Second Appeal: When facts established by Lower Courts can be disturbed

The crux of these appeals lies in a property dispute wherein one of the two brothers namely, Faqir Singh had allegedly sold off the portion of property belonging to him that his brother Gurbachan Singh and he inherited from their father namely Suchet Singh who died intestate in the year 1942. Gurcharan Singh (Respondent herein/plaintiff) bought a piece of land belonging to Faqir Singh measuring 4 marlas vide sale deed dated 19th December, 1978[Hereinafter referred to as “disputed property”] for a consideration of Rs. 6000. Thereafter, he was put in possession of such land however, it was forcibly taken by the Appellant Gurbachan Singh who stated that since Faqir Singh did not have any exclusive title or possession over the suit property, he could not purport to sell the same. (Para 2)

The Respondent (Gurcharan Singh) filed a suit for possession over such disputed property before the SubJudge 1st Class, Jullundur ( now Jalandhar ) , who, having considered the evidence led, framed certain issues and returned findings in favour of the Appellant (Gurbachan Singh) herein. On 1st appeal, the learned Additional District Judge upheld the judgement rendered by the court below on two grounds viz. that there is no document on record to prove that the disputed property had been given to Faqir Singh in a family partition; and that if Suchet Singh had indeed affected partition 50 or 60 years ago, then there should have been an entry in the revenue record to that effect, however, no such entry is to be found. (Para 3)

However, the formulation or lack thereof of the Court having framed substantial questions of law is not one of relevance to the instant dispute and therefore does not come to the aid of the Appellant herein. This case arises out of a dispute in Punjab and therefore, the rigors of section 100 do not apply. It has been held by this court that in appeals arising out of the state of Punjab or the State of Haryana, courts are not required to frame substantial questions of law as per section 100 of CPC. (Para 8)

It is clear to this court that the judgement of the learned single Judge sitting in second appellate jurisdiction cannot be faulted for not having framed substantial questions of law under section 100, CPC. (Para 11)

With reference to Ramdas (supra) and Gurmej Singh (supra) it is contended that Faqir Singh as a coowner sold a part of his share in an undivided property and therefore the purchaser only acquires such share but not the right to possess. It is only after such a joint holding is partitioned and a right of exclusive possession arises. With reference to Shyam Sunder(supra) it is submitted that a cosharer has a right to substitute himself in place of a stranger so as to prevent such a person from entering into family property. (Para 12)

As already noted above, another ground of objection taken by the Appellant is the fact of the impugned judgement entering into a reappreciation of evidence. While it is true that ordinarily, in second appeal, the court must not disturb facts established by the lower court or the first appellate court. However, it is also equally well recognised that this rule is not an absolute one or in other words, it is not a rule set in stone. In Nazir Mohamed (supra) this Court has recognised three conditions in which a court in such jurisdiction, may disturb findings of fact. They are:

“ (i) the courts below have ignored material evidence or acted on no evidence;

(ii) the courts have drawn wrong inferences from proved facts by applying the law erroneously; or

(iii) the courts have wrongly cast the burden of proof. A decision based on no evidence, does not refer only to cases where there is a total dearth of evidence, but also refers to case, where the evidence, taken as a whole, is not reasonably capable of supporting the finding.” (Para 14)

The Appellant has himself admitted to having sold one plot in favour of Atma Singh, claiming himself to be the exclusive owner of such property. A material contradiction then arises between the statement and one made earlier where he denies the property ever having been partitioned by his father in favour of himself and his brother. Nothing on record reflects the vires of the transaction ever having been challenged therefore the earlier part, described above, by nature of it being self-contradictory, stands falsified. DW3 has also, on oath testified to the factum of partition of the property by father of the Appellant, Suchet Singh. Although in the later part of his testimony he has tried to go back on his earlier statement and states that it was incorrect that the father of the Appellant had effected partition within his lifetime however, a conjoint reading of the statement of DW1 in regards to selling a portion of his property to Atma Singh as well as the examination in chief portion of the testimony of DW 3 suggests that, Suchet Singh had indeed partitioned the property. Hence, findings returned by the High Court in the impugned judgment cannot be faulted. (Para 16)

SUPREME COURT JUDGMENT

Citation: 2023 STPL(Web) 84 SC

Gurbachan Singh (Dead) Through Lrs Vs. Gurcharan Singh (Dead) Through Lrs and ors.

Civil Appeal Nos. 10556-10558 of 2010-Decided on 24-7-2023

https://stpllaw.in/wp-content/uploads/2023/07/2023-STPLWeb-84-SC.pdf

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Contract: Demurrage not allowed

Indian Contract Act, 1872 – Demurrage – Contractual Liability – Liquidated Damages – Breach of Contract – Adjudication of Claims – The petitioner, engaged in transportation business, participated in a competitive bidding process and was awarded a transportation contract by the Food Corporation of India (FCI). Dispute arose when FCI began deducting demurrage charges from petitioner’s bills for alleged delay in unloading wagons, despite petitioner not being responsible for wagon unloading.

