01.04.2026 vs Of on 20 May, 2026

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    ADVERTISEMENT

    Himachal Pradesh High Court

    Reserved On: 01.04.2026 vs Of on 20 May, 2026

                                                                                       2026:HHC:18430
    
    
    
    
         IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
    
                                                  RSA No. 31 of 2012
    
    
    
    
                                                                                       .
                                                  Reserved on: 01.04.2026
    
    
    
    
    
                                                  Date of Decision: 20.05.2026
    
    
    
    
    
        State of H.P. & Ors                                                           ...Appellants
                                              Versus
    
    
    
    
                                                         of
        Jai Dev (deceased) through LRs                                               ...Respondents
    
    
        Coram
                               rt
        Hon'ble Mr Justice Rakesh Kainthla, Judge.
    
        Whether approved for reporting?1 Yes
    
    
        For the Appellants No.1 &                  : Mr    Ashok    Sood, Senior
    
    
    
        2                                            Advocate, with Mr Khem Raj,
                                                     Advocate.
    
    
    
    
        For the Appellant No.3                     : M/s Akhil Mittal and Abhinav
                                                     Purohit, Advocates.
    
    
    
    
    
        For the Respondents No. 1 : Mr   V.S.   Chauhan,  Senior
        (a) to 1(c)                 Advocate,   with   Mr   Arsh
    
    
    
    
    
                                    Chauhan, Advocate.
    
        For the Respondents No. : None
        1(d) to 1(f)
    
        Name of respondents No.1(g) deleted vide order dated
        29.09.2023.
    
    
    
    
    1   Whether reporters of Local Papers may be allowed to see the judgment? Yes.
    
    
    
    
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                                                                 2026:HHC:18430
    
    
    
        Rakesh Kainthla, Judge
    

    The present appeal is directed against the judgment

    .

    SPONSORED

    and decree dated 30.09.2011 passed by the learned District Judge,

    Mandi (learned Appellate Court) vide which the judgment and

    decree dated 19.11.2008 passed by the learned Civil Judge (Junior

    of
    Division) Court No.2, Mandi, District Mandi, H.P. (learned Trial

    Court) were set aside. (The parties shall hereinafter be referred to
    rt
    in the same manner as they were arrayed before the learned trial

    Court for convenience).

    2. Briefly stated, the facts giving rise to the present

    appeal are that the plaintiff filed a civil suit seeking a declaration

    that he has become the owner of the suit land described in para-

    1 of the plaint by way of the adverse possession and the revenue

    entries to the contrary are null and void. A decree of permanent

    prohibitory injunction for restraining the defendants from

    interfering with the suit land was also prayed. It was asserted

    that some portion of the suit land was in exclusive ownership

    and possession, and some portion was in exclusive possession of

    the plaintiff’s grandfather in the year 1955-56. The defendant

    No.1 acquired about one thousand bighas of land, including the

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    suit land. However, no compensation was paid to the plaintiff or

    his grandfather. The defendants did not take possession of the

    .

    acquired land, and the suit land remained in the exclusive

    possession of the plaintiff’s grandfather, the plaintiff’s father

    and the plaintiff. Defendant No.3 tried to take forcible

    possession of the suit land and dispossess the plaintiff on

    of
    15.12.1969, but they were not allowed to do so. The plaintiff’s

    possession over the suit land is continuous, hostile, notorious,
    rt
    uninterrupted, and to the knowledge of the defendants, and the

    plaintiff has become the owner by way of adverse possession.

    The plaintiff filed an application for restoration of the land

    under the standing order No. 28, para No. 87 A of the Land

    Acquisition Act. The proceedings remained pending before the

    learned Deputy Commissioner, and no order was passed. The

    defendants started interfering with the plaintiff’s possession.

    Hence, the suit was filed to seek the relief mentioned above.

    3. The suit was opposed by the defendants by filing a

    written statement taking preliminary objections regarding lack

    of maintainability, cause of action, locus-standi and the suit

    being barred by limitation. The contents of the plaint were

    denied on the merits. It was asserted that the defendants have

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    been in possession of the suit land since the year 1955-1956,

    after its acquisition by the State. The defendants had taken

    .

    possession of the suit land from the plaintiff’s predecessor, and

    they used the suit land for producing fodder and grazing

    animals. Year-wise record of green fodder produced from the

    farm area was entered in the Crop Register maintained in the

    of
    Government Livestock, Farm Kamand, District Mandi, H.P. The

    defendants also raised buildings and improved the suit land. The
    rt
    suit was filed without any basis. Hence, it was prayed that the

    suit be dismissed.

    4. A replication denying the contents of the written

    statement and affirming those of the plaint was filed.

    5. The following issues were framed by the learned

    Trial Court on 21.07.2007:

    1. Whether the plaintiff has become the owner of the suit
    land by way of adverse possession, as alleged? OPP.

    2. Whether the plaintiff is entitled for the relief of
    permanent prohibitory injunction, as prayed? OPP.

    3. Whether the suit is not maintainable, as alleged? OPD

    4. Whether the plaintiff has no locus standi to sue as
    alleged? OPD

    5. Whether the suit is barred by limitation, as alleged? OPD

    6. Whether the plaintiff is having no cause of action to file
    the present suit, as alleged? OPD

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    7. Relief.

    6. The parties were called upon to produce the evidence,

    .

    and the plaintiff examined himself (PW1), Tula Ram (PW2) and

    Shiv Kumar (PW3). The defendants examined Yograj (DW1).

    7. Learned Trial Court held that the plaintiff failed to

    prove the adverse possession. The plaintiff had not challenged

    of
    the correctness of the acquisition. The evidence of the

    defendants showed that the land was being used for grazing
    rt
    cattle and growing fodder. Hence, the learned Trial Court

    answered issues 1 to 5 in negative, issue No.6 in the affirmative

    and dismissed the plaintiff’s suit.

    8. Being aggrieved by the judgment and decree passed

    by the learned Trial Court, the plaintiff filed an appeal, which

    was decided by the learned District Judge, Mandi, District

    Mandi, H.P. (learned Appellate Court). Learned Appellate Court

    held that it was not disputed that some portion of the suit land

    was in exclusive ownership, and some portion was in possession

    of the plaintiff’s grandfather. The defendants claimed that the

    suit land was acquired along with the other land, but they did

    not produce any evidence of acquisition. The defendants failed

    to prove that they had taken possession of the suit land after its

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    acquisition. The revenue entries and the mutation were

    insufficient to prove the defendants’ possession. Learned Trial

    .

    Court erred in holding that the suit land was validly acquired by

    the State of H.P. Hence, the learned Appellate Court allowed the

    appeal and set aside the judgment and decree passed by the

    learned Trial Court.

    of

    9. Being aggrieved by the judgment and decree passed
    rt
    by the learned Appellate Court, the defendants have filed the

    present appeal, which was admitted on the following substantial

    questions of law vide order dated 24.12.2012: –

    1. Whether First Appellate Court committed error of law in
    ignoring 56 years long standing entries of ownership and
    possession of the defendants over the suit land for the

    last 56 years simply on the ground that the defendants
    have not produced the supporting documents of

    acquisition proceedings and Award of suit land on the
    basis of which revenue entries were made in favour of the
    defendants in the year 1955-56, particularly when fact of

    acquisition of suit land admitted by the plaintiff?

    2. Whether the First Appellate Court had committed
    illegality in granting relief of declaration of ownership
    and possession to the plaintiff when only the claim of title
    on the basis of adverse possession as pleaded by the
    plaintiff was rejected, not upheld by both the Courts
    below?

    3. Whether under law, a strong presumption of truth is
    attached to constant, long-standing revenue entries of
    ownership and possession of the defendants, which have
    not been rebutted by any oral or documentary evidence by

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    the plaintiff, the onus of rebutting the same heavily lies
    on the plaintiff?

    4. Whether, once the acquired land and property vests in the

    .

    defendants free from all encumbrances under Section 16

    of the Land Acquisition Act, whether its original owner or
    their successors (in the present case, the plaintiff) has
    any right to claim adverse possession on such acquired

    land?

    5. Whether the courts below erred in not deciding the issue
    of limitation when apparently the suit is time-barred on

    of
    the face of it as land was acquired and mutation was
    attested 56 years ago in favour of the defendants?

    6. Whether the First Appellate Court misconstrued and
    rt
    misread the case law referred to in the impugned
    judgment, which is neither applicable nor attracted to the

    facts and circumstances of the present case by any stretch
    of imagination?

    10. I have heard Mr Ashok Sood, learned Senior Counsel,

    assisted by Mr Khem Raj, learned counsel for appellants No.1

    and 2, M/s Akhil Mittal and Abhinav Purohit, learned counsel for

    appellant No.3, and Mr V.S. Chauhan, learned Senior Counsel,

    assisted by Mr Arsh Chauhan, learned counsel for respondents

    No.1 (a) to 1(c).

    11. Mr Ashok Sood, learned Senior Counsel for

    appellants No.1 and 2, submitted that the learned Appellate

    Court erred in reversing the well-reasoned judgment passed by

    the learned Trial Court. The plaintiff had not obtained any

    demarcation to identify the land in his possession. The plaintiff

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    had admitted in the plaint that the land was acquired by the

    State of H.P., and this fact was not in dispute. The ingredients of

    .

    adverse possession were not satisfied, and the learned Appellate

    Court erred in decreeing the suit. Hence, he prayed that the

    present appeal be allowed and the judgment and decree passed

    by the learned Appellate Court be set aside. He relied upon the

    of
    judgments in Himat Rai vs. Kehar Singh 2008(4) CCC 778, H.N.

    Jagannath and others vs. State of Karnataka and others (2018) 11
    rt
    SCC 104, Indira Nehru Gandhi vs. Raj Narain AIR 1975 SC 2299,

    Mandal Revenue Officer vs. Goundla Venkaiah and another (2010)

    2 SCC 461, R. Hanumaiah and another vs. Secretary to Govt of

    Karnatka, Revenue Department and others (2010) 5 SCC 203,

    Charan Dass vs. State of H.P. 2024 (3) Shim. LC 1382, Jeet Singh

    (since deceased) through LRs vs. Molu Ram (since deceased)

    through L.Rs 2010(4) CCC 417, Karnatka Board of Wakf vs

    Government of India & Ors. 2004(3) CCC 326, Gajinder Singh & Ors.

    vs. Narotam Singh & Ors. 1996(1) CCC 384 (2) and Komiah vs.

    Subbulakshmiamal and Soundaraja decided on 01.03.2002 in

    support of his submission. He has also filed written arguments,

    which have been perused by me.

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    12. Mr Akhil Mittal, learned counsel for appellant No.3,

    submitted that the ingredients of adverse possession were not

    .

    satisfied. It is not possible for the State and its instrumentalities

    to keep vigilance over a vast track of the open land owned by it.

    Therefore, a plea of adverse possession against the State should

    be viewed differently from the plea against a private person. The

    of
    learned Appellate Court held that the defendants had failed to

    prove the taking of possession. An official act is presumed to be
    rt
    validly done. The revenue entries are recorded in the

    defendants’ favour, which proves their possession. There was no

    necessity to prove the delivery of possession. Learned Appellate

    Court erred in allowing the appeal. Hence, he prayed that the

    present appeal be allowed and the judgment and decree passed

    by the learned Appellate Court be set aside. He relied upon the

    judgments in Bangalore Development Authority vs. N. Jayamma

    (2017) 13 SCC 159, State of Kerala vs. Bhaskaran Pillai (1197) 5 SCC

    432 and Smt. Mitra vs. State of Karnataka 2024 Supreme (Online)

    (KAR) 8868 in support of his submission.

    13. Mr V.S. Chauhan, learned Senior Counsel for the

    respondents No.1 (a) to 1(c), submitted that the defendants had

    failed to produce any evidence to prove the delivery of

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    possession to them. The learned Trial Court had not adverted to

    this aspect, and the learned Appellate Court had rightly set aside

    .

    the judgment passed by the learned Trial Court. Hence, he

    prayed that the present appeal be dismissed.

    14. I have given a considerable thought to the

    of
    submissions made at the bar and have gone through the records

    carefully.

    rt
    CMP No. 9616 of 2025
    Application for Additional Evidence

    15. Before adverting to the merits of the case, it is

    necessary to dispose of an application for leading the additional

    evidence. It has been asserted that the learned Appellate Court

    had reversed the well-reasoned judgment passed by the learned

    Trial Court on the ground that the defendants had not produced

    the record of the acquisition of the suit land. The defendant

    remained under the impression that the acquisition of the suit

    land was not in dispute. Mutation No. 41 was attested in the

    defendants’ favour on 24.03.1958 based on the acquisition,

    notification and the award. The record of acquisition could not

    be traced earlier, despite the best efforts. The copies of two

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    notifications published in H.P. Rajpatra on 21.06.1955 and

    06.07.1956, and a letter written by the Land Acquisition

    .

    Collector to Assistant Animal Husbandry Officer, Mandi,

    regarding taking possession of the suit land and disbursement

    of compensation to interested persons were traced. The

    applicants/defendants want to produce the letters to establish

    of
    their defence. The documents are copies of public record and

    are, per se, admissible. Hence, it was prayed that the present
    rt
    application be allowed and the documents be taken on record.

    16. The application is opposed by filing a reply, making a

    preliminary submission regarding the lack of maintainability.

    The contents of the application were denied on the merits. It was

    asserted that the applicants had failed to establish what

    prevented them from producing the record at the time of leading

    the evidence before the learned Trial Court. The record was in

    the applicants’ possession at the time of filing the main suit and

    leading the evidence. No explanation has been provided for not

    producing the documents earlier. The ingredients of Order 41

    Rule 27 of CPC have not been satisfied. The application has been

    filed to fill the lacuna left by the applicants/defendants in their

    evidence. The additional evidence would cause a serious

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    prejudice to the other side. Therefore, it was prayed that the

    application be dismissed.

    .

    17. A rejoinder denying the contents of the reply and

    affirming those of the application was filed.

    18. It was laid down by the Hon’ble Supreme Court in

    of
    Sanjay Kumar Singh v. State of Jharkhand, (2022) 7 SCC 247:

    (2022) 3 SCC (Civ) 699: 2022 SCC OnLine SC 292 that the Appellate
    rt
    Court should not generally travel beyond the record of the Trial

    Court, but an exception has been created under Order 41 Rule 27

    of CPC. It was observed at page 249: –

    “7. It is true that the general principle is that the
    appellate court should not travel outside the record of the
    lower court and cannot take any evidence in appeal.

