Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
Smart Summary

Factual and Procedural Background

This appeal arises from a suit for possession of land and recovery of arrears of rent for six years. The plaintiffs rely on a registered "qabuliat" executed on 25-2-1891 by the predecessor-in-interest of Phonda (defendant 1) in favour of the plaintiffs' predecessor-in-title, under which payment of rent at Rs. 3 per annum was agreed. The qabuliat permitted Phonda to make "kham" constructions on the land, limited the value of the constructions to Rs. 50, and provided that if the owner desired possession, Phonda would receive Rs. 50 for those constructions.

Phonda took possession and constructed a house. On 2-5-1945 Phonda executed a sale deed transferring the house and its site to Ghasita (defendant 5). The plaintiffs served an ejectment notice, asserting that Phonda's sale to Ghasita amounted to an assertion of title and denial of the plaintiffs' title, thereby terminating the lease by forfeiture; they then instituted the suit. The plaint alleged termination by forfeiture and alternatively sought relief on the basis of plaintiffs' title.

The suit was contested only by Ghasita. The trial Court (Munsif of Mathura) found there was no lease, but in any event Phonda was not a permanent lessee and, having transferred the property, the plaintiffs were entitled to determine the lease by forfeiture; the trial Court held Section 114 of the Transfer of Property Act had no application and decreed ejectment and Rs. 18 as arrears. On appeal, the Civil Judge of Mathura dismissed the ejectment claim but maintained the decree for arrears, finding no denial of plaintiffs' title by Phonda or Ghasita, that the qabuliat constituted good evidence of a tenancy creating a permanent lease, and that the notice was valid but ineffective because Phonda was a permanent lessee.

The plaintiffs appealed from the appellate court's decision. The present opinion reviews the pleadings, statutory provisions, the terms of the qabuliat, and prior authorities, sets aside the decree of the lower appellate Court, and remands the suit to the trial Court with specific questions to be decided.

Legal Issues Presented

  1. Whether the registered "qabuliat" executed in 1891 constituted a lease of immovable property as defined by Section 105 of the Transfer of Property Act and, if so, whether it created a permanent lease.
  2. Whether, assuming a lessor-lessee relationship existed, the execution of the sale deed by Phonda amounted to an assertion of title denying plaintiffs' title and thereby terminated the lease by forfeiture under Section 111(g) of the Transfer of Property Act.
  3. Whether Phonda (or his transferee Ghasita) had any right to transfer the land in dispute and, relatedly, whether the transferee is liable to ejectment — expressed concretely by the trial questions the Court ordered to be decided on remand:
    1. Whether Phonda had any right to transfer the land in dispute.
    2. What is the nature and effect of the constructions made on the land in suit?
    3. Whether Ghasita is liable to ejectment from the land in suit.

Arguments of the Parties

Appellants' (Plaintiffs') Arguments

  • The plaintiffs' principal contention on appeal was that the plaintiffs' case was based upon a "qabuliat" and not on any lease; the position of Phonda and his transferee was that of a mere licensee, not a lessee.
  • Rights of a licensee are not transferable; thus the sale by Phonda to Ghasita was invalid and ineffective.

Respondent's (Ghasita's) Arguments

  • Ghasita contended that he had purchased only the materials of the house standing on the land and that a transfer of proprietary right in the land was never intended by the parties to the sale deed.
  • He maintained that the lease was not determined by forfeiture.
  • He argued entitlement to the benefit of Section 114 of the Transfer of Property Act (as pleaded in his defence).
  • He asserted that Phonda and, after the transfer, he himself were permanent lessees and therefore not liable to ejectment.
  • He further argued that the plaintiffs had admitted (or impliedly recognised) Phonda as a lessee and that the plaintiffs could not, in a second appeal, set up an entirely new case inconsistent with their pleading.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kedar Nath v. Shankar Lal, AIR 1924 All 514 Cited for the proposition that a registered "qabuliat" cannot be considered a lease as defined in Section 105 of the Transfer of Property Act. The Court relied on this authority to support its conclusion that the registered qabuliat in the present case did not amount to a lease as envisaged by Section 105, and thus could not by itself create a permanent leasehold.
Anand Sarup v. Taiyab Hasan, AIR 1943 All 279 Cited for the principle that in the absence of a valid lease the position of a transferee is that of a licensee. The Court invoked this authority to justify reconsideration of the case on the assumption that Phonda was a bare licensee and that the transferee (Ghasita) might accordingly stand only as a licensee lacking a transferable proprietary leasehold right.

