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Citation Codes
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citation codes
Case Number
Disposition
Advocates
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Acts
  • Section 119 of the Transfer of Property Act, 1882
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 119 of the Transfer of Property Act, 1882
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The appellant, Jattu Ram, originally owned 90 kanals 7 marlas of agricultural land in Village Malikzada. Hakam Singh (first respondent) agreed to exchange a contiguous block of 90 kanals 12 marlas in his ownership for the appellant’s scattered parcels. An additional payment was made by the appellant for the excess 5 marlas.

Subsequently, it emerged that Hakam Singh’s title was defective: he had purchased the land from Kartar Kaur and her two minor sons, whose 2/3rd undivided share could not be legally conveyed. The minors obtained a civil decree declaring the sale of their share void, compelling the appellant to surrender 52 kanals 10 marlas to them.

By oral understanding, Hakam Singh delivered 47 kanals 1 marla to compensate the appellant and promised further compensation and mutation in revenue records. When Hakam Singh began further alienating the land to respondents 2 – 9, the appellant sued for a declaration of title and consequential relief.

Procedural history:

  • Trial Court (Addl. Senior Sub-Judge, Ferozepore) decreed the suit on 8 September 1983 (Case No. 253-1 of 1981).
  • First Appeal (Addl. District Judge, Civil Appeal No. 161 of 1983) allowed on 12 February 1986, dismissing the suit.
  • Second Appeal (Punjab & Haryana High Court, R.S.A. No. 758 of 1986) dismissed in limine.
  • Present appeal before the Supreme Court is by special leave.

Legal Issues Presented

  1. Whether the appellant’s possession of 47 kanals 1 marla is pursuant to a valid exchange compensating the loss caused by the minors’ decree, or merely as a tenant-at-will under Hakam Singh.
  2. Whether Section 119 of the Transfer of Property Act, 1882, obliges Hakam Singh to restore equivalent land (or compensation) for the land from which the appellant was evicted due to defective title.
  3. Whether the findings of the First Appellate Court and the High Court—based chiefly on a Patwari’s Jamabandi entry—are perverse in law.

Arguments of the Parties

Appellant’s Arguments

  • The exchange was complete and acted upon; possession of 47 kanals 1 marla was delivered as partial compensation for the 52 kanals 10 marlas lost due to defective title.
  • Under Section 119 of the Transfer of Property Act, the first respondent must compensate or return land equivalent to what the appellant lost.
  • Jamabandi entries are fiscal in nature, do not create title, and the solitary entry suggesting tenancy is fabricated.

Respondent No. 1 (Hakam Singh) Arguments

  • Admitted the exchange agreement and the minors’ successful suit, but claimed the appellant voluntarily surrendered land without his consent.
  • Alleged that the appellant’s present possession is only as tenant-at-will; no rent was demanded after initial delivery because of informal understanding.
  • Pointed to Jamabandi entry showing the appellant as a tenant to support the tenancy theory.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court anchored its analysis on Section 119 of the Transfer of Property Act, 1882, which imposes liability on a party to an exchange whose defective title causes deprivation to the other party. The Court noted that:

  • The appellant was indisputably deprived of 52 kanals 10 marlas because the respondent’s title was defective.
  • An oral understanding followed whereby 47 kanals 1 marla was delivered to the appellant; this is corroborated by the “Tassawar Tabadla” (exchange) notation in column 9 of Ex. P-8 Jamabandi.
  • Jamabandi entries serve fiscal purposes only and cannot displace contractual rights; reliance by the First Appellate Court on a solitary Patwari entry labeling the appellant a tenant was legally misplaced.
  • The respondent’s own admission that no rent was paid after delivery of possession undermines the tenancy-at-will plea, exposing it as “deliberate, desperate and false.”
  • Consequently, the First Appellate Court’s finding—upheld summarily by the High Court—was termed “perverse” and “manifestly illegal.”

Holding and Implications

Holding: The Supreme Court allowed the appeal, set aside the judgments of the Additional District Judge and the High Court, and restored the trial court’s decree in favour of the appellant, with costs throughout.

Implications: The decision reinstates the appellant’s declaratory rights under the exchange and affirms the statutory duty under Section 119 of the Transfer of Property Act to compensate for deprivation caused by defective title. No broader doctrinal shift or new precedent was articulated.

