Showing posts with label s 106 of transfer of property Act. Show all posts
Showing posts with label s 106 of transfer of property Act. Show all posts

Sunday, 26 December 2021

Can a municipal corporation evict its lessee by issuing a notice granting just three days to vacate suit shop?

 It must be noted here that the notice threatened forcible eviction of respondent by granting him just 3 days time to vacate the suit shop, and, therefore, the notice was in clear violation of Section 106 of the Transfer of Property Act, with the agreement between the appellant and the respondent being one of lease and not the licence. The said Act does not confer any special power on the Corporation to forcibly evict the tenants or lessees facing a situation as in the present case, bypassing the provisions of the Transfer of Property Act and powers of Civil Court. Therefore, the rejection of its objection by both the Courts below is legal and proper and cannot be interfered with.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY (NAGPUR BENCH)

S.B. SHUKRE, J.

Nagpur Municipal Corporation Vs. Bhaurao s/o. Marotrao Mohod (D) thr. Legal Heirs

Second Appeal No.205 of 1993

22nd April, 2014

Citation: 2014(6) ALL MR 537

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Sunday, 12 January 2020

Whether court can relieve tenant from liability of eviction if quit notice was issued for termination of lease on expiry of statutory period?

The tenant was not found to be in default of payment of rent, as he had duly tendered a sum of Rs. 13560/- by draft in response to notice under Section 106 of the Transfer of Property Act, 1882. By applying the principles of Section 114 of the Act, the tenant was relieved from the liability of eviction. The trial Court also held that no amount was payable by the tenant towards electricity charges. It also held that the plaintiffs could not establish bona fide need for the shop in dispute, therefore, it declined to grant relief of eviction.

5. The sole submission of Sri N.C. Rajvanshi, learned senior counsel for the revisionists is that once U.P. Act No. 13 of 1972 was found to be inapplicable to the building in dispute, the relationship of the parties would stand governed by the provisions of the Transfer of Property Act, 1882. He submitted that the tenancy was terminated by giving notice under Section 106 of the Act. It was not a notice of forfeiture on the ground of non-payment of rent nor provisions of Section 114 were applicable. The tenant became liable for eviction, as service of notice is not in dispute.

6. Since the trial Court has found the provisions of U.P. Act No. 13 of 1972 to be inapplicable, the relationship between the parties was governed by the general law i.e. the Transfer of Property Act, 1882. Section 111 of the Act provides various modes and contingencies by and under which a lease of immovable property stands determined. Under Clause (g) thereof, a lease gets determined by forfeiture i.e. where the lessee breaks an express condition which provides that on breach thereof the lessor may re-enter followed by a notice in writing by the lessor to the lessee of his intention to determine the lease. Under Clause (h), a lease determines on the expiration of the notice to determine the lease or to quit or of intention to quit, the property leased, duly given by one party to the other. The manner of serving notice to quit is that provided by Section 106.

7. The forfeiture, which is entailed upon break of express condition of lease is condonable, by virtue of provisions of Section 114 of the Act, where the leasee pays or tenders to the lessor the rent in arrear, together with interest thereon and his full costs of the suit, or gives such security as the Court thinks sufficient for making such payment within fifteen days. In such a case, the Court may, in lien of passing a decree of eviction, pass an order relieving the leasee against the forfeiture.

8. Section 114 of the Transfer of Property Act, 1882 is thus applicable only where the lease is determined by forfeiture i.e. on account of breach of an express condition which entitles the lessor to re-enter. On the other hand, if the tenancy is determined by a simple notice to quit, as provided under Clause (h) of Section 111, then Section 114 would not come to the rescue of the leasee.

9. The notice dated 19.5.2010 has been brought on record and a perusal thereof reveals that it is a notice under Clause (h) of Section 111 of the Transfer of Property Act, 1882 seeking termination of tenancy upon expiry of the statutory period. The plaintiffs have specifically stated that after expiry of the statutory period, the tenant should vacate, as they do not want to continue him as tenant any more. In the said notice, it is also stated that rent and electricity charges since March 2010 have not been paid, but the tenancy has not been determined on the ground of non-payment of these amounts. In fact, the finding of the Court below is that no written lease deed has been brought on record, nor it was the case of the landlords that there was breach of express condition of any lease agreement entitling the plaintiffs to determine the lease by forfeiture.

IN THE HIGH COURT OF ALLAHABAD

Civil Revision No. 55 of 2013

Decided On: 18.01.2019

 Subhash Chandra  Vs.  Ajay Gupta

Hon'ble Judges/Coram:
Manoj Kumar Gupta, J.

Citation: AIR 2019(NOC) 819 ALL
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Sunday, 22 December 2019

Whether court can raise presumption that notice was duly served even if defendant denies his signature on acknowledgment?

Validity of notice cannot be raised in view of provisions of Section 106 of the T.P. Act since the suit in the present case was filed after expiry of fifteen days period of giving notice. Though the appellant-defendant has denied receipt of any such notice but AD Receipt Ex. 4 was produced on record bearing signature of Mukesh Kumar, the proprietor of appellant firm. Mere objection on behalf of defendant that the signature on AD Receipt were not of Mukesh Kumar is of no avail and the learned trial Court, in absence of any application for examining the signature on AD Receipt from FSL, rightly found the notice under Section 106 of the T.P. Act duly served and, thus, there is no force in the submissions of the learned counsel for the appellant defendant with respect to the validity of notice under Section 106 of the T.P. Act and the eviction decree has rightly been passed by the learned trial Court against the defendant-appellant.

