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Ram Nath And Others v. Neta .
Summary of Legal Opinion
Factual and Procedural Background
The plaintiffs, Badri Prasad and Trilok Chand, alleged ownership of an abata and houses in the town of Bisauli, claiming purchase from prior owners in 1950. They asserted that the defendant's father and uncle had taken a lease for ten years in 1915 and executed a qabuliat to that effect; after the defendant's father's death (about 1922) the tenancy purportedly devolved on heirs, and the defendant continued in occupation, paying rent at Rs. 4/- per month (as pleaded). Plaintiffs alleged default in payment of rent, served notice under Section 106 of the Transfer of Property Act and, when the defendant did not vacate, instituted a suit for possession.
The defendant contested title and tenancy, denying execution of the qabuliat or alleging it was procured by fraud, alternatively pleading that his father had constructed the house and that their occupation had been as licensees whose permission ceased on the father's death; he maintained that thereafter he was a trespasser and had perfected title by adverse possession, and that the suit was time-barred.
At trial the Civil Judge disbelieved the defendant's construction story, held the plaintiffs to be owners, but found that the plaintiff failed to prove a landlord-tenant relationship; the defendant was treated as a trespasser and the suit was dismissed as time-barred. On first appeal the learned Civil Judge agreed on ownership but held the 1915 qabuliat did not create a lease and that the occupiers were licensees whose licence extinguished on the father's death; he confirmed dismissal as time-barred. The plaintiffs brought a second appeal to the present Court.
Legal Issues Presented
- Whether the relationship between the defendant's father and the plaintiff's predecessor-in-interest was that of landlord and tenant.
- Assuming that the defendant's father was a tenant, whether the tenancy rights devolved on the defendant after his father's death.
Arguments of the Parties
Appellants' (Plaintiffs') Arguments
- Learned counsel for the appellants (Mr. Radha Krishna) argued that the lower courts erred in holding that the defendant's father was not the tenant of the plaintiff's predecessor in interest.
- He further contended that, if the father was a tenant, those tenancy rights devolved on the defendant after the father's death and the defendant continued in possession as a tenant.
- He relied on evidence (notably the testimony of Chokhey Lal, P.W.2) corroborating that the defendant's father and uncle were tenants who paid rent.
Respondent's (Defendant's) Arguments
- Learned counsel for the respondent (Mr. Sadiq Ali) contended that the qabuliat of 1915 could not have created a lease and that the courts below were correct in treating the occupiers as licensees rather than tenants.
- The defendant denied the execution or binding effect of the qabuliat, alternatively pleading that it was obtained by fraud and was not binding.
- The defendant also disputed the plaintiff's title and asserted adverse possession and that the suit was time-barred; both lower courts disbelieved plaintiff's evidence of subsequent rent payments.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Sardar Ali v. Ambika Prasad, AIR 1930 All 678 | Cited by respondent to support the contention that a qabuliat cannot be treated as evidence of a lease (in the respondent's argument). | The Court read this decision with others relied upon by the respondent and concluded these decisions do not support the broad proposition that a qabuliat cannot be looked into as corroborative evidence for a lease of less than a year. |
| Kedarnath v. Shankar Lal, AIR 1924 All 514 | Cited by respondent in support of rejecting qabuliat as evidence of a lease. | The Court considered it but held it did not justify excluding qabuliat as corroborative evidence for oral leases of less than a year. |
| Anand Sarup v. Tayab Hasan, AIR 1943 All 279 | Cited by respondent to argue the qabuliat is inadmissible as evidence of lease. | The Court found the decisions relied on did not preclude consideration of a qabuliat as corroborative evidence of an oral lease of less than a year. |
| Shiv Dutt v. Ghasita, AIR 1953 All 499 | Cited by respondent on the legal effect of a qabuliat. | The Court determined the decision did not support the contention that a qabuliat is incapable of being corroborative evidence for short-term oral leases. |
| Shubrati v. Kunj Behan, AIR 1946 All 403 | Cited by respondent among authorities addressing the evidential value of a qabuliat. | The Court concluded that none of these decisions establish that a qabuliat cannot be used as corroborative evidence for oral leases permissible under Section 107 (i.e., leases of less than a year). |
| Sheo Karan Singh v. Parbhu Narain Singh, ILR 31 All 276 (Full Bench) | Relied on by appellants to support looking into instruments as evidence of oral agreements. | The Court observed limited relevance to present facts but noted it was among authorities considered; the Court relied instead primarily on factual testimony (Chokhey Lal). |
| Mohan Lal v. Ganda Singh, AIR 1943 Lah 127 (Full Bench) | Full Bench decision cited to support that a rent deed, though ineffective as a lease, can be evidence of an oral agreement. | The Court regarded the Lahore Full Bench decision as supportive of the proposition that a rent deed may be examined as evidence of an oral agreement; this principle assisted the Court's approach to corroborative evidence. |
| Raman Lal v. Bhagwan Das, AIR 1950 All 583 | Cited for the principle that when an oral lease becomes periodic (monthly) under Section 116, tenancy rights may devolve on heirs. | The Court applied this authority to hold that after the oral lease expired and became month-to-month under Section 116, the tenancy rights devolved on the tenant's son on the tenant's death in 1922. |
| Anwarali v. Jamini Lal Roy, AIR 1940 Cal 89 | Cited in relation to devolution of tenancy rights on death under periodic tenancy principles. | The Court relied on this decision alongside Raman Lal to support the conclusion that the defendant inherited the tenancy rights and continued in possession as a tenant. |
Court's Reasoning and Analysis
The Court approached the matter in stages. It first observed that a qabuliat is a unilateral transaction and, in principle, cannot by itself create a lease because a lease requires consensus between parties. Therefore the qabuliat alone was insufficient to establish a lease requiring further evidence.
