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  • provisions of Sec. 106 of the Transfer of Property Act
  • provisions of S. 106 of the Transfer of Property Act,
  • provisions as S. 13 of the Land Charges Act, 1925
  • S. 106 of the Transfer of Property Act.
  • S. 106, Transfer of Property Act
  • TRANSFER OF PROPERTY ACT
  • Order VIII, Rule 2, C.P.C.
  • Rent Control) Act
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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Acts
  • provisions of Sec. 106 of the Transfer of Property Act
  • provisions of S. 106 of the Transfer of Property Act,
  • provisions as S. 13 of the Land Charges Act, 1925
  • S. 106 of the Transfer of Property Act.
  • S. 106, Transfer of Property Act
  • TRANSFER OF PROPERTY ACT
  • Order VIII, Rule 2, C.P.C.
  • Rent Control) Act
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The petitioner is a tenant under the Madras Buildings (Lease and Rent Control) Act who leased premises No. 49-A Upper Bazar, Ooty at Rs. 35 per mensem. On 13-8-1965 the landlords issued a notice terminating the tenancy and claiming Rs. 595 as rent due; the notice was served on the tenant on 18-8-1965. The tenant replied on 25-8-1965 denying liability and asserting that the notice did not comply with the requirements of Section 106 of the Transfer of Property Act.

The landlords filed a petition for eviction on 17-1-1966 claiming arrears of Rs. 770. An ex parte order was made on 25-2-1966; the tenant was restored on 18-3-1966 and filed a written statement on 4-4-1966. In that written statement the tenant did not raise the question of defective notice under Section 106. The tenant made payments in installments (Rs. 400 on 18-4-1966 and later Rs. 510 on 29-7-1966), while the Rent Controller proceeded with the eviction petition; the petition was allowed on 20-6-1966 with costs.

The tenant appealed (C.M.A. 39 of 1966). The original memorandum of appeal did not raise the Section 106 notice point; an additional memorandum raising the point was filed on 24-2-1967. The Subordinate Judge's order did not refer to the Section 106 contention and confirmed the Rent Controller's eviction order. The District Judge found the notice was not in accordance with Section 106 but inferred that the tenant had waived the right to raise the contention.

The tenant filed the present civil revision petition before this Court challenging the proceedings on the ground that the defective notice under Section 106 deprived the Rent Controller of jurisdiction and also arguing that the superstructure belonged to him (a contention the Court declined to decide because it was not pleaded before the trial court).

Legal Issues Presented

  1. Whether failure to give a notice in accordance with Section 106 of the Transfer of Property Act deprives the Rent Controller (and appellate courts) of jurisdiction to entertain an eviction petition and renders subsequent eviction orders void.
  2. Whether the tenant waived his right to challenge the notice under Section 106 by his conduct and by failing to raise the plea in his written statement and before the trial court.
  3. Whether the proceedings under the Madras Buildings (Lease and Rent Control) Act were incompetent because the superstructure belonged to the tenant (raised but not decided because it was not pleaded at trial).

Arguments of the Parties

Petitioner-tenant's Arguments

  • Failure to give notice in accordance with Section 106 of the Transfer of Property Act is fatal to the jurisdiction of the Rent Controller; hence the eviction proceedings and orders are non est.
  • The tenant also contended that the superstructure belonged to him, making proceedings under the Rent Control Act incompetent (this point was raised but not pursued because it had not been pleaded at trial).
  • The tenant contended that he did not knowingly refrain from questioning the defect in the notice and therefore there was no waiver.

