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Supreme Court of India

SRI SHIVAJI BALARAM HAIBAITLversusSRI AVINASH MARUTHI PAWAR

Citation
2017 INSC 1126
Decided
20 November 2017
Disposal
Appeal(s) allowed

Holding

The Supreme Court held that the High Court erred in overturning the lower courts' findings; the lower courts' determinations on adverse possession were final, and the appeal is allowed.

Summary

The appellant purchased a shop and sued the respondent for possession, alleging the respondent occupied the shop without any right. The respondent denied the appellant's title and pleaded adverse possession, claiming long possession. The trial court and first appellate court held in favour of the appellant, finding the respondent an encroacher and denying his claim of adverse possession. On a second appeal under Section 100 of the CPC, the High Court reversed the decisions, holding the respondent was a tenant and that the remedy lay in a tenancy suit, a finding the Supreme Court said was not raised in the pleadings. The Supreme Court held that the High Court erred in framing only a general question of law, that findings of the lower courts on adverse possession were final, and that a court cannot record a finding beyond the pleadings. Consequently, the appeal was allowed, the High Court judgment set aside, and the trial and first appellate court judgments restored.

Issues considered

  • Whether the High Court correctly framed and decided a substantial question of law under Section 100 of the CPC in the second appeal.
  • Whether the findings of the trial and first appellate courts on adverse possession and encroachment are binding and final in the absence of a substantial question of law.
  • Whether a finding that the respondent was a tenant, not raised in the pleadings, can be recorded by the court.
  • Whether the appropriate remedy for the appellant is a possession suit or a tenancy suit under rent laws.

Legislation cited

Subjects

Second appealSection 100 CPCAdverse possessionPleadingsJurisdictionPossession suitTenantEncroachmentCivil procedureTransfer of Property Act

Judgment

                         [2017] 12 S.C.R. 344



A                 SRI SHIVAJI BALARAM HAIBAITl
                                    v.
                   SRI AVINASH MARUTHI PAWAR
                      (Civi!Appea!No. 19421 of2017)
B                         NOVEMBER 20, 2017
      [R. K. AGRAWAL AND ADHAY MANOHAR SAPRE, JJ.]
         Code of Civil Procedure, 1908 - s.100 - Second appeal -
  Appellant purchased a shop - He filed suit against respondent-
c defendant  for possession of the shop alleging that respondent was
  in possession of the same without any right, title and interest - Suit
  decreed by Trial court - First appeal filed by respondent, dismissed
  - Second Appeal filed by respondent in High Court was allowed -
  On appeal, held: High Court's finding that respondent was in
  occupation of the suit shop as tenant and that the remedy of
D appellant was to file suit under the Rent Laws and the 1882 Act, is
  illegal - Respondent never claimed that he was in possession of the
  suit shop as tenant of the appellant's predecessor-in~title - He
  asserted his ownership right over the suit shop on the basis of
  adverse possession - These issues, which were gone into by Courts
  below the High Court and were concurrently decided by them against
E
  the respondent, were binding on High Court - High Court framed a
  general question of law as to whether the findings of the Courts
  below it were contrary to the pleadings and evidence - In the absence
  of any question of law framed on any of the adverse findings
   recorded against the respondent by Courts below the High Court,
F those findings attained finality - Respondent was in possession of
  the suit shop as an encroache1' and failed to prove his adverse
  possession over the suit shop - Judgment of High Court is set aside
  - Judgments of First Appellate Court and Trial Court are restored -
   Transfer of Property Act, 1882 - Adverse possession.
G          Practice and Procedure - Pleadings - Held: Parties to the
    suit cannot travel beyond the pleadings - Court also cannot record
    any finding on the issues which are not part of pleadings - Court
    has to record the findings only on the issues which are part of the
    pleadings - Any finding recorded on an issue de hors the pleadings
    is without jurisdiction.
H
                                   344
     SRI SHIVAJI BALARAM HAIBATTI v. SRI AVINASH                        345
                   MARUTHI PAWAR