The Court then examined the additional evidence and found persuasive testimony from Chokhey Lal (P.W.2), the mukhtar-e-am of the plaintiff's predecessor-in-interest, who deposed that the defendant's father and uncle were tenants and paid rent at Rs. 10 per annum. The Court concluded the lower courts had overlooked or undervalued this witness' testimony when they treated the qabuliat as the sole evidence of tenancy.
Although a portion of Chokhey Lal's testimony (regarding any fresh agreement after the father's death and payment of rent at Rs. 3 per annum) had been rejected by the lower courts, the Court declined to disregard the entirety of his evidence on that ground. The Court accepted his testimony that the defendant's father was a kirayedar (tenant) paying Rs. 10 per year.
The Court considered the respondent's reliance on several decisions which, it noted, hold that a qabuliat cannot be treated as independent evidence of a lease for more than a year or from year to year reserving a yearly rent. The Court agreed with that limited principle but held that those authorities did not establish that a qabuliat could not be used as corroborative evidence of an oral lease for a period of less than a year (such oral leases being permitted by Section 107 of the Transfer of Property Act). The Court further observed that a Full Bench decision of the Lahore High Court supported the view that a rent deed, though not effective as a lease, can be looked into as evidence of an oral agreement.
The Court then applied statutory principles. It found the original agreement dated about 7-10-1915 created an oral lease which expired on 24-10-1916; under Section 116 of the Transfer of Property Act the tenant became a month-to-month tenant. The tenant died in 1922 and, relying on authorities (Raman Lal v. Bhagwan Das and Anwarali v. Jamini Lal Roy), the Court held that the rights under the monthly tenancy devolved on the tenant's son (the present defendant), meaning the defendant continued in possession as a tenant, not as a trespasser.
Addressing the lower courts' emphasis on non-payment of rent, the Court held that non-payment of rent by itself does not raise a presumption of adverse possession. The Court explained that non-payment can have many causes (e.g., inability to pay or the landlord's indifference when rent is very small) and that, despite being bound by the appellate finding that no rent was paid, it would not infer repudiation of the landlord's title from non-payment alone.
On these factual findings and principles, the Court concluded that the relationship of landlord and tenant between the plaintiff and the defendant was established and that the lower courts erred in treating the suit as barred by adverse possession.
Holding and Implications
Holding: The Court held that the relationship of landlord and tenant between the plaintiffs and the defendant was established and that the courts below erred in holding that the suit was barred by adverse possession.
Implications:
- Immediate consequence for the parties: The defendant's possession was held to be that of a tenant (with tenancy rights devolving on him after his father's death), and not of a trespasser; therefore the finding that the suit was time-barred by adverse possession was erroneous.
- Evidential clarification by the Court: While a qabuliat (a unilateral rent deed) cannot itself create a lease requiring mutual consensus, it may be examined as corroborative evidence of an oral lease permitted by statute (notably leases of less than a year permitted under Section 107), and authorities cited do not justify excluding a qabuliat from being corroborative in that limited context.
- On non-payment of rent: The Court held that non-payment alone does not necessarily establish adverse possession; absence of rent receipts does not automatically mean repudiation of the landlord's title.
- No new broad precedent was proclaimed beyond the Court's application of existing principles to the facts: the Court explained its approach to the evidential use of a qabuliat and applied existing authorities concerning devolution of periodic tenancy and the treatment of qabuliat as corroborative evidence.
