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Smart Summary

Factual and Procedural Background

The appellant (plaintiff below) instituted suit against the respondent (defendant below) seeking ejectment from a house in Ujjain and recovery of arrears of rent. The learned Civil Judge, First Class, Ujjain dismissed the ejectment claim but partially decreed the claim for arrears of rent. The District Judge of Ujjain upheld the trial court's decision, and the plaintiff filed this second appeal.

The plaintiff relied on the defendant's alleged arrears and on notices requiring payment within one month. The defendant pleaded that he never defaulted and that the last notice to quit dated 13th February 1952 was waived because the plaintiff accepted rent for a period after the expiry of that notice. Both lower courts found a series of notices: a notice dated 3rd September 1951 (stating arrears of Rs. 250), a second notice dated 29th January (the opinion text contains the year as 1953), a correcting notice dated 30th January 1952, and a fourth notice dated 13th February 1952. The courts found that a cheque for Rs. 150 was sent by the defendant and retained by the plaintiff; that retention was treated by the lower courts as acceptance of rent covering arrears up to 29th February 1952 and also rent for March and April 1952 (i.e., for a period after the expiry of the 13th February 1952 notice).

Note: the opinion text contains inconsistent dates for the cheque—paragraph 3 refers to "14th June 1932" while paragraph 5 refers to "14th June 1952" as the date the defendant sent the cheque. The court's ultimate determination centered on whether the plaintiff's acceptance of the cheque/rent constituted waiver of the 13th February 1952 notice to quit.

Legal Issues Presented

  1. Whether the acceptance by the plaintiff of a cheque for Rs. 150 (representing rent) sent by the defendant can be regarded as a waiver of the notice to quit dated 13th February 1952.
  2. Whether payment and acceptance of rent after the expiry of a notice to quit, while the Accommodation Control Act is in force, is by itself sufficient to constitute waiver of the notice and an intention by the landlord to treat the contractual tenancy as subsisting.

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The plaintiff sought ejectment on the ground that the defendant had fallen into arrears of rent and had not paid despite repeated notices requiring payment within one month.

Respondent's (Defendant's) Arguments

  • The defendant denied default in payment of rent and contended that the last notice to quit dated 13th February 1952 was waived because the plaintiff accepted rent for a period after the expiry of that notice (by retaining a cheque for Rs. 150 sent by the defendant).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kai Khushroo v. Bai Jerbai, AIR 1949 FC 124 The assent of a landlord for continuance of a tenancy founded on acceptance of rent must be acceptance of rent "as such" and in clear recognition of the tenancy rights asserted by the person who pays it. The court relied on this authoritative statement to hold that mere acceptance of rent is not necessarily waiver; acceptance must be shown to be in clear recognition of the tenancy if it is to constitute waiver.
Pulin Behary Shaw v. Miss Lila Dey, (S) AIR 1957 Cal 627 Supports the proposition that acceptance of rent after termination of contractual tenancy while an accommodation control statute is in force does not necessarily amount to waiver of notice terminating contractual tenancy. The court invoked this decision to support the view that, given the Accommodation Control Act, post-notice payments may be attributable to statutory tenancy and not to a waiver of the contractual notice.
Panchanan v. Haridas, AIR 1954 Cal 460 Similar authority indicating that post-notice payment and acceptance during operation of accommodation control legislation do not necessarily indicate landlord's intention to treat the contractual tenancy as subsisting. The court cited this case as additional support for the proposition that acceptance of rent after notice, in the statutory context, cannot automatically be treated as waiver of the notice.

Court's Reasoning and Analysis

The court identified the single decisive question as whether the plaintiff's retention of a cheque for Rs. 150—thereby receiving rent that covered months after the expiry of the 13th February 1952 notice—amounted to a waiver of that notice.

