The Allahabad High Court on Thursday (September 4, 2025) delivered a significant ruling in a long-running family property dispute, holding that the construction of a multiplex on land earlier gifted for a cinema hall did not breach the terms of the original gift deed. The bench of Justice Sandeep Jain dismissed the appeal filed by Smt. Archana Tyagi and four others against Yaduraj Narain, affirming the trial court’s decree from March 2024.
Background
The controversy stems from two gift deeds executed in 1968 by Raghukul Narain, who gave portions of his land in Meerut to his nephew, Yaduraj Narain. The deeds specifically mentioned that the land was gifted on the condition that a cinema hall would be constructed. Complying with this, Yaduraj built the famous Nandan Cinema in 1974, which operated for nearly 47 years.
Trouble began in 2019 when the Tyagi family discovered that the old single-screen theatre was being demolished to make way for a multiplex with shops and modern facilities. Claiming this was a violation of the gift’s conditions, they issued notices and eventually filed suit in 2021, seeking possession, injunctions, and even mesne profits of ₹33,300 per day.
Court's Observations
The High Court carefully examined the wording of the 1968 deeds. The judge noted:
"The donor exclusively gifted his land for constructing a cinema hall… but no time limit was mentioned for how long it had to exist."
Justice Jain pointed out that Nandan Cinema was indeed built with due permission and had functioned for decades. To insist that the old structure must remain forever, he said, would be "an absurd interpretation" of the deed.
The court further remarked,
"If the condition is interpreted in the manner suggested by the appellants, it would prevent the donee from even replacing a dilapidated hall after 50 years, which is unreasonable."
Importantly, the bench observed that multiplexes, though modern in form, still serve the same dominant purpose—screening films for public entertainment. Shops selling popcorn or coffee, the court said, were merely incidental.
Decision
In its concluding order, the bench held that Yaduraj Narain had fulfilled the essential condition of the gift by building and operating a cinema hall for nearly half a century. Once that condition was met, ownership vested in him, and the donor’s heirs had no right to revoke the gift.
"Since the donee-defendant has duly complied with the conditions… it cannot be said that he violated the terms of the gift," Justice Jain stated.
The appeal was accordingly dismissed, with each party directed to bear its own costs.
With this, the High Court has effectively ended the Tyagi family's bid to reclaim the land, clearing the way for the multiplex project in Meerut.
Case Title: Smt. Archana Tyagi and 4 Others vs. Yaduraj Narain
Case Number: First Appeal No. 381 of 2024