Difference Between Possession and Ownership

Difference Between Possession and Ownership

Introduction

Possession and Ownership are two fundamental concepts in property law. Although related, they are distinct in nature, rights, and consequences.

Possession refers to the actual control or physical custody of a thing.

Ownership refers to the legal right and title over a thing, including the right to use, enjoy, and dispose of it.

Definition

TermExplanation
PossessionThe factual control or custody of property or goods, regardless of legal title.
OwnershipThe legal right recognized by law to enjoy and dispose of a thing, including the right to possess it.

Key Differences

AspectPossessionOwnership
NatureFactual or physical controlLegal right and title
RightsRight to custody and use, but limitedFull rights including use, enjoyment, and transfer
TransferabilityPossession can be transferred without ownershipOwnership is transferable through legal means
ProtectionPossession is protected against unlawful interference (jus possessionis)Ownership is protected as a fundamental right (jus proprietatis)
DurationTemporary or permanent, depends on custodyPermanent until legally transferred or lost
ExampleTenant’s possession of rented propertyLandlord’s ownership of the property

Case Law Illustrations

K.K. Verma vs. Union of India (1959)
The court observed that possession is the physical control of property, whereas ownership is the right to possess and use it. The two can exist separately.

Prem Lata vs. Union of India (1959)
It was held that possession does not necessarily confer ownership. A person in possession may not be the owner but is protected against wrongful dispossession.

Shivnarayan v. Laxminarayan (1957)
Demonstrated that ownership implies a bundle of rights, including the right to possess, but possession itself is only about physical control.

Important Points

A person can have possession without ownership (e.g., a tenant in rented premises).

A person can have ownership without possession (e.g., a landlord whose tenant occupies the property).

Possession is often considered a prima facie evidence of ownership, but it is not conclusive proof.

The law protects possession against unlawful disturbance even if the possessor is not the owner.

Ownership is a comprehensive right, whereas possession is a partial right related mainly to control.

Summary Table

AspectPossessionOwnership
DefinitionPhysical control of propertyLegal right to possess, use, and dispose
BasisFactLaw
RightsCustody, useFull rights including transfer and exclusion
ProtectionAgainst unlawful interferenceAgainst any unlawful claim or interference
TransferCan be transferred without ownershipRequires legal procedure for transfer
EvidencePrima facie proof of ownershipConclusive proof of right

Conclusion

Possession and ownership, though related, serve different legal functions. Possession is the actual control of property, protected by law against wrongful interference, while ownership is the legal right that includes possession but also the right to use, enjoy, and transfer the property. Understanding this distinction is essential in resolving disputes related to property rights.

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