Supreme Court Quarterly Digest 2026 - Property Law

Property Law - Supreme Court Quarterly Digest Jan - Mar, 2026Confiscation of Property — Death of Public Servant during pendency of Appeal — Effect on Confiscation Proceedings against spouse/relative - The Supreme Court held that confiscation proceedings initiated under the Bihar Special Courts Act, 2009 (BSCA) do not automatically abate or get set aside upon the death of the public servant if the property is held by a relative or spouse who was also put to notice – Noted that "abatement" in criminal proceedings discontinuation due to the death of the accused is distinct from "acquittal" and does not constitute a comment on the merits of the case - Under Section 19 of the BSCA, confiscated property can only be returned in two specific scenarios: (a) modification or annulment of the order by the High Court, or (b) acquittal by the Special Court - Since the Act does not account for the death of a public servant as a ground for returning property, and because non-public servants can be proceeded against for holding illegally acquired assets, the High Court is required to decide such appeals on their merits rather than dropping them due to the death of the primary accused. [Relied on Yogendra Kumar Jaiswal v. State of Bihar (2016) 3 SCC 183; Gurmail Singh v. State of U.P. (2022) 10 SCC 684; P. Nallammal v. State (1999) 6 SCC 559; Para 8-12] State of Bihar v. Sudha Singh, 2026 LiveLaw (SC) 276 : 2026 INSC 272Doctrine of Lis Pendens in Money Decrees – Supreme Court rejected the argument that lis pendens does not apply to simple money suits - If Section 52 of the Transfer of Property Act were excluded from money suits, a judgment-debtor could easily defeat the decree by alienating property before execution, rendering the judicial process meaningless - Noted that "the true difficulties of a litigant begin only after they have obtained a decree". R. Savithri Naidu v. Cotton Corporation of India, 2026 LiveLaw (SC) 151 : 2026 INSC 150 : AIR 2026 SC 913Joint Family Property – Burden of Proof - Supreme Court affirmed that while the mere existence of a joint family does not render all properties joint, once it is established that ancestral properties yielding income existed and acquisitions were made during the subsistence of the joint family, the burden shifts to the person asserting self-acquisition to prove the same - noted that Hindu law does not require coparceners to establish the exact source of funds for every acquisition made by the Karta if a sufficient nucleus is shown. [Relied On Shrinivas Krishnarao Kango v. Narayan Devji Kango and Ors. (1954) 1 SCC 544; Pattusami Padayachi v. Mullaiammal and others MLJ (II) 1976 225; Paras 29, 30] Dorairaj v. Doraisamy, 2026 LiveLaw (SC) 119 : 2026 INSC 126Possession and Injunction – The Supreme Court set aside a High Court judgment that had dismissed a suit for permanent prohibitory injunction despite concurrent findings of possession in favor of the appellant by the Trial Court and First Appellate Court – Noted that the High Court failed to frame a specific substantial question of law regarding the correctness or validity of the findings on possession returned by the lower courts - The Supreme Court held that interference with concurrent findings of fact under Section 100 CPC is permissible only on limited grounds, such as perversity, misreading of evidence, or consideration of inadmissible evidence. P. Elaiyappan v. Natarajan, 2026 LiveLaw (SC) 219Possession of Auction Purchaser – Supreme Court observed that while Order 21 Rule 95 CPC provides a procedure for an auction purchaser to take possession, if the purchaser actually gains possession and maintains it on the date of the suit's institution, they cannot be denied an injunction against a party with no title who seeks to interfere - Even if a specific issue on possession was not formally framed by the Trial Court, since the parties went to trial fully aware that the issue was central and led evidence accordingly, they cannot later claim prejudice - Held – The High Court erred by not considering the extensive documentary evidence (e.g., revenue records, factory registrations, tax payments) relied upon by the First Appellate Court to establish the appellant's possession - The matter was remanded to the High Court for fresh consideration within the scope of Section 100 CPC. [Relied on Nagubai Ammal and Others v. B. Shama Rao & Ors., (1956) 1 SCC 698; B. Arvind Kumar v. Govt. of India & Ors., (2007) 5 SCC 745; Paras 19-25] P. Elaiyappan v. Natarajan, 2026 LiveLaw (SC) 219Property Law — Declaration of Title — Adverse Possession — A claim for perfection of title by adverse possession cannot be sustained against the State/Union regardless of the duration of possession if the claimant fails to prove the specific point of time and basis upon which their predecessors entered possession - a decree obtained in an earlier suit where the true owner (Union of India) was not impleaded is non-est and not binding upon the Union –...

Supreme Court Quarterly Digest 2026 - Property Law

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Supreme Court Quarterly Digest 2026 - Property Law

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