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Lekhraj Diddi v. Sawan Singh
Structured Summary of the Opinion (Pandey, J.)
Factual and Procedural Background
The opinion arises from a reference by Bhave, J., doubting the correctness of two earlier decisions of the Court. There are three civil revisions before the Court: Civil Revisions Nos. 168, 203 and 204 of 1970.
Summary of the underlying dispute (as recounted by Bhave, J.): Sardar Sawan Singh (the applicant) obtained a registered sale deed dated 6 December 1963 for Rs. 40,000 from Lekhraj Diddi (the non-applicant). The applicant alleged that the premises so purchased were given to the non-applicant on rent; the non-applicant defaulted in payment and the applicant sued for ejectment and arrears of rent (Civil Suit No. 16-A of 1969). The non-applicant denied that he was a tenant and pleaded that the sale deed was nominal and that monthly payments were interest on a loan of Rs. 40,000. Issues Nos. 3 to 5 were framed in the trial court dealing with those pleadings.
Procedural history: On 23-12-1969 the applicant filed an application under Order 14, Rule 1 CPC to assert that Issues Nos. 3–5 were irrelevant; the trial Court rejected it by order dated 9-1-1970. On 10-1-1970 the applicant filed an application under Order 6, Rule 16 CPC to strike out passages in the written statement that questioned the applicant's title; that application was dismissed by order dated 31-1-1970. Civil Revisions Nos. 203 and 204 of 1970 challenge these two orders. Separately, the non-applicant had earlier filed a suit (No. 9-A of 1969) seeking declaration that the sale deed was not to be acted upon; because that was an earlier suit the non-applicant applied under Section 10 CPC to stay the subsequently filed ejectment suit; the trial Court refused to stay, and Civil Revision No. 168 of 1970 challenges that refusal.
Legal Issues Presented
- Whether earlier decisions (Sk. Rashid v. Hussain Bakash, AIR 1943 Nag 265 and Purushottamdas v. Gulabchand, Civil Revision No. 679 of 1966) require reconsideration as laying down incorrect law.
- Whether Section 10 of the Code of Civil Procedure (CPC) applied so as to stay the later ejectment suit when an earlier suit relating to the sale deed was pending (i.e., whether the question of tenancy was directly and substantially in issue in the earlier suit).
- Whether, in a suit for ejectment and arrears of rent, issues and pleadings dealing with the lessor's title (or subordinate evidentiary matters about the sale deed) are admissible or should be struck out under Order 6, Rule 16 and/or not framed under Order 14, Rule 1 of the CPC.
- What is the correct application of Section 116 of the Evidence Act where a tenant denies the contract of tenancy — does Section 116 estop a tenant from denying the landlord's title when the tenancy itself is denied?
Arguments of the Parties
Applicant / Landlord (Sardar Sawan Singh)
- Applied under Order 14, Rule 1 CPC that Issues Nos. 3–5 (framed on parts of the written statement) were irrelevant and should not be tried.
- Applied under Order 6, Rule 16 CPC to strike out portions of the defendant's written statement which questioned the applicant's title, on the ground that such pleas about title were foreign to a landlord–tenant suit.
- Maintained, according to the Court's description, a position that Section 116 of the Evidence Act prevented the tenant from denying or leading evidence about absence of the landlord's title (a position the Court characterised as untenable when tenancy itself was denied).
Non‑applicant / Tenant (Lekhraj Diddi)
- Denied that a contract of tenancy existed and pleaded that the sale deed was nominal and the monthly payments were interest on a loan; in substance asserted the transaction was a loan and not a tenancy.
- Filed an earlier suit (No. 9-A of 1969) seeking declaration that the sale deed was not to be acted upon (i.e., to establish the nominal character of the deed).
- Applied under Section 10 CPC to stay the subsequent ejectment suit on the basis that common issues were involved between the earlier suit and the later ejectment suit.
