P. Elaiyappan vs Natarajan on 24 February, 2026

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    P. Elaiyappan vs Natarajan on 24 February, 2026

                                                 IN THE SUPREME COURT OF INDIA
                                                  CIVIL APPELLATE JURISDICTION
    
                                             Civil Appeal Nos.         /2026
                                              @ SLP (C) Nos. 1989-1990/2024
    
    
         P.               ELAIYAPPAN                                                  ...Appellant
    
                                                                VERSUS
    
          NATARAJAN & ORS.                                                              ...Respondent(s)
    
                                                            O R D E R
    

    1. Leave granted. Heard learned counsel

    for the parties.

    SPONSORED

    2. These appeal(s) impugn common

    judgment and order of the High Court of

    Judicature at Madras1 dated 27.01.2023 in

    Second Appeal Nos. 704 and 705 of 2017.

    3. Two suits seeking permanent

    prohibitory injunction in respect of same

    property were instituted. Original Suit

    (for short, O.S.) No. 74 of 1998 was

    instituted by P. Elaiyappan (the appellant

    herein), inter alia, against Natarajan (the

    first respondent herein). Whereas O.S. No.

    371 of 1997 was instituted by the first

    Signature Not Verified respondent, inter alia, against the present
    Digitally signed by
    CHETAN ARORA
    Date: 2026.03.09
    16:29:14 IST
    Reason: appellant.

    1 High Court

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    4. There is no dispute that the suit

    schedule property was owned by one

    Ganapathy. Ganapathy suffered a money

    decree in execution of which, the suit

    property was sold through court conducted

    auction dated 03.05.1991 to one Ramasamy.

    Ramasamy vide sale deed dated 15.10.1991

    sold it to the present appellant.

    5. On the other hand, the first

    respondent, who instituted O.S. No. 371 of

    1997, claimed that though original owner of

    the suit property was Ganapathy, he died in

    an accident and prior to his death he had

    executed a registered Will in favour of the

    first respondent. As a result, the first

    respondent is the owner of the suit

    property.

    6. Interestingly, both sides claimed

    that they are in possession of the suit

    property and the other side is causing

    unlawful interference in their possession.

    7. The trial court decreed the suit of

    the present appellant whereas the suit of

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    the first respondent was dismissed.

    8. Aggrieved by the decree passed by the

    trial court, two first appeal(s) were

    preferred which were dismissed thereby

    affirming the decree passed by the trial

    court. Though no specific issue was framed

    on the question of possession, apparently,

    both sides led evidence on it as the same

    was implicit in the relief sought. Further,

    in paragraph 19 of its judgment, the first

    appellate court, on the question of

    possession, observed as follows2:

    “19. Suit properties were purchased by
    defendant Elaiyappan on 15.10.1991. After
    so purchasing, patta was granted in the
    name of defendant Elaiyappan in respect of
    the suit properties. The land ownership
    register for that is exhibit D-6. The
    notices given by the plaintiff Natarajan to
    the Revenue Officers not to change the name
    in patta are exhibits P-15 and P-16. But as
    exhibit D-6 was given in the name of
    defendant Elaiyappan, in the appeal filed
    by the plaintiff Natarajan to cancel that
    the Sub Collector passed an order dated
    22.03.1994 in exhibit P-20 that no order

    2 Note: The extract is copied from Annexure P-4. Possibility of typographical errors in the
    said Annexure are not ruled out.

    3

    can be passed for patta name transfer as
    the dispute as to title of the suit
    properties were pending in civil court. For
    the tapioca mill in the suit property, the
    registration certificate issued by the
    Deputy Commercial Tax Officer, Rasipuram is
    in the name of defendant Elaiyappan. That
    Form-D2 in exhibit D-7 is what was issued
    in the name of defendant Elaiyappan by the
    aforesiad Deputy Commercial Tax Officer,
    Rasipuram. That is exhibit D-8. In order to
    run tapioca mill in the suit properties,
    Small Scale Administration Registration
    Certificate has been given in the name of
    defendant Elaiyappan by the Tamil Nadu
    Government. That is exhibit D-9. For the
    tapioca mill in the suit properties which
    was in the name of Ganapathy, the
    Commissioner passed an order dated
    15.11.1993 transferring it in the name of
    defendant Elaiyappan. That is exhibit D-10.
    For running business in the suit properties
    in the name of Sri Lakshmi Seco Factory of
    Ganapathy, Deputy Chief Inspector of
    Industries, Salem passed an order exhibit
    D-12. The exhibits D-13 to D-16 confirm
    that the payments to be made to the
    government for the suit properties and the
    tax to be paid for the buildings situated
    therein were made by defendant Elaiyappan.
    Exhibit D-17 confirms that the defendant
    Elaiyappan is running the tapioca mill in
    the suit property and sending the product
    manufactured in the tapioca mill to Salem
    Starch and Seco Manufacturers Service

