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Merugu Babu vs The Branch Manager
2026 Latest Caselaw 316 Tel

Citation : 2026 Latest Caselaw 316 Tel
Judgement Date : 2 April, 2026

[Cites 2, Cited by 0]

Telangana High Court

Merugu Babu vs The Branch Manager on 2 April, 2026

 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT
                    HYDERABAD

     HON'BLE SRI JUSTICE SUDDALA CHALAPATHI RAO

        A.S.NO.607 OF 2009, TR.A.S.NOs.16 & 20 OF 2011

                         DATE: 02.04.2026
A.S.No.607 of 2009:

Between:

Merugu Babu s/o. Chennaiah,
R/o.H.No.5-11-571, Srinagar Colony,
Vidyaranyapuri, Hanamkonda, Warangal Dist.
                                                      .... Appellant/
                                                           Plaintiff
            And

The Branch Manager, Kakatiya Grameena Bank,
(presently taken over by AP Grameena Vikas Bank),
Mallampalli Branch, Warangal District and another.
                                                 .... Respondents/
                                                      Defendants
COMMON JUDGMENT:

All these appeals have been filed arising out of common

judgment and decree, dated 15.07.2008 passed in O.S.No.192 of 2004

and O.S.No.526 of 2004 on the file of Principal Senior Civil Judge at

Warangal, and the subject property of the suit schedule property of

the said suits is one and the same, and the parties are interconnected

with each other, all the Appeals are heard together and disposed of

by this common judgment.

2. O.S.No.192 of 2004 is filed by Mr. Merugu Babu against his

own sister, by name, Naganaboina Mallamma for grant of perpetual

injunction, and O.S.No.526 of 2004 is filed by Mr. Merugu Babu for

recovery of Rs.5,00,000/- towards damages and arrears of rent for

the period from 01.03.2003 to 31.10.2004 @ Rs.3,800/- per month

along with future interest against the defendants-Kakatiya

Grameena Bank. O.S.No.526 of 2004 is partly decreed in favour of

the plaintiff-Mr. Merugu Babu and that O.S.No.192 of 2004 is also

decreed with costs restraining the defendant-Smt.N.Mallamma

therein from interfering into the peaceful possession and enjoyment

of the plaintiff over the suit schedule property.

3. Appeal in A.S.No.607 of 2009 has been filed by the plaintiff in

O.S.No.526 of 2004 before this Court for granting the suit relief.

4. Appeal in A.S.No.109 of 2008 is filed by the A.P. Grameena

Vikas Bank represented by its Manager and another aggrieved by

the judgment and decree passed in O.S.No.526 of 2004 before the

Principal District Judge at Warangal.

5. Appeal in A.S.No.129 of 2008 is filed by Smt. Naganaboina

Mallamma, aggrieved by the judgment and decree passed in

O.S.No.192 of 2004 before the Principal District Judge at Warangal.

6. The Appeals i.e., A.S.No.109 and A.S.No.129 of 2008 pending

before the Principal District Judge at Warangal, were subsequently

transferred to this Court, and renumbered as Tr.A.S.No.20 of 2011

and Tr.A.S.No.16 of 2011, respectively, and the same have been

clubbed with A.S.No.607 of 2009.

7. O.S.No.192 of 2004 is taken as a lead case, and the contentions

and findings arrived at by the Prl. Senior Civil Judge at Warangal, in

the judgment and decree, dated 15.07.2008 are herewith addressed

for better understanding of the cases and are dealt with in the lead

case.

O.S.No.192 of 2004 (lead case):

8. The brief facts of the case are that a Gift Settlement Deed dated

22.09.1986 was executed by the defendant in favour of the plaintiff

and his own sister Smt. Kanneboina Saroja and by virtue of gift

settlement deed, the plaintiff and his sister Smt. K.Saroja became

absolute owners and possessors of the vacant land admeasuring 292

square yards, and that the plaintiff obtained permission from the

Gram Panchayat to construct a RCC building in the said land and

the permission was granted by the then Gram Panchayat vide

proceeding No.24.04.1991 and the plaintiff by spending his own

money for constructed the building consisting of 4 rooms along with

8 feet portico on Southern side and 6 feet balcony on Northern and

Eastern sides of the building, including open land admeasuring 292

square yards. It is stated that the plaintiff and his sister Smt. K.Saroja

had been in possession and enjoyment of the property and after

completion of building, the same was let-out to Kakatiya Grameena

Bank.