1. This is a landlord's second appeal against the decision of the Civil Judge, Budaun dismissing their suit for possession of a house against the defendant. The plaintiffs Badri Prasad and Trilok Chand alleged in their plaint that they were the owners of an abata in the town of Bisauli and the houses situate in it, having purchased it from the previous owners in 1950. They further state that the defendant's father and uncle were the tenants of the plaintiff's predecessor in interest, having taken a lease for ten years in the year 1915 and executed a qabuliat in token of it; that after the death of the defendant's father, in or about 1922, they inherited the tenancy rights and continued as tenants without interruption and paid rent at the rate of Rs. 4/- per month. The plaintiff's case is that the defendants defaulted in the payment of rent and they were compelled to terminate their tenancy by a notice under Section 106 of the Transfer of Property Act. The defendants, however, did not vacate the house in dispute; hence the suit.
2. The defendant contested the suit and denied that he was in possession of the house under any contract of tenancy. He denied that his father and uncle had executed any qabuliat, and pleaded in the alternative that it was obtained by fraud and that it was not binding on the defendant, at any rate. He denied even the plaintiff's title as owner, and alleged that his father had constructed the house in dispute. His case was that his father and uncle were not tenants but mere licensees of the plaintiff and the license terminated on the death of the father; after this the defendant continued in possession as a trespasser and perfected his title by adverse possession after twelve years. He pleaded that the plaintiffs suit was time barred.
3. The trial court disbelieved the version of the defendant that the house in dispute was constructed by his father and held that the plaintiffs were the owners of it. But it found that the plaintiff had failed to prove the relationship of landlord and tenant between himself and the defendant in other words, the defendant was in occupation of the house after the death of his father as a trespasser. Accordingly, it dismissed the suit as time-barred.
4. In appeal the learned Civil Judge upheld the view of the trial court that the plaintiff was the owner of the house and that the defendant's story that his father had built it was false. But he took the view that the qabuliat of 1915 did not create a lease and consequently the so-called lessee took possession of the house as a licensee. He also held that the licence was extinguished on the death of the defendant's father and the defendant continued in possession on sufferance that is as a trespasser, me learned Judge rejected the evidence of the plaintiff that the defendant had paid rent to the plaintiffs even after the death of his father. Confirming the view of the trial court, he dismissed the suit as time-barred. The plaintiffs have now come to this Court in second appeal.
5. Mr. Radha Krishna, learned counsel for the appellants who argued this case with tenacity and thoroughness, urged that the view of the courts below that the defendant's father was not the tenant of the plaintiff's predecessor in interest is erroneous in law. Secondly, he contended that after the death of his father the defendant inherited the tenancy rights and continued in possession as a tenant. On the other hand, Mr. Sadiq Ali, learned counsel for the defendant respondent contended that the qabuliat of 1915 could not have created a lease and the view of the courts below that the defendant's father took possession as a licensee was correct. I heard learned counsel at considerable length and at one stage even adjourned the hearing to enable both counsel to place before the Court the authorities in support of their respective cases.
6. The first question is whether the relationship between the defendant's father and plaintiff's predecessor-in-interest was that of landlord and tenant, and secondly--assuming that he was tenant whether his tenancy rights devolved on the defendant after his death. It is common ground between counsel that if the defendant did not inherit any tenancy rights, his possession was that of trespasser unless he accepted the relationship of landlord and tenant by a fresh agreement. It was conceded by Mr. Radha Krishna that it was not open to him to challenge in second appeal the finding of the appellate court that the defendant had paid no rent and entered into no fresh agreement with the landlord.
7. The document executed by the defendant's father in 1915 was a qabuliat that is a unilateral transaction. It is elementary that a qabuliat cannot create a lease which re-quires consensus between the two parties, the only question is whether there is any other evidence of a lease. In my opinion there Is. The plaintiffs principal witness on this point was Chokhey Lal P. W. 2 who was the Mukhtar-e-Am of the plaintiffs predecessor-in-interest in whose favour the qabuliat had been written by the defendant's father. He deposed that the defendant's father and uncle were the tenants of his employers and paid rent at the rate of Rs. 10/- per annum. (Ye donon das rupiya salana kiraedar the".) The courts below appear to have been under the impression that the qabuliat was the only evidence of the tenancy and overlooked the testimony of Chokhey Lal.
