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  • Sec. 111 of the Transfer of Property Act read with Sec. 106 of that Act,
  • Sec. 106 of the Transfer of Property Act.7.
  • Sec. 106 of the Transfer of Property Act.
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  • Sec. 111 of the Transfer of Property Act read with Sec. 106 of that Act,
  • Sec. 106 of the Transfer of Property Act.7.
  • Sec. 106 of the Transfer of Property Act.
Smart Summary

Judgment Summary: Asthana, J.

Factual and Procedural Background

This is an appeal by the defendant (appellant) against a decree ordering his ejectment from a house in Agra and recovery of arrears of rent in favour of the plaintiff-respondents (landlords). The only point for determination in the appeal was whether the notice to quit or termination of tenancy sent by the plaintiffs and served on the defendant was valid and effective within the meaning of Section 106 of the Transfer of Property Act. Findings of fact regarding arrears, the amount due and the defendant's default in paying those arrears were not challenged in the appeal. The notice in dispute was served on the defendant on 30th December, 1959 and required vacation of the premises by the 29th January, 1960 (thirty days from receipt). A copy of the notice (dated 23-12-1959 in the record as paper No. 18-C) was reproduced in the opinion and its text formed a central part of the court's analysis.

Legal Issues Presented

  1. Whether the notice terminating the tenancy (the notice to quit) sent by the plaintiffs and served upon the defendant was valid and effective within the meaning of Section 106 of the Transfer of Property Act.

Arguments of the Parties

Defendant's (Appellant's) Arguments — Sri Swami Dayal

  • The notice terminating the tenancy must be fair, unambiguous and unequivocal, showing an absolute intention on the landlord's part to terminate the tenancy at the expiry of thirty days from receipt.
  • The notice in question was ambiguous and equivocal; specifically, its second part asked the defendant to pay rent at Rs. 8/- from 1st January, 1960 (during the notice period), which operated as an offer that, if accepted, would continue the tenancy and avoid surrender of possession on 29th January, 1960.
  • Because the notice offered an alternative (payment of enhanced rent during the notice period) the notice was not an effective unconditional termination under Section 106.

Plaintiffs' (Respondents') Arguments — Sri S.K. Dhaon

  • The notice could be divided into two distinct and independent parts: the first part was an unequivocal notice to quit (terminating the tenancy) and the second part was merely an offer to the defendant to enter into a fresh agreement for a new tenancy; the second part did not affect the termination effected by the first part.
  • Reliance was placed on authorities (for example, Ahearn v. Bellman and Sheo Shanker Lal v. Babu Ram) where notices with a similar structure were construed as terminating the existing tenancy while separately offering a new tenancy.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ahearn v. Bellman, L.R. 4 Ex. Div. p. 201 Shows a notice where the first part terminated the tenancy and the second part offered a new tenancy; the second part was a separate and distinct offer not modifying the existing tenancy. The court held this case was not helpful to the plaintiffs because, in the instant notice, the second part did not offer a fresh tenancy after termination but rather sought to modify and continue the existing tenancy during the notice period.
Sheo Shanker Lal v. Babu Ram, A.I.R. 1921 All. p. 174 Decision on similar lines to Ahearn (notice construed as terminating existing tenancy with a separate offer thereafter). The court found no assistance from this authority for the plaintiffs' position for the same reason as in Ahearn: the instant notice operated as a conditional continuation of the existing tenancy rather than an independent offer of a new tenancy.
Jugla v. Har Narain Singh, Vol. 19 I.C. p. 758 Authority holding that a landlord's call on a tenant to enter into an agreement to pay an enhanced rent (failing which he would be asked to quit) did not necessarily render a notice to quit invalid; the decision turned on peculiar terms of that notice. The court discussed this decision as one class of cases but distinguished it from the present case; Jugla was recognized but did not control the outcome here because of differences in the terms and timing of the alternatives offered to the tenant.
Kikabhai v. Kalu, I.L.R. 22 Bom. 241 Bombay High Court decision holding a notice valid after construing its terms; discussed in Jugla; comment about whether alternative persisted until the date specified in the notice. The court noted the Bombay decision and its distinctions from the Calcutta authority (Mohamaya Goopta). The present opinion considered these authorities in analysing whether an alternative offered during the notice period invalidates a termination; the court ultimately required that a notice to quit be unconditional and unequivocal.
Mohamaya Goopta v. Nilamdhib Rai, I.L.R. 11 Cal. 533 Garth, C.J. expressed doubts whether a notice to quit that presented an alternative to the tenant was valid and stated that a notice to quit ought to be clear and unambiguous. The court treated Garth, C.J.'s observation as reflecting a requirement of clarity and unequivocality for notices to quit, and used that principle in concluding that the notice in the instant case was conditional and therefore invalid as a Section 106 notice.