9. That in the year 1991, the plaintiff-Merugu Babu has let-out

the premises to Kakatiya Grameena Bank by executing a lease deed

in the month of March, 1992 and M/s. Kakatiya Grameena Bank

(defendant Nos.1 and 2) have agreed to pay rent of Rs.400/- per

month, which was renewed for another three years from 01.03.1995

to 28.02.1998 on enhanced rental @ 750/- per month, which was

further renewed for five years from 01.03.1998 to 28.02.2003 @

Rs.1500/- per month.

10. It is further stated that after expiry of lease period in 1998, no

information was given to the plaintiff regarding the renewal of lease,

but the Bank vacated the said building and in the meanwhile, the

plaintiff asked the defendant-Bank for rents on several occasions for

repair and maintenance of the suit building and further, it is stated

by the Bank/defendant Nos.1 and 2 that rent for the month of

March, 2003 was deposited by the defendant-Bank in the over draft/

loan account of the plaintiff and it was stated by the defendant-Bank

that due to dispute over the title of the suit property, the rent from

April, 2003 to September, 2004 was deposited in a separate sundry

deposit account. The plaintiff contended that he issued a letter dated

31.03.2003 to the defendant-Bank demanding to enhance rental @

Rs.3,800/- per month w.e.f. 01.03.2003 and as there was no reply

from the bank, the plaintiff treated the silence of the Bank as an

implied consent for the enhancement of the rent and thereafter,

defendant No.1-Bank said to have addressed a letter dated

23.04.2004 informing about the shifting of the Bank to another

building from May, 2004 onwards, and thereafter, the plaintiff has

filed the suit in O.S.No.526 of 2004 against the defendant-Bank

claiming rents due along with the arrears of rent and damages of

Rs.5,00,000/-.

11. Further, the plaintiff has also filed O.S.No.192 of 2004, against

his sister Smt. Naganaboina Mallamma for perpetual injunction

stating that the defendant therein has no right over the suit schedule

property, having gifted the said suit schedule property vide

registered settlement deed and also the construction of building

thereupon was completed by obtaining building permission from

the competent authorities, and it is stated by the plaintiff that the gift

settlement deed executed by the defendant has been acted, and that

now the defendant has been trying to interfere with the peaceful

possession and enjoyment of the plaintiff over the respective suit

schedule property, and therefore, the plaintiff filed the above suit for

perpetual injunction against his sister Smt. Naganaboina Mallamma.

12. Learned trial Court has framed the following issues after filing

the written statements by both the defendants:

In O.S.No.192 of 2004:

1. Whether the plaintiff is entitled for perpetual injunction as prayed for ?

2. To what relief ?

In O.S.No.526 of 2004:

A. Whether the plaintiff is entitled for the suit claim of Rs.5,00,000/- towards damages as prayed for ? B. Whether the plaintiff is entitled for arrears of rent with cumulative and compound bank interest for the period from 01.03.2003 till 31.10.2004 @ Rs.3,800/- in all Rs.76,000/- along with future effect i.e., till the disposal of the suit ?

C. Whether the court fee is insufficient ?

D. Whether the suit is bad for misjoinder of parties i.e., D2 ?

E. Whether the court has no jurisdiction to try the suit ?

F. To what relief ?

13. In view of the fact that the suit schedule property in both the

suits is one and the same, both the suits were clubbed together and

evidence was let-in.

14. After framing the above issues, the learned trial Court has

considered the oral and documentary evidence in both the suits i.e.,

P.Ws.1 to 3, DWs.1 to 3, and Exs.A1 toA15 and Exs.B1 to B10 in

O.S.No.192 of 2004 and P.Ws.1 & 2 and DW.1 and Exs.A1 toA33 and

Exs.B1 and B2 in O.S.No.526 of 2004.

15. After appreciating the oral and documentary evidence placed

on record on behalf of parties, the learned trial Court by common

judgment and decree, dated 15.07.2008, granted the damages of

Rs.50,000/- against the defendant-Bank along with rents to be paid

from April, 2003 to September, 2004 by partly decreeing the

O.S.No.526 of 2004, and also decreed the suit in O.S.No.192 of 2004

by restraining the defendant therein Smt.Naganaboina Mallamma

from interfering with the peaceful possession and enjoyment of the

plaintiff over the suit schedule property.