    However, as an exception, Order 41 Rule 27 CPC enables
    the appellate court to take additional evidence in

    exceptional circumstances. It may also be true that the
    appellate court may permit additional evidence if the

    conditions laid down in this Rule are found to exist and
    the parties are not entitled, as of right, to the admission
    of such evidence. However, at the same time, where the
    additional evidence sought to be adduced removes the
    cloud of doubt over the case, and the evidence has a direct
    and important bearing on the main issue in the suit, and
    the interest of justice clearly renders it imperative that it
    may be allowed to be permitted on record, such
    application may be allowed. Even one of the
    circumstances in which the production of additional
    evidence under Order 41 Rule 27 CPC by the appellate

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    court is to be considered is whether or not the appellate
    court requires the additional evidence so as to enable it to
    pronounce judgment, or for any other substantial cause

    .

    of like nature.

    8. As observed and held by this Court in A. Andisamy
    Chettiar v. A. Subburaj Chettiar [A. Andisamy Chettiar
    v. A.

    Subburaj Chettiar, (2015) 17 SCC 713 : (2017) 5 SCC (Civ)
    514], the admissibility of additional evidence does not
    depend upon the relevancy to the issue on hand, or the

    of
    fact, whether the applicant had an opportunity for
    adducing such evidence at an earlier stage or not, but it
    depends upon whether or not the appellate court requires
    the evidence sought to be adduced to enable it to
    rt
    pronounce judgment or for any other substantial cause. It
    is further observed that the true test, therefore, is

    whether the appellate court is able to pronounce
    judgment on the materials before it without taking into
    consideration the additional evidence sought to be
    adduced.”

    19. It was held in Sopanrao v. Syed Mehmood, (2019) 7

    SCC 76: (2019) 3 SCC (Civ) 467: 2019 SCC OnLine SC 821 that where

    the documents were not filed before the learned Courts below,

    and no application was filed for leading additional evidence, the

    documents cannot be taken on record. It was observed at page

    81:

    “13. At this stage, it would be pertinent to point out that
    the appellant-defendants, during the course of this
    appeal, have filed a number of applications to place on
    record certain documents which were not on the record of
    the trial court. No explanation has been given in any of
    these applications as to why these documents were not
    filed in the trial court. These documents cannot be looked

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    into and entertained at this stage. The defendants did not
    file these documents before the trial court. No application
    was filed under Order 41 Rule 27 of the Code of Civil

    .

    Procedure, 1908, for leading additional evidence before

    the first appellate court or even before the High Court.
    Even the applications filed before us do not set out any
    reasons for not filing these documents earlier, and do not

    meet the requirements of Order 41 Rule 27 of the Code of
    Civil Procedure
    . Hence, the applications are rejected, and
    the documents cannot be taken into consideration.”

    of

    20. It was held in Jagdish Prasad Patel v. Shivnath, (2019)

    6 SCC 82: (2019) 3 SCC (Civ) 112: 2019 SCC OnLine SC 492 that the
    rt
    additional evidence can be led when the Trial Court had refused

    to admit the evidence, the evidence was not available despite the

    exercise of due diligence and the evidence is required by the

    Court to effectively adjudicate the dispute pending before it. It

    was observed at page 96: –

    “29. Under Order 41 Rule 27 CPC, the production of

    additional evidence, whether oral or documentary, is
    permitted only under three circumstances, which are:

    (I) where the trial court had refused to admit the
    evidence, though it ought to have been admitted;

    (II) the evidence was not available to the party despite
    the exercise of due diligence; and

    (III) the appellate court required the additional
    evidence so as to enable it to pronounce judgment or
    for any other substantial cause of like nature.

    An application for the production of additional evidence
    cannot be allowed if the appellant was not diligent in
    producing the relevant documents in the lower court.

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    However, in the interest of justice and when satisfactory
    reasons are given, the court can receive additional
    documents.”

    .

    21. It was laid down by the Hon’ble Supreme Court in

    Sanjay Kumar Singh v. State of Jharkhand, (2022) 7 SCC 247, that

    additional evidence can be taken if the conditions laid down

    under Order 41 Rule 27 are satisfied. It was observed: –

    of

    7. It is true that the general principle is that the appellate
    court should not travel outside the record of the lower
    rt
    court and cannot take any evidence in appeal. However, as
    an exception, Order 41 Rule 27CPC enables the appellate
    court to take additional evidence in exceptional

    circumstances. It may also be true that the appellate court
    may permit additional evidence if the conditions laid
    down in
    this Rule are found to exist and the parties are

    not entitled, as of right, to the admission of such
    evidence. However, at the same time, where the
    additional evidence sought to be adduced removes the

    cloud of doubt over the case, and the evidence has a direct
    and important bearing on the main issue in the suit, and

    the interest of justice clearly renders it imperative that it
    may be allowed to be permitted on record, such

    application may be allowed. Even one of the
    circumstances in which the production of additional
    evidence under Order 41 Rule 27CPC by the appellate court
    is to be considered is whether or not the appellate court
    requires the additional evidence so as to enable it to
    pronounce judgment or for any other substantial cause of
    like nature.

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    22. A similar view was taken in the North Eastern Railway

    Administration. vs. Bhagwan Das, (2008) 8 SCC 511, wherein it was

    .

    observed: –

    “13. Though the general rule is that ordinarily the

    appellate court should not travel outside the record of the
    lower court and additional evidence, whether oral or
    documentary, is not admitted, but Section 107 CPC, which

    of
    carves out an exception to the general rule, enables an
    appellate court to take additional evidence or to require
    such evidence to be taken subject to such conditions and
    limitations as may be prescribed. These conditions are
    rt
    prescribed under Order 41 Rule 27 CPC. Nevertheless, the
    additional evidence can be admitted only when the

    circumstances as stipulated in the said Rule are found to
    exist. The circumstances under which additional evidence
    can be adduced are:

    (i) the court from whose decree the appeal is preferred
    has refused to admit evidence which ought to have
    been admitted [clause (a) of sub-rule (1)], or

    (ii) the party seeking to produce additional evidence

    establishes that, notwithstanding the exercise of due
    diligence, such evidence was not within the knowledge
    or could not, after the exercise of due diligence, be

    produced by him at the time when the decree appealed
    against was passed [clause (aa), inserted by Act 104 of
    1976], or

    (iii) the appellate court requires any document to be
    produced or any witness to be examined to enable it to
    pronounce judgment, or for any other substantial
    cause [clause (b) of sub-rule (1)].

    14. It is plain that under clause (b) of sub-rule (1) of Rule
    27 Order 41 CPC, with which we are concerned in the
    instant case, evidence may be admitted by an appellate

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    authority if it “requires” to enable it to pronounce
    judgment, or for any other substantial cause. The scope of
    the Rule, in particular of clause (b), was examined way

    .

    back in 1931 by the Privy Council in Parsotim Thakur v. Lal

    Mohar Thakur [AIR 1931 PC 143]. While observing that the
    provisions of Section 107 as elucidated by Order 41 Rule 27
    are clearly not intended to allow the litigant, who has

    been unsuccessful in the lower court, to patch up the
    weak parts of his case and fill up omissions in the court of
    appeal, it was observed as follows : (AIR p. 148)

    of
    “… Under clause (1)(b), it is only where the
    appellate court ‘requires’ it (i.e. finds it needful)
    that additional evidence can be admitted. It may be
    rt
    required to enable the court to pronounce
    judgment, or for any other substantial cause, but in

    either case, it must be the court that requires it.
    This is the plain grammatical reading of the sub-
    clause. The legitimate occasion for the exercise of
    this discretion is not whenever before the appeal is

    heard a party applies to adduce fresh evidence, but
    ‘when on examining the evidence as it stands some
    inherent lacuna or defect becomes apparent’.”

    15. Again in K. Venkataramiah v. A. Seetharama Reddy [AIR

    1963 SC 1526 : (1964) 2 SCR 35] a Constitution Bench of this
    Court while reiterating the aforenoted observations in
    Parsotim case [AIR 1931 PC 143] pointed out that the

    appellate court has the power to allow additional evidence
    not only if it requires such evidence “to enable it to
    pronounce judgment” but also for “any other substantial
    cause”. There may well be cases where even though the
    court finds that it is able to pronounce judgment on the
    state of the record as it is, and so, it cannot strictly say
    that it requires additional evidence “to enable it to
    pronounce judgment”, it still considers that in the
    interest of justice something which remains obscure
    should be filled up so that it can pronounce its judgment
    in a more satisfactory manner. Thus, the question

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    whether looking into the documents, sought to be filed as
    additional evidence, would be necessary to pronounce
    judgment in a more satisfactory manner, has to be

    .

    considered by the Court at the time of hearing of the

    appeal on merits.”

    23. In the present case, the only reason assigned for

    non-production of the evidence is that the learned Appellate

    Court had reversed the judgment of the learned Trial Court on

    of
    the ground that the record of acquisition of the suit land was not

    produced, and it has become necessary to produce the record,
    rt
    which shows that the purpose of the application is to get rid of

    the findings recorded by the learned Appellate Court. This is not

    permissible, and the application is liable to be dismissed on this

    short ground alone.

    24. The documents sought to be produced on record are

    not relevant to the adjudication of the dispute pending before

    the Court. The applicant is relying upon the photocopy of

    Rajpatra containing the notifications dated 21.06.1955 and

    06.07.1956. The plaintiff has not disputed the fact that the suit

    land was acquired by the State. The only dispute is whether the

    possession was taken by the State as per the law or not. The

    applicant is seeking to produce on record a letter dated

    11.04.1957 in which a request was made to Tehsildar, Sadar,

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    regarding the taking of possession. This document does not

    show whether the possession was, in fact, taken pursuant to the

    .

    letter. The applicant also relied upon a letter dated 16.05.1957,

    which mentions the disbursal of the compensation of

    ₹1,50,000/- for the cattle breeding farm Katola. This document

    also does not show the delivery of the possession. Reliance is

    of
    also placed upon the letter dated 17.06.1957. However, this letter

    mentions that all the houses and land had been vacated by the
    rt
    inhabitants, but in some cases, the threshing floors were still

    being occupied by ex-tenants due to the bad weather and foot

    and mouth disease among the livestock. These persons could not

    thrash their crop and were likely to finish it within a day or two,

    after which they would vacate the thrashing floor as well. The

    letter does not mention the suit land and will not assist the

    Court in adjudicating the dispute pending before the Court.

    25. The applicant is seeking to rely upon the copies of

    Missal Haqiyat and jamabandies, which are not material in the

    absence of evidence of taking possession.

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    26. Therefore, the additional evidence cannot be taken

    on record. Consequently, the present application fails, and it is

    .

    dismissed.

    Substantial Question of Law Nos. 1, 3 and 4:

    27. These substantial questions of law are

    of
    interconnected with each other and are being taken together for

    consideration.

    28.
    rt
    It is undisputed that the suit land was acquired by the

    State. The plaintiff specifically asserted this fact in para 3 of the

    plaint. He admitted, while appearing as PW1, that he had filed an

    application (Ext.PW1/M). This application specifically mentions

    that the suit land and other land were acquired by the State for

    the Department of Animal Husbandry from the year 1955-56.

    Therefore, the fact that the suit land was acquired by the State of

    H.P. is undisputed.

    29. Section 16 of the Land Acquisition Act provides that

    when the Collector has made an award under Section 11, he may

    take possession of the land, which shall thereupon vest

    absolutely in the Government free from all encumbrances. It was

    laid down by the Hon’ble Supreme Court in Prahlad Singh v.

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    Union of India, (2011) 5 SCC 386, that the vesting of the acquired

    land in the government takes place as soon as possession is

    .

    taken by the Collector after passing an award under Section 11. A

    legal presumption of vesting cannot be raised in favour of the

    acquiring authority without taking possession. It was observed:

    of
    “13. We have given our serious thought to the entire
    matter and carefully examined the records. Section 16
    lays down that once the Collector has made an award
    under Section 11, he can take possession of the acquired
    rt
    land. Simultaneously, the section declares that upon
    taking possession by the Collector, the acquired land shall

    vest absolutely in the Government free from all
    encumbrances. In terms of the plain language of this
    section, vesting of the acquired land in the Government
    takes place as soon as possession is taken by the Collector

    after passing an award under Section 11. To put it
    differently, the vesting of land under Section 16 of the Act
    presupposes actual taking of possession, and till that is

    done, the legal presumption of vesting enshrined in

    Section 16 cannot be raised in favour of the acquiring
    authority. Since the Act does not prescribe the mode and
    manner of taking possession of the acquired land by the

    Collector, it will be useful to notice some of the judgments
    in which this issue has been considered.

    14. In Balwant Narayan Bhagde v. M.D. Bhagwat [(1976) 1
    SCC 700] Bhagwati, J. (as he then was), speaking for
    himself and Gupta, J., disagreed with Untwalia, J., who
    delivered a separate judgment and observed: (SCC pp.

    711-12, para 28)

    “28. … We think it is enough to state that when the
    Government proceeds to take possession of the
    land acquired by it under the Land Acquisition Act,

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    1894, it must take actual possession of the land,
    since all interests in the land are sought to be
    acquired by it. There can be no question of taking

    .

    ‘symbolical’ possession in the sense understood by

    judicial decisions under the Code of Civil Procedure.
    Nor would possession merely on paper be enough.
    What the Act contemplates as a necessary condition

    of vesting of the land in the Government is the
    taking of actual possession of the land. How such
    possession may be taken would depend on the

    of
    nature of the land. Such possession would have to
    be taken as the nature of the land admits of. There
    can be no hard-and-fast rule laying down what act
    rt
    would be sufficient to constitute the taking of
    possession of land. We should not, therefore, be

    taken as laying down an absolute and inviolable
    rule that merely going on the spot and making a
    declaration by beat of drum or otherwise would be
    sufficient to constitute taking of possession of land

    in every case. But here, in our opinion, since the land
    was lying fallow and there was no crop on it at the
    material time, the act of the Tahsildar in going on the

    spot and inspecting the land for the purpose of
    determining what part was waste and arable and

    should, therefore, be taken possession of and
    determining its extent, was sufficient to constitute

    taking of possession. It appears that the appellant was
    not present when this was done by the Tahsildar, but
    the presence of the owner or the occupant of the land is
    not necessary to effectuate the taking of possession. It
    is also not strictly necessary as a matter of legal
    requirement that notice should be given to the
    owner or the occupant of the land that possession
    would be taken at a particular time, though it may
    be desirable where possible, to give such notice
    before possession is taken by the authorities, as
    that would eliminate the possibility of any

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    fraudulent or collusive transaction of taking of
    mere paper possession, without the occupant or the
    owner ever coming to know of it.”

