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Narsingh Das And Others v. Mian Safiullah Sha .

Allahabad High Court
Aug 24, 1954
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Judgment Summary — Chaturvedi, J.

Factual and Procedural Background

This is a defendants' appeal from a suit for possession filed on 4 January 1946 in the Court of the Civil Judge of Bahraich by the plaintiff in his capacity as Sajjadanashin of Takia Kalan. The plaintiff sought possession of a plot of endowed land (enclosed on the commissioner’s plan by letters AEFB) by demolition of the buildings standing thereon. The disputed area was effectively divided into two parts by the commissioner’s plan: the portion within ABCD (with a completed pucca building at suit institution) and the portion within CDEF (with an incomplete building at that time).

The plaintiff alleged illegal possession by the defendants: the ABCD portion allegedly taken about six years earlier and CDEF encroached about four months before suit. The defendants (Narsingh Das, his brother Bhomraj, and son Munna) claimed title as transferees under sale deeds from prior owners of three contiguous houses (originally owned by Ali Bakhsh & Nabi Bakhsh; Ganga Prasad & Bhup Narain; and Maiku Bhuj). The prior Sajjadanashin (Mian Hamid-ud-din) had, according to evidence, revoked an earlier permission to Kanhaiya Lal and granted the disputed land for building purposes to those three owners, who thereafter enclosed the land in their respective houses (building pucca ahatas).

The trial Court found the plaintiff to be the de facto Sajjadanashin and found facts supporting that the land had been granted for building purposes to the three predecessors, and that those predecessors had executed works of a permanent character (ahatas). The trial Court held the original license to be irrevocable, found that the ABCD constructions were long-standing and estopped the plaintiff from questioning them, but decreed possession in relation to the more recent CDEF constructions. The defendants appealed against the decree for the CDEF portion; the plaintiff filed cross-objections against dismissal as to ABCD.

Legal Issues Presented

  1. Whether the predecessors of the appellants held the disputed land under an irrevocable licence (Section 60(b) of the Easements Act) by reason of having executed works of a permanent character.
  2. Whether licensees who have built houses under an irrevocable licence in an urban/town context have transferable rights to transfer such houses and sites.
  3. Whether Sections 56 and 53 of the Easements Act defeat the appellants' claim to transfer or to have the licence bind successors of the grantor (i.e., whether the previous Sajjadanashin could grant a licence enuring beyond his life).
  4. Whether estoppel or acquiescence (by the Sajjadanashin) barred the plaintiff from seeking demolition/possession of the structures (distinctly in relation to ABCD versus CDEF).

Arguments of the Parties

Appellants' (Defendants') Arguments

  • The defendants asserted they were transferees of houses built by their vendors and that the predecessors held the land under an irrevocable licence granted for building purposes.
  • They contended that under Section 60(b) the predecessors had carried out works of a permanent character (ahatas), thereby making the licence irrevocable and entitling transmssible rights to their transferees.
  • They maintained that in urban areas licensees have transferable rights in houses built by them, and that the appellants had stepped into the shoes of the original licensees and were entitled to occupy and reconstruct the buildings.