- Advanced (as described by the Court) a position that a disputed relevant fact (for example, the character of the sale deed) could itself be the subject-matter of an issue — a position the Court treated as untenable to the extent it conflated material facts with subordinate evidentiary facts.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Sk. Rashid v. Hussain Bakash, AIR 1943 Nag 265 | Evidence about the nature of a sale deed is relevant to the question whether there was an oral lease (under Section 11(2) Evidence Act); a genuine sale coupled with continued possession makes an oral lease more probable; a bogus sale may make a purported oral lease improbable. | The Court relied on this authority to show that evidence about title or the nature of the sale deed may be relevant to prove or disprove a disputed contract of tenancy, but such matters are evidentiary and do not convert the suit into one primarily concerned with title. |
| Purushottamdas v. Gulabchand, Civil Revision No. 679 of 1966 (decided 30-8-1967) | In a suit founded on landlord–tenant relationship where the tenant denies the relationship, the burden is on the plaintiff to establish the relationship; the defendant may rebut and show the transaction was other than what appears. | The Court cited this case to support the proposition that evidence about the nature of the transaction may be used to disprove tenancy, but this does not convert the suit into one about title and no declaration on title should be made in the ejectment suit. |
| Munnalal v. Balchand, 1961 MPLJ 221 | The scope of a suit by a landlord for possession from his tenant is limited; the court will not go into the question of the landlord's title on the date of the contract of tenancy except incidentally to determine whether the contract was made. | The Court applied this authority to hold that in an ejectment suit between original parties the question of the landlord's title is generally outside the scope of the suit; the directly and substantially in issue matter is the contract of tenancy. |
| Lalchand v. Ramsingh, 1942 Nag LJ 136 | Section 116 of the Evidence Act estops a tenant from disputing the title of the landlord at the date of the lease, but this presupposes that the person affected by the estoppel is actually a tenant (i.e., tenancy is admitted or proved). | The Court cited this to explain that Section 116 estoppel arises only when tenancy is admitted or proved; if tenancy is denied the tenant is not estopped from challenging matters relevant to proof of tenancy. |
Court's Reasoning and Analysis
The Court proceeded by addressing the issues in sequence and explaining the legal principles that govern landlord–tenant suits where the nature of a registered sale deed and the existence of tenancy are in dispute.
- Reconsideration of earlier decisions: The Court determined that the earlier decisions (Sk. Rashid and Purushottamdas) did not state incorrect law and therefore did not require reconsideration.
- Section 10 CPC and the stay application: The Court examined the earlier suit (No. 9-A of 1969) and found that it related only to the sale deed and did not directly and substantially raise the question of a contract of tenancy. Because the tenancy question was the only controversial matter directly and substantially in issue in the subsequent ejectment suit (No. 16-A of 1969), Section 10 CPC did not apply to stay the later suit. On that basis the refusal to stay was upheld and Civil Revision No. 168 of 1970 was dismissed.
-
Scope of an ejectment suit and title evidence: The Court reiterated the settled rule (citing Munnalal) that the basis of an ejectment suit is the contract of tenancy; the court will not ordinarily decide questions of the landlord's title, though evidence of title may be admissible incidentally to resolve whether a tenancy was made. The Court explained both possible scenarios:
- If the tenant admits the contract of tenancy but denies the landlord's title, such a denial is (in the sense contemplated by Section 116 Evidence Act) not open to the tenant; and in any event it is not relevant to the determination of the suit's core issue once tenancy is admitted.
- If the tenant denies the contract of tenancy, the landlord cannot rely merely on any admission of title to succeed; the landlord must establish the contract of tenancy.
- Application of Section 116 Evidence Act: The Court clarified that Section 116 estoppel applies only when tenancy is admitted or proved; it does not bar a person who denies the tenancy from leading evidence about the nature of the sale deed or title when such evidence is relevant to proving or disproving the disputed contract of tenancy.
- Pleading versus evidentiary material, and the framing of issues: The Court emphasized the distinction between facta probanda (material facts to be alleged) and facta probantia (evidentiary facts). Order 6, Rule 2 CPC requires pleadings to contain material facts (facta probanda) not the subordinate evidentiary facts. Order 14, Rule 1 requires issues to relate to material questions of fact or law (facta probanda), not to the evidence by which those facts are proved. The Court noted that the trial court had framed Issues Nos. 3–5 on subordinate evidentiary facts (for example the alleged nominal character of the sale deed and monthly payments being interest disguised as rent) and declined to strike them out; the Court found that framing issues on such evidentiary matters was improper.
- Resulting conclusion about the trial court orders: Because the trial court had wrongly framed and refused to strike out issues based on subordinate evidentiary facts, the Court held that such orders could not be sustained. The Court therefore allowed Civil Revision No. 204 of 1970 (which challenged the order dated 9-1-1970 refusing to delete the issues), set aside that order, and directed the lower court to dispose of the application under Order 14, Rule 5 afresh in light of the Court's observations. Civil Revisions Nos. 168 and 203 of 1970 were dismissed.
Holding and Implications
Holding (core ruling): Civil Revisions Nos. 168 and 203 of 1970 are dismissed; Civil Revision No. 204 of 1970 is allowed; the order dated 9-1-1970 is set aside and the lower Court is directed to dispose of the application under Order 14, Rule 5 of the Code afresh.
