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citation codes
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  • Section 49 of the Registration Act and Section 91 of the Evidence Act
  • Sections 10(2)(i), 10(2)(ii)(a) and 10(2)(vi) of Act XVIII of 1960
  • Section 10(2)(vii) of Act XVIII of 1960
  • Section 91 of the Indian Evidence Act.
  • SECTION 49 REGISTRATION ACT
  • SECTION 17 REGISTRATION ACT
  • Section 49(c) of Registration Act
  • Section 25 of Act XVIII of 1960.
  • SECTION 91 EVIDENCE ACT
  • Section 107 of the T.P. Act
  • Section 107 of T.P. Act
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Section 49 of the Registration Act and Section 91 of the Evidence Act
  • Sections 10(2)(i), 10(2)(ii)(a) and 10(2)(vi) of Act XVIII of 1960
  • Section 10(2)(vii) of Act XVIII of 1960
  • Section 91 of the Indian Evidence Act.
  • SECTION 49 REGISTRATION ACT
  • SECTION 17 REGISTRATION ACT
  • Section 49(c) of Registration Act
  • Section 25 of Act XVIII of 1960.
  • SECTION 91 EVIDENCE ACT
  • Section 107 of the T.P. Act
  • Section 107 of T.P. Act
Smart Summary

Structured Summary of the Provided Legal Opinion

Factual and Procedural Background

The opinion deals with two related revision petitions arising from eviction proceedings under Act XVIII of 1960. In C.R.P. No. 2875 of 1983 the petitioners are tenants and the respondent (landlady) filed a petition under Section 10(2)(vii) of Act XVIII of 1960 claiming that the first petitioner, despite knowledge of the landlord-tenant relationship, wilfully denied the landlady's title and had unauthorisedly sub-let to the second petitioner (an alleged unauthorised sub-tenant). The landlady had earlier prosecuted H.R.C. No. 2776 of 1981 for eviction on grounds of wilful default and unauthorised subletting; the present petition arises because a jurisdictional objection was taken in those proceedings.

The petitioners (as respondents in H.R.C. No. 2776 of 1981) countered that the second petitioner is the elder brother of the first and assisted in the business, that only the land (vacant site) was leased and that the lease agreement dated 14th March 1974 (Exhibit P-4) was unregistered and therefore unreliable; they further disputed rent demands and receipt practices. Both lower courts had concluded there was a wilful denial of title by the petitioners and relied in part on Exhibit P-4.

In C.K.P. No. 4778 of 1982 (connected matter), the same tenants are petitioners and the landlady sought eviction under Sections 10(2)(i), 10(2)(ii)(a) and 10(2)(vi) of Act XVIII of 1960, alleging wilful default, unauthorised subletting and cessation of occupation. The petitioners denied unauthorised subletting and wilful default, reiterating the contention that originally only the land was leased and the superstructure was erected by the first petitioner.

The revision petitions challenge concurrent findings of the courts below on (a) whether an unregistered lease deed (Exhibit P-4 / P-3) may be relied upon to establish that the superstructure was part of the lease, (b) whether the tenants wilfully denied title, (c) whether there was unauthorised subletting, (d) whether there was wilful default in rent, and (e) whether there was cessation of occupation.

Legal Issues Presented

  1. Whether an unregistered lease deed (Exhibit P-4 / P-3) may be admitted or relied upon to establish the terms of a lease affecting immovable property (in particular, whether the superstructure was leased along with the land).
  2. Whether the tenants' denial of the landlady's title was bona fide or a wilful denial of title, justifying eviction under Section 10(2)(vii) of Act XVIII of 1960.
  3. Whether there was unauthorised subletting of the premises to the second petitioner (an elder brother alleged to be assisting in the business) and, if so, whether this justified eviction.
  4. Whether the tenants committed wilful default in payment of rent and whether such default justified eviction under the relevant sections of Act XVIII of 1960.
  5. Whether there was cessation of occupation consequent to alleged subletting and whether that supported an order for eviction.

