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Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

This appeal was brought by the plaintiff (appellant) against a judgment of affirmance dismissing his suit for recovery of possession. The plaintiff originally instituted the suit on December 14, 1965 seeking possession of the first floor, part of the ground floor and a tiled shed of premises No. 3/1A, Mahendra Road, Calcutta, which the defendant (respondent) had occupied as a monthly tenant at Rs. 110 per month (English calendar).

Key factual chronology in the record:

  • Defendant had been inducted into the premises prior to 1954.
  • On September 12, 1962 the defendant wrote a handwritten letter stating he would vacate the premises on the expiry of three years from that date.
  • On July 31, 1965 the plaintiff wrote to the defendant reminding him of that agreement; the letter was received but went unanswered.
  • On October 6, 1965 the plaintiff served a notice to quit which, as drafted, was expressed to be under Section 13(6) of the West Bengal Premises Tenancy Act, 1956 and Section 106 of the Transfer of Property Act, 1882; the plaintiff thereafter filed suit on December 14, 1965.

The defendant denied committing acts of waste and in his written statement alleged the September 12, 1962 letter had been given under persuasion and false assurances by the plaintiff (asserting fraud and that he was not a free agent). The defendant also pleaded that the plaintiff never accepted a surrender (if the letter was intended as such).

At trial the learned Munsif framed, among others, Issues No. 3, 7 and 8 (described below). The Munsif found the notice of October 6, 1965 to be valid but concluded the September 12, 1962 letter could not be treated as an agreement (because it was not bilaterally executed) and that allegations of waste were too vague. The trial court dismissed the suit.

On appeal the appellate court held that the September 12, 1962 letter did embody an expressed agreement to vacate after three years, but accepted the defendant’s allegations of fraud because the plaintiff failed to testify in rebuttal and an adverse inference could be drawn. The appellate court held the defendant obtained the letter by fraud and therefore the plaintiff could not rely on it; the appeal was dismissed. The present appeal by the plaintiff was subsequently dismissed with costs.

Legal Issues Presented

  1. Is the plaintiff entitled to a decree for ejectment against the defendant under Section 13(1)(b) and Section 13(1)(k) of the West Bengal Premises Tenancy Act?
  2. Was the defendant a free agent in writing the letter of agreement dated September 12, 1962 (i.e., was the letter induced by fraud or undue influence)?
  3. Has the tenancy of the defendant been determined by a valid notice to that effect?

Arguments of the Parties

Appellant's Arguments (Plaintiff)

  • The plaintiff relied on the September 12, 1962 letter as evidencing the defendant's agreement to vacate the premises after three years and served a subsequent notice to quit terminating the tenancy at the expiry of November 1965.
  • On appeal the plaintiff's counsel contended that the appellate court's finding of fraud against the plaintiff was unwarranted because no specific issue or particulars of fraud were framed in the pleadings; reliance was placed on the authority that general allegations of fraud are insufficient (Bal Gangadhar Tilak v. Shriniwas Pandit).
  • The plaintiff also argued (through cited authority) that a transaction tainted by fraud is voidable and, absent avoidance by the defrauded party, remains valid; the defendant did not take independent steps to avoid the contract and therefore could not collaterally challenge it (argument founded on the principle in Ningawwa v. Byrappa).

Respondent's Arguments (Defendant)

  • The defendant denied the allegations of waste and stated that the September 12, 1962 letter was written at the plaintiff's dictation after the plaintiff had importuned him and given assurances that the letter would never be used as a notice to quit; the letter was thus given under persuasion, in the context of a proposed sale and the landlord–tenant relationship.
  • The defendant alleged he was not a free agent when he wrote the letter and that the plaintiff practised fraud on him; he asked that the suit be dismissed.
  • At trial the defendant gave evidence in support of these averments and produced two supporting witnesses who, according to the appellate court, corroborated the circumstances in which the letter was written.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bal Gangadhar Tilak v. Shriniwas Pandit, 42 Ind App 135; AIR 1915 PC 7 That general allegations, however strong, are insufficient to amount to an averment of fraud of which any court ought to take notice. The appellant relied on this authority to argue the appellate court's finding of fraud was unwarranted because no specific issue or particulars of fraud were pleaded. The court addressed this contention by examining the pleadings and issues actually before it and whether the matter of coercion/fraud was within the ambit of the issues framed (Issue No. 7).
Ningawwa v. Byrappa Restatement of the principle that a contract induced by fraud is not void but voidable at the option of the defrauded party; until avoided the transaction remains valid. The appellant argued that because the defendant did not take separate steps to avoid the contract the defendant could not collaterally challenge it. The court responded that the defendant had sought to avoid the contract in his written statement (pleading avoidance in defence to the suit) and had acted within the limitation period, so a separate suit was unnecessary in the circumstances of the eviction proceeding.
Calcutta Credit Corporation Ltd v. Happy Homes (P) Ltd. Explains that once a notice is served determining the tenancy or showing an intention to quit on the expiry of the period of the notice the tenancy is at an end unless the parties agree to treat it as subsisting. The court applied this principle to hold that even if the September 12, 1962 letter were treated as a valid surrender or notice to quit, the plaintiff subsequently served a fresh notice (October 6, 1965) which was treated as determining the tenancy with expiry in November 1965; by serving the fresh notice the plaintiff effectively allowed the tenancy to continue beyond the earlier date unless there was acceptance of the earlier surrender.

