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Smart Summary

Factual and Procedural Background

The plaintiff filed an application under Order 12 Rule 6 CPC seeking a decree for possession of the suit property. The tenancy was originally created by an unregistered lease deed dated 8.12.1976 for ten years, but it continued till 7.12.1995 through periodic rent increases. The tenancy was claimed to have terminated by efflux of time on 7.12.1995, after which the plaintiff ceased accepting rent or damages for use and occupation. Subsequently, the plaintiff served multiple notices under Section 106 of the Transfer of Property Act (TP Act) terminating the tenancy and demanding possession, including notices dated 12.12.1995, 28.2.1996, and 8.4.1997. The defendant requested an extension of tenancy in July 1996, which was not accepted by the plaintiff. Since the defendant failed to hand over possession, the plaintiff sought relief through this suit.

Legal Issues Presented

  1. Whether the tenancy terminated by efflux of time on 7.12.1995 or continued as a month-to-month tenancy thereafter.
  2. If the tenancy was month-to-month, whether a legal notice under Section 106 of the TP Act was required to terminate it.
  3. Whether the subsequent notices served by the plaintiff after efflux of time amounted to waiver of earlier notices or renewed the tenancy.
  4. The validity and effect of the notice dated 8.4.1997 terminating the tenancy.
  5. Whether the pecuniary jurisdiction of the Court is affected by the date of termination of tenancy or by the date when the landlord became entitled to damages or mesne profits.

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The tenancy was never renewed after 7.12.1995 as no rent was accepted post that date, indicating termination by efflux of time.
  • Occupation by the defendant after termination was unauthorized and tantamount to trespass.
  • The subsequent notices under Section 106 of the TP Act were issued as a precaution after failed negotiations for renewal.
  • The relationship of landlord and tenant, the termination of tenancy, and service of notices are admitted facts.

Respondent's (Defendant's) Arguments

  • The tenancy did not terminate by efflux of time but converted into a month-to-month tenancy after 7.12.1995.
  • The notice dated 12.12.1995 acknowledged the defendant as a tenant in illegal occupation, contradicting the claim of termination by efflux of time.
  • The service of the 28.2.1996 notice presumes continuation of tenancy on a month-to-month basis.
  • The plaintiff’s stand is contradictory and the later notices amount to waiver of earlier termination notices.
  • The tenancy continues and has not been validly terminated.
  • The validity of the notice dated 8.4.1997 is challenged, particularly in relation to the pecuniary jurisdiction of the Court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
ITDC Ltd. v. Chander Pal Sood & Son, 2000 (53) DRJ 96 (DB) : 84 (2000) DLT 337 Lease exceeding one year requires registered instrument; in absence, tenancy is month-to-month; notice under Section 106 TP Act required for termination. Applied to confirm that in absence of registered lease renewal, tenancy is month-to-month and can be terminated by notice; tenant's estoppel plea rejected as estoppel cannot operate against statute.
Bharat Petroleum Corporation Ltd. v. Khaja Midhar Noor & Ors., AIR 1988 SC 1470 Section 107 TP Act mandates registered instrument for lease exceeding one year; absence renders lease month-to-month. Relied upon to support that lease not registered is deemed month-to-month tenancy.
Deenar Builders Pvt. Ltd. v. Khoday Distilleries Limited, 2000 (52) DRJ 372 : 82 (1999) DLT 809 Unregistered lease treated as month-to-month tenancy terminable by notice under Section 106 TP Act. Supported the principle that lease not registered and tenancy continued by renewals is monthly tenancy terminable by notice.
Shukla Malhotra v. Vyasa Bank Limited, 1998 (45) DRJ 504 : 1998 III AD (Del) 628 Section 106 TP Act provides tenancy exceeding agreed period is deemed month-to-month tenancy terminable by 15 days notice. Applied to affirm that tenancy continuing beyond fixed term becomes month-to-month tenancy requiring notice for termination.

Court's Reasoning and Analysis

The Court examined the admitted facts that the landlord-tenant relationship existed and that the tenancy was initially created for ten years but continued beyond the original term without registered renewal. The Court noted that absence of a registered lease for a period exceeding one year results in the tenancy being construed as month-to-month, as per Section 107 of the TP Act and relevant precedents. The Court analyzed the sequence of notices served by the plaintiff terminating the tenancy, concluding that the tenancy terminated by efflux of time on 7.12.1995 and thereafter continued as a month-to-month tenancy.

