Property and Title Disputes, Indore

Property litigation at Indore covers a wide range: disputes between family members over ancestral property, disputes between a purchaser and a seller over an agreement to sell, disputes over possession and encroachment, disputes arising from colonisation and plot allotment, and disputes over tenancy. Each is framed differently, and choosing the wrong relief is one of the most common and most expensive errors in this area.

The main kinds of property suit

Declaration of title. Where the dispute is about who owns the property, a suit for declaration under Section 34 of the Specific Relief Act. Where the plaintiff is out of possession, a declaration alone is not enough and the suit must also seek possession, otherwise it is liable to be dismissed as barred by the proviso to Section 34.

Possession. A suit for possession based on title, which carries a twelve year limitation period under Article 65 of the Limitation Act. Separately, a suit under Section 6 of the Specific Relief Act by a person dispossessed otherwise than in due course of law, which must be filed within six months and in which title is not examined.

Partition. A suit for partition and separate possession of a share in joint family or co owned property. A preliminary decree declares the shares and a final decree effects the division, often through a commissioner.

Specific performance. Where an agreement to sell has not been performed, a suit under the Specific Relief Act for a direction to execute the sale deed. The plaintiff must plead and prove readiness and willingness to perform throughout. The limitation period is three years from the date fixed for performance, or from when the plaintiff had notice of refusal.

Cancellation of an instrument. Where a sale deed or other document is said to be void or voidable, a suit for cancellation under Section 31 of the Specific Relief Act.

Injunction and stay

In practice the first contest in a property matter is over interim relief. An application under Order XXXIX Rules 1 and 2 for a temporary injunction restraining the other side from alienating the property, from raising construction, or from interfering with possession, is usually filed with the plaint. The court considers a prima facie case, the balance of convenience, and irreparable injury.

Where an injunction is granted and then disobeyed, the remedy lies under Order XXXIX Rule 2A. The chambers appear on applications of this kind on both sides.

Revenue records and the civil court

In Madhya Pradesh a great deal of confusion arises from the relationship between the revenue authorities and the civil court. Mutation in the revenue record under the Madhya Pradesh Land Revenue Code 1959 is a fiscal entry. It records who is liable to pay land revenue. It does not by itself create or extinguish title, and a mutation order is not a substitute for a decree of the civil court. Questions of title are for the civil court.

Conversely, proceedings for demarcation, for correction of records and for partition of agricultural holdings before the Tahsildar and the Sub Divisional Officer have their own hierarchy of appeal, and it is usually a mistake to run the same dispute in both forums without thinking about which one will actually decide the question.

Documents that matter

• The chain of title deeds, and the registered sale deed under the Registration Act 1908
• Khasra, khatauni and the relevant revenue entries
• The map and the diversion order where agricultural land has been converted
• Colonisation approval, layout approval and building permission where the property is in a developed colony
• Property tax receipts and electricity bills, which support possession though they do not prove title
• Any agreement to sell, receipt of part payment, or power of attorney

Frequently asked questions

Does a mutation entry in the revenue record prove ownership?

No. Mutation is an entry made for the purpose of revenue collection and it records the person liable to pay land revenue. It does not create, transfer or extinguish title. A dispute about ownership has to be decided by the civil court on the basis of title documents and evidence. A favourable mutation entry is useful material but it is not a decree.

What is the limitation period for a suit for possession of immovable property?

Twelve years from the date on which the possession of the defendant becomes adverse to the plaintiff, under Article 65 of the Limitation Act 1963. A suit under Section 6 of the Specific Relief Act by a person dispossessed without due course of law is different and must be brought within six months of dispossession.

Can the sale of a disputed property be stopped?

The usual course is to apply for a temporary injunction under Order XXXIX Rules 1 and 2 restraining alienation until the suit is decided. Whether an injunction is granted depends on the prima facie case, the balance of convenience and whether the injury would be irreparable. A notice of lis pendens under Section 52 of the Transfer of Property Act also operates once a suit is pending, so that a purchaser during the suit takes subject to the result.

What is the difference between a suit for specific performance and a suit for recovery of the advance?

A suit for specific performance asks the court to compel the seller to execute the sale deed and complete the transaction. A suit for recovery asks only for the money paid back, with interest and damages. The two point in different directions, and the choice affects the court fee, the limitation and the pleading of readiness and willingness. It should be made deliberately at the outset.

Is an unregistered agreement to sell of any use?

An agreement to sell does not itself transfer title, and an unregistered document affecting immovable property cannot be received in evidence of the transaction under Section 49 of the Registration Act. However, the proviso permits such a document to be received as evidence of part performance under Section 53A of the Transfer of Property Act and in a suit for specific performance. The position is narrow and depends on the terms of the document.