Arguments of the Parties

Petitioners' (Tenants') Arguments (presented by Mr. T.S. Subramaniam)

  • The unregistered lease agreement dated 14th March 1974 (Exhibit P-4 / P-3) is inadmissible to prove the terms of the lease affecting immovable property and can be used only for collateral purposes (e.g., to ascertain nature of possession) — it cannot be treated as substantive evidence to show that the superstructure was part of the lease.
  • Both lower courts improperly relied upon Exhibit P-4 / P-3 as substantive evidence of the terms of tenancy; because the lease was for more than one year and unregistered, its terms could not be proved and thus the orders are vitiated to the extent they depend upon that document.
  • Findings on wilful default, subletting and cessation of occupation were said to be based on no evidence or inadequate evidence.

Respondent's (Landlady's) Arguments (presented by Miss O.K. Sridevi)

  • An unregistered document can be looked into for collateral purposes and the terms contained therein can be treated as admissions by the parties to the document; when Exhibit P-4 describes the property leased, that description can be collaterally utilised to determine whether the lease covered the vacant site alone or the site together with the superstructure.
  • Reliance was placed on authorities holding that unregistered agreements, though inadmissible to create or extinguish rights in immovable property, are admissible for collateral purposes such as ascertaining character of possession.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ram Nath Mandal v. Jojan Mandal (F.B.) Held that an unregistered lease deed is inadmissible in evidence under Section 49 of the Registration Act and its terms may be precluded under Section 91 of the Evidence Act. Cited by counsel for petitioners to support the proposition that an unregistered lease cannot be relied upon to prove lease terms; the court considered this authority in assessing admissibility of Exhibit P-4/P-3.
Mohammad Ghouse Sahib v. Jamila Bi (Division Bench) When a document requiring registration is not registered it cannot affect immovable property nor be used in evidence; defined collateral purpose as any purpose other than the transaction affecting immovable property. Relied upon by the court to support the proposition that recitals in the unregistered lease could not be used to treat existence of a superstructure as a collateral fact establishing that the superstructure was leased; this authority buttressed the court's holding that Exhibit P-4/P-3 could only be used to ascertain nature of possession, not to prove that the superstructure formed part of the lease.
Sita Maharani v. Chhemi Mahto When a settlement requiring registration was not registered it was inadmissible and its contents could not be treated as admissions for proving terms affecting immovable property. Cited to reject the contention that the terms of Exhibit P-4/P-3 could be treated as admissions establishing that the superstructure was leased; used to limit the evidentiary value of the unregistered document to collateral purposes only.
Iswar Dutt v. Sunder Singh (A.I.R. 1960 J & K. 63) Section 17 of the Registration Act and Section 107 of the Transfer of Property Act affect admissibility and validity of unregistered instruments; combined effect with Section 49 of the Registration Act and Section 91 of the Evidence Act is that an unregistered lease for two years cannot be received in evidence nor can its terms be proved by other evidence. Referenced to show the legal consequences of non-registration of a lease; the court considered this as authority limiting the evidentiary use of Exhibit P-4/P-3.
Sobharam v. Raja Mahton (Patna High Court) Held that a document which required registration but was not registered is not admissible to prove its terms and its contents cannot be used for that purpose. Cited in support of the view that the terms of an unregistered lease cannot be relied upon to prove rights relating to immovable property.