Subsequent notices served under Section 106 TP Act were held to be valid terminations of the month-to-month tenancy and did not amount to waiver of earlier notices. The Court rejected the defendant's contention of waiver, emphasizing that the landlord did not accept rent or damages post expiry, indicating no renewal. The Court further clarified that the pecuniary jurisdiction of the Court is determined by the date when the landlord became entitled to damages or mesne profits, not the date of termination of tenancy or notices served.

Applying Order 12 Rule 6 CPC, the Court found no substantial dispute on facts or law that would prevent passing a decree for possession, as the relationship, termination, and notices were admitted and undisputed except for the validity of the last notice, which was upheld. The Court relied on prior authoritative decisions to support its conclusions, dismissing tenant defenses as irrelevant in light of admitted facts and statutory provisions.

Holding and Implications

The Court allowed the application and passed a decree for possession to be executable after two months from the date of the order.

The direct effect of this decision is that the plaintiff is entitled to possession of the suit property, confirming the termination of tenancy first by efflux of time and subsequently by valid notices under Section 106 of the TP Act. No new legal precedent was established; the ruling reaffirms established principles regarding unregistered leases, month-to-month tenancies, and the procedural application of Order 12 Rule 6 CPC for possession decrees on admitted facts.

    Rama Ghei v. U.P State Handloom Corpn..

    J.D Kapoor, J.— IA No. 1678/2000

    1. Through, this application under Order 12 Rule 6 CPC the plaintiff seeks a decree for possession in respect of the suit property in view of the admission as to relationship of landlord and tenant, rate of rent and termination of tenancy firstly by efflux of time and subsequently by way of notice under Sec. 106 of Transfer of Property Act.

    2. Put briefly, the relevant facts are as under:

    i) The tenancy in respect of the suit property was created on 8.12.1976 by way of an unregistered lease deed for a period of ten years but it continued till 7.12.1995 as it was renewed from time to time by way of increasing the rent; ii) the tenancy stood terminated by efflux of time on 7.12.1995 whereafter the plaintiff did not accept any rent or damage for use and occupation; iii) legal notice dated 12.12.1995 was served upon the defendant whereby the tenancy was terminated in terms of Section 106 of Transfer of Property Act (hereinafter referred to as TP Act) and the defendant was called upon to hand over the possession by the mid-night of 31.1.1996; iv) vide legal notice dated 28.2.1996 the tenancy was again terminated and the defendant was called upon to hand over the possession; v) Letter dated 4.7.1996 was written by the defendant to the plaintiff asking the plaintiff to further extend the tenancy for a minimum period of 3 years and for maximum period of 10 years. Reply alongwilh draft licence agreement to extend the tenancy for a period of 3 more years was sent. It remained unresponded as terms were not acceptable; vi) another notice dated 8.4.1997 was served whereby the tenancy was again terminated under section 106 of tp act and the defendant was asked to had over the possession by May, 1997. Since the defendant failed to hand over the possession, relief has been sought through instant suit.

    3. Main gravamen of the contentions of the counsel for the plaintiff in favour of decree of possession on strength of the aforesaid documents and admission of facts by the defendants is that the tenancy of the defendant was never renewed after 7.12.1995 as no rent was accepted by the plaintiff after that date as the tenancy stood terminated by efflux of time and the occupation of the defendant became that of a trespasser and it was by way of abundant precaution that the tenancy of the defendant was terminated by legal notices dated 28.2.1996 and 8.4.1997 as per provision of section 106 of the tp act because negotiations between the parties to extend the tenancy did not fruitify and the defendant failed to hand over the possession.

    4. Learned counsel for the defendant has assailed the legality of termination of the tenancy and validity of the notice dated 8.4.1997 It is contended that since the plaintiff served a notice dated 12.12.1995 stating therein that the defendant was in illegal occupation, and that his status after 7.12.1995 was that of a trespasser, there was no lease in respect of the said property as the tenancy got converted into month to month tenancy. Further the service of notice dated 28.2.1996 terminating the tenancy itself presumed that the defendant continued to be a tenant on month to month basis and to say that tenancy stood terminated by efflux of time on 7.12.1995 is legally not correct. Stretching this concept further, the learned counsel contends that the stand taken by the plaintiff is itself contradictory as on the one hand the plaintiff claims that the tenancy expired by efflux of time while on the other hand the legal notice dated 8.4.1997 terminating the tenancy was served and this amounts to waiver of the earlier notice or doctrine of termination of tenancy by efflux of time.