    .

    (emphasis supplied)

    15. In Balmokand Khatri Educational and Industrial Trust v.
    State of Punjab
    [(1996) 4 SCC 212] the Court negatived the

    argument that even after finalisation of the acquisition
    proceedings possession of the land continued with the
    appellant and observed: (SCC p. 215, para 4)

    of
    “4. It is seen that the entire gamut of the
    acquisition proceedings stood completed by 17-4-
    1976, by which date possession of the land had been
    rt
    taken. No doubt, Shri Parekh has contended that
    the appellant still retained their possession. It is

    now a well-settled legal position that it is difficult
    to take physical possession of the land under
    compulsory acquisition. The normal mode of taking
    possession is drafting the panchnama in the

    presence of panchas, and taking possession and
    giving delivery to the beneficiaries is the accepted
    mode of taking possession of the land. Subsequent

    thereto, the retention of possession would
    tantamount only to illegal or unlawful possession.”

    16. In P.K. Kalburqi v. State of Karnataka [(2005) 12 SCC
    489], the Court referred to the observations made by

    Bhagwati, J., in Balwant Narayan Bhagde v. M.D. Bhagwat
    [(1976) 1 SCC 700] that no hard-and-fast rule can be laid
    down as to what act would be sufficient to constitute
    taking of possession of the acquired land, and observed
    that when there is no crop or structure on the land, only
    symbolic possession could be taken.

    ****

    18. In Sita Ram Bhandar Society v. Govt. of NCT of Delhi
    [(2009) 10 SCC 501 : (2009) 4 SCC (Civ) 268] and
    Omprakash Verma v. State of A.P. [(2010) 13 SCC 158 : (2010)

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    4 SCC (Civ) 823] it was held that when possession is to be
    taken of a large tract of land then it is permissible to take
    possession by a properly executed panchnama. A similar

    .

    view was expressed in the recent judgment in Brij Pal

    Bhargava v. State of U.P. [(2011) 5 SCC 413 : (2011) 2 Scale
    692]

    19. The same issue was recently considered in Banda
    Development Authority v. Moti Lal Agarwal
    [(2011) 5 SCC
    394], decided on 26-4-2011.
    After referring to the

    of
    judgments in Balwant Narayan Bhagde v. M.D. Bhagwat
    [(1976) 1 SCC 700], Balmokand Khatri Educational and
    Industrial Trust v. State of Punjab
    [(1996) 4 SCC 212], P.K.
    Kalburqi v. State of Karnataka [(2005) 12 SCC 489], NTPC
    rt
    Ltd. v. Mahesh Dutta [(2009) 8 SCC 339 : (2009) 3 SCC (Civ)
    375], Sita Ram Bhandar Society v. Govt. of NCT of Delhi

    [(2009) 10 SCC 501 : (2009) 4 SCC (Civ) 268], Omprakash
    Verma v. State of A.P. [(2010) 13 SCC 158 : (2010) 4 SCC (Civ)
    823] and Nahar Singh v. State of U.P. [(1996) 1 SCC 434] this
    Court laid down the following principles:(Banda

    Development Authority case [(2011) 5 SCC 394], SCC p. 411,
    para 37)

    “(i) No hard-and-fast rule can be laid down as to
    what act would constitute taking of possession of

    the acquired land.

    (ii) If the acquired land is vacant, the act of the

    State authority concerned to go to the spot and
    prepare a panchnama will ordinarily be treated as
    sufficient to constitute taking of possession.

    (iii) If a crop is standing on the acquired land or a
    building/structure exists, mere going on the spot by
    the authority concerned will, by itself, not be
    sufficient for taking possession. Ordinarily, in such
    cases, the authority concerned will have to give
    notice to the occupier of the building/structure or
    the person who has cultivated the land and take
    possession in the presence of independent

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    witnesses and get their signatures on the
    panchnama. Of course, the refusal of the owner of
    the land or building/structure may not lead to an

    .

    inference that the possession of the acquired land

    has not been taken.

    (iv) If the acquisition is of a large tract of land, it

    may not be possible for the acquiring/designated
    authority to take physical possession of each and
    every parcel of the land, and it will be sufficient that

    of
    symbolic possession is taken by preparing an
    appropriate document in the presence of
    independent witnesses and getting their signatures
    on such a document.

    rt

    (v) If the beneficiary of the acquisition is an
    agency/instrumentality of the State and 80% of the

    total compensation is deposited in terms of Section
    17
    (3-A), and a substantial portion of the acquired
    land has been utilised in furtherance of the

    particular public purpose, then the court may
    reasonably presume that possession of the acquired
    land has been taken.”

    20. If the present case is examined in the light of the facts
    which have been brought on record and the principles laid
    down in
    the judgment in Banda Development Authority

    case [(2011) 5 SCC 394] it is not possible to sustain the
    finding and conclusion recorded by the High Court that
    the acquired land had vested in the State Government
    because the actual and physical possession of the
    acquired land always remained with the appellants and no
    evidence has been produced by the respondents to show
    that possession was taken by preparing a panchnama in
    the presence of independent witnesses and their
    signatures were obtained on the panchnama.

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    30. This Court also held in Jit Ram v. State of H.P., 2013

    SCC OnLine HP 1376 that the delivery of symbolic possession or

    .

    the possession merely on paper is not enough. It is essential that

    actual possession be taken. It was observed:

    11. In Mrityunjoy Bose v. State of Bihar, AIR 1967 Patna 286,
    the Division Bench has held that the taking of possession

    of
    referred to in Sections 16, 17(1), 34 and 48(1) of the Land
    Acquisition Act is of the same nature. Their Lordships
    have further held that unless the party to the suit can
    show that possession over that portion of the disputed
    rt
    land, which is notified as having been withdrawn from
    acquisition, is of the nature required by either Section 16

    or Section 17(1) of the Act, the legality of the order of
    withdrawal cannot be successfully challenged. Their
    Lordships have further held that the Government loses its
    rights to withdraw from acquisition only from the date

    when the Collector takes possession under Sections 16 or
    17, so that title vests free from all encumbrances in the
    Government. Their Lordships have held as under:

    “44. So far as the application of S. 48(1) is

    concerned, it seems clear that the Government
    loses its right to withdraw from acquisition only
    from the date when the Collector takes possession

    under Section 16 or S. 17 of the Act, so that title
    vests free from all encumbrances in the
    Government. There seems to be no reason to
    suppose that the word ‘possession’ in sub-section
    (1) of Section 48 means possession of a kind
    different from that taken over under Section 16 or
    Section 17 of the Act. It is also from the date of
    taking over such possession that interest becomes
    payable under Section 34 of the Act.

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    45. As I have been unable to find that the
    Government took possession of the lands in
    question under any law, much less under Section 16

    .

    or Section 17 of the Act, I am unable to hold that

    they acted illegally in withdrawing portions of the
    lands from acquisition. For the same reason, I
    cannot hold that the petitioners are entitled to

    interest from any particular date.

    53….Possession for the purpose of Ss. 17 and 17(1)
    must be possession as a full owner, in consequence

    of
    of which lands vest absolutely in the Government
    free from all encumbrances. It cannot be of the
    same nature as any previous possession which the
    rt
    Government might have taken either as a lessee, or
    mortgagee, or licensee, or under some other colour

    of title, or even as a trespasser. Though the Act is
    silent as to the mode of taking possession either
    under S 16 or S 17(1) of the Act, there seems to be no
    doubt that either actual occupation by the Collector

    or his agents, or taking symbolic possession (where
    actual possession is already with the Collector), or
    doing something equivalent to effective possession

    is contemplated. Here, admittedly, no such formal
    taking of possession either under S. 16 or under S.

    17(1) has been alleged to have been done. The
    petitioners’ case all along has been that by virtue of
    the appropriate notification, any resistance by the

    petitioners, the Forest Department took over actual
    possession from 1954. That possession cannot,
    therefore, be held to be possession for the purpose
    of S. 48(1) of the Land Acquisition Act. Hence, there
    is no illegality in the withdrawal from acquisition in
    respect of a portion of the disputed lands.”
    *****

    14. The Apex Court in Jethmull Bhoraj v. State of Bihar
    (1972) 1 SCC 714 has held that the Government becomes
    the owner of the lands notified for acquisition only when

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    the Collector takes possession of those lands either under
    Section 16 or under Section 17(1). Their Lordships have
    further held that the possession of any land notified for

    .

    acquisition is taken when the Collector has made an

    award under Section 11 and not before it. But an exception
    is provided under Section 17(1). In cases of urgency, if the
    Government so directs, the Collector may, though no

    award has been made under Section 11, on the expiration
    of the 15 days from the publication of the notices
    mentioned in Section 9(1), take possession of any waste

    of
    or arable land and the land shall thereupon vest
    absolutely with the Government free from all
    encumbrances. Their Lordships have further held that the
    Collector cannot take possession of the land in question
    rt
    unless the Government directs him to do so. Their
    Lordships have held as under:

    “10. The next point that arises for decision is
    whether the delivery of the lands notified for
    acquisition was taken under Section 17(1) as

    contended by the appellant. The Government
    becomes the owner of the lands notified for
    acquisition only when the Collector takes

    possession of those lands either under Section 16 or
    under Sec. 17(1). Both those provisions provide that

    when the Collector takes possession under those
    provisions, the lands notified for acquisition shall
    vest absolutely in the Government free from all

    encumbrances. Until and unless possession is taken
    under either of those provisions, the lands notified
    for acquisition do not vest in the Government.
    Section 48(1) of the Act provides:

    “Except in the case provided for in Section
    36
    , the Government shall be at liberty to
    withdraw from the acquisition of any lands of
    which possession has not been taken.”

    11. Section 36 is not relevant for our present
    purpose. Possession referred to in Section 48

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    necessarily is the possession taken either under
    Section 16 or under Section 17(1). Section 17(1) says:

    “In cases of urgency, whenever the

    .

    appropriate Government so directs, the

    Collector, though no such award has been
    made, may, on the expiration of fifteen days
    from the publication of the notice mentioned

    in Section 9 sub-section (1), take possession
    of any waste or arable land needed for public
    purposes or for a Company. Such land shall

    of
    thereupon vest absolutely in the Government
    free from all encumbrances.”

    Ordinarily, possession of any land notified for
    rt
    acquisition is taken when the Collector has made an
    award under Section 11 and not before it. But an

    exception is provided under Section 17(1). In cases
    of urgency, if the Government so directs, the
    Collector may, though no award has been made
    under Section 11, on the expiration of the 15 days

    from the publication of the notice mentioned in S.
    9(1)
    , take possession of any waste or arable land
    and the land shall thereupon vest absolutely with

    the Government free from all encumbrances. From
    this provision, it is plain that the Collector cannot

    take possession of the land in question unless the
    Government directs him to do so. The Government

    directs him to do so only in cases of urgency. Even
    when the Government directs the Collector to take
    possession, he cannot do so until the expiration of
    15 days from the publication of a notice under
    Section 9(1). There is no material on record to show
    that the Government had given to the Collector any
    direction under Section 17(1); nor is there any
    material to show that the lands in question had
    been taken possession of by the Collector under
    Section 17(1). It is true that in the order-sheet

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    maintained by the Land Acquisition Officer, a note
    was made on October 17, 1959:”

    “Shri B.P. Yadav Kgo, to deliver possession at

    .

    the spot to the representative of the R.O. on

    16-11-59. Draft addressed to R.O. is signed.”

    But there is nothing to show that this order was

    implemented. According to the respondent, this
    order was not implemented.”

    In the instant case, no direction was ever issued by the

    of
    State Government to the Collector to take over the
    possession.

    15. In Balwant Narayan Bhagde v. M.D. Bhagwat (1976) 1
    rt
    SCC 700, Hon’ble Justice Untwalia, J. has taken the view
    that even the delivery of so-called “symbolical”

    possession is delivery of “actual” possession of the right
    title and interest of the judgment-debtor. However, the
    majority view is contrary to the same. His Lordship
    Bhagwati, J. (concurring) (for himself and Gupta, J.) has

    held that there can be no question of taking ‘symbolical’
    possession in the sense understood by judicial decisions
    under the Code of Civil Procedure. Nor would possession

    merely on paper be enough. What the Act contemplates as
    a necessary condition of vesting of the land in the

    Government is the taking of actual possession of the land.
    The majority view reads as under:

    “Bhagwati, J. (on behalf of himself and Gupta J.): –

    We agree with the conclusion reached by our
    brother Untwalia, J., as also with the reasoning on
    which the conclusion is based. But we are writing a
    separate judgment as we feel that the discussion in
    the judgment of our learned brother Untwalia, J., in
    regard to delivery of ‘symbolical’ and ‘actual’
    possession under Rules 35, 36, 95 and 96 of Order
    XXI of the Code of Civil Procedure
    , is not necessary
    for the disposal of the present appeals and we do
    not wish to subscribe to what has been said by our

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    learned brother Untwalia, J., in that connection, nor
    do we wish to express our assent with the
    discussion of the various authorities made by him

    .

    in his judgment. We think it is enough to state that

    when the Government proceeds to take possession
    of the land acquired by it under the Land
    Acquisition Act, 1894
    , it must take actual

    possession of the land since all interests in the land
    are sought to be acquired by it. There can be no
    question of taking ‘symbolical’ possession in the

    of
    sense understood by judicial decisions under the
    Code of Civil Procedure
    . Nor would possession
    merely on paper be enough. What the Act
    contemplates as a necessary condition of vesting of
    rt
    the land in the Government is the taking of actual
    possession of the land. How such possession may

    be taken would depend on the nature of the land.
    Such possession would have to be taken as the
    nature of the land admits of. There can be no hard

    and fast rule laying down what act would be
    sufficient to constitute the taking of possession of
    land. We should not, therefore, be taken as laying

    down an absolute and inviolable rule that merely
    going on the spot and making a declaration by beat

    of drum or otherwise would be sufficient to
    constitute taking of possession of land in every
    case. But here, in our opinion, since the land was

    lying fallow and there was no crop on it at the
    material time, the act of the Tehsildar in going on
    the spot and inspecting the land for the purpose of
    determining what part was waste and arable and
    should, therefore, be taken possession of and
    determining its extent, was sufficient to constitute
    taking of possession. It appears that the appellant
    was not present when this was done by the
    Tehsildar, but the presence of the owner or the
    occupant of the land is not necessary to effectuate
    the taking of possession. It is also not strictly

