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  • s. 106 of the Transfer of Property Act. This sub-section
  • s. 12, sub-s. (3)(a) of Bombay Act No. LVII of 1947
  • s. 12, sub-s. (3)(a). 8. Sub-section (3)(a) of s. 12
  • sub-s. (3) of s. 12. Sub-section (3)(a) of s. 12
  • s. 12, sub-s. (3)(a). Section 12, sub-s. (3)(b)
  • s. 12, sub-s. (1).7. Section 12, sub-s, (2),
  • s. 51 of the Indian Income-tax Act,
  • s. 49 of he Indian Insolvency Act.
  • s. 59 of the Indian stamp Act
  • shall.3. Section 12, sub-s. (3)(a)
  • section, section 12, sub-s. (1)
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • s. 106 of the Transfer of Property Act. This sub-section
  • s. 12, sub-s. (3)(a) of Bombay Act No. LVII of 1947
  • s. 12, sub-s. (3)(a). 8. Sub-section (3)(a) of s. 12
  • sub-s. (3) of s. 12. Sub-section (3)(a) of s. 12
  • s. 12, sub-s. (3)(a). Section 12, sub-s. (3)(b)
  • s. 12, sub-s. (1).7. Section 12, sub-s, (2),
  • s. 51 of the Indian Income-tax Act,
  • s. 49 of he Indian Insolvency Act.
  • s. 59 of the Indian stamp Act
  • shall.3. Section 12, sub-s. (3)(a)
  • section, section 12, sub-s. (1)
Smart Summary

Summary of the Opinion (Gajendragadkar, J.)

Factual and Procedural Background

The matter is a civil revision application concerning the interpretation of the word "may" in s. 12, sub-s. (3)(a) of Bombay Act No. LVII of 1947. The petitioner was the tenant of the premises in suit and the opponents were the landlords. On May 3, 1954 the opponents served a notice calling upon the petitioner to vacate on two grounds: (a) arrears of rent and (b) bona fide requirement of the premises by the opponents for their personal use. The petitioner disputed the bona fide need allegation, contended he was ready and willing to pay rent, and challenged the validity of the notice.

The trial Judge found the notice valid, rejected the landlords' plea of bona fide need, and held that the petitioner was ready and willing to pay the standard rent; on that basis he refused to pass a decree for ejectment. During the litigation the petitioner paid or deposited amounts: Rs. 125 on August 28, 1954; Rs. 135 deposited in Court on August 24, 1955 (at which time he was not in arrears); and Rs. 147 on November 8, 1955. The trial Judge considered these payments and refused ejectment.

The opponents appealed. The lower appellate Court (District Judge) set aside the trial Judge's decree and decreed the opponents' suit, construing s. 12(3)(a) to mean that where its conditions are satisfied the Court is bound to pass a decree for eviction—i.e., that the word "may" in that sub-section means "shall." The petitioner (through Miss Jagtiani) sought revision, arguing that "may" is permissive and gives the Court discretion not to pass a decree even where the sub-section's conditions are satisfied.

Legal Issues Presented

  1. Whether the word "may" in s. 12, sub-s. (3)(a) of Bombay Act No. LVII of 1947 means "shall" (i.e., imposes an obligation to pass a decree for eviction when the sub-section's conditions are satisfied) or whether it is permissive and gives the Court discretion not to pass such a decree.
  2. Whether, in cases where the requirements of s. 12(3)(a) are satisfied (rent arrears of six months or more and failure to pay within one month after notice), the Court may, on equitable grounds, refuse to pass a decree for eviction.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner denied the opponents' claim of bona fide personal requirement of the premises.
  • The petitioner asserted he was ready and willing to pay the rent.
  • It was urged that the notice given by the opponents was invalid (the petitioner disputed the validity of the notice).
  • Before the revisional Court (through Miss Jagtiani) it was contended that the word "may" in s. 12(3)(a) is used in its usual enabling/permissive sense, giving the Court discretion either to pass a decree for ejectment or not; it would be unfair and unreasonable to construe "may" as introducing compulsion meaning "shall."

