M/S Ganesh Traders vs Specturm Infonet Pvt. Ltd on 7 April, 2026

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    Chattisgarh High Court

    M/S Ganesh Traders vs Specturm Infonet Pvt. Ltd on 7 April, 2026

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                                                                             2026:CGHC:15752
    SOURABH
    BHILWAR
    
                                                                                             NAFR
    Digitally signed by
    SOURABH
    BHILWAR
    Date: 2026.04.09
    10:43:02 +0530
    
    
                                    HIGH COURT OF CHHATTISGARH AT BILASPUR
    
    
                                                     SA No. 644 of 2024
    
    
                          1 - M/s Ganesh Traders Through Its Proprietor Lalit Kumar Bondia, Son
                          Of Late Rajaram Bondia, Presently Aged Around 67 Years, (Aadhar No.-
                          4079 4047 4851), R/o, House No. 191/3, Ward No. 18, Chhaju Gali,
                          Behind   Gandhi    Ganj,    Raigarh,    Tahsil   And   District-   Raigarh
                          (Chhattisgarh)
    
    
                          2 - M/s Neelam Stores Through Its Proprietor Natthulal Tayal, S/o Late
                          Sagarmal Tayal, Presently Aged Around 74 Years, (Aadhar No.- 6243
                          0707 5243), R/o, House No. 209, Ward No. 12, Arya Bhawan, Bidpara,
                          Raigarh, Tahsil And District- Raigarh (Chhattisgarh)
    
    
                          3 - M/s Kosa Silk Emporium Through Its Present Proprietor- Ashish
                          Agrawal, Son Of Sanjay Agrawal, Presently Aged Around 29 Years,
                          (Aadhar No.- 6925 5543 5849), R/o, Pooja Handloom, Kotra Road,
                          Raigarh, Tahsil And District- Raigarh (Chhattisgarh)
                                                                                    ... Appellant(s)
    
    
                                                          versus
    
    
                          1 - Specturm Infonet Pvt. Ltd. Through Its Director- Bharat Agrawal, Son
                          Of Vijay Agrawal, Aged Around 38 Years, R/o Chakradhar Nagar,
                          Raigarh, Tahsil And District- Raigarh (Chhattisgarh)
                                          2
    
    
    
    2 - Smt. Sarita Devi Jagatramka W/o Suresh Kumar Jagatramka Aged
    About 55 Years R/o Gandhi Chowk, Station Road, Raigarh (C.G.)
    
    
    3 - Suresh Kumar Jagatramka S/o Late Banwarilal Jagatramka, Aged
    Around 55 Years, R/o Gandhi Chowk, Station Road, Raigarh
    (Chhattisgarh)
    
    
    4 - Smt. Pushpa Saraf W/o Premkumar Saraf Aged About 68 Years
    Resident Of 3/1, Siddeshwari Road, Kolkata (West Bengal)
    
    
    5 - Raghvendra Pratap Singh S/o R.K. Singh Aged About 35 Years R/o
    Maharana     Pratap    Nagar,   Tifra,   Tahsil   And   District-   Bilaspur
    (Chhattisgarh)
    
    
    6 - Sub-Divisional Officer Cum Rent Controlling Authority Raigarh,
    Chhattisgarh
                                                            .... Respondent(s)

    (Cause title is taken from CIS)
    For Appellant(s) : Mr. Hari Agrawal, Advocate
    For Respondent/State : Mr. Lekhram Dhruw, Panel Lawyer

    Hon’ble Shri Justice Bibhu Datta Guru
    Judgment on Board
    07/04/2026

    SPONSORED

    1. The present Second Appeal has been filed by the appellants/

    plaintiffs under Section 100 of the Code of Civil Procedure, 1908,

    assailing the impugned judgment and decree dated 30.08.2024

    passed by the learned 3rd District & Additional Sessions Judge,

    Raigarh (C.G.) in Regular Civil Appeal No. 05/2020 (M/s Ganesh

    Traders & Ors. vs. Spectrum Infonet Pvt. Ltd. & Ors.), whereby

    the learned Appellate Court affirmed the impugned order dated
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    19.12.2019 passed by the learned Second Civil Judge, Junior