The court examined Section 113 of the Transfer of Property Act (as quoted in the opinion), observing that a notice under Section 111(h) is waived only with the express or implied consent of the person to whom it is given and by an act of the person giving it showing an intention to treat the lease as subsisting. The section requires intention on the part of both lessor and lessee to treat the lease as subsisting.

The court held that when waiver depends on intention, mere payment and acceptance of rent after a notice to quit "cannot by itself necessarily constitute waiver." It relied on Kai Khushroo v. Bai Jerbai to emphasize that acceptance must be plainly in recognition of tenancy rights to amount to assent for continuance.

The court further analyzed the statutory context: the notices and suit occurred while the Accommodation Control Act was in force. The Act restricted a landlord's power to evict except on statutory grounds and gave the tenant a statutory right to remain after contractual termination. Consequently, payment and acceptance of rent after contractual termination could be attributable either to the contractual tenancy or to the statutory tenancy arising under the Accommodation Control Act. Thus, such payment/acceptance during the operation of the Act "cannot necessarily be taken as a waiver" of the contractual notice.

Applying these principles to the facts, the court found no evidence that the plaintiff, by receiving the cheque, accepted rent for any period after termination of the contractual tenancy in a manner that showed an intention to treat the contractual tenancy as subsisting. The lower courts were therefore in error in treating retention of the cheque itself as waiver.

Holding and Implications

APPEAL ACCEPTED; JUDGMENT AND DECREE MODIFIED

Holding: The court held that the acceptance by the plaintiff of the cheque (Rs. 150) could not, on the evidence before the court, be regarded as waiver of the notice to quit dated 13th February 1952. Consequently, the plaintiff was entitled to possession.

Direct consequences: A decree is passed directing the defendant/respondent to deliver possession of the tenanted premises to the plaintiff on or before 31st August 1955. The appellant is awarded his costs throughout.

Broader implications: The opinion emphasizes the legal principle that mere payment and acceptance of rent after notice is not necessarily a waiver—particularly where statutory provisions (the Accommodation Control Act) may explain post-notice payments. The opinion does not purport to lay down a new general precedent beyond applying established authorities to the facts.

    Abdul Karim Bhai v. Abdul Rehman .

    1. The appellant instituted a suit against the respondent for his ejectment from a house situated in Ujjain and for recovery of arrears of rent. The learned civil judge, First Class, Ujjain, who tried the suit, dismissed the plaintiff's claim for ejectment. The claim for arrears of rent was, however partially decreed. The decision of the trial court was upheld by the District Judge of Ujjain, The plaintiff has, therefore, filed this second appeal.

    2. One of the grounds on which the plaintiff sought to evict the defendant Abdul Rehman was that the defendant fell in arrears of rent and did not pay them despite repeated notices asking him to pay the arrears of rent within one month of the receipt of the notices. In reply, the defendant pleaded that he Lever made a default in the payment of rent and that the last notice to quit which the plaintiff gave on 13th February 1952 was waived by the plaintiff by accepting rent for a period after the expiry of the notice.

    Both the courts below have found that the plaintiff first gave a notice to quit on 3rd September 1951 stating that the defendant was in arrears of rent to the extent of Rs. 250/-; that the second notice was given on 29th January 1953 and on the expiry of the period of the notice the defendant had to pay to the plaintiff Rs. 400/- as rent up to 29th February 1952; that the third notice which the plaintiff gave on 30th January 1952 merely corrected a statement in the second notice as regards the period during which, according to the plaintiff, the defendant had made a default in the payment of rent; that the plaintiff gave the fourth notice on 13th February 1952; that on 14th June 1932 the defendant sent to the plaintiff a cheque for Rs. 150/- which the plaintiff retained ; and that by retaining the cheque the plaintiff received not only the arrears of rent amounting to Rs. 400/- up to 29th February 1952 but also the rent for the months of March and April 1952, that is to say for a period after the expiry of the notice on 13th February 1952.

    This acceptance of the rent by the plaintiff was regarded by the courts below as tantamount to a waiver by the plaintiff of the notice to quit which he gave on 13th February 1952. The plaintiff's claim for ejectment was, therefore, rejected by the lower courts.