Opponents' (Landlords') Arguments

  • The opponents alleged the petitioner was in arrears of rent (specifically from October 1, 1952 to July 1, 1954) and had not paid arrears within one month from the date of the notice.
  • The opponents argued that under s. 12(3)(a), which came into force on March 31, 1954, it was the duty of the trial Court to pass a decree for ejectment whenever the conditions of that sub-section were satisfied; the Court had no jurisdiction to grant relief against eviction on equitable considerations in such cases.
  • This argument was accepted by the lower appellate Court, which construed "may" as "shall" and granted ejectment.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Alcock Ashdown & Co. v. Chief Revenue Authority, Bombay (1923) 25 Bom. L.R. 920, P.C. Illustrates that when a power or capacity is given to a public authority, circumstances may couple the power with a duty; thus the word "may" can, in context, impose an obligation to act. Used as authority for the proposition that although the Legislature used "may", the surrounding statutory scheme can impose a duty so that "may" effectively means "must" in the relevant context.
Julius v. Lord Bishop of Oxford (1880) 6 App. Cas. 214 Explains that "may" can be coupled with a duty depending on the nature of the power, the object, conditions, or the persons for whose benefit the power exists. Quoted and relied upon to support the general principle that "may" does not always mean permissive; context can make it mandatory.
Hookamchand v. Nowroji (1907) 10 Bom. L.R. 340 Example where the word "may" occurring in s. 49 of the Indian Insolvency Act was construed to have mandatory effect. Cited as part of the line of authorities demonstrating judicial construction of "may" to mean "shall" in appropriate statutory contexts.
Chief Controller Revenue Authority v. Maharashtra Sugar Mills (1947) 49 Bom. L.R. 893 Demonstrates that the word "may" in s. 59 of the Indian Stamp Act was construed to mean "shall" by Chagla Acting C.J. and Bhagwati J. Relied upon to show precedent within the same Act (Bombay reports) where "may" has been construed as obligatory.
Mathuradas v. Nathubhai and Ismail Dado Bhamani v. Bai Zuleikhabai Authority for the proposition that the material time for assessing whether a tenant is "ready and willing to pay" is the date of the suit. Applied to conclude the trial Judge's finding that the tenant was ready and willing to pay was erroneous because the readiness/willingness must be judged as of the date of the suit.

Court's Reasoning and Analysis

The Court framed the central interpretive question as whether the statutory word "may" in s. 12(3)(a) is permissive (conferring discretion) or compulsory (requiring the Court to pass a decree for eviction when the sub-section's conditions are satisfied). The Court proceeded in the following analytical steps:

  1. General principle: The Court first reviewed the established canons of construction that, although "may" is usually enabling and permissive, in some contexts it may mean "must" or "shall" where the statute's scheme, the nature of the power, or other circumstances indicate the conferral of a duty. The opinion relied on established authorities (e.g., Julius v. Lord Bishop of Oxford, Alcock Ashdown, Hookamchand, Chief Controller Revenue Authority v. Mah. Sugar Mills) to state this principle.
  2. Statutory scheme of s.12: The Court examined the scheme of section 12 of the Bombay Act:
    • s.12(1) provides that a landlord is not entitled to recovery of possession so long as the tenant pays, or is ready and willing to pay, the standard rent and permitted increases and observes other conditions of tenancy; the Court emphasized that "ready and willing to pay" is to be judged at the date of the suit (citing Mathuradas and related authorities).
    • s.12(2) requires notice and gives the tenant a one-month opportunity to pay after service of the notice before a suit for recovery of possession can be instituted.
    • Historically, s.12(3) (as originally enacted) gave a further safeguard allowing payment or tender at the hearing to avoid eviction; this had been judicially read to extend to appellate proceedings.
    • As amended, s.12(3) is divided into (a) and (b): (3)(a) applies where rent payable by month is in arrears for six months or more and not paid within one month after notice; it states the Court "may" pass a decree for eviction. Sub-s. (3)(b) deals with arrears for less than six months and sets out a conditional opportunity to pay on the first day of hearing or a date fixed by the Court, failing which a decree may follow.
  3. Contextual and purposive construction: The Court analysed the legislative purpose of the 1954 amendment creating sub-s. (3)(a). It observed that the legislature had afforded protections (s.12(1) and s.12(2) and the amended sub-s. (3)(b)) to tenants who were not in long arrears, but where a tenant is in arrears for six months or more and refuses to avail himself of the one-month opportunity after notice, the legislature appears to have intended that such tenants be disentitled to further protection. Thus, in that context, "may" reasonably must be read as imposing an obligation to pass a decree for eviction.
  4. Practical and legislative-consistency argument: The Court reasoned that if "may" in s.12(3)(a) retained only its permissive meaning, then the amendment would have been unnecessary because courts already had discretion; the very fact of amendment indicates intent to remove discretion for long-arrears cases. The Court also pointed to other sections (e.g., s.11) where "may" within the same Act is used in an obligatory sense, reinforcing the interpretation that "may" in s.12(3)(a) should be read as "shall."
  5. Conclusion of construction: Applying the above principles and precedents, and having regard to the statutory scheme, the Court concluded that the word "may" in s.12(3)(a) introduces an element of compulsion and, in effect, means "must" or "shall" where the sub-section's conditions are fulfilled.
  6. Application to the facts: The Court found that the trial Judge's factual finding that the tenant was ready and willing to pay was erroneous because readiness and willingness must be assessed at the date of the suit and, on that basis, the protections of s.12(1) did not apply. Given the statutory construction that s.12(3)(a) is mandatory when its requisites are satisfied, the Court upheld the lower appellate Court's construction and decision ordering ejectment.

