Citation : 2026 Latest Caselaw 719 Tel
Judgement Date : 15 April, 2026
IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
THE HON'BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH
AND
THE HON'BLE SRI JUSTICE G.M.MOHIUDDIN
WRIT APPEAL No.425 of 2026
DATE:15.04.2026
Between:
Jubilee Hills Educational Society
....Appellant
And
Jubilee Hills Co-operative
House Building Society and 2 others
....Respondents
JUDGMENT
Heard Sri Dama Seshadri Naidu, learned Senior Counsel
representing Sri Vivek Jain, learned counsel for the appellant;
Sri V.Hariharan, learned Senior Counsel representing Sri Rohit
Pogula, learned counsel for respondent No.1; Sri G.Bhaskar, learned
Government Pleader for Municipal Administration appearing for
respondent No.2 and Sri Midde Arun Kumar, learned Standing
Counsel for Greater Hyderabad Municipal Corporation (GHMC)
appearing for respondent No.3 and perused the record.
2. This writ appeal is preferred under Clause 15 of the Letters
Patent, against the order dated 30.03.2026 passed by the learned
Single Judge in W.P.No.3281 of 2026. By the said order, the learned
Single Judge allowed the writ petition by setting aside the building
permit dated 20.11.2024 bearing No.6202/GHMC/KHB/2024-BP
granted by the Greater Hyderabad Municipal Corporation (GHMC) in
favour of the appellant (Education Society), and remanded the matter
to the GHMC Commissioner for fresh consideration of the objections
raised by respondent No.1.
Factual matrix
3. Respondent No.1 Society, being the owner and lessor of land
admeasuring Ac.6.02 Gts., situated at Jubilee Hills, Hyderabad,
earmarked in the approved layout for educational/school purposes,
executed a registered Lease Deed dated 21.08.1987 in favour of the
appellant Education Society for establishment and running of an
educational institution, presently known as Jubilee Hills Public
School. The said lease was granted for a fixed term of thirty years.
Under Clause 8 of the Lease Deed, the appellant, as lessee, was
expressly authorized to raise structures and undertake constructions
for educational purposes as per approved plans, without requiring
any further written consent from respondent No.1. Clause 15 further
conferred upon the appellant an enforceable option to seek renewal
of the lease for a further period of thirty years, subject to compliance
with Clauses 2 to 6, 12 and 13 of the Lease Deed.
4. Upon the expiry of the original lease term in August, 2017,
the appellant had exercised its right of renewal by addressing letters
dated 17.04.2015 and 27.04.2017 requesting extension of the lease
in terms of Clause 15. However, respondent No.1, instead of effecting
renewal issued letter dated 16.07.2018 imposing an extraneous and
unlawful precondition, namely surrender of 3,000 Sq Yds from the
school premises for its office expansion, which demand was not
accepted by the appellant.
5. Aggrieved by the unreasonable withholding of renewal and
apprehending interference with its peaceful possession, the appellant
instituted O.S.No.797 of 2018 before the Chief Judge City Civil Court
at Hyderabad (for short 'trial Court') seeking specific performance of
the Renewal Clause 15 in the Lease Deed dated 21.08.1987. In the
said suit, the trial Court granted an interim order dated 13.11.2018
directing maintenance of status quo, which order was subsequently
extended from time to time and continues to remain in force.
6. During pendency of the aforesaid civil proceedings, the
Managing Committee of respondent No.1 considered the issue of
renewal and passed a resolution on 30.09.2020 approving extension
of the lease in favour of the appellant. Pursuant thereto, a renewed
Lease Deed dated 12.10.2020 was executed between the parties for a
further term of thirty years on revised terms. The said document was
duly stamped, though not registered, and was subsequently
impounded under the provisions of the Indian Stamp Act, 1899. The
existence of the renewed lease deed was also within the knowledge of
members of respondent No.1 Society in subsequent general body
meetings.
7. The appellant, being in longstanding possession and running
the school for several decades, applied before the GHMC for building
permission for construction of additional floors, extension of existing
blocks, and construction of a sports block. Upon scrutiny of the
application, submission of requisite documents, payment of
prescribed charges and fees, and furnishing of an Undertaking-cum-
Indemnity Bond agreeing to abide by the result of the pending civil
suit and not to claim equities, GHMC granted Building Permit
No.6202/GHMC/KHB/2024-BP dated 20.11.2024. Thereafter, the
appellant commenced construction works and substantial progress
was made.