The Official Liquidators of R.E. Moolia Sons Limited v. Mrs. Perrin R. Burjorjee (1932) A.I.R. 1932 P.C. 118 Interpreted Section 49 to mean the court need not take notice of non-registration unless, if treated effective, the document would be the foundation of a judgment affecting immovable property. Referred to in the discussion of when non-registration must be taken into account; used to evaluate whether Exhibit P-4/P-3 must be excluded in whole or can be considered collaterally.
Shiromani v. Hem Kumar In the absence of registration a partition deed requiring registration is inadmissible to prove title, but may be admissible to show intention to divide (a limited collateral use). Used to illustrate that unregistered deeds may have limited collateral utility but cannot be used to prove title to immovable property.
Velusami v. Velusami If a document purports to effect a division and embodies all the bargain it requires registration; in its absence it cannot be admitted and secondary evidence is not admissible due to Section 91 of the Evidence Act. Referred to in support of the general principle that documents affecting immovable property require registration to be admitted as proof of their terms.
Raghunath v. Kedarnath In the absence of registration a document cannot be received in evidence of any transaction affecting immovable property. Cited as part of the line of authorities limiting admissibility of unregistered documents that affect immovable property.
Muruga Mudaliar v. Subba Reddiar (Full Bench) An agreement of lease in writing which required registration can be used as evidence if it is intended to establish a personal claim unrelated to immovable property (i.e., for purely personal relief for breach of contract). Referred to as an exception showing that some unregistered agreements may be used when the relief sought is personal and unrelated to immovable property; contrasted with situations where the document would affect immovable property.
Rani Vidya Bhushan Singh v. Rati Ram Though inadmissible for creating rights in immovable property, an unregistered agreement to lease can be admitted and taken as evidence of collateral facts or for ascertaining character of possession. Relied upon by the landlady's counsel to support collateral use; the court acknowledged this line of authority when discussing collateral admissibility but limited the use to ascertain nature of possession rather than to prove that the superstructure formed part of the lease.
Balakrishna v. Ranga Reddy (1969) 1 S.C.W.R. 341 An unregistered document can be taken in evidence for a collateral purpose of proving admissions contained therein. Cited by respondent's counsel to argue that the terms of the unregistered agreement could be treated as admissions; the court evaluated this against other authorities (e.g., Sita Maharani) and restricted such use.
Periaswami Pillai v. Arunjagadeswaraswami Temple Where a lease requiring registration is not registered, Section 106 of the Transfer of Property Act will be attracted and the lease may be deemed to be a month-to-month tenancy. Referenced to note statutory consequences in certain contexts where a lease is not registered.
Ram Kishore v. Ambika Prasad (A.I.R. 1966 All. 515) When a lease deed is not registered and inadmissible to prove the lease, it can be received in evidence for collateral purposes such as nature of possession (tenant, licensee or trespasser). Referred to in support of the rule that unregistered leases can be used for collateral purposes like ascertaining the nature of possession.
M. Chalamayya v. M. Venkataratnam If a document cannot be received in evidence because of Section 49 of the Registration Act, it is still receivable in evidence for a collateral purpose. Cited to confirm the collateral-use exception to the rule of inadmissibility.
Bhaiya Ramanuj Pratap Deo v. Lalu Maheshnuj P. Deo Such a document (unregistered when registration required) could be received for collateral purposes of ascertaining nature of possession. Referenced to support the collateral-use doctrine.
Kumaraswami Goundar v. Arunagiri Goundar Definition of "collateral transaction" as a transaction other than the transaction affecting immovable property but connected with it; collateral purpose is any purpose other than creating, declaring, assigning, limiting or extinguishing rights in immovable property. Used to clarify what is meant by collateral purpose when determining admissibility of unregistered documents.