     Code of Civil Procedure, 1908 - s.100 - Second appeal -            A
Scope of - Discussed.
      Allowing the appeal, the Court
      HELD: I. Section 100 of the Code of Civil Procedure, 1908
deals with second appeals. Sub-sections ( 4) and (5) of Section
100 of the Code shows that, first, the High Court can hear the          B
second appeal only on the question so formulated; second, it has
jurisdiction to dismiss the second appeal if the respondent raises
an objection at the time of hearing that the question so formulated
does not arise in the case or is not a substantial question of law;
and third, it can hear the appeal on any other question not initially   c
framed, provided such question arises in the case and is a
substantial question of law. Such question can then be framed by
assigning the reasons. [Paras 17, 19] [349-D-H] [349-D-H]
      2.1 The High Court framed one general question of law as
to whether the findings of the two Courts below were contrary to        D
the pleadings and evidence. The High Court, however, did not
frame any other question of law to examine the legality and
correctness of any specific finding recorded by the Courts below
it on the issues framed. In the absence of any question of law
framed on any of the adverse findings recorded by the two Courts
below against the respondent, those findings attained finality.         E
[Paras 22-24] [350-D-E]
      2.2 The finding of the High Court that the respondent was
occupying the suit shop as tenant and, therefore, the remedy of
the appellant was in filing a tenancy suit against the respondent
and to claim his eviction from the suit shop under the State tenancy    F
laws or/and Transfer of Property Act in such suit, was wholly illegal
and unsustainable in law besides being against the pleading and
evidence for the following reasons: First, the respondent
(defendant) had not raised such plea in his written statement. In
other words, the respondent did not set up such defense in the          G
written statement. Second, the Trial Court, therefore, had no
occasion to frame any issue on such plea for want of any factual
foundation in the written statement. Third, the Trial Court and
First Appellate Court, in these circumstances, had no occasion
to record any finding on this plea either way. Fourth, in the light
                                                                        H
346            SUPREME COURT REPORTS                    [2017] 12 S.C.R.


A     of these three reasonings, the High Court ought to have seen
      that such plea really did not arise for consideration because in
      order that any question is involved in the case, the party concerned
      should lay its factual foundation in the pleading and invite finding
      on such plea. Fifth, the High Court failed to see the case set up
      by the respondent in his written statement that he had denied
B
      the appellant's title over the suit shop and then set up a plea of
      adverse possession. [Paras 24-26) [350-F-H; 351-A-C]
            2.3 the respondent never claimed that he was in possession
      of the suit shop as tenant of the appellant's predecessor-in-title.
      On the other hand, the respondent had asserted his ownership
c     right over the suit shop on the strength of his long adverse
      possession. It was these issues, which were gone into by the
      two Courts and were concurrently decided by them against the
      respondent. It is a settled principle of law that the parties to the
      suit cannot travel beyond the pleadings so also the Court cannot
D     record any finding on the issues which are not part of pleadings.
      The Court has to record the findings only on the issues which
      are part of the pleadings on which parties are" contesting the case.
      Any finding recorded on an issue de hors the pleadings is without
      jurisdiction. Such is the case here. [Paras 27-28] [351-D-G]

 E          3. The respondent was in possession of the suit shop as an
      encroacher and failed to prove his adverse possession over the
      suit shop. These findings being concurrent findings of fact were
      binding on the High Court and, therefore, the second appeal
      should have been dismissed i11 limine as involving no substantial
      question of law. [Para 33] [352-F-G]
 F
           CIVIL APPELLATE JURISDICTION: Civil Appeal No.19421
      of2017.
            From the Judgment and Order dated 04.04.2014 of the High Court
      of Karnataka at Dharwad Bench in Regular Second Appeal No. 213/
 G    2007.
             R. S. Hegde, Mrs. Farhat Jahan Rehmani, Rajeev Singh, Advs
      for the Appellant.
           Charuditta Mahindrakar, Aniruddha P. Mayee, Advs for the
      Respondent.
 H
      SRI SHIVAJI BALARAM HAIBATTI v. SRI AVINASH                             347
      MARUTHI PAWAR [ABHAY MANOHAR SAPRE, J.]