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    necessary as a matter of legal requirement that
    notice should be given to the owner or the occupant
    of the land that possession would be taken at a

    .

    particular time, though it may be desirable where

    possible, to give such notice before possession is
    taken by the authorities, as that would eliminate
    the possibility of any fraudulent or collusive

    transaction of taking of mere paper possession,
    without the occupant or the owner ever coming to
    know of it.

    of
    We are of the view, on the facts and circumstances
    of the present case, that the Tahsildar took actual
    possession of that part of the land which was waste
    rt
    or arable and handed it over to the Principal of the
    Agricultural College. It is true that the Special Land

    Acquisition Officer in his letter dated 13 th December,
    1961 to the Commissioner stated that possession of
    the entire land was still with the appellant and it
    was not actually taken possession of by the

    Principal, Agricultural College, But it is obvious that
    this statement was made by the Special Land
    Acquisition Officer because he thought that actual

    possession of the land could not be regarded as
    having been taken, unless the appellant was

    excluded from the land and since the appellant
    immediately, without any obstruction, entered
    upon the land and continued in possession, “the

    land was not actually taken possession of by the
    Principal, Agricultural College”. This was a plainly
    erroneous view, for the legal position is clear that
    even if the appellant entered upon the land and
    resumed possession of it the very next moment
    after the land was actually taken possession of and
    became vested in the Government, such an act on
    the part of the appellant did not have the effect of
    obliterating the consequences of vesting. There
    can, therefore, be no doubt that actual possession
    of 19 acres 16 gunthas of waste and arable land was

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    taken by the Tahsildar on 3 rd April, 1959, and it
    became vested in the Government. (Neither the
    Government nor the Commissioner could

    .

    thereafter withdraw from the acquisition of any

    portion of this land under S. 48(1) of the Act.”

    16. Their Lordships of the Hon’ble Supreme Court in
    Balmokand Khatri Educational and Industrial Trust,

    Amritsar v. State of Punjab, (1996) 4 SCC 212 have laid down
    that the normal mode of taking possession is drafting the
    panchnama in the presence of panchas and taking

    of
    possession and giving delivery to the beneficiaries is the
    accepted mode of taking possession of the land. Their
    Lordships have held as under:

    rt
    “4. It is seen that the entire gamut of the
    acquisition proceedings stood completed by April

    17, 1976, by which date possession of the land had
    been taken. No doubt, Shri Parekh has contended
    that the appellant still retained their possession. It
    is now a well-settled legal position that it is

    difficult to take physical possession of the land
    under compulsory acquisition. The normal mode of
    taking possession is drafting the Panchanama in

    the presence of Panchas, and taking possession and
    giving delivery to the beneficiaries is the accepted

    mode of taking possession of the land. Subsequent
    thereto, the retention of possession would be

    tantamount only to illegal or unlawful possession.

    17. Their Lordships of the Hon’ble Supreme Court in
    National Thermal Power Corporation Limited v. Mahesh
    Dutta
    (2009) 8 SCC 339 have again discussed the
    principles of taking of possession of acquired land in
    cases of urgency. Their Lordships have held as under:

    “16. It is a well-settled proposition of law that in
    the event possession of the land, in respect whereof
    a Notification had been issued, had been taken
    over, the State would be denuded of its power to
    withdraw from the acquisition in terms of Section

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    48 of the Act. Whether actual or symbolic
    possession had been taken over from the land
    owners is essentially a question of fact. Taking over

    .

    possession in terms of the provisions of the Act

    would, however, mean actual possession and not
    symbolic possession. The question, however, is as
    to whether the finding of fact arrived at by the High

    Court that physical possession, indeed, had been
    taken over by the Collector is correct or not.
    “26. These decisions, as noticed hereinbefore, do

    of
    not lay down an absolute rule. The question as to
    whether actual physical possession had been taken
    in compliance with the provisions of Section 17 of
    rt
    the Act or not would depend upon the facts and
    circumstances of each case.

    27. When possession is to be taken over in respect
    of the fallow or Patit land, a mere intention to do so
    may not be enough. It is, however, the positive
    stand by the appellant that the lands in question are

    agricultural land and crops used to be grown
    therein. If the lands in question are agricultural, not
    only must actual physical possession be taken, but

    also they were required to be properly demarcated.
    If the land had standing crops, as has been

    contended by Mr Raju Ramachandran, steps in
    relation thereto were required to be taken by the

    Collector. Even in the said certificate of possession,
    it had not been stated that there were standing
    crops on the land on the date on which possession
    was taken. We may notice that delivery of
    possession in respect of immovable property
    should be taken in the manner laid down in Order
    XXI Rule 35 of the Code of Civil Procedure
    .

    28. It is beyond any comprehension that when
    possession is purported to have been taken of the
    entire acquired lands, actual possession would be
    taken only of a portion thereof. The certificate of

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    possession was either correct or incorrect. It cannot
    be partially correct or partially incorrect. Either the
    possession had actually been delivered or had not

    .

    been delivered. It cannot be accepted that

    possession had been delivered in respect of about 10
    acres of land, and the possession could not be taken
    in respect of the remaining 55 acres of land. When

    the provisions of Section 17 are taken recourse to,
    vesting of the land takes effect immediately.”

    18. The Apex Court in Prahlad Singh v. Union of India

    of
    (2011) 5 SCC 386 has held that no hard-and-fast rule can
    be laid down as to what act would be sufficient to
    constitute taking of possession of the acquired land, and
    rt
    when there is no crop or structure on the land, only
    symbolic possession could be taken. Their Lordships have

    held as under:

    “16. In P.K. Kalburqi V. State of Karnataka, the
    Court referred to the observations made by
    Bhagwati, J., in Balwant Narayan Bhagde V. M.D.

    Bhagwat that no hard-and-fast rule can be laid
    down as to what act would be sufficient to
    constitute taking of possession of the acquired

    land, and observed that when there is no crop or
    structure on the land, only symbolic possession

    could be taken.

    20. If the present case is examined in the light of

    the facts which have been brought on record and
    the principles laid down in the judgment in Banda
    Development Authority
    case it is not possible to
    sustain the finding and conclusion recorded by the
    High Court that the acquired land had vested in the
    State Government because the actual and physical
    possession of the acquired land always remained
    with the appellants and no evidence has been
    produced by the respondents to show that
    possession was taken by preparing a panchanama

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    in the presence of independent witnesses and their
    signatures were obtained on the panchnama.

    21. A reading of the Khasra girdawari and

    .

    jamabandis, copies of which have been placed on

    record, shows that actual and physical possession
    of the acquired land is still with the appellants.
    Jamabandis relate to the year 2005-2006. Copies of

    notice dated 10-2-2011/11-2-2011 issued by the
    Uttar Haryana Bijli Vitran Nigam Ltd., relate to
    Appellant 1, Prahlad Singh and this, prima facie,

    of
    supports the appellants’ assertion that physical
    possession of the land is still with them.

    22. Respondents 3 to 6 have not placed any
    rt
    document before this Court to show that actual
    possession of the acquired land was taken on the

    particular date. Therefore, the High Court was not
    right in recording a finding that the acquired land
    will be deemed to have vested in the State
    Government.”

    19. Their Lordships of the Hon’ble Supreme Court in
    Banda Development Authority, Banda v. Moti Lal Agarwal

    (2011) 5 SCC 394 have again discussed the rule of taking
    possession. Their Lordships have held as under:

    “37. The principles that can be culled out from the
    above-noted judgments are:

    (i) No hard and fast rule can be laid down as to what
    act would constitute the taking of possession of the
    acquired land.

    (ii) If the acquired land is vacant, the act of the
    concerned State authority to go to the spot and
    prepare a panchnama will ordinarily be treated as
    sufficient to constitute taking of possession.

    (iii) If a crop is standing on the acquired land or a
    building/structure exists, mere going on the spot by
    the concerned authority will, by itself, not be
    sufficient for taking possession. Ordinarily, in such

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    cases, the concerned authority will have to give
    notice to the occupier of the building/structure or
    the person who has cultivated the land and take

    .

    possession in the presence of independent

    witnesses and get their signatures on the
    panchnama. Of course, the refusal of the owner of
    the land or building/structure may not lead to an

    inference that the possession of the acquired land
    has not been taken.

    (iv) If the acquisition is of a large tract of land, it

    of
    may not be possible for the acquiring/designated
    authority to take physical possession of each and
    every parcel of the land, and it will be sufficient that
    rt
    symbolic possession is taken by preparing an
    appropriate document in the presence of

    independent witnesses and getting their signatures
    on such a document.

    (v) If the beneficiary of the acquisition is an
    agency/instrumentality of the State and 80% of the

    total compensation is deposited in terms of Section
    17(3A)
    , and a substantial portion of the acquired
    land has been utilised in furtherance of the

    particular public purpose, then the Court may
    reasonably presume that possession of the acquired

    land has been taken.

    38. In the light of the above discussion, we hold that

    the action of the concerned State authorities to go
    to the spot and prepare a panchnama showing
    delivery of possession was sufficient for recording a
    finding that actual possession of the entire acquired
    land had been taken and handed over to the BDA.
    The utilisation of the major portion of the acquired
    land for the public purpose for which it was
    acquired is clearly indicative of the fact that actual
    possession of the acquired land had been taken by
    the BDA. Once it is held that possession of the
    acquired land was handed over to the BDA on

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    30.6.2001, the view taken by the High Court that the
    acquisition proceedings had lapsed due to non-
    compliance with Section 11A cannot be sustained.

    .

    20. In Brij Pal Bhargava v. State of Uttar Pradesh (2011) 5

    SCC 413, their Lordships of the Hon’ble Supreme Court
    have held that whether the possession was taken is a
    question of fact, which is required to be taken into

    consideration pragmatically. Their Lordships have held as
    under:

    of
    “12. Shri Vikas Singh, learned senior counsel
    appearing on behalf of Mathura Vrindavan
    Development Authority (respondent No. 3), pointed
    out that it would be impossible for the Collector or
    rt
    Revenue officers to enter each bigha of land for
    taking possession thereof and, therefore, the

    pragmatic approach has to be adopted by the Court
    while considering whether possession has been
    taken or not. The learned senior counsel also
    pointed out that the documents show that actual

    possession was taken. He also tried to point out the
    photograph, suggesting that not only the
    possession has been taken, but a number of other

    activities of construction were going on at the land,
    including drawing the layout thereof and building

    the roads therefor. The learned senior counsel
    relied on the reported decision in Sita Ram Bhandar

    Society, New Delhi v. Lieutenant Governor,
    Government of NCT, Delhi
    [(2009) 10 SCC 501], as
    also in Dahyabhai Ranchhoddas Dhobi v. State of
    Gujarat
    [(2010) 7 SCC 705], where the view has been
    taken about the pragmatic approach to be adopted
    by the Courts in deciding as to whether the
    possession was taken or not.

    13. Seeing the report and the orders passed, we are
    thoroughly convinced that not only the possession
    was taken, but there are activities going on at the
    behest of the Mathura Vrindavan Development

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    Authority. This is apart from the fact that this is a
    pure question of fact, which has been answered by
    the High Court in no uncertain terms. In this view

    .

    of the matter, we are of the clear opinion that even

    on this count, the appellants must fail.

    21. Their Lordships of the Hon’ble Supreme Court in
    Raghbir Singh Sehrawat v. State of Haryana (2012) 1 SCC

    792 have again discussed the mode of taking possession
    as under:

    of
    “23. The respondents have not produced any other
    evidence to show that actual possession of the land,
    on which the crop was standing, had been taken
    after giving notice to the appellant or that he was
    rt
    present at the site when possession of the acquired
    land was delivered to the Senior Manager of

    HSIIDC. Indeed, it is not even the case of the
    respondents that any independent witness was
    present at the time of taking possession of the
    acquired land.

    29. In view of the above discussion, we hold that the
    record prepared by the revenue authorities showing

    delivery of possession of the acquired land to
    HSIIDC has no legal sanctity, and the High Court

    committed a serious error by dismissing the writ
    petition on the specious ground that possession of
    the acquired land had been taken and the same

    vested in the State Government in terms of Section

    16.

    31. A similar view was expressed in C. Padma v.

    Deputy Secretary to the Government of Tamil Nadu
    (supra), Star Wire (India) Ltd. v. State of Haryana
    (supra), Municipal Council, Ahmednagar v. Shah
    Hyder Beig
    (supra) and Swaika Properties (P) Ltd. v.
    State of Rajasthan (supra). In all the cases, the
    challenge to the acquisition proceedings was
    negatived primarily on the ground of delay. An
    additional factor that influenced this Court was that

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    physical possession of the acquired land had been
    taken by the concerned authorities. In none of these
    cases, the landowners appear to have questioned

    .

    the legality of the mode adopted by the concerned

    authorities for taking possession of the acquired
    land. Therefore, these judgments cannot be relied
    upon for sustaining the High Court’s negation of

    the appellant’s challenge to the acquisition of his
    land.”

    22. The possession of Khasra No. 161 has not been taken

    of
    over as per the modes prescribed by the Hon’ble Supreme
    Court in the judgments cited hereinabove. It is settled law
    by now that only when the possession is taken under
    rt
    Section 17(1) of the Act, the Government cannot withdraw
    from acquisition under Section 48 of the Act.

    31. Therefore, the defendants were required to prove

    that they had taken possession as per Section 16 of the Land

    Acquisition Act to complete the acquisition proceedings.

    32. Yog Raj Chauhan (DW1) stated that the suit land is in

    possession of the department. The compensation for the suit

    land was also paid. The fodder is grown on the acquired land.

    The mutation (Ext.DW1/A1 to Ext.DW1/D21) of the acquisition

    was made in the defendants’ favour.

