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Smart Summary

Court Opinion Summary — S.N. Shankar, J.

Factual and Procedural Background

This appeal challenges the Rent Control Tribunal's order dated 14 July 1969 affirming the Additional Rent Controller's eviction order against the appellant, Boota Ram. The respondent, Balmukand, purchased evacuee property No. 1780/1798 (Hardhran Singh Road, Karol Bagh, New Delhi) by sale-certificate dated 29 July 1959 and was declared owner with effect from 4 November 1957. On 23 January 1968 Balmukand filed an application under section 14(2)(h) of the Delhi Rent Control Act seeking eviction of Boota Ram on grounds including that Boota Ram had acquired another residence (plot No. F-81, Kirti Nagar) and had denied the landlord-tenant relationship despite becoming tenant by operation of Section 29 of the Displaced Persons (Compensation & Rehabilitation) Act, 1954 after the property's purchase.

Boota Ram contested. His first written statement did not raise that a prior notice terminating tenancy was required; on 27 November 1967 he applied to amend his written statement to add this plea, which the Additional Rent Controller allowed, and an amended statement was filed on 3 December 1967. The Additional Rent Controller, after evidence, found that Boota Ram had built on Kirti Nagar and had become a statutory tenant under Section 29, and on 28 May 1968 ordered recovery of possession. Boota Ram appealed; the Rent Control Tribunal agreed he had acquired another residence but disagreed that he was merely a statutory tenant. The Tribunal held no notice was required because the tenancy had been created before the Transfer of Property Act provision (section 106) came into force in the Union Territory of Delhi, and it affirmed eviction. The present second appeal challenges that Tribunal order.

Legal Issues Presented

  1. Whether a notice terminating the tenancy was necessary before the landlord could seek eviction in court where the occupier had become a tenant by operation of Section 29 of the Displaced Persons (Compensation & Rehabilitation) Act.
  2. Whether a person who occupies premises as an allottee or licensee under the Custodian and who is made a tenant by operation of Section 29 is a statutory (non‑contractual) tenant for whom prior notice is unnecessary.
  3. Whether the tenant (Boota Ram) had waived any right to require a notice of termination by failing to raise that objection in his original written statement and only seeking amendment after over two years.

Arguments of the Parties

Appellant's Arguments (Boota Ram — represented by Shri Ravinder Sethi)

  • The Tribunal erred in holding that no notice of termination was necessary; a reasonable notice is required before a monthly tenancy can be determined.
  • Relied on the Division Bench decision in Batto Mal v. Rameshwar Nath (1970 R.C.J. 635) which held that, although section 106 of the Transfer of Property Act was made applicable to Delhi from 1 December 1962, the underlying principle (a reasonable notice for termination) applied earlier and generally a reasonable notice of about 15 days was essential to determine a monthly tenancy.
  • Relied on authorities (including decisions referred to in Batto Mal) distinguishing the right to possession (arising on termination) from the right to recover possession through court; conclusion being that tenancy must be terminated before a right to recover possession accrues.

Respondent's Arguments (Balmukand — represented by Shri K. R. Gupta)