    Division, Raigarh (C.G.), in Civil Suit No. 273-A/2019 (M/s

    Ganesh Traders & Ors. vs. Spectrum Infonet Pvt. Ltd. & Ors.),

    whereby the learned trial Court allowed the application filed by the

    defendant No.1 under Order 7 Rule 11 of CPC and dismissed the

    suit on the ground that the same is prohibited under Order 35

    Rule 5 of CPC and Section 6 of the Chhattisgarh Rent Control

    Act, 2011 (for short ‘the Act, 2011’). For the sake of convenience,

    the parties shall hereinafter be referred to as per their status

    before the Trial Court.

    2. (i) The case of the plaintiffs as averred in the plaint is that the

    plaintiffs are tenants in peaceful possession of three shops

    situated at Station Road, Gandhi Chowk, as described in

    Schedule ‘A’. The tenancy commenced in the year 1973 under the

    original owner, late Prakashwati Jagatramka, and thereafter rent

    was paid to her husband Banwarilal Jagatramka and

    subsequently to their daughter, Defendant No. 4 Smt. Pushpa

    Devi Saraf, who last received rent from the plaintiffs. It is averred

    that the plaintiffs have neither paid rent to any other person nor

    entered into any tenancy agreement with any of the other

    defendants. However, Defendant No. 1, claiming himself to be the

    owner of the suit property, has instituted eviction proceedings

    against the plaintiffs before the Rent Controller.

    (ii) Similarly, Defendant No. 2 Smt. Sarita Devi Jagatramka,
    4

    daughter-in-law of the original owner, has also initiated separate

    eviction proceedings against the plaintiffs and has issued notice

    claiming herself to be the owner/landlord. In the said proceedings,

    Defendant No. 3, being the son of the original owner, has got

    himself impleaded under Order 1 Rule 10 CPC asserting his own

    ownership rights over the suit property. Further, Defendant No. 5

    Raghvendra Pratap Singh has also issued notice to the plaintiffs

    claiming himself to be the owner of the suit property and

    demanding payment of rent. At the same time, Defendant No. 4

    Smt. Pushpa Devi Saraf, who had been receiving rent from the

    plaintiffs, has also issued a notice directing the plaintiffs to pay

    rent exclusively to her and not to any other person.

    (iii) Thus, Defendants No. 1 to 5, all claiming through the original

    owners, have set up rival and conflicting claims of

    ownership/landlordship over the same suit property and have also

    initiated multiple eviction proceedings, thereby creating serious

    confusion and hardship for the plaintiffs. In these circumstances,

    the plaintiffs have been constrained to file the suit in the nature of

    an interpleader suit seeking determination as to who among the

    defendants is the lawful owner/landlord, so as to enable them to

    discharge their obligations and effectively participate in the

    pending proceedings before the Rent Controller.

    3. Per contra, defendant No. 1 has filed an application under Order

    7 Rule 11 of the CPC on 14.11.2019 in the suit before the trial
    5

    Court contending that the plaintiffs have instituted the suit in the

    nature of an interpleader, seeking declaration as to which of

    Defendants No. 1 to 5 is the lawful landlord along with a relief of

    permanent injunction, which is not maintainable in law. It was

    submitted that the basis of the suit arises out of proceedings

    before the Rent Controlling Authority, and similar issues have

    already been considered and rejected by the Rent Controller in

    earlier proceedings relating to Sarita Devi. It was further

    contended that the sale deed in favour of Defendant No. 1 has

    already been upheld in prior civil litigation, wherein Civil Suit No.

    116-A/2011 filed for cancellation of sale deed was dismissed by

    the competent Court, and the said decision was affirmed by the

    High Court in FA No.274 of 2017. Thus, the title of defendant No.