16. Now the appellant/plaintiff in O.S.No.526 of 2004 has filed

A.S.No.607 of 2009 claiming enhancement of damages @

Rs.5,00,000/- as against Rs.50,000/- granted by the trial Court, and

that Tr.A.S.No.20 of 2011 (A.S.No.109 of 2008) is filed by the

appellants/defendant-bank authorities challenging the partly

decreetal of O.S.No.526 of 2004, and Tr.A.S.No.16 of 2011

(A.S.No.129 of 2008) is filed by Smt. Naganaboina Mallamma, who

is the defendant in O.S.No.192 of 2004.

17. The trial Court has categorically held that the Bank was in

possession of the suit building bearing No.1-140 as a tenant for a

specific period till 2004 and though the period of tenancy expired in

February, 2003, and the defendant No.1-bank without enhancing the

rent or without pending lease deed continued in possession of the

suit schedule building till 2004 and held that the suit schedule

property was vacated by the defendant-bank on 12.07.2004 and the

said fact was came to the notice of the plaintiff on 22.09.2004 and

that the trial Court categorically held that the plaintiff is entitled to

receive rent from April, 2003 to September 2004, as the rent for the

month of March, 2003 was deposited in the loan account of the

plaintiff and in the absence of any evidence regarding notice for

enhancement of rent from Rs.1,500/- to Rs.3,800/- per month, as the

plaintiff has not adduced any proof to show that the property would

fetch rent @ Rs.3,800/- per month, learned trial Court come to a

conclusion and fixed the enhanced rentals @ Rs.2,250/- i.e., 10%

enhanced rent for every year and the trial Court held that non-

payment of rent is caused inconvenience to the plaintiff and that

though the plaintiff claimed Rs.5,00,000/-, which in the opinion of

the trial Court was excessive, however an amount of Rs.50,000/- was

awarded towards the damages to the plaintiff.

18. Insofar as O.S.No.192 of 2004, the evidence on record was

considered by the trial Court and it is stated that defendant therein

i.e. Smt. N.Mallamma, who has already gifted the suit building to

the plaintiff, slept over for more than 12 years from 1992 to 2004 i.e.,

the date of registered gift settlement deed till to the vacation of the

permission by the bank authorities and only in the year 2004 the said

suit was filed claiming to be the owner of the suit schedule property

and demanded rents. The learned trial Court having appreciated the

evidence on record has categorically held that the lease deed was

executed by the plaintiff in O.S.No.526 of 2004 and the construction

was carried by her brother. In that view of the matter, the defendant

in O.S.No.192 of 2004 along with Smt. Naganaboina Mallamma

cannot be termed as joint owners of the suit schedule property in

view of the gift settlement deed executed in favour of the plaintiff

vide document dated 22.09.1986, though it was alleged to be

cancelled by way of cancellation deed, dated 06.10.2003 and the

learned trial Court after holding that the plaintiff is the absolute

owner of the suit building by virtue of the gift settlement deed dated

22.09.1986 has categorically held that the plaintiff is sole owner and

possessor of the suit property by virtue of the gift settlement deed

and the gift settlement deed dated 22.09.1986 was acted upon and

though no proper evidence is placed to believe the same as there

was no valid proof is submitted by the defendant-Smt. N.Mallamma

and on that account, the suit filed by the plaintiff in O.S.No.194 of

2004 was decreed granting perpetual injunction to the plaintiff

restraining Smt. N.Mallamma and her men from interfering with the

peaceful possession and enjoyment of the plaintiff over the suit

schedule property.

19. Now, the appellant/plaintiff has filed A.S.No.607 of 2009

against the partly allowing O.S.No.526 of 2004 stating that the trial

Court has not granted the damages and has only granted meager

amount of Rs.50,000/- as damages and though the plaintiff is

entitled for Rs.5,00,000/- for damages, the trial Court has

erroneously granted Rs.50,000/- only and it is also the contention of

the learned counsel for appellant/plaintiff that though the

scheduled property would fetch Rs.3,800/- the trial Court erred in

granting rent @ Rs.2250/- per month and it has to be enhanced to

Rs.3,800/-.

20. Insofar as Tr.A.S.No.20 of 2011 (AS No.109 of 2008), which is

filed by the defendant-Bank in O.S.No.526 of 2004 would contend

that the rent from April, 2003 to September, 2004 was kept

separately in the sundry deposit account until the settlement of the

title dispute and that the trial Court erroneously enhanced rent from

Rs.1,500/- to Rs.2,250/- per month, which is not rational and it

should be reduced to Rs.1500/- per month.