Court's Reasoning and Analysis

The court's analysis proceeded along several lines grounded in the issues framed and the evidentiary record:

  1. Nature and enforceability of the September 12, 1962 letter:
    • The appellate court disagreed with the trial court's finding that the letter could not be an agreement simply because it was signed only by the defendant. The court observed that where a written instrument by the tenant indicates surrender, acceptance by the landlord need not be manifested by the landlord's signature if there is an overt act showing acceptance.
  2. Allegations of fraud and undue influence (Issue No. 7):
    • The defendant's written statement alleged that the letter was obtained by false assurances and persuasion; these averments, the court held, came within the ambit of Issue No. 7 (whether the defendant was a free agent) and were sufficient to raise a claim of avoidability under Section 19 of the Indian Contract Act (which makes contracts voidable where consent is caused by coercion, fraud or misrepresentation).
    • The court emphasized the plaintiff's failure to testify in rebuttal on this crucial factual issue. The plaintiff had the opportunity to personally disprove the defendant's account but did not appear; instead the plaintiff produced only his brother whose testimony did not directly address the assurances alleged to have been given to the defendant. The appellate court regarded the plaintiff's failure to testify as permitting an adverse inference against him.
    • Given the unchallenged testimony of the defendant and the supporting witnesses, and the plaintiff's non-appearance to rebut the fraud/undue-influence allegations, the court concluded that the letter was vitiated by fraud and undue influence and therefore unenforceable by the plaintiff.
  3. Avoidance of contract and limitation:
    • The court addressed the appellant's contention (based on Ningawwa v. Byrappa) that a defrauded party must elect to avoid the contract and that the defendant had not done so. The court noted that the defendant had pleaded avoidance in his written statement filed in the eviction suit and that the written statement was filed within the applicable limitation period once the plaintiff acted to take advantage of the letter (the plaintiff had manifested an intention to rely on the letter in mid-1965 and filed suit in December 1965).
    • Consequently, the court considered that a separate suit for avoidance was unnecessary because the defendant was defending an action that sought to enforce the impugned instrument and had raised the avoidability defence in that litigation.
  4. Interaction of the alleged surrender with the subsequent notice to quit:
    • The court noted that even if the September 12, 1962 letter were accepted as a surrender, the plaintiff later served a fresh notice (October 6, 1965) terminating the tenancy with effect from the expiry of November 1965. Relying on Calcutta Credit Corporation Ltd v. Happy Homes, the court explained that where a party serves notice determining the tenancy (or shows an intention to quit) the tenancy is at an end unless both parties agree to treat it as subsisting.
    • The consequence was that, by serving the October 6 notice and thereby treating the tenancy as subsisting up to November 1965, the plaintiff effectively acted inconsistently with an earlier surrender date and did not accept/act upon any earlier surrender to bring about termination earlier than November 1965.
  5. Findings of fact and appellate review:
    • The appellate court accepted the trial court's findings on certain factual issues (for example, that the plaintiff had not established waste under Clause (m) of Section 108 T.P. Act and that there was no case under Section 13(1)(b) as made out by the plaintiff). Where the appellate court disagreed with the trial court (e.g., on whether the letter could constitute an agreement despite being unilateral), it nevertheless found that fraud/undue influence rendered the instrument unenforceable and sustained dismissal of the suit.

Holding and Implications

Holding: The appeal is dismissed with costs.