Respondent-landlords' Arguments

  • The landlords contended that the superstructure belonged to them (opposite of tenant's claim); because the dispute over superstructure was not pleaded at trial, it could not be raised at this stage.
  • The landlords argued that by his conduct — failing to raise the Section 106 objection in the written statement, not making it an issue at trial, and by making payments in installments — the tenant had waived his right to insist on a proper notice.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Soundarapandia v. Meenakshi Achi (C.R.P. No. 866 of 1967 (Mad)) Single Judge view that validity of notice of determination of tenancy pertains to jurisdiction and that defective notice renders tribunal without jurisdiction. The Court considered this decision but declined to construe it as laying down that absence of proper notice deprives the court of jurisdiction; the decision was not followed on that point.
Manujendra Dutt v. P. P. Roy Chowdhury (Supreme Court) Decision cited as supportive of the proposition that proceedings not preceded by a Section 106 notice may be irregular and tribunals lack jurisdiction. The Court noted it was relied upon by the single judge in Soundarapandia, but held that the authorities do not establish that absence of proper notice removes jurisdiction.
Krishnamurthi v. Parthasarathi, 1949-1 Mad LJ 412 = AIR 1949 Mad 780 Bench held that, even if a notice to quit were necessary, it would be an issue for decision by the Rent Controller and would not affect his jurisdiction to entertain the application. The Court treated this Bench decision as binding and relied on it to hold that a Rent Control Court has jurisdiction to entertain a landlord's petition even if there is no proper notice under Section 106.
Abbasbhai v. Gulmanbai; Mangilal v. Suganchand; Manujendra Dutt v. P. P. Roy Choudhury Cited by petitioner-counsel as supporting an inference that defective notice entails lack of jurisdiction. The Court examined the passages relied upon and held they only state that a Section 106 notice is necessary before a landlord can obtain eviction, but they do not hold that absence of proper notice deprives the Rent Control Court of jurisdiction; the Court rejected the inference urged.
Vellayan v. Madras Province, AIR 1947 PC 197 (Privy Council) Considered whether a notice required by Section 80 CPC may be waived; Privy Council held a defendant may waive such protective notice; on facts it found no waiver by respondents. The Court relied on the Privy Council's reasoning to support the proposition that a right to a notice (analogous to Section 106) can be waived by the party entitled to it, and used the decision to discuss waiver principles.
Maganlal Chotalal Desai v. Chandrakant Motilal (Supreme Court) Held that if a point regarding validity of notice was not raised or argued at trial, it is not open to be taken for the first time on appeal or revision. The Court cited this decision to support the rule that a point not raised/argued at trial (even if in pleadings) may be refused leave to be taken later; used to justify refusal to entertain the tenant's belated objection.
Basheer Nath v. I. T. Commissioner Cited for the proposition that a party acting under a mistaken view of the law (and without judicial declaration) may not be treated as having voluntarily relinquished a known right. The Court distinguished the present case from Basheer Nath, noting that here the law at the relevant time (as declared by binding authority) was that notice need not be served, and therefore the parties were bound by the state of law then existing.
Bhaiya Ram v. Mahavir Prasad (Full Bench, Punjab High Court) Discussed analogy between Section 80 CPC and Section 106 Transfer of Property Act, suggesting such notices need not form part of cause of action. The Court cited it in support of the proposition that what applies to Section 80 CPC may be analogously applicable to Section 106, aiding the conclusion that the notice requirement can be waivable in appropriate circumstances.
Raval and Co. v. Ramachandra (Full Bench, decision dated 20-1-1966) Full Bench decision which reinforced the then-prevailing law that notice under Section 106 was not necessary before eviction under the Madras Buildings Act. The Court noted this change in the law in the relevant period and treated it as part of the context for the tenant's argument about the state of law when he filed pleadings; nevertheless the Court held subsequent changes in law do not excuse failure to plead at trial.
Unspecified Bench decision reported at 1969-2 Mad LJ 585 (p.592) Reported to the effect that where a lower appellate court decided against tenant because the tenant failed to take the point before the Controller, this court would normally not interfere. The Court referred to this decision but declined to place primary reliance on it because its reasoning was not very clear; instead the Court based its conclusion on the absence of pleadings and issues at trial.

Court's Reasoning and Analysis

The Court proceeded by (a) examining jurisdictional effect of a defective Section 106 notice, and (b) considering whether the tenant had waived the right to object to the notice by his conduct and failure to plead the point at trial.