Respondent's (Plaintiff's) Arguments

  • The plaintiff (Sajjadanashin) treated defendants as trespassers and sought demolition and possession. He contested transferability of the licence rights.
  • It was argued that the ahatas were not works of a permanent character such as to attract clause (b) of Section 60 of the Easements Act.
  • It was contended that a licensee who built a house had rights that were heritable but non-transferable (relying on Kallu Shah v. Rahim Baksh), i.e., licences are ordinarily personal and non-transferable.
  • The respondent relied on Section 56 to argue that licences are personal and cannot be transferred unless a different intention appears, and on Section 53 to argue a grant by an office-holder holding only for life (previous Sajjadanashin) could not create an interest enuring beyond his life.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Nasir-ul-Zaman Khan v. Azim-ullah, 28 All 741 (A) Interpreting "work of permanent character" in S.60 as something not merely temporary. Used to support that building pucca ahatas constituted works of permanent character under Section 60(b), making the licence irrevocable.
Kallu Shah v. Rahim Baksh, AIR 1924 All 825 (B) (Gokul Prasad, J.) Statement that a licence is ordinarily a personal right and carries the incident of non-transferability. The Court treated this decision as of limited assistance, noting it may apply to agricultural/village contexts but is not decisive for urban sites.
Govind Prasad v. Kundan, AIR 1924 All 112 (C) Observation that the presumption of non-transferability of houses built by licensees in agricultural villages does not apply to towns. The Court agreed with this distinction and relied on it to treat licensees in towns as presumptively having transferable rights.
Mohammad Sher Khan v. Amjad Hussain, AIR 1929 All 494 (D) Observation that in urban areas the presumption is that licensees have transferable rights; in rural areas presumption is otherwise. The Court adopted the observation, reinforcing the presumption in urban areas that licence holders may transfer their houses absent contrary terms.
Ram Bharose…Defendant v. Bishnath Prasad…Plaintiff, AIR 1934 All 336 (E) Held that houses built in cities by licensees are not presumed non-transferable; landlord must show license expressly limited transfer rights. Relied on to state that in urban contexts a licensor must show that under the licence the licensee was expressly barred from transferring.
Misri Lal v. Durga Narain Singh, AIR 1940 All 317 (F) General rule that tenants in rural/agricultural villages are not entitled to transfer houses/sites, while tenants in urban areas are entitled to transfer houses on their sites. Quoted to support and reinforce the urban/rural distinction and the presumption of transferability in towns.
Vidya Varuthi Thirtha Swamigal v. Baluswami Ayyar, AIR 1922 PC 123 (G) Privy Council statement that a Mohunt (analogous to a Sajjadanashin) is incompetent to create any interest in mutt property to enure beyond his life (subject to necessity exceptions). The Court acknowledged the principle but treated it as not absolute, noting exceptions (necessity) and that the Sajjadanashin's act might bind successors if it was a prudent managerial act benefiting the endowment.
Bawa Maniram Sitaram v. Kasturbhai Manibhai, AIR 1922 PC 163 (H) Privy Council: disability of a Shebait to make a permanent grant is not absolute; under special circumstances a grant may be valid beyond grantor's life if long time has elapsed or necessity exists. Used to support the conclusion that the earlier Sajjadanashin’s grant could be valid beyond his life where it was prudent and beneficial to the endowment and had been acquiesced in.

Court's Reasoning and Analysis

The Court proceeded by examining (a) the historical facts found by the trial Court, (b) statutory provisions of the Easements Act (notably Sections 60, 56 and 53), and (c) the judicial authorities on the transferability of licences in rural and urban contexts.

Fact-finding: the evidence accepted by the Court established that:

  • The land was initially granted to Kanhaiya Lal (on payment of Rs.200 nazrana) for building, but that permission was later revoked by the then Sajjadanashin, Mian Hamid-ud-din.
  • Thereafter the Sajjadanashin granted the disputed land in three portions to Ali Bakhsh, Ganga Prasad and Maiku Bhuj for building, and each built pucca ahatas to include the land within their houses. The Court accepted evidence including Kanhaiya Lal and Ladli Prasad to establish both the revocation and the fresh grant (the latter involving a total nazrana of Rs.600).
  • The defendants subsequently acquired those houses and rebuilt them; the house on ABCD was completed about ten to eleven years before suit, while construction on CDEF was more recent and incomplete at the time of suit.

Application of Section 60(b): relying on Nasir-ul-Zaman Khan, the Court held that the pucca ahatas were works of a permanent character within the meaning of clause (b) of Section 60 of the Easements Act, and that the predecessors therefore held under an irrevocable licence. The Court rejected the respondent's argument that ahatas were merely temporary.

Transferability in urban versus rural contexts: the Court surveyed the authorities (including Kallu Shah, Govind Prasad, Mohammad Sher Khan, Ram Bharose, and Misri Lal). It distinguished village/agricultural practice (where houses built by riyayas are heritable but non-transferable to exclude outsiders) from urban practice. The Court adopted the settled rule that in towns and cities there is a presumption that licence-holders have transferable rights in houses built by them; accordingly, absent proof that the licence expressly barred transfer, the presumption of transferability applies.

Burden of proof and effect on trial Court finding: because the trial Court accepted that the licence was irrevocable but concluded that the exact terms were not proved and therefore the original licensees lacked transferable rights, the appellate Court held this was an erroneous application of the law. The Court placed the onus on the plaintiff to prove that the licence expressly or by necessary implication deprived the licensee of transfer rights; the plaintiff had not discharged that burden.

