Page 55 - The Insurance Times February 2026

Insurance Caselaws

The insurance company is not liable if the factum of possession, (d) the duration of his possession, and
(e) the condition of his possession in terms of being open
claimant is traveling in an uninsured
and undisturbed.
trailer, regardless of whether the tractor
A person who pleads adverse possession has no equities in
turns out protected :The Supreme Court their favor, the Court further stated. This, the court ex-
plained, is due to the fact that the individual desiring such
Case Title: Dhondubai vs Hanmantappa possession is attempting to infringe upon the rights of the
Bandappa Gandigude | 2023 LiveLaw (SC) 725 rightful owner. In securing an adverse possession order
| CA 5459-5460 OF 2023 against the defendant, Article 65 of the Limitation Act es-
tablishes the starting point of limitation rather than the
Summary date the plaintiff acquires the right of ownership (Sark Singh
The Supreme Court has reaffirmed the adverse possession v. Banto, [page number]). In addition, the animus possidendi
principle in a recent decision regarding a petition for decla- to retain ownership in exclusion of the actual proprietor and
ration of title. The adverse possession plea is a combination the physical reality of exclusive possession are the most cru-
of law and fact, requiring evidence such as the date, na- cial elements that must be considered in adverse possession
ture, duration, and condition of the possession. The Court cases.
emphasized that a person who pleads adverse possession The right to access the Court, however, expires after a speci-
has no equities in their favor, as they are attempting to in- fied period of time, and the Court emphasized that this prin-
fringe upon the rights of the rightful owner. Article 65 of ciple is contingent on limitation. In addition, the Court em-
the Limitation Act establishes the starting point of limita- phasized the significance of a statute of limitations when
tion in securing an adverse possession order against the initiating a recovery action for property in adverse posses-
defendant. The Court also emphasized the significance of a sion. 16 SCC 517 (Hemaji Waghaji Jat v. Bhikhabhai
statute of limitations when initiating a recovery action for Khengarbhai Harijan, 2009). "In general, contemporary stat-
property in adverse possession. The implementation of pe- utes of limitation not only terminate the right to file a law-
riods of limitation ensures actions are initiated within a suit seeking the restoration of property that has been in the
specified timeframe, guaranteeing the accessibility of docu- wrongdoer's adverse possession for a designated period of
mentary and oral evidence and implementing the maxim time, but also confer title on the possessor." The purpose of
"Maximum vigilantibus, non dermientibus, jura subveniunt." these statutes is not to penalize individuals who fail to as-

About the case sert their rights, but rather to safeguard individuals who
have possessed property for the designated period of time
In a recent decision regarding a petition for declaration of
in accordance with a claim of right or color of title.
title, the Supreme Court reaffirmed several critical elements
pertaining to the adverse possession principle. The Court The Court also cited Bharat Barrel and Drum Mfg. Co. Ltd.
reaffirmed that the adverse possession plea is a combina- v. ESI Corpn. (1971) 2 SCC 860 in support of this. The Court
tion of law and fact. (10 SCC 779, Karnataka Board of Wakf deliberated at length in that document on the purpose of
v. Government of India, 2004). The individual asserting ad- the Limitation Act. "The implementation of periods of limi-
verse possession is required to provide the following evi- tation is essential to ensure that actions are initiated within
dence: (a) the date of his possession, (b) the nature of his a specified timeframe. This serves two purposes: first, to
possession, (c) whether the other party was aware of the guarantee the accessibility of documentary and oral evi-

48 February 2026 The Insurance Times