On jurisdiction: the Court acknowledged that the notice was defective on the facts (the tenant received the notice on 18-8-1965 calling him to vacate by the end of the month, so there was no clear fifteen days' notice). The Court reviewed prior decisions relied upon by both sides. While a single-judge decision (Soundarapandia) and some other authorities were cited for the proposition that a defective Section 106 notice makes proceedings without jurisdiction, the Court found that those authorities do not establish the proposition that a defective notice removes the court's jurisdiction. The Court considered the Bench decision in Krishnamurthi v. Parthasarathi (AIR 1949 Mad 780) binding and persuasive on this point, which held that, even if notice to quit were necessary, it would be only an issue to be decided by the Rent Controller and would not affect his jurisdiction to entertain the application. Accordingly the Court held that a Rent Control Court has jurisdiction to entertain a landlord's petition even though there is no proper notice under Section 106 of the Transfer of Property Act.

On waiver and pleadings: the Court emphasized the importance of raising matters that show the suit (or petition) is not maintainable in the defendant's pleading (citing Order VIII, Rule 2, C.P.C., as quoted in the opinion). The tenant had not taken the Section 106 objection in his written statement before the Rent Controller, and the point was not argued at trial; the ground was first pressed later in the appeal by an additional memorandum. The Court relied on authorities (including the Privy Council decision in Vellayan v. Madras Province) for the proposition that a protective notice may be waived by the party entitled to it. The Court also referred to the Supreme Court's ruling in Maganlal Chotalal Desai that a point not argued at trial may properly be refused when raised for the first time on appeal.

The Court found that:

  • The tenant did not plead the defect in notice in the written statement and did not raise the issue at trial, thereby depriving the landlords of a fair opportunity to give a fresh notice and pursue remedies.
  • By failing to raise the point and by paying arrears in installments, the tenant's conduct reasonably supported an inference of waiver of the right to insist upon a proper Section 106 notice.
  • Changes in judicial interpretation that occurred after the tenant's pleadings were filed do not entitle a party to withhold a pleaded point at trial and then invoke the subsequent change to avoid the consequences of earlier omissions. Parties are bound by the law as it existed and by the pleadings they file; failure to take a point at trial cannot ordinarily be remedied later simply because the law subsequently changed.

On balance, and having regard to precedent and pleadings, the Court concluded that under the circumstances of this case the tenant could not be permitted to raise the Section 106 objection at this late stage.

Holding and Implications

Holding: The Court dismissed the petition (revision). The petition was dismissed with costs and time for vacating the premises was fixed at three months from the date of the order.

Implications:

  • Direct effect on the parties: the eviction order stands; the tenant must vacate within three months and the petition for revision is dismissed with costs.
  • On jurisdictional law: the Court held (relying on a binding Bench authority) that absence of a proper notice under Section 106 of the Transfer of Property Act does not, by itself, deprive a Rent Control Court of jurisdiction to entertain a landlord's petition; the validity of the notice is a matter for adjudication rather than an automatic jurisdictional bar.
  • On procedural/pleading rules: a defendant must raise in pleadings matters which show the suit or petition is not maintainable; failure to do so and failure to argue a point at trial may lead to forfeiture or waiver of that point on appeal or revision.
  • The Court did not purport to lay down a new general principle of law beyond applying binding authority: it applied existing precedents and rules on waiver and pleadings to the facts and concluded the tenant could not be permitted to raise the objection at this stage.

This summary is strictly confined to the matters expressly stated in the provided opinion.

    K.N Ramakrishnan v. Keral Chand And Another.

    1. The tenant under the Madras Buildings (Lease and Rent Control) Act is the petitioner in this civil revision petition. He had taken on lease premises No. 49-A Upper Bazar, Ooty, on a rent of Rs. 35 per mensem. On 13-8-1965, the landlords issued a notice to the petitioner-tenant terminating the tenancy and calling upon him to pay Rs. 595 which was the amount due to them as rent. This notice was served on the petitioner-tenant on 18-8-1965. The petitioner-tenant gave a rely on 25-8-2965 in which he denied his liability to pay Rs. 595 and also contended that the notice was not in accordance with the provisions of S. 106 of the Transfer of Property Act. On 17-1-1966, the landlords filed a petition for exiction of the petitioner-tenant on various grounds namely, willful default etc. They claimed arrears of rent upto that date Rs. 770. On 25-2-1966 an ex parte order was passed against the tenant. It was restored on 18-3-1966 and time was granted for filing written statement (counter). The petitioner-tenant filed the same on 4-4-1966. He did not deposit any amount; nor did the raise the question as to lack of proper notices under S. 106 of the Transfer of Property Act.