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    Industrial Co-operative Sangam. For the
    product manufactured in tapioca mill
    situated in the suit properties was being
    done by distribution representative
    Elaiyappan. For that sale tax has been
    collected by Collection Inspector. Exhibits
    D-18 and D-19 series are documents
    confirming it. Electricity connection in
    the suit properties are numbered 49 and 58.
    They have not been transferred in the name
    of defendant Elaiyappan. They are
    continuing in the name of Ganapathy. Still
    for the aforesaid electricity connection,
    it is confirmed by documents exhibits D-21
    and D-22 in the name of defendant. Exhibits
    D-23 and D-24 are the electricity payment
    cards filed in respect of the aforesaid
    electricity connections. Exhibit D-39 is a
    copy of cultivation Adangal Accounts
    proving that the suit properties are in the
    possession of Elaiyappan. Chitta has been
    issued in the name of defendant Elaiyappan
    for the suit properties. As such the
    aforesaid documents prove that the suit
    properties are in possession of defendant
    Elaiyappan. DWs 1 to 4 examined on behalf
    of the defendants also confirm that the
    suit properties are in possession of
    defendant Elaiyappan. When exhibit C-1
    commissioner’s report is perused, he has
    mentioned that when he inspected the suit
    properties Sri Laskhmi Seco Mills was
    functioning in the suit properties.
    Further, the commissioner has mentioned in
    his exhibit C-1 report that certificates

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    given for running the tapioca mill in the
    name of defendant Elaiyappan were found in
    the mill’s office room. Though the
    commissioner cannot be used as an
    instrument to prove as to in whose
    possession suit properties are, when the
    commissioner has mentioned through his
    report exhibit C-1 as to the features of
    the suit properties when he had inspected,
    it will confirm that the suit properties
    were in possession of the defendant
    Elaiyappan. When it has been proved on
    behalf of defendant Elaiyappan that the
    suit properties are only in the possession
    on the basis of the oral and documentary
    evidences filed, it is not possible for
    this Court to conclude that the contention
    on behalf of the plaintiff Natarajan that
    the suit properties are in his exclusive
    possession can be accepted.”

    9. Being aggrieved by dismissal of his

    appeals, the first respondent filed two

    second appeals before the High Court. While

    entertaining the Second Appeal, the High

    Court framed following substantial

    questions of law for its consideration:

    “i. Are the Courts below justified in
    dismissing the suit O.S. No. 271/1997 in
    spite of the fact that the appellant had
    proved the Will Ex. A2 in the manner known

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    to law?

    ii. Whether Court below was justified in
    granting decree in favour of respondent in
    O.S No. 74 of 1998 while respondent taken
    possession not in accordance with law?”

    10. Thereafter, the High Court proceeded

    to hold that, though title to the suit

    property vested in the appellant (i.e., P.

    Elaiyappan) consequent to a sale deed

    executed by the auction purchaser being in

    his favour, there is no documentary

    evidence on record to indicate that

    possession of the suit property was

    lawfully taken by the predecessor-in-

    interest of the appellant. Based on above,

    the High Court partly allowed the appeals

    and dismissed both suits by observing that

    the plaintiff (the appellant herein) had

    failed to prove his lawful possession on

    the date of institution of the suit.

    11. Aggrieved by the decision of the High

    Court, these appeal(s) have been preferred.

    12. The learned counsel for the appellant

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    has submitted that once the High Court had

    concluded that title in the suit property

    was with the present appellant, the

    appellant was entitled to injunction as he

    was in possession. It is also submitted that

    the High Court has ignored the findings of

    the two courts below on possession being

    with the appellant. Further, the High Court

    has not referred to the documents brought

    on record by the appellant to indicate that

    there was a running factory located over

    the land in suit which was run and managed

    by the appellant since before the

    institution of the suit and, therefore, on

    the date of institution of the suit, the

    appellant was in possession of the suit

    property and as such entitled to the relief

    of injunction.