    1 stands duly recognized. It is also submitted that defendant No. 1

    has already initiated appropriate proceedings before the Rent

    Controlling Authority under the provisions of the Rent Control Act,

    and tenancy-related disputes fall within the exclusive jurisdiction

    of the said authority, thereby barring the jurisdiction of the Civil

    Court. On these grounds, it is urged that the suit is barred by law

    and is liable to be rejected.

    4. In response, the plaintiffs have filed their reply to the said

    application contending that defendants No. 3 to 5 had issued

    notices to them claiming themselves to be the landlords of the suit

    property. It is specifically averred that the plaintiffs never entered

    into any tenancy with defendant No. 1, nor was any agreement,
    6

    oral or written, ever executed with him. Therefore, defendant No.

    1 cannot be treated as the landlord of the plaintiffs under any

    circumstance. It is further submitted that the civil suit earlier filed

    before the Court of the learned First Additional District Judge,

    Raigarh, pertains to the same suit property, and the issue of

    ownership/title is yet to be conclusively determined by a

    competent Civil Court. The present suit is not a suit for eviction

    but is an interpleader suit filed under Section 89 of the Code of

    Civil Procedure, and therefore, the Civil Court has proper

    jurisdiction to entertain and decide the same. On these grounds,

    the plaintiffs have prayed that the application filed by defendant

    No. 1 be rejected.

    5. After hearing the parties, the learned Trial Court, vide its order,

    allowed the application filed by the defendant No.1 under Order 7

    Rule 11 of CPC and rejected the suit of the plaintiffs, holding the

    same to be barred under Section 6 of the Act, 2011 as well as

    under Order 35 Rule 5 of CPC. Aggrieved by the said judgment,

    the plaintiffs preferred an appeal under Section 96 of the Code of

    Civil Procedure before the learned First Appellate Court. The

    learned First Appellate Court, vide impugned judgment and

    decree dated 30.08.2024, affirmed the order of the learned Trial

    Court, holding that by virtue of Section 6 of the Act of 2011, the

    Rent Controller has the jurisdiction to decide the question of

    ownership and title of the disputed property particularly when

    there is a dispute regarding landlord – tenant. Hence, the present
    7

    appeal.

    6. Learned counsel for the appellants submits that the learned trial

    Court as well as the learned First Appellate Court have erred in

    law in holding that the jurisdiction to decide the question of

    ownership and title vests with the Rent Controlling Authority by

    virtue of Section 6 of the Act, 2011, while completely overlooking

    the Explanation thereto, which expressly provides that disputes

    relating to title of property shall be adjudicated by the Civil Courts

    under the relevant laws. He submits that a conjoint and holistic

    reading of the scheme of the Act, including Sections 9 and 12

    along with the relevant Schedules, makes it abundantly clear that

    the powers of the Rent Controller are confined to regulating the

    rights and obligations of landlords and tenants and do not extend

    to adjudication of title/ownership disputes. Hence he submits that

    the interpleader suit filed by the plaintiffs seeking declaration and

    injunction was clearly maintainable before the Civil Court. He

    further submits that the finding of both the Courts that the suit is

    barred under Order 35 Rule 5 CPC is perverse and contrary to the

    settled position of law, inasmuch as the question of maintainability

    of an interpleader suit involves mixed questions of law and fact,

    which could not have been decided at the threshold under Order 7

    Rule 11 CPC without trial. Thus, learned counsel submits that the

    impugned judgments suffer from patent illegality and perversity,

    giving rise to substantial questions of law for consideration by this

    Court. In support of his contention, learned counsel placed
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    reliance upon the judgment passed by the Bombay High Court in

    case of Packing Paper Products vs. NICAF Pvt. Ltd. reported

    in (2007) 5 MhLJ 34.

    7. I have heard learned counsel for the appellant on the question of

    admission, and the impugned judgments and decrees passed by

    the learned trial Court as also the learned First Appellate Court

    have been carefully examined.

