Friday, 25 April 2014

Civil court can decide issue of cost of improvement

 Perusal   of   the   aforesaid   section   makes   it 
clear that the aforesaid provision, to my mind, does 
not   anywhere   prohibit   adjudication   of   cost   of 
improvement by a civil court, nor does it provide for 
such   adjudication   being   made   by   the   Executing   Court 
at the time of eviction. As a matter of fact, it is a 
civil court, which decides all the issues between the 
parties, including the issue of damages etc. and such 
exercise would better be done by the civil court by 
framing an issue for levy of damages.   According to 
me, after all, assessment of costs for improvement is 
in the nature of damages to be awarded to the party. 
In normal civil proceedings, assessment of damages is 
to be made by the civil court only since the issue of 
damages   is   broadly   connected   with   the   other 
substantive  issue  to be decided  by the civil  court. 
At   any   rate,   according   to   me,   Section   51   of   the 
Transfer   of   Property   Act   does   not   prohibit   decision 
or assessment of the costs of improvement by regular 
civil   court.     It   may   be   that   even   executing   court 
make   an   assessment,   but   then   the   adjudicatory 
process,  even on the assessment,  deserves  not to be 
delayed   by   leaving   the   job   to   the   executing   Court. 
The   ultimate   object   is   to   avoid   multifarious 

proceedings and to curtail the length of litigation. 
"interest   republicae   ut   sit   finislitum"  that   is   to 
say;   it   concerns   the   state   that   there   should   be   an 
end   to   law   suits.     In   the   light   of   above,   I   am 
inclined   to   answer   the   question   in   the   affirmative. 
IN THE HIGH COURT OF JUDICATURE OF BOMBAY
BENCH AT AURANGABAD
SECOND APPEAL NO.283/1987 
Dhondiba Namdeorao Bhosale  
      VERSUS
Syed Ismail Syed Asadulla




­­­­­
                  CORAM:      A.B.CHAUDHARI    ,J.
DATE :     24th       June, 2013.
 Citation; 2014(2) ALL MR 261

1) This appeal is directed against the judgment 
and order dated 12.8.1987 in Regular Civil Appeal No. 
13/1982   decided   by   2nd  Additional   District   Judge, 
Latur,   by   which,   the   lower   appellate   court   reversed 
the judgment and decree of the trial court.
2) In   support   of   the   appeal,   Mr.   S.S.Bora, 
learned Counsel for the appellant, submitted that the 
Second Appeal is being pressed only in so far as the 
part   of   the   appellate   decree   in   Para   No.28   of   the 
judgment, setting aside the decree of the trial court 
in respect of costs of improvement.  Mr. Bora further 
submitted   that   no   other   points   are   being   raised   by 
him in this appeal except the above.
3) According   to   Mr.Bora,   the   lower   Appellate 
Court  placed reliance  on Section 51 of The Transfer 
of Property Act,1882 to come to the conclusion  that 
the Civil  Court cannot  decide  the issue about  costs 
of   improvement   and   the   issue   be   always   left   to   be 
decided   by   the   Executing   Court   when   the   execution 
proceedings are filed. The only reason, given by the 
lower  appellate court  for the said finding, is that 
the valuation of improvement can be estimated at the 
time   of   eviction   and,   therefore,   according   to   lower 
appellate    court,   it   was   not   necessary   to 

ascertain   valuation   of   improvement.     Assailing   this 
finding on the question of law, Mr.Bora argued  that 
the   said   part   of   Para   28   of   the   lower   appellate 
court’s judgment is illegal and will have to be set 
aside.
4) None appeared for the respondents.
5) Having   heard   the   learned   Counsel   for   the 
appellant   and   having   gone   through   the   impugned 
judgments   and   orders   passed   by   the   courts   below,   I 
frame following substantial question of law:
“Whether Section 51 of the Transfer of 
Property Act prohibits the civil court 
from   ascertaining   the   valuation   of 
improvement   costs   and   then   passing   a 
decree accordingly and whether the said 
exercise   of   assessment   should   be   left 
over to the executing court?”
My answer is No.
REASONS:
6) Section 51 of the Transfer of Property Act 
reads thus:
“51.   Improvements   made   by   bona   fide 
holders   under   defective   titles.­   When 
the   transferee   of   immovable   property 
makes any improvement on the property, 
believing   in   good   faith   that   he   is 
absolutely entitled thereto, and he is 
subsequently   evicted   therefrom   by   any 
person   having   a   better   title,   the 
transferee   has   a   right   to   require   the 
person   causing   the   eviction   either   to 
have   the   value   of   the   improvement 
estimated   and   paid   or   secured   to   the 
transferee, or to sell interest in the 
property to the transferee at the then 
market   value   thereof,   irrespective   of 
the   value   of   such   improvement.   The 

amount to be paid or secured in respect 
of   such   improvement   shall   be   the 
estimated value thereof at the time of 
the   eviction.   When,   under   the 
circumstances aforesaid, the transferee 
has   planted   or   sown   on   the   property 
crops   which   are   growing   when   he   is 
evicted   therefrom,   he   is   entitled   to 
such   crops   and   to   free   ingress   and 
egress to gather and carry them."
7) Perusal   of   the   aforesaid   section   makes   it 
clear that the aforesaid provision, to my mind, does 
not   anywhere   prohibit   adjudication   of   cost   of 
improvement by a civil court, nor does it provide for 
such   adjudication   being   made   by   the   Executing   Court 
at the time of eviction. As a matter of fact, it is a 
civil court, which decides all the issues between the 
parties, including the issue of damages etc. and such 
exercise would better be done by the civil court by 
framing an issue for levy of damages.   According to 
me, after all, assessment of costs for improvement is 
in the nature of damages to be awarded to the party. 
In normal civil proceedings, assessment of damages is 
to be made by the civil court only since the issue of 
damages   is   broadly   connected   with   the   other 
substantive  issue  to be decided  by the civil  court. 
At   any   rate,   according   to   me,   Section   51   of   the 
Transfer   of   Property   Act   does   not   prohibit   decision 
or assessment of the costs of improvement by regular 
civil   court.     It   may   be   that   even   executing   court 
make   an   assessment,   but   then   the   adjudicatory 
process,  even on the assessment,  deserves  not to be 
delayed   by   leaving   the   job   to   the   executing   Court. 
The   ultimate   object   is   to   avoid   multifarious 

proceedings and to curtail the length of litigation. 
"interest   republicae   ut   sit   finislitum"  that   is   to 
say;   it   concerns   the   state   that   there   should   be   an 
end   to   law   suits.     In   the   light   of   above,   I   am 
inclined   to   answer   the   question   in   the   affirmative. 
In the result, I make the following order.
ORDER
(i) The   Second   Appeal   No.283/1987   is   partly 
allowed;
(ii) The Judgment and order dated 12th August, 1987 
in   Regular   Civil   Appeal   No.13/198   passed   by 
the 2nd  Additional District Judge, Latur, with 
reference   to   observation   in   Para   28   of   the 
judgment only as to the order and decree about 
costs   of   improvement,   is   set   aside   by 
restoring   the   decree   of   the   trial   court   for 
cost of improvements;
(iii) Rest of the lower appellate court decree is 
confirmed.
                                      
                   sd/­
(A.B.CHAUDHARI)   
                     JUDGE
                                    
      
           

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