    On 18-4-1966, he paid Rs. 400 when a sum of Rs. 875 was due. On 13-6-1966, the Rent Controller directed the petitioner-tenant to deposit the arrears and posted the petition for being called on 20-6-1966. On 20-6-1966 the counsel reported no instructions and the petition was allowed with costs. On 29-7-1966, the petitioner-tenant paid a sum of Rs. 510 out of Rs. 580 that was due. As already observed, in the written statement before the Rent Controller, the petitioner-tenant did not raise the plea about the defect in notice. The Rent Controller allowed the petition and ordered eviction. the tenant preferred an appeal, C. M. A. 39 of 1966. In the original memorandum of appeal, he did not raise the question about want of notice but filed an additional memorandum of grounds on 24-2-1967 wherein he contended that proper notice under S. 106 of the Transfer of Property Act was not given.

    There is some dispute between the parties as to whether the question of proper notice was argued before the Subordinate Judge or not. The order of the Subordinate Judge does not refer to the contention that the notice was not in accordance with the provision under S. 106 of the Transfer of Property Act. The Subordinate Judge also upheld the plea of the respondent-landlords and confirmed the order of the Rent Controller directing the eviction of the petitioner-tenant on the ground of wilful default. The tenant took up the matter to the District Judge. Before him, the question as to the defect in notice was argued elaborately. The learned Judge found that the notice was not in accordance with S. 106 of the Transfer of Property Act, but from the circumstances of the case inferred that the tenant had waived his right to raise this contention.

    2. The petitioner-tenant has taken the matter before this court in civil revision petition. It is contended, that failure to give notice in accordance with the provisions of Sec. 106 of the Transfer of Property Act is fatal the petitioner as the Rent Controller has no jurisdiction to entertain the petition and in any event the order for eviction cannot be passed when there is failure to comply with the provisions of S. 106 of the Transfer of Property Act. The petitioner-tenant has also contended that the superstructure belongs to him and, therefore, the proceeding under the Rent Control Act is not competent. The landlords, on the other hand, would contend that the superstructure also belongs to them. As the dispute regarding superstructure has not been pleaded before the trial Court, this question cannot be allowed to be raised at this stage and, therefore, I refrain from dealing with this question.

    3. Regarding the question of notice under S. 106 of the Transfer of Property Act, it is common ground that it is not in accordance with the requirements of the section as the notice was received by the tenant only on 18-8-1965 wherein he was called upon to vacate the premises by the end of that month. There is no clear fifteen days' notice and, therefore, the notice is not in accordance with S. 106 of the Transfer of Property Act. The contention that is raised by Mr. Sridevan, the learned counsel for the respondents land lords is that by his conduct the petitioner-tenant has waived his right to raise this question, and, therefrom, he cannot be permitted to raise this question before this court. On the other hand, Mr. Parasurama Iyer, learned counsel for the petitioner-tenant would submit that when there is absence of proper notice under S. 106 of the Transfer of Property Act, the court itself has no jurisdiction to proceed with the matter and, therefore, the entire order of the trial court and further proceedings are non est. In any event. it is submitted that there is no question of any waiver of proper noticed as he did not knowingly refrain from questioning the defect in the notice.

    4. The point as to lack of jurisdiction of the Rent Control Court because there is not proper notice under S. 106 of the Transfer of Property Act, is based on the decision of the single Judge of this court in C. R. P. No. 866 of 1967 (Mad), Soundarapandia v. Meenakshi Achi. The learned Judge was of the view that the question as to the validity of notice of determination of tenancy pertains to jurisdiction and if the notice is defective, the proceeding before the Tribunal is without jurisdiction. The learned Judge, in support of this view, has stated that the ratio of the decision of the Supreme Court in Manujendra Dutt v. P. P. Roy Chowdhury, would lend support to the view that if proceedings under act 18 of 1960 are not preceded by a notice of determination, of tenancy under S. 106 of the Transfer of Property Act, the such proceedings are deemed to be irregular and Tribunals hearing such proceedings do not have requisite jurisdiction to adjudicate upon them.