12. A close scrutiny of above-quoted sub-section (4) of Section 106 of the T.P. Act makes it abundantly clear that law envisages notice under sub-section (1) in writing, signed by or on behalf of the person giving it, and either it be sent by post to the party, who is intended to be bound by it, or to be tendered or delivered personally to such party. The oral and documentary evidence, which was available on record in the matter, is clear and unequivocal showing written notice sent by respondent-plaintiff to appellant-defendant. The respondent-plaintiff has also produced acknowledgment receipt Ex. 4 bearing signature of Mukesh Kumar. During cross-examination, proprietor of the appellant firm, Mukesh Kumar, has very candidly admitted correct address of the addressee, but for denying his signature. Bare denial of the signature, without substantiating the same by cogent evidence, is not sufficient to dislodge presumption about service of notice. Therefore, both the Courts below have rightly invoked Section 27 of the General Clauses Act, 1897, which envisages that unless the contrary is proved, service shall be deemed to have been effected by properly addressing, prepaying and posting by registered post, a letter containing the notice.

IN THE HIGH COURT OF RAJASTHAN

S.B. Civil Second Appeal No. 186 of 2018

Decided On: 06.10.2018

 Mishra Electronics  Vs.  Jagdish Kumar Jat

Hon'ble Judges/Coram:
Pratap Krishna Lohra, J.

Citation: 2019(1) RCR(Rent) 7
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How to ascertain when tenant should pay rent to landlord in absence of lease deed?

 The next contention of Learned Counsel for the Defendant was that the rent was payable on demand. Evidently no Lease Deed existed between the parties. The Plaintiff could furnish no document to establish that the rent was payable by the 10th of the succeeding month, similarly the Defendant was not in possession of any document to prove that rent was payable on demand. In the absence of such a document it is relevant to resort to the provisions of Section 106 of the Transfer of Property Act, 1882 (hereinafter "the TP Act"), which inter alia provides that in the absence of a contract or local law or usage to the contract, a lease of immovable property shall be deemed to be a lease from month to month terminable on the part of either a lesser or lessee by fifteen days" notice. I hasten to add that the Act of 1956 envisages no notice for eviction of a tenant, it merely requires proof of default in rent for four months or more hence Notice is not a mandate under the Act of 1956. Therefore, on applying the provisions of Section 106 of the TP Act it is evident that the tenancy shall be presumed to be a tenancy on a month to month basis. In this view of the matter, irrespective of lack of demand for payment of rent by the Plaintiff to the Defendant, it became incumbent upon the Defendant to pay the rent either at the end of the month or by the next month as was the practice, even if it was beyond the 10th of the next month. 

IN THE HIGH COURT OF SIKKIM AT GANGTOK

RFA No. 10 of 2016

Decided On: 01.10.2018

 Taramani Devi Agarwal Vs.  Krishna Company

Hon'ble Judges/Coram:
Meenakshi Madan Rai, Actg. C.J.

Citation: 2019(1) RCR(Rent) 38
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Friday, 20 December 2019

Supreme Court: Filing of eviction itself amounts notice to quit to tenant

In Nopany Investments (P) Ltd. v. Santokh Singh (HUF) MANU/SC/8184/2007 : (2008) 2 SCC 728, a two judge Bench of this Court has held:

22. ...In any view of the matter, it is well settled that filing of an eviction suit under the general law itself is a notice to quit on the tenant. Therefore, we have no hesitation to hold that no notice to quit was necessary Under Section 106 of the Transfer of Property Act in order to enable the Respondent to get a decree of eviction against the Appellant.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 3873 of 2019 
Decided On: 11.04.2019

Sevoke Properties Ltd. Vs. West Bengal State Electricity Distribution Company Ltd.

Hon'ble Judges/Coram:
Dr. D.Y. Chandrachud and Hemant Gupta, JJ.

Citation: 2019(1) RCR(Rent) 586,2019 SCC OnLine SC 592
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Saturday, 26 October 2019

Supreme Court: It is not necessary to issue quit notice if lease has expired by efflux of time

Under Section 111(a), a lease of immovable property determines by efflux of time limited thereby. Once this be the position, there can be no manner of doubt that the position of the Respondent on the expiration of the lease was of a tenant at sufferance. In the circumstances, there was no necessity of a notice for the termination of the lease under the provisions of Section 106. The Respondent having squarely admitted in its written statement that it was in occupation for a term of fifteen years, that term having expired, the lease stood determined by efflux of time. Once the lease stood determined by efflux of time, there was no necessity for a notice of termination Under Section 106.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 3873 of 2019
Decided On: 11.04.2019

Sevoke Properties Ltd. Vs.  West Bengal State Electricity Distribution Company Ltd.

Hon'ble Judges/Coram:
Dr. D.Y. Chandrachud and Hemant Gupta, JJ.

Citation: AIR 2019 SC 2664
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Sunday, 20 October 2019

How defect in Notice U/S 106 of Transfer of property Act regarding title of landlord in eviction suit is cured?

 A perusal of the above extracted portion clearly shows that the vendors agreed and confirmed that they had on 26.09.1998 duly executed the Deed of Conveyance in favour of the purchaser. The original Deed of Conveyance was annexed and marked Exhibit-A. The vendors further agreed and confirmed that for all practical purposes, the said land and the premises described in the Second Schedule written thereunder shall be deemed to have been conveyed to the purchaser (plaintiff) as from 26.09.1998 and that they have done no act, deed, matter or things whereby they prevented from executing or granting or conveying the said land and the premises. Applying the principles laid down by the Apex Court in the case of Official Trustees of W.B. (supra) to the facts of the present case, it is clear that the vendors admitted and acknowledged the fact of conveying the land and the premises, more particularly described in the Second Schedule, to the plaintiff. It is not in dispute that the suit premises forms part of the Second Schedule. The plaintiff, therefore, for all intent and purport became owner. As mentioned earlier, the Deed of Confirmation was executed and lodged for registration on 03.08.1999 and was duly registered on 03.01.2005. In view of Section 47 of the Registration Act, the Deed of Confirmation is operative from 03.08.1999. As mentioned earlier, plaintiff had issued notice of termination on 27.08.2000 and 28.08.2000. The Suit is instituted in the year 2002. Thus, when the plaintiff had issued termination notice and instituted Suit, he was owner of the suit premises. The defect of non-registration of Deed of Conveyance was cured by execution of Deed of Confirmation. In view thereof, I do not find any merit in the submission of Mr. Shah that the finding recorded by the Appellate Court in paragraph 28 is legally incorrect.