Sections 56 and 53: the Court analysed Section 56 (which permits transfer of licences to public entertainment unless a contrary intention is expressed) and observed the opening words "unless a different intention is expressed or necessarily implied" and the saving words "save as aforesaid." The Court concluded Section 56 did not assist the respondent because the licensor must demonstrate that the licence terms or local usage excluded transfer. As for Section 53 and the Privy Council authorities cited (Vidya Varuthi Thirtha Swamigal and Bawa Maniram Sitaram), the Court recognized the general rule that an office-holder holding for life cannot create interests enuring beyond his life, but treated the limitation as not absolute. The Court found that where a manager deals with endowed property prudently and for the benefit of the endowment, and the grant has produced income and long acquiescence, the act may bind successors.

On the facts, the grant produced revenue (nazrana and later tahbazari dues), the previous Sajjadanashin’s action was prudent and beneficial to the Takia, and the present Sajjadanashin had not questioned those grants for many years after the predecessor's death. The Court concluded on these facts that the predecessor’s grant was binding and beneficial to the endowment.

Consequential rulings: because the appellants were held to have stepped into the shoes of original irrevocable licensees with transferable rights, there was no need to decide the estoppel argument. The Court therefore reversed the trial Court's decree in respect of CDEF and held the appellants were justified in occupying and reconstructing; also, the cross-objections by the plaintiff as to ABCD had no substance.

Holding and Implications

Holding: Appeal allowed; cross-objections dismissed. The appellate Court held that the three original licensees had executed works of a permanent character so as to attract clause (b) of Section 60 of the Easements Act, that there is a presumption in urban areas of transferable rights in houses built by licencees, that the appellants (as transferees) stepped into those rights, and that the previous Sajjadanashin’s grant was binding on his successor in the circumstances of this case.

Direct consequences for the parties:

  • The suit for demolition/possession (as brought by the plaintiff) was dismissed in its entirety with costs in both Courts.
  • The appellants' occupation and reconstruction of the disputed land were held to be lawful in view of the irrevocable licence and transferability in the urban context.
  • The plaintiff's cross-objections against the dismissal of that part of his claim (ABCD) were dismissed with costs.

Broader implications: The Court applied and reiterated existing distinctions and presumptions concerning transferability of licences in urban versus rural contexts and the operation of Sections 60, 56 and 53 of the Easements Act as interpreted in the cited authorities. The opinion does not claim to establish a new legal principle beyond the cited authorities and their application to the facts of this case.

V.R.B

Disposition recorded in the opinion: "Appeal allowed: Cross-objections dismissed." (Paragraph 55 of the opinion.)

Show all summary ...

Chaturvedi, J.:— This is a defendants' appeal arising out of a suit for possession.

2. The suit was filed in the Court of the Civil Judge of Bahraich by the plaintiff in his capacity as Sajjadanashin of Takia Kalan on 4-1-1946. The main relief claimed in the suit was for possession of a piece of land by demolition of the building standing thereon. The disputed land is enclosed by letters A E F B in the map of the commissioner, who was appointed by Court to prepare a site plan. For a better appreciation of the case, this area (AEFB) may be split in two portions, one lying within the letters A B C D and the other enclosed by letters C D E F At the time when the suit was brought a completed pucca building stood on the land A B C D while on the other piece an incomplete building stood. There is a Muslim religious endowment known as Takia Kalan in the city of Bahraich owning considerable landed property in the various rnuhallas of the town. The land described above is situate in Muhalla Chhaoni Bazar and is about a furlong or so from the main building of the Takia. It is not disputed that the disputed land is endowed property belonging to Takia Kalan.

3. Safiullah Shah, the present manager of the endowed property of the Takia Kalan, brought the suit alleging that the defendants had taken illegal possession of the land covered by letters A B C D about six years ago while the land covered by letters C D E F was encroached upon about four months prior to the suit. The plaintiff therefore claimed possession by demolition of the building standing on the land in suit.

4. The three defendants, namely Narsingh Das his brother Bhomraj, and his son Munna, contested the suit of the plaintiff on various grounds. They claimed to be the transferees of three houses under the sale deeds obtained by them from previous owners. It was asserted by them, and the fact has not been disputed, that originally there were three houses. One of them was owned by Ali Bakhsh and Nabi Bakhsh, the other by Ganga Prasad and Bhup Narain and the third one by Maiku Bhuj, who had built these houses with the permission of the then Sajjadanashin of the Takia.