Court's Reasoning and Analysis

The court examined the legal principle governing admissibility of unregistered lease agreements (in particular under Section 49 of the Registration Act and Section 91 of the Indian Evidence Act) and surveyed authorities on the permissible collateral use of such documents. The analysis proceeded along these lines:

  1. The court accepted the settled principle (derived from the cited authorities) that a lease of immovable property for more than one year, if not registered, cannot be admitted in evidence to establish the terms of the lease insofar as those terms affect immovable property. The unregistered document may be admissible only for collateral purposes, principally to ascertain the nature of possession (e.g., whether a party was a tenant, licensee or trespasser).
  2. The court confronted conflicting authorities as to whether the contents of an unregistered document can be treated as admissions. It noted that certain decisions (e.g., Rani Vidya Bhushan Singh, Balakrishna v. Ranga Reddy and others) allowed collateral use to prove admissions, but that other authorities (notably Sita Maharani and Iswar Dutt) disapproved treating contents as usable to prove the document's substantive terms. The court sided with the narrower construction that such contents cannot be used to prove the substantive terms that affect immovable property; they can only be used for collateral purposes such as identifying nature of possession.
  3. Applying this principle to Exhibit P-4 (C.R.P. No. 2875 of 1983) and Exhibit P-3 (C.K.P. No. 4778 of 1982), the court held that those unregistered lease documents could not be received as substantive evidence to establish that the superstructure was part of the lease; they could only be referred to for the collateral purpose of ascertaining the nature of possession.
  4. The court then examined the entirety of the record and determined whether the courts below had based their findings solely on the unregistered documents or had also relied on independent evidence. In C.R.P. No. 2875 of 1983 the court found the lower courts had relied upon other material (Exhibits P-5 to P-9, P-11 — property tax demand notices and entries — as well as oral testimony) and had analyzed oral evidence pointing against the petitioners' claim that they had exclusively leased only the land and that the superstructure had been constructed by the tenant. The first petitioner had not produced corporation plans, accounts, or receipts to substantiate his alleged expenditure of Rs. 40,000. On balance the courts below found the denial of title not bona fide.
  5. Consequently, the court concluded that because concurrent findings by the lower courts on denial of title and related factual matters were supported by independent evidence and not solely dependent on the unregistered lease, those findings could not be interfered with under Section 25 of Act XVIII of 1960.
  6. In the second revision (C.K.P. No. 4778 of 1982), the court noted that the Appellate Authority had explicitly dissociated its findings from Exhibit P-3 and had relied on other evidence (property tax receipts, register extracts) to conclude that the superstructure belonged to the respondent. On wilful default, the court observed the petitioners failed to discharge the burden of proof as to payment of rents (and the procedure under Section 8 for depositing rents was not invoked). Thus the finding of wilful default was supported by evidence and was upheld.
  7. However, on the issue of subletting and cessation of occupation in C.K.P. No. 4778 of 1982 the court held that the inferences drawn by the courts below (that there was subletting and cessation) were practically based on no evidence — the mere fact that the second petitioner (elder brother) assisted in the business and that the name of the business changed did not suffice to infer subletting. Those specific findings were set aside.

Holding and Implications

Holding:

  • C.R.P. No. 2875 of 1983 — DISMISSED. The court held that Exhibit P-4 (the unregistered lease) could not be used as substantive evidence to prove that the superstructure was leased, but the concurrent findings of the lower courts that the petitioners' denial of title was not bona fide were supported by other evidence (property tax records and oral testimony) and therefore were not interfered with under Section 25 of Act XVIII of 1960. No costs were awarded.
  • C.K.P. No. 4778 of 1982 — DISMISSED (insofar as challenge to wilful default). The court held that although the Appellate Authority had partly erred in its reasoning by considering the terms of Exhibit P-3, it had otherwise dissociated its findings from that document and relied on independent evidence (property tax receipts and assessment register extracts) to conclude the superstructure belonged to the respondent. The finding of wilful default was upheld; the findings of subletting and cessation of occupation were set aside for lack of evidence. No costs were awarded.

Implications:

  • The direct effect is that the concurrent orders of the lower courts are preserved as to those aspects supported by independent evidence (notably the findings on denial of title in C.R.P. No. 2875 of 1983 and wilful default in C.K.P. No. 4778 of 1982), so the revision petitions do not succeed in overturning those conclusions.
  • The court reiterated the settled evidentiary principle that an unregistered lease requiring registration cannot be used to prove substantive terms affecting immovable property and may be used only for collateral purposes such as determining the nature of possession. The opinion applies this principle to the exhibits in these matters and clarifies that reliance solely on unregistered leases to establish substantive lease terms is improper.
  • No broader or novel legal precedent was declared beyond applying established authorities to the facts; in some respects the court corrected lower-court reasoning that had treated unregistered instruments too expansively but nonetheless declined to disturb findings supported by independent evidence.

No costs were awarded in either revision petition as recorded in the opinion.