IN THE HIGH COURT OF BOMBAY

Civil Revision Application No. 180 of 2010

Decided On: 05.04.2019

Mahendra Valji Rathod  Vs.  National Radio and Electronics Company

Hon'ble Judges/Coram:
R.G. Ketkar, J.

Citation: 2019(5) MHLJ 795
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Saturday, 5 January 2019

Whether tenancy is deemed to have been terminated if suit for eviction is filed?

In fact, though termination of tenancy is required to be done by issuing a notice under Section 106 of the Transfer of Property Act 1882, yet the filing of a suit has been treated as a notice terminating tenancy in terms of the judgment in the case of M/s. Jeevan Diesels & Electricals Ltd. v. M/s. Jasbir Singh Chadha (HUF) & Anr., MANU/DE/1277/2011; 2011 (182) DLT 402 and this judgment relies upon the ratio of the earlier judgment of the Hon'ble Supreme Court in the case of Nopany Investments (P) Ltd. v. Santokh Singh (HUF), MANU/SC/8184/2007 : (2008) 2 SCC 728.
IN THE HIGH COURT OF DELHI

RFA No. 945/2018

Decided On: 07.12.2018

 Ramesh Chander Sethi  Vs. Shashi Grover
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Whether family member of tenant can reside in tenanted premises after eviction of tenant?

The Ld. counsel for the appellants/defendants argued that the subject suit could not be decreed under Order XII Rule 6 CPC because it has to be determined as to whether the decree has to be passed against appellant no. 1/defendant no. 1/brother or against the appellant no. 2/defendant no. 2/sister, because it is only against a tenant that a decree can be passed.

6. The trial court, though in my opinion, has rightly observed that the fact of the matter is that either one of the appellants/defendants is a tenant and therefore such a person who is a tenant is liable to vacate the property, and therefore the decree for possession has to be passed. The trial court in this regard has rightly observed in paras 10 and 11 of the impugned judgment which read as under:-

"10. From the stand taken by both the defendants, it is clear that they are trying to create confusion regarding relationship of landlord and tenant between the parties. But, it is also manifests from the written statements of both the defendants that one of them is tenant of the plaintiff in the suit property and other is residing therein not in his/her individual capacity but as a family member of the one who is tenant in the property.

11. To the mind of this court, the question under consideration is limited whether the plaintiff is entitled for the decree of possession u/o 12 rule 6 CPC, therefore, the controversy whether it is the defendant no. 1 or the defendant no. 2 is the tenant losses its importance in the pecuniary facts of this case since, as already observed, one of the defendant admittedly is the tenant in the property and other is residing only as family member of the tenant. The defendant no. 2 has stated herself to be tenant of the plaintiff in the suit property w.e.f. 16.01.2014, on the basis of oral tenancy entered between her and plaintiff. The plaintiff has denied any such oral tenancy agreement between her and defendant no. 2. Considering, only for the purpose of point under consideration, the averments of the defendant no. 2 to be correct that she is the tenant of the plaintiff in the suit property, the ingredient of relationship of landlord and tenant between the plaintiff and defendant no. 2 stands established."

7. In my opinion, the aforesaid conclusion of the trial court is buttressed by the legal provision of Order I Rule 7 CPC which provides that where the plaintiff is in doubt from whom the relief is to be sought, the plaintiff in such a situation can add more than one parties as defendants to the suit. This provision of Order I Rule 7 CPC reads as under:-

"7. When plaintiff in doubt from whom redress is to be sought. Where the plaintiff is in doubt as to the person from whom he is entitled to obtain redress, he may join two or more defendants in order that the question as to which of the defendants is liable, and to what extent, may be determined as between all parties."

8. In my opinion, therefore, the reasoning and conclusion of the trial court is correct because in a suit for possession, a person who has no right to continue in the tenanted premises, as the tenancy of the tenant stands terminated, a decree for possession has to be passed, and the same was therefore rightly passed by the trial court by making relevant observations in paras 10 and 11 of the impugned judgment which are reproduced above, and this reasoning is buttressed by Order I Rule 7 CPC, which has also been reproduced above. The person who is the tenant is evicted and the other appellant living only as a family member of the tenant will also go when the tenant is evicted.

IN THE HIGH COURT OF DELHI

RFA No. 945/2018

Decided On: 07.12.2018

 Ramesh Chander Sethi  Vs. Shashi Grover

Hon'ble Judges/Coram:
Valmiki J. Mehta, J.

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Thursday, 27 December 2018

How to appreciate evidence in case an offence is committed inside the privacy of the house?


In Trimukh Moroti Kirkan v. State of Maharashtra MANU/SC/8543/2006 : (2006) 10 SCC 681, the Court explicated that if an offence takes place inside the privacy of a house where the Accused have all the opportunity to plan and commit the offence at the time and in circumstances of their choice, it will be extremely difficult for the prosecution to lead evidence to establish the guilt of the Accused if the strict principle of circumstantial evidence, is insisted upon. The Court expounded thus:

14. If an offence takes place inside the privacy of a house and in such circumstances where the assailants have all the opportunity to plan and commit the offence at the time and in circumstances of their choice, it will be extremely difficult for the prosecution to lead evidence to establish the guilt of the Accused if the strict principle of circumstantial evidence, as noticed above, is insisted upon by the Courts. A Judge does not preside over a criminal trial merely to see that no innocent man is punished. A Judge also presides to see that a guilty man does not escape. Both are public duties. (See Stirland v. Director of Public Prosecution 1994 AC 315 : (1994) 2 AII ER 13 (HL)-quoted with approval by Arijit Pasayat, J. in State of Punjab v. Karnail Singh MANU/SC/0585/2003 : (2003) 11 SCC 271). The law does not enjoin a duty on the prosecution to lead evidence of such character which is almost impossible to be led or at any rate extremely difficult to be led. The duty on the prosecution is to lead such evidence which it is capable of leading, having regard to the facts and circumstances of the case. Here it is necessary to keep in mind Section 106 of the Evidence Act which says that when any fact is especially within the knowledge of any person, the burden of proving that fact is upon him. Illustration (b) appended to this Section throws some light on the content and scope of this provision and it reads:

(b) A is charged with traveling on a railway without ticket. The burden of proving that he had a ticket is on him.