21. Insofar as Tr.A.S.No.16 of 2011 (A.S.No.129 of 2008), the

appellant/defendant would contend that the trial Court ought to

have considered the cancellation of gift deed under Ex.B10, which is

the cancellation of gift deed, and the trial Court must have draw the

attention to Ex.B1-unregistered partition agreement, dated

28.02.2001. It is significant that the gift deed executed in favour of

the plaintiff was cancelled by virtue of Ex.B10, dated 06.10.2003. The

appellant would contend that the plaintiff has not derived any

source of title as gift settlement deed is cancelled, no right would be

accrued thereupon basing on the gift settlement deed, for all the

purposes the plaintiff cannot claim title over the schedule property

and that the bank cannot be directed to pay the rental amount to the

plaintiff.

22. Heard Smt. S.A.V. Ratnam, learned counsel for appellant in

A.S.No.607 of 2009, and Smt. V.Uma Devi, learned counsel for

appellants in Tr.A.S.No.20 of 2011 (A.S.No.109 of 2008) and

respondents in A.S.No.607 of 2009 and none appeared for appellant

in Tr.A.S.No.16 of 2011 and heard Smt. S.A.V.Ratnam for

respondent.

23. In all the Appeals considering the arguments by the respective

counsels for appellants as well as the respondents, the issues which

fall for consideration for consideration are that,

1. Whether the trial Court was justified in granting damages

@ Rs.50,000/- to the plaintiff and whether the plaintiff is

entitled for any enhancement ?

2. Whether the trial Court was justified in enhancing the rent

from Rs.1500/- to Rs.2250/- per month and whether the

plaintiff is entitled for enhancement of rent @ Rs.3800/-

per month; and

3. Whether the suit decreed in favour of the plaintiff in

perpetual injunction against Smt. N.Mallamma is justified

and whether the findings are proper and just ?

24. Now, the lead case is taken as A.S.No.607 of 2009, which is

filed against only partly allowing O.S.No.526 of 2004, and for

enhancement of damages and rentals by the plaintiff.

25. The 1st and 2nd issues whether the trial Court has granted

sufficient damages to the plaintiff for non-payment of admitted

rental amounts, admittedly, rental to the plaintiff is concerned, in

fact, the rent was being enhanced initially from Rs.400/- in the year

1992 to Rs.750/- upto 1998, and thereafter 1998 to 2000 enhanced

rentals were paid @ Rs.1500/- per month. However, there was no

subsequent rental agreement executed in favour of the defendant-

bank by the plaintiff as there was no fixation of any rentals. Though

the plaintiff claimed the enhanced rental @ Rs.3,800/- per month,

however the trial Court after considering the nature of increase of

rent periodically from Rs.400/- to Rs.1,500/- per month, has

followed the very same enhancement for subsequent year from

March, 2003 up to September, 2004 and in that view of the matter,

the learned trial Court has fixed enhanced rentals for the said period

@ 10% more than the amount i.e., Rs.1,500/- and enhanced it to

Rs.22,250/- per month.

26. In that view of the matter, it is categorically stated by the

defendant-bank that the Bank branch in the schedule premises was

shifted in the month of September, 2004, and admittedly, the bank

vacated the premises from September, 2004 and that there was no

lease deed from March, 2003 to September, 2004, and in that view of

the matter, the leaned trial Court has rightly fixed the amount of

enhanced rent @ Rs.2,250/- per month, by following the very same

proportionate of increase of rent from 1992 to 2003, when the lease

was subsisting by virtue of lease agreement.

27. In that view of the matter, the enhanced rental @ Rs.2,250/- as

arrived at by the trial Court is just and proper, and the said amount

is valid and it does not require any further enhancement and as

such, the contention of the learned counsel for appellant/plaintiff

that the defendant bank shall pay Rs.3,800/- per month is

misconceived and the said findings need no interference by this

Court.

28. So far as the amount of Rs.5,00,000/- claimed towards

damages for non-payment of amounts, at the enhanced rental is

concerned, the notice had been given by the plaintiff, and the

contention of the learned counsel for appellant seeking damages at

Rs.5,00,000/-, appears to be excessive, and the Bank vacated the

premises in September, 2004. The learned trial Court has rightly

assessed the damages at Rs.50,000/-, payable to the plaintiff, in the

absence of any lease agreement for the period from March 2003 to

September, 2004. Further, the amounts were already deposited into

the loan account of the plaintiff, which had been advanced on

several occasions, and were also utilized towards repairs and

maintenance of the suit building. In that view of the matter, the

findings arrived at by the learned trial Court by fixing the damages

@ Rs.50,000/- are also just and proper, and the same do not warrant

any interference by this Court.

