LexaceLexace Ask the AI ›
โš–๏ธ Ask the AI about your situation:๐Ÿš— Car Accident๐Ÿ’ผ Work / Job๐Ÿ  Housing / Eviction๐Ÿ‘ช Family / Divorce๐Ÿ“‹ Contract Dispute๐Ÿ’ฐ Money Owed

CHANDY VARGHESE AND ORS. versus K. ABDUL KHADER AND ORS.

Citation: [2003] SUPP. 2 S.C.R. 322 · Decided: 08-08-2003 · Supreme Court of India · Bench: SHIVARAJ V. PATIL · Disposal: Dismissed

Open in Lexace · Ask the AI about this case

Judgment (excerpt)

A 
CHANDY VARGHESE AND ORS. 
v. 
K. ABDUL KHADER AND ORS. 
AUGUST 8, 2003 
. , 
B 
[SHIVARAJ V. PATIL AND D.M. DHARMADHIKARI, JJ.) 
Land Reforms: 
Kera/a Land Reforms Act, 1963-Section 106-Protection of lessee 
C against eviction-Applicability of-Held: When land is leased for commercial ยท 
or industrial purposes and lessee constructs building for such purposes before 
the appointed date, Section 106 is applicable-On facts, Courts below holding 
that the original owner never intended to transfer any interest in land to 
transferee but he acquired right to shed and machinery of saw mill as licensee-
D Document ineffectual to create leasehold right on land in favour of transferee, 
thus protection against eviction under Section 106 not available as rightly 
held by Courts below. 
Interpretation of statutes: 
E 
Document/transaction-Lease or licence-Held: The nature of document 
is gathered from the intention of the parties inferred from the terms of document. 
Words and Phrases: 
'Lease' -Meaning of in the context of Section 105 of the Transfer of 
p PropertyAct, 1882. 
'licence '-Meaning of-In the context of Section 52 of the Easement 
Act, 1882. 
Original plaintiff owned a suit land. Appellant's predecessors-in-
G interest took the land and constructed a shed for running a saw mill. 
Thereafter, the original plaintifrs wife and children purchased the mill 
and machineries of saw mill from the appellant's predecessors-in-interest 
who later sold it to K. Original owner's wife and children filed a suit for 
injunction and recovery of possession. Defendant contended that they were 
entitled to protection against eviction under Section 106 of the Kerala Land 
H 
322 
,I 
CHANDY VARGHESE v. K. ABDUL KHADER 
323 
Reforms Act, 1963 since they had obtained the lease of the land and had A 
constructed a shed for running saw mill on the same prior to the appointed 
date. Courts below relying upon various documents and transactions 
entered between the parties held that the document is ineffectual to create 
leasehold rights on the land in favour of the contesting defendant and 
passed decree of eviction and recovery of possession in favour of the 
original owner's wife and children. High Court upheld the order. Hence B 
the present appeal. 
Appellant contended that there was a transfer of leasehold rights of 
the original lessee of the land in favour of contesting defendant and the 
courts were wrong in not extending benefit of protection under Section C 
106 of the Act; and that the appellants trace title in favour of their 
predecessor as lessee of the land from transferor, who had himself obtained 
title to the suit property from legal representatives of the original owner 
under sale deed. 
Respondents contended that there is no ground for this Court to D 
interfere, under Article 136 of the Constitution with the concurrent 
findings of courts b.-!low. 
Dismissing the appeal, the Court 
HELD: 1. In cases where the dispute is about the nature of the E 
document to be a lease or licence, the question that has to be addressed 
by the Court to itself is what is the intention disclosed by the parties from 
the terms of the document or the transaction. Where the conclusion is that 
circumstance or conduct of the parties shows that all that was intended 
was that the occupier should have a personal privilege with no interest in 
the land, the transaction would be licence and not a lease. [334-A-BI 
F 
2.1. The courts below on proper interpretation of the documents 
made in the light of oral evidence on record concluded that the transferee 
of the shed and the machineries had only a licence to maintain them in 
the land and no right in land was intended to be created by the parties. G 
The original owner never intended to transfer any interest in land to the 
transferee. The transferee was found to be merely licensee for running 
Saw-Mill in the shed erected on the land. The said transferee being himself 
a licensee could not and was not found to have transferred any right in 
the land to original owner's wife and her children. (333-F, GI 
H 
324 
SUPREME COURT REPORTS [2003) SUPP. 2 S.C.R. 
A 
2.2. K acquired only right to shed and Saw-Mill from original 
owner's wife and her children as a licensee. He had a licence to enter upon 
the land for use of shed and the machineries and he could not have, 
therefore, conferred any leasehold rights in the land to contesting 
defendant. (334-A, BJ 
B 
2.3. From any of the documents on recor

Excerpt shown. Read the full judgment & AI analysis in Lexace.