    I have been taken through the two decisions and I am unable to construe the decisions as laying down that in the absence of proper notice of determination of the tenancy, the court will not have jurisdiction to entertain the application. It may be open to the petitioner-tenant to plead that the notice is defective and on such ground the landlord should not be given any relief. But it is not laid down that the court will have no jurisdiction to try a petition where the notice is not in conformity with the requirements of S. 106 of the Transfer of Property Acts.

    5. In Krishnamurthi v. Parthasarathi, 1949-1 Mad LJ 412 = (AIR 1949 Mad 780), a Bench of this court considered whether a Rent Controller had no jurisdiction to deal with an application by the landlord in the absence of notice to quit on the assumption that a notice to quit was necessary. After detailed consideration of the question raised, the court observed--

    "It would follow from this, therefore, that if notice to quit was necessary, it would be merely one of the issues to be decided by the Rent Controller and would not in any way affect his jurisdiction to entertain the application."

    The correctness of the Bench decision on this point has not been doubted by any subsequent decision of this court though its view that notice, under S. 106, Transfer of Property Act is not necessary has been overruled. Mr. Parasurama Iyer, learned counsel for the petitioner-tenant submitted that an inference as to absence of jurisdiction in the case of defective notice can be deduced from the reasonings of the decisions in Abbasbhai v. Gulmanbai, , Mangilal v. Suganchand, and Manujendra Dutt v. P. P. Roy Choudhury, . I have carefully gone through the passages relied only the learned counsel and I am unable to accept the contention of the learned counsel. All that the decisions say is that a notice as required under. S. 106 of the Transfer of Property Act is necessary before the landlord could get an order of eviction. The decisions do not say that absence of a proper notice would deprive the Rent Control Court of its jurisdiction to entertain the petition by the landlord. The decision of the Bench in 1949-1 Mad LJ 412 = (AIR 1949 Mad 780) is binding on me and, therefore, it has to be held that a Rent Control Court has jurisdiction to entertain a petition by the landlord even though there is no proper notice under S. 106 of the Transfer of Property Act.

    6. Mr. Sridevan, the learned counsel for the respondents, submitted that from the conduct of the tenant, it is clear that he has waived his right to insist on proper notice under S. 106 of the Transfer of Property Act; it may be remembered that though in his reply to the notice to quit by the landlords, the tenant had raised the plea that the notice was not in accordance with the provisions of S. 106 of the Transfer of Property Act, in his written statement, he did not take this plea. No issue was raised before the Rent Controller and the point was not argued before him. In the appeal, as already pointed out, the ground was taken up as an additional ground, but it is not clear as to whether it was argued before the Appellate Court or not. Order VIII, Rule 2, C.P.C. runs as follows:

    "The defendant must raise by his pleading all matters which show the suit not be maintainable, or that the transactions either void or voidable in point of law, and all such grounds of defence as if not raised would be likely to take the opposite party by surprise, or would raise issues of fact arising out of the plaint as for instance, fraud, limitation, release, payment, performance, or facts showing illegality.'' The rule thus requires that the defendant must raise all matters which show that the suit is not maintainable. The effect of failure to raise such plea and to raise an issue for determination of the question may lead the plaintiff to be under the impression that the defendant is not relying on this point.