  • Boota Ram was only a statutory tenant (not a contractual tenant) by operation of Section 29 of the Displaced Persons Rehabilitation Act, and therefore no prior notice of eviction was necessary.
  • Alternatively, the tenant had waived his right to notice because he did not raise that objection in his first written statement and only sought to amend his statement after over two years; therefore the plea should be treated as waived.
  • Relied on precedents (Kedar Das v. Jaisa Ram; Harbans Lal v. Ram Dhan) said to support the proposition that certain categories of occupants (licensees/allottees) remain statutory tenants and on the distinction between tenancy and licence (Dr. H.S. Rikhi v. New Delhi Municipal Committee) to argue that Section 29 would not convert a licensee into a tenant in a way that requires notice.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Batto Mal v. Rameshwar Nath (1970 R.C.J. 635) Held that the principle underlying section 106 of the Transfer of Property Act (requiring reasonable notice to determine monthly tenancy) applied to Delhi even before the formal applicability date; a reasonable notice (about 15 days) is essential to determine a monthly tenancy. The court regarded this authority as supporting the appellant's contention that a notice terminating the tenancy was necessary before seeking eviction; it described the submission based on this authority as having force and relied on it in its analysis.
Noriken India Caterers Pvt. Ltd. v. State of Punjab (Supreme Court) Supreme Court observations relied upon in Batto Mal to the effect that rent control legislation did not necessarily deprive tenants of pre-existing protections under Transfer of Property Act provisions. The court referenced the Noriken observations (as used in Batto Mal) to support the proposition that pre-existing protections under the Transfer of Property Act continue to apply and thus bolster the requirement of notice.
Bhajya Punjalal Bhagwandin v. Dave Bhagwat Prasad Prabhuasad Principle distinguishing the right to possession (arising on termination of tenancy) from the right to recover possession (which accrues when tenant fails to hand over possession), used to show the necessity of terminating tenancy first. The opinion cited this distinction to support the conclusion that tenancy must be terminated before the landlord can acquire a right to recover possession by court proceedings.
Kedar Das v. Jaisa Ram (1967 69 P.L.R. 499) Held that a person in possession as a licensee/allottee before transfer may, by operation of Section 29 of the Displaced Persons Act, be deemed a tenant of the purchaser; the section applies to persons “in lawful occupation of the transferred property”. The respondent relied on this decision to argue that prior notice was unnecessary for a statutory tenant. The court examined the case and concluded its factual differences (in particular that Boota Ram paid rent after purchase) meant Kedar Das did not support the respondent's position in this instance.
Harbans Lal v. Ram Dhan (1967 68 Supp. P.L.R. 652) Followed the reasoning in Jaisa Ram's case (Kedar Das). The court noted this case simply followed Jaisa Ram's reasoning and similarly did not assist the respondent on the facts before the court.
Dr. H. S. Rikhi v. New Delhi Municipal Committee (A.I.R. 1962 S.C. 564) Authority on the conceptual distinction between tenancy and licence. The respondent invoked this distinction, but the court held it irrelevant because Section 29 expressly covers persons in lawful occupation (including licensees or allottees) and deems them tenants for purposes of the Act.
State of Bombay v. Pandurang Vinayak (1970 R.C.J. 724) Principle that a statutory fiction created by the word “deemed” must be given full effect and carried to its logical conclusion. The court relied on this authority to support its view that Section 29's deeming provision must be given full effect so that lawful occupants become tenants by operation of law.
Manohar Lal v. Sadhu Ram Authority referenced in connection with the question of waiver (that waiver must be clear, voluntary and proved by evidence). The court cited this authority while rejecting the submission that Boota Ram had waived the objection to want of notice; it treated waiver as a question of fact requiring clear proof, which was absent here.

Court's Reasoning and Analysis

The court's analysis proceeded in the following sequence:

  1. The court accepted the appellant's primary contention that a notice terminating tenancy was necessary before the landlord could claim eviction. It observed that earlier law on the point had been obscure, but that the Division Bench decision in Batto Mal (supported by Supreme Court observations in Noriken) clarified that tenants retained pre-existing protections under the Transfer of Property Act and that a reasonable notice is required to determine a monthly tenancy.
  2. The court distinguished between the right to possession (which arises on termination of tenancy) and the right to recover possession by legal process (which accrues if possession is not surrendered), relying on the cited authorities to conclude that termination (by notice) is a precondition to a right to recover possession.
  3. Addressing the respondent's contention that Boota Ram was only a statutory tenant (so no notice needed), the court examined Section 29 of the Displaced Persons Rehabilitation Act. It noted that Section 29 applies to “every person who is in lawful occupation of the transferred property” and makes no distinction between licensee or allottee; such persons are to be “deemed” tenants of the transferee. The court held that this statutory deeming creates a legal fiction that must be applied and carried to its logical conclusion.
  4. The court considered authorities relied upon by the respondent (Kedar Das / Jaisa Ram and Harbans Lal). It explained that those authorities were decided on their specific facts — for example, in Kedar Das the person had not paid rent and persistently repudiated the purchaser's title, and thus remained a statutory tenant in a particular sense. The court found those factual circumstances different from the present case (where Boota Ram did pay rent to Balmukand after purchase), and therefore those cases did not support the respondent here.
  5. On the view that a licensee/ allottee is conceptually different from a tenant (relying on Rikhi), the court concluded that the distinction was irrelevant because Section 29 expressly covers lawful occupants including licensees and deems them tenants.
  6. Concerning waiver, the court treated waiver as a question of fact requiring clear and conscious relinquishment of a right. It found no evidence that Boota Ram had waived the right to require notice. The fact that he sought to amend his written statement to raise the want-of-notice plea was affirmative evidence that he had not waived the objection; the plea of waiver had not been taken by the respondent below.
  7. On these bases the court concluded that the respondent was obliged to terminate the tenancy by notice before seeking eviction and that the impugned order (which proceeded without such a notice) was not sustainable in law.

