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citation codes
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  • S. 106 read with S. 111 of the T.P Act. Section 113
  • S. 25 of the Provincial Small Cause Courts Act
  • provisions of the U.P Act No. 13 of 1972
  • Section 113 of the T.P Act
  • U.P Act No. 13 of 1972
  • S. 113 of the T.P Act,
  • S. 116 of the T.P Act.
  • S. 106, T.P Act
  • S. 113 T.P Act.
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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Acts
  • S. 106 read with S. 111 of the T.P Act. Section 113
  • S. 25 of the Provincial Small Cause Courts Act
  • provisions of the U.P Act No. 13 of 1972
  • Section 113 of the T.P Act
  • U.P Act No. 13 of 1972
  • S. 113 of the T.P Act,
  • S. 116 of the T.P Act.
  • S. 106, T.P Act
  • S. 113 T.P Act.
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

This revision application under S. 25 of the Provincial Small Cause Courts Act challenged the judgment and decree dated 8-1-1997 of the District Judge, Mathura (exercising small causes powers) in SCC Suit No. 6 of 1994. Execution of the decree was kept suspended on an undertaking by the plaintiff-respondents until the date of this judgment.

The original suit sought eviction of the tenant-revisionists from premises in Mathura. The parties agreed that the defendants were month-to-month tenants paying Rs. 5,705 per month. The original tenancy ran for three years with a possible extension of up to three more years subject to a 15% rent enhancement; the extended period was to expire on 15-12-1993. Before expiry, on 20-7-1993, the plaintiffs served a notice demanding vacant possession after expiry of the extended tenancy. The defendants attempted to negotiate a fresh lease on terms of a 20% rent increase; negotiations failed. The plaintiffs alternatively relied on facts that the building was constructed in 1987 and that the U.P. Act No. 13 of 1972 did not apply to the landlord-tenant relationship here. A notice under S. 106 of the Transfer of Property Act was served (the opinion records a notice dated 30-8-1994) to terminate tenancy; replies were sent but possession was not surrendered.

The defendants contested the suit but did not deny tenancy or rent amount. They contended, among other things, that the lease extension ran until 15-11-1993 (as asserted by them), that the building's age might bring it within the scope of U.P. Act No. 13 of 1972, and that the plaintiffs' acceptance of rent after service of the termination notice amounted to waiver of the notice. The trial Court considered the applicability of the U.P. Act and whether the notice of termination was waived; it rejected the defendants' objections and decreed the eviction. This revision challenged the trial Court's judgment primarily on the ground of waiver.

Legal Issues Presented

  1. Whether acceptance by the landlord of rent (or sums tendered) after service of a notice to quit operates as a waiver of that notice under Section 113 of the Transfer of Property Act (T.P. Act).
  2. Whether Section 116 of the T.P. Act (effect of holding over and acceptance of rent) should be read as creating a fresh tenancy or precluding a finding of waiver under Section 113 in the circumstances of this case.
  3. Whether, on the facts presented (acceptance of sums under protest, issuance of receipts marked "under protest," subsequent written notice treating payments as damages for unlawful occupation, and immediate institution of suit), the trial Court was correct in holding that there was no waiver of the termination notice.

Arguments of the Parties

Revisionist/Defendants' Arguments (Appellants)

  • The defendants argued that after service of the notice of termination they continued to pay rent and the plaintiffs accepted that rent; such acceptance constituted a waiver of the notice to quit under the Transfer of Property Act.
  • They relied on statutory provisions and case-law indicating that acceptance of rent after determination of tenancy indicates an intention to treat the lease as subsisting (invoking S. 116 and the waiver principles in S. 113).
  • The defendants also asserted that the building's age might make the U.P. Act No. 13 of 1972 applicable (i.e., that the exclusion claimed by plaintiffs might not stand).