5. These three houses existed on the site lying towards the east of the red line marked A.E in the commissioner's map. (Note—This portion is not in dispute). In tracing the history of the disputed land it was alleged that the land in suit was lying ‘parti’ till about the year 1922 when) one Kanhaiya Lal obtained the permission of the. Sajjadanashin to build a house thereon. Thereupon the aforesaid owners of the three houses approached the Sajjadanashin (Miyan Hamid-ud-din) who revoked the permission previously given to Kanhaiya Lal and gave the land in suit for building purposes to the owners of each of the three houses mentioned above.

6. The owners then built pucca ahatas to include the land in their’ respective houses. It was alleged that after the purchase of the house of Ali Bakhsh and Nabi Bakhsh in 1934, the defendants constructed a double storeyed house in the year 1935. It is not disputed that this house stands on the land marked A B C D in the commissioner's plan. Similarly after the purchase of the house of Maiku Bhuj in 1943 and that of Ganga Prasad and Bhup Narain in 1945 the defendants got the old houses demolished and started new constructions. The building, which lies on the disputed land C D E F, could not be completed when this suit was filed.

7. Shortly stated, the defence was that the land in suit was given by the previous Sajjadanashin for building purposes to previous owners of the three nouses who were in occupation of the land under an irrevocable license, and that the defendants acquired the rights which their vendors had in the disputed property. It was also pleaded that as the plaintiff had acquiesced in the constructions made on the disputed land, he was estopped from claiming demolition of the structures in suit. It is not necessary to refer to other pleas raised in defence.

8. Suffice it to say, that the defendants had challenged the right of the plaintiff to bring the suit. Though the point was not conceded, the appellant did not choose to advance any arguments before us. The learned Civil Judge has held that the plaintiff was the ‘de facto’ Sajjadanashin of the Takia Kalan as he has been managing the endowed properties ever since the death of the previous Sajjadanashin, which took place more, than 18 years ago. This finding was arrived at after considering the oral evidence of the parties and nothing has been urged before us to enable us to interfere with the finding of the trial Judge.

9. On the question of license set up by the defendants the learned Court below found the following facts proved.

(1) The land in suit was first granted to one Kanhaiya Lal for building purposes in or about the year 1922 but this permission was revoked by the then Sajjadanashin.

(2) Mian Hamid-ud-din Ali Shah (Sajjadanashin) after revoking the permission previously granted to Kanaiya Lal granted the disputed land to Ali Bakhsh, Ganga Prasad and Maiku Bhuj for building purposes.

(3) In the year 1923 or soon thereafter, the entire land in dispute was included in the houses of Ali Bakhsh, Ganga Prasad and Maiku Bhuj. Each had built an ahata so as to make it a part and parcel of his house.

(4) The three houses of Ali Bakhsh, Ganga Prasad and Maiku Bhuj were purchased by the defendants who rebuilt them after demolishing the old structure. The house on the land marked ABCD was built about 10 or 11 years prior to the suit, while the constructions on C D E F were started soon after the last purchase in the year 1945.

10. The learned Civil Judge, while recognizing that the transferors of the defendants were holding the disputed land under an irrevocable license held that the appellants, as transferees, could not be treated as licensees as they had failed to establish, ‘the exact terms of the permission’. On the question of estoppel the trial Court held that the constructions A B C D were made 10 or 11 years ago without any let or hindrance by the Sajjadanashin, who was estopped from questioning the rights of the defendants to occupy building with the site.

11. As regards the constructions on C D E F, it was held that they were recently started and no question of estoppel arose. The result was that part of the plaintiff's suit in respect of the land A B C D was dismissed; but the remaining part which related to the area covered by C D E F was decreed and the present appeal is directed against the decreed portion. The plaintiff has also filed cross-objection with regard to the portion of his claim which was dismissed.

12. Learned counsel for the appellants has contended that on the facts found established by the trial Court, the position of the appellants in relation to the entire disputed property is that of a licensee under an irrevocable licence. The contention must prevail.

13. It is not disputed before us that the entire land in suit was once included in the three houses of Ali Bakhsh, Ganga Prasad and Maiku Bhuj. The disputed land was at the back of these three houses and the owner of each had built a pucca compound wall enclosing his portion in the house. This was done by them in pursuance of the permission given to them by the Sajjadanashin, Miyan Hamid-ud-din, who did so after revoking the previous permission which had been granted to Kanhaiya Lal.