Implications:
- The immediate consequence is that the trial Court's order refusing to omit Issues Nos. 3–5 (which the appellate court found to be framed on subordinate evidentiary facts) has been set aside and must be reconsidered in accordance with the appellate court's guidance on the distinction between material facts and evidentiary facts.
- The application under Section 10 CPC to stay the later ejectment suit was correctly refused because the earlier suit did not directly and substantially raise the tenancy question; Civil Revision No. 168 fails.
- The Court affirmed (rather than overturned) the legal principles stated in Sk. Rashid v. Hussain Bakash and Purushottamdas v. Gulabchand concerning the admissibility of evidence about a sale deed when tenancy is disputed; those authorities stand and do not require reconsideration according to this opinion.
- The Court directed that the parties bear their own costs of the three revisions; no new binding precedent altering the law was announced — the Court clarified and applied existing principles governing pleadings, framing of issues and the limited scope of ejectment suits.
Order: As above; order accordingly.
Pandey, J.:— This revision and two others, namely, Civil Revisions Nos. 203 and 204 of 1970, come before us on a reference made by Bhave, J. who has doubted the correctness of two earlier decisions of this Court. Before referring to the precise points in controversy, it is necessary to recall the facts of the case in the words of Bhave, J. himself:
“The facts of the case, in brief, are that the applicant Sardar Sawan Singh had obtained a registered sale deed for a consideration of Rs. 40,000/- from Lekhraj Diddi, the non-applicant. It was alleged that the premises so purchased were given to the non-applicant on rent. The non-applicant, however, committed default in payment of rent and hence the applicant filed the suit for ejectment of the non-applicant. The non-applicant stated in his written statement that the sale deed was nominal and was not to be acted upon. The amount alleged to have been paid towards rent was, as a matter of fact, paid towards interest on the amount of Rs. 40,000/- which the non-applicant had borrowed from the applicant. In other words, the plea was that the non-applicant was not the tenant of the applicant and was not, therefore, liable to be ejected. The abovesaid pleas were contained in paragraphs 3, 4 and 5 of the written statement. On these pleadings, necessary issues were framed. Issues Nos. 3 to 5 refer to the abovesaid pleadings of the non-applicant. On 23-12-1969 an application under O. 14, R. 1 of the CPC was filed on behalf of the applicant to the effect that issues Nos. 3 to 5 should not be tried as they were irrelevant. That application was, however, rejected by the trial Court by its order dated 9-1-1970 on the ground that the issues were framed on the basis of the pleadings in the written statement and so long as the pleadings were not struck off, the issues also could not be omitted. After this, an application under O. 6, R. 16 of the CPC was filed by the applicant on 10-1-1970 for striking out all references in the written statement questioning the title of the applicant, as the plea about title was foreign to the suit between the landlord and tenant. In paragraph 5 of the application, the portions to be struck off in paragraphs 3, 4 and 5 of the written statement have been specifically mentioned. That application was dismissed by the trial Court by its order dated 31-1-1970. Civil Revisions Nos. 203 of 1970 and 204 of 1970 are against the abovesaid two orders. It was held by the trial Court that inasmuch as the defendant had denied the tenancy, the pleadings setting up his own title were necessary to show that he could not have become the tenant of the plaintiff.
At this stage, it may be mentioned that the non-applicant had also filed a suit for declaration that the sale deed in question was not to be acted upon and thus passed no title to the applicant. As the suit filed by the non-applicant was a previously instituted suit as it was alleged that common issues were involved in both the suits, the non-applicant had filed an application under Section 10 of the CPC for staying the suit filed by the applicant till the disposal of the previous suit filed by the non-applicant. That application was also rejected by the trial Court. The non-applicant has, therefore, preferred Civil Revision No. 168 of 1970.”
