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Tuesday 8 April 2014

Construction made without consent-licence does not become irrevocable



The terms and conditions may be express or implied or even oral, 
which can be gathered from the nature and purpose for which the 
licence   is   granted.   The   conduct   of   the   parties   and   the 
circumstances may also be the relevant  factors to establish the 
facts.     If   the   construction   is   carried   out   and   the   expenses   are 

incurred without knowledge and consent of the licensor or behind 
his   back,   then   the   benefit   under   Section   60(b)   of   the   Indian 
Easements   Act   would   not   be   available   to   the   licensee,   as   he 
would be failing to establish that he has “acted upon the licence”.

 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR

Second Appeal No.47 of 1993

Bhaurao s/o Jagoji Junankar
V
1. Sau. Vandana w/o Moreshwar 
Korale,

Coram : R.K. Deshpande, J.

Dated   : 2   May, 2013
Citation; AIR 2014(NOC) 118 BOM

Regular Civil Suit No.62 of 1989 filed by the plaintiff 
for possession of the suit premises and recovery of damages, was 
dismissed   by   the   Trial   Court   by   the   judgment   and   order 
dated   18­7­1990.     In   Regular   Civil   Appeal   No.59   of   1990 
preferred by the plaintiff, the Appellate Court has reversed the 
decision of the Trial Court on 28­9­1992 and the suit is decreed, 

holding that the plaintiff is entitled to recovery of the possession 
of the suit property and directing the defendant to hand over the 
vacant   possession   thereof   to   the   plaintiff.     The   decree   for 
damages and future mesne profits has also been passed.  Hence, 
This   second   appeal   was   admitted   on   1­4­1993   on   the 
2.
the original defendant is before this Court in this second appeal.
substantial questions of law at serial Nos.(a) and (b) in para 17 of 
the memo of appeal, which are reproduced below :
“(a)
Whether in the absence of any proof as to the  
acquisition   of   title   to   the   Nazul   Plot   in   suit   by   the  
Plaintiff   of   her   predecessor,   the   Additional   District  
Judge was right in holding that the plot in suit is owned  
by the Plaintiff?
(b)
Whether, the document Exhibit 45 which is held  
to   be   gift­deed,   held   to   be   proved   when   none   of   the  
attesting witnesses is examined and the attestation is not  
proved?”    

3.

The Trial Court has recorded the finding that the plaintiff 
Geetabai has established that Trimbakrao was the owner of the 
suit property.  The Trial Court has, however, rejected the claim of 
the plaintiff for ownership of the suit property, based upon the 

registered   release­deed   dated   17­2­1987   at   Exhibit   45   on   the 
ground  that  the attesting  witness  has not  been examined.    The 
Trial   Court   has   further   held   that   the   plaintiff   has   failed   to 
establish that the defendant was occupying the suit premises as 
her licensee and the said licence was terminated on 31­5­1987.  In 
respect of the claim for damages, the Trial Court has held that the 
same   does   not   arise   for   consideration   in   view   of   the   findings 
recorded on the aforesaid issue.  The Trial Court has also rejected 
the contention of the defendant that he has perfected the title over 
the suit property by way of adverse possession.

4.

In   regular   civil   appeal,   the   Appellate   Court   has 
concurred with the finding recorded by the Trial Court regarding 
ownership of Trimbakrao.  The Appellate Court has further held 
that the plaintiff has proved her title to the suit property on the 

basis of the registered document of release­deed dated 17­2­1987 
at   Exhibit   45.   The   Appellate   Court   has   further   recorded   the 
finding that the defendant was occupying the suit premises as the 
licensee of the plaintiff and his licence was terminated by giving 
a notice dated 20­4­1987 at Exhibit 30.  The Appellate Court has 
defendant   has   failed   to   establish   his   title   by   way   of   adverse 
possession. 
also   concurred   with   the   finding   of   the   Trial   Court   that   the 
5.
The finding of the Courts below regarding ownership of 

Trimbakrao, is based upon the certified copies of tax issued by 
the   Gram   Panchayat   for   the   years   1962­63   to   1973­74   at 
Exhibit 39, the certified copy of Index No.II at Exhibit 32, and 
the certified copy of the resolution passed by the Gram Panchayat 
on   14­3­1987   at   Exhibit   33.   The   oral   evidence   of   PW   2 