15. Where an offence like murder is committed in secrecy inside a house, the initial burden to establish the case would undoubtedly be upon the prosecution, but the nature and amount of evidence to be led by it to establish the charge cannot be of the same degree as is required in other cases of circumstantial evidence. The burden would be of a comparatively lighter character. In view of Section 106 of the Evidence Act there will be a corresponding burden on the inmates of the house to give a cogent explanation as to how the crime was committed. The inmates of the house cannot get away by simply keeping quiet and offering no explanation on the supposed premise that the burden to establish its case lies entirely upon the prosecution and there is no duty at all on an Accused to offer any explanation.

IN THE SUPREME COURT OF INDIA

Criminal Appeal No. 1617 of 2011

Decided On: 24.10.2018

Asar Mohammad  Vs.  The State of U.P.

Hon'ble Judges/Coram:
A.M. Khanwilkar and L. Nageswara Rao, JJ.

Citation: AIR 2018 SC5264
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Wednesday, 26 December 2018

Whether objection to quit notice if not taken specifically is deemed to have been waived?

 Thus when in paragraphs 1, 6 and 9 of the written statement the applicant did not dispute that the suit notice terminated the tenancy of the applicant nor did the applicant contend that the notice was illegal in any manner being contrary to section 106 of the Transfer of Property Act, in such a situation, the consequence in law is that the applicant acquiesced in the suit notice and waived its right to contend that the suit notice is illegal. The applicant thus was not permitted to take a contrary position. The law in this regard is well settled. In Dharampal v. Harbansingh 2006 (9) SCC 216 the Supreme Court has held that objection to the invalidity or insufficiency of the notice should be specifically raised in the written statement failing which it will be deemed to have been waived. It was held that in the absence of a specific plea in the written statement in regard to the said objection, such a plea would be deemed to have been waived by the appellants-tenant therein. Their Lordships in paragraphs 7 and 8 of the decision observed thus:

"7. Learned counsel for the appellants submits that none of the two recitals contained in the notice can fulfill the requirement of section 106 of the Transfer of Property Act. One recital in the notice terminates the tenancy from the date of issue of notice. The other one requires the tenant to vacate the premises within 15 days from the date of receipt of the notice. Both are bad in the light of the requirements spelled out by section 106 of the Transfer of Property Act. The learned counsel seems to be right in urging the pleas. However, still we feel that the appellant cannot be allowed relief. Law is well settled that an objection as to the invalidity or insufficiency of notice under section 106 of the Transfer of Property Act should be specifically raised in the written statement failing which it will be deemed to have been waived. In the present case, the only objection taken in the written statement is that the notice issued by the plaintiff was "illegal, null and void and ineffective upon the right of the defendant." The thrust of the plea raised by the defendant-appellant in his written statement was that the notice was issued by the person who did not have the authority from the landlord to give the notice. The plea so taken has been found devoid of merit by the High Court and the courts below. The plea that the notice was insufficient in the sense that did not give 15 clear days to the tenant to vacate or that the notice did not terminate the tenancy with the expiry of the month of the tenancy has not been take in the written statement.

8. Obviously, for want of specific plea in the written statement, the trial court has not framed any issue reflecting an objection to the validity or sufficiency of notice, the plea in the manner in which it is sought to be urged before us. The plea as to insufficiency of notice should be deemed to have been waived by the appellant and cannot be allowed to be urged at this stage.

IN THE HIGH COURT OF BOMBAY

Civil Revision Application (ST) No. 4255 of 2018

Decided On: 02.04.2018

 Universal Cables Ltd. Vs.  Laxmi Properties Ltd.
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Whether inadvertent error in quit notice issued U/S 106 of transfer of property Act will invalidate it?

 Justice P.N. Bhagwati, speaking for the bench and referring to the observations of Lord Justice Lindley in Sidabotham v Holland (1895) 1 SC 376 in Bhagabandas Agarwala v. Bhagwandas Kanu & ors MANU/SC/0269/1977 : AIR 1977 SUPREME COURT 1120 observed that notice to quit must not be read in a hyper-critical manner nor must its interpretation be affected by pedagogic pedantism or over refined subtlety but it must be construed in a common sense way. In paragraph 3 the Supreme Court observed thus:

Now, it is settled law that a notice to quit must be construed not with a desire to find faults in it which would render it defective but it must be construed ul resmedia coolest quam pereat. The validity of a notice to quit" as pointed out by Lords Justice Lindley L.J. in Sidabotham v. Holland (1895) 1 SC 376 "ought not to turn on the splitting of a straw". It must not be read in hyper-critical manner nor must its interpretation be affected by pedagogic pedantism or over refined subtlety but it must be construed in a common sense way. See Hariher Bannerjee v. Ramashi Roy 45 I.A. 222. The notice to quit in the present case must be judged for its validity in the light of this well recognized principle of interpretation."
17. It is thus, well-settled that notice to quit need not be worded with accuracy. It would not be in-valid merely because the period mentioned therein falls short of the period specified under subsection (1) of section 108 of the Transfer of Property Act, 1882 namely of 15 days notice in case of month-to-month tenancy when a suit or proceeding is filed after expiry of the period so specified under subsection (1) of section 108. The object and purpose being, that the leasee should have a reasonable notice before he is asked to vacate the premises. Thus, the law is not that, the notice to quit issued by the landlord must be strictly construed in favour of the tenant, but the notice is required to be construed in a common sense way. It is well settled that the notice would be required to be construed broadly and it should not be defeated by inaccuracies even in regard to the date of expiry of the notice. Even the amended section 106(3) of the Transfer of Property Act reflects this position. When the language used in the notice is clearly to convey the intention of the lessor namely that the tenant should quit and vacate the suit premises, surely, a honest and inadvertent error would not invalidate the notice. The surrounding circumstances are also of relevance while considering any issue on the landlord's notice to the tenant, terminating the tenancy.

IN THE HIGH COURT OF BOMBAY

Civil Revision Application (ST) No. 4255 of 2018

Decided On: 02.04.2018

 Universal Cables Ltd. Vs.  Laxmi Properties Ltd.

Hon'ble Judges/Coram:
G.S. Kulkarni, J.

Citation: 2018(6) MHLJ 715
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Sunday, 2 December 2018

What will be consequences of non registration of lease deed?

 It is also a well settled position of law that in the absence of a registered instrument, the courts are not precluded from determining the factum of tenancy from the other evidence on record as well as the conduct of the parties. A three Judge bench of this Court in the case of Anthony v. KC Ittoop and Sons MANU/SC/0443/2000 : (2000) 6 SCC 394, held as under:

A lease of immovable property is defined in Section 105 of the TP Act. A transfer of a right to enjoy a property in consideration of a price paid or promised to be rendered periodically or on specified occasions is the basic fabric for a valid lease. The provision says that such a transfer can be made expressly or by implication. Once there is such a transfer of right to enjoy the property a lease stands created. What is mentioned in the three paragraphs of the first part of Section 107 of the TP Act are only the different modes of how leases are created. The first paragraph has been extracted above and it deals with the mode of creating the particular kinds of leases mentioned therein. The third paragraph can be read along with the above as it contains a condition to be complied with if the parties choose to create a lease as per a registered instrument mentioned therein. All other leases, if created, necessarily fall within the ambit of the second paragraph. Thus, dehors the instrument parties can create a lease as envisaged in the second paragraph of Section 107 which reads thus.........

When lease is a transfer of a right to enjoy the property and such transfer can be made expressly or by implication, the mere fact that an unregistered instrument came into existence would not stand in the way of the court to determine whether there was in fact a lease otherwise than through such deed.

Taking a different view would be contrary to the reality when parties clearly intended to create a lease though the document which they executed had not gone into the processes of registration. That lacuna had affected the validity of the document, but what had happened between the parties in respect of the property became a reality. Non registration of the document had caused only two consequences. One is that no lease exceeding one year was created. Second is that the instrument became useless so far as creation of the lease is concerned. Nonetheless the presumption that a lease not exceeding one year stood created by conduct of parties remains un-rebutted.
(Emphasis laid by this Court)

Thus, in the absence of registration of a document, what is deemed to be created is a month to month tenancy, the termination of which is governed by Section 106 of the Act.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 8361 of 2016 

Decided On: 29.08.2016

 Park Street Properties (Pvt.) Ltd. Vs.  Dipak Kumar Singh and Ors.

Hon'ble Judges/Coram:
V. Gopala Gowda and A.K. Goel, JJ.


Citation: (2016) 9 SCC 268

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Saturday, 10 November 2018

Whether tenant has deemed to have waived objection to validity to quit notice if he has not replied to said notice?

 First, when the Appellant sent a quit notice dated 17.05.2012 to the Respondent Under Section 106 of the TP Act determining the tenancy and calling upon the Respondent to pay the arrears of rent and vacate the suit premises, despite receipt of the quit notice, they did not reply to it.

57. In our view, the Respondent ought to have replied to the notice at the first available opportunity, which they failed to do so. It amounts to waiver on their part to challenge the invalidity or infirmity of the quit notice including the ownership issue raised therein.

58. In the case of Parwati Bai v. Radhika MANU/SC/0372/2003 : AIR 2003 SC 3995, the question arose as to whether the tenancy was terminated in accordance with the provisions of Section 106 of the TP Act. The Defendant despite receiving the notice from the Plaintiff did not reply to it.

59. This Court held that if the Defendant does not raise any objection to the validity of quit notice at the first available opportunity, the objection will be deemed to have been waived. The following Para 6 of the decision is apposite which reads as under:

6. The singular question to be examined in the present case is whether the tenancy was terminated in accordance with the provisions of Section 106 of the Transfer of Property Act. The receipt of notice by the Defendant is admitted in the written statement. The Defendant has not raised any specific objection as to the validity of the notice. An objection as to invalidity or infirmity of notice Under Section 106 of the TP Act should be raised specifically and at the earliest; else it will be deemed to have been waived even if there exists one. It cannot, therefore, be said that the notice in the present case suffered from any infirmity. A copy of the notice was exhibited and proved by the Plaintiff as Ext. P-4.
IN THE SUPREME COURT OF INDIA

Civil Appeal No. 4249 of 2018 (Arising out of S.L.P. (C) No. 27775 of 2017)

Decided On: 20.04.2018

Apollo Zipper India Limited Vs. W. Newman and Co. Ltd.
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Thursday, 8 November 2018

Golden rules for interpretation of quit notice

 The Hon'ble Apex Court has also, in the case of Bhagabandas Agarwalla v. Bhagwandas Kanu and Ors., MANU/SC/0269/1977 : (1977) 2 SCC 646, already held that,

