Delhi High Court Dismisses Appeal by Permissive Occupant — “Admission of No Ownership Sufficient for Decree Under Order XII Rule 6 CPC”: MoU Held Unenforceable, No Trial Required, Rs. 50,000 Cost Imposed for Abuse of Process

1. Court’s Decision

The High Court upheld the trial court’s ruling, dismissing the appellant’s appeal and affirming that the respondent was the rightful owner of the property. Since the appellant had admitted that she was not the owner and was occupying the property with the respondent’s permission, the court ruled that there was no need for a full trial. The appeal was dismissed with costs of Rs. 50,000 imposed on the appellant to cover litigation expenses.

2. Facts of the Case

• The respondent filed a suit for possession and mesne profits, claiming to be the absolute owner of the property.
• The appellant was allowed to stay temporarily in the property out of humanitarian concerns but later refused to vacate.
• The appellant contended that she was promised a share in the property as part of a settlement agreement (Memorandum of Understanding or MoU).
• A MoU was signed in 2013, in which the respondent allegedly agreed to transfer a portion of the property to the appellant.
• However, the trial court found that the MoU was never acted upon by the appellant, leading to the suit’s revival.

3. Issues Before the Court

1. Did the appellant have any legal right to continue occupying the property?
2. Was the 2013 MoU legally binding and enforceable?
3. Was the trial court justified in passing judgment under Order XII Rule 6 CPC based on admissions?

4. Petitioner’s (Appellant’s) Arguments

• The appellant claimed that the MoU granted her a right to live in the property, as the respondent had agreed to transfer a portion of it to her.
• She argued that the trial court should not have granted judgment without a full trial because factual disputes needed to be resolved.
• She contended that the respondent’s claim was driven by malice and that she had spent years maintaining the property.

5. Respondent’s Arguments

• The respondent argued that the appellant had no legal right over the property and was merely a permissive occupant.
• The MoU was not a legally binding document and was never implemented because of the appellant’s actions.
• The trial court was correct in granting judgment under Order XII Rule 6 CPC, as the appellant had made clear admissions regarding ownership and permissive use.

6. Analysis of the Law

The case was primarily decided under Order XII Rule 6 CPC, which states that courts can pass a judgment without a full trial if a party makes clear and unambiguous admissions in their pleadings or otherwise.

• Objective of Order XII Rule 6 CPC:
  • This rule prevents unnecessary prolongation of litigation where there is no material dispute.
  • Courts can issue summary judgments where key facts are admitted by one party.
• Court’s Interpretation:
  • Since the appellant admitted that she was not the owner, had entered the property with permission, and had no legal agreement proving ownership, there was no need for a full trial.
  • The MoU, relied upon by the appellant, was found to be unenforceable and unexecuted, meaning it did not grant her any rights.

7. Precedent Analysis

The court cited several important judgments that support the use of Order XII Rule 6 CPC for speedy justice:

1. Uttam Singh Duggal & Co. Ltd. v. United Bank of India (2000) 7 SCC 120
   • Courts should not unduly restrict the use of Order XII Rule 6 CPC, as it helps in avoiding unnecessary trials when facts are admitted.
2. Karam Kapahi v. Lal Chand (2010) 168 DLT 501 SC
   • Courts must use Order XII Rule 6 CPC to further justice and prevent delays.
3. Sushil Bhardwaj v. Ved Prakash Shastri (2009) 163 DLT 287
   • Admissions can be inferred not just from pleadings but also from documents and statements made during proceedings.

8. Court’s Reasoning

• The appellant admitted that the property belonged to the respondent.
• She admitted that she was allowed to stay only with permission.
• The MoU was not acted upon, and she had no evidence proving its enforceability.
• The respondent’s claim was legally justified, and there was no reason to delay the matter with a full trial.

9. Conclusion

• The court ruled that the appellant was merely a permissive occupant and had no legal right to retain possession.
• The appeal was dismissed, and the appellant was directed to vacate the property immediately.
• The court imposed a cost of Rs. 50,000 on the appellant for abusing the judicial process.

10. Implications of the Judgment

• Reinforces the use of Order XII Rule 6 CPC to resolve cases efficiently where facts are admitted.
• Clarifies that permissive occupation does not confer legal rights, even if the occupant has lived there for an extended period.
• Discourages misuse of legal proceedings to delay possession claims.
• Establishes that unexecuted agreements like MoUs cannot be used as a defense to continue unauthorized occupation of property.

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