    7. In a decision of ythe Priv Council in Vellayan v. Madras Province, AIR 1947 PC 197 the court was considering the question whether the notice required to be given under S. 80 C.P.C. could be waived or not. The Privy Council raised two questions, namely, (1) whether it is competent for the defendant in a suit to which S. 80 applies, to waive his right to a proper notice and (2) whether, upon the assumption that it is so competent, the respondents in the case waived their right. Upon the question as to whether it is competent for the defendant in a suit, to which S. 80 applies, to waive his right to a proper notice, the Privy Council held that the notice is intended for the protection of the defendant and if in the particular case he does not require that protection and says so, he can lawfully waive his right. So far as the second question whether on the facts the respondents had in effect waived their right, the Privy Council came to the conclusion that there was no such waiver. In considering this question, the Privy Council referred to the fact that in the written statement filed by the Government before the District Munsif who had no jurisdiction to try the suit the Government did not deny having received proper notice. On that basis, it was contended that the Government must be held to have waived their right to proper notice. It was found that the District Munsif had no jurisdiction try the suit and, a fresh plaint was filed before the Subordinate Judge. In the written statement filed before the Subordinate Judge the Government had taken the plea that the notice was not in accordance with law. On these facts, the Privy Council observed that the conduct on which the appellants relied on took place before an effective suit was instituted and that it could not be suggested that until a suit is instituted, the question of proper notice or the want of it could be raised. As the District Munsif, before whom the original plaint was filed and where in the written statement no objection was taken, had no jurisdiction, the Privy Council came to the view that the conduct in not raising the plea in the written statement in the court without jurisdiction would not amount to waiver. Though the Privy Council has not specifically stated so it may be inferred that it would have been inclined to accept the plea that if in the written statement before the court which had jurisdiction, the plea of want of notice had not been raised, the plaintiff would be entitled to contend that the defendant had waived his right to proper notice.

    8. In a case in which the point was taken in the pleadings and was raised but was not argued in the trial court that there was no valid notice to quit, the Supreme Court in Maganlal Chotalal Desai v. Chandrakant Motilal, held that the point regarding the validity of the notice to quit not having been raised before the Assistant Sessions Judge, the High Court had properly fused to allow the point to be taken for the first time inversion. The court held that the point about the absence of a proper notice under Section 12(2) was not open before it. It is thus clear that if the plea of want of notice was not raised during trial even though had been pleaded, the High Court could properly refuse to allow the point to be taken.

    9. In this case, the plea was not taken in the written statement and was not argued in the trial court. Apart from the failure to raise the point before the trial court in this case, there is not pleading and that would put the petitioner in the worse position. When the point was not taken in the written statement and no issue was raised, the landlords will not be in a position to anticipate that this question would be allowed to be raised t any subsequent point of time. In this case, the notice to quit was on 13-8-1965 and the petition was filed on 7-1-1966. If the point as to the defect in notice had been taken, the landlords would have given fresh notice and pursued their remedies. It is grossly unfair to permit the tenant to raise this question after a period of 4 1/2 years and to deprive them of their remedy. Mr. Parasurama Iyer, learned consul for the petitioner, submitted that the Privy Council has not held specifically that the plea of waiver is available to him and that the court will not be unjustified to infer from it that the plea of waiver would be available to the tenant. I am unable to accept this contention for buy his conduct in not raising the plea in the written statement in the trial court and by depositing the moneys in several installments, the landlords were made to believe that the tenant had given up this plea. Learned counsel also submitted that the Madras Buildings (Lease and Rent Control) Act being a special legislation for the purpose of protecting the tenants, the right conferred under the statute cannot be bartered with. In support of this contention learned with. In support of this contention learned counsel relied on certain passages in Estoppel by Representation by Spencer Bower and Turner. At page 132, the learned author has stated-

    "Similarly it has been held that an estoppel cannot be used to render nugatory such provisions as S. 13 of the Land Charges Act, 1925 for estoppel cannot be invoked to negative the operation of a statute'."

    Again at page 140 in paragraph 148, it is stated:--

    "Tenants of rent-controlled premises may be similarly said to constitute a class of protected persons to whom similar principles may be applied. They may not contract themselves out of the legislation; and it is clear that no estoppel can arise in favour of a landlord by which the tenant can be deprived of protection."
    The rule requiring notice, is not under the special Act, namely the Madras Buildings (Lease and Rent Control) Act, but it is only in the Transfer of Property Act which governs the rights of parties S. 106 being in favour of a party, there can be no difficulty in holding that the party can waive his right. This is the view that is taken by the Privy Council in Air 1947 PC 197, regarding S. 80, C.P.C. What is applicable to S. 80, C.P.C. is equally applicable to S. 106 of the Transfer of Property Act. As observed by the Full Bench of the Punjab High Court in Bhaiya Ram v. Mahavir Prasad, , if notice under S. 80, C.P.C. does not form part of cause of action of a suit, there is nothing to show that the notice under S. 106 of the Transfer of Property Act which cannot be required to be served at all in certain contingencies, is necessarily a part of a cause of action for eviction.