8. Respondent No.1 addressed a representation dated 17.08.2023
to GHMC requesting that no building permission be granted in
favour of the appellant without production of a No Objection
Certificate (NOC) of respondent No.1 and a valid lease deed.
Notwithstanding such objections, the municipal authority, upon
prima facie satisfaction regarding possession, entitlement and
compliance with statutory requirements, proceeded to grant the
building permit in favour of the appellant.
9. Aggrieved by the grant of building permission, respondent
No.1 instituted the underlying W.P.No.3281 of 2026 before this Court
challenging Building Permit No.6202/GHMC/KHB/2024-BP dated
20.11.2024. By order dated 30.03.2026, the learned Single Judge,
while observing that disputed questions of fact could not
appropriately be adjudicated in exercise of writ jurisdiction,
nevertheless proceeded to record findings touching upon the
genuineness, validity and enforceability of the renewed Lease Deed
dated 12.10.2020 vis-à-vis the Registration Act, 1908 and the
Transfer of Property Act, 1882, and ultimately set aside the Building
Permit and remanded the matter to GHMC for fresh consideration
after hearing the parties.
10. Aggrieved by the said order the appellant has preferred the
present writ appeal.
Submissions on behalf of appellants
11. Learned Senior Counsel representing learned counsel for the
appellant, assailed the impugned order and has advanced his
submissions as under:
i) That the learned Single Judge, having observed that disputed
questions of fact are not amenable to adjudication in
proceedings under Article 226 of the Constitution of India,
nevertheless proceeded to examine and render findings on the
genuineness, validity and enforceability of the renewed Lease
Deed dated 12.10.2020, particularly with reference to the
provisions of the Registration Act, 1908 and Section 107 of the
Transfer of Property Act, 1882. Such issue constitutes a mixed
question of fact and law and forms the very subject matter of
lis pending in O.S.No.797 of 2018 before the trial Court.
ii) That while considering an application for building permission,
the jurisdiction of the Municipal Commissioner is confined to
examining whether the applicant establishes a prima facie title,
possession or entitlement to proceed with construction, and
not whether the applicant holds an indefeasible or conclusive
title. Reliance is placed on the judgments of the erstwhile High
Court of Andhra Pradesh in Hyderabad Potteries Private
Ltd. v. Collector, Hyderabad 1 and T. Rameshwar v.
Commissioner, Municipal Corporation of Hyderabad 2,
wherein it has been held that municipal authorities cannot
assume the role of civil Courts in adjudicating title disputes
inter se rival claimants.
iii) That the GHMC was justified in granting permission upon
prima facie satisfaction, as the appellant had produced the
original registered Lease Deed dated 21.08.1987, the renewed
Lease Deed dated 12.10.2020, and material evidencing
continuous possession and operation of the school for nearly
four decades..
iv) That even assuming the renewed Lease Deed dated 12.10.2020
to be unregistered, the same does not ipso facto render the
1 2001 (3) ALT 200 2 2006 (3) ALD 337
appellant a trespasser. Under Section 106 read with Section
107 of the Transfer of Property Act, 1882, where possession is
continued under an unregistered lease for a term exceeding
one year, the tenancy would operate as a tenancy from month
to month unless lawfully terminated in accordance with law.
Consequently, the appellant continues to retain a lawful right
to occupy and use the premises unless evicted through due
process.
v) That respondent No.1 had knowledge of the renewed Lease
Deed from 02.04.2023, as reflected in the General Body
Meeting wherein the issue of renewal was discussed, and such
proceedings were later confirmed in the meeting dated
24.09.2023. Despite such knowledge, respondent No.1 did not
institute any declaratory proceedings under Section 34 of the
Specific Relief Act, 1963 challenging the said deed. Further,
the Building Permission was granted on 20.11.2024,
construction activities were commenced, and only thereafter in
the year 2026 was the writ petition instituted, after substantial
construction had already progressed. Thus, the conduct of
respondent No.1 clearly amounts to acquiescence, delay and
laches disentitling it to discretionary relief under Article 226.