Court's Reasoning and Analysis

The court proceeded by close textual analysis of the reproduced notice and by applying legal principles concerning the form and effect of a notice to quit under Section 106 of the Transfer of Property Act. The key elements of the court's reasoning, in the order presented in the opinion, were:

  1. Reproduction and timing of the notice: the notice (paper No. 18-C) was reproduced in full in the record and was proved to have been served on the defendant on 30th December, 1959; the tenant was thus required to vacate by 29th January, 1960.
  2. Nature of the complaint and the contested clause: the disputed feature was that the notice contained a clause stating that the rent should be Rs. 8/- per month "with effect from 1st Jan. 1960"—that is, during the notice period and before the tenancy's scheduled termination date.
  3. Defendant's contention: counsel for the defendant argued that this clause made the notice ambiguous and equivocal because, if the tenant accepted to pay Rs. 8/-, the tenancy would effectively be continued and the tenant would not have to hand over possession on 29th January, 1960.
  4. Plaintiff's contention and authorities relied upon: plaintiffs' counsel argued the notice could be split — the first part being an unequivocal termination and the second part an offer of a new tenancy — relying on authorities such as Ahearn v. Bellman and Sheo Shanker Lal v. Babu Ram where notices had been so construed.
  5. Comparison with cited authorities: the court examined those cases and distinguished them. In Ahearn and Sheo Shanker Lal the second part was held to be an offer of a new tenancy distinct from termination; but in the present notice the second part was not an offer of a new tenancy after termination but an attempt to modify and continue the existing tenancy during the notice period.
  6. Harmonious construction and effect of the second part: applying principles of harmonious construction, the court read the notice as a whole and concluded that the only sensible reconciliation of its parts was to treat the second part as showing the plaintiffs' intention to continue the existing tenancy (on payment of Rs. 8/-) rather than to effect an absolute termination. Thus the termination stated in the earlier part became conditional on the tenant's refusal to accept the modified rent.
  7. Legal principle on notices to quit: the court articulated the legal requirement that a notice terminating a tenancy must be unconditional, unequivocal and clear—so that a tenant has no power left to arrest the effect of the termination during the notice period and the tenancy stands terminated at the expiry of the notice.
  8. Distinguishing other lines of cases: the court observed two classes of authorities — (a) where a notice contained an offer of a new tenancy after expiry of the earlier tenancy, and (b) where a tenant was asked to enter into a fresh agreement before the notice period started — both classes involve offers of new tenancies rather than conditional continuations of the existing tenancy. The court found no authority supporting the validity of a notice that offers an alternative during the notice period which, if accepted, prevents termination.
  9. Conclusion from analysis: applying these principles, the court held that the challenged notice was conditional (it left open the tenant's power to prevent termination by accepting the enhanced rent) and therefore was not an effective unconditional notice terminating the tenancy within the meaning of Section 106 of the Transfer of Property Act.

Holding and Implications

Core Ruling: The court held that the notice in question was not an effective notice terminating the tenancy within the meaning of Section 106 of the Transfer of Property Act.