2. We have heard the learned counsel at some length on the question raised in these revisions and we do not think that Sk. Rashid v. Hussain Bakash, AIR 1943 Nag 265 and Purushottamdas v. Gulabchand, Civil Revision No. 679 of 1966, decided on the 30th August 1967 require reconsideration for the reason that they do not lay down the correct law. In this case, the earlier Suit, No. 9-A of 1969, was filed by Lekhraj Diddi. The reliefs claimed in that suit relate only to the sale deed dated December 6, 1963. No relief has been claimed in respect of the alleged contract of tenancy. Indeed, there is in the plaint no reference to that contract of tenancy and all that is said is that interest “was to be paid in the disguise of rent”. It is obvious that the question whether or not there was a contract of tenancy is not directly and substantially in issue in this suit and, as we would show in the sequel, that is the only controversial question directly and substantially in issue in the subsequent suit, No. 16-A of 1969, filed by Sawan Singh for ejectment and arrears of rent. In these circumstances, Section 10 of the CPC has no application and the Additional District Judge, Jabalpur rightly declined to stay the subsequently instituted suit. This revision, No. 168 of 1970, therefore, fails. In Civil Suit No. 16-A of 1969 subsequently filed for ejectment and arrears of rent, Lekhraj Diddi denied the contract of tenancy and pleaded inter alia that the sale deed dated December 6, 1963 was a nominal document, that the transaction was one of loan and the amount of Rs. 400/- payable every month was really interest on the loan of Rupees 40,000/- advanced on the occasion. It is well settled that, in a suit for ejectment and arrears of rent, the basis of the claim is the contract of tenancy. That being so, when, as in this case, the suit is between the original parties to that contract and there has been no transfer of title of the lessor, the question of title of the landlord is outside the scope of the suit. So, in Munnalal v. Balchand, 1961 MPLJ 221 the Division. Bench stated:
“The scope of a suit by a landlord for possession from his tenant, including a tenant holding over, after the determination of the lease envisaged by Section 7(xi)(cc) of the Court-fees Act is limited and the Court will not go into the question of title of the landlord on the date of the contract of tenancy, though that question may be considered incidentally for determining, if disputed, whether the contract was made. As we would show in the sequel, even apart from the restricted scope of this suit it is not open to the defendants to deny that the plaintiffs had title to the house on the date on which they made the contract of tenancy. In our opinion, the question whether the plaintiffs had a valid title to the house on 22nd January 1938 is not material for the purposes of the suit.”
(Page 225)
3. The reason is obvious. If the tenant admits the contract of tenancy but denies the title of the landlord, the denial, besides being not open to the tenant in the sense contemplated by. Section 116 of the Evidence Act, is not relevant. On the other hand, if the tenant denies the contract of tenancy but admits the title of the landlord, the latter cannot rely for his success on the admission of his title and is not relieved of the obligation of establishing the contract of tenancy. It follows that, in such cases, the only question directly and substantially in issue is the contract of tenancy. That is not to say that the existence of title has no bearing on the question of tenancy, if it be disputed. So, in AIR 1943 Nag 265 (supra) Gruer, J. observed:
“The evidence about the nature of the sale deed was relevant on the question of the existence or non-existence of the oral lease under Section 11(2) of the Evidence Act. If the sale be proved to be genuine, that fact coupled with the continued possession of the vendor would make the oral lease more probable. If, on the other hand, the sale deed were bogus, it might be argued either that there was no oral lease at all or that if there was a show of an oral lease, it too was bogus.”
(Page 266)
4. Similar observations were made in Civil Revn. No. 679 of 1966, D/- 30-8-1967 (MP) (supra) and it was stated:
“In a suit founded on relationship of landlord and tenant, where the tenant denies that such relationship was brought about, the burden is on the plaintiff to establish the alleged relationship. The defendant is entitled to rebut it and show that the transaction which purports to be one creating relationship of landlord and tenant was other than what appears on its face. This does not amount to converting the suit into one relating to title, because no declaration of the defendant's title or the non-existence of the plaintiff's title will be made in the suit. But if the defendant succeeds in his plea, it will be held that he is not the plaintiff's tenant and on that basis the suit will be dismissed.”
5. These two cases rightly point out that, in a case like the one here, evidence about title of the lessor is a relevant fact for proof or disproof of the disputed contract of tenancy but any averment of existence or non-existence of title is not a material fact that can tried in the suit, no issue ought to be framed in regard to it and any finding recorded in relation to it will be outside the scope of the suit. As we have already indicated, the law laid down in these cases does not require reconsideration.
6. Although this position in law is sufficiently clear, the landlord took up the untenable position that, even though the tenant had denied the contract of tenancy, he could, in view of Section 116 of the Evidence Act, not deny or lead any evidence about absence of the landlord's title. This was also the case in AIR 1943 Nag 265 (supra) and Griper, J. pointed out the correct position when be observed:
“The lower Courts have misconceived the application of Section 116 of the Evidence Act. Estoppel arises only when or after the tenancy is admitted or proved. The tenancy here was denied and therefore had to be proved. As Niyogi, J. put it in Lalchand v. Ramsingh, 1942 Nag LJ 136, Section 116 of the Evidence Act, no doubt, estops a tenant from disputing the title of the landlord at the date of the lease, but it pre-supposes that the person affected by the estoppel is a tenant.”