    33. The report of the Patwari on the mutation

    (Ext.DW1/B1) reads that the State had acquired the land in

    favour of the Animal Husbandry Department. Therefore, the

    mutation was being prepared. The order dated 24.03.1958 reads

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    that as per the order of the Land Acquisition Collector, the land

    was acquired, and the ownership and possession be transferred

    .

    in the name of the Animal Husbandry Department.

    34. The mutation is silent regarding the delivery of the

    possession by the land owners to the Collector. It merely relies

    of
    upon the letter written by the Collector regarding the

    acquisition. Therefore, this mutation does not show the delivery
    rt
    of the possession.

    35. Yog Raj Chauhan (DW1) stated in his cross-

    examination that he had joined the previous month. He could

    not identify the suit land, but he had heard that the land

    adjacent to the temple was the suit land. This statement shows

    that this witness is not aware of the location of the suit land, and

    his testimony that the suit land is in possession of the

    defendants is not believable. Further, he had joined in the year

    2008, as per his testimony, and he cannot be a witness to prove

    the delivery of possession to the defendants.

    36. Therefore, there is no infirmity in the findings

    recorded by the learned Appellate Court that the suit land had

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    not vested in the State as per the provisions of the Land

    Acquisition Act.

    .

    37. A heavy reliance was placed upon the revenue record

    to submit that the defendants are in possession. However, it has

    been found above that the entry in favour of the State was made

    of
    by way of the mutation recorded on the basis of a letter written

    by the Land Acquisition Collector. The mere writing of the letter
    rt
    is not sufficient unless evidence of delivery of possession is

    brought on record, which is lacking in the present case.

    Therefore, the revenue entries in favour of the defendants would

    be of no benefit to them, and the learned Appellate Court had

    rightly held that the revenue entries are not sufficient to

    establish the defendants’ possession.

    38. The judgments cited at the bar relate to the adverse

    possession. Once it has been found out that the land had not

    validly vested in favour of the State, these judgments would

    become meaningless, and, no advantage can be derived from

    Bangalore Development Authority (supra), Bhaskaran Pillai

    (supra), Smt. Mitra (supra), Mandal Revenue Officer (supra),

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    Charan Dass (supra), Jeet Singh (since deceased) through LRs

    (supra), and Himat Rai (supra).

    .

    39. The judgment in Indira Nehru Gandhi (supra) deals

    with the election petition and is not relevant. Similarly, the

    judgment in H.N. Jagannath (supra) deals with the challenge to

    of
    acquisition and is not relevant because no one has challenged

    the acquisition in the present case. The judgment in Komiah
    rt
    (supra) deals with a paper entry, but the same cannot be

    followed in view of the binding precedents of the Hon’ble

    Supreme Court and this Court, as noticed above. Therefore, no

    advantage can be derived from the cited judgments by the

    defendants.

    40. The record of the delivery of possession was essential

    to prove that the suit land was acquired as per the law, and mere

    production of the revenue record was not sufficient in the

    present case. The presumption of truth attached to the revenue

    entries was rebutted by the fact that there was no proof of the

    taking of possession, and revenue entries were based merely on

    the letter written by the Land Acquisition Collector. The

    acquisition was not complete unless there was proof of delivery

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    of possession, which is lacking in the present case. Therefore,

    these substantial questions of law are answered accordingly.

    .

    Substantial Question of Law No.2:

    41. The learned Trial Court had passed a decree of

    declaration declaring the plaintiff as owner in possession of the

    of
    suit land and the revenue entries to be null and void. A

    consequential relief of permanent prohibitory injunction was
    rt
    granted to the plaintiff. Therefore, no decree for possession was

    passed, as noticed in the substantial question of law, and this

    substantial question of law does not arise.

    Substantial Question of Law No.5:

    42. It has been found above that the acquisition was not

    complete in the absence of proof of taking over the possession.

    Further, the right to sue would not accrue by the attestation of

    the mutation. It was laid down by the Karnataka High Court in

    State of Karnataka v. Mohammed Kunhi, 1990 SCC OnLine Kar 396:

    ILR 1991 Kar 1500 that a mere adverse entry in the revenue

    record will not have the effect of commencement of the period

    of limitation. It was observed at page 1512:

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    18. Unlike the Limitation Act, 1908, the Limitation Act,
    1963
    , contains only three Articles in respect of suits
    relating to declarations, i.e., Articles 56, 57 and 58.

    .

    Undoubtedly, the relief of declaration sought in the suit

    does not fall under Article 56 or under Article 57.
    Therefore, it has to necessarily fall under Article 58,
    which is a residuary article insofar as the suits relating to

    declarations are concerned. Article 58 of the Limitation
    Act, 1963
    , is equivalent to Article 120 of the Limitation
    Act, 1908, with the difference that the limitation begins to

    of
    run in the case of Article 58 when the right to sue first
    accrues, whereas in the case of Article 120 of the
    Limitation Act, 1908, the limitation begins when the right
    to sue accrued. Therefore, the word “first” contained in
    rt
    Column No. 3 of Article 58 after the words ‘right to sue’ is
    not found in Article 120 of the Limitation Act, 1908. The

    contention of the learned Government Advocate is that
    the right to sue first accrued to the plaintiffs when the
    entries in the revenue records were changed from
    redeemed to unredeemed in the year 1918 and continued

    till the date of filing of the suit; that the plaintiffs were
    also aware of this fact of changing the description of the
    land from redeemed to unredeemed when they purchased

    the suit property on 21st June 1965 as per Exs. P-1 to P-3.
    There is no doubt that P.W. 1 stated in the cross-

    examination that when they purchased the suit property,
    the revenue record described the suit property as an
    unredeemed estate. The learned Government Advocate

    also brought to our notice the averments made in the
    plaint as to how the cause of action arose. In Para-12 of
    the plaint, the plaintiff has stated thus:

    “12. The cause of action for this suit accrued to the
    plaintiffs against the Defendant on and from 17-8-
    1966, 18-8-1966, 30-11-1966, 9-10-1967, 9-9-
    1969, 14-1-1971, 18-1-1971, 2-6-1973 and
    subsequently at Kundacherry Village,
    Bhagamandala Nadu, Mercara Taluk, Coorg District

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    and at Mercara, Coorg District, within the
    jurisdiction of this Honourable Court.”

    It is not each and every entry in the Record of Rights that

    .

    would give rise to a cause of action. As to when a cause of

    action would accrue to the plaintiffs has been the subject
    of interpretation in several decisions. In Mt. Bolo v. Mt.
    Koklan
    [AIR 1930 PC 270], their Lordships considered the

    meaning and effect of the right to sue in Column No. 3 of
    Article 120 of the Limitation Act, 1908 and held thus:

    “There can be no ‘right to sue’ until there is an

    of
    accrual of the right asserted in the suit and its
    infringement or at least a clear and unequivocal
    threat to infringe that right by the defendant
    rt
    against whom the suit is instituted.”

    This was again reaffirmed in Annamalai Chettiar v.

    A.M.K.C.T. Muthukaruppan Chettiar. [AIR 1931 PC 9.] The
    Supreme Court in Mst. Rukhmabai v. Lala Laxminarayan
    [AIR 1960 SC 335.] after referring to the decisions of the
    Privy Council in A.I.R. 1930 P.C. 270 [AIR 1930 PC 270.] and

    A.I.R. 1931 P.C. 9 [AIR 1931 PC 9.] has held that if there are
    successive invasions or denials of a right, then it can be
    held that a person’s right has been clearly and

    unequivocally threatened so as to compel him to institute
    a suit to establish that right. The Supreme Court has also

    further held thus:

    “The legal position may be briefly stated thus: The

    right to sue under Article 120 of the Limitation Act
    accrues when the defendant has clearly and
    unequivocally threatened to infringe the right
    asserted by the plaintiff in the suit. Every threat by
    a party to such a right, however ineffective and
    innocuous it may be, cannot be considered to be a
    clear and unequivocal threat so as to compel him to
    file a suit. Whether a particular threat gives rise to a
    compulsory cause of action depends upon the question
    whether that threat effectively invades or jeopardises
    the said right.” (Emphasis supplied)

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    It may be relevant to notice the facts of Rukmabai‘s case
    [AIR 1960 SC 335] as stated in Para-34 of the very
    Judgment, which are as follows:

    .

    “The facts relevant to the question of limitation in

    the present case may be briefly restated: The trust
    deed was executed in 1916. The suit house was
    constructed in 1920. If, as we have held, the trust

    deed as well as the construction of the building
    were for the benefit of the family, its execution
    could not constitute any invasion of the plaintiff’s

    of
    right. Till 1926, the plaintiff’s father, Ratanlal, was
    residing in that house. In 1928, when Daga
    challenged the trust deed, the family compromised
    the matter and salvaged the house. From 1936
    rt
    onwards, the plaintiff has been residing in the suit
    house. It is conceded that he had knowledge of the

    litigation between Rukmabai and Chandanlal
    claiming the property under the trust deed; but, for
    that suit, he was not a party and the decision in that
    litigation did not in any way bind him or affect his

    possession of the house. But in the execution of the
    decree, the Commissioner appointed by the Court
    came to the premises on February 13, 1937, to take

    measurements of the house for effecting partition
    of the property, when the plaintiff raised an

    objection, and thereafter, in 1940, filed the suit.
    From the aforesaid facts, it is manifest that the

    plaintiff’s right to the property was not effectively
    threatened by the appellant till the Commissioner
    came to divide the property. It was only then that
    there was an effectual threat to his right to the suit
    property, and the suit was filed within six years
    thereafter. We, therefore, hold that the suit was
    within time.”

    From the aforesaid facts, it is clear that the mere adverse
    entry in the Record of Rights in respect of the property in
    possession of the plaintiff cannot be taken as a real threat
    to the right of the plaintiff to the property in his

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    possession. Rukhamabai was not a party to the
    proceeding. Her right to the property came to be
    threatened only when the order was tried to be executed,

    .

    and she was tried to be dispossessed. Their Lordships

    further held that even if it was considered that
    Laxminarayan had the knowledge of the litigation
    between Rukhmabai and Chandanlal claiming the

    property under the trust deed, but, for that suit, he was
    not a party and the decision in that litigation did not in
    any way bind him or affect his possession. In the instant

    of
    case, it may be relevant to notice that the entries on
    which the reliance was placed changing the suit land from
    redeemed to unredeemed to form a basis for a starting
    point of limitation, even if it were in the knowledge of the
    rt
    plaintiffs the same could not affect the right of the
    plaintiffs adversely because those entries were not made

    in accordance with law, after due notice to the plaintiffs.
    As such as held by the Supreme Court in Khader’s case
    [(1990) 2 SCC 271: AIR 1990 SC 1225], they were void and
    non est. Therefore, they cannot be of any value as it

    cannot be held that the same affected the rights of the
    plaintiffs in any manner. In C. Mohammad Yunus v. Syed
    Unnissa
    [AIR 1961 SC 808], it has been further reiterated

    that ‘there could be no right to sue until there is an
    accrual of the right asserted in the suit and its

    infringement or at least a clear and unequivocal threat to
    infringe that right’. There is no such clear and
    unequivocal infringement of the right of the plaintiffs or

    real threat to the right of the plaintiffs by the entries
    which have no legal effect in the eyes of the law. Further,
    the very order dated 17th August 1966 – Ex. P-9 itself
    shows that the Government was not sure whether the
    suit-scheduled property was redeemed sagu or
    unredeemed sagu. They also did not assert in the
    Government Order dated 17th August 1966 that the suit
    schedule property was redeemed sagu only. This conduct
    on the part of the Government would also show that the
    entries made from the year 1918 till the date relied upon
    by the learned Government Advocate to non-suit, the

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    plaintiffs were not treated even by the State Government
    as final and conclusive and affecting the right of the
    plaintiffs. We may also refer to two more decisions of the

    .

    Supreme Court having a bearing on the point. In Gannon

    Dunkerley and Co. Ltd. v. The Union of India [(1969) 3 SCC
    607: AIR 1970 SC 1433.] It has been held thus:

    “In our Judgment, there is no right to sue until

    there is an accrual of the right asserted in the suit,
    and its infringement, or at least a clear and
    unequivocal threat to infringe that right by the

    of
    defendant against whom the suit is instituted.”

    Thus, in Gannon‘s case [(1969) 3 SCC 607: AIR 1970 SC
    1433.] the decision of the Privy Council in A.I.R. 1930 P.C.
    rt
    270 [AIR 1931 PC 9.] was again restated.
    In Raghubir Jha v.
    State of Bihar
    [1986 Supp SCC 372: AIR 1986 SC 508], the
    Supreme Court held that the limitation would begin to

    commence only on the communication of the termination
    of the proceedings and not on the date the order was
    passed by the first authority. In the instant case, there is

    no evidence adduced by the defendant, nor is there any
    material brought on record in the cross-examination of
    P.W. 1 that the right to sue accrued much earlier than the

    date of the suit. As in the instant case, the entries in the
    record of rights, being non-est, cannot be held to affect

    the right, title and interest of the plaintiffs and their
    predecessors-in-title in possession of the suit property.
    Such entries cannot also be held to be a threat to the title

    of the plaintiffs who are in possession of the suit property
    so as to give rise to the cause of action sufficient for the
    commencement of the period of limitation. However, the
    learned Government Advocate has placed reliance on a
    decision of this Court in Dada Jinnappa Khot v.
    Shivalingappa Ganapati Bellaniki ILR
    1989 Kar 993. That
    was a case in which a learned single Judge of this Court
    recorded a specific finding that, in the light of the
    application filed by the defendant before the Tahsildar in
    the year 1967 denying the title of the plaintiff, there was a
    real threat to the plaintiff’s right and therefore on that

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    date the right to sue accrued because the plaintiff was
    also a party to that application. Thus, it is clear that the
    Decision in D.J. Khot‘s case [ILR 1989 Kar 993] is confined

    .

    to the facts of that case. Therefore, the contention of the

    learned Government Advocate that the change of entries
    from redeemed to unredeemed in the year 1918 and the
    continuation of the same in the subsequent years was a

    real threat to the rights of the plaintiffs cannot be
    accepted, because those entries are held to be void and
    non est. Therefore, the contention based on the change of

    of
    entries from redeemed to unredeemed is rejected.