vi) That the learned Single Judge himself recorded, at paragraph
15 of the impugned judgment, that under Clause 15 of the
original Lease Deed the appellant was entitled to renewal at its
option, and that renewal was not dependent upon mutual
consent as contended by respondent No.1. Having thus
recognized the appellant's subsisting contractual right of
renewal, the learned Single Judge ought not to have interfered
with the building permission, which is merely incidental to the
appellant's lawful occupation and use of the premises for
educational purposes.
vii) That the appellant furnished an Undertaking-cum-Indemnity
Bond before GHMC expressly undertaking that it would abide
by the result of O.S.No.797 of 2018 and would not claim any
equities in respect of the constructions raised pursuant to the
building permit. In view thereof, no irreparable prejudice would
be caused to respondent No.1 if the Building Permission is
permitted to operate pending adjudication of the civil suit. On
the contrary, stoppage of ongoing educational infrastructure
works would seriously prejudice the students and institution.
Submissions on behalf of the respondent No.1
12. Learned Senior Counsel representing learned counsel for
respondent No.1 has supported the impugned order and advanced
his submissions as under:
i) That the original Lease Deed dated 21.08.1987 expired by
efflux of time on 20.08.2017. Thereafter, no valid and
registered deed of renewal came into existence. The alleged
renewed Lease Deed dated 12.10.2020 being unregistered is
hit by Sections 17 and 49 of the Registration Act, 1908 and
does not create, declare or transfer any right, title or interest in
the immovable property. Consequently, the appellant has no
lawful estate in the property and continues in unauthorized
occupation.
ii) That in O.S.No.797 of 2018 the trial Court granted an order of
status quo on 13.11.2018, which was subsequently extended
and continues to operate. By applying for building permission,
obtaining the same and raising additional constructions, the
appellant has wilfully altered the nature of the property in
breach of the subsisting judicial order.
iii) That under Section 429 of the GHMC Act, 1955, the
Commissioner is empowered and obliged to call for title
documents and satisfy himself regarding the applicant's
entitlement. GHMC could not have acted on the basis of an
unregistered and disputed lease deed while ignoring the
admitted ownership of respondent No.1. Furthermore, the
objections/representation dated 17.08.2023 submitted by
respondent No.1 were not properly considered, rendering the
grant of building permission arbitrary, illegal and contrary to
statutory mandate.
iv) That Clause 8 of the original Lease Deed cannot be read in
isolation or beyond the tenure of the lease. Any right to
construct thereunder was co-terminous with the subsistence of
the lease. Upon expiry of the original term in 2017, and in the
absence of a valid renewal, the appellant could not unilaterally
assert a right to undertake fresh constructions without the
express consent of the owner/lessor, particularly when
renewal itself is seriously disputed and sub judice.
v) That the alleged minutes of the Managing Committee meeting
dated 30.09.2020 and the consequential renewed Lease Deed
dated 12.10.2020 are seriously disputed as forged, fabricated
and unauthorized documents. Respondent No.1 specifically
contended that at the relevant time a Person-in-Charge
Committee was functioning and the prior office bearers lacked
authority to execute any such deed. Though such disputed
issues may not be finally adjudicated in writ proceedings, the
same certainly disentitle the appellant from asserting any clear
prima facie right to secure construction permissions.
vi) That the subject land is a valuable asset belonging to the
respondent No.1-Housing Society. If large-scale constructions
are permitted and the appellant ultimately fails in the civil
proceedings, respondent No.1 would be left with a heavily
encumbered property and exposed to claims for compensation
or equities. Therefore, the balance of convenience lies in
preserving the existing state of affairs and maintaining status
quo until final adjudication.
Submissions on behalf of the respondent No.3
13. Learned Standing Counsel appearing for respondent No.3-
GHMC has advanced his submissions as under:
i) That the building permission was granted strictly in
accordance with the governing statutory framework, applicable
Building Rules and G.O.Ms.No.168, Municipal Administration
Department, dated 07.04.2012, after scrutiny of the
application and documents furnished by the appellant,
including the original registered Lease Deed dated 21.08.1987,
the renewed Lease Deed dated 12.10.2020 (duly stamped and
impounded), and the Undertaking-cum-Indemnity Bond.
ii) That the role of the Commissioner is limited to a prima facie
scrutiny regarding title, possession and compliance with
building norms. The Commissioner cannot adjudicate complex
disputes between lessor and lessee or pronounce upon the
final validity of competing claims, which fall within the domain
of civil Courts.
iii) That the objections raised by respondent No.1 were available
on record; however, upon considering the long possession of
the appellant, the subsisting educational use, the lease
documentation placed on record and the undertaking
furnished, the Commissioner formed a bona fide prima facie
opinion that the appellant possessed sufficient entitlement to
seek building permission.