    5. According to the learned council the tenancy continues to be month to month and has till date not been terminated. At the outset, concept of waiver needs to be dealt with first, As per provisions of section 113 of the tp act the notice given under Section 111 stands waived with the express or implied consent of a person to whom it is sent showing the intention to lease as subsisting. Illustration (b) to the said Section is itself evident. A, the lessor, gives B, the lessee; notice to quit the property leased. The notice expires, and B remains in possession. A gives to B as lessee a second notice to quit. The first notice is waived.

    6. The moot question that arises for determination is whether the tenancy had expired by efflux of time or whether it was from month to month tenancy and in latter case whether a legal notice was required to be served under Sec. 106 of the TP Act or not.

    7. As regards the provisions of Order 12 Rule 6 a decree can be passed either on admission of facts or on question of law. In the instant case the relationship of landlord and tenant is not in dispute nor the service of notice dated 12.12.1995 is in dispute nor the service of subsequent notices though the validity of the last notice has been challenged. There is an unvarying unanimous current of opinion that once the relationship of landlord and tenant is established and termination of tenancy either by way of efflux of time or by way of notice of termination is not in dispute nothing survives in the defence of the tenant against the decree for possession.

    8. Almost similar question arose for consideration in I.T.D.C Ltd. v. Chander Pal Sood & Son, 2000 (53) DRJ 96 (DB) : 84 (2000) DLT 337 before the Division Bench of this Court. In the said case the landlord had filed a suit on 4.5.1998 against the tenant for recovery of possession and for damages/mesne profits for unauthorised use and occupation of flat No. 9, 3rd floor, New Delhi House, Barakhamba Road, New Delhi alleging therein that he was the landlord/owner of the suit premises which were in occupation of the tenant on a monthly rent of Rs. 5,000/-; although the tenancy Had expired by efflux of time on 13.4.1997 yet by way of abundant caution, fresh notice dt. 3.3.1998 was issued terminating the tenancy with effect from 31st of March, 1998 and calling upon the tenant to hand over vacant possession of the suit premises.

    9. In view of the admission as to the relationship, a decree for possession was sought under Order 12 Rule 6 CPC While referring to the provisions of section 106 of tp act that provide for duration of lease in the absence of written contract and Section 107 of the Act which provides that in case of a lease existing for a period of one year, it is required to be through registered instrument only it was held that in the absence of any instrument the lease has to be construed on month to month basis. In the said case, lease was for a period of 3 years commencing from 1st of May 1994. A plea was taken in the written statement that the parties had agreed to increase the rent at the rate of 10% every 3 years and since no fresh lease was executed after the expiry of the said lease the lease was construed as month to month basis and, therefore, could be validly terminated by giving 15 days notice. The plea of the tenant that the landlord was estopped from terminating the tenancy was not accepted for the reasons that there cannot be any estoppel against the statute. Reliance was placed on Burmah Shell Oil Distributing now known as Bharat Petroleum Corporation Ltd. v. Khaja Midhar Noor & Ors., AIR 1988 SC 1470 wherein it was observed that in view of the provisions of section 107 of the tp act, since the lease was for a period exceeding one year, it could only have been extended by a registered instrument executed by both the lessor and the lessee. In the absence of registered instrument, the lease shall be deemed to be “lease from month-to-month” as section 107 of tp act postulates that a lease of immovable property from year-to-year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument.

    10. In ITDC Ltd. case (supra) it was argued that the stand of the tenant that the tenancy had expired and terminated by efflux of time was not contradictory to the stand in the earlier suit where it was pleaded that vide notice dated 3rd of March, 1998 the tenancy was terminated w.e.f 31st of March 1998. It was held that such an argument can be of no help to the tenant. In the said case the landlord continued accepting the rent for several months after service of notice of termination and plea was also taken that notice should be waived. It was further held that in the face of the admission as to the relationship of landlord and tenant, the service of notice terminating the tenancy, the tenant was required to vacate the premises by the end of the tenancy and the fact that the tenancy was month to month basis there is nothing that survives in the defence of the tenant as a decree of possession could be passed on admitted facts. The other pleas raised by the defendants in the written statement were held to be of no relevance.