Holding and Implications

Holding:

SAO 341 of 1969 is accepted; Appeal allowed.

Immediate consequences and practical effect:

  • The order of eviction as affirmed by the Rent Control Tribunal and initially granted by the Additional Rent Controller was set aside because the landlord was bound to give a notice terminating the tenancy before seeking eviction.
  • The parties were directed to bear their own costs.

Broader implications:

The opinion applies existing principles (including the effect of Section 29 of the Displaced Persons Rehabilitation Act and the protection in practice afforded by the Transfer of Property Act principles as explained in Batto Mal) to the facts before the court. The judgment principally decides the matter between the parties on those legal grounds; the opinion does not purport to announce a new general precedent beyond its application of existing authorities to the facts of this case.

Note: This summary is confined strictly to the facts, arguments, authorities and reasoning explicitly contained in the provided opinion and does not add information beyond that text.

    Boota Ram v. Balmukand .

    S.N Shankar, J.:— This appeal is directed against the order of the Rent Control Tribunal dated July 14, 1969, affirming the order of the Additional Rent Controller directing eviction of appellant Boota Ram. Balmukand, the respondent in this appeal purchased evacuee property No, 1780/1798 situated at Hardhran Singh Road, ward ‘No, XVI Karol Bagh, New Delhi by means of a sale-certificate granted in his favour by the Rehabilitation Deptt. on July 29, 1959 declarirg him to be an owner with effect from November 4, 1957 On January 23, 1968, he filed an application under section 14(2) (h) of the Delhi Rent Control Act claiming eviction of the tenant appellant from the premises in his occupation which formed a part of the above property on the ground that the tenant had built a residence in Kirti Nagar on plot No. 81, Block F’ and that the tenant had denied the relationship of landlord and tenant between the parties even though after the purchase of the property by him (Balmukand) the respondent, Boota Ram who occupied the premises as an allottee of the Custodian had become his tenant by operation of section 29 of displaced persons (compensation & rehabilitation) act, 1954, hereinafter called the displaced persons rehabilitation act. Boota Ram contested this application. In the first written statement filed by him he did not raise the plea that a notice terminating his tenancy was necessary and the eviction application without notice was incompetent but on November 27, 1967, he prayed for permission to amend his written statement to raise this plea. The application was accepted by the learned Additional Rent Controller, On December 3, 1967, be thus filed an amended written statement incorporating this plea, The learned Additional Rent Controller, after recording evidence came to the conclusion that Balmukand had succeeded in proving that Boota Ram had built a construction on plot No. F. 81, Kirti Nagar, as alleged by him and that by operation of Section 29 of the Displaced Persons Rehabilitation Act, Boota Ram had become a statutory tenant and was not contractual tenant. With these findings, on May 28, 1968, he granted an order for recovery of possession against Boota Ram, Aggrieved from this Boota Ram went up in appeal. The learned Rent Control Tribunal by the impugned order concurred with the finding of fact arrived at by the learned Additional Rent Controller that Boota Ram had acquired another residence for himself, but disagreed with the view that he was a statutory tenant. He, however, held that no notice for determining his tenancy was required because the tenancy in his favour had been created before the Transfer of Property Act, 1882 came into force and in this view maintained the order of eviction and dismissed the appeal. This second appeal is directed against this order.

    2. Shri Ravinder Sethi, the learned counsel appearing fox Boota Ram has urged that the learned Tribunal was in error in holding that the notice for eviction was not necessary. He placed strong reliance on the Division Bench decision of this caurt in Batto Mal v. Rameshwar Nath etc . 1970 R.C.J 635. where it has been held that though the povisions of section 106 of the Transfer of Property Act, 1882, were made applicable to the Union Territory of Delhi with effect from 1st December, 1962, but even before that date the principle underlying it was applicable to Delhi and as a rule of justice, equity and good conscience a reasonable notice of about 15 days (even if it did not expire by the end of the month of tenancy) was essential to datermine a monthly tenancy