    43. A similar view was taken by the Punjab and Haryana

    High Court in Ibrahim v. Sharifan, 1979 SCC OnLine P&H 186: AIR
    rt
    1980 P&H 25, wherein it was observed at page 26:

    7. It may be observed at the outset that the word ‘first’
    occurring in Article 58 of the Act is of no significance at
    all for deciding the issue of limitation so far as the facts of

    the case in hand are concerned as the main point that
    requires determination is whether mere entry of a
    mutation in the name of the defendant would furnish a

    cause of action to the plaintiff to file a suit for declaration
    or not. There is no dispute that mutation was sanctioned

    in favour of the defendant after the death of Akbar, and in
    case such an entry furnishes a cause of action, then

    certainly the suit would be barred by limitation. Even Mr
    Aggarwal very fairly conceded this proposition. But what
    was argued by him was that mere entry of a mutation did
    not furnish any cause of action, and in support of his
    contention, he relied on a Division Bench judgement of
    this Court in Niamat Singh v. Darbari Singh etc., (1956) 58
    PLR 461. In our view, the contention of the learned
    counsel has considerable force. The plaintiff continued to
    be in possession of the entire property even after the
    sanction of the mutations in the name of the defendant
    after the death of her father, Akbar or her mother, Smt.

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    Nanhi or her uncle Bhiku. The defendant was never given
    any share in the rent, nor was she given any produce out
    of the land of her share. In this situation, no cloud was

    .

    cast on the title of the plaintiff by the mere entry of the

    mutation in the name of the defendant. Further, there is
    no proof on the record to show that before April 1969, by
    any act or assertion of the defendant, the right of the

    plaintiff was ever actually jeopardised. The defendant is
    occupying a house in the village.

    8. The assertion of the plaintiff is that it was given by him

    of
    to her out of compassion, while the plea of the defendant
    is that she occupied it as of right. Be that as it may, the
    fact remains that so far as the agricultural land is
    concerned, the defendant, after the sanction of the
    rt
    mutations, never asserted her right to her share in the
    land in dispute; nor did she ever get any rent or produce,

    and it was in the year 1969 that she tried to assert her
    right and interfere with the possession of the plaintiff. In
    this situation, mere entry of a mutation in the name of
    the defendant would not furnish any cause of action to

    the plaintiff. This view of ours finds full support from the
    judgment of the Division Bench in Niamat Singh‘s case.
    Thus, we do not agree with the learned single Judge that

    the cause of action arose when the mutation was entered
    in the name of the defendant and consequently, reverse

    the finding on issue No. 4 and hold that the suit filed by
    the plaintiff is within limitation.

    44. It was held by this Court in Prakasho Devi versus

    Basheshar Singh (2001) 2 ShimLC 354that the attestation of

    mutation does not confer a right to sue upon a person. It was

    observed:

    12. Article 58 of the Limitation Act, 1963 provides for a
    limitation of three years to obtain a declaration, and the
    period begins to run “when the right to sue first accrues”.

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    Article 58 is a residuary Article under the Limitation Act,
    1963
    . The suit for declaration, which was not governed by
    any other Article in the Act, was covered by residuary

    .

    Article 120 of the 1908 Act, and such a suit now indeed is

    governed by Article 58 of the 1963 Act.

    13. It may be noticed that the limitation period of three
    years commences from the date when the right to sue

    first accrues, but the question is when the right to sue
    accrues. In my view, the right to sue would accrue when
    the right in respect of which a declaration is sought is

    of
    denied or challenged. A mere entry in the revenue papers
    of the name of the defendants as co-owner of the
    property, without any act of denial on the part of such
    defendant(s), will not provide a cause of action. There is
    rt
    no scope of dispute that the mutation of a l/4th share of
    Chuhru was wrongly attested in favour of the defendants,

    and it is only because of this illegal attestation of
    mutation that entries in the revenue record showing the
    defendants as co-sharers to the extent of l/4th share of
    Chuhru were incorporated. In these circumstances, the

    right to sue would accrue to the plaintiffs only when their
    possession was threatened or an application for partition
    on the basis of these entries was filed in the Revenue

    Court.

    14. As far back as 1930, in Mst Bolo appellant v. Aft. Koklan
    and others, respondents, AIR 1930 Privy Council 270, a
    Judicial Committee interpreting the provisions of Article

    120 of the 1908 Act observed:

    “There can be no ‘right to sue’ until there is an
    accrual of the right asserted in the suit and its
    infringement, or at least a clear and unequivocal
    threat to infringe that right by the defendant
    against whom the suit is instituted. No doubt Mt.
    Koklan’s right to the property arose on the death of
    Tara Chand, but in the circumstances of this case,
    their Lordships are of the opinion that there was no
    infringement of, or any clear and unequivocal
    threat to her rights till the year 1922, when the suit,

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    as stated above, was instituted” (Emphasis
    supplied)

    15. This principle was re-stated and followed in

    .

    Annamalai Ct-ieitiar v. Muttukaruppan Chettiar, AIR 1931

    PC 9. In Mst Rukhmabai, appellant v. Lal Laxminarayan and
    others, respondents, AIR 1960 Supreme Court 335, a
    contention was raised that plaintiff respondent had

    knowledge of fraudulent character of the trust deed for 10
    years, during the pendency of the partition suit instituted
    in the year 1929, but the suit was filed in the year 1940

    of
    much after the limitation of six years under the 1908 Act
    from the date of knowledge and therefore, the suit would
    be barred under Article 120 of the 1908 Act. The Apex
    Court, interpreting the provisions of Article 120 of the
    rt
    Limitation Act of 1908 and heavily relying upon Mt Bolo,
    held:

    “33. The legal position may be briefly stated thus:
    The right to sue under Article 120 of the Limitation
    Act
    accrues when the defendant has clearly and

    unequivocally threatened to infringe the right
    asserted by the plaintiffs in the suit. Every threat by
    a party to such a right, however ineffective and

    innocuous it may be, cannot be considered to be a
    clear and unequivocal threat so as to compel him to

    file a suit. Whether a particular threat gives rise to a
    compulsory cause of action depends upon the
    question whether that threat effectively invades or

    jeopardises the said right” (Emphasis supplied)

    16. In Zorawar Singh and another Appellants v. Dip Chand
    and others
    , respondents, AIR 1929 Allahabad 331, it was
    observed that a suit for declaration may be a repeated
    cause of action and each new cause would give a fresh
    right to sue.

    17. In Faqira and another, plaintiffs-appellants v. Hardewa
    and others, defendants-respondents, AIR 1928 Allahabad
    172, the Full Bench of the Allahabad High Court had
    occasion to interpret Article 120 of the Limitation Act,

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    1908. In that case, there was a wrong entry in the khewat,
    and the advantage of that wrong entry was likely to be
    taken by the defendants. The fact of such an entry was

    .

    never brought to the notice of the plaintiffs. In this

    background, the Full Bench speaking through Mukerji, J.
    held :

    “The right to sue, within the meaning ot Article 120

    of the Limitation Act, accrued to the plaintiff on the
    filing of the application for partition and not
    earlier,” (Emphasis supplied)

    of

    18. It tlitis, is settled law that the cause of action to obtain
    a declaration under Article 58 of the Limitation Act will
    only accrue when the rights of a plaintiff are invaded by
    rt
    an overt act.

    19. In Thakurain Chhabraj Kuer, defendant-appellant v.

    Ram Deo Singh and others, plaintiffs-respondents, AIR (29)
    1942 Oudh 346, a Division Bench of Oudh High Court held
    that so long as a mutation does not injure the plaintiff, he
    need not come to the Court at all and, therefore, a

    plaintiff is not out of time if he institutes a suit within six
    years (under the 1908 Act) of the injury which the entry
    creates and which is his cause of action. This statement of

    law was reiterated in C. Mohammad Yunus, appellant v.
    Syed Unnissa and others, respondents, AIR 1961 Supreme

    Court 808. In this case, their Lordships emphasised that a
    suit for a declaration of a right and an injunction
    restraining the defendants from interfering with the

    exercise of that right is governed by Article 120 (now
    Article 58), and there can be no right to sue until there is
    an accrual of the right asserted in the suit and its
    infringement or at least a clear and unequivocal threat to
    infringe that right.

    20. In Fateh Ali Shah and others v. Muhammad Bakhsh and
    others, AIR 1928 Lahore 516, a Division Bench of the
    Lahore High Court held that the plaintiff in possession
    need not bring a suit on first denial of his title, and he
    needs to take proceedings within six years (under the old

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    Act) from the time when his rights are actually
    jeopardised. The Division Bench observed:

    “If a plaintiff is in possession or enjoyment of the

    .

    property in suit, he is not obliged to sue for a

    declaration of title on the first or each succeeding
    denial of his title by the defendant. He may look
    upon each denial with complacency or, at his

    option, may institute a suit to falsify the assertions
    of the other side. But when he finds that his rights
    are being actually jeopardised by the action or

    of
    assertion of the defendant, then he must take
    proceedings within six years from the date of such
    actions or assertions: AIR 1922 Lah. 94, AIR 1925
    Lah. 391 and 140 P.R. 1907; Dist.”

    45.
    rt
    This position was reiterated in Dharam Singh &

    others versus Prem Singh & Ors 2002 (1) Shim. LC 49, wherein it

    was held:

    17. Article 58 of the Limitation Act specifically provides a
    limitation of three years to obtain a declaration that is not

    provided under any other Article. Under this Article, the
    limitation period of three years commences from the date

    when the right to sue first accrues. However, the question
    would be when a right to sue accrues. In my view, the
    right to sue accrues when the right in respect of which a

    declaration is sought is denied or challenged. A mere
    entry in the revenue papers, in the name of appellants, in
    the column of possession, without any act of denial of the
    possession of the respondent on the part of appellants,
    will not provide a cause of action.

    18. The Supreme Court in Mst. Rukhmabai v. Lala
    Laxminarayan and others
    , AIR 1960 SC 335, interpreting
    the provision of Article 120 of the Limitation Act of 1908
    and relying upon Mt. Bolo v. Mt. Koklan and others, AIR
    1930 Privy Council 270, held:

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    ‘There can be no “right to sue” until there is an
    accrual of the right asserted in the suit and its
    infringement, or at least a clear and unequivocal

    .

    threat to infringe that right by the defendant

    against whom the suit is instituted. No doubt Mt.
    Koklan’s right to the property arose on the death of
    Tarn Chand, but in the circumstances of this case,

    their Lordships are of the opinion that there was no
    infringement of, or any clear and unequivocal
    threat to her rights till the year 1922, when the suit,

    of
    as stated above, was instituted”.(Emphasis
    supplied)

    19. In Fateh AH Shah and others v. Muhammad Bakhsh and
    others, AIR 1928 Lahore 516, a Division Bench of the
    rt
    Lahore High Court held that the plaintiff in possession
    need not bring a suit on the first denial of his title, and he

    needs to take proceedings within six years (under the old
    Act) from the time when his rights are actually
    jeopardised. The Division Bench observed:

    “If a plaintiff is in possession or enjoyment of the
    property in suit, he is not obliged to sue for a
    declaration of title on the first or each succeeding

    denial of his title by the defendant. He may look
    upon each denial with complacency or, at his

    option, may institute a suit to falsify the assertions
    of the other side. But, when he finds that his rights
    are actually being jeopardised by the action or

    assertion of the defendant, then he must take
    proceedings within six years from the date of such
    actions or assertions: AIR 1922 Lah 94, AIR 1925
    Lah. 391 and 140 RR. 1907: Dist”.

    20. It is no longer res-integra that persons continuing in
    possession in spite of adverse entry in the revenue papers
    need not seek any declaration until their possession is
    threatened. Reference may be made to Ghulam
    Mohammad Khan and others v. Sammundar Khan and
    others, AIR 1936 Lahore 37. In that case, the adverse entry
    was made in the year 1905-06. The suit was filed much

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    after the period of limitation under Article 120 of the 1908
    Act. In the plaint, it was urged that the entry was made in
    the jamabandi behind the back of the plaintiffs, and they

    .

    learnt about these entries for the first time in the year

    1929-30. The defendants traversed the allegations. In this
    background, the Division Bench held that the cause of
    action in all such cases “would accrue when the plaintiff

    feels aggrieved, and in these circumstances, on the
    plaintiff’s allegations, these suits will be within time.”

    21. Otherwise, also, entries in the revenue record for

    of
    which there is no foundation do not create any title (See
    Jattu Ram v. Hakam Singh and others, JT 1993 (5) SC 423;
    Guru Amarjit Singh v. Rattan Chand and others, AIR 1994 SC
    227; Guru Amarjit Singh v. Rattan Chand and others, (1993)
    rt
    4 SCC 349).

    46. A similar view was taken in Sairu Ram vs. Prem

    Chand, Latest HLJ 2004(1) 663 (HPHC)and held as under:

    22. It was next contended on behalf of the defendant that
    even if Art. 113 is applied, the suit having been filed
    beyond three years of the order of mutation would be

    barred by time.

    23. There is no merit in the contention; it is well settled

    that mutation does not confer title. A cause of action
    would accrue to the plaintiffs only when there is an

    invasion of or a threat to his rights and title. The order of
    mutation, even otherwise, having been passed by an
    authority having no jurisdiction, was a nullity and
    capable of being ignored.

    24. In Ghulam Mohammad Khan and others Vs. Samundar
    Khan and others
    [1936 Lahore 37] dealing with a suit filed
    under Section 45, Punjab Revenue Act, 1887, which
    provision is para material to Section 46 of the HP. Land
    Revenue Act, 1953, it has been held that to such suits
    Article 120, Limitation Act, 1908 (corresponding to Article
    113
    , Limitation Act, 1963) applies and the terminus a quo

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    in such cases is when the cause of action accrues and that
    reading Article 120, Limitation Act 1908 with Section 45,
    Punjab Land Revenue Act, 1887, the cause of action would

    .

    accrue when the plaintiff feels aggrieved.

    25. It has been held in Kewal Krishan Purl and another vs.
    The State of Punjab and others
    [1977 P&H 347] that the
    right to sue will accrue only where there is an unequivocal

    threat to infringe the right of the plaintiff.

    26. Taking into consideration the averments in the plaint
    as to the threat to infringe the rights of the plaintiff, the

    of
    suit is well within time under Article 113, Limitation Act,
    1963
    .