    3. The only question that arises for consideration in this appeal is whether the acceptance by the plaintiff of a cheque for Rs. 150/- which the defendant sent to him on 14th June 1952 can be regarded as a waiver of the notice to quit which the plaintiff eave to the defendant on 13th February 1952. There can be no doubt that by retaining this cheque the plaintiff received payment of rent for the months of March and April 1952, that is for some period after the expiry of the notice dated 13th February 1952.

    The question is whether this acceptance of rent by itself is sufficient to hold that the plaintiff waived the notice to quit which he served on the defendant on 13th February 1952. Under Section 113, Transfer of Property Act, a notice given under Section 111(h) is waived, with the express or implied consent of the person to whom it is given, by any act on the part of the person giving it showing an intention to treat the lease as subsisting. It will be seen from the wording of Section 113 that in order to constitute waiver, there must be an intention not only on the part of the lessor but also on the part of the lessee to treat the lease as subsisting.

    What has to be proved is whether the landlord accepted the amount of rent for a period after the expiry of the notice to quit from the tenant as rent and with an intention to treat the tenancy as subsisting. It is manifest that when the question of waiver is one of intention, mere payment and acceptance of rent by the landlord after the notice to quit cannot by itself necessarily constitute waiver. As has been pointed out by the Federal Court in Kai Khushroo v. Bai Jerbai, AIR 1949 FC 124, the assent of a landlord for the continuance of a tenancy which is founded on the acceptance of rent must be acceptance of rent as such and in clear recognition of the tenancy rights asserted by the person who pays it. It has been observed by Woodfall in Law of Landlord and Tenant (page 1052-53, 25th Edn.)

    "A demand of rent accruing subsequently to the expiration of a notice to quit is not necessarily a waiver of the notice, but is a question of intention which ought to be left to the jury."

    4. Here, except the fact that the plaintiff accepted the cheque, and thus accepted rent for some two months that is for a period after the expiry of the notice, there is nothing to show the intention of the landlord to treat the tenancy as subsisting. It must be remembered that the notices to quit were given and the suit was filed when the accommodation control act was in force. The accommodation control act precluded a landlord from evicting a tenant except on any of the grounds mentioned in the Act.

    Even after a notice is given by the landlord terminating the contractual tenancy, the tenant has a statutory right under the accommodation control act to remain on the demised premises. That being so the payment and acceptance of rent after the determination of the contractual tenancy can be attributed either to the contractual tenancy or to the statutory tenancy created by the relevant provisions of the Accommodation Control Act. It follows, therefore, that the payment and accept met of rent for a period after the expiry of the notice terminating the contractual tenancy so long as the accommodation control act is in force cannot necessarily be taken as a waiver of notice terminate the contractual tenancy and showing an intention on the part of the landlord to treat the contractual tenancy as subsisting. This view is supported by the decisions in Pulin Behary Shaw v. Miss Lila Dey, (S) AIR 1957 Cal 627 and Panchanan v. Haridas AIR 1954 Cal 460.

    5. In the instant case, there is no evidence to indicate that by receiving the cheque the plaintiff landlord accepted rent for any period after the termination of the contractual tenancy. The courts below were in error in treating the acceptance of the cheque itself as an act of the landlord showing his intention to treat the contractual tenancy as subsisting. If, as I think, the notice dated 13th February 1952 cannot be deemed to have been waived by the plaintiff, then he is clearly entitled to a decree for possession of the premises in the occupation of the defendant.

    6. For these reasons, this appeal is accepted, the judgment and decree of the lower court are modified and a decree directing the defendant respondent to deliver possession of the tenanted premises to the plaintiff on or before 31st August 1955 is passed. The appellant shall have his costs through out

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    Comments

    Abdul Karim Bhai v. Abdul Rehman .
    (Jun 30, 1959)