    10. It was contended by Mr. Parasurama Iyer the learned counsel for the petitioner-tenant that in order to amount to waiver the action of the tenant must be with the knowledge of his right. In this case, it is submitted, that the decision which was holding the field was the one in 1949-1 Mad LJ 412 = (AIR 1949 Mad 780) which held that notice under S. 106 of the Transfer of Property Act was not necessary before the landlord could ask for eviction under the Madras Buildings (Lease and Rent Control) Acts. This view was further reinforced by the Full Bench decision in Raval and Co. v. Ramachandra, (FB) which was rendered on 20-1-1966. According to the learned counsel, when the petition was filed by the landlords on 17-1-1966, no notice was required under S. 106 of the Transfer of Property Act and it is futile to expect the tenant to take up this point. The learned counsel is right in his submissions so far as the dates and the state of law when he filed the written statement. But if a subsequent judicial decision were to change the law, the parties cannot be heard to say that their failure to plead was due to their misunderstanding of the position of law regarding the rights of parties. Reliance is placed by Mr. Parasurama Iyer in the decision in Basheer Nath v. I. T Commissioner, . The court after setting out the circumstances on which the Attorney General founded his plea of waiver, namely, that the assessee submitted to the discriminatory procedure applied to him by the Commission, that he asked for settlement under which he agreed to pay 75 per cent of his alleged tax liability and a small amount of penalty and that he made some payment, found that when the discriminatory procedure of the Act was applied to him and the report against him as made by the Commission on which the settlement was based, the assessee did not know, nor had it been declared by a court of competent jurisdiction that Section 5(1) of the Act was ultra vires. In the circumstances, the court held that it was not a voluntary or intentional relinquishment of a known right. The position of law was not declared by a competent court of jurisdiction and under the misapprehension the he was bound, he made certain payments and that was held to be not voluntary relinquishment of his right.

    11. In this case, the position is different as the court of law has held that no notice was necessary and both the parties were bound by it. If the petitioner-tenant could be allowed to say that because of a misappreciation of the position of his rights, he did not plead, it would be equally open to the respondent-landlords to plead that as it had been held that S. 106 of the Transfer of Property Act is not applicable the provision as to notice could not be gone into at all. Therefore, embarking on an enquiry into the state of mind or the position of law as it then existed and subsequently changed, would be irrelevant so far as the rules of pleadings are concerned. The parities are bound by the state of law as it then existed and if any of the parties had reservation about the correctness of the decision, they ought to have pleaded in their case. In the absence of such plea and when the parties had gone to trial and invited a judgment on the basis of pleadings because of subsequent change of law, the parties cannot be heard to raise the pleadings for the first time.

    12. Mr. Sridevan referred to a Bench decision of this court in 1969-2 Mad LJ 585 at p. 592, which held that if the lower appellate court had decided the lower appellate court had decided against the tenant on the ground that he had failed to take the point before the Controller, normally this court would not interfere with that view, and submitted that as the learned District Judge decided the point against the tenant on the ground that he had failed to take the point before the Rent Controller, the decision of the Bench would be applicable to the facts of this case. The observations are in favour of the learned counsel for the respondents-landlords, nut as pointed out by the learned counsel for the petitioner-tenant, the reasoning for the conclusion is not very clear. Therefore, I would base my conclusion on the ground that when the point had not been taken in the pleadings and put at issue and not adverted to at all before the trial court, the tenant will not be permitted to raise this plea in this court. The Supreme Court has held that even though the point had been taken in the pleadings, if it was not argued before the trial court, the High Court will be right in refusing to permit the point to be taken. In the circumstances accept the plea of the landlords that under the circumstances of this case, the petitioner-tenant cannot be allowed to raise this point at this stage.

    13. The petition is dismissed with costs. Time for vacating three months form this date.

    14. Revision dismissed.

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    Comments

    K.N Ramakrishnan v. Keral Chand And Another.
    (Apr 9, 1970)