Trimbakrao Deshmukh at Exhibit 44 has also been relied upon. 
The   finding   regarding   ownership   of   the   plaintiff   has   been 
recorded   on   the   basis   of   the   release­deed   dated   17­2­1987 
executed by Trimbakrao at Exhibit 45 and the oral evidence of 
Trimbakrao.   Thus,   the   finding   of   fact   recorded   by   the   Courts 
below is based upon the evidence available on record.   At any 
rate, it is a possible view of the matter, and hence the substantial 
question   of   law   at   serial   No.(a)   does   not   at   all   arise   for 
consideration.

On   the   substantial   question   of   law   at   serial   No.(b), 
6.

though the Appellate Court has not recorded any finding on the 
question of attestation over the document in question, the fact that 
the document is the registered release­deed, is not disputed. The 
decision   of  the  Apex Court  in the case  of  Surendra  Kumar  v. 

Nathulal,   reported   in  AIR   2001   SC   2040,   relied   upon   by 
Smt. Raskar, the learned counsel for the respondents, needs to be 
seen.  Para 12 therein being relevant, is reproduced below :
“12.
Section   123   of   the   Transfer   of   Property   Act,  
1882 provides :
“123. Transfer how effected.­­ For the purpose of  
making a gift of immovable property, the transfer must  
be effected by a registered instrument signed by or on  
behalf   of   the   donor,   and   attested   by   at   least   two  
witnesses.”
In the present case there exists a registered deed of  
gift signed by the donor and attested by two witnesses.  
Therefore, the requirement of the law as incorporated in  

the   Section   is   satisfied.     Section   68   of   the   Indian  
Evidence Act, 1872 makes a provision regarding proof  
of   execution   of   a   document   required   by   law   to   be  
attested.  Therein it is laid down that :

“If a document is required by law to be attested, it  
shall not be used as evidence until one attesting witness  
at least has been called for the purpose of proving its  
execution.    If   there   be  an  attesting   witness  alive,   and  
subject to the process of the Court and capable of giving  
evidence.”
The proviso to the section, which is relevant for the  
present purpose, reads :
“Provided that it shall  not be necessary to call an  
attesting   witness   in   proof   of   the   execution   of   any  
document, not being a will, which has been registered in  
accordance   with   the   provisions   of   the   Indian  
Registration Act, 1908 (16 of 1908), unless its execution  
by the person by whom it purports to have been executed  
is specifically denied.”
    (Emphasis supplied)
On a plain reading of the proviso, it is manifest that a  
registered   deed   of   gift   can   be   received   in   evidence  
without examining one of the attestors if the person who  
has executed the deed of gift has not specifically denied  
its execution.  In the present case, the donor Chand Bai  
has specifically admitted execution of the deed of gift in  

favour of the appellant.  Therefore, the lower appellate  
Court was in error in holding that the deed of gift has  
not been duly proved since one of the attestors has not  
been examined as witness.  Indeed the certified copy of  
the   registered   deed   of   gift   was   produced   in   the   trial  
Court along with an application filed by the plaintiff in  
the previous suit, Suit no.69/70(4/76) that the same may  
be called for.  The trial Court, being satisfied about the  
reason   for   non­production   of   the   original   document,  
marked   the   certified   copy   of   the   deed   of   gift   as  
Exhibit­3.” 
   
In   view   of   the   provisions   of   Section   123   of   the   Transfer   of 
Property   Act   and   Section   68   of   the   Indian   Evidence   Act,   the 
Apex Court has held that the registered gift­deed can be received 
in evidence without examining one of the attestors, if the person, 
who has executed the deed of gift, has not specifically denied its 
execution.  In the present case, undisputedly, the release­deed at 
Exhibit 45 was executed by Trimbakrao, who was examined as 
PW 2, and he has admitted the execution of the said document. 
The   substantial   question   of   law   at   serial   No.(b)   is,   therefore, 

answered, holding that it was not necessary, in the facts of this 
case,   to   examine   any  attesting  witness  to prove  the lease­deed 
dated 17­2­1987 at Exhibit 45.
It   is   urged   by   Shri   Kasat,   the   learned   counsel   for   the 
7.