14. We have taken note of the respective contentions urged and
perused the material on record.
Consideration by this Court
15. In the present case, the learned Single Judge, at paragraph 13
of the impugned order, expressly observed that "this Court is not
inclined to delve into the aspect of genuinity/ validity of the resolution
dated 30.09.2020 or the renewed Lease Deed dated 12.10.2020, since
the same are subject matter of O.S.No.797 of 2018 and in view of fact
that this Court exercising the writ jurisdiction under Article 226 of the
Constitution of India cannot decide disputed questions of fact".
16. However, notwithstanding the aforesaid self-imposed restraint,
the learned Single Judge proceeded, at paragraph 16 of the
impugned judgment, to hold that the renewed Lease Deed dated
12.10.2020 did not satisfy the requirements of Section 107 of the
Transfer of Property Act, 1882 and Sections 17 and 49 of the
Registration Act, 1908, though stamp duty had been paid thereon.
The said para is extracted hereunder:
16. As per Clause-8 of lease deed, the lessee is empowered to raise structures for setting up of school/educational institution and there is no requirement for obtaining express written consent from the petitioner society. In the teeth of
the said clause, the contention of petitioner society that respondent No.3-Education society cannot raise structures without express consent of petitioner-society is untenable. However, the fact remains that the lease deed expired on 20.08.2017 and the same was renewed vide renewed lease deed dated 12.10.2020. As per Section 107 of the Transfer of Property Act, any lease exceeding more than one year is mandatorily registerable. It is pertinent to note that the renewed lease deed dated 12.10.2020 purported to have been executed by the petitioner-society in favour of respondent No.3-society does not satisfy the requirement of Section 107 of the Transfer of Property Act as well as Sections-17 and 49 of the Registration Act, though stamp duty is paid.
17. In our considered view, such an approach cannot be sustained
in law for the following reasons:
i. The learned Single Judge, having rightly concluded that
disputed questions regarding execution, validity and
enforceability of the documents cannot be adjudicated in writ
proceedings, ought not to have thereafter rendered findings on
the legal efficacy of the very same document. The validity and
enforceability of the renewed Lease Deed dated 12.10.2020 are
central issues in the pending civil suit. Any determination by
the writ Court would be premature and prejudicial to the
parties before the competent Court.
ii. For the limited purpose and considering the building
permission application, the municipal authority is not required
to adjudicate upon absolute title or final legal enforceability of
rival claims. Its enquiry is confined to prima facie satisfaction
regarding possession, entitlement and compliance with
municipal laws. Where an applicant is in long-standing,
admitted possession under an antecedent registered lease
deed, the mere absence of registration of a subsequent
instrument does not conclusively defeat such application for
municipal purposes.
iii. The appellant has been in continuous possession of the
subject property for several decades and has been operating an
educational institution therefrom. The learned Single Judge
himself recorded that the original Lease Deed dated
21.08.1987 and the appellant's possession thereunder were
not in dispute. In these circumstances, observation touching
final title or leasehold validity was unnecessary for deciding
the writ petition.
Accordingly, the findings recorded by the learned Single Judge in
paragraph 16 of the impugned order, insofar as they relate to the
validity, legal efficacy or enforceability of the renewed Lease Deed
dated 12.10.2020, are liable to be set aside.
18. It is made clear that all questions concerning the execution,
authority, genuineness, registration, validity, enforceability and legal
consequences of the renewed Lease Deed dated 12.10.2020 shall
remain open for adjudication in O.S.No.797 of 2018 or in any other
competent proceedings, and shall be decided on their own merits,
uninfluenced by any observations contained either in the impugned
judgment or in the present judgment.