    N. Sambandam And Another v. Saraswathi Ammal

    1. C.R.P. NO. 2875 of 1983 : Tenants are petitioners. Respondent filed a petition under Section 10(2)(vii) of Act XVIII of 1960 claiming that the first petitioner herein, in spite of full knowledge of existence of relationship of landlord and tenant in respect of petition premises, had deliberately denied her title joining hands with the second petitioner who is an unauthorised sub-tenant, and hence, they are liable to be evicted. She preferred H.R.C. No. 2776 of 1981 for eviction of these two persons on the ground of wilful default committed by first petitioner and unauthorised subleting by him to the second petitioner herein and in the course of the said proceedings, since a stand had been taken that the Rent Controller had no jurisdiction to entertain the petition because land alone had been taken on lease, she had to file the present petition.

    2. Both the petitioners herein, as respondents in H.R.C. No. 2776 of 1981, filed a common counter claiming that second petitioner herein is the elder brother of the first petitioner and had been helping him in the business and that first petitioner had constructed the superstructure spending Rs. 40,000/- and that only land was taken on lease and the lease agreement dated 14th March, 1974, being an unregistered document, it cannot be relied upon and as he was badly in need of alternative place to run the repair shop, he signed the agreement without knowing that it contained a clause that superstructure was also being leased out, that the monthly rent is only Rs. 200/- and was enhanced to Rs. 250-per month with effect from January, 1981, that the son of the landlady not having come to collect the rent payment was not made and that no receipts are issued by her and hence, the present petition is not maintainable under Act XVIII of 1960 and that she can only have recourse to a civil suit if so advised. Both the courts having concurrently held that there had been a wilful denial of title of the landlady, in this revision petition it is contended by Mr. T, S Subramaniam, learned Counsel for petitioners, that both the courts have relied upon Exhibit P-4 agreement dated 14th March, 4974, which is an unregistered one and hence, its terms having been relied upon to decide as to whether the superstructure was leased out or not, the orders are vitiated as they treat Exhibit P-4 as substantive evidence, It is admitted that the lease deed was not registered though it was executed for a period of three years. The following decisions are relied upon by him to plead that such an unregistered lease deed can be looked upon only for the collateral purpose of finding out the nature of possession and nothing more whereas the Appellate Authority has held that Exhibit P-4 can be looked into by the court for collateral purpose for finding out as to what is the property that has been teased out even if it cannot be looked into for the purpose of finding out the nature of the tenancy, which line of reasoning is contrary to decisions of this Court.

    3. Miss. O.K. Sridevi, learned Counsel for the landlady, submits that an unregistered document can be looked into for finding out not only the nature of possession, but terms contained therein can be treated as admission made by the parties to the document and taken into account as a piece of evidence and hence. when the property that was leased out is described in Exhibit P-4 to that extent, it can be collaterally utilised for finding out whether the lease was only in respect of vacant site or both of vacant site and the superstructure.