    13. Additionally, it was argued that to

    obtain relief of injunction, the plaintiff

    must prove his title and possession on the

    date of institution of the suit. Once title

    is with the plaintiff, and he establishes

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    his possession over the suit property on

    the date of institution of the suit, he

    cannot be denied injunction, particularly

    against a person with no title, merely

    because such possession was obtained by

    private negotiation or other means. It is

    contended that the appellant had brought

    evidence on record to indicate that though,

    initially, there was resistance in handing

    over possession of the suit property, a

    decision was taken in a panchayat to hand

    over possession to the appellant and based

    on it, possession was taken over and the

    documentary evidence indicated that

    possession of the suit property was with

    the appellant on the date of institution of

    the suit. It has also been submitted that

    the second appellate court’s jurisdiction

    under Section 100 of the Code of Civil

    Procedure, 19083 is limited and findings of

    fact can be interfered with only where a

    finding is based either on no admissible

    3 CPC

    9
    evidence or on inadmissible evidence or

    suffers from misreading of evidence or

    ignorance of material evidence on record,

    or is perverse, which is not the case here.

    As both trial court and the first appellate

    court have referred to documentary as well

    as oral evidence in support of their

    respective findings, those findings were

    not amenable to interference in exercise of

    jurisdiction under Section 100 of CPC.

    Besides, the High Court did not even frame

    a question of law regarding the correctness

    or validity of the finding on possession

    returned by the first appellate court as

    well as the trial court.

    14. Based on the above submissions, it

    has been prayed that the order passed by

    the High Court be set aside and the decree

    passed by the first appellate court is

    restored.

    15. Per contra, learned counsel for the

    contesting respondent submitted that the

    evidence brought on record indicated that

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    the respondent had all throughout

    questioned the auction sale made in favour

    of the predecessor-in-interest of the

    appellant. Thus, even if challenge to the

    auction sale may not have succeeded, there

    was no question of surrendering or handing

    over of possession to the predecessor-in-

    interest of the appellant or to the

    appellant. Therefore, in absence of

    evidence that possession was taken over in

    accordance with the provisions of Order 21

    Rule 95 of CPC, there was no basis to hold

    that possession was with the present

    appellant. Moreover, if CPC prescribes a

    procedure for taking over possession of a

    property subjected to an auction, evidence

    of obtaining possession through out of

    court settlement or by private means has no

    sanctity in law.

    16. In such circumstances, it is

    submitted on behalf of the respondent, when

    possession of the suit property is

    disputed, the view taken by the second

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    appellate court absent documentary evidence

    to indicate handing over of possession,

    cannot be faulted. It has, thus, been

    prayed that these appeal(s) be dismissed.

    17. We have accorded due consideration to

    the rival submissions and have carefully

    perused the materials available on record.

    18. Before we address the vexed issue of

    possession, we may notice that the suit

    property was subjected to auction in

    execution of a money decree, and the said

    sale was confirmed in favour of the

    predecessor-in-interest of the appellant.

    It is trite law that title in immovable

    property vests in the auction purchaser on

    confirmation of sale4. No doubt, Order 21

    Rule 95 CPC provides for the procedure to

    take possession by an auction purchaser but

    if the auction purchaser gets possession

    and is in possession on the date of

    institution of the suit, in our view, he

    cannot be denied injunction against a non-

    4 4 B. Arvind Kumar V. Govt. of India & Ors., (2007) 5 SCC 745, paragraph 12

    12
    title holder seeking to interfere with his

    possession. Therefore, the question of

    possession on the date of institution of

    the suit was important for deciding the

    suit(s) in question.

    19. Surprisingly, it appears, a specific

    issue on possession was not framed.