appellants,   that   it   is   a   case   of   irrevocable   licence   covered   by 
Section 60(b) of the Easements Act, 1882.   He has invited my 
attention   to   the   pleadings   in   the   written   statement   and   the 
evidence on record.   He submits that it is an admitted position 
that the suit property was given to the defendant on licence and 
the defendant has raised a permanent construction and incurred 
the expenses in the execution.   Though, the point was raised in 
the written statement regarding irrevocable licence, no issue was 
framed by the Trial Court.   The Trial Court has dismissed the 
suit, rejecting  the claim of the defendant for title over the suit 

property   by   way   of   adverse   possession.   There   was   no 
cross­objection   by   the   defendant   in   the   appeal   filed   by   the 
plaintiff   challenging   the   dismissal   of   the   suit.     The   Appellate 
In the decision of the Apex Court in Ram Sarup Gupta  
ig
8.
Court has also not dealt with the question of irrevocable licence.  
(Dead)   By   LRs.  v.  Bishun   Narain   Inter   College   and   others, 
reported   in  (1987)  2 SCC  555, relied  upon by Shri  Kasat,  the 
learned counsel for the appellants, the Trial Court recorded the 
finding that the defendants had made permanent construction on 
the premises in suit, and, therefore, the licence granted to them 
was irrevocable under Section 60(b) of the Indian Easements Act, 
1882.     With   this   finding,   the   Trial   Court   dismissed   the   suit, 
holding   that   the   licensor   had   no   power   in   law   to   revoke   the 
licence and to obtain the possession of the property.  Before the 

High Court, the opinion was divided.  Shri D.N. Jha, J. affirmed 
the finding of the Trial Court and opined that the licence granted 
was irrevocable, whereas Shri K.S. Verma, J. took the contrary 
view, holding that the defendants had failed to raise the requisite 
plea   that   the   licence   granted   to   them   was   irrevocable,   as 

contemplated by Section 60(b)  of the said Act, and further failed 
to   produce   any   positive   evidence   to   prove   the   terms   and 
conditions of the licence showing that it was irrevocable.   The 
third Judge Shri T.S. Misra, J., to whom the matter was referred, 
concurred   with   the   view   expressed   by   Shri   D.N.   Jha,   J.   and 
upheld   the  dismissal  of  the suit.   The Apex  Court  specifically 
recorded   the   finding   that   the   pleadings,   evidence   and   the 
circumstances available on record have fully established that the 
licensor   had   granted   licence   to   the   School   in   respect   of   the 
building and the land attached to it for the purpose of imparting 

education   and   the   School,   in   furtherance   of   that   purpose, 
constructed   additional   buildings   and   incurred   expenses   in 
carrying out modifications and extensive repairs in the existing 
building.  The licensor never objected to it and there was nothing 
on record to show that the licensor had retained a right to revoke 
9.

the licence.  It confirmed the finding recorded by the Trial Court.
In para 12 of the said  decision  in  Ram Sarup  Gupta's 
case, cited supra, the Apex Court referred to the decisions of the 
various High Courts, wherein it was held that the three conditions 
are   required   to   be   fulfilled   under   Section   60(b)   of   the   Indian 
Easements Act to prove that the licence is irrevocable, and those 
are – (i) that the licensee executed work of a permanent nature, 
(ii) that he did so acting upon the licence, (iii) that he incurred 
expenses in doing so.  It was held in these decisions that the onus 

of proving these facts lay upon the licensee and in the absence of 
any   evidence   on   these   questions,   the   licence   could   not   be 
revocable under Section 60(b) of the said Act.  The Apex Court, 
however, did not comment upon the correctness of this view, but 
has held that in the case before it, all the three conditions were 
10. 

fulfilled, showing that the licence was irrevocable.
Smt. Raskar, the learned counsel for the respondents, has 
relied  upon  the decision  of this Court  in the case of  Tukaram  
Sawant v. Mangalalaxmi Chinubhai Shah and others, reported in 
1989 Mh.L.J. 197.  The relevant portion contained in para 9 of the 
said decision, is reproduced below :
“9.
... The important question is not as to the nature  
of the work that has been done by the Appellant.   The  
major hurdle that he has to cross is whether the work  
was done by him by acting upon the licence.  A licensee  

is   not   entitled   to   plead   irrevocability   because   he   has  
carried   out   a   work   of   permanent   nature   by   incurring  
expenditure.  He has to show that what he has done viz.  
executing a work of permanent nature, is pursuant to a  
right   granted   to   do   upon   the   land   of   the   grantors  
something which would be unlawful   in the absence of  
such   a   right.     To   quote   from   Gujarat   Ginning   and  
Manufacturing Co. Ltd. vs. Motilal Hirabhai Spinning  
and Manufacturing Co. ltd., AIR 1936 Privy Council 77:

“A man does not 'act upon a licence' if he does  
work   and   incurs   expense   upon   his   own  
property.     That   he   can   do   without   anyone's  
licence.  Work done by the licensee on his own  
land may be done without the knowledge of the  
licensor, and the alleged licensor's land cannot  
be held to be bound  in perpetuity  (subject  to  
section 62) as the result of some work done by  
the   alleged   licensee   on   his   own   property   of  
which the former was unaware.” 
This Court has taken a view that the licensee is not entitled to 
plead   irrevocability   because   he   has   carried   out   a   work   of 
permanent nature by incurring expenses and he has to show that 
what he has shown is pursuant to a right granted to do upon the 

land of the grantors something which would be unlawful in the 
absence of such a right.
11.
The   question   as   to   whether   the   licence   granted   was 
irrevocable   in   terms  of   Section   60(b)  of   the  Indian   Easements 

Act,   is   essentially   a   question   of   fact,   which   is   required   to   be 
pleaded and proved.  The burden is upon the person, who claims 
the benefit of Section 60(b) of the said Act to establish the three 
things   –   (i)   that   he   has   executed   the   work   of   a   permanent 
character,   (ii)   that   he   did   so   acting   upon   the   licence,   and 
(iii)   that   he   has   incurred   the   expenses   in   doing   so.     Merely 
because   there   is   a   work   of   permanent   character   executed   by 
incurring expenses, would not by itself be enough to establish that 
the licence was irrevocable, but a third condition that it was so 
done by acting upon the licence, is also required to be established. 

The terms and conditions may be express or implied or even oral, 
which can be gathered from the nature and purpose for which the 
licence   is   granted.   The   conduct   of   the   parties   and   the 
circumstances may also be the relevant  factors to establish the 
facts.     If   the   construction   is   carried   out   and   the   expenses   are 

incurred without knowledge and consent of the licensor or behind 
his   back,   then   the   benefit   under   Section   60(b)   of   the   Indian 
Easements   Act   would   not   be   available   to   the   licensee,   as   he 
would be failing to establish that he has “acted upon the licence”.
12.
With the assistance of the learned counsels appearing for 
the   parties,   I   have   gone   through   the   pleadings   and   evidence 
available   on   record.    Except  one­line  pleading  that  the licence 
was irrevocable under Section 60(b) of the Indian Easements Act 
and the defendant has acted on the basis of the licence, the facts 

regarding   the   purpose   of   granting   licence   and   the   terms   and 
conditions of such licence, are conspicuously absent.  Apart from 
this,   there   is   absolutely  no  evidence   brought   on  record  by  the 
defendant   to   show   that   the   work   of   a   permanent   nature   was 
carried out and the expenses were incurred by acting upon the 

licence.  In the decision of the Apex Court in Ram Sarup Gupta's 
case, cited supra, relied upon by Shri Kasat, the learned counsel 
for the appellants, turns upon the findings of fact recorded by the 
Trial Court, which were ultimately confirmed by the Apex Court, 
holding   that   the   pleadings,   evidence   and   the   circumstances 
available   on   record   establish   that   the   licence   was   granted   in 
respect of the building and land attached to it for the purpose of 
imparting education and the construction of additional buildings 
and   the   expenses   incurred   thereon   were   without   any   objection 
from   the   licensor.     The   decision   of   this   Court   in  Tukaram  

Sawant's  case, relied upon by Smt. Raskar, the learned counsel 
for   the   respondents,   clearly   supports   the   proposition   that   the 
licensee has to show that what he has done is pursuant to a right 
granted to him upon the land of the grantors.  In view of this, the 
In the result, the second appeal is dismissed. 
13.

claim for irrevocable license, is not substantiated.
                                                    Judge

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