Implications and immediate effect:

  • Because both the trial court and the appellate court found against the plaintiff on the substantive grounds on which he sought eviction (fraud/undue influence vitiating the September 12, 1962 instrument and insufficiency of proof of waste), the plaintiff is not entitled to an order for eviction on those bases.
  • The court recognized that, although the September 12, 1962 letter could constitute a unilateral surrender if accepted, the plaintiff later acted in a manner treating the tenancy as subsisting (by serving the October 6, 1965 notice) and therefore did not derive advantage from any earlier purported surrender.
  • No broader binding precedent was proclaimed beyond the application of established principles (e.g., Section 19 Indian Contract Act on avoidability for consent caused by fraud/undue influence, the need for a party seeking to rebut allegations of fraud to give evidence, and the effect of a subsequent notice determining tenancy). The decision applies the law to the facts of the case but does not announce a novel legal principle beyond those applications.

Note: All statements in this summary are extracted directly from and strictly limited to the content of the provided opinion.

    Gosto Behari Roy v. Ramesh Chandra Das .

    1. This is an appeal by the plaintiff from a judgment of affirmance. The plaintiff appellant instituted the suit on Dec. 14, 1965 for recovery of possession of the suit premises being the first floor and a portion of the ground floor and a tiled shed of premises No. 3/1A, Mahendra Road. Calcutta which the defendant respondent held as a monthly tenant under him at a monthly rent of Rs. 110/- according to English Calendar, The material allegations were that file defendant who was inducted in the suit premises prior to 1954 agreed by a letter in writing dated Sept. 12, 1962 to deliver vacant possession thereof on the expiry of three years from the date. The said letter written by the defendant by his own hand, is as follows :--

    " Sri G. B. Roy, LL. B., Advocate, 16A, Nandan Road, Calcutta-25.

    Dear Sir, Re: Portion of 3/1A, Mahendra Road, Calcutta-25 occupied by me as a tenant.

    I understand from Sri Jitendra Nath Mukherjee that you require vacancy of your house as aforesaid and you will be happy if I vacate it on the expiry of three years from date. As a gesture of good relation with you, 1 shall accordingly act. 3/1A, Mahendra Road., Calcutta-25. 12th September, 1962.

    Yours faithfully, Hamesh Chandra Das",

    2. The plaintiff sent a letter on July 31, 1965 to the defendant reminding him about the said agreement, which, it appears, was duly received but no reply was given. The defendant failed to deliver possession of the premises as aforesaid and was also guilty of acts of waste in the meantime in respect of the premises acting contrary to provisions of Clause (m) of Section 108 of the T. P. Act, 1882.

    3. The plaintiff served a notice to quit dated Oct. 6, 1965 directing the defendant to deliver vacant possession of the premises with the expiry of the month of Nov. 1965-This notice, as it reads, was one under Section 13 (6) of the West Bengal Premises Tenancy Act, 1956 as also under Section 106 of the T. P. Act, 1882 and thereafter the suit was filed as stated above.

    4. The defendant in his written statement denied the allegations of waste and in regard to his letter of Sept. 12, 1962 stated that as there was a mortgage suit in respect of the suit property being T. S. No, 48 of 1958 of the Fourth Court of the Subordinate Judge at Alipore, there was a proposal for sale of the property to him through the plaintiff's friend and the defendant's acquaintance Shri Jitendra Nath Mukherjee. As the sale price of Rs. 50,000/- was too high the proposal was not acceptable to him, Then the plaintiff stated that as it would be difficult to get the purchaser for a tenanted house, he requested the defendant importunately to give a letter to the effect that the defendant would vacate the suit premises on the expiry of three years. The plaintiff assured the defendant that he would be able to put off the disposal of the suit T. S. No. 48 of 1958 of the Fourth Court of the said Subordinate Judge and to get a purchaser of the house. He further assured the defendant that the said letter would never be treated as a notice to quit by him. The defendant could not disoblige the plaintiff and in good faith wrote the said letter at the dictation of the plaintiff in the presence of three gentlemen, two of whom were Sri Suresh Chandra Das and Sri Shudhanshu Majumdar while he had forgotten the name of the third gentleman. The written statement further proceeded to say that he was not a free agent in writing the said letter and the plaintiff practised fraud on him. In view of house scarcity particularly in respect of a house suitable to his pocket for the purpose of residence and practice as Chartered Accountant, he would not have set his foot on the trap laid by the plaintiff for him if he had any glimpse of the working of the mind of the plaintiff. It was further stated that the said letter, even if treated as a surrender of tenancy, in any event was not accepted by the plaintiff. The defendant also denied the allegations of committing acts of waste as contained in the provisions of Clause (m) Section 108 of the T. P. Act. It was accordingly submitted that the suit should be dismissed.