    8. In the present case, both the learned Trial Court and the learned

    First Appellate Court, upon due consideration of the pleadings,

    applications, and the oral and documentary evidence on record,

    have concurrently held that the interpleader suit filed by the

    plaintiffs was not maintainable. The Trial Court, in its order dated

    19.12.2019, noted that the suit was presented as an interpleader

    under Section 88 of the Code of Civil Procedure, seeking

    declaration of the landlord among Defendants No. 1 to 5 and

    permanent injunction against interference in the possession of the

    plaintiffs. The Court observed that the plaintiffs had not complied

    with the requirements of Order 35 Rules 1 & 5 CPC for

    interpleader suits and that the Rent Control proceedings under

    Section 6 of the Act, 2011 were already instituted to resolve

    disputes between landlords and tenants regarding rights, title, and

    obligations of the parties. Accordingly, the Trial Court allowed the

    application under Order 7 Rule 11 CPC and dismissed the

    plaintiffs’ suit.

    9

    9. For the sake of convenience, order 35 Rule 1 & 5 of CPC are

    reproduced hereinbelow :-

    “Order XXXV – INTERPLEADER

    Rule 1. Plaint in interpleader-suit- In every suit of

    interpleader the plaint shall, in addition to the other

    statements necessary for plaints, state-

    (a) that the plaintiff claims no interest in the subject-

    matter in dispute other than for charges or costs;

    (b) the claims made by the defendants severally;
    and

    (c) that there is no collusion between the plaintiff
    and any of the defendants

    xxxx xxxx xxxx

    Rule 5. Agents and tenants may not institute

    interpleader-suits.- Nothing in this Order shall be

    deemed to enable agents to sue their principals, or

    tenants to sue their landlords, for the purpose of

    compelling them to interplead with any persons other

    than persons making claim through such principals or

    landlords.”

    10. Further it is also convenient to note here the Section 6(1) of the

    Act, 2011, which states:

    “6. Constitution of the Rent Control Tribunal – (1)
    10

    The State Government shall by notification constitute,

    within thirty days of this Act, a Tribunal in terms of

    Articles 323-B of the Constitution, to be called as

    Chhattisgarh Rent Control Tribunal, to give effect to the

    provisions of this Act, and for the adjudication or trial of

    any disputes, complaints, or offences with respect to

    rent, its regulation and control and tenancy issues

    including the rights, title and obligations of landlords

    and tenants.

    Explanation- Matters relating to transfer of

    property and/or disputes regarding title over any

    property shall continue to be considered under relevant

    laws by the courts of law.”

    11. From perusal of the above provisions, it appears that the Act of

    2011 specifically provides that the Rent Control Tribunal is

    constituted under the Act of 2011 to adjudicate the disputes

    regarding title and obligation of landlord. In the present case, the

    suit primarily concerned the determination of title and rights of

    landlords over the property, which falls under the exclusive

    jurisdiction of the Rent Controller and the Chhattisgarh Rent

    Control Tribunal as provided under Section 6(1) of the 2011 Act.

    The plaintiffs had also failed to comply with the procedural

    requirements of interpleader suits under Order 35 Rules 1 & 5

    CPC.

    11

    12. The object of the Act, 2011 is to provide for adjudication matters

    relating to rent by a Tribunal and to promote leasing of

    accommodation by balancing the interests of landlords and

    tenants. Thus, the order allowing the application under Order 7

    Rule 11 of the CPC filed by the defendant No.1 by the learned trial

    Court is just and proper as the suit itself is not maintainable.

    13. Subsequently, the First Appellate Court, after re-appreciation of

    the submissions and legal provisions, affirmed the findings of the

    Trial Court. The Appellate Court held that the interpleader suit

    primarily pertained to disputes between landlords and tenants

    over ownership and rights of property, which fall within the

    exclusive jurisdiction of the Rent Controller and the Chhattisgarh

    Rent Control Tribunal under Section 6(1) of the 2011 Act. The

    appeal filed by the plaintiffs was thus devoid of merit, and the

    Appellate Court confirmed the Trial Court’s order dated

    19.12.2019. In this manner, it is clear that the concurrent findings

    recorded by both the learned Courts are in accordance with law

    and facts, and no perversity, misreading of evidence, or legal

    infirmity is demonstrated so as to warrant interference with the

    findings recorded by both the Courts in exercise of jurisdiction

    under Section 100 of the Code of Civil Procedure.