14. The evidence of Kanhaiya Lal assumes great importance in this case. He has deposed that the land in suit was originally granted to him on payment of Rs. 200/- as Nazrana to the Sajjadanashin and that subsequently he was called by the Sajjadanashin with a view to cancel his permission and to grant it in favour of the owners of the three houses, which were contiguous to the land in suit. He is definite that the land in suit was granted for building purposes to Ali Bakhsh, Ganga Prasad and Maiku Bhuj, who after obtaining the permission, made pucca enclosures to include the land in their respective houses.

15. It is, therefore, manifest that the land in suit was given finally to Ali Bakhsh, Ganga Prasad and Maiku Bhuj for building purposes. It is in the evidence of Balak Ram (D.W 9), who was working as ‘munim’ at the shop of Ganga Prasad Bhup Narain that Ganga Prasad had given a sum of Rs. 200/- for a portion of the disputed land which was at the back of their shop. We are not impressed with the criticism of the Civil Judge about the veracity of his statement.

16. It is plain that the Sajjadanashin used to grant permission to build on receipt of ‘nazrana’, and there is nothing strange, if ‘nazrana’ were realised at the time of granting the disputed land in three portions, one to each of the owners of the three houses, which already existed there. Ladli Prasad (P.W 14) has stated that in his presence Ali Bakhsh and Maiku Bhuj each paid Rs. 200/- for the land lying at the back of their respective houses.

17. We have been taken through the evidence of Ladli Prasad and we are satisfied that his evidence should be believed. Once the correctness of the story that Mian Hamid-ud-din had, after revoking the previous permission granted to Kanhaiya Lal, again granted permission to Ganga Prasad, Ali Bakhsh and Maiku is accepted, one would expect that he did so after realising the usual nazrana. We are satisfied that the fresh, permission to build on the land in suit was given “by Mian Hamid-ud-din, the then Sajjadanashin, after receiving a sum of Rs. 600/- for the entire land in suit.

18. The learned counsel for the appellants has not disputed the finding of the learned Civil Judge that the land in suit was granted by the previous Sajjadanashin for inclusion of the land in suit in the respective houses of Ganga Prasad, Ali Bakhsh and Maiku. It is also not controverted that these persons had built ahatas so as to make the land given to them as part and parcel of their houses.

19. The contention of the learned counsel for the respondents is that the construction of the ahatas by the predecessors of the appellants could not be regarded as a work of permanent nature so as to attract the provisions of cl. (b) of Section 60 of the Easements Act. We do not think that this contention has any force. We agree with the view enunciated in — ‘Nasir-ul-Zaman Khan v. Azim-ullah’, 28 All 741 (A) that the expression ‘work of permanent character’ occurring in S. 60 is intended to denote some work which is not merely of a temporary nature.

20. As pointed out above, the land in suit was given for building purposes and if the licensees did not put up costly constructions but merely built a pucca wall so as to include the land in their respective houses and to make it a part and parcel of their houses, it will be deemed to be a work of permanent nature within the meaning of cl. (b) of S. 60.

21. It was next argued that in view of the fact that licensees had constructed only enclosures (ahatas), it should be presumed that the license was granted for building an enclosure only and for no other type of building. We are unable to accept this contention also. We know it that originally the entire land in suit was given to Kanhaiya Lal for building a house. Indeed Kanhaiya Lal had obtained the sanction of the Municipal Board also for building a house on the land in suit but he could not do so as his license was revoked by the then Sajjadanashin, as pointed out above.

22. If the land in suit was granted for building purposes to Kanhaiya Lal, it is reasonable to infer that when it was again granted to the three persons named above, the purpose for which the permission was given could be no other than to grant the land for building purposes. The mere fact that the three persons were not able to put up an expensive building will not justify an inference that the land was granted only for building an ‘ahata’ and not for any other type of building.

23. The construction of a pucca ‘ahata’ by each of the three owners is sufficient to show that each of them had put up constructions of a permanent nature on the land given to them by the Sajjadanashin. We are, therefore, unable to hold that the land in suit was granted only for the purpose of building an ‘ahata’.

24. Section 60 of the Easements Act, is as follows:

“A license may be revoked by the grantor, unless:

(a) it is coupled with a transfer of property and such transfer is in force,

(b) the licensee, acting upon the license, has executed a work of a permanent character and incurred expenses in the execution.”

25. As pointed out above, Ganga Prasad, Ali Bakhsh and Maiku each had erected construction of a permanent nature and in doing so each one of them had incurred expenses in the erection of their respective ‘ahatas’. Under cl. (b) of S. 60, each of the three persons, namely Ganga Prasad, Ali Bakhsh and Maiku, was holding the land in suit under an irrevocable license.