    However, where parties go to trial with

    knowledge that a particular question is in

    issue, though no specific issue has been

    framed thereon, and adduce evidence

    relating thereto, they cannot claim

    prejudice for the issue being not

    specifically framed.5

    20. In the instant case, it appears,

    parties went to trial fully aware that

    issue of possession is central to the two

    suit(s), and they seem to have led evidence

    accordingly. A perusal of the lower

    court(s) judgment would indicate that they

    had taken notice of the documentary

    evidence which disclosed that there was a
    5 5 See: Nagubai Ammal and Others v. B. Shama Rao & Ors., (1956) 1 SCC 698 : 1956 SCC
    OnLine SC 14

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    running factory over the suit property, and

    some documents pertaining to the factory

    reflected the name of the current

    appellant.

    21. Besides, the first appellate court, in

    paragraph 19 of its judgment, has referred

    to various documentary evidence available on

    record to indicate the possession of the

    present appellant over the suit property.

    23. It is well-settled that where a

    finding is returned by a court and the same

    is assailed before the appellate court, the

    appellate court, if it is a court of fact,

    may reverse it by appreciating the evidence,

    but would have to record reasons in support

    of its conclusion. However, when the High

    Court exercises its jurisdiction under

    Section 100 of CPC, particularly where there

    are concurrent finding(s) of fact by two

    courts below, interference with it is

    permissible on limited grounds such as where

    the finding in question is perverse, or is

    based on consideration of inadmissible

    14
    evidence, or by misreading or grossly

    misconstruing the evidence, or is recorded

    without considering relevant evidence.

    24. In the present case, the second

    appellate court i.e., the High Court has not

    at all adverted to the documentary evidence

    relied by the first appellate court in

    support of its order affirming the trial

    court decree. In fact, the second appellate

    court has not even framed a question of law

    much less a substantial question of law to

    test the finding of the first appellate

    court on the issue of possession within the

    scope of Section 100 of CPC.

    25. In such circumstances, we are of the

    view that the matter requires

    reconsideration by the High Court as it had

    set aside the decree of the court below

    without considering whether the finding(s)

    of the court(s) below on plaintiff’s

    (appellant herein) possession over the suit

    property on the date of institution of the

    suit was amenable to interference within the

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    scope of jurisdiction under Section 100 of

    CPC.

    26. For the foregoing reasons, we deem it

    appropriate to remand the matter to the High

    Court.

    27. The appeal(s) are, accordingly, partly

    allowed. The impugned judgment and order of

    the High Court is set aside.

    28. The second appeal(s) shall stand

    restored on the file of the High Court to be

    decided afresh in accordance with law.

    29. No order as to costs.

    30. Pending application(s), if any, shall

    stand disposed of.

    …………………………………………………………..J
    [MANOJ MISRA]

    …………………………………………………………..J
    [MANMOHAN]
    New Delhi;

    February 24, 2026
    
    
    
    
                                  16
    ITEM NO.14                 COURT NO.14                 SECTION XII
    
                      S U P R E M E C O U R T O F     I N D I A
                              RECORD OF PROCEEDINGS
    
                         Civil Appeal Nos.         /2026
                          @ SLP (C) Nos. 1989-1990/2024
    
    

    [Arising out of impugned final judgment and order dated 27-01-2023
    in SA No. 704/2017 27-01-2023 in SA No. 705/2017 passed by the High
    Court of Judicature at Madras]

    P. ELAIYAPPAN Petitioner(s)

    VERSUS
    NATARAJAN & ORS. Respondent(s)

    IA No. 263491/2023 – EXEMPTION FROM FILING O.T.

    Date : 24-02-2026 This matter was called on for hearing today.

    CORAM :

    HON’BLE MR. JUSTICE MANOJ MISRA
    HON’BLE MR. JUSTICE MANMOHAN

    For Petitioner(s) :

    M/S. Ksn & Co., AOR
    Mr. V Balachandran, Adv.
    Mr. Siddharth Naidu, Adv.
    Mr. Saurabh Bharadwaj, Adv.

    For Respondent(s) :

    Mrs. Malavika Jayanth, AOR
    Ms. Isha Singh, Adv.

    UPON hearing the counsel the Court made the following
    O R D E R

    1. Leave granted.

    2. The appeal(s) are partly allowed in
    terms of the signed order which is placed
    on the file.

    3. Pending application(s), if any, shall
    stand disposed of.

    17

    (CHETAN ARORA) (NIKITA SINGH)
    ASTT. REGISTRAR-cum-PS COURT MASTER (NSH)

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