      The Judgment of the Court was delivered by                              A
      ABHAY MANOHAR SAPRE, J. I. Leave granted.
      2. This appeal is filed by the plaintiff against the final judgment
and order dated 04.04.2014 passed by the High Court of Karnataka,
Bench at Dharwad in Regular Second Appeal No.213/2007(INJ.)
whereby the High Court allowed the appeal filed by the respondent herein      B
and set aside the judgments and decrees of the Trial Court and First
Appellate Court.
      3. In order to appreciate the issues involved in the appeal, it is
necessary to state few relevant facts.
                                                                              c
      4. The appellant is the plaintiff whereas the respondent is the
defendant in the civil suit out of which this appeal arises.
        5. The dispute involved in the appeal relates to a shop measuring
9 ft. 9 inch North and 5 ft. East West situated out of land bearing CTS
1590/A-4 in the City of Belgaum (as detailed in plaint) (hereinafter          D
referred to as "suit shop").
       6. One Vithal Dhopeshwarkar was the owner of the suit shop
along with the land over which the suit shop is built and some adjoining
land. He sold the land and the suit shop to the appellant vide registered
sale deed dated 20.09.1997 (Annexure P-6). The respondent (defendant)
                                                                              E
was in possession of the suit shop even prior to its purchase by the
appellant from Vithal Dhopeshwarkar.
       7. On 08.06.1999, the appellant filed a civil suit being O.S. No.115/
1999 against the respondent in the Court of Civil Judge, Sr Division, .
Belgaum claiming possession of the suit shop from the respondent. The
                                                                             F
suit was founded on the allegations, inter alia, that the appellant is the
owner of the suit shop having purchased the same vide registered sale
deed dated 20.09.1997 from Vithal Dhopeshwarkar. It was alleged that
the respondent was in possession of the suit shop without any right, title
and interest of any nature.
       8. In other words, according to the appellant, the respondent, since   G
inception, was in illegal possession of the suit shop. The appellant, on
purchase of the suit shop, therefore, requested the respondent to vacate
the suit shop but he failed to vacate and hence the appellant became
entitled to claim possession of the suit shop from the respondent on the
                                                                              H
348             SUPREME COURT REPORTS                          [2017] 12 S.C.R.



A     strength of his ownership over the suit shop. A. relief of mesne profits at
      the rate of Rs.2500/- per month was also claimed.
            9. The respondent filed written statement. He denied the
      appellant's title and claimed that he has been in possession of the suit
      shop since "time immemorial" and much prior to the appellant's
B     purchasing the suit shop. The respondent also raised a plea that he has
      perfected his title by virtue of adverse possession over the suit shop
      against the predecessor-in-title of the appellant and the appellant.
             10. The Trial Court framed the issues. Parties led evidence. By
      judgment/decree elated 03.11.2003 in O.S. No.115 of2003, the Trial Court
 c    decreed the appellant's suit. The Trial Court held that the appellant is the
      owner of the suit shop, that the respondent failed to prove his adverse
      possession over the suit shop, that the respondent has been in illegal
      possession of the suit shop and that the appellant is entitled to claim
      eviction of the respondent from the suit shop and also entitled to claim
      mesne profits at the rate of Rs.2000/- p.m. for a period of three years
D     and the cost of Rs.5000/-. The Trial Court accordingly passed decree
      for possession and mesne profits against the respondent.
            11. The respondent, felt aggrieved, filed first appeal before the !st
      Additional District Judge, Belgaum being Regular Appeal No.58/2003.
      By judgment/decree dated 11.12.2006, the First Appellate Court dismissed
 E    the appeal and affirmed the judgment/decree of the Trial Court.
             12. The respondent, felt aggrieved, filed Second Appeal in the
      High Court of Kamataka (Dharwad Bench) being S.A. No. 213/2007
      under Section I 00 of the Code of Civil Procedure, 1908 (hereinafter
      referred to as "the Code"). The High Court, by impugned judgment,
 F    allowed the Second Appeal and while setting aside of the judgments and
      decrees of two Courts below dismissed the appellant's suit. The High
      Court held that the respondent was in possession of the suit shop as
      tenant and, therefore, the remedy of the appellant lies in filing the suit
      under the Rent Laws and the Transfer of Property Act for claiming
 G
      possession of the suit shop. It was held that the present suit is, therefore,
      not maintainable for passing a decree for possession against the
      respondent in respect of suit shop.
            13. Felt aggrieved, the plaintiff (appellant herein) has filed the
      present appeal by way of special leave before this Court.
 H
      SRI SHIVAJI BALARAM HAIBAITI v. SRI AVINASH                                349
      MARUTHI PAWAR [ABHAY MANOHAR SAPRE, J.]