    47. It was laid down by the Hon’ble Supreme Court in
    rt
    Daya Singh v. Gurdev Singh, (2010) 2 SCC 194: 2010 SCC OnLine SC

    136 that the period of limitation starts running when the actual

    right is infringed. It was observed (at page 198 of SCC):

    14. In support of the contention that the suit was filed
    within the period of limitation, the learned Senior

    Counsel appearing for the appellant-plaintiffs before us
    submitted that there could be no right to sue until there is

    an accrual of the right asserted in the suit and its
    infringement or at least a clear and unequivocal threat to
    infringe that right by the defendant against whom the

    suit is instituted. In support of this contention, the
    learned Senior Counsel strongly relied on a decision of the
    Privy Council in Bolo v. Koklan [(1929-30) 57 IA 325: AIR
    1930 PC 270]. In this decision, Their Lordships of the Privy
    Council observed as follows: (IA p. 331)
    “… There can be no ‘right to sue’ until there is an
    accrual of the right asserted in the suit and its
    infringement, or at least a clear and unequivocal threat
    to infringe that right, by the defendant against whom
    the suit is instituted.”

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    15. A similar view was reiterated in C. Mohammad Yunus v.
    Syed Unnissa
    AIR 1961 SC 808, in which this Court
    observed: (AIR p. 810, para 7)

    .

    “7. … The period of six years prescribed by Article 120

    has to be computed from the date when the right to
    sue accrues, and there could be no right to sue until
    there is an accrual of the right asserted in the suit and

    its infringement or at least a clear and unequivocal
    threat to infringe that right.”

    In C. Mohammad Yunus [AIR 1961 SC 808], this Court held

    of
    that the cause of action for the purposes of Article 58 of
    the Act accrues only when the right asserted in the suit is
    infringed or there is at least a clear and unequivocal
    rt
    threat to infringe that right. Therefore, the mere
    existence of an adverse entry in the revenue records
    cannot give rise to a cause of action.

    16. Keeping these principles in mind, let us consider the
    admitted facts of the case. In Para 16 of the plaint, it has
    been clearly averred that the right to sue accrued when

    such right was infringed by the defendants about a week
    back, when the plaintiffs had for the first time come to
    know about the wrong entries in the record-of-rights and

    when the defendants had refused to admit the claim of
    the plaintiffs. Admittedly, the suit was filed on 21-8-

    1990. According to the averments made by the plaintiffs
    in their plaint, as noted hereinabove, if this statement is
    accepted, the question of holding that the suit was barred

    by limitation could not arise at all. Accordingly, we are of
    the view that the right to sue accrued when a clear and
    unequivocal threat to infringe that right by the
    defendants was made when they refused to admit the
    claim of the appellants, i.e. only seven days before the
    filing of the suit. Therefore, we are of the view that within
    three years from the date of infringement, as noted in
    Para 16 of the plaint, the suit was filed. Therefore, the
    suit, which was filed for declaration on 21-8-1990, in our
    view, cannot be held to be barred by limitation.

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    48. It was laid down in versus Rulda Ram v. Sanju Ram,

    2013 SCC OnLine HP 4341, that mere entry of the name does not

    .

    confer a person the right to sue. The right to sue accrues when

    the rights of a person are threatened. It was observed:

    14. In Mt. Bolo v. Mt. Koklan, AIR 1930 Privy Council 270,
    the expression “right to sue” has been succinctly

    of
    explained as under:

    “There can be no ‘right to sue’ until there is an
    accrual of the right asserted in the suit and its
    infringement, or at least a clear and unequivocal
    rt
    threat to infringe that right by the defendant
    against whom the suit is instituted. No doubt Mr

    Koklan’s right to the property arose on the death of
    Tara Chand, but in the circumstances of this case,
    their Lordships are of the opinion that there was no

    infringement of, or any clear and unequivocal
    threat to her rights till the year 1922, when the suit,
    as stated above, was instituted.”

    15. In Shiam Lal v. Mohamad Ali Asghar Husain, AIR 1935
    Allahabad 174, a learned single Judge has held that a mere

    entry of names does not debar the person against whom
    the entry is made for all time to come from suing for a

    declaration. Any new invasion of rights which amounts to
    a fresh denial of title confers on the owner in possession a
    fresh right to sue. The right to sue accrues when there is
    an accrual of the right asserted in the suit and its
    infringement, or at least a clear and unequivocal threat to
    infringe that right by the defendant against whom the
    suit is instituted.

    16. In Rukhmabai v. Lala Laxminarayan, AIR 1960 SC 332,
    their Lordships of the Hon’ble Supreme Court have held
    that there can be “right to sue” until there is an accrual of
    the right asserted in the suit and its infringement, or at

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    least a clear and unequivocal threat to infringe that right,
    by the defendant against whom the suit is instituted.
    Their Lordships have held as under:

    .

    “31. The argument on the question of limitation is

    put thus: The plaintiff, respondent herein, had
    knowledge of the fraudulent character of the trust
    deed as early as 1917 or, at any rate, during the

    pendency of the partition suit between Rakhmabai
    and Chandanlal instituted in the year 1929, and the
    suit filed in 1940, admittedly after six years of the

    of
    said knowledge, would be barred under Art. 120 of
    the Limitation Act. Article 120 of the Limitation Act
    reads:

    rt
    Description of suit: Period of limitation
    Time from which period begins to run.

    120. Suit for which no period of Limitation is provided
    elsewhere in this Schedule.

    Six years, when the right to sue accrues.

    This Article was subject to judicial scrutiny both by the
    Judicial Committee as well as by the High Courts of

    various States. The leading decision on the subject is that
    of the Judicial Committee in Mt. Bolo v. Mt. Koklan, 57 Ind

    App 325 at p. 331 : (AIR 1930 PC 270 at p. 272). Therein Sir
    Benod Mitter observed:

    “There can be no ‘right to sue’ until there is an

    accrual of the right asserted in the suit and its
    infringement, or at least a clear and unequivocal
    threat to infringe that right, by the defendant
    against whom the suit is instituted.”

    32. The said principle was restated and followed by the
    Judicial Committee in Annamalai Chettiar v.
    Muthukaruppan Chettiar, ILR 8 Rang 645 : (AIR 1931 PC 9),
    and in Gobinda Narayan Singh v. Sham Lal Singh, 58 Ind
    App 125 : (AIR 1931 PC 89). The further question is, if there
    are successive invasions or denials of a right, when it can

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    be held that a person’s right has been clearly and
    unequivocally threatened so as to compel him to institute
    a suit to establish that right. In Pothukutchi Appa Rao v.

    .

    Secy. of State, AIR 1938 Mad 193 at p. 198, a Division Bench

    of the Madras High Court had to consider the said
    question. In that case, Venkatasubba Rao, J., after
    considering the relevant decisions, expressed his view

    thus:

    “There is nothing in law which says that the
    moment a person’s right is denied, he is bound at

    of
    his peril to bring a suit for declaration. The
    Government, beyond passing the order, did nothing
    to disturb the plaintiff’s possession. It would be
    rt
    most unreasonable to hold that a bare repudiation
    of a person’s title, without even an overt act, would

    make it incumbent on him to bring a declaratory
    suit.”

    He adds at p. 199:

    “It is a more difficult question, what is the extent of
    the injury or infringement that gives rise to, what
    may be termed, a compulsory cause of action?”

    17. Their Lordships of the Hon’ble Supreme Court in C.
    Mohammad Yunus v. Syed Unnissa
    , AIR 1961 SC 808, have

    held that a suit for declaration of a right and an injunction
    restraining the defendants from interfering with the
    exercise of that right is governed by Article 120. Under the

    Article, there can be no right to sue until there is an
    accrual of the right asserted in the suit and its
    infringement, or at least a clear and unequivocal threat to
    infringe that right. Their Lordships have held as under:

    “7. The surplus income of the institution is
    distributed by the trustees, and the plaintiffs are
    seeking a declaration of the right to receive the
    income and also an injunction restraining the
    defendant from interfering with the exercise of
    their right. The High Court held that plaintiff No. 1

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    was at the date of the suit 19 years of age and was
    entitled to file a suit for enforcement of her right
    even if the period of limitation had expired during

    .

    her minority within three years from the date on

    which she attained majority by virtue of Ss. 6 and 8
    of the Indian Limitation Act, Apart from this
    ground which saves the claim of the first plaintiff

    alone, a suit for a declaration of a right and an
    injunction restraining the defendants from
    interfering with the exercise of that right is

    of
    governed by Art. 120 of the Limitation Act and in
    such a suit the right to sue arises when the cause of
    the action accrues. The plaintiffs claiming under
    Fakruddin sued to obtain a declaration of their
    rt
    rights in the institution, which was and is in the
    management of the trustees. The trial judge held

    that the plaintiffs were not “in enjoyment of the
    share” of Fakruddin since 1921, and the suit filed by
    the plaintiffs more than 12 years from the date of

    Fakruddin’s death must be held barred, but he did
    not refer to any specific article in the first schedule
    of the Limitation Act which barred the suit. It is not

    shown that the trustees have ever denied or are
    interested in denying the right of the plaintiffs and

    defendant No. 2; and if the trustees do not deny
    their rights, in our view, the suit for declaration of
    the rights of the heirs of Fakruddin will not be

    barred under Article. Section 120 of the Limitation
    Act merely because the contesting defendant did
    not recognise that right. The period of six years
    prescribed by Art. 120 has to be computed from the
    date when the right to sue accrues, and there could
    be no right to sue until there is an accrual of the
    right asserted in the suit and its infringement, or at
    least a clear and unequivocal threat to infringe that
    right. If the trustees were willing to give a share and
    on the record of the case it must be assumed that
    they being trustees appointed under a scheme

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    would be willing to allow the plaintiffs their
    legitimate rights including a share in the income if
    under the law they were entitled thereto, mere

    .

    denial by the defendants of the rights of the

    plaintiffs and defendant No. 2 will not set the
    period of limitation running against them.”

    18. In Rukshmanibehn v. Vadilala N. Jadawala, 1994 (1)

    G.L.H. 237, a Division Bench of the Gujarat High Court has
    explained the expression “right to sue” as under:

    of
    ‘7. As already noted, Article 58 of the Limitation
    Act, 1963
    , which Article learned counsel for the
    defendant wants to use to apply to the pleas of the
    plaintiffs, stipulates that the time of three years for
    rt
    a suit to obtain any other declaration would begin
    to run “when the right to sue first accrues”. The

    word “first” found in Article 58 could not have a
    separate or an independent significance, unless the
    right to sue accrues. It is the element of accrual of
    the right to sue that is decisive, and only when the

    right to sue has accrued, then it has got to be found
    out as to when it “first” accrued. Hence, the
    pronouncement which has been spoken on Article

    120 of the Old Limitation Act, 1908, does form a
    firm guidance to find out as to when the right to sue

    accrues for the purpose of Article 58 of the
    Limitation Act, 1963.

    8. There must be accrual of the right to sue for the
    plaintiff, in the sense that infringement or at least a
    clear and unequivocal threat to infringe that right
    by the defendant should happen. So far, the right of
    the plaintiff is not infringed, or there is no positive
    and overt act on the part of the defendant to
    infringe the right of the plaintiff, there would not
    be accrual of the right to sue. When the plaintiff
    states and proves his case that on a particular date
    there was an infringement or at least a clear and
    unequivocal threat to infringe the right of the

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    plaintiff, the defendant, if he wants to demonstrate
    a contrary position, must plead and prove the same.

    Some overact on the part of the defendant towards

    .

    infringement or threat to infringe is expected to

    make it incumbent for the plaintiff to institute the
    suit. Then only could it be stated that the right to
    sue has accrued. A hostile attitude remaining

    dormant in the mind of the defendant and which
    never got expressed in any overt act of his, by
    infringing or at least clearly and unequivocally

    of
    threatening to infringe the right of the plaintiff,
    will not bring the case within the purview of the set
    of expressions “right to sue accrues”. The above
    propositions gleaned from the pronouncements
    rt
    which we have referred to above, though do not
    require reiteration, yet we have recapitulated them

    for the purpose of guiding ourselves to assess the
    facts of the case to find out as to whether the suit of
    the plaintiffs is barred as contended by the

    defendant.”

    19. In Dhanno v. Hari Ram, (1997-2) 115 P.L.R. 393, learned
    Single Judge of Punjab and Haryana High Court has held

    that the plaintiff can file suit as and when a cloud has
    been cast on the title of the plaintiff and the cause of

    action arises in such like cases when the
    defendant/defendants threaten the plaintiffs to take
    forcible possession of the land from him. Learned Single

    Judge has held as under:

    “13. Reliance upon Section 108 of the Indian
    Evidence Act is wholly misplaced. This section deals
    with the burden of proving as to whether a person
    is alive who has not been heard of for seven years.
    In view of the fact that Smt. Dhanno is stated to
    have married Gainda sometime in the year 1943;
    she automatically stands divested of her right in the
    land on account of section 59 of the Punjab Tenancy
    Act. This way, the plaintiffs, along with Punnu,

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    became owners of the extent of l/3 rd share in the
    joint holding. Admittedly, the land has remained in
    cultivating possession of the plaintiffs as well as

    .

    defendants, and so the mere entries in the revenue

    record specifying certain shares do not cast any
    doubt on their valuable right, and the plaintiffs are
    well within their right to seek correction of these

    revenue entries in the register of mutation, etc., as
    and when an attempt is made to dispossess them.
    Thus, a cause of action arises in such like cases

    of
    when the defendant/defendants threaten the
    plaintiffs to take forcible possession of the land
    from him. Mere entry of mutation in the name of
    the defendant does not furnish any cause of action
    rt
    to the plaintiffs. This precise point came up for
    consideration in Ibrahim‘s case (supra), and the

    Court, after considering the provisions contained in
    Article 58 of the Limitation Act, held that the use of
    the word ‘first’ in Article 58 is of no significance at

    all, and so the plaintiff can file suit as and when a
    cloud has been cast on the title of the plaintiff.
    Reliance was placed on the earlier decision of the

    Division Bench in the case reported as Niamat Singh
    v. Darbari Singh
    , (1956) 58 PLR 461, wherein it was

    held as under:

    “If an adverse entry is made against a person
    who is in actual physical possession of the

    property and if he continues to retain
    possession of the said property despite this
    entry in the revenue papers, he is under no
    obligation to bring a suit.

    If, however, his rights are actually
    jeopardised by the actions or assertions of the
    defendant, then he must take proceedings
    within six years from the date of such actions
    or assertions. In other words, the time begins
    to run not from the date on which an adverse

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    entry is made but from the date on which
    there is a fresh denial of the plaintiff’s
    rights.”