Court's Reasoning and Analysis

The Court conducted a textual and legal analysis in several steps, drawing on the pleadings, the terms of the qabuliat, and statutory provisions:

  1. Pleadings analysis: The Court reviewed the plaint and observed that the plaintiffs had not expressly admitted in the plaint that Phonda was a lessee; at most they had implicitly recognised his position. The plaint alleged that by executing the sale deed Phonda denied plaintiffs' title, terminating his rights as a tenant, and it referred to Section 111(g) of the Transfer of Property Act.
  2. Identification of the primary legal question: Given the contesting respondent's denial of the plaint-allegations, the question arose whether a lessor-lessee relationship existed between the plaintiffs and Phonda (or Ghasita).
  3. Statutory interpretation — Sections 105 and 107 (Transfer of Property Act): The Court examined Section 105’s definition of a lease (a transfer of a right to enjoy immovable property for a certain time or in perpetuity in consideration of value) and Section 107’s requirement that a lease from year to year, for any term exceeding one year, or reserving a yearly rent must be made by a registered instrument. The Court concluded that no transfer as defined by Section 105 was alleged; the qabuliat was not such a transfer and therefore could not be treated as a lease.
  4. Consideration of the 1929 amendment to Section 107: The Court noted the 1929 amendment requiring execution of leases by both lessor and lessee where made by a registered instrument, but observed that this amendment post-dated the qabuliat in the present case and in any event the qabuliat did not effect a transfer under Sections 105 and 107.
  5. Textual analysis of the qabuliat’s terms: The Court examined the qabuliat and found provisions (a) making Phonda liable to ejectment for non-payment of rent, (b) providing for ejectment at the option of the transferor with payment of compensation for constructions, (c) allowing Phonda to remove constructions at his option, and (d) limiting constructions to a "kham" house valued not more than Rs. 50. There was no provision granting permanent occupation. Thus the qabuliat’s terms were inconsistent with a grant of permanent leasehold.
  6. Application to forfeiture under Section 111(g): Because the qabuliat did not create a lessor-lessee relationship as defined by the Act, Section 111(g) concerning forfeiture of a lease was inapplicable. The plaint’s allegation of forfeiture therefore did not give rise to a cause of action.
  7. Alternative title claim and procedural fairness: Plaintiffs had alternatively claimed ejectment on the basis of their title. The respondent had resisted on the basis that Phonda was a permanent lessee. The Court acknowledged the appellants’ later contention that Phonda was a bare licensee (not pleaded), but concluded that because registered qabuliat cannot be treated as a lease (citing Kedar Nath) and the transferee would be a licensee in the absence of a valid lease (citing Anand Sarup), that contention could properly be considered even though not clearly pleaded. The Court noted, however, that the defendants had lacked opportunity to meet that plea in their pleadings and that the facts must be determined on remand.
  8. Conclusion and remedial direction: The appellate Court below had erred in treating the qabuliat as creating a permanent lease; accordingly the Court allowed the appeal, set aside the lower appellate decree, and remanded the suit to the trial Court (via the lower appellate Court) to decide specified factual and legal questions about transferability, the nature and effect of the constructions, and liability to ejectment.

Holding and Implications

Holding:

APPEAL ALLOWED; THE DECREE OF THE LOWER COURT IS SET ASIDE; THE CASE IS REMANDED TO THE TRIAL COURT FOR FURTHER PROCEEDINGS.

Implications and consequences:

  • The lower appellate Court's decision that the qabuliat created a permanent lease is rejected; the Court held that the registered qabuliat did not constitute a lease under Sections 105 and 107 of the Transfer of Property Act.
  • The allegation of determination of lease by forfeiture under Section 111(g) was held inapplicable because no lease, as defined by the Act, existed; that averment in the plaint therefore did not furnish a cause of action on that basis.
  • The Court ordered a remand with directions that the following questions be decided by the trial Court (through the lower appellate Court) on the evidence: (1) Whether Phonda had any right to transfer the land in dispute; (2) What is the nature and effect of the constructions made on the land in suit; and (3) Whether Ghasita is liable to ejectment from the land in suit.
  • The Court instructed that costs "here and hitherto will abide the ultimate result" — i.e., costs are to await final determination.
  • No broader precedent or novel legal principle was announced beyond the Court's application of existing statutory definitions and cited authorities to the facts; the direct effect is to set aside the earlier decree and require further factual adjudication on remand.

The contents of this summary are confined to the matters explicitly stated in the provided opinion.