      14. Heard Mr. R.S. Hegde, learned counsel for the appellant and            A
Mr. Charuditta Mahindrakar, learned counsel for the respondent.

        15. Having heard the learned counsel for the parties and on perusal
of the record of the case, we are constrained to allow the appeal and
while setting aside of the impugned judgment of the High Court restore
that of the Trial Court and First Appellate Court, which had rightly decreed     B
the appellant's suit against the respondent in relation to the suit shop.

       16. In our considered opinion, the approach of the.High Court in
deciding the second appeal, which resulted in allowing the respondent's
appeal, is wholly perverse a~d against the well settled principle of law
applicable to second appeals and to the factual controversy involved in          c
the case as would be clear from our reasons set out hereinbelow.

        17. Section 100 of the Code deals with second appeals. Sub-section
(4) says that where the High Court is satisfied that a substantial question
oflaw is involved in the case, it shall formulate that question. Sub-section
(5) says that the appeal shall be heard on the question "so formulated".         D
It further provides that the respondt'.nt is allowed to raise an objection at
the time of hearing of the appeal that the question which has been framed
does not involve in the case or in other words, is not a "substantial question
oflaw" and, therefore, the appeal is liable to be dismissed as involving
no substantial question of law within the meaning of Section 100 of the          E
Code.

       18. The proviso to sub-section (5), however, recogriizes the power
of the High Court to frame any other substantial question oflaw which
was not initially framed but in the opinion of the Court does arise in the
case. The Court can frame such question by assigning reasons.                    F
        19. Reading of sub-sections (4) and (5) of Section 100 of the
Code, in clear terms, shows that, first, the High Court can hear the
second appeal only on the question so formulated;. second, it has
jurisdiction to dismiss the second appeal if the respondent raises an
objection at the time of hearing that the question so formulated does not        G
arise in the case or is not a substantial question of law; and third, it can
hear the appeal on any other question not initially framed provided such
question arises in the case and is a substantial question of law. Such
question can then be framed by assigning the reasons.
                                                                                 H
350             SUPREME COURT REPORTS                          [2017] 12 S.C.R.



A           20. Now coming to the facts of the case, we find that the High
      Court had admitted the second appeal by framing the following question
      oflaw:
            "Whether the Courts below have committed an error in
            the manner of considering the pleadings as well as the
B           evidence available on record and as to whether the same is
            contrary to the recitals in the documents at Exhibit P.15?"
             21. Reading of the aforementioned question shows that the only
      question, which the High Court was required to consi.der in the appeal,
      was whether the Trial Court and First appellate Court decided the case
c     contrary to the pleadings and evidence and especially contrary to the
      recitals ofEX-P.15.
            22. The High Court, however, did not frame any other question of
      law to examine the legality and correctness of any specific finding
      recorded by the Courts below on the issues framed.
D           23. In the absence of any question of law framed on any of the
      adverse findings recorded by the two Courts below against the
      respondent, those findings attained finality. In other words, since no
      error was noticed in any of the findings of the two Courts below, the
      High Court did not frame any substantial question in relation to such
E     findings, which became final for want of any challenge.
             24. The High Court, however, framed one general question of
      law as to whether the findings of the two Courts below were contrary to
      the pleadings and evidence and especially to Ex-P-15 and held, by placing
      reliance on Ex.P-15, that the respondent was occupying the suit shop as
      tenant and, therefore, the remedy of the appellant was in filing a tenancy
 F
      suit against the respondent and to claim his eviction from the suit shop
      under the State tenancy laws or/and Transfer of Property Act in such
      suit but not in the present suit which is based on the strength of his title.
      The High Court, with this finding, accordingly allowed the appeal and
      dismissed the appellant's suit as being misconceived.
G
            25. In our considered opinion, the aforesaid finding of the High
      Court is wholly illegal and unsustainable in law besides being against the
      pleading and evidence. This we say for following reasons:
            26. First, the respondent (defendant) had not raised such plea in
      his written statement. In other words, the respondent did not set up
 H
      SRI SHIVAJI BALARAM HAIBATTI v. SRI AVINASH                            351
      MARUTHI PAWAR [ABHAY MANOHAR SAPRE, J.]