"It is settled law that a notice to quit must be construed not with a desire to find faults in it, which would render it defective, but it must be construed ut res magis valeat quam pereat. The validity of a notice to quit, ought not to turn on the splitting of a straw. It must not be read in a hyper-critical manner, nor must its interpretation be affected by pedagogic pedantism or over-refined subtlety, but it must be construed in a common sense way."
22. In this reported authority also, the notice issued under Section 106 of the Transfer of Property Act, 1882, was challenged on the ground that, under the said Section, the notice to quit must expire at the end of the month of the tenancy, or, in other words, at the most, terminate the tenancy with effect from the expiration of the month of the tenancy. It was argued that, the notice to quit issued in the case required the Respondent to vacate the premises within the month of October, 1962 and intimated to him that otherwise he would be "treated as tress-passer from November 1, 1962", in respect of the premises. The question raised before the Apex Court was, therefore, 'what is the meaning and effect of the words "within the month of October 1962" in the context in which they are used in the notice to quit?'; 'Would these words mean that, the tenancy of the Respondent was sought to be terminated at the date earlier of the expiration of the month of October, 1962 and the Respondent is required to vacate the premises before such expiration?' While answering this question, the Apex Court held that,

"When the notice to quit requires the Respondent to vacate the premises within the month of October 1962, what it meant was that, Respondent could vacate any time within the month of October, 1962, but not later than the expiration of that month."
23. The last moment upto which the Respondent could, according to the notice to quit, lawfully continue to remain in possession of the suit premises was the mid-night of October 31, 1962 and hence, the Apex Court held that, it fails to see any difference between a notice asking the tenant to vacate within the month of October 1962 and a notice requiring a tenant to vacate latest by mid-night of October 31, 1962. Because, in both the cases, tenant would be entitled to occupy the premises upto the expiration of October 31, 1962, but not beyond it. Thus, it was held that, the notice makes an intention of the authors of the notice clear that they are terminating the notice only with effect from the end of the month of October 1962 and not with effect from any earlier point of time during the currency of that month and hence, the notice was legal and valid. It was held that, the 'notice to quit' is required to be judged for its validity, in the light of the well recognized principles of law.

24. Here in the case also, what the 'Agreement of Leave and License' provides is, "a one week's previous notice" in writing and the termination notice issued in this case calls upon the Respondents to handover peaceful and vacant possession of the suit premises "within 7 days from the date of receipt of the notice". Therefore, it necessarily follows that the Respondents were given clear one week's previous notice and they were called upon to handover vacant possession of the suit premises within 7 days from the receipt of the notice, meaning thereby, till the expiry of 7 days, they were entitled to remain in possession thereof. The day for them to vacate the possession of the suit premises arises only after expiration of 7 days and, accordingly, their license stands terminated only on the expiry of 7 days period and not before it. Therefore, in no way, such notice can be called as illegal or unlawful.

25. As a matter of fact, interpreting this notice in such a manner by holding that, it does not give a clear 7 days previous notice, is reading it in a very hyper-critical manner and not in a common sense way. As observed by the Apex Court here-in-above, the Appellate Court has construed it in this fashion only with a desire to find faults in it, so as to render it defective; whereas, the object must be to give it a meaningful interpretation, which is to be appealable to the common sense and should not revolt against the common sense. The Appellate Court has thus read it in a hyper-critical manner, which can be called, in the words of the Apex Court, as "splitting of the straw".

26. Surprisingly, no such contention that 'notice of termination' is not legal or valid was taken up by the Respondents also, either in their reply to the notice or even before the Estate Officer; presumably because, being persons of common sense, they also understood it in its correct perspective as giving them one week's previous notice in writing. It is disturbing that, the Appellate Court has entered into hair-splitting it, just to overturn the eviction order passed by the Estate Officer, despite negativing all other contentions raised by the Respondents to challenge the said order. The interpretation of any law or even of any notice has to be in tune with the understanding and perception of the common man and not bereft of it. Over-stretching the words and giving it an absurd meaning, which is not contemplated or which is not expected by the person, who is giving the notice or receiving the same, cannot be considered legal or proper. Therefore, this finding of the Appellate Court, being against the tenets established by law, has to be held as 'perverse' and required to be quashed and set aside.


IN THE HIGH COURT OF BOMBAY

Writ Petition No. 4905 of 2009

Decided On: 27.04.2018

The Municipal Corporation of Greater Mumbai Vs. Suhas Shridhar Rane and Ors.

Hon'ble Judges/Coram:
Dr. Shalini Phansalkar Joshi, J.

Citation: 2018(5) MHLJ 504
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Wednesday, 15 August 2018

Whether attornment of tenancy can be proved by conduct of tenant?

The singular question to be examined in the present case is whether the tenancy was terminated in accordance with the provisions of Section 106 of the Transfer of Property Act. The receipt of notice by the Defendant is admitted in the written statement. The Defendant has not raised any specific objection as to the validity of the notice. An objection as to invalidity or infirmity of notice Under Section 106 of the TP Act should be raised specifically and at the earliest; else it will be deemed to have been waived even if there exists one. It cannot, therefore, be said that the notice in the present case suffered from any infirmity. A copy of the notice was exhibited and proved by the Plaintiff as Ext. P-4.

60. Second, the Respondent by letters dated 13.06.2006, 27.06.2006, 05.07.2006 and 11.07.2006, sent to the Appellant on the question of ownership of the suit premises and payment of rent had expressed their willingness to attorn and continue the tenancy with the Appellant and also offered to pay rent to the Appellant. (See pages 198 & 199 of the SLP Paper Book-order of the Single Judge)

61. Third, the Respondent in their civil suit (No. 1183 of 2012) filed against the Appellant in Paras 15, 17, 18 and relief Clause (e) of the plaint admitted the ownership of the Appellant over the suit premises and went to the extent of seeking the mandatory injunction against the Appellant directing them to accept the monthly rent of the suit premises from the Respondent.