    4. Mr. T.S. Subramaniam first refers to Ram Nath Mandal v. Jojan Mandal (F.B.) which took the view that an unregistered lease deed will be inadmissible in evidence under Section 49 of the Registration Act and other evidence of its terms will be precluded under Section 91 of the Evidence Act. A Division Bench of this Court in Mohammad Ghouse Sahib v. Jamila Bi. while dealing with a partition koor-chit which required to be registered under Section 17 of the Registration Act but not registered, held that it cannot affect immovable property nor can it be used in evidence. In Sita Maharani v. Chhemi Mahto . it was held that when a settlement of a 'Raiyati' interest had been reduced to writing and it required registration and since it was not registered it was treated as inadmissible, and no evidence could be given as to its terms. It was also held that the contents of the document cannot be treated as admission by one of the parties. In Iswar Dutt v. Sunder Singh A.I.R. 1960 J, & K. 63, it was held that Section 17 of the Registration Act strikes at a document and Section 107 of the T.P. Act strikes at the validity of the transactions of leases. If a document of lease is for a period of two years and had not been registered, the combined effect of Section 49 of the Registration Act and Section 91 of the Evidence Act is that the document cannot be received in evidence nor can the terms of the lease be proved by any other evidence. Hence, the proof of the terms of the tenancy will not be merely evidence of collateral transaction, and hence, the lease deed cannot be used for proving the terms of tenancy. A Division Bench of the Patna High Court in Sobharam v. Raja Mahton held that a document which required registration but not so done, is not inadmissible but no evidence could be given as to its terms and that its contents could not be used for that purpose. The decision in The Official liquidators of R.E. Moolia Sons Limited v. Mrs. Perrin R. Burjorjee (1932)63 M.L.J. 131; 59 I.A. 961 : 36 L.W. 75; A.I.R. 1932 P.C. 118 is to the effect that there is nothing to Section 49, when properly construed, to compel the Court to take notice of the non-registration of an admitted document unless at any rate the document must, if treated as effective, be the foundation of a judgment affecting immovable property comprised in such document. In dealing with a partition deed which required to be compulsorily registered, in Shiromani v. Hem Kumar it was held that in the absence of such registration it is inadmissible to prove the title of any of the co-parceners to any of the properties, and such a document is, however, admissible to prove the intention of co-parceners to become divided in status and nothing more. In Velusami v. Velusami in dealing with the principles that should govern partition deeds, it was held that, if the document purports by itself to effect a division and embodies all the terms of the bargain, then it would require registration, and in its absence, it cannot be admitted in evidence, and secondary evidence of the factum of partition would not be admissible by reason of Section 91 of the Indian Evidence Act. In Raghunath v. Kedarnath , also it was held that, in the absence of registration, a document cannot be received in evidence of any transaction affecting immovable property. Lastly he refers to Muruga Mudaliar v. Subba Reddiar , wherein a Full Bench of this Court in dealing with the scope of Section 49(c) of Registration Act held that an agreement of lease in writing required to be registered can be used as evidence, if only it is intended to establish a claim of personal nature seeking relief for breach of contract and unrelated to immovable property,

    5. Miss O.K. Sridevi, learned Counsel for the landlady, refers to Rani Vidya Bhushan Singh v. Rati Ram , which held that though inadmissible in evidence, an unregistered agreement to lease immovable property, can be admitted and taken as evidence of collateral facts or for purposes like character of possession, i.e,, for any purpose other than for creating, declaring assigning, limiting or extinguishing a right to immovable property. The decision in Balakrishna v. Ranga Reddy (1969) 1 S.C.W.R. 341, is to the effect that an unregistered document could be taken in evidence for a collateral purpose of proving the admissions contained therein. In Periaswami Pillai v. Arunjagadeswaraswami Temple , where a document of lease which required to be registered under Section 107 of T.P. Act was not registered, it was held that Section 106 of the Act would be attracted and statutorily the lease would be deemed to be a lease from month to month. The decision in Ram Kishore v. Ambika Prasad A.I.R. 1966 All. 515, is also to the effect that when a lease deed is not registered and is inadmissible to prove the lease, then it can be received in evidence for proving collateral purposes like the nature of possession, i.e., whether a tenant or a licensee or a trespasser. In M. Chalamayya v. M. Venkataratnam , it was held that if a document cannot be received in evidence because of Section 49, it is still receivable in evidence for a collateral purpose. Equally in Bhaiya Ramanuj Pratap Deo v. Lalu Maheshnuj P. Deo , it was again held that such a document could be received for collateral purpose, of ascertaining nature of possession. As to what is a collateral transaction, in Kumaraswami Goundar v. Arunagiri Goundar it was held that a collateral transaction means a transaction other than the transaction affecting immovable property but which is in some way connected with it, A collateral purpose is any purpose other than that of creating, declaring, assigning, limiting or extinguishing a right to immovable property.