Respondents/Plaintiffs' Arguments

  • The plaintiffs contended that any sums accepted after the notice were accepted "under protest" and were intended as damages for unlawful occupation, not as acceptance of rent creating or continuing a tenancy.
  • The plaintiffs argued that mere acceptance of sums does not ipso facto amount to waiver; there must be evidence of intent to treat the lease as subsisting, as required by Section 113 T.P. Act.
  • They relied on supporting case-law and factual evidence (letter dated 15-2-1996, endorsements saying payments accepted under protest, and written receipts said to bear "under protest") to show lack of intention to waive the notice.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
AIR 1952 All 479 Where a landlord actively prosecutes eviction proceedings or appeals, mere acceptance of rent during that process will not be treated as waiver of the notice to quit. The court cited this decision to support the proposition that continued prosecution of an eviction claim can negate an inference of waiver from acceptance of sums tendered by the tenant.
AIR 1956 All 175 Under Section 113, waiver can be brought about by the landlord's actions if, after determining tenancy by notice, the landlord accepts rent; but if the landlord has instituted a suit on the basis of a valid notice, waiver will not arise. The court relied on this ruling to show that acceptance of rent does not automatically constitute waiver when the landlord has initiated eviction proceedings.
AIR 1966 All 623 A holding that acceptance of rent for the period subsequent to the notice to quit may be decisive of waiver — i.e., acceptance alone may be the material circumstance for determining whether the landlord intended the tenancy to subsist. The court treated this case as an exception to the other authorities; it noted that most other decisions reject a rule of automatic waiver from mere acceptance and considered AIR 1966 All 623 distinguishable or not controlling for the present facts.
Ram Krishna v. Jhooman Das (reported in ARC 1987 (1) p. 276 (as cited)) Mere acceptance of rent deposited by the tenant after expiry of the time given in the notice to quit does not necessarily lead to a conclusion of waiver when the landlord's intention remains clear and he has filed suit for eviction. The court referenced this authority to reinforce the view that filing suit and demonstrating an intention to evict can negate an inference of waiver despite acceptance of payments.
AIR 1972 All 435 — Smt. Sharda Sharma v. Smt. Gulab Devi Dhwon (as cited) Mere acceptance of sums tendered by the tenant during pendency of an eviction suit does not amount to waiver of the notice to quit. The court relied on this decision among others to hold that acceptance of payments under the circumstances (especially where accepted under protest and suit promptly instituted) did not amount to waiver.

Court's Reasoning and Analysis

The Court proceeded by: (1) identifying the relevant statutory provisions; (2) examining the factual record about payments accepted after the notice to quit; and (3) comparing the facts with relevant authorities on waiver under Section 113 of the Transfer of Property Act.

  1. Statutory frame:
    • The Court emphasised that eviction suits under the T.P. Act may be filed only after determination of tenancy by the notice required under S. 106 read with S. 111.
    • Section 113 defines waiver of such a notice: waiver requires express or implied consent shown by an act of the person giving it that indicates an intention to treat the lease as subsisting; mere tender and acceptance of sums, by themselves, are not automatically sufficient.
    • Section 116 (effect of holding over) was discussed by counsel: the revisionist urged that acceptance of rent after determination should be treated under S. 116 as creating a new tenancy; respondents argued that the question of waiver must be determined in terms of S. 113 and require evidence of intention to treat the lease as subsisting.
  2. Factual analysis:
    • The trial Court found that post-notice payments were made via cheque with an accompanying forwarding letter dated 17-10-1994; that document was produced from the custody of the plaintiff and bore an endorsement indicating the plaintiff accepted the sum "under protest."
    • PW-1 admitted that a third party (New India Assurance Company) deposited the sum due as rent and that he withdrew it; he admitted he had not informed the insurer that the withdrawal was as damages or accepted under protest but asserted that separate receipts were given. The receipts themselves were not produced at trial.
    • The plaintiffs had, by a later letter dated 15-2-1996, expressly stated that payments were accepted under protest without affecting their right to seek eviction and were accepted as damages for unlawful occupation.
    • The trial Court also noted the immediate institution of the suit after the termination notice (notice dated 30-8-1993 and suit instituted almost immediately thereafter), and evidence suggesting the building fetched a rent of about Rs. 5,000 per month, supporting entitlement to damages for unlawful occupation.
  3. Application of authorities and legal principle:
    • The Court surveyed case-law and concluded that except for one decision (AIR 1966 All 623), the consistent approach of the authorities is that mere acceptance of rent after notice to quit does not inevitably amount to waiver when other evidence shows the landlord did not intend to continue the tenancy (for example, by actively prosecuting eviction or by accepting payments expressly under protest).
    • The Court concluded that, on the facts, the plaintiffs' conduct (accepting payments under protest, subsequent written notice treating payments as damages, and prompt institution of suit) showed absence of intention to treat the lease as subsisting. Given Section 113's requirement that waiver must be demonstrated by acts showing such intention, the factual record did not establish waiver.