Direct consequences and disposition:

  • The appeal partly succeeds.
  • The decree of the court below is modified to the extent that the plaintiffs' suit for ejectment of the defendant is dismissed.
  • The decree for mesne profits is set aside.
  • The decree for arrears of rent remains in force ("the decree for arrears of rent shall stand").
  • Each party is directed to bear their own costs of this appeal.
  • Final notation in the opinion: "Appeal partly allowed."

Broader implications: The opinion applies and reiterates the principle that a notice to quit must be unconditional, unequivocal and clear. The opinion does not state that it establishes any new broader precedent beyond the application of these principles to the facts of this case.

    Chidda Ram v. Naru Mal And Another

    Asthana, J.:— This is an appeal by the defendant against whom a decree for ejectment from a house situate in the city of Agra and for recovery of arrears of rent has been passed. The only point which calls for determination in this appeal is whether the so-called notice to quit or termination of tenancy sent by the plaintiff-respondents, the landlord, and served upon the defendant-appellant, the tenant, was valid and effective within the meaning of Sec. 106 of the Transfer of Property Act. It may be mentioned that the findings of fact recorded against the defendant-appellant on the question of the arrears due, the mount of arrears due and the default in complying with the notice calling upon him to pay up the arrears have not been challenged in this second appeal. It is clear, therefore, that if the appellant succeeds in establishing that the notice was not an effective notice under Sec. 106, the only consequence would be that the suit of the plaintiffs as far as the ejectment of the defendant is concerned, would stand dismissed and the decree of the court below would be modified to that extent only.

    2. In order to appreciate the submissions made at the Bar in regard to the validity of the notice as an effective notice under Sec. 106 of the Transfer of Property Act, it is necessary to reproduce the notice, a copy of which is paper No. 18-C on the record having been admitted in evidence duly proved as a true copy of the original notice sent to the defendant by the plaintiffs:—

    “From the office of Jethanand

    Advocate.

    Johri Bazar, Agra,

    D/- 23-12-1959.

    Sri Chida Ram son of Nand Kishore, R/o H. No. 4979 Dhuliaganj, Agra

    Dear Sir,

    Under, instructions and on behalf of my clients Naru Mal son of Guloo Mal and Bahru Mal son of Chhugo Mal residents of Shahganj Agra please take notice:

    1. That whereas you are in occupation of one big Kamra on the ground floor at the rate of Rs. 4/- per month.

    2. That whereas you are a bad pay master in respect of the rent and have not paid the rent since 1-8-1958 despite repeated demands made in this behalf.

    3. And that whereas you insult annoy and intimidate my clients whenever they demand the rent from you and have constituted a nuisance in the premises.

    This is therefore to call upon you please to vacate the premises in your occupation on the expiry of the 30th day of the receipt of this notice and also please remit my client the amount of rent due till then along with Rs. 3/50 n.p as the costs of this notice failing which I have instructions to proceed legally in the matter at your risk as to costs and consequences which please note.

    Also please note that the rent that you are paying is absolutely insufficient and inadequate and taking in consideration the accommodation the rent prevailing in the locality for similar accommodation and all other facts the most fair rent of the premises cannot be less than Rs. 8/- per month and you are required to pay rent at the said rate with effect from 1st Jan. 1960 failing which I have instructions to take legal action in this respect as well.

    Yours faithfully,

    Sd. Jethanand

    Advocate.”