    6. These decisions are to the effect that a lease of immovable property for more than one year requires registration, and if not registered, the document can be admitted in evidence only for the purpose of ascertaining the nature of possession and nothing more. The contention of the landlady that the terms contained therein could be treated as admission relying upon Balakrishna v. Ranga Reddy , cannot be entertained in the light of the decision in Sita Maharani v. Chhedi Mahto . which held that

    "no evidence could be given as to its terms, and the contents of the admission by B could not be used for that purpose"
    . A Division Bench of this Court in Mohammad Ghouse Sahib v. Jamila Bi , having held that a collateral purpose is any purpose other than a purpose covered by the transaction, the existence of superstructure cannot be taken note of as a piece of collateral evidence, unconnected with leasing of property, by looking into the recitals in Exhibit P-5, and hold that a superstructure was also leased out. Hence, to establish as to whether a superstructure was leased out or not, Exhibit P-4 cannot be received as a piece of evidence. It can be referred to only to establish the nature of possession. Hence, this point taken by petitioners is held in their favour.

    7. If courts below have rested only on Exhibit P-4 and the terms contained therein, then the revision petition could have been allowed. But, the orders go to show that they have rested upon other documents to come to the conclusion that first petitioner had not established that he had taken only the land of lease. Exhibits P-5, P-6 and P-7 are the demand notice issued by the Corporation of Madras claiming property tax showing the name of Natesa Mudaliar, the husband of the landlady' and Exhibit P-9 is the extract of the demand register showing the receipt of payment of taxes for the superstructure in the name of the husband of the respondent. Though first petitioner claims that he has spent Rs. 40,000/. in 1974 to put up the structure, he has neither produced the plan of the Corporation nor any accounts to show about his putting up the superstructure. as R.W. 1, first petitioner had stated that on 14th March, 1974, he had taken on lease the site. He admits that in the Corporation records his name is not registered as owner of the superstructure and that it stands only in the name of Natesa Mudaliar. He has no accounts to show the investment of Rs. 40,000|- made by him. For securing electric connection from landlady and her children. he had secured consent in the application filed by him. He would further state that within one month from 14th March, 1974, landlady agreed to construct the building, and in spite of reminders she did not do so and hence he put up the superstructure in the month of April. The Rent Controller also took note of the statement of first petitioner, that he took custody of the keys, which could only be referable to superstructure, and could have no reference to taking possession of vacant site. He tried to explain it away in his re-examination by saying that there was a compound wall and hence, he took the keys of the gate. There is no evidence to show that there was any compound wall on all sides. The Rent Controller adverting to the evidence of R. Ws. 4 and 5, the building contractor and the car driver of Natesa Mudaliar, had held that their evidence does not show that a construction was put up by first petitioner. As for drainage connection, evidence of R.W. 2 was treated as not to clinch that it is only the owner of the property who could secure the drainage connection and not a tenant. Thus, when both the courts, on an analysis of the oral evidence let in and with particular reference to Exhibits P-5 to P-9 and P-11, had come to the conclusion that denial of title of the respondent was not 'bona fide' the concurrent finding arrived at cannot be interfered with under Section 25 of Act XVIII of 1960. Hence, this revision petition is dismissed. No costs.

    8. C.K.P. No. 4778 of 1982:Petitioners in C.R.P. No. 2875 of 1983 are the petitioners herein. Respondent-landlord filed a petition for eviction of tenants under Sections 10(2)(i), 10(2)(ii)(a) and 10(2)(vi) of Act XVIII of 1960 claiming that wilful default had been committed. that the premises has been sublet unauthorisedly and that there has been cessation to occupy the premises consequent to the sub-letting. Respondents-petitioners herein stated that the land and building were leased out for Rs. 200/- per month for non-residential purposes of carrying on car repair workshop and that first petitioner herein had committed default in payment of rent from October, 1980 to April, 1981. The amount of Rs. 250/- sent by money order in March, 1981 was refused as he was in arrears from August, 1980. A further pay order sent on 3rd May, 1981 for Rs. 250/- was also returned, since it was accompanied with several false allegations in the covering letter. First petitioner having unauthorisedly sublet the premises in favour of second petitioner and the premises not being used for the last 4 months, the respondent herein is entitled to an order of eviction.