Holding and Implications

Holding: The revision application is dismissed; the judgment and decree of the trial Court are confirmed.

Implications:

  • Direct effect on the parties: The trial Court's ejectment decree stands. The Court directed that the defendants/tenants must vacate the premises within one month from the date of this judgment; if they do not, the decree for eviction may be put into execution.
  • The Court did not announce the creation of any new legal rule; it applied existing statutory interpretation (S. 113 and S. 116 of the T.P. Act) and precedents to the facts and confirmed the trial Court's factual finding that there was no waiver. The opinion therefore does not purport to set a novel precedent beyond applying established principles to the case facts.

Disposition: Petition dismissed.

    New India Assurance Company Limited And Others v. Ghanshyam Das And Others

    1. This revision application under S. 25 of the Provincial Small Cause Courts Act is directed against the judgment and decree D/- 8-1-1997 recorded by the District Judge, Mathura, exercising small causes powers in SCC Suit No. 6 of 1994. On an undertaking by the plaintiff-respondents the execution of the decree has been kept suspended till the date of judgment.

    2. The suit was filed for eviction of the tenant-revisionists from the suit premises situated in the city of Mathura. The defendants had admittedly been tenants on month to month basis in the suit premises on a rate of rent of Rs. 5,705/- per month. Initially the tenancy was created for a period of three years with stipulation for extension of the period up to 3 years more subject to enhancement of rent by 15 per cent. The extended period of tenancy was to expire on 15th Dec. 1993. Before the aforesaid date of expiry, the plaintiff served a notice on the defendants on 20-7-1993 demanding vacant possession of the suit premises after expiry of extended period of tenancy. On receipt of the notice, the defendants started negotiating for taking the building on a fresh lease on 20 percent enhancement of the rate of rent for a further period of five years. The negotiations, however, failed. The building was constructed, according to the plaintiff, in the year 1987, the rate of rent was more than Rs. 2000/- per month and the provisions of the U.P Act No. 13 of 1972 were not applicable for any matter relating to the landlord tenant relationship. A notice under S. 106, T.P Act was sent to the tenants on 30th Aug. 1994, for terminating their tenancy. Replies were sent to such notice but possession was not made over.

    3. The suit was contested by the defendants. The tenancy was not denied nor was the rate of rent. It was asserted that the original period of lease was extended up to 15th Nov. 1993. It was asserted, however, that the building was constructed for more than 50 years back and on that score exclusion of operation of the U.P Act No. 13 of 1972 could pot have been claimed. The defendants highlighted the fact that even after the receipt of the notice of termination of tenancy, the defendants had made over the rent of the building to the plaintiff who had accepted the same and this acceptance was under the law a waiver of the notice of determination of the tenancy. The suit was filed, according to the defendant-appellant, only with a view to enhance the rent of the building.

    4. The trial Court considered the question of applicability of the U.P Act No. 13 of 1972 to the present set of facts and also took up into consideration the question whether the notice of determination of tenancy was served by any action of the plaintiffs. He negatived both the objections and had decreed the suit.

    5. The revision was pressed basically on the question of waiver only. The learned counsels submitted case-laws in support of the arguments. Reliance was further placed on the statement of the plaintiff to show that rent was accepted even after service of the termination of notice. Reference was made to deposition of PW-1, a copy of which was placed before me. This P.W admitted in paragraph 6 of his cross-examination that New India Assurance Company had deposited the sum due as rent and he had withdrawn the same. He admitted that he did not intimate the New India Assurance that the same was being withdrawn as damages for unlawful occupation, or it, was accepted under protest. He, however, asserted that he had given a separate receipt for such sum.