26. We now take up the main contention of the learned counsel for the respondent to the effect that a licensee, who has built a house, has no right to transfer it. In other words, the contention is that such rights are heritable but non-transfer-; able. In support of this contention reliance has been placed upon a Division Bench case of the, Court in — ‘Kallu Shah v. Rahim Baksh’, AIR 1924 All 825 (B). The matter came up before a Bench in a Letters Patent Appeal and the Division Bench merely approved of the decision of Gokul Prasad, J., by remarking as under:

“There is nothing in this appeal. It was clearly rightly decided.”

27. We have, therefore, to fall back upon the judgment of Gokul Prasad, J. It was a suit brought by a mutawalli to eject defendant 2 from a house. It appears that defendant 1 in that case had built a house and it was found that defendant 1's position was that of a licensee holding the house under an irrevocable license. The question was whether the licensee could make a transfer. It was pointed out by Gokul Prasad, J. that

“a license is ordinarily only a personal right and carries with it the incident of non-transferability.”

28. It is unfortunate that there is no indication in the judgment to show whether the house in dispute in that case was situate in a village ‘abadi’, or in a town. The broad proposition of law laid down by Gokul Prasad, J. would hold good if the house was built by a tenant in an agricultural village. The case is of little assistance to us. We might, however, point out that there is another Division Bench case reported in the same volume at p. 112 — ‘Govind Prasad v. Kundan’, AIR 1924 All 112 (C), wherein it was observed that the presumption of non-transferability of houses built by licensees in agricultural villages has no application to towns.

29. In that case a licensee under an irrevocable license had transferred the house along with the site, and the transfer was questioned by the licensor. The house was situate in the town of Nazibabad and it was held that the transfer could not be assailed as the presumption of non-transferability by the licensees in respect of houses in agricultural villages could not be applied to sites in towns. We are in accord with the observations made in ‘Govind Prasad's case (C)’.

30. In agricultural villages, the practice of allowing tenants to build houses on sites owned by zamindars had its origin in antiquity. Such riyayas of the zamindar were licensees holding under an irrevocable license under Section 60 of the Easements Act. The purpose for which the riyayas were permitted to settle down on the land of the zamindar was to enable them to carry on their occupation of agriculture. It is evident that their occupation of houses was inseparably connected with their agricultural holding; and so long as they and their heirs continued to carry on cultivation in the village, they enjoyed the right of occupation of the house which was built with the leave and license of the zamindar.

31. If the tenant died without leaving any heir to succeed him to the agricultural holding or if he abandoned the village, the house would escheat to the zamindar. The prevailing practice in the case of the houses built by riyayas was that such houses were heritable but not transferable. It was to exclude any stranger creeping in the village community against the wishes of the zamindar that the practice of non-transferability of houses built by riyayas came into vogue. Keeping in view the conditions prevailing in agricultural villages, it was well understood that the riyayas who built houses with the permission of the zamindar had heritable rights in those houses but had no right to transfer them against the wishes of the zamindar.

32. In cities and towns also, the practice of granting permission to build by landlords has been in vogue from time immemorial. The conditions prevailing in cities and towns were, however, different. The licensees in urban areas were in a position to built costly houses, and the houses were built on the understanding that a licensee had transferable rights in the house. Thus the prevailing practice that grew up was that in cities a licensee had a right to transfer his house.

33. It was, however, open to the licensor to impose a restrictive condition at the time when permission to built was granted, and in that event the case of such a licensee would not be governed by the general usage. It has been recognised by a long string of judicial decisions that under the general practice prevalent in urban areas licensees had transferable rights in the houses built by them with the permission of the owner of the land, while in rural areas the practice was that the tenants had no such right of transfer.

34. Learned counsel for the appellant has placed’ reliance upon the decision of this Court in — ‘Mohammad Sher Khan v. Amjad Hussain’, AIR 1929 All 494 (D). The point that came up for decision was whether a licensee, who had built a house in the city of Kanauj, was competent to transfer it. The licensee had transferred the house to a third person and the owner of the site brought the suit to eject the transferee. Niamatullah J. made the following observation:

“Having regard to conditions prevailing in agricultural areas, it is to be presumed till the contrary is proved that the right of transfer is not an incident implied in the license under which riyayas occupy sites of their houses. In urban areas the presumption is otherwise.”