7. On his part, the tenant also took up an equally untenable position that a disputed relevant fact should itself be the subject-matter of an issue in the suit. O. 6, R. 2 of the CPC, requires that a pleading should contain, and contain only, a statement in concise form of material facts only. Deviation from this rule is, however, usual and relevant facts are also often pleaded. But the issues to be framed must be confined, as required by Order 14, Rule 1 of the Code, to material questions of fact (or law), to facta probanda and not to facta probantia, that is to say, the evidence by which material questions of fact are proved or disproved. Since the distinction between the two sets of facts mentioned I in Order 6, Rule 2 is often disregarded and issues are framed on what may be called subordinate facts or evidentiary matter, it is necessary to lay stress be this distinction and to recall what Mulla has, in simple language, stated about it:
“Every pleading must contain a statement of the material facts on which the party pleading relies but not the evidence by which those facts are to be proved. It is an elementary rule in pleading that, when a state of facts is relied on, it is enough to allege it simply, without setting out the subordinate facts which are the means of producing it, or the evidence sustaining the allegation. No doubt, evidence also consists of facts, but there is a convenient nomenclature to distinguish the two. The material, facts on which the party pleading relies for his claim or defence are called facta probanda. The evidence or the facts by means of which they are to be proved are called facta probantia. Every pleading should contain only facta probanda, and not facta probantia. The distinction is taken in the very rule itself, between the facts on which the party relies and the evidence to prove those facts. Erie, C.J, expressed it in this way. He said there were facts that might be called the allegata probanda, the facts which ought to be proved, and they were different from the evidence which was adduced to prove those facts. And it was upon that expression of opinion of Erie, C.J that R. 4 (of the English rules corresponding to the present rule) was drawn.”
(Mulla's Code of Civil Procedure, Vol. I, 13th Edition, page 705)
8. In this case, in the written statement filed by Lekhraj Diddi, he did not remain satisfied with denying the factum of the contract of tenancy. He pleaded also subordinate facts including the so-called nominal character of the sale deed and the monthly payments being really interest in the disguise of rent by which he proposed to show that it was improbable that, in the circumstances, there could be a contract of tenancy. Without properly appreciating whether this part of the pleading related to material facts, the Additional District Judge framed thereon issues Nos. 3, 4 and 5, declined to strike them out by the impugned order dated January 9, 1970 on the ground that they were based on pleadings of parties and, when an application under Order 6, Rule 16 of the Code was made for striking out the opponent's pleading, dismissed that application by the impugned order dated January 31, 1970. Allegations in a pleading may not be struck out under this rule merely on the ground that they are unnecessary, but if issues are wrongly framed on disputed evidentiary facts not necessary for determination of the suit and the Court declines to strike them out under Order 14, Rule 5 of the Code, such an order cannot be sustained. This disposes of the other two applications for revision.
9. We find that there is, suits like those in this case, a widespread misunderstanding about pleading and proof of facts in derogation of the terms contained in registered documents. It is, therefore, necessary to indicate in a few words how these matters should be approached. Once it is admitted, or proved, that a party has executed a sale deed like the one dated December 3, 1963 in this case, then, between the parties to that deed or their representatives in interest, no oral evidence can be led for the purpose of contradicting, varying, adding to, or subtracting from, its terms unless a case falling under any proviso to Section 92 of the Evidence Act is specifically pleaded. In the absence of such a plea, there can be no question of lifting the veil and examining the nature of the transaction and effect must be given to the conclusiveness of the terms contained in the deed. So, Lekhraj Diddi has pleaded in the suit filed by him that, before executing the sale deed, it was clearly contracted that the sale deed would not be given any effect and that, after repayment of the loan it would be returned with an endorsement that it was a nominal transaction or, if so desired, a deed of recoveyance would be executed. The question, therefore, would be whether, upon approaching the case without any a priors notions about the nature of the transaction and without any pre-possession of judicial mind in favour of any of the rival versions and upon fairly considering the evidence as a whole, this contract set up in derogation of the sale deed has been clearly established. Speaking generally, this should be the approach to such questions raised in suits like the one filed by Lekhraj Diddi. For the reasons aforesaid, we dismiss Civil Revisions Nos. 168 of 1970 and 203 of 1970, but allow Civil Revision No. 204 of 1970, set aside the order dated January 9, 1970 and direct that the lower Court shall dispose of the application under Order 14, Rule 5 of the Code afresh with advertence to the observations we have made in the foregoing paragraph 5. In the circumstances, we leave the parties to bear their own costs of these three revisions.
10. Order accordingly.
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