such defense in the written statement. Second, the Trial Court, therefore,   A
had no occasion to frame any issue on such plea for want of any factual
foundation in the written statement. Third, the Trial Court and First
Appellate Court, in these circumstances, had no occasion to record any
finding on this plea either way. Fourth, in the light of these three
reasonings, the High Court ought to have seen that such plea really did
                                                                             B
not arise for consideration because in order that any question is involved
in the case, the party concerned should lay its factual foundation in the
pleading and invite finding on such plea. Fifth, the High Court failed to
see the case set up by the respondent in his written statement. As
mentioned above, the defense of the respondent was that he had denied
the appellant's title over the suit shop and then set up a plea of adverse   c
possession contending that he has become the owner of the suit shop by
virtue of adverse possession, which according to him, was from time
immemorial.
        27. It was clear that the respondent never claimed that he was in
possession of the suit shop as tenant of the appellant's predecessor-in-     D
title. On the other hand, the respondent had asserted his ownership right
over the suit shop on the strength of his long adverse possession.
        28. It is these issues, which were gone into by the two Courts and
were concurrently decided by them against the respondent. These issues,
in our opinion, should have been examined by the High Court with a           E
view to find out as to whether these findings contain any legal error so
as to call for any interference in second appeal. The High Court, however,
did not undertake this exercise and rather affirmed these findings when
it did not consider it proper to frame any substantial question oflaw. It
is a settled principle of law that the parties to the suit' c<rnnot travel
                                                                             F
beyond the pleadings so also the Court cannot record any finding on the
issues which are not part of pleadings. In other words, the Court has to
record the findings only on the issues which are part of the pleadings on
which parties are contesting the case. Any finding recorded on an issue
de hors the pleadings is without jurisdiction. Such is the case here.
                                                                             G
      29. That apart, even if we examine the question framed by the
High Court as arising in the case, we are of the considered opinion that
the question has to be answered against the respondent (appellant before
the High Court) and in favour of the appellant herein for more than one
reason ri1entioned below.
                                                                             H
352             SUPREME COURT REPORTS                         [2017] 12 S.C.R.



A          30. First, the respondent did not adduce any evidence to prove
    that he was in possession of the suit shop as tenant of the appellant's
  . predecessor- in-title. In order to prove the tenancy between the
    respondent and the appellant's predecessor-in-title (Vithal
    Dhopeshwarkar), it was necessary for the respondent to have filed rent
    receipts/lease deed etc. and also to have examined his landlord who,
B
    according to him, had inducted him as tenant in the suit shop. It was not
    done.
          31. Second, Ex.P-15, which is sale deed of the suit shop nowhere
   recites that the respondent was in possession of the suit shop as tenant.

c All  that it recites is that the respondent has been in possession of the suit
   shop. Such recitals, in our opinion, no way confer the status of a tenant
 . on the respondent in the absence of any independent evidence adduced
   by him to prove the creation.of tenancy. No benefit of Ex.P-15 could
   thus be taken by the respondent to claim the status of a tenant.
             32. In the light ofaforementioned reasons, w'e are of the considered
D     opinion, that the High Court was not right in holding that the respondent
      was in occupation of the suit shop as tenant and that the remedy of the
      appellant was to file a civil suit to claim eviction under the Rent Laws.
      This finding, in our view, is contrary to the pleadings and evidence. It is
      also otherwise not legalfy sustainable for want of any evidence adduced
      by the respondent in support thereof.
              33. In view of foregoing discussion, we are of the considered
      'view that the Trial Court and First Appellate Court were justified in
       holding the appellant to be the owner of the suit shop, having purchased
       the same vide registered sale deed dated 20.09.1997 from its previous
 F     owner. It was alsq rightly held that the respondent was in possession of
       the suit shop as an encroacher and failed to prove his adverse possession
       over the suit shop. These findings being concurrent findings of fact were
       binding on the High Court and, therefore, the second appeal should have
       been dismissed in limine as involving no substantial question of law.

G           34. In the light of foregoing discussion, the appeal succeeds and is
      allowed. Impugned judgment of the High Court is set aside and as a
      consequence, the judgnients of the First Appellate Court and Trial Court
      are restored.


      Divya Paniiey                                                Appeal allowed.


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