    14. Furthermore, the judgment relied upon by the learned counsel for

    the appellants, rendered by the Bombay High Court in case of

    Packing Paper Products (supra), is distinguishable and not
    12

    applicable to the facts of the present case, as the same was dealt

    with procedural aspects of interpleader in a commercial dispute

    and did not involve statutory Rent Control proceedings or disputes

    over landlord-tenant ownership and rights under the Chhattisgarh

    Rent Control Act, 2011.

    15. Even otherwise, the scope of interference in a Second Appeal

    under Section 100 of the Code of Civil Procedure is extremely

    limited. Interference is permissible only when the appeal involves

    a substantial question of law. Concurrent findings of fact recorded

    by both the Courts cannot be interfered with unless such findings

    are shown to be perverse, based on no evidence, or contrary to

    settled principles of law.

    16. In the present case, both the Trial Court and the First Appellate

    Court have concurrently recorded findings, on the basis of

    evidence available on record, that the appellants/ plaintiffs failed

    to establish his case by placing cogent and sufficient material.

    The appellants failed to demonstrate any perversity, illegality, or

    misapplication of law in the findings so recorded.

    17. The questions sought to be raised in the present Second Appeal

    essentially relate to re-appreciation of evidence and challenge to

    concurrent findings of fact. Such questions do not give rise to any

    substantial question of law within the meaning of Section 100 of

    the Code of Civil Procedure.

    13

    18. It is well established that when there is a concurrent finding of

    fact, unless it is found to be perverse, the Court should not

    ordinarily interfere with the said finding.

    19. In the matter of State of Rajasthan and others Vs. Shiv Dayal

    and another, reported in (2019) 8 SCC 637, reiterating the settled

    proposition, it has been held that when any concurrent finding of

    fact is assailed in second appeal, the appellant is entitled to point

    out that it is bad in law because it was recorded de hors the

    pleadings or based on misreading of material documentary

    evidence or it was recorded against any provision of law and

    lastly, the decision is one which no Judge acting judicially could

    reasonably have reached.

    20. Be that as it may, the argument advanced by learned counsel for

    the appellants and the proposed question of law cannot be

    regarded as satisfying the test of being ‘substantial question of

    law’ within the meaning of Section 100 of CPC. These questions,

    in my view, are essentially question of facts. The appellant failed

    to raise any substantial question of law which is required under

    Section 100 of the CPC. In any event, the Second Appeal did not

    involve any substantial question of law as contemplated under

    Section 100 of the CPC, no case is made out by the appellants

    herein. The judgments impugned passed by the learned trial

    Court as as well as by the learned First Appellate Court are just

    and proper and there is no illegality and infirmity at all.
    14

    21. Having heard learned counsel for the appellants and on perusal of

    the record of the case and in view of the above settled legal

    proposition, I find absolutely no merit in this appeal, involving no

    question of law much less substantial question of law within the

    meaning of Section 100 of the CPC. In my view, the judgment and

    decree passed by both the Courts appear to be just, proper and

    legal. The findings recorded are based on proper appreciation of

    evidence available on record and there is no illegality or perversity

    in the same and they do not call for any interference.

    22. Accordingly, the Second Appeal fails and is hereby dismissed

    resulting in upholding the judgment and decree of the Appellate

    Court as also the order passed by the Trial Court.

    23. However, the appellants are at liberty to approach the appropriate

    forum, as may be available to him under the provisions of law, if

    so aggrieved, for redressal of their grievance.

    Sd/-

    (Bibhu Datta Guru)
    Judge

    $. Bhilwar



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