    5. In the trial the learned Munsif framed amongst others the following issues. "Issue No. 3. Is the plaintiff entitled to decree for ejectment against the defendant under Section 13 (1) (b) and Section 13 (1) (k) of the West Bengal Premises Tenancy Act? Issue No. 7. Was the defendant a free agent in writing the letter of agreement? Issue No. 8 -- Has the tenancy of the defendant been determined by a valid notice to that effect

    6. During trial the plaintiff did not examine himself but his brother Bash Behari Roy alone gave evidence in support of the plaintiff's case while the defendant examined himself as also Madan Gopal Chakraborty and Suresh Chaudra Das in support of his case. The learned Munsif held that the notice was valid and operative in law as it gave the tenant defendant requisite time to vacate terminating the tenancy on the expiry of the English Calendar month and there was also a threat of suit in case of non-compliance.

    7. In regard to the letter on Sept. 12, 1965 the learned Munsif held that the letter could Dot be treated as an agreement between the parties as it was not signed by both the parties. Further the letter was not acted upon as the plaintiff gave a notice of ejectment terminating the tenancy with the expiry of the month of November 1965. Accordingly it was held that the plaintiff was not entitled to get the decree for eviction under Section 13 (1) (k) of the Act. It was further held that the allegations of the acts of waste were too vague and the evidence failed short to give the plaintiff the decree on this ground. The suit was accordingly dismissed.

    8. On appeal the learned Judge held that though the letter of 12th Sept., 1962 Ext. 2 embodied express agreement on the part of the defendant to vacate the suit premises on the expiry of three years thereof, the finding of the trial Court that the letter was not an agreement not having been bilaterally executed was wrong. The learned Judge was, however, of opinion that in view of the allegations made by the defendant in respect of Ext. 2 that the plaintiff persuaded the defendant to write the letter on false assurances there was no satisfactory explanation why the plaintiff did not come to the witness box and deny on oath that he obtained from the defendant the Ext. 2 on false assurances. The Court was entitled to draw an adverse inference against the plaintiff and the learned Judge also accepted the evidence of the defendant and of Madan Chakraborty and Suresh Chandra Das who being then present knew the circumstances in which the letter Ext. 2 was written. It was accordingly held that the plaintiff obtained from the defendant the letter Ext. 2 by exercising fraud as alleged in the written statement and he could not take advantage of his own fraud nor could the defendant be evicted on that ground. The learned Judge concurred with the finding of the trial court that no case under Section 13 (1) (b) of the Act was made out. The appeal was accordingly dismissed.

    9. Mr. Ranjit Kumar Banerjee learned Advocate for the appellant contended that the appellate court's finding that there was fraud on the part of the appellant was unwarranted in law, as no issue was framed in respect thereof nor were the required particulars set out in the plaint. He referred to the decision in Bal Gangadhar Tilak v. Shriniwas Pandit, 42 Ind App 135 : (AIR 1915 PC 7) in which the Privy Council observed that general allegations however strong are insufficient even to amount to an averment of fraud of which any court ought to take notice.

    10. He further referred to the decision in Ningawwa v. Byrappa, in which the Court restated the established proposition of law that a contract or other transaction induced or tainted by fraud is not void, but only voidable at the option, of the party defrauded but until avoided the transaction is valid. Mr. Banerjee submitted that the defendant did not take any step to avoid the contract and he could not be permitted collaterally to challenge the agreement as tainted by fraud.

    11. The latter submission need not detain us long, as in the said decision it has been further stated that if it can be shown that the party defrauded has at any time after knowledge of the fraud either by express words or by unequivocal acts affirmed the contract, his election is determined for ever, but the party defrauded may keep the question open so long as he does nothing to affirm the contract, Further the limitation for bringing a suit under Article 95 (of 1908 Act) is three years from date of knowledge of fraud by the wronged party. In this case the plaintiff's action to take the benefit of the letter of Sept. 12, 1962 was disclosed as it appears in June 1965 as also by his letter of July 6, 1965 and the suit for eviction was filed by him on Dec. 14, 1965. The Defendant sought to avoid the contract in his written statement filed on May 24, 1966, well within the period of limitation, in answering the plaintiff's claim based on the impugned contract, In view of the suit filed by the plaintiff on a contract based on alleged fraud it is not necessary for the defendant to file a suit for avoidance of the contract as would otherwise be necessary.