Holding and Implications

Core Ruling: Application dismissed and rule discharged.

The court held that, in the context of s. 12, sub-s. (3)(a) of the Bombay Act No. LVII of 1947, the word "may" is to be construed as imposing an obligation (i.e., it effectively means "must" or "shall") where the sub-section's conditions (rent payable by month, no dispute as to standard rent, arrears for six months or more, and failure to make payment within one month after notice) are satisfied. Accordingly, the lower appellate Court's construction that the trial Court had no discretion to refuse ejectment in such cases was upheld.

Direct consequences for the parties: The revisional application by the petitioner failed; the rule was discharged and there was no order as to costs. The lower appellate Court's decree in favour of the opponents (landlords)—setting aside the trial Court's refusal to decree ejectment—stands, resulting in a decree for ejectment in favour of the opponents under the construction of s.12(3)(a).

Broader implications: The opinion explains and applies the principle that "may" can mean "shall" in a particular statutory context, but the court does not expressly discuss any broader or novel precedent beyond this statutory construction. No separate wider policy or rule beyond the statutory interpretation set out above is discussed in the opinion.

    Kurban Hussen Sajauddin Belgaumwalla v. Ratikant Nilkant Zanker

    Gajendragadkar, J.:— The short question of law which arises for our decision in the present civil revision application is whether the word “may” used in s. 12, sub-s. (3)(a) of Bombay Act No. LVII of 1947 means “shall”, or whether it is used in its usual enabling sense and it gives discretion to the Court either to pass a decree for eviction or not. This question arises in this way. The petitioner is the tenant of the premises in suit. Notice was given by the opponents to the petitioner on May 3, 1954, calling upon him to vacate the premises on two grounds. It was alleged that the petitioner was in arrears as to rent and that the opponents wanted the premises bona fide for their own personal use. The petitioner denied the opponents case that the opponents needed the premises bona fide for their personal use, and it was urged on his behalf that he was ready and willing to pay the rent. The petitioner also disputed the validity of the notice given by the opponents. The learned trial Judge found that the notice given by the opponents was valid., He also held that the petitioner was ready and willing to pay the standard rent. The plea made by the opponents that they needed the premises bona fide for their personal use was rejected by the learned trial Judge. In the result, the learned trial Judge held that a decree for ejectment could not be passed against the petitioner.