    9. The petitioners in their counter stated that first petitioner is the tenant and second petitioner is not a sub-tenant, because he is his elder brother who is assisting him in his business and that the business is carried on in the name and style of Sivan Auto Services. Apart from this he is also carrying on another business in the name and style of Vimal Turning Works at No. 19, C.P. Ramaswamy Iyer Road, Madras-18 and that originally only the land was taken on lease, and the superstructure was put up by the first petitioner. Since the respondent's son had not turned up to collect rent, it was not paid. But in spite of attempts to send the rent by money order and pay order, and they having been refused, no wilful default had ever been committed. Hence they have sought for the dismissal of the petition.

    10. Both the courts having concurrently held against petitioners herein, in this revision Mr. T.S. Subramaniam, their learned Counsel, apart from reiterating the points taken by him in C.R.P. No. 2875 of 1983, relating to the claim that only land was taken on lease and not the superstructure, also argues that the findings on wilful default, subletting and non-user are based on no evidence. He strenuously pleads that the unregistered lease deed marked as Exhibit P-3 in this proceeding had been solely rested upon to hold that tenancy relationship exists between the parties.

    11. No doubt, the courts below have relied upon the unregistered lease agreement and referred to certain terms contained therein but every caution had been taken to analyse the other evidence on record independent of the un-registered lease deed. Appellate Authority after referring to the terms in Exhibit P-3 and holding that the as per its terms the superstructure belongs to the respondent, proceeds to consider the other evidence dissociating from Exhibit P-3. After giving its finding relying on Exhibit P-3, he states ''Apart from that on the side of P.W. 1 Exhibit P-8 series are relied upon..."

    This clearly shows that he had dissociated the finding on Exhibit P-3, while taking into account the other evidence on record. It is on a consideration of Exhibit P-8 series, the property tax receipts, and Exhibit R-1 marked by petitioners herein, which is an extract from the register of assessment for the years 1975 to 1982, Courts below came to the conclusion that the superstructure belongs to respondent. It is not necessary to reiterate what materials had been already taken into account in C R.P. No. 2875 of 1983 therefore, when courts below have concurrently held, on an analysis of relevant evidence adduced herein that superstructure belongs to respondent' no perversity in the finding having been made out, no cause is made out to interfere under Section 25 of Act XVIII of 1960. It is only that portion of the order which dealt with the terms and conditions of Exhibit P-3 and which had been separately considered, it is beset with an incorrect understanding of the law relating to unregistered lease deeds.

    12. On the aspect of wilful default, apart from relying upon the evidence of P.W. 1, courts below have pointed out that there is no evidence on record to show that at any time rent at Rs. 250|- was demanded. When first petitioner attempted to send a higher amount, it was promptly refused. On the plea that no receipt was ever given, it was again pointed out that, if such was the position, then recourse could have been made to Section 8 of the Act by depositing rent in a bank or in the court. When first petitioner had failed to discharge his burden by establishing that he had paid rents for the period claimed, there was no illegality committed by the courts below in giving credence to the evidence of P.W. 1 for rendering a finding on this aspect.

    13. As for sub-letting, merely because first petitioner's brother had assisted him in conducting the business, and another business is conducted by first petitioner under the name and style of 'Vimal Turning Works', there cannot be a presumption that first petitioner had sub-let the premises to the second petitioner. No doubt, originally the business was carried on in the petition premises under the name of Mani Automobile Service but later on changed as Sivan Auto Service. Change in the name of the business could never mean that there has been sub-letting. The burden of proving sub-letting is on the respondent, and even if direct evidence is not there, circumstantial evidence could be acted upon, but what has been done is to infer-subletting because of the following two factors, namely, (i) second petitioner, the elder brother, is assisting the first petitioner, and (ii) the name of the business had been changed. These factors would not suffice to arrive at a legal inference of sub-letting. Hence, this finding, having been rested practically on no evidence, is set aside.

    14. As for cessation of occupation of the petition premises, this finding was tendered as a consequential one to the finding on sub-letting. In the light of what has been stated above, this point is also held in favour of petitioners-tenants.

    15. Since the finding on wilful default has been upheld, this revision petition is dismissed. No costs.

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    N. Sambandam And Another v. Saraswathi Ammal
    (Sep 15, 1983)