    12. Section 19 of the Indian Contract Act, 1872 provides that a contract is voidable at the option of the party when his consent to an agreement is not free but is caused by coercion, fraud or misrepresentation. The averments in the written statement if true clearly indicate that the consent of the defendant to the agreement for vacating the suit premises was not free but caused by fraud. The issue on such averments that the defendant was not a free agent in writing the letter of agreement was comprehensive enough to cover case of fraud as the basis of the contract according to the defendant. As the unrebutted evidence establishes, the plaintiff assured that the impugned letter would never be utilised to the detriment of the defendant which as the plaint indicates was an act of deception. It could also be said that in the context of the relationship between the parties as landlord and tenant there was nothing unusual for the defendant to oblige, and, be dominated by, his landlord the plaintiff on the fact of his assurance for maintaining good relations with the landlord and such averments again were clearly within the ambit of issue No. 7 in the suit. Similar consideration for avoidability by wronged party of such contract induced by undue influence will prevail as in the case of contract obtained by fraud as indicated above.

    13. On the issue No. 7 the plaintiff has not come forward to give his testimony in rebuttal of the defence case for no ostensible reason. The plaintiff should have appeared himself to disprove the defence case that the writing WAS obtained by fraud or undue influence. Alternatively he should have prayed for examination of the defendant first to prove his case to enable him to adduce evidence in rebuttal. His only witness, his brother, had and could have no personal knowledge about the assurance alleged to have been given to the defendant about the disputed letter. On the other hand the defendant's evidence to that effect supported by D. Ws. 2 and 3 goes unchallenged and was rightly accepted by the court below in the said circumstances as contended by Mr. Bijitendra Mohan Mitra, learned Advocate for the defendant respondent. The plaintiff accordingly cannot take advantage of the fetter of Sept. 12, 1962 which is unenforceable in law being vitiated by fraud and undue influence.

    14. The learned trial court has further found that the agreement being a unilateral document signed only by the defendant could not be treated as an agreement in absence of the signature of the other party. The agreement of the nature we are concerned with, though it is to be in writing by the tenant under Clause (k) of Section 13 (1) is not required to be signed by the landlord in token of acceptance if there is any overt act indicating his acceptance thereof. There is no dispute that the disputed letter was accepted by the landlord, though it is said by the defendant for other purpose. Though it may be con-tended as we shall presently see that there was no real acceptance of the offer of surrender which was the purport of the letter, it is not necessary that there must be any writing by the landlord in token of accept-ance.

    15. Mr. Mitra has further drawn my attention to the finding of the trial court that the disputed letter was not accepted or acted upon by the plaintiff. If in fact the defendant surrendered the tenancy with effect from three years from Sept. 12, 1962 the relationship of landlord and tenant between the parties ceased to exist on the expiry of the said period and no notice determining the tenancy with the expiry of November 1965 was necessary. Further Sub-section (6) of Section 13 of the West Bengal Premises Tenancy Act, 1956 excludes any notice of suit when ejectment is sought for on grounds of Clauses (j) and (k) of Sub-section (1) of Section 13. The notice served on the defendant, as it expressly states, is both under Section 13 (b) of the said Act as also under Section 106 of the Transfer of Property Act. 1882. Of course eviction was also sought for on ground of Clause (b) of Section 13 (1), but by determining the tenancy with effect from the expiry of Nov. 1965, beyond Sept 12, 1965, the plaintiff allowed the original tenancy to continue or treated the tenancy as subsisting which according to his case, ceased and determined on the expiry of three years from the date of the letter. It was observed in Calcutta Credit Corporation Ltd v. Happy Homes (P) Ltd. as follows:--

    "Once a notice is served determining the tenancy or showing an intention to quit on the expiry of the period of the notice the teancy is at an end unless with the consent of the other party to whom the notice is given the tenancy is agreed to be treated as subsisting."

    The result was that even if the letter of Sept. 12 1962 is accepted as a valid notice of surrender of the tenancy, the same, by reason of Fresh notice allowing the tenancy to continue beyond the date of expiry, was not accepted or acted upon by the plaintiff and the original tenancy was treated as subsisting, as before though validly determined by the notice of Oct. 6, 1965.

    16. The plaintiff was accordingly entitled to a decree under Clause (b) of Section 13 (1) if established, but, as we have seen, both courts have found against him on this issue. The findings in respect thereof are binding on this court as findings of fact and eviction on this ground has not been pressed in this appeal,

    17. As all contentions raised by the appellant fail this appeal is dismissed with costs.

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    Comments

    Gosto Behari Roy v. Ramesh Chandra Das .
    (Feb 6, 1978)