62. In other words, reading of the aforementioned paras in the Respondent's plaint including the relief Clause (e) would go to show that the Respondent was all along willing to accept and indeed actually accepted the ownership of the Appellant over the suit premises and, therefore, sought mandatory injunction against the Appellant to accept them as tenant. The conduct of the Respondent, therefore, disentitles them to now raise a new plea questioning the title of the Appellant over the suit premises and a plea of attornment. Both, in our opinion, are wholly misconceived pleas and, therefore, deserve to be rejected.

63. As mentioned above, the title of the landlord over the tenanted premises in a suit for eviction cannot be examined like a title suit. Similarly, the attornment can be proved by several circumstances including taking into consideration the conduct of the tenant qua landlord.

64. The aforesaid three circumstances, in our opinion, are, therefore, more than sufficient to record a finding that the Appellant was prima facie able to prove their title over the suit premises so also was able to prove the factum of "attornment" made by the Respondent in relation to the suit premises in Appellant's favour thereby entitling the Appellant to determine the contractual tenancy which was devolved upon them by operation of law.

65. In the light of the foregoing discussion, we are unable to agree with the view taken by the Division Bench that there was some dispute or confusion as to who is the owner of the suit premises. In our view, there was neither any dispute and nor confusion and nor any ambiguity over the question of title over the suit premises which needed any elaborate inquiry.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 4249 of 2018 (Arising out of S.L.P. (C) No. 27775 of 2017)

Decided On: 20.04.2018

Apollo Zipper India Limited Vs. W. Newman and Co. Ltd.

Hon'ble Judges/Coram:
R.K. Agrawal and Abhay Manohar Sapre, JJ.

Citation:(2018) 6 SCC 744
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Monday, 7 May 2018

Whether it is necessary to issue quit notice as per S 106 of transfer of property Act if tenant is protected by rent Act?


"It is true that the Rent Act is intended to restrict the rights which the landlord possessed either for charging excessive rents or for e
viction tenants. But if within the ambit of those restricted rights he makes out his case it is a mere empty formality to ask him to determine the contractual tenancy before institution of a suit for eviction. As we have pointed out above this was necessary under the Transfer of Property Act as mere termination of the lease entitled the landlord to recover possession. But under the Rent Control Acts it becomes an unnecessary technicality to insist that the landlord must determine the contractual tenancy. It is of no practical use after so many restrictions of his right to evict the tenant have been put. The restricted area under the various State Rent Acts has done away to a large extent with the requirement of the Law of Contract and the Transfer of Property Act. If this be so why unnecessarily, illogically and unjustifiably a formality of terminating the contractual lease should be insisted upon?"
Even if the category of tenant which is stated in Section 5(11)(b) of Bombay Rent Act which says that even after the termination of tenancy the person continues to be a tenant, is not included in the Maharashtra Rent Control Act, when the tenant cannot be evicted unless the grounds are made out and the conditions laid down under Section 16 of the Maharashtra Rent Control Act are fulfilled, there would be no dual requirement one of issuance of notice under Section 106 of the Transfer of Property Act and then making out a ground under that section for eviction. Of course, a special provision can be made in a Rent Act requiring the issuance of a notice under Section 106, Transfer of Property Act, as it was there in C. P. and Berar Letting of Premises and Rent Control Order, 1949. But in Maharashtra Rent Control Act there is no such provision. In view of the above discussion the notice under Section 106 of the Transfer of Property Act was not necessary in the present case.

IN THE HIGH COURT OF BOMBAY (NAGPUR BENCH)

Civil Rev. Appln. No. 13 of 2003

Decided On: 20.11.2003

K. Mukta Ashok Khankhoje Vs. Namdeorao Tukaram Khutaphale

Hon'ble Judges/Coram:
S.G. Mahajan, J.

Citation:2004(1) MHLJ 941,2004(2) ALLMR 59,
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Whether it is necessary to issue quit notice as per S 106 of transfer of property Act in case of exempted premises?

It is well-settled that when an eviction of a tenant is sought for in terms of the provisions of the Rent Legislation in force in the State, the procedure for the purpose of eviction of such tenant being specifically provided under such rent legislation itself, there is no need to take resort to the provisions of the general law i.e., the Transfer of Property Act and therefore the question of service of notice under Section 106 of the Transfer of Property Act in such cases does not arise. However, that is not the case in hand. Once the provisions of the new Rent Act are being exempted from their applicability to the premises in occupation of the petitioners, or the protection under the new Rent Act is being made as not available to the petitioners, nevertheless, the character or status acquired by the petitioners as the deemed tenant continues, the lessor or lessee relationship continues to exist between the parties and therefore unless the same is put to an end by the procedure known to law, i.e., by taking resort to the provisions of the Transfer of Property Act, it cannot be said that the petitioners can be evicted from the suit premises. Admittedly, in the case in hand, the petitioners have not been served wit any notice of termination of tenancy as is otherwise required under Section 106 of the Transfer of Property Act and therefore the suit filed without termination of tenancy of the petitioners cannot entitle the respondents to evict the petitioners from the suit premises.

IN THE HIGH COURT OF BOMBAY

Writ Petition No. 469 of 2003

Decided On: 26.02.2003

 Hindustan Ferrodo Ltd. Vs. Hari Lachman Hasija

Hon'ble Judges/Coram:
R.M.S. Khandeparkar, J.

Citation: 2003(4) MHLJ 50,2003(5) BOM CR790, 2003(3) ALLMR 201

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Sunday, 5 November 2017

Whether it can be presumed that tenancy was monthly if lease agreement was not registered?