    Shiv Dutt v. Ghasita

    1. This is a plaintiffs' appeal. It arises out of a suit for possession of land and recovery of arrears of rent for a period of six years. The facts are these: On 25-2-1891, a registered ‘quabuliat’ was executed by the predecessor-in-interest of Phonda, defendant 1, in favour of the plaintiffs' predecessor-in-title & under this ‘qabuliat’ payment of rent at Rs. 3/- per annum was agreed upon. Defendants 2 to 4 are the sub-tenants of the land on behalf of Phonda. Under the terms of the ‘qabuliat Phonda was entitled to make ‘kham’ constructions on the land and the value of the contractions was not to exceed Rs. 50/-. It was also provided in the ‘qabuliat’ that, if at any time the owner of the land desired to obtain back possession over the land, Phonda, would receive Rs. 50/- for the constructions made by him. Phonda took possession of the land and made certain constructions thereon. On 2-5-1945, Phonda executed a sale deed transferring the house, which he had constructed on the land, along with its site, to Ghasita, defendant 5. These facts have not been disputed before me. After the execution of the sale deed by Phonda in favour of Ghasita in 1945, the plaintiffs served a notice for ejectment upon the defendant, apparently on the ground that the execution of the sale deed by Phonda in favour of Ghasita amounted to assertion of his title and denial of their title, which had the effect of determination of the lease by forfeiture. Thereafter, the plaintiffs instituted the suit, which has given rise to this appeal. In the plaint also they alleged that the lease was determined by forfeiture; consequently, the defendants were liable to ejectment. In the alternative, it was alleged in the plaint that the plaintiffs were also entitled to the relief claimed on the basis of their title.

    2. The suit was contested by Ghasita, defendant 5, alone. The defence put forward by him was that he had purchased only the materials of the house standing on the land in dispute; that the transfer of the proprietary right in the land was never contemplated by the parties to the sale deed; that the lease was not determined by forfeiture; that he was entitled to the benefit of the provisions of Section 114 of the Transfer of Property Act; that Phonda and after the transfer by him in his favour he was the permanent lessee of the land in dispute and as such he was not liable to ejectment; and that the notice issued by the plaintiffs was invalid.

    3. The suit was tried by the Munsif of Mathura, who found that there was no lease; but even if the abuliat could be any evidence of a lease Phonda was not a permanent lessee of the land in dispute; that Phonda having transferred the land in suit along with the house, the plaintiffs were entitled to determine the lease by forfeiture; that Section 114 of the Transfer of Property Act had no application to the facts of the present case; and that the notice issued by the plaintiffs was valid. In the result, the learned Munsif decreed the suit for ejectment and for recovery of Rs. 18/- as arrears of rent.

    4. Ghasita, defendant 5, preferred an appeal against the decision of the trial Court and the learned Civil Judge of Mathura, who heard the appeal, dismissed the suit for ejectment and maintained the decree for recovery of arrears of rent. The findings recorded by the learned Civil Judge were that there has been no such denial of plaintiffs' title on the part of Phonda or Ghasita, which might entitle the plaintiffs to determine the lease by forfeiture; that the ‘qabuliat’ affords good evidence of the contract of tenancy, and it shows that there was a permanent lease; and that the notice issued by the plaintiffs was valid but ineffective, inasmuch as Phonda was a permanent lessee.

    5. In this appeal by the plaintiffs, the main point which has been raised on behalf of the appellants is that the plaintiffs' case was, based upon a ‘qabuliat’ and not on any lease; that the position of Phonda and his transferee was that of a mere licensee and not of a lessee; and that the rights of a licensee were not transferable and as such the sale by Phonda in favour of Ghasita was invalid and ineffective. In reply to this contention it has been urged on behalf of the contesting respondent, Ghasita, that the plea that Phonda was a mere licensee was never raised in the pleadings; on the other hand the plaintiffs had in their plaint admitted that Phonda was a lessee; and that in a second appeal the plaintiffs were not entitled to set-up an entirely new case.

    6. A reference to the pleadings in this case goes to show that the plaintiffs had nowhere admitted in the plaint that Phonda was a lessee; although it may be said that they had impliedly recognised his position to be that of a lessee. In the opening paragraphs of the plaint the plaintiffs had merely stated facts, including the fact of the execution of the ‘qabuliat’. In para 7 of their plaint, however, they had alleged that by execution of the sale deed Phonda had denied their title and he had asserted his own title, which terminated his rights as a tenant. In the next paragraph of the plaint reference was made to the provisions of Section 111(g) of the Transfer of Property Act. In order is controvert these allegations it was alleged on behalf of the contesting respondent that the position of Phonda was really that of a permanent lessee.

    7. On the pleadings of the parties the contesting respondent, Ghasita, having denied all the plaint-allegations a question arose whether the relationship of lessor and lessee existed between the plaintiffs on the one hand and Phonda or Ghasita on the other. As far as the ‘qabuliat’ is concerned, the trial Court rightly observed Stoat the ‘qabuliat’ was not a lease; and that, in any case, it did not confer upon Phonda the sights of a permanent lessee. The learned Civil Judge was wrong in saying that the ‘qabuliat’ was good evidence of a lease and that it created a permanent lease. The learned Judge entirely overlooked the relevant provisions of the T.P Act; and also the terms of the ‘qabuliat’ itself.