    3. Sri Swami Dayal, the learned counsel for the defendant-appellant, submitted that the requirement of the law is that the notice terminating the tenancy or to quit must be fair, unambiguous and unequivocal showing an absolute intention on the part of the landlord terminating the tenancy at the expiry of thirty days from the receipt of the notice and contended that the notice in question did not fulfill any of those requirements. The learned counsel characterized the notice as ambiguous, equivocal and showing an intention on the part of the land lord to continue the tenancy on an enhanced rent. On the evidence on the record it had been proved that the notice in question was duly served on the defendant on 30th December, 1959. Thus according to the notice the defendant was asked to quit and handover possession by the 29th of January, 1960. A question of some importance then arises that in the notice the defendant is asked to pay ‘rent and at this rate of Rs. 8/- from the 1st January, 1960, that is to say, during the period of the subsistance of the notice or notice period. It was urged that had the defendant on receipt of the said notice agreed to pay the rent at Rs. 8/- from the 1st January, 1960 no question would have arisen for his handing over possession to the plaintiff on 29th January, 1960. Indeed that seems to be the clear implication of what has been mentioned in the notice. What effect it would have on the validity of the notice as bringing about the termination of the tenancy under Sec. 106 of the Transfer of Property Act will presently be discussed. Sri S.K Dhaon the learned counsel for the plaintiff-respondent, submitted that on a true construction of the contents of the notice in question it would appear that it could be divided into two distinct and independent parts, the first part according to the learned counsel, unequivocally and clearly constitutes a notice to quit within the meaning of Sec. 111 of the Transfer of Property Act read with Sec. 106 of that Act, and the second part is nothing more than an offer to the defendant to enter into a fresh agreement with the plaintiffs and does not in any manner affect the earlier part. Reliance has been placed on the case of Ahearn v. Bellman L.R 4 Ex. Div. p. 201.

    4. In that case the notice to quit, which was under consideration, by its first part terminated the tenancy and called upon the tenant to quit by a certain date. In the second part the language used was as follows:—

    “And I hereby further give you notice that should you retain possession of the premises after the day before mentioned an annual rental of the premises now held by you from me will be 160 £, payable quarterly; in advance.”

    5. The learned Judges construed the notice as one explicitly and clearly terminating the tenancy. In regard to the second part, quoted by me above it was held that it was a separate and distinct notice not modifying the existing tenancy but offering a new one. On the same line is the decision in the case of Sheo Shanker Lal v. Babu Ram A.I.R 1921 Alld. p. 174. cited by the learned counsel. To my mind, in the instant case no assistance can be drawn from those decisions relied upon by the learned counsel for the defendant-appellant. The notice in question does not, as I construe it, by its second part make any offer to create a fresh tenancy after the termination of the earlier tenancy but clearly asks the tenant to modify the existing tenancy so far as the fate of rent was concerned. It would be seen that under the law the tenancy which was sought to be terminated by the notice in question could not stand terminated before the 29th January, 1960 and when the landlord intimated the tenant to note that after the 1st January, 1960 the rent of Rs. 8/- p.m would be payable—What he really intended was that there would be no end to the existing tenancy if the tenant agreed and was willing to pay Rs. 8/- per month as rent from 1st January, 1960. On a true reading of the contents of the notice in question the inference is inescapable that the real intention of the plaintiff was that in case the defendant was willing to pay Rs. 8/- per month from 1st January, 1960 as rent he was not to be disturbed. No doubt in the earlier part of the notice it is clearly mentioned that the tenant vacate the premises in his occupation on the expiry of thirtieth day of the receipt of that notice but on the principles of harmonious construction of documents and to avoid conflict the document should be read as a whole and the second part cold only be reconciled as showing an intention on the part of the plaintiffs to continue the tenancy without effecting its termination if the defendant agreed to pay. Rs. 8/- p.m as rent. The offer by the plaintiffs to the defendant to have the tenancy continued on the payment of Rs. 8/- per month cannot be construed as an offer for entering into a new contract of tenancy for the simple reason that by his acceptance of that offer on any day before the 29th January, 1960 the defendant as a tenant could continue the existing tenancy on a higher rent and avoid the consequences of handing over possession on the expiry of thirty days from the receipt of the notice as was intimated to him in the earlier part. In my view, the notice in question could be paraphrased as asking the defendant who is the tenant to pay Rs. 8/- per month as rent from 1st January, 1960 onwards, if he did not want to be visited with the consequence of the notice to quit contained in the earlier part. In the earlier part, therefore, the intention to terminate the tenancy was not unconditional but conditional which condition could be complied with by the defendant by agreeing to pay an enhanced rate of rent and avoiding termination of tenancy.