It is also a well settled position of law that in the absence of a registered instrument, the courts are not precluded from determining the factum of tenancy from the other evidence on record as well as the conduct of the parties. A three Judge bench of this Court in the case of Anthony v. KC Ittoop & Sons[4], held as under:
“A lease of immovable property is defined in Section 105 of the TP Act. A transfer of a right to enjoy a property in consideration of a price paid or promised to be rendered periodically or on specified occasions is the basic fabric for a valid lease. The provision says that such a transfer can be made expressly or by implication. Once there is such a transfer of right to enjoy the property a lease stands created. What is mentioned in the three paragraphs of the first part of Section 107 of the TP Act are only the different modes of how leases are created. The first paragraph has been extracted above and it deals with the mode of creating the particular kinds of leases mentioned therein. The third paragraph can be read along with the above as it contains a condition to be complied with if the parties choose to create a lease as per a registered instrument mentioned therein. All other leases, if created, necessarily fall within the ambit of the second paragraph. Thus, dehors the instrument parties can create a lease as envisaged in the second paragraph of Section 107 which reads thus……… When lease is a transfer of a right to enjoy the property and such transfer can be made expressly or by implication, the mere fact that an unregistered instrument came into existence would not stand in the way of the court to determine whether there was in fact a lease otherwise than through such deed.
……………… Taking a different view would be contrary to the reality when parties clearly intended to create a lease though the document which they executed had not gone into the processes of registration. That lacuna had affected the validity of the document, but what had happened between the parties in respect of the property became a reality. Non registration of the document had caused only two consequences. One is that no lease exceeding one year was created. Second is that the instrument became useless so far as creation of the lease is concerned. Nonetheless the presumption that a lease not exceeding one year stood created by conduct of parties remains un-rebutted.” (emphasis laid by this Court) Thus, in the absence of registration of a document, what is deemed to be created is a month to month tenancy, the termination of which is governed by Section 106 of the Act.
Thus, the question of remanding the matter back to the Trial Court to consider it afresh in view of the fact that the same has been admitted in evidence, as the High Court has done in the impugned judgment and order, does not arise at all. While the agreement dated 07.08.2006 can be admitted in evidence and even relied upon by the parties to prove the factum of the tenancy, the terms of the same cannot be used to derogate from the statutory provision of Section 106 of the Act, which creates a fiction of tenancy in absence of a registered instrument creating the same. If the argument advanced on behalf of the respondents is taken to its logical conclusion, this lease can never be terminated, save in cases of breach by the tenant. Accepting this argument would mean that in a situation where the tenant does not default on rent payment for three consecutive months, or does not commit a breach of the terms of the lease, it is not open to the lessor to terminate the lease even after giving a notice. This interpretation of the clause 6 of the agreement cannot be permitted as the same is wholly contrary to the express provisions of the law. The phrase ‘contract to the contrary’ in Section 106 of the Act cannot be read to mean that the parties are free to contract out of the express provisions of the law, thereby defeating its very intent. As is evident from the cases relied upon by the learned senior counsel appearing on behalf of the appellant, the relevant portions of which have been extracted supra, the contract between the parties must be in relation to a valid contract for the statutory right under Section 106 of the Act available to a lessor to terminate the tenancy at a notice of 15 days to not be applicable.
            NON-REPORTABLE

Supreme Court of India

M/S Park Street Properties (Pvt) ... vs Dipak Kumar Singh And Anr on 29 August, 2016

Bench: V. Gopala Gowda, Adarsh Kumar Goel
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Friday, 28 July 2017

Whether eviction notice not in accordance with S 106 of transfer of property Act is valid?

 It has been urged by the learned Advocate for the appellant that the notice under section 106 of Transfer of Property Act the tenancy is terminated, in case of monthly tenancy, by 15 days' notice expiring with the end of one month of the tenancy. In this regard, the learned Advocate for the appellant has urged that if the notice given by the landlord is perused at Exhibit (39) it does not at all show that the tenancy is to expire with the end of the month of tenancy. The said notice has been given on 12th October, 1984, the same was received by the tenant on 13th October, 1984 whereas the tenancy is admittedly from 9th of each month and this exhibit (39) does not at all show that the tenancy was to expire by 8th of November 1984. This is clearly an illegal notice. To this the learned Advocate for the respondent has urged that this notice Exhibit (39) is an omnibus notice because it shows in the first instance that the tenant had agreed to vacate the demised premises after one month after the service of notice and that the suit has been filed on 13-11-1984. There was thus clear notice of 31 days. Similarly, it is alternatively provided that if the tenant thought that the rent note is not binding on him he was directed to vacate the demised premises after 15 days after the service of notice which would expire with the end of month. In view of this alternative notice it is suggested that the said notice is an omnibus and legal notice. Now, looking to the rent note it would be clear that it nowhere provides that the notice was to be a notice under section 106 of the Transfer of Property Act. On the other hand there is a contract between the landlord and tenant that the landlord was to give one month notice by way of prior knowledge to the tenant. This term of lease would be a term of the contract which is not subject to section 106 of the Transfer of Property Act. In this behalf learned advocate cited ruling MANU/TN/0437/1975 : AIR 1976 Mad 120 in case of K. Nasir Basha and another vs. Turukhan Chatram Charities, wherein it is laid down that "where the lease deed specifically stated that the lease should vacate the property whenever needed by the landlord on his giving 30 days' notice and the notice given stated to terminate it by the end of 30 days of the receipt of notice, held that there was a contract to the contrary in relation to the provisions of section 106." In this case, it is specifically agreed in between the parties that one month's notice was to be given irrespective of the month of tenancy. I, therefore, feel that the notice Exhibit (39) is a valid notice and is capable of terminating the tenancy of the defendant.
IN THE HIGH COURT OF BOMBAY (AURANGABAD BENCH)

S.A. No. 222 of 1988

Decided On: 26.06.1990

 Abdul Sattar Khan 
Vs.
Abdul Gani Khan
Hon'ble Judges/Coram:
A.A. Halbe, J.

Citation: 1991 MHLJ183 Bom
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