    .

    20. In Bhagwanti Devi v. Mat Ram, (2003-3) 135 P.L.R. 585,

    a learned Single Judge of the Punjab and Haryana High
    Court, while discussing Article 58 of the Limitation Act,
    has held that when the plaintiff continues to be in

    possession of the suit land along with the defendant,
    cause of action in such case would arise when there is
    threat to his title.

    of
    “13. It could not be disputed that the plaintiff is a
    partner of the firm, and as a partner, he enjoys the
    benefits of the firm, including the possession of the
    rt
    property purchased by virtue of the conveyance
    deed dated 29.4.1968, Ext. D1. Since the plaintiff

    continues to be in possession of the suit land along
    with the defendant, his suit could not be dismissed
    on the ground that it is beyond the period of
    limitation. The cause of action in such a case would

    arise only when there is a threat to his title.
    According to the plaintiff, such a threat arose when
    Improvement Trust, Hansi, served a notice under

    Section 9 regarding the acquisition of land
    comprising Khasra No. 1075. At this stage, on

    inspection of the record, he came to know about the
    omission of his name in the sale deed and in the

    mutation.”

    21. In Manti v. Sarwati Devi, (2004-1) 136 P.L.R. 397, a
    learned Single Judge of the Punjab and Haryana High
    Court has held that even if entries in the revenue record
    are wrong, a party can choose to ignore the same till a
    real threat to title is apprehended. Learned Single Judge
    held as under:

    11. I have considered the rival submission and
    perused the record. There is no serious dispute
    about the substantive rights of the parties. Even
    learned counsel for the appellants does not dispute

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    that Mata Chand, having pre-deceased Dalip
    Chand, the heirs of Mata Chand will not be entitled
    to the share of Dalip Chand in view of Entry-II of

    .

    Class IInd of the Schedule to the Hindu Succession

    Act read with Section 8 of the said Act. The only
    question is of limitation. I am of the view that
    Article 58 of the Schedule to the Limitation Act will

    govern the limitation, and the lower appellate court
    was in error in observing that Article 58 of the Act
    cannot apply. Even so, the contention of the learned

    of
    counsel for the appellants that the suit is barred by
    limitation cannot be accepted. Though the
    limitation is three years, the time from which this
    period begins to run is when the right to sue first
    rt
    accrues. It is not possible to accept that the right to
    sue accrued in the year 1966 when mutation was

    sanctioned, as rightly held by the lower appellate
    court, nor did it accrue when a gift of part of the
    land was made. The parties were in joint

    possession, and it is not shown that their shares
    were separated. Though learned counsel for the
    appellants mentioned that there was a separation

    of joint holding, there is no material on record to
    indicate the separation of shares and the date of

    separation, if any. Even if entries in the revenue
    record are wrong, a party can choose to ignore the
    same till a real threat to the title is apprehended.

    Reference in this regard may be made to the
    decision of a Division Bench of this Court in
    Ibrahim v. Smt. Sharifan, AIR 1980 P&H 25, it was
    observed: “it may be observed at the outset that
    that the word ‘first’ occurring in Article 58 of the
    Actis of no significance at all for deciding the issue
    of limitation so for as the facts of the case in hand
    are concerned as the main point which requires
    determination is whether mere entry of a mutation
    in the name of the defendant would furnish a cause
    of action to the plaintiff to file a suit for declaration

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    or not.” It was further held that where no cloud is
    cast on the title of the plaintiff, mere entry of
    mutation in the name of the defendant in the

    .

    absence of any other act of the defendant, cause of

    action does not accrue to the plaintiff for the
    purpose of Article 58 of the Schedule to the
    Limitation Act
    .”

    22. In Ibrahim v. Sharifan, 1979 P.L.J. 469, a Division Bench
    of the Punjab and Haryana High Court has held that mere
    entry of a mutation in the name of the defendant would

    of
    not furnish any cause of action to the plaintiff, and a
    cause of action arose to the plaintiff when the defendant
    actually threatened to take forcible possession of the land
    rt
    from the plaintiff. The Division Bench has held as under:

    “6. While controverting the aforesaid findings of

    the learned Single Judge, it was contended by Mr.
    Aggarwal, learned counsel for the appellant, that
    cause of action arose to the plaintiff in April, 1969,
    when the defendant actually threatened to take

    forcible possession of the land from the plaintiff
    and that mere sanction of the mutation with
    respect to half share of the land in dispute in the

    name of the defendant did not give any cause of
    action to the plaintiff, especially when he had

    continued to be in exclusive possession of the land
    without any interference of any kind by the

    defendant. ON the other hand, it was contended by
    Mr. Kapur, learned counsel for the respondent, that
    a cloud was actually cast on the right of the plaintiff
    in the year 1957 after the death of Akbar mutation
    of inheritance was sanctioned in favour of the
    plaintiff, the defendant and their mother in equal
    shares; that the right to sue first accrued to the
    plaintiff, on the date when the said mutation was
    sanctioned and the suit having been filed beyond
    the period of three years was clearly barred by time.

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    7. After giving our thoughtful consideration to the
    entire matter, we find that there is considerable
    force in the contention of the learned counsel for

    .

    the appellant.

    8. It may be observed at the outset that the word
    ‘first’ occurring in article 58 of the Act is of no
    significance at all for deciding the issue of

    limitation so far as the facts of the case in hand are
    concerned as the main point that requires
    determination is whether mere entry of mutation in

    of
    the name of the defendant would furnish a cause of
    action to the plaintiff to file a suit for declaration or
    not. There is no dispute that the mutation was
    rt
    sanctioned in favour of the defendant after the
    death of Akbar, and in case such an entry furnished

    a cause of action, then certainly the suit would be
    barred by limitation. Even Mr Aggarwal very fairly
    conceded this proposition. But what was argued by
    him was that mere entry of mutation did not

    furnish any cause of action, and in support of his
    contention, he relied on a Division Bench judgment
    of this Court in Niamat Singh v. Barbari Singh, 1956

    P.L.R. 461. In our view, the contention of the
    learned counsel has considerable force. The

    plaintiff continued to be in possession of the entire
    property even after the sanction of the mutations in
    the name of the defendant after the death of Akbar

    or her mother, Smt. Nanhi or her uncle Bhiku. The
    defendant was never given any share in the rent,
    nor was she given any produce out of the land, her
    share. In this situation, no cloud was cast on the
    title of the plaintiff by the mere entry of the
    mutation in the name of the defendant. Further,
    there is no proof on the record to show that before
    April, 1960, by any act or assertion of the
    defendant, the right of the plaintiff was ever
    actually jeopardised. The defendant is occupying a
    house in the village. The assertion of the plaintiff is

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    that it was given by him to her out of compassion,
    while the plea of the defendant is that she occupied
    it as of right. Be that as it may, the fact remains that

    .

    so far as the agricultural land is concerned, the

    defendant, after the sanction of the mutations,
    never asserted her right to her share in the land in
    dispute, nor did she ever get any rent or produce

    any that it was in the year 1969 that she tried to
    assert her right and interfere with the possession of
    the plaintiff. In this situation, mere entry of a

    of
    mutation in the name of the defendant would not
    furnish any cause of action to the plaintiff. Our view
    finds full support from the judgment of the Division
    Bench in Niamat Singh‘s case. Thus, we do not agree
    rt
    with the learned Single Judge that the cause of
    action arose when the mutation was entered in the

    name of the defendant and consequently, reverse
    the finding on issue No. 4 and hold that the suit
    filed by the plaintiff is within limitation.”

    23. Their Lordships of the Hon’ble Supreme Court in Daya
    Singh v. Gurdev Singh
    (dead) by LRs., (2010) 2 SCC 194 have
    held that the right to sue accrues when there is a clear and

    unequivocal threat to infringe a right. Their Lordships
    have held as under:

    “13. Let us, therefore, consider whether the suit was
    barred by limitation in view of Article 58 of the Act

    in the background of the facts stated in the plaint
    itself. Part III of the schedule, which has prescribed
    the period of limitation, relates to suits concerning
    declarations. Article 58 of the Act clearly says that
    to obtain any other declaration, the limitation
    would be three years from the date when the right
    to sue first accrues.

    14. In support of the contention that the suit was
    filed within the period of limitation, the learned
    senior counsel appearing for the
    plaintiffs/appellants before us submitted that there

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    could be no right to sue until there is an accrual of
    the right asserted in the suit and its infringement
    or at least a clear and unequivocal threat to infringe

    .

    that right by the defendant against whom the suit is

    instituted. In support of this contention, the
    learned senior counsel strongly relied on a decision
    of the Privy Council reported in AIR 1930 PC 270

    [Mt. Bolo v. Mt. Koklan]. In this decision, their
    Lordships of the Privy Council observed as follows:

    “There can be no right to sue until there is an

    of
    accrual of the right asserted in the suit and its
    infringement or at least a clear and
    rt unequivocal threat to infringe that right by
    the defendant against whom the suit is
    instituted.”

    15. A similar view was reiterated in the case of C.
    Mohammad Yunus v. Syed Unnissa
    [AIR 1961 SC 808]
    in which this Court observed:

    “The period of 6 years prescribed by Article
    120
    has to be computed from the date when
    the right to sue accrued, and there could be

    no right to sue until there is an accrual of the
    right asserted in the suit and its infringement

    or at least a clear and unequivocal threat to
    infringe that right.”

    In the case of C. Mohammad Yunus (supra), this

    Court held that the cause of action for the purposes
    of Article 58 of the Act accrues only when the right
    asserted in the suit is infringed or there is at least a
    clear and unequivocal threat to infringe that right.
    Therefore, the mere existence of an adverse entry
    into the revenue record cannot give rise to a cause
    of action.

    16. Keeping these principles in mind, let us consider
    the admitted facts of the case. In para 16 of the
    plaint, it has been clearly averred that the right to

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    sue accrued when such right was infringed by the
    defendants about a week back, when the plaintiffs
    had for the first time come to know about the

    .

    wrong entries in the record of rights and when the

    defendants had refused to admit the claim of the
    plaintiffs. Admittedly, the suit was filed on the 21 st
    of August, 1990. According to the averments made

    by the plaintiffs in their plaint, as noted
    hereinabove, if this statement is accepted, the
    question of holding that the suit was barred by

    of
    limitation could not arise at all. Accordingly, we are
    of the view that the right to sue accrues when a
    clear and unequivocal threat to infringe that right
    by the defendants is made when they refused to
    rt
    admit the claim of the appellants, i.e. only seven
    days before filing the suit. Therefore, we are of the

    view that within three years from the date of
    infringement, as noted in Paragraph 16 of the
    plaint, the suit was filed. Therefore, the suit which

    was filed for declaration on 21 st of August, 1990, in
    our view, cannot be held to be barred by
    limitation.”

    24. This Court in Shiam Singh v. Chaman Lal, 2011 (2)
    Shim. L.C.-1 has held that the limitation begins to run not

    from the date of the entry affecting the right of the
    person concerned, but from the date when he feels
    aggrieved by the entry, and it is the satisfaction of such

    person as to when he feels aggrieved by the entry. This
    Court has held as under:

    “14. It is well settled that for a suit for declaration,
    referred to in Section 46, limitation begins to run
    not from the date of the entry affecting the right of
    the person concerned, but from the date when he
    feels aggrieved by the entry, and it is the
    satisfaction of such person as to when he feels
    aggrieved. Defendant cannot be heard to say that he
    (the plaintiff) felt aggrieved by the entry at some

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    earlier point of time or when the entry was actually
    made.”

    49. A similar view was taken in Shankar Lal v. Ramesh

    .

    Chander, 2016 SCC OnLine HP 3993, wherein it was held:

    15. The learned counsel appearing for the defendants has

    contended qua the suit of the plaintiffs being barred by
    limitation, it standing instituted beyond the prescribed
    period mandated in Article 58 of the Limitation Act.

    of
    However, the aforesaid submission cannot stand accepted
    by this Court, as the aforesaid apposite article of the
    Limitation Act while prescribing the commencement of the
    relevant period of limitation proclaims qua the relevant
    rt
    commencement for computing therefrom the period of
    limitation encapsulated therein occurring on an accrual of

    “right to sue”, right to sue whereof holds a connotation qua
    its spurrings or occurrings arising on actual and threatened
    invasion(s) qua the settled right of the plaintiff(s) upon the
    suit property. In sequel when the connotation borne by the

    apposite statutory parlance ‘right to sue’ is qua its
    upsurging on the defendant(s) committing overt act upon
    the suit property hence theirs explicitly pronouncing theirs

    casting cloud qua the title of the plaintiff(s) qua the suit
    land whereupon even if mutations qua the suit property

    stood attested on 24.12.1994 and 20.11.1999 whereas the suit
    of the plaintiff stood instituted in the year 2001 would not
    render it to be construable to stand instituted beyond

    limitation, as merely on attestation of relevant mutations
    which palpably are nonest besides stand recorded in
    deprivation of the vested rights of the plaintiffs qua the suit
    property no title hence standing invested upon the suit land
    qua defendant No. 2 rather when the plaintiffs’ title to the
    suit land stood explicitly annulled besides came under a
    cloud by the proactive overt act of defendant No. 2
    executiing sale deeds respectively on 3.11.1999 and 5.5.2001,
    with defendant No. 1 constituted the latter period to enliven
    thereat the relevant cause of action or it begot the
    commencement of the relevant period of limitation for the
    plaintiffs’ instituting a suit. In sequel thereto, with the

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    plaintiffs therefrom instituting the suit within the
    statutorily mandated period of limitation prescribed in the
    relevant Article of the Limitation Act renders it to be
    construable to be within limitation.

    .

    50. Therefore, the suit cannot be held to be barred by

    limitation, and this substantial question of law is answered

    accordingly.

    of
    Substantial Question of Law No.6:

    51. The learned Appellate Court had not misconstrued or
    rt
    misread the case law. Hence, this substantial question of law is

    answered accordingly.

    Final Order:

    52. In view of the above, there is no infirmity in the

    judgment and decree passed by the learned Appellate Court.

    Hence, the present appeal fails, and it is dismissed

    53. Pending application(s), if any, also stand(s) disposed

    of.

    54. Records of the learned Courts below be sent down

    forthwith.

    (Rakesh Kainthla)
    Judge
    20th May, 2026
    (Nikita)

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