In a significant legal ruling by the Supreme Court of India, the case of S.C. Bhalla v. Co-sharers 15 to 19 was examined to resolve an anomalous situation arising from the High Court judgment. The court focused on clarifying issues related to renditions of accounts and rent assessment in a longstanding property dispute. This judgment sheds light on the complex legal intricacies of ownership and responsibility in shared properties.
Facts
- Defendant No.3(a) filed an appeal challenging the preliminary decree for rendition of accounts, citing that the rent assessment was not appropriate.
- Defendant No.3(a) cannot be asked to render accounts as per the High Court decision.
- Defendant No.3(a) was not found to be in wrongful possession despite being the owner of a 1% share.
- Defendant No.3(a) had admitted to inducting tenants and the rent assessment was contested.
- The market rent rates for properties under Defendant No.3(a) and Defendants 15 to 19 were to be determined during the final decree.
- Counsel for the co-sharers owning 15% stated that they were not liable to render accounts as they had no income.
- Defendant No.3(a) was held responsible for making good any loss suffered by other co-sharers, even if he did not lease out the property.
- Two appeals were filed challenging the preliminary decree passed by the Trial Court, one by Defendant No.3(a) and the other by Defendants 15 to 19.
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Arguments
- Anomalous situation created by the impugned judgment passed by the High Court.
- Argument presented by learned counsel for the appellant-plaintiff.
- Highlighting the inconsistency or contradiction resulting from the judgment.
- Stressing the need for clarification or resolution of the situation.
Analysis
- The High Court erred in absolving defendant No.3(a) from rendering accounts despite his admission of renting out a portion of the property.
- The defendant No.3(a) purchased a share of the property and was found to be in possession of a substantial part which he claimed he had not let out.
- There was an issue raised about the authenticity of the rent notes provided by defendant No.3(a) regarding the tenancy of the property in his possession.
- The First Appellate Court accepted the contention of defendant Nos.15 to 19, relieving them from liability to render accounts based on their claimed ownership share, which is yet to be determined.
- The Trial Court had directed all parties to render accounts for rent collected or for portions in their possession, setting a rent assessment rate at ₹107/- per square ft. per month.
Decision
- The impugned judgments passed by the High Court are set aside.
- The matter has been pending at the stage of passing of preliminary decree for about two decades.
- The only dispute was regarding rendition of accounts by two co-sharers.
- The Trial Court is directed to expedite the proceedings and dispose of the matter within nine months.
- If defendant Nos. 15 to 19 are found to be in possession of a portion more than their share, they have two options for contribution to the common kitty.
- The options need to be exercised before the assessment of rent by the Trial Court.
- No order as to costs.
- Defendant No. 3(a), S.C. Bhalla, and defendant Nos. 15 to 19 are liable to render accounts and/or contribute rent as assessed by the Trial Court during the course of passing the final decree for the portions in their possession.
- The suit for partition was filed in the year 2005.
Case Title: RAJINDER KAUR (DECEASED)THROUGH LEGAL HEIR USHA Vs. GURBHAJAN KAUR (DECEASED) THROUGH LRS UPINDER KAUR (2024 INSC 552)
Case Number: C.A. No.-007946-007947 – 2024
