaintiff was issued a certificate under Exhibit P-21 dated
16.12.1975 under Section 38-E of the Andhra Pradesh (Telangana Area)
Tenancy and Agricultural Lands Act, 1950; (ii) that the said certificate
is proof enough to show the passing of title in favour of the predecessor
of the respondent-plaintiff; (iii) that Exhibit P-17, which is Form 1-B
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494             SUPREME COURT REPORTS                           [2021] 9 S.C.R.


A     (Record of Rights) showed that prima facie the respondent was in
      possession of the land on the date of institution of the suit; and (iv) that
      therefore, the person in possession was entitled to an interim order of
      protection.
             11. The High Court also found Exhibit R-6 filed by the petitioner-
B     defendant which is the Occupancy Right Certificate issued on 08.04.1996,
      to be unbelievable, as the predecessor in title of the respondent-plaintiff
      had already been issued a certificate under Section 38-E of the aforesaid
      Act way back on 16.12.1975. The High Court pointed out that the person
      under whom the defendant claimed title, namely Gopamma Yadaiah,
      could not have acquired any right, under the sale deed dated 08.07.1980,
C     after the issue of the certificate under Section 38-E of the Act in favour
      of the predecessor of the respondent-plaintiff on 16.12.1975.
             12. Insofar as the prior suit filed by the vendor of the respondent-
      plaintiff is concerned, the High Court pointed out that it was only a suit
      for permanent injunction and that the dismissal of the application for
D     injunction without recording any finding relating to possession was of no
      consequence. The relevant portion of the impugned order of the High
      Court reads as follows:
            “52. It also seems to have misread the order passed on
            11.08.2015 in I.A. No. 510 of 2015 in O.S. No. 603 of 2015
E           (Ex. R10). In the said order, the Principal Senior Civil Judge,
            Ranga Reddy District observed merely that the photographs
            filed by the appellant’s vendor show that the land is open
            land without any construction and so also was the property
            of the respondent, and easementery rights of air and light
F           are prescriptive rights, and the appellant’s vendor has to prove
            acquisition of the said rights for the prescribed period. There
            is no mention therein about lack of possession and enjoyment
            of the appellant’s vendor. The above finding as recorded by
            the trial court also contradicts the claim of the respondent of
            constructing a compound wall around Acs. 2.00 gts. of land
G           and possessed by him as stated in para no.4 in Written Statement
            filed in O.S. No. 603 of 2015.”
             13. The High Court took note of the fact that under Exhibit P-22,
      which is the Pahani for the year 2003-2004, there was a sub-division of
      the land in Survey No.272 into Survey No. 272/A and 272/AA and that
H
    P. SATYANARAYANA v. NANDYALA RAMA KRISHNA                                      495
           REDDY [V. RAMASUBRAMANIAN, J.]

the Pahanis of all subsequent years in respect of Survey no.272/A were             A
in favour of predecessors-in-title of the respondent-plaintiff. On the basis
of these findings, the High Court reversed the Order of the trial Court
and granted an interim injunction in favour of the respondent-plaintiff.
Therefore, we do not think that this is a case warranting interference
under Article 136 of the Constitution.
                                                                                   B
       14. At the time when this Court ordered notice in the above special
leave petition on 2.08.2021, this Court was impressed prima facie with
the argument that the withdrawal of the prior suit by the vendor of the
respondent-plaintiff would have a serious bearing upon the prayer for
interim injunction in the present suit. Therefore, this Court, while ordering
notice on 2.08.2021 recorded as follows:                                           C

       “Learned counsel for the petitioner contends that the
       predecessor of the plaintiff filed O.S. No.603 of 2015 claiming
       permanent injunction in respect of land measuring 1 acre
       comprising Survey No.272 ad measuring 2 acres. Such suit
       was dismissed as not pressed on 02.03.2016. The plaintiff                   D
       has purchased the property comprising in Survey No.272 on
       09.12.2015. The purchaser filed a suit after purchase of the
       land in respect of which predecessor of the plaintiff has
       withdrawn suit. Therefore, the suit of the 2 plaintiff was not
       maintainable.                                                               E
       Notice, returnable within four weeks. In the meantime, parties
       to maintain status quo regarding possession.”
       15. On the basis of the above order, it was contended by Mr.
Shyam Divan, learned senior counsel for the petitioner that the
respondent-plaintiff was a purchaser pendente lite and that when his               F
suit itself is barred by law, he cannot be rewarded with an interim
injunction.
        16. But we are not impressed with the said submission. We have
already extracted paragraph 52 of the Order of the High Court which
records reasons as to why the High Court thought that the previous                 G
proceeding will not be an impediment in the way of the respondent-
plaintiff filing the present suit and seeking an injunction. As rightly observed
by the High Court, the dismissal of the application for injunction in the
prior suit, was on account of the fact that the photographs showed the
land to be an open vacant land.
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496               SUPREME COURT REPORTS                        [2021] 9 S.C.R.


A           17. In Thota Sridhar Reddy and Ors. vs. Mandala Ramulamma
      and Others1, this Court had an occasion to consider in extenso the rights
      conferred by Section 38-E of the Tenancy Act.
             18. Paragraph 48 of the said decision which reads as follows
      actually supports the view taken by the High Court in paragraph 49 of
B     the impugned order.
               “The appeals allegedly filed by the protected tenant against
               the grant of occupancy rights certificate and subsequently
               being withdrawn is wholly inconsequential as after the grant
               of ownership certificate in terms of Section 38-E of the
C              Tenancy Act, the protected tenants are deemed to be owners.
               Once the protected tenants are deemed to be owners, there
               could not be any occupancy rights certificate as the
               purchasers were divested of their ownership by virtue of the
               grant of ownership certificate under Section 38-E of the
               Tenancy Act. Such certificate was also not disputed by the
D              purchasers. Therefore, title of the protected tenants is complete
               and the ownership unambiguously vests with them.”
             19. In view of the above, we are of the considered opinion that
      the impugned order of the High Court does not warrant any interference
      under Article 136 of the Constitution. Hence, this Special Leave Petition
E     is dismissed.

      Divya Pandey                                               Petition dismissed.



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      1
          2021 SCC Online SC 851
H