    2. It appears that the petitioner paid to the opponents Rs. 125 on. August 28, 1954, and he deposited in the trial Court a further amount of Rs. 135 on August 24, 1955. When this deposit was made the petitioner was not in arrears as to rent at all. During the course of the trial the petitioner deposited another amount of Rs. 147 on November 8, 1955. The learned trial Judge took into consideration these payments and held that the opponents were not entitled to eject the petitioner. The opponents referred an appeal against this decree and it was urged on their behalf before the lower appellate Court that on facts admitted there was no discretion in the learned trial Judge to refuse to pass a decree for ejectment in favour of the landlords. It is not disputed that the petitioner was in arrears in respect of the payment of rent from October 1, 1952, to July 1, 1954. It is also common ground that the petitioner did not pay up the arrears within one month from the date of the notice given to him by the opponents. The opponents' argument was that under s. 12, sub-s. (3)(a), which has come into force on March 31, 1954, it was the duty of the learned trial Judge to pass a decree for ejectment against the tenant, and that there was no jurisdiction in the Court to grant relief against eviction to the tenant on equitable considerations. This argument has been accepted by the learned District Judge. He has held that when s. 12(3)(a) provides that, in cases falling under the said sub-section, the Court “may” pass a decree for eviction, Legislature really means that the Court “shall” pass a decree for eviction. On this construction of s. 12(3)(a) the lower appellate Court has set aside the decree passed by the learned trial Judge and has decreed the opponents' suit. The only point which Miss Jagtiani has raised before us in the present revisional application is that the lower appellate Court has not property construed s. 12, sub-s. (3)(a). Her argument is that the word “may” used in the sub-section is used in its usual enabling sense and that it gives discretion to the Court either to pass a decree for ejectment or not. According to Miss Jagtiani, it would not be fair or reasonable to hold that in the context of s. 12(3)(a) the word “may” introduces an element of compulsion and means in effect “shall.”

    3. Section 12, sub-s. (3)(a) provides that, where the rent is payable by the month an there is no dispute regarding the amount of standard rent or permitted increases if such rent or increases are in arrears for a period of six months or more and the tenant neglects to make payment thereof until the expiration of the period of one month after notice referred to in sub-s. (2), the Court may pass a decree for eviction in any such suit for recovery of possession. There is no dispute that this sub-section applies to the present proceedings and that the requirements of this sub-section are otherwise satisfied. If the requirements of this sub-section are satisfied, is it open to the Court, acting on equitable consideration, to hold that a decree for eviction would not, and should not, be passed, or is the Court bound to pass a decree for eviction as soon as it is satisfied that the requirements of this sub-section have been complied with? The question as to whether “may” in some cases can mean “must” has been con-sidered by judicial decisions on several occasions. Usually the word “may” is an enabling word it gives discretion to the person who is given the option to act in a particular manner mentioned in the section. But it is well recognised that the word “may” in the context can mean “shall”. If statutes authorise, any specified persons to do acts for the benefit of others, the authority conferred is coupled with an obligation to discharge a duty by the statutes themselves; and, in such a case, though the word used by the Legislature may be “may”; the intention is to impose an obligation upon the authority to discharge his duty, with the result that the word “may” in the context means “must” or “shall”. Whether the authorised person is given a discretion or is under a compulsion or obligation to do a particular act would inevitably depend upon the context in which the word “may” has been used, the scheme of the statute wherein the section using the word “may” occurs, and such other relevant, considerations. As Lord Phillimore has observed in Alcock Ashdown & Co. v. Chief Revenue Authority, Bombay . 1923 25 Bom. L.R 920, P.C (p. 927):

    “…when a capacity or power is given to a public authority, there may be circumstance which couple with the power a duty to exercise it,”

    4. In dealing with the denotation of the word “may”, the observations of Lord Cairns in the case of Julius v. Lord Bishop of Oxford . 1880 6 App. Cas. 214. are always cited with approval (p. 222):

    “…there may be something in the nature of the thing empowered to be done”, observed Lord Cairns, “something in the object for which it is to be done, something in the conditions under which it is to be done, something in the title of the person or persons for whose benefit the power is to be exercised, which may couple the power with a duty, and make it the duty of the arson in whom the power is reposed, to exercise that power when called upon to do so,”