19. It is also pertinent to note that the extent of enquiry to be
undertaken by a municipal authority while considering an
application for grant of building permission is no longer res integra.
The Commissioner, while exercising powers under the GHMC Act
1955, does not sit as a civil Court to adjudicate disputed questions of
title, but such jurisdiction is administrative and regulatory in nature,
confined to examining whether the applicant has placed such
material as would prima facie disclose possession, entitlement to
apply, and compliance with the applicable building rules and
statutory requirements.
20. The principle is well settled by this Court in T. Rameshwar
(supra 2) that the Commissioner is required to consider objections
touching upon title in a pragmatic manner, confined to prima facie
considerations, and is not vested with the jurisdiction to adjudicate
questions of title inter se between the applicant and the objector.
21. Applying the aforesaid settled principle to the facts of the
present case, the material placed before respondent No.3-GHMC
disclosed the following circumstances:
a) the appellant produced the original registered Lease Deed
dated 21.08.1987, the execution whereof is not in dispute;
b) the appellant also relied upon the renewed Lease Deed dated
12.10.2020, which, though disputed and unregistered, was
duly stamped and subsequently impounded in accordance
with law;
c) the appellant has remained in continuous possession of the
subject land for nearly four decades and has been operating an
educational institution therefrom to the knowledge of
respondent No.1;
d) the appellant furnished an Undertaking-cum-Indemnity Bond
to GHMC agreeing to abide by the result of O.S. No.797 of
2018 and not to claim any equities on the basis of
constructions raised pursuant to the permission granted.
22. On the basis of the aforesaid material, the GHMC formed a
prima facie opinion that the appellant possessed a subsisting and
arguable right to seek building permission. Such an opinion cannot
be said to be irrational or perverse, and does not warrant
interference under Article 226 of the Constitution of India,
particularly when the core dispute relating to the lease is sub judice
before the competent civil Court.
23. Further, this Court is constrained to observe that respondent
No.1 had raised specific objections as early as 17.08.2023, inter alia
pointing out the expiry of the original lease, disputing the renewed
Lease Deed, and referring to the pendency of the civil suit. While the
municipal authority was not bound to accept such objections as
determinative of the matter, principles of administrative fairness
required that the objections be adverted to and that brief reasons be
recorded as to why the same were not accepted or why permission
was nevertheless being granted.
24. A perusal of Building Permit No.6202/GHMC/KHB/2024-BP
dated 20.11.2024 does not disclose any discussion whatsoever of the
objections raised by respondent No.1.
25. In this regard, it is to be noted that the Municipal
Commissioner acted within the permissible limits of prima facie
scrutiny and did not exceed jurisdiction by granting permission.
26. The appellant entered into possession pursuant to the
registered lease deed of 1987 and has continued in occupation of the
subject property for several decades, running a school therein. Even
assuming that the renewed lease deed of 2020 is ultimately held to
be ineffective for want of registration, the appellant's continued
possession would nevertheless require consideration in the light of
Section 106 of the Transfer of Property Act, 1882, which may give
rise to a month-to-month tenancy. Until such time as the appellant's
rights are duly determined, lawfully terminated, and it is evicted in
accordance with due process of law, its possession cannot be
characterised as that of a trespasser merely on the ground that the
renewed lease deed is unregistered.
Conclusion
27. For the foregoing reasons, this Court is of the considered view
that this Writ Appeal would be disposed of by modifying the order
dated 30.03.2026 passed by the learned Single Judge in the
following terms:
i. The finding of the learned Single Judge whereby Building
Permit dated 20.11.2024 issued by the respondent No.3 has
been quashed is set aside.
ii. Respondent No.3-Corporation is directed to consider the
objections raised by respondent No.1 in its representation
dated 17.08.2023, and take decision in accordance with law,
after grating opportunity to parties, without being influenced
by any observations made by the learned Single Judge in the
order under appeal and by this Court. The said exercise shall
be completed within a period of eight (8) weeks from the date of
receipt of a copy of this judgment.
28. Accordingly, this Writ Appeal is disposed of. No costs.
As a sequel, miscellaneous petitions, pending if any, stand
closed.
_______________________________ APARESH KUMAR SINGH, CJ
______________________________ G.M.MOHIUDDIN,J Date:15.04.2026 ssp
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