    6. A reading of the judgment of the trial Court indicates that it had engaged itself to the fact and the law on the question of waiver of the notice. The rent after the date of notice was paid through a cheque accompanied by a forwarding letter D/- 17-10-1994. This paper was produced from that custody of the plaintiff and formal proof thereof was waived. On this paper there has been an endorsement of the plaintiff that it was accepted under protest. The trial Court, however, held that the paper came from the custody of the plaintiff only and it was statement of the plaintiff and he could not have relied on his own admission. But the on his own admission, a letter from plaintiff D/- 15-2-1996 where by the plaintiffs intimated that all the sum received by them were under protest without affecting their right to seek eviction of the tenants and the sums were accepted as damages for unlawful occupation of the defendants of, the suit premises. The trial Court relied on the statement of the D.W 1 to the effect that after the service of the notice for determination of tenancy the plaintiffs accepted the rent but started writing that rent was being accepted under protest. The plaintiff asserted in his statement that whenever any payment was made, a written receipt was given to the defendants, with endorsement of “under protest.” Such receipts were not produced in the Court. The trial Court discussed the case-law cited before it and was of the view that there was no intention on the part of the plaintiff to waive the notice by simple acceptance of rent under protest.

    7. The suit for eviction of a tenant, under the T.P Act, may be filed only after determination of the tenancy by a notice as required under S. 106 read with S. 111 of the T.P Act. Section 113 deals with waiver of notice to quit. Under this section a notice given under S. 111(h) is waived, with the express or implied consent of the parties, to whom is given by any act of the person giving it showing an intention of treating the lease as subsisting. An illustration under this section gives a case where A. the lessor, gives B. the lessee notice to quit the properly leased. The notice expires. B tenders and A accepts the rent which has become due in respect of the property since the expiration of the notice. The notice is waived. Reference was also made to S. 116 of the T.P Act. It deals with effect of holding over and states that if a lessee or under-lessee of a properly remains in possession thereof after the determination of the lease granted to the lessee and the lessor or his legal representative accepts rent from the lessee or under-lessee or otherwise assents to his continuing in possession, the lease is in the absence of an agreement to the contrary renewed. The learned counsel for the revisionist relied on S. 116 to say that even after the notice of termination the defendants continued to possess the building under tenancy and there was acceptance of rent on behalf of the plaintiffs and as such, a new tenancy must be deemed to have been created. The learned counsel for the respondents however, stated that for waiver of notice to quit. S. 116 would not be read and the question of waiver would be determined only in terms of S. 113 T.P Act. It was contended that the action on the part of the plaintiff must show his intention to treat the lease as subsisting. Unless that intention could be inferred from his conduct, the notice may not be deemed to have been waived.

    8. The case-laws on this point as were referred now be looked into. On the question of waiver of notice, the Lucknow Bench of the Allahabad High Court in the case reported in AIR 1952 All 479 that if the landlord actively continue the prosecution of the case or appeal with regard to ejectment of the tenant, the mere acceptance of rent by him cannot be treated as waiver so as to deprive him of the right of ejectment in pursuance to the decree which he had obtained. Here was a case where a landlord had initiated a suit for eviction of a tenant. The suit was decreed by the trial Court and the appeal of the tenant was also dismissed by the first appellate Court and the matter came up in second appeal before the High Court, it was contended by the defendants that the landlord had accepted the rent during the continuance of the appeal. The execution proceedings were stayed by an order passed in the second appeal. The landlord was entitled to receive compensation for use and occupation of the house during that period. He had received the sum month to month. He might have even used the term rent in some of the receipts which he had issued but having regard to the fact that the persons issuing those receipts did not have a legal training and might have used lie word ‘rent’ instead of ‘damages.’ not much importance could be given to the use of the term rent. The Court found that if the landlord actively continued the prosecution of his case or the appeal with regard to the ejectment, mere acceptance of rent would not be treated as waiver of the notice.

    9. In the case reported in. AIR 1956 All 175 again, a question had arisen concerning waiver of a notice. In explaining S. 113 of the T.P Act, the Hon'ble Judge of the Lucknow Bench of this High Court held that a waiver under S. 113 can be brought about by the action of the landlord if after determining the tenancy by notice, the landlord had chosen to accept rent again from the tenant. In such an event, under S. 113 a notice for determining a tenancy given by the landlord to the tenant, would be deemed to have been waived. No question of waiver, however, would arise if the landlord had brought a suit on the basis of valid notice given for determination of the lease. If such a suit had been brought, there could be no waiver though it was always open for the landlord to renew the lease any time he liked.