    5. In the case of Alcock Ashdown & Co. Ltd., their Lordships of the Privy Council are considering the effect of the word “may” used in s. 51 of the Indian Income-tax Act, which provided that the Chief Revenue Authority may, either on its ??? motion or on reference from any revenue officer subordinate to it, draw up a statement of the case, and refer it, with its opinion thereon, to the High Court, it was held that, though the word used was “may”, having regard to the scheme of the Act and the other relevant facts to which I have just referred, when the other conditions of s. 51(1) were satisfied, it was the duty of the Chief Revenue Officer to make the reference. In Hookamchand v. Nowroji . 1907 10 Bom. L.R 340. Mr. Justice Beaman has similarly construed the word “may” occurring in s. 49 of he Indian Insolvency Act. Similarly, the word “may” used in s. 59 of the Indian stamp Act has been construed, to mean “shall” by Chagla Acting C.J, and Bhagwati J. in Chief Contr. Rev. Auth. v. Mah. Sugar Mills . 1947 49 Bom. L.R 893..

    6. We must, therefore, proceed to consider whether the context in which the word “may” has been used in s. 12, sub-s. (3)(a), and the other relevant considerations justify the view taken by the lower appellate Court that the word “may” in the ??? sub-section means “shall”. Section 12 deals with claims which may be made by landlords against their tenants for ejectment of the tenants. It would be pessary to consider the scheme of this section. It would also be necessary to take to account the amendments made in the material sub-sections of this section, section 12, sub-s. (1) provides that a landlord shall not be entitled to the recovery of possession of any premises so long as the tenant pays, or is ready and willing to pay amount of the standard rent and permitted increases, if any, and observes and performs the other conditions of the tenancy, in so far as they are consistent with the provisions of this Act. In other words, unless this sub-section is satisfied, no claim for ejectment can be made. It has been urged before us by Miss Jagtiani that the learned trial Judge has found in favour of the petitioner that he was ready and willing to pay the rent and there is no allegation that the tenant has not complied with or observed the other conditions of tenancy. That, no doubt, is true. But the finding of the learned trial Judge that the tenant was ready and willing to pay the rent is patently erroneous. When s. 12, sub-s. (1) refers to the readiness and willingness of the tenant to pay, it refers to the readiness and willingness at the date of the suit. It is true that the verbs “pays, or is ready and willing to pay” are used in the present tense; but it is well settled that the material time by reference to which this test has to be judged is the date of the suit (vide Mathuradas v. Nathubhai and Ismail Dado Bhamani v. Bai Zuleikhabai). Applying this test, it is clear that at the date of the suit the petitioner had not paid the rent and was not ready and willing to pay the rent either. Therefore, it would not be possible to accept the argument that the opponents claim for ejectment against the petitioner is barred under s. 12, sub-s. (1).

    7. Section 12, sub-s, (2), provides another safeguard in favour of the tenant. Under this sub-section, no suit for the recovery of possession shall be instituted by the landlord against a tenant on the ground of non-payment of standard rent or permitted increases due, until the expiration of one month next after notice in writing of the demand of the standard rent or permitted increases has been served upon the tenant in the manner provided in s. 106 of the Transfer of Property Act. This sub-section prima facie appears to give the tenant a further opportunity to pay the rent within one month from the date of receipt of the notice. If that be so, in case the tenant fails to avail himself of this benefit, then the landlord is entitled to ask for his ejectment and the matter would then fall to be governed by the subsequent sub-sections of s. 12. As it originally stood, sub-s. (3) of s. 12 had provided that no decree for eviction shall be passed in any such suit if, at the hearing of such suit, the tenant pays or tenders in Court the standard rent or permitted increases then due together with costs of the suit. This sub-section provided one more safeguard in the interests the tenant. If the tenant paid or tendered in Court the rent due at the hearing of the suit, a decree for his eviction would not be passed. It is a matter of history that this sub-section was construed by this Court as giving an opportunity to the tenant to pay or tender rent even at the appellate stage. It was held that an appeal in law amounts to a re-hearing of the suit and is a continuation of the suit and relief was given to the tenants against ejectment if the tenants paid or tendered the amount due up to date even in the appellate Court. It was presumably because ??? this interpretation of s. 12, sub-s. (3), that Legislature thought of making suitable amendments in the structure of s. 12 itself. We have now two sub-divisions in sub-s. (3) of s. 12. Sub-section (3)(a) of s. 12 is the sub-section with which we are concerned in the present revisional application and I have already cited it. Sub-s. (3)(b) deals with cases not falling under sub-s. (3)(a) and it provides that ??? decree for eviction shall be passed in any such suit if, on the first day of hearing the suit or on or before such other date as the Court may fix, the tenant pays tenders in Court the standard rent and permitted increases then due and thereof continues to pay or tender in Court regularly such rent and permitted increases ??? the suit is finally decided and also pays costs of the suit as directed by the Court. It would be noticed that for the expression “at the hearing of the suit” Legislature has introduced different expressions in this sub-section by the amendment. ??? payment in question has to be made “on the first day of hearing of the suit or on before such other date as the Court may fix”. If the payment is made during the period, then a decree for ejectment would not be passed. It is thus clear that ??? cases falling under s. 12, sub-s. (3)(b), a decree for ejectment cannot be passed if ??? other requirements of this sub-section are satisfied. It is in the light of this provision that we must go back to s. 12, sub-s. (3)(a).