    Jattu Ram v. Hakam Singh And Others

    K. Ramaswamy, J.— This appeal by special leave is at the behest of the plaintiff-Jattu Ram. He laid a suit for declaration that Hakam Singh, the first respondent, had delivered possession of the plaint scheduled property in exchange and for consequential orders in case No. 253-1 of 1981 by Addl. Senior Sub-Judge, Ferozepore, decreed on September 8, 1983. On appeal, the Additional District Judge in Civil Appeal No. 161 of 1983 allowed the appeal and dismissed the suit on February 12, 1986. The High Court of Punjab & Haryana in R.S.A No. 758 of 1986 dismissed the appeal in limine.

    2. The admitted facts are that the appellant was possessed of 90 kanals 7 marlas of land scattered at different places in the village Malikzada. The first respondent had agreed to exchange those lands with his land to an extent of 90 kanals 12 marlas and for the excess 5 marlas, the appellant had paid the money. It transpired later on that the first respondent had defective title of his lands since he had purchased from Kartar Kaur and her two minor sons. The minor sons filed a civil suit against Hakam Singh claiming 2/3rd share and the civil court decreed the suit holding that the sale made by the mother of their 2/3rd share was void. Consequently on demand made by the minors, the appellant had to surrender 52 kanals 10 marlas of land to the minor sons of Kartar Kaur. As compensation thereof, the first respondent delivered 47 kanals 1 marla of land and promised to pay compensation for the balance loss of land and also promised to get mutation effected in the revenue records. Thereafter, when the first respondent started alienating the land in favour of respondents 2 to 9, the appellant filed the above suit. The first respondent admitted the factum of the exchange as well as his purchasing the property from and decree of the civil court that sale to the extent of 2/3rd share of minors was void and that the appellant had parted with possession of 52 kanals and 10 marlas of lands in favour of the minors. However, he pleaded that the appellant had without his consent, voluntarily parted with possession of the lands. He further averred that the lands in the possession of the appellant are only as tenant-at-will. Yet the first respondent had admitted that no rent was paid after the delivery of the possession of 47 kanals 1 marla. The appellate court also found in column 9 of Ex. P-8 Jamabandi “Tassawar Tabadla” (as a result of exchange), but however, it proceeded on the premise posing a question in the beginning of the consideration whether the appellant came into possession only as a tenant and based on the entry of the Patwari in that behalf, without any further evidence, concluded that the appellant was only a tenant. The question, on these admitted facts, is whether the appellant is in possession of the plaint scheduled lands on exchange as a consequence of compensating him for the loss of 52 kanals 10 marlas.

    3. Section 119 of the Transfer of Property Act, 1882 (for short ‘the Act’) envisages that if any party to an exchange … is by reason of any defect in title of the other party deprived of the thing or any part of the thing received by him in exchange, then, unless a contrary intention appears from the terms of the exchange, such other party is liable to him …. for the return of the thing transferred….” The admitted case is that the appellant had exchanged his lands with the first respondent. Due to defect in title, the first respondent had suffered a decree of 2/3rd share of the minors who had admittedly taken possession of an extent of 52 kanals 10 marlas from the appellant. The appellant was deprived of that property and the first respondent is liable to return to the appellant to the extent of 52 kanals 10 marlas. Obviously, in furtherance of the oral understanding the appellant came in possession of 47 kanals 1 marla in exchange. The entry in column 9 thus fortifies the stand of the appellant. The sole entry on which the appellate court placed implicit reliance is by the Patwari in Jamabandi. It is settled law that the Jamabandi entries are only for fiscal purpose and they create no title. It is not the case that the appellant had any knowledge and acquiesced to it. Therefore, it is a classic instance of fabrication of false entries made by the Patwari, contrary to the contract made by the parties, though oral. The first respondent admitted that he received no rent from the appellant. Thus it is clear that the plea of the first respondent that the appellant was his lessee-at-will is a false one. It is not his case that for the loss suffered by the appellant, the respondent had compensated him by paying the price of that land. It is, therefore, too credulous to believe that he let the appellant in possession of the plaint scheduled property as a tenant-at-will and it is a deliberate, desperate and false plea set up by him, which unfortunately found favour with the appellate court and the High Court paid no attention to go into the crucial question and dismissed the appeal as usual, in limine. The contention of Shri Ujagar Singh, the learned senior counsel that the appellant's sons purchased 8 kanals of land from his client was a step in aid to hoodwink the innocent appellant and self-serving. Thus we are constrained to hold that the decree of the appellate court is perverse, apart from being manifestly illegal. It and the High Court decree are accordingly set aside and that of the trial court is restored and the appeal is allowed with costs throughout.

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    Comments

    Jattu Ram v. Hakam Singh And Others
    (Sep 15, 1993)