35. We entirely agree with the observation of Niamatullah, J. We need hardly emphasize that there is a clear distinction between the position of a licensee in rural area and that of a licensee in urban area relating to the transfer of houses built by them, as licensees. In rural areas, non-transferability is the rule, while in urban areas the presumption is that the licensees occupying houses in cities and towns have a right to transfer them, unless the contrary is established.

36. The question whether a licensee in urban areas had a right to transfer his house again came up for decision before a Division Bench of this Court in — ‘Ram Bharose…Defendant v. Bishnath Prasad…Plaintiff .’, AIR 1934 All 336 (E). The Division Bench upheld the view of Niamatullah, J. With regard to the transferability of a house built by a licensee in urban areas, the following observation may be” quoted with advantage:

“We are of opinion that in cases of houses built in cities on the land belonging to the landlords, there can be no presumption that they have no power of transfer. If the landlord contends that, the tenant had no right to transfer the building which he had built and which he was occupying, it is for him to show that under the terms, of the license the right of the tenant was limited and it was expressly agreed that he would be incompetent to make a transfer.”

37. The general practice prevailing in this State as to the rights of licensees to transfer their houses in cities is so well known that the Courts of law have consistently recognised that a licensee in urban areas will be presumed to have a right of transfer unless under the terms of any particular licence it was specifically provided that the licenseej shall have no such right of transfer. The existence of this usage was again recognised by the Court in the case of — ‘Misri Lal v. Durga Narain Singh’, AIR 1940 All 317 (F). Allsop J. pointed out that

“the general rule in these provinces is that tenants in rural areas or agricultural villages are not, entitled to transfer houses and the sites of houses but are entitled only to transfer the materials of which the houses are built, whereas tenants in urban areas are entitled to transfer the houses as they stand upon their sites.”

38. We have, therefore, no hesitation in holding that the three original licensees in this case were entitled to transfer their respective houses along, with enclosures and that the appellants' right to occupy these houses cannot be questioned.

39. Learned counsel for the respondent has next, argued that under Section 56 of the Easements Act, a licence is always treated to be a personal right and it cannot be made the subject of transfer. We are not impressed with this argument. Section 56 runs thus:

“Unless a different intention is expressed or necessarily implied, a licence to attend a place of public entertainment may be transferred by the licensee; but, save as aforesaid, a licence cannot be transferred by the licensee or exercised by his-servants or agents.”

40. The words ‘save as aforesaid’ are important and they must be read with the opening words of the section ‘unless a different intention is expressed or necessarily implied.” The intention referred to in S. 56 may be gathered from the terms of the grant itself or from the local usage. In order to entitle a licensor to take advantage of S. 56 of the Easements Act it is his duty to show that under the terms of a particular license no trans. We do not, therefore, think that S. 56 helps the ferable rights were to be enjoyed by the licensee respondent.

41. The learned trial Judge has recognised the fact that the original licensees were holding the disputed land under an irrevocable licence. He has, however, pointed out that as the terms of the licence under which the licensees had built the houses were not established it was not possible for him to hold that the original licensees had a right to transfer the houses built by them under the licence. This was clearly an erroneous view of the law. We have already pointed out that there is a presumption that licensees have transferable and heritable rights in the houses built by them in cities and towns.

42. In view of this presumption it was the duty of the plaintiff to establish that under the terms of the licence granted by his predecessor the licensees had no transferable rights. This was not done. In view of what has been stated above, the appellants had stepped into the shoes of the original licensees and they had every right to reconstruct the building, as the disputed land was granted for building purposes and the licence had become irrevocable, as stated above.

43. In view of our finding on the question of licence it is not necessary to consider the question of estoppel and we do not propose to express any opinion on that point.

44. The last contention advanced by the learned counsel for the respondent was that the previous Sajjadanashin, who granted the permission to build on the disputed land, was holding the particular office for his life only and any act done by him is not binding upon his successor, the plaintiff. It appears that this plea was not raised before the trial Court. However, we have allowed the point to be argued although it is a new point. The aforesaid contention is based upon Section 53 of the Easements Act, which is as follows:

“53. A license may be granted by any one in the circumstances and to the extent in and to which he may transfer his interests in the property affected by the license.”

45. From the language of S. 53 it is manifest that a person who has a transferable interest in land is competent to grant a license. It was therefore contended that the previous Sajjadanashin was holding his office for his lifetime and as such he could not grant a license which would enure beyond his life. In support of this contention reliance has been placed upon a Privy Council case of — ‘Vidya Varuthi Thirtha Swamigal v. Baluswami Ayyar’, AIR 1922 PC 123 (G). In that case their Lordships remarked as under:

“According to the well-settled law of India (apart from the question of necessity which does not here arise) a Mohunt is incompetent to create any interest in respect of the Mutt property to enure beyond his life.”