    3. The submission of Shri Sethi has force. Previously, the law on the point whether a notice terminatirg the tenancy was or was not necessary before filing of the application of eviction of the tenant appeared to be little obscure in view of a line of decisions taking the view that the Rent Acts were a complete code in themselves and termination of tenancy before seeking eviction of the tenant from the Tribunals constituted under the Act was not necessary. Relying on the observations of the Supreme Court in Noriken India Caterers Private Ltd State of Punjab2 the Division Berch in Batto Mal's case held that Rent Control legislation did not deprive the tenant of the pre-existing protection enjoyed by him under section 10b of the Transfer of Property Act, 1882. On the basis of Bhajya Punjalal Bhagwandin v. Dave Bhagwat Prasad Prabhuasad,3 it further said that right to possession was to be distinguished from the right to recover possession. The right to possession, it was observed, arose when the tenancy was determined and then followed the right to recover possession which accrued when the tenant failed to hand over possession as he was bound to do lender law on the termination of his tenancy and the necessity arose to recover possession through court. After referring to the other decisions of the Supreme Court, the bench in conclusion held that no distinction could there be made between the tenancy which commenced before the provisions of section 106 of the Transfer of Property Act come into force in the Union Territory of Delhi and the tenancy that came into being after the coming into force of this provision In both cases, it was necessary for the landlord to terminate the tenancy of the tenant before the right to recover possession through court could accrue to him. The authority fully supports Mr. Sethi's contention.

    4. Shri K R. Gupta, appearing for Balmukand, respondent, however, strenuously urged that in this case Boota Ram was only a statutory tenant and not a contractual tenant and no notice of eviction was, therefore, necessary to terminate his tenancy. He also urged that in the fact of this case, the appellant should have been held to have waived his right to the notice of ejectment because he did not take this objections in the first written statement filed by him and that it was only after the lapse of over two years that he moved the Additional Rent Controller for amendment of his written statement, to incorporate this plea. In these circumstances, the learned counsel urged, even if it be assumed that such a notice was necessary it should be held to have been waived by the tenant appellant.

    5. In support of the first condition, the learned counsel placed reliance on Kedar Das v. Jaisa Ram . 1967 69 P.L.R 499. and Harbans Lal v. Ram Dhan . 1967 68 Supplementary P.L R. 6S2.. In Kesar Dass's case the house of which the premises in suit formed a part was an evacuee property which was originally allotted to the respondent Jaisa Ram on his undertaking to pay Rs. 6/8- per mensem to the Custodian Subsequently, the portion shown in red in the plan filed in this case was taken out of his possession and allotted to Kesar Dais, appellant, in consideration of Rs. 2/7/- per mensem. The remaining portion continued with Jaisa Ram. Subsequently, the entire house was purchased by Jaisa Ram and he became its owner. An appeal preferied by Kesar Dass against this order of transfer in favour of Jaisa Ram was dismissed by the Settlement Commissioner, Jaisa Ram duly intamated Kesar Dass of these facts but he refused to recognize the title of Jaisa Ram and also refused to pay him anything by way of rent or for use and occupation of the premises. In this situation Jaisa Ram, on December 66, 1969, applied for ejectment of Kesar Dass under section 13 of the Urban Rent Restriction Act on several gourds including non-payment of rent. Kesar Dass pleaded that there was no relationship of landlord and tenant between him and Jaisa Ram On this plea, Jaisa Ram withdraw his application for ejectment and served a notice on Kesar Dass that the licence in his favour in respect of the permises stood terminated and called upon him to hand over its vacant possession. On the failure of Kesar Dass to comply with this notice, he filed a suit for possession of the property with the plea that Kesar Dass had no right or interest in the property and was not entitled to remain in its possession as he had originally entered into possession as a licensee under the Custodian and his license stood revoked He also pleaded that this licence in favour of Kesar Dass also stood revoked because of the latter's repudiation of Jaisa Ram's title in the property. An argument was advanced in this case before the Court that Keshar Dass had originally occupied the property not as a tenant under the Custodian but as an allottee, who, according to the definition of the word giver in the Evacuee Property Act meant nothing more than a licensee. Dealing with this plea, on page 503 of the report, the court observed as under:—

    “Even if it be accepted that before the property was purchased by the respondent, Kesar Dass was in its possession as a mere licensee, his case will still be covered by section 29 of the Displaced Persons (Compensation and Rehabilitation) Act, and he can claim the status of a tenant under the purchaser of the property as this provision is not confined to a tenant under Custodian, but to every person who is “in lawful occupation of the transferred property”, and such a person in lawful occupation is to be deemed a tenant.”