    10. The case reported in AIR 1966 All 623, also deal with the question of waiver of notice. It was a suit for ejectment after service of notice to quit. Rent for the period subsequent to the notice was accepted and a question arose whether such acceptance, whether prior or subsequent to the institution of the suit, would amount to waiver of the notice. The Court was of the view that once it was found that the rent for a period subsequent to the notice to quit was accepted the plaintiff-landlord, it was that circumstance alone which had taken into consideration for finding out whether by such acceptance of rent the plaintiff intended that the relationship of landlord and tenant should subsist between the parties. It was held herein that whether there was any agreement after the termination of the tenancy or whether the plaintiff diligently prosecuted his suit were not material. The only material point was whether there was acceptance of rent by the plaintiff for period subsequent to the notice to quit. The Court had in this case allowed the appeal of the defendant in this case holding that in the circumstances of the case the notice stood waived.

    11. A similar question arose in the case of Ram Krishna v. Jhooman Das as decided by this High Court in the case reported in ARC 1987 (1) at page 276 (Sic). The Court observed in this case that mere fact that the landlord accepted the rent deposited by the tenant after expiry of 30 days, time given in the notice to quit, could not lead to a conclusion of waiver when his intention was clear and he had filed a suit for eviction.

    12. A similar view was taken by the Allahabad High Court earlier also in the case of Smt. Sharda Sharma… v. Smt. Gulab Devi Dhwon…. as reported in AIR 1972 All 435. The Court was of the view in this case that mere acceptance of the sums tendered by the tenant by the landlord during pendency of the suit for objectment did not amount to waiver.

    13. Barring the case reported in AIR 1966 All 623, all the other decisions are unanimous on the point that mere acceptance of rent after notice to quit would not amount to waiver of a notice. Section 113 of the T.P Act clearly requires that a notice given under S. 111 is waived with the express or implied consent of the person to whom it is given by any act on the part of the person giving it. Showing an intention to treat the lease as subsisting. Here tender was made of the sum by the tenant. The plaintiff accepted the sum but to constitute waiver under S. 113 of the T.P Act, mere tender and acceptance were not sufficient. These two actions should have shown an intention on the part of the landlord to treat the lease as subsisting. Looked from this angle, the decisions relied upon by the respondents appear to be more relevant. Whenever there is acceptance by the landlord of any sum tendered by the tenant as rent, the Court is obliged to look to such acceptance in the light of the last requirement of S. 113 as to whether this acceptance had shown an intention on the part of the landlord to treat the lease as subsisting.

    14. The trial Court found from a discussion of the evidence led before it that the defendant were tendering the sum through the cheques and the plaintiff asserted that the receipt were given to show that those were accepted under protest. The defendants had admitted that the plaintiffs had accepted such sums under protest. In fact, by a subsequent notice, the plaintiffs its had also informed the defendants in writing that all such earlier payments were accepted on protest and towards damages for unlawful occupation of the premises and not towards the rent. The tenancy was terminated by a notice D/- 30-8-1993 and the suit was instituted almost immediately thereafter. There are materials to indical that the building in question was fetching a rent of Rs. 5000/- and odd and the plaintiff was entitled to receive damages for unlawful occupation at least at the rate of monthly rent. The immediate institution of the suit and acceptance of the sums tendered by the defendants under protest which fact was not denied by the defendants (as indicated in trial Court judgment) and the subsequent notice in writing that the sums were accepted as damages makes it clear that it was not a case where the plaintiffs had intended to continue the tenancy. It could not be treated as a creation of a new tenancy as well as what was accepted was by way of damages only as found on facts by the trial Court. In conformity with the case-laws relied upon by the learned counsel for the respondents. I am of the view that mere acceptance of the sums in the circumstances of the present case did not amount to a wiver of the notice as the circumstances clearly indicated absence on the part of the plaintiffs any intention of continuing the tenancy. The judgment of the trial Court may not therefore, be assailed on this ground.

    15. This was the only ground on which the judgment was challenged. That ground having failed, the present revision application also fails and is dismissed. The judgment and the decree of the trial Court stand confirmed. However, keeping in view that the defendants are running an important office in the suit premises and their immediate eviction may lead to difficulties, it is directed that within a month from the dale this judgment the defendants/tenants are to vacate the premises, failing which the decree for eviction may be put to execution.

    16. Petition dismissed.

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    New India Assurance Company Limited And Others v. Ghanshyam Das And Others
    (May 2, 1997)