    6. Sri Dhaon further relied on a single Judge decision of this Court in the case of Jugla v. Har Narain Singh Vol. 19 I.C p. 758.. In that case following a decision of the Bombay High Court in the case of Kikabhai v. Kalu I.L.R 22 Bom. 241. it was held that merely because a landlord called upon the tenant to enter into an agreement to pay an enhanced rent failing which he would be asked to quit and actually under the terms of the notice he was asked to hand over possession by a certain date the notice terminating the tenancy within the meaning of Sec. 106 of the Transfer of Property Act was not rendered invalid. That was a case in which the decision turned on the peculiar terms of the notice. In the Bombay case of Kikabhai v. Kalu (supra) the learned Judge after construing the terms of the notice and holding it to be a valid notice observed at the end at p. 244 while taking notice of the observation of Garth, C.J in the case Mohamaya Goopta v. Nilamdhib Rai I.L.R 11 Cal. 533., that they did not think it necessary to decide whether the doubt expressed in Mohamaya Goopta's case was well founded or not. In the Calcutta case the alternative presented to the tenant continued to be presented to him until the date specified in the notice but in the case before the Bombay High Court the alternative ceased to be an alternative two days before the service of the notice where after the notice to quit left the tenant no other option than to deliver up possession on the day named. Thus it would be seen that the learned Judges of the Bombay High Court who decided the case of Kikabhai distinguished the observations of Garth, C.J in the case of Mohamaya Goopta v. Nilamdhib Rai (supra). In the Calcutta case a tenant by a notice served upon him by the landlord was called upon to pay rent at the enhanced rate from the commencement of the ensuing year or quit though the decision turned on some other material points, Garth, C.J observed at p. 538 that he had some doubts whether the notice to quit was a valid one and laid down that a notice to quit ought to be clear and unambiguous. My attention was drawn to certain other decisions of various courts also which I do not consider necessary to discuss in this judgment. Each one of the decisions cited fell in either of the two classes, namely, where a notice to quit contained a new offer of tenancy after the expiry of the earlier one or where the tenant was called upon to enter into a fresh agreement before the time under the notice to quit actually started running, i.e before the date of service. In either case it is an offer of a new tenancy and not an offer for continuance of the existing tenancy on modified terms. No case has been brought to my notice by Sri Dhaon holding a notice to quit valid in which during the notice period an alternative is offered and the tenant is given an option to comply with it. As I understand the law, the notice terminating the tenancy must be unconditional, unequivocal and clear, that is to say, a tenant whose tenancy is intended to be terminated and who is asked to quit has no power left to arrest the effect of it and a tenancy must stand terminated on the expiry of the notice period. But in a case where before the expiry of the notice period and before the tenancy actually comes to an end the tenant is offered some alternative or some condition on the compliance of which the existing tenancy continues even though on modified terms such a notice would not be unequivocal, unambiguous and clear notice to quit. For these reasons, I think that the contention of the learned counsel for the defendant appellant that the notice in question did not comply with the requirements of law and not an effective notice terminating the tenancy within the meaning of Sec. 106 of the Transfer of Property Act has great force and is worthy of being accepted. Disagreeing, therefore with the findings of the learned Judge of the lower appellate court that the notice in question was an effective notice terminating the tenancy within the meaning of Sec. 106 of the Transfer of Property Act and was valid, I hold that it is not an effective notice and does not meet the requirements of Sec. 106 of the Transfer of Property Act.

    7. The result is that this appeal partly succeeds. The decree of the court below is modified to the extent that the suit of the plaintiffs as far as the relief for ejectment of the defendant is concerned will stand dismissed. The decree for mesne profits is also set aside. The decree for arrears of rent shall Stand. The parties are directed to bear their own costs for this appeal.

    8. Appeal partly allowed.

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    Comments

    Chidda Ram v. Naru Mal And Another
    (Jul 8, 1964)