46. It has been pointed out to us, and rightly, that the position of a mahant is analogous to the position of a, Sajjadanashin and it may be conceded as a general proposition of law that a Sajjadanashin is not competent to create any interest in respect of the endowed property which would last beyond his life. Their Lordships of the Privy Council were, however, careful in pointing out that in suitable cases a transaction entered into by a mahant may be justified on the ground of necessity.

47. The position of a Shebait or a Sajjadanashin in relation to endowed property is that of a prudent manager. If a Sajjadanashin deals with the endowed property for the benefit of the endowment, then his action will be binding upon his successor also. Let us examine the facts of this case in order to find out whether the act of the previous Sajjadanashin was that of a prudent manager.

48. As indicated in the earlier part of the judgment, the endowment known as Takia Kalan was owner of vacant lands lying in various muhallas in the city of Bahraich. This particular plot was in muhalla Chhawni Bazar. As a piece of vacant land it was not yielding any profit to the endowment. When the licence was given the disputed land, as pointed out above, brought an income of Rs. 600/- which was paid as ‘nazrana’ for the permission granted by the Sajjadanashin. Muhalla Chhawni Bazar gradually grew up to be a market place where carts laden with goods used to arrive.

49. It seems to us that when businessmen were allowed to settle down in this part of the muhalla and as trade increased, a larger number of carts began to pour in and thus the income of the Takia from realization of ‘tahbazari’ dues went up appreciably. It is in the evidence of Kanhaiya Lal (D.W 4) that carts for selling grains used to go to muhalla Chhawni Bazar and from the owners of those carts ‘tahbazari’ dues were realised. We have it in the evidence of Balak Ram (D.W 9) that formerly ‘tahbazari’ dues yielded an income of Rs. 100/- to Rs. 200/- per year and that the income from that very source increased to Rs. 7000/- to Rs. 8000/- per year.

50. Thus the granting of lands by the Sajjadanashin to various persons for building houses brought income to the Takia at first in the shape of ‘Nazrana’ and when businessmen began to settle down in this muhalla and a larger number of carts began to come in, the income from ‘tahbazari’ dues showed a marked increase. It cannot, therefore, be doubted that the act of the previous Sajjadanashin in granting lands for building purposes was an act of a prudent manager, as it had the effect of bringing more income to Takia Kalan.

51. In our opinion it is not open to the present Sajjadanashin plaintiff to question the act of his predecessor which was beneficial to the endowment. We might as well refer to another case of — ‘Bawa Maniram Sitaram v. Kasturbhai Manibhai’, AIR 1922 PC 163 (H). In that case their Lordships of the Privy Council observed that “the disability of a Shebait to make the permanent grant is not absolute” and that

“under special circumstances it must be presumed that the grant would be valid beyond life of the grantor if a long time has elapsed after the grant.”

52. It may be pointed out with advantage that the previous Sajjadanashin died in the year 1928 but no action was taken by the present Sajjadanashin to question the grants made by the predecessor. This conduct of the plaintiff-respondent leads to the inference that he had ratified the transactions which had been entered into by his predecessor. On that score too, we are not disposed to upset the arrangement under which the previous Sajjadanashin had granted the previous disputed land for building purposes, as he must have done so in conformity with the established practice under which the Sajjadanashins were working.

53. It is, therefore, not possible to accept the contention of the respondent's Counsel that the permission which was granted by the previous Sajjadanashin could not enure beyond his lifetime. The plaintiff Sajjadanashin brought the suit treating the appellants as rank trespassers. We have held that the appellants are holding the disputed land under the irrevocable licence and that they were quite justified in pulling down old structures in order to enable them to put up new constructions on the disputed land. In this view of the case, the plaintiff's suit should have been dismissed by the Civil Judge.

54. The respondent also filed cross-objections an respect of that part of the decree by which the claim to possession of land covered by letters A B C D was dismissed. As indicated above, there is no substance in the cross-objections, as in our opinion the entire disputed land stands on the same footing. We, therefore, allow the appeal and dismiss the suit with costs in both the Courts. The cross-objections are also dismissed with costs.

V.R.B

55. Appeal allowed: Cross-objections dismissed.