29. In that view of the matter, the Appeal in A.S.No.607 of 2009

filed by the appellant/plaintiff is misconceived and the judgment

and findings arrived at by the learned trial Court are proper and do

not warrant any interference by this Court.

30. Insofar as Tr.A.S.No.20 of 2011 (A.S.No.109 of 2008), which is

filed by the defendant-bank, wherein enhanced rentals @ Rs.2,250/-

per month fixed by the trial Court was challenged and in that view

of the matter, the very same issue which is answered by this Court

in the preceding paragraphs in A.S.No.607 of 2009 holds good, and

the Appeal filed by the defendant-bank is misconceived and

accordingly is liable to be dismissed.

31. Insofar as Tr.A.S.No.16 of 2011 (A.S.No.129 of 2008), the

assertion of the appellant that the trial Court ought to have

considered the cancellation of gift deed under Ex.B10, where the gift

settlement deed was cancelled by the defendant in O.S.No.192 of

2004. As seen from the record, the gift was executed vide registered

gift settlement deed vide document dated 22.09.1986, and the

plaintiff has also applied for sanction of building for construction of

commercial complex over the said property and the said permission

was obtained from the competent authority, and the building was

constructed and let-out to the defendant-Bank in O.S.No.526 of 2004,

and that it is trite law that once the gift deed is executed out of love

and affection and is acted upon subsequently and thus, gift deed

cannot be cancelled unilaterally. In that view of the matter, the

alleged cancellation deed marked as Ex.B10 does not carry any legal

significance in the present case. It is well settled law that gift deed

once acted upon cannot be cancelled unilaterally, and as such, the

cancellation of gift deed is impermissible in the eye of law, as held

by the Hon'ble Supreme Court in Thota Ganga Laxmi and another

v. Government of Andhra Pradesh and others 1 and Satya Pal

Anand v. State of Madhya Pradesh and others2. If the parties seek

cancellation of the said document, they must approach the

competent Civil Court, subject to their entitlement, and that once a

gift deed is validly executed, the question of its unilateral revocation

does not arise and is legally untenable, and in that view of the

matter, Ex.B10 cannot be given any credence and no right will flow

to the defendant-Smt. N.Mallamma in O.S.No.194 of 2004. Thus, the

trial Court rightly observed that, in view of the permission being

granted to the plaintiff in the lead case, coupled with registration of

gift settlement deed in his favor and as such, the title and possession

is totally vested with the plaintiff. In that view of the matter, the

(2010) 15 SCC 207

(2016) 10 SCC 767

findings arrived at by the trial Court holding that the plaintiff in the

lead case is entitled for grant of perpetual injunction restraining the

appellant/defendant in Tr.A.S.No.16 of 2011 are justified and

proper, and the same needs no interference by this Court and said

Appeal is liable to be dismissed.

32. The learned counsel for appellant/plaintiff in A.S.No.607 of

2009 would contend that though the plaintiff claiming amounts of

enhanced rentals from the date of suit to as on today, the plaintiff is

entitled to receive the amounts by periodical enhancement of the

rentals and the learned counsel for the defendant-bank stated that

the property has already been vacated in September, 2004 and

further amounts were also not claimed in the suit, and the trial

Court has also considered the very same fact and categorically held

that the building has been vacated by the bank in September, 2004

and in that view of the matter, the plaintiff is not entitled for further

amounts from the bank and consequently, the Appeal in A.S.No.607

of 2009 and Tr.A.S.No.20 of 2011 are liable to be dismissed.

33. In the light of above discussion and observations, all the

Appeals in A.S.No.607 of 2009, Tr.A.S.No.20 of 2011 and

Tr.A.S.No.16 of 2011 are devoid of merits and accordingly

dismissed, by confirming the common judgment and decree dated

15.07.2008 passed by the trial Court in the original suits.

34. There shall be no order as to costs. Pending miscellaneous

applications if any shall stand closed.

________________________________ SUDDALA CHALAPATHI RAO,J Date: 02.04.2026 kkm

 
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