    11. Another case relied upon by the counsel for the plaintiff is Deenar Builders Pvt. Ltd. v. Khoday Distilleries Limited, 2000 (52) DRJ 372 : 82 (1999) DLT 809. A suit for possession was Filed by the landlord together with mesne profits and recovery of maintenance and other charges. Monthly rent was agreed to be increased by 15 percent on the expiry of 3 years in the event of lease being renewed. The renewals did take place from time to lime. However, the tenant stopped paying rent and as a sequel, the lease was terminated w.e.f 15.5.1992 There was evasive denial of the service of notice and also the date on which the cause of action arose. As many as 3 notices of termination were sent. Here too, a cryptic defence was taken that notice was not valid. The last notice was dated 18.3.1993 In the said case the lease was also not registered. Objection was raised that in the absence of unregistered lease deed the suit was not maintainable but no substance was found in the objection. The tenancy was held to be treated as monthly on which was terminable by notice as provided in Section 106 of the TP Act.

    12. In Shukla Malhotra v. Vyasa Bank Limited., 1998 (45) DRJ 504 : 1998 III AD (Del) 628, this Court has observed that as per section 106 of the tp act, the tenancy is terminable by a notice of 15 days if the tenant continues in possession of the property exceeding agreed period of tenancy as such a tenancy shall be deemed to be month to month tenancy.

    13. However, the contention of the learned counsel for the defendant with regard to the implied waiver of earlier notice by the plaintiff while giving the notice dated 8.4.1997 is mainly with regard to the pecuniary jurisdiction of this Court. According to the counsel if the lease notice is held to be valid notice then the quantum of damage and mesne profits will be assessable from the date of notice and the quantum so assessed will oust pecuniary jurisdiction of this Court. I am afraid this contention is wholly devoid of merit as once the tenancy is terminated by efflux of time and the tenant refuses to hand over the possession any subsequent notice served by the landlord calling upon the tenant to hand over the possession is merely a renewal of request to vacate the premises even if such a notice terminates the tenancy as per provisions of section 106 of tp act. It is the intention of the landlord which is to be seen and not the legal quagmire. The pecuniary jurisdiction is decided and determined not on the basis of the date of termination of tenancy but from the date when the landlord was entitled to receive damages or mesne profits or arrears of rent.

    14. However, the doctrine of waiver is not available in the instant case as the tenancy was firstly terminated by efflux of time and after the expiry of lease period it became a month to month tenancy. If at all there was any doubt left as to the termination of tenancy the same was removed by the act of the plaintiff in serving the respondent with another notice terminating the tenancy as well as calling upon to hand over the vacant possession. It is not the case where the landlord had renewed the tenancy at any subsequent point of lime. So much so the landlord was cautious enough not to accept even the damages for the use and occupation after the expiry of the tenancy by efflux of time. Until and unless the tenant had agreed to renew the tenancy as a result of negotiations between the parties any kind of negotiations between the parties or talks do not amount to extension of time or renewal of tenancy either by way of written document or orally.

    15. It is the factual position and ground reality that has to be borne in mind while dealing with such eventualities or situations. Had the tenancy in question not expired due to efflux of time the question of negotiations between the parties for creation of fresh tenancy or extension of the period would not have arisen. When the terms of fresh tenancy or extended tenancy as set up by the plaintiff were not accepted by the defendants the matter ended there. If the landlord either under legal advice or by way of abundant precaution sends notice after notice for termination of tenancy after expiry of tenancy by way of efflux of time, his intention is not to terminate the tenancy as many times as the notices are sent but his intention is to insist and impress upon the tenant to hand over the possession after the agreed period of tenancy had expired.

    16. In order to invoke the provisions of O. 12 R. 6 CPC the Court has to scrutinise the pleadings in their totality and ignore the evasive and unspecific denials either as to the relationship or as to the service of notice or as to the nature of tenancy. In the instant case the factum of admission of two notices sent prior to the negotiations for renewal of tenancy and the last notice after the negotiations fall through leads to following conclusions:

    i) That the tenancy in question stood terminated by efflux of time on 7.12.1995;

    ii) After termination of such tenancy, the tenancy became month to month tenancy;

    iii) The monthly tenancy was validly terminated by the notices dt. 1.2.12.1995, 28.2.1996 and 7.4.1996 There was no intention of waiver of notice nor was any intention to allow the defendant to continue in possession as a tenant; iv) The occupation of the tenant after 7.12.1995 was unauthorised.

    17. Aforesaid reasons persuade me to allow the application and pass a decree for possession which will be executable after two months from today. A decree sheet be drawn accordingly.

    IA stands disposed of.

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    Comments

    Rama Ghei v. U.P State Handloom Corpn..
    (Mar 15, 2001)