Learned counsel for the respondent urged that this Court should not believe this man's testimony after his evidence on the question of any fresh agreement between the defendant and the plaintiff had been rejected by both the courts below. It is true that Chokhey Lal had deposed that the defendant made a fresh agreement after his father's death and paid rent for one house at the rate of Rs. 3/- per annum, and this part of his testimony has not been accepted by the lower courts. In second appeal the finding of the appellate court is binding on me. But I am not inclined to disbelieve the other part of Chokhey Lal's evidence simply on the ground that a portion of his testimony relating to another transaction has been rejected. I think that Chokhey Lal was telling the truth when he said that the defendant's father was a Kirayedar and paid rent at the rate of Rs. 10/- per year.
Learned counsel for the defendant was hot able to suggest any explanation why the plaintiffs predecessor-in-interest should have allowed the defendant's father and uncle to take possession of the property in dispute except as tenants. It is the defendant's own case that his ancestors took possession under an agreement with the landlord. Thus the circumstances corroborate Chokhey Lal's testimony on this point. I have not taken into consideration the Qabuliat as evidence of the lease in view of a number of decisions of this Court cited by learned counsel for the defendant respondent. He urged that not only the qabuliat must be rejected as a lease but also as evidence of any other kind of transaction. He relied on four (sic) (five?) decisions of this Court, Sardar Ali v. Ambika Prasad AIR 1930 All 678, Kedarnath v. Shankar Lal, AIR 1924 All 514, Anand Sarup v: Tayab Hasan, AIR 1943 All 279, Shiv Dutt v. Ghasita, AIR 1953 All 499 and Shubrati v. Kunj Behan, AIR 1946 All 403. I have perused all these decisions with very great care but I do not think that they support learned counsel's argument that a qabuliat cannot be looked into as corroborative evidence for any purpose whatsoever even if it is rejected as a lease. In some of these decisions it has been held that a qabuliat cannot be treated as independent evidence of a lease for more than a year or from year to year or reserving a yearly rent. With respect, I entirely agree. If a qabuliat is rejected as a document creating a lease, the whole purpose of Section 107 of the Transfer of Property Act would be frustrated if the same document is admitted as evidence of an oral lease exceeding a year or from year to year or reserving a yearly rent. But I do not find anything in any of the decisions cited by learned counsel for the respondent to suggest that a qabuliat cannot be looked into as corroborative evidence of a lease for a period of less than a year. Such a lease is permitted by Section 107 to be made by oral agreement, and it does not violate the principle of Transfer of Property Act or the Evidence Act to look into a qabuliat as corroborative evidence of an oral lease which is otherwise in accordance with law. Mr. Radha Krishna relied on a decision of a Full Bench of this Court in Sheo Karan Singh v. Parbhu Narain Singh, ILR 31 All 276 (FB) and on another decision of a Full Bench of the Lahore High Court in Mohan Lal v. Ganda Singh, AIR 1943 Lah 127 (FB). I do not think that the first case has much relevance to the present controversy but the Lahore decision fully supports counsel's contention that a rent deed, though not effective as a lease, can be looked into as evidence of an oral agreement. However, I have relied entirely on the evidence of Chokhey Lal for my finding that the relationship between defendant's father and the plaintiff's predecessor-in-interest was that of landlord and tenant.
8. The agreement was made on or about 7-10-1915. The oral lease expired on 24-10-1916, but the tenant continued in possession, and under Section 116 of the Transfer of Property Act he became a tenant from month to month. He died in 1922 and on his death the rights under the monthly tenancy devolved on his son, the present defendant. Raman Lal v. Bhagwan Das, AIR 1950 All 583 and Anwarali v. Jamini Lal Roy, AIR 1940 Cal 89. Thus the defendant continued in possession not as a trespasser but a tenant. No question of adverse possession arises.
9. Learned counsel for the defendant argued that nonpayment of rent by the defendant throughout these years means that his possession became adverse. He pointed out that both the courts below have disbelieved the plaintiff's story that the defendant had paid rent. I am not inclined to accept this contention. Non-payment of rent by itself raises no presumption of adverse possession. Non-payment may be due to several reasons as for example the sheer inability of the tenant to pay rent or smallness of the amount of rent which the landlord does not bother to collect, in this case the rent was at the rate of Rs. 3/- per year. It is very likely that the landlord thought that it would not break his back if the tenant did not pay rent regularly provided he acknowledged his position as landlord. Therefore, though I am bound by the finding of the courts below (however unsatisfactory it may be) that the defendant paid no rent, I am not prepared to draw any inference from this finding that the non-payment was due to a repudiation of the landlord's title.
10. In my view the relationship of landlord and tenant between the plaintiff and the defendant is established and the courts below erred in holding that the suit was barred by adverse possession.
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