    8. Sub-section (3)(a) of s. 12 deals with cases of tenants who are in arrears as to payment of rent for a period of six months or more and who fail or neglect to make payment of the rent in question until the expiration of the period of one month after notice as mentioned in sub-s. (2) of s. 12. Legislature has used the word “may” while dealing with cases of tenants who are in arrears for a long period and who fail or neglect to make payment of rent due within a month after receiving notice in that behalf from the landlord. In our opinion, it is clear that the scheme of s. 12 indicates that, in regard to tenants who are in arrears for a long period and who refuse to pay the rent even within a month after receiving notice, a decree for ejectment shall follow as a matter of course. Cases where there is a dispute about the standard rent or permitted increases are covered by the explanation to s. 12. In such cases, the tenant is required to make an application to the Court in the manner and within the period mentioned in the explanation for fixation of standard rent; so that these cases do not fall within the purview of s. 12, sub-s. (3)(a). Section 12, sub-s. (3)(b) naturally deals with cases where the rent due from the tenant is for a period less than six months.

    9. In respect of such cases Legislature has provided that no decree for ejectment shall be passed provided the payment of rent is made as provided in the sub-section. Having given adequate protection to tenants who are not in arrears, for such a long period as six months, Legislature appears to have taken the view that where tenants are in arrears for such a long period as-six months, if the tenants do not take steps to pay the rent within one month after receiving notice from the landlord, they are not entitled to any farther protection and the landlord would be entitled to obtain a decree as a matter of right. That is why we are inclined to take the view that, in the contest in which the word “may” is used in s. 12, sub-s. (3)(a), it must be held that the said word introduces an element of obligation or compulsion and in effect means “must” or “shall”. If the word “may” in s. 12(3)(a) is held to have its usual permissive meaning, it would really be difficult to understand why it was thought necessary to introduce this sub-section by an amendment at all. Even without this sub-section the Courts would have acted in their discretion; Courts would have passed a decree for ejectment in some cases and would have refused to pass a similar decree in other cases, having regard to relevant facts and circumstances. It is because Legislature thought that failure to pay rent for six months or more and refusal to comply with the demand for the payment of rent within a month after receiving notice disentitled the tenant from any protection against ejectment that s. 12, sub-s. (3)(a), has been introduced by the Legislature by way of amendment in 1954. That the word “may” has been used by the Legislature in the same Act in the sense of “must” or “shall” would be clear if we were to look at s. 11 of the Act. This section deals with the fixation of standard rent and permitted increases in certain cases and it provides that, in any of the cases mentioned therein, the Court may fix the standard rent or permitted increases. It would be impossible to hold that the word “may” in this section is used in its permissive sense and does not mean “shall” or “must”. In our opinion, s. 12, sub-s. (3)(a), similarly uses the word “may” in its compulsory, obligatory sense and should be taken to mean “shall” or “must”. That is the view which the learned District judge has taken and we see no reason to differ from this view.

    10. In the result, the application fails and the rule is discharged. There will be no order as to costs.

    11. Rule in the civil application is discharged. No order as to costs.

    12. Rule discharged.

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    Comments

    Kurban Hussen Sajauddin Belgaumwalla v. Ratikant Nilkant Zanker
    (Nov 7, 1956)