Civil Procedure Code, 1908 – Sections 89, 96, Order VII Rule 11, Order VI Rule 17 – Adverse Possession – Ownership Dispute – Ex-parte Decree – Agreement Credibility. The State of Madhya Pradesh appeals against the Madhya Pradesh High Court’s judgment, contesting the correctness of a decision that set aside a trial court order and directed compliance with an arbitrator’s award.The dispute arose from a civil suit filed by Satish Jain (deceased) against the State and others regarding ownership of land, alleging adverse possession by defendant No.1 and subsequent transfer of rights to the plaintiff.
The trial court initially decreed the suit ex-parte in favor of the plaintiff. However, the State appealed, contesting the delay in filing the appeal, which was eventually allowed, remanding the case to the trial court for further proceedings.
During the pendency of the suit, an agreement was entered into between the plaintiff and the Bhopal Municipal Corporation (BMC) regarding the disputed land’s use for constructing a bus stand.Subsequently, BMC filed an application under Section 89 CPC, seeking arbitration for settlement, which led to an arbitrator’s award.
The State objected to the award, contending that the land was still owned by the State and BMC had no authority to deal with it without State consent. The trial court accepted the State’s objections, setting aside the award. However, the High Court reversed this decision, prompting the State’s appeal to the Supreme Court.
The Supreme Court observed that the ex-parte decree had been set aside, rendering the basis of the agreement between the plaintiff and BMC questionable. The Court ruled that BMC, as an allottee of the State, was bound to utilize the land as per its designated purpose and should have taken steps to remove the plaintiff’s unauthorized possession.
It concluded that the trial court was justified in setting aside the arbitrator’s award, and the High Court erred in not considering the relevant aspects of the case.Consequently, the Supreme Court allowed the appeal, setting aside the High Court’s order and directing the trial court to proceed with the suit on its merits. (Para 7)
SUPREME COURT OF INDIA
2024 STPL(Web) 268 SC = 2024 INSC 315
State Of Madhya Pradesh Vs. Satish Jain (Dead) By Lrs & Ors.
Civil Appeal No.6884 OF 2012-Decided on 18-04-2024
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