    8. Section 105 of the Transfer of Property Act is in these terms:

    “A lease of immoveable property is a transfer of a right to enjoy such property, made for a, certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor or by the transferee, who accepts the transfer on such terms.”

    9. No such transfer is alleged in this case, and the ‘qabuliat’ is not such a transfer, and it cannot, therefore, be treated as a lease. Section 107 of the Transfer of Property Act lays down that a lease of immoveable property from year to year, or for any term exceeding one year, or reserving a yearly rent, an be made ‘only’ by a registered instrument. These two sections when considered together clearly show that there must be a transfer, and is the case of a lease from year to year, like the one in this case, a transfer by means of a registered instrument, in order to constitute a valid lease.

    10. Learned counsel for the appellants invited my attention to the amendment made in 1929 in Section 107 of the Transfer of Property Act whereby the following paragraph, was added thereto:

    “Where a lease of immoveable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee.”

    11. This paragraph was added long after the ‘qabuliat’ in the present case was executed; but apart from it in view of the provisions of Sections 105 and 107 of the Transfer of Property Act, a document had to be executed by the transferor when making a transfer of immoveable property in the nature of a lease. As already stated, there was no such transfer in this case. Consequently, the relationship of lessor and lessee did not come into existence by the execution of the ‘qabuliat, and the reference in the plaint to the said ‘qabuliat’ by the plaintiffs was of no consequence.

    12. A reference to the terms of the ‘qabuliat’ goes to show firstly that Phonda was liable to ejectment in the event of non-payment of rent. Secondly, the ‘qabuliat’ provided for ejectment at the option of the transferor, and a provision was made for payment of compensation for the constructions made on the land. Thirdly, Phonda was permitted to leave the land at his option and to remove the constructions made thereon. Lastly, it was agreed that only a ‘kham’ house would be constructed on the land and the value of the constructions would not exceed Rs. 50. The terms embodied in the ‘qabuliat’ do not contain any provision that Phonda was to occupy the land permanently. Having regard to the terms on which Phonda was given the land, it is difficult to hold that any permanent rights in the land were granted to Phonda. He was only allowed to hold the land for an unspecified period.

    13. It follows, therefore, that in the present case the relationship of lessor and lessee was not created under the ‘qabuliat’ and it is not possible to hold that Phonda ever became a permanent lessee of the land in dispute.

    14. Now, if the relationship of lessor and lessee did not, in fact, exist between the plaintiffs and Phonda or Ghasita, there was no question of determination of any lease by forfeiture under Section 111(g) of the Transfer of Property Act. That being so, the mere allegation in the plaint about forfeiture was of no consequence; and it could not give any cause of action for the suit by the plaintiffs. The plaintiffs, however, claimed, in the alternative, to eject the defendants as trespassers on the basis of their title. The contesting respondent unsuccessfully resisted this claim on the ground that Phonda was a permanent lessee.

    15. On behalf of the appellants it has now been contended that the position of Phonda was that of a bare licensee and as such he was not entitled to transfer by sale of the land in dispute or the constructions made thereon. This case was not set-up in the plaint; but, inasmuch as even a registered ‘qabuliat’ cannot be considered a lease as defined in Section 105 of the Transfer of Property Act — ‘vide, Kedar Nath v. Shankar Lal’, AIR 1924 All 514 (A); and in the absence of a valid lease the position of a transferee is merely that of a licensee, as pointed out by this Court in — ‘Anand Sarup v. Taiyab Hasan’, AIR 1943 All 279 (B), on the facts established in this case, the plea can be raised by the plaintiffs. The defendants, however had no opportunity to raise their objection to the said plea, in the absence of any clear pleadings. As the position of the contesting respondent in relation to the land in dispute has to be determined and it has also to be decided (1) whether as owners of the land the plaintiffs are entitled to eject him and (2) whether having made the constructions which now stand on the land Phonda or his transferee is entitled to be ejected in this suit, the matter must be reconsidered on the assumption that the position of Phonda was that of a bare licensee.

    16. As the case has not been approached from a right angle and the decision of the Court below cannot be supported, in view of the findings recorded above, this appeal must be allowed and the decision of the Court below set aside. Accordingly, the appeal is allowed, the decree passed by the Court below is set aside and the suit is remanded, through the lower appellate Court, to the trial Court for disposal according to law after deciding the following questions:

    1. Whether Phonda had any right to transfer the land in dispute.

    2. What is the nature and effect of the constructions made on the land in suit? and

    3. Whether Ghasita is liable to ejectment from the land in suit.

    17. The costs here and hitherto will abide the ultimate result.

    C/V.B.B

    18. Case remanded.

    Use AI to get other relevant cases.

    Comments

    Shiv Dutt v. Ghasita
    (Dec 3, 1951)