The petitioner contested the deduction, arguing that as per the contract, demurrage cannot be unilaterally imposed by FCI unless liability is determined through due process of law.

The Court examined the relevant contract clause, which allowed FCI to recover costs, damages, etc., due to contractor’s negligence, but found it did not specifically authorize demurrage deduction.

Relying on the Supreme Court precedent in Food Corporation of India vs. Abhijit Paul, the Court held that demurrage could not be levied on the petitioner as the contract did not assign the task of wagon unloading to them.

The absence of a liquidated damages clause in the contract further supported the Court’s decision. The Court directed FCI to refund the deducted demurrage amount and refrain from further deductions, unless liability is determined through lawful adjudication.The order did not prevent FCI from seeking damages through proper legal channels. (Para 12, 15, 18, 22)

GAUHATI HIGH COURT

2023 STPL(Web) 184 Gauhati

[2024 STPL 1652 Gauhati]

Hi Speed Logistics Pvt Ltd. Vs. Food Corporation Of India And 5 Ors.

WP(C) 6317 of 2022-Decided on 8-11-2023

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Breach of peace: It must disturb public order, not just personal peace

Code of Criminal Procedure, 1973 – Sections 145, 146- Breach of peace – Emergency situation – Possession dispute – Civil litigation – Non-application of mind – Proceeding under Section 145 – Attachment under Section 146 – The application under Section 482 of the Code of Criminal Procedure, 1973 challenges the orders by the Executive Magistrate, concerning a dispute under Section 145 of the Code of Criminal Procedure, 1973 and subsequent attachment under Section 146(1) of the same.

The petitioner contests the legality of both orders, asserting that the initiation of the proceeding and the attachment were illegal and an abuse of process. It’s argued that the jurisdiction under Section 145 can only be invoked if there’s a likelihood of a breach of peace, which wasn’t sufficiently demonstrated in this case.

The petitioner highlights that the attachment order was passed ex-parte without affording them an opportunity to respond, which is contrary to the exceptional circumstances required for such an order. Reference is made to legal precedent discouraging parallel criminal proceedings when a civil litigation is pending regarding property possession, emphasizing the binding nature of civil court decrees.

The respondents counter by claiming entitlement to the land based on a partition deed and subsequent court judgments. They argue that emergency circumstances justified the attachment due to the petitioner’s attempt to construct on disputed land.

Legal precedents are cited to emphasize that the existence of an emergency, not just the use of the term “emergency,” warrants attachment under Section 146.

The judgment critically examines the orders and the circumstances leading to them. It observes discrepancies between the assertions made in the complaint and police report, highlighting the absence of clear grounds for apprehension of breach of peace.The judgment reiterates the requirement for a dispute likely to cause a breach of peace under Section 145, emphasizing that it must disturb public order, not just personal peace.

It concludes that the impugned orders suffer from non-application of mind and jurisdictional error, resulting in injustice to the petitioner. Consequently, both orders are quashed, and the petition is allowed. Important Paragraph Numbers of Judgment: (Para 13, 19, 30, 31)

GAUHATI HIGH COURT

2023 STPL(Web) 183 Gauhati

[2024 STPL 1651 Gauhati]

Md. Osman Ali Saikia And Anr. Vs. Chand Mahamod Saikia And 2 Ors.

Crl.Pet. 239 of 2021-Decided on 8-11-2023

https://stpllaw.in/wp-content/uploads/2024/05/2023-STPLWeb-183-Gauhati.pdf

 

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Electricity: Outstanding arrears from previous owner

Constitution of India, Article 226 – Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 – Electricity Act, 2003 – Section 43, 49, 50, 56 – Electricity – Outstanding arrears from previous owner – The petitioner, a partnership firm, sought a writ petition under Article 226 challenging a decision by the Assam Power Distribution Company Limited (APDCL) to deny a new electricity connection to their premises due to outstanding arrears from previous electricity bills.

The court directed interim relief for immediate electricity connection, subject to 50% payment of outstanding dues, with the remaining 50% to be paid upon dismissal of the writ petition.

The petitioner participated in an auction sale of a property and purchased a portion of land with a Business Centre cum Market Complex. They subsequently applied for a new electricity connection, which was denied by APDCL citing outstanding dues.

The court referred to the Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 and the Electricity Act, 2003. It cited a Supreme Court decision (K.C. Ninan vs. Kerala State Electricity Board) regarding the liability of auction purchasers for previous dues in properties sold on ‘as is where is’ basis.

The court dismissed the writ petition, holding the petitioner liable for outstanding electricity dues as per the auction sale agreement. It directed the petitioner to pay the outstanding dues as per the interim order, with APDCL waiving the accrued interest on the principal dues. (Para 15, 16)

GAUHATI HIGH COURT

2023 STPL(Web) 182 Gauhati

[2024 STPL 1650 Gauhati]

M/S Borah And Companyjiban Phukan Nagar Vs. Assam Power Distribution Company Ltd. And 3 Ors.

WP(C) 989 of 2014-Decided on 7-11-2023

2023 STPL(Web) 182 Gauhati

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