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Issues Involved
1. Title and ownership of the Naroda chawl property. 2. Adverse possession claim by Defendant No. 6 (Chandrakanta). 3. Validity and impact of the oral gift and revenue entries. 4. Reliance on account books and other documentary evidence. 5. Collection and management of rent from the chawl. 6. Legal implications of symbolic versus actual possession. 7. Fiduciary relationship and its impact on adverse possession. Detailed Analysis 1. Title and Ownership of the Naroda Chawl Property The primary issue was the ownership of the Naroda chawl property, which was initially acquired by Bapalal in 1932 using ancestral joint funds. The High Court found that the property belonged to the joint family and was liable for partition. However, Defendant No. 6 contended that the property was gifted to her by Bapalal in 1946 and thus belonged exclusively to her. 2. Adverse Possession Claim by Defendant No. 6 (Chandrakanta) Defendant No. 6 claimed that she had acquired the property through adverse possession since 1946. The trial court accepted this claim, noting her exclusive possession and management of the property from 1946 onwards. However, the High Court reversed this finding, stating that her adverse possession began only in 1952, which was insufficient to establish a prescriptive title by the time the suit was filed in 1960. The Supreme Court, however, reinstated the trial court's decision, affirming her adverse possession from 1946. 3. Validity and Impact of the Oral Gift and Revenue Entries Defendant No. 6 relied on statements made by Bapalal to the Revenue authorities in 1946, which led to her name being mutated in the revenue records. The Supreme Court noted that while these entries indicated possession, they did not transfer title as no registered instrument was executed. The court emphasized that the presumption from the revenue entry was limited to possession, not ownership. 4. Reliance on Account Books and Other Documentary Evidence The High Court relied on account books and income tax returns to support the claim that the property was part of the joint family assets. However, the Supreme Court found these documents unreliable. The account books were not supported by primary evidence, and crucial documents like counter-foil rent receipts and income tax returns for the period 1946-1952 were not produced. The Supreme Court rejected the account books as unreliable. 5. Collection and Management of Rent from the Chawl The management of rent collection was a significant issue. Defendant No. 6 claimed that Defendant No. 1 managed the property on her behalf until 1952, after which she took direct control. The Supreme Court found that rent receipts issued during this period described the property as belonging to Chandrakanta, supporting her claim of adverse possession. 6. Legal Implications of Symbolic Versus Actual Possession The court addressed the argument that symbolic possession by the family continued due to the tenants' physical possession. The Supreme Court clarified that the title to the chawl as owner-landlord, subject to tenancy, was an interest in immovable property. The tenants' attornment to Defendant No. 6 and payment of rent to her established her effective possession, sufficient for adverse possession. 7. Fiduciary Relationship and Its Impact on Adverse Possession The court emphasized the fiduciary relationship between Defendant No. 1 and Defendant No. 6, noting that the possession of an agent is the possession of the principal. Defendant No. 1's management of the property on behalf of Defendant No. 6 could not be claimed as his own possession. The Supreme Court cited precedents to support this view, concluding that Defendant No. 6's adverse possession through her agent was valid. Conclusion The Supreme Court allowed the appeals, set aside the High Court's decision, and restored the trial court's judgment. It was held that Defendant No. 6 had been in exclusive adverse possession of the Naroda chawl from 1946 onwards, and the decrees for accounts against Defendants No. 6 and 7 were dismissed. The parties were directed to bear their own costs throughout.
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