Jugal Kishore Khanna (D) Thr LRs vs Sudhir Khanna
Background
Two branches of a family, descended from a common ancestor's two sons, disputed ownership of two Delhi properties: one in Kamla Nagar and one in Malcha Marg. The appellants (descendants of one son) claimed the Kamla Nagar property became their exclusive property after an alleged 1979 family settlement in which they paid Rs. 55,000 to buy out the other branch's share, while the respondents (descendants of the other son) claimed continuing joint rights. The Delhi High Court had ruled the Kamla Nagar property was still jointly owned (rejecting the settlement story) while confirming the Malcha Marg property belonged exclusively to the respondents' side.
Decision Breakdown
The Supreme Court restored the trial court's original finding that the Kamla Nagar property belonged exclusively to the appellants, reversing the High Court on this point. It reasoned that the Rs. 55,000 payment in 1979 (a substantial sum, closely tracking the then-current valuation of a 50% share) could not be explained on any basis other than a genuine buyout of the other branch's interest, especially since the respondents' side never paid property expenses, never claimed rent from tenants, and raised no dispute for over four decades until 1983. On the Malcha Marg property, the Court upheld the concurrent findings of both lower courts that it belonged exclusively to the respondents' side, since there was no evidence it was purchased with joint family funds.
Lesson Learnt
In family property disputes, courts give significant weight to decades of unchallenged possession, tax records, and conduct like tenants' rent never being claimed by the other side: silence and inaction over a long period can itself become strong evidence of who truly owns a property, even without a formal registered document.