Page 56 - Banking Finance July 2023

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owner for twelve years." Similarly, Article 64 governs suits pleaded. Further, the mandate for such possession to be
for possession based on previous possession and not on title. "undisturbed" requires a "consistent course of conduct,
which means that it cannot be shown by a "stray or sporadic
Meanwhile, Article 112, which applies to government
act of possession." In the 1981 ruling in Kshitish Chandra
property, mandates a requirement of 30 years for granting
Bose vs. Commissioner of Ranchi, the top court delineated
a title by adverse position. Further, Article 111 says that the
the requirements of openness and continuity.
limitation period for the State will be 30 years from the date
of dispossession for land belonging to a private person where
However, in a series of decisions, the SC recommended that
any public street or road or any part of it has been
the government seriously consider the issue of "adverse
dispossessed and no suit has been moved for its possession
possession" and make suitable changes.
"by or on behalf of any local authority".
Why did the SC suggest changes to the law on
What are the main ingredients of adverse
adverse possession?
possession?
A two-judge SC bench, in its 2008 ruling in Hemaji Waghaji
In the 2004 Apex Court ruling in Karnataka Board of Wakf v
Jat v. Bhikhabhai Khengarbhai Harijan and Others, while
Government of India, the court dealt with the ingredients
dealing with Article 65 of the Schedule of the Limitation Act,
of adverse possession. According to the observations made
1963, observed that the law of adverse possession "ousts
by former SC judge S. Rajendra Babu in the case, "A person
an owner on the basis of inaction within limitation" and is
who claims adverse possession should show: (a) on what
"irrational, illogical, and wholly disproportionate".
date he came into possession, (b) what was the nature of
his possession, (c) whether the factum of possession was
"The law as it exists is extremely harsh for the true owner
known to the other party, (d) how long his possession has
and a windfall for a dishonest person who has illegally taken
continued, and (e) his possession was open and undisturbed."
possession of the property," the court said. Adding that the
For the adverse possession to be "open," or without any law should not benefit the illegal action of a "rank
attempt at concealment, it doesn't need to be brought to trespasser" who had wrongfully taken possession of the true
the specific knowledge of the owner. However, such a owner's property, the court said that it also "places a
requirement may be insisted on where an ouster of title is premium on dishonesty". (Source: The Indian Express)

Credit card spend in forex to come under LRS, and taxed 20%
The Central Government, in consultation with the Reserve Bank of India, in a notification amended rules under the
Foreign Exchange Management Act, bringing in international credit card spends outside India under the Liberalised
Remittance Scheme (LRS). As a consequence, the spending by international credit cards will also attract a higher
rate of Tax Collected at Source (TCS) at 20 per cent effective July 1.
The notification brings transactions through credit cards outside India under the ambit of the LRS with immediate
effect, which enables the higher levy of TCS, as announced in the Budget for 2022-23, from July 1. This is expected
to help track high-value overseas transactions and will not apply on the payments for purchase of foreign goods/
services from India.
Prior to this, the usage of an international credit card to make payments towards meeting expenses during a trip
abroad was not covered under the LRS. The spendings through international credit cards were excluded from LRS by
way of Rule 7 of the Foreign Exchange Management (Current Account Transaction) Rules, 2000.

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