    6. In this case the court observed in para 12 that after Jaisa Ram had acquired property from Rehabilitation Department Kesar Dass being previously in possession as an allottee or a licensee under the Custodian by virtue of sub-section (1) of Section 29 of the Act, became a tenant under Jaisa Ram but since he persistently refused to acknowledge Jaisa Ram as his landlord and never paid rent to him. his status remained that of a statutory tenant only in the sense that he was entitled to the protection under Section 29 for two years. These observations do not at all help Balmukand because in the instance case it is not denied that after the purchase of this property by him Boota Ram did actually pay rent to him Besides the above observations strenuously relied upon were made in the judgment only in the context of the facts of the case and for determination of the question whether rights could be inherited by the legal representatives of Kesar Dass. Jaisa Ram's case thus cannot be relied upon for the proposition set up. The same considerations apply in the second case of Harbans Lal v. Ram Dhan, cited by Shri Gupta. In this case, Jaisa Ram's case was simply followed.

    7. Shri K.R Gupta, then urged that Boota Ram was simply a licensee in respect of the premises and not a tenant of the Custodian and therefore, the provisions of Section 29 of the Displaced Persons Rehabilitation Act will not make him a tenant. Relying on Dr. H S. Rikhi v. New Delhi Municial Committtee . A.I R. 1962 S.C 564. the learned counsel urged that the concept of tenancy is wholly different from that of a licence and distinction should, therefore, be made between the two. I am unable to see how this difference is of any relevancy in the context of the point in issue. Section 29 covers the case of all persons in lawful possession of any immovable property of the class notified in sub-section (2) of Section 29 which is transferred to another person under the provisions of this Act and makes no distinction between a licensee or an allottee. Both these persons are lawful occupants of property within the meaning of Section 29 of the Displaced Persons Rehabilitation Act After the transfer of the property in their occupation this provision says that they would be deemed to be tenants of the transferee in respect of the property in their respective occupation. The word deemed’ in the section creates a legal fiction and the court is bound to give full effect to it. Reference in this connection may be made to State of Bombay v. Pandurang Vinayak . 1970 R.C.J 724 where it was held that when a statute enacts that something shall be deemed to have been done, which in fact and truth was not done, the court is entitled and bound to ascertain for what purposes between what persons the statutory fiction is to be resorted to and thereafter full effect must be given to the statutory fiction and it should be carried to its logical conclusion.

    8. I am, therefore, of the opinion that the appellant had become a tenant of the respondent by operation of law and had been paying rent him as such and the respondent was bound to terminate his tenancy before the right to claim eviction could accrue to him,

    9. Coming now to the second contention of Shri Gupta, I find that the plea of waiver urged was no where taken by the respondent either before the Additional Rent Controller or before the Rent Control Tribunal Waiver is essentially a question of fact. It has to be conscious and deliberate. The submission that because the appellant had not taken the plea of want of notice in the first written statement and that the same was taken by him only after the lapse of over two years in the amended written statement does not by any stretch lead to the conclusion that there was waiver of this plea on the part of Boota Ratr. The word ‘waive’ according to Wharton's Law Lexin means to forego, decline to take advantage of. Until and unless it is clearly proved to the satisfaction of Court that the person having the right conclusively decided to forego it or take advantage of it waiver is not to be inferred. Waiver is a deliberate and conscious act no distinguished from estoppel which may be created by law. Whether the objection has been waived or not in a given case is a question which has to be decided on the direct as well as circumstantial evidence available on the record. The fact that Boota Ram sought to get his written statement amended to incorporate this plea specifically is an indication to the contrary and shows that he did not waive this plea even at the stage of trial. Reference in this connection may also be made to Manohar Lal v. Sadhu Ram. It is, therefore, not possible to sustain the submission of Shri Gupta that Boota Ram had waived the plea of notice. In view of the above discussion I have no hesitation in holding that a notice terminating the tenancy of the appellant was necessary before the application claiming his eviction and the order passed in this case is not sustainable in law.

    10. S.A.O 341 of 1969 is, therefore, accepted but the parties are left to bear their own costs.

    11. Appeal allowed.

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    Comments

    Boota Ram v. Balmukand .
    (Oct 21, 1970)