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Equivalent Citations
citation codes
Case Number
Attorney(S)
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Acts
  • section 26A, sub-section (2) read with sections 11 and 12 of the Bihar Tenancy Act
  • sections 11 and 12 of the Bihar Tenancy Act. Section 11
  • section 13. Section 11 of the Bihar Tenancy Act
  • section 12(2) of the Bihar. Tenancy Act
  • section 1 of the Bengal Act 1 of 1903
  • section 12 of the Bengal Tenancy Act,
  • section 1 of Act I of the Bengal Act
  • section 26A of the Bihar Tenancy Act
  • section 34 of the Revenue Act, 1861,
  • section 13, Bihar Tenancy Act,
  • section 12 or section 13
  • section 1 of Bengal Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • section 26A, sub-section (2) read with sections 11 and 12 of the Bihar Tenancy Act
  • sections 11 and 12 of the Bihar Tenancy Act. Section 11
  • section 13. Section 11 of the Bihar Tenancy Act
  • section 12(2) of the Bihar. Tenancy Act
  • section 1 of the Bengal Act 1 of 1903
  • section 12 of the Bengal Tenancy Act,
  • section 1 of Act I of the Bengal Act
  • section 26A of the Bihar Tenancy Act
  • section 34 of the Revenue Act, 1861,
  • section 13, Bihar Tenancy Act,
  • section 12 or section 13
  • section 1 of Bengal Act
Smart Summary

Factual and Procedural Background

The dispute concerned whether the plaintiff acquired a valid title to certain land immediately upon the registration of a kebala (sale deed) executed in his favour by the husband of defendant 2nd party on 19 December 1938, despite non-payment at registration of the landlord's registration fee prescribed by statute.

The plaintiff alleged registration of the kebala in respect of 9 kathas and 13 dhurs of plot no. 244 (khata no. 115, village Madhepura) and asserted that he had paid the landlord's fee but that the defendants (first party) did not accept rent because a salami had not been paid. In 1941 the defendants (first party) instituted a rent suit against the original tenant, obtained an ex parte decree, bought the holding in execution, and obtained delivery of possession. The plaintiff sued for a declaration of title and recovery of possession, contending that the rent decree did not affect his title because the holding was not properly represented in the rent suit.

The defendants (first party) contended that because the landlord's registration fee had not been paid at the time of registration of the kebala, the plaintiff acquired no title and was not a necessary party to the rent suit; they maintained the decree in the rent suit operated as a rent decree and barred the plaintiff's claim. The learned Munsif found that the landlord's fee had not been paid but nevertheless granted the plaintiff a decree; the Additional District Judge (lower appellate court) reversed that decision. The present appeal followed to the High Court.

Legal Issues Presented

  1. Whether, under the amended section 26A(2) of the Bihar Tenancy Act read with sections 11 and 12 of the Act, a transferee (purchaser by registered kebala) acquires a valid title upon registration of the instrument even though the landlord's registration fee has not been paid at the time of registration.
  2. Whether the failure to deposit the landlord's registration fee at the time of registration renders the transfer void or otherwise prevents the transferee from obtaining complete title, and consequently whether a subsequent decree in a rent suit and a sale in execution could divest the transferee.

Arguments of the Parties

Appellant's Arguments (for the plaintiff)

  • Counsel for the plaintiff (Mr. K.K. Sinha) did not contest the lower appellate court's factual finding that the landlord's fee was not paid (a question of fact), but argued on statutory construction that under section 26A(2) (as substituted by Bihar Act II of 1938) read with sections 11 and 12 of the Bihar Tenancy Act the plaintiff obtained a valid title as soon as the kebala was registered, despite non-payment of the landlord's registration fee at registration.
  • The appellant maintained that the lower appellate court erred in treating the decree obtained in the rent suit as having the effect of a rent decree that could defeat the plaintiff's title and that the purchaser in execution thereby obtained valid title.

Respondents' Arguments (for the defendants)

  • Counsel for the respondents (Mr. J.M. Ghosh) argued that payment of the landlord's fee was a condition precedent to valid registration of the kebala; since the fee was not paid (a finding of fact), the plaintiff acquired no title on registration and therefore the subsequent rent decree and sale affected the plaintiff's rights.
  • The respondents relied on the contention that non-payment should be treated as invalidating the transfer for want of compliance with section 12(2) of the Bihar Tenancy Act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Smith v. Jones Illustration of the principle that when a statute prescribes a time or manner for performance by public officers, the requirement may be directory rather than mandatory. Used to support the point that statutory procedural requirements may be directory when treating them as mandatory would produce injustice or inconvenience; applied by analogy to payment of landlord's fee under section 12(2).
Bellamy v. Saull Construction of section 34 of the Revenue Act, 1861: registration not rendered void where the bill was not duly stamped at the time produced; the object (protection of revenue) could be satisfied by later compliance. Adopted as an analogous authority to show that failure to comply strictly at the time of a formal requirement need not invalidate the transaction where the legislative object is otherwise attainable.
Rani Prabhabati v. Lalji Mahto (Division Bench) Held that under section 13 (Bihar Tenancy Act context) when a permanent tenure was sold in execution, the auction‑purchaser's title became complete on confirmation of sale even though the landlord's fee may not have been deposited. Relied upon as a directly supporting authority to conclude that the transferee's title is complete on registration/confirmation despite non‑deposit of the landlord's fee; used to support holding that landlord could not subsequently defeat transferee's title.
Chandrasekhar v. Jagarnath Held that a transferee of a portion of a permanent tenure not impleaded in a subsequent rent suit is not affected by a decree for rent against the recorded tenant; lack of landlord's notice was immaterial. Applied to show that a later rent decree against a recorded tenant will not prejudice a transferee who acquired title prior to that decree, even where procedural steps for notice or fee payment were not fully complied with.
I.L.R. 24 Patna 148 Decision that failure to pay the landlord's fee and the fee for service of notice did not affect the transferee's title; the provision regarding payment of process fee and costs of transmission is directory, not imperative. Used to reinforce the conclusion that non-deposit of the landlord's registration fee (and related process fees) is directory and does not invalidate the transferee's title under a registered kebala.

Court's Reasoning and Analysis

The court's analysis proceeded from statutory text to principle and precedent.

  1. Statutory framework examined:
    • The amended section 26A(2) of the Bihar Tenancy Act (substituted by Bihar Act II of 1938, in force 10 December 1938) makes transfers of occupancy holdings "in the same manner and subject to the same conditions as a permanent tenure in respect of registration and the payment of landlord's registration fee."
    • Sections 11 and 12 deal with transferability of permanent tenure and require registration of transfers by registered instrument; section 12(2) provides that a registering officer "shall not register" such instruments unless the landlord's registration fee (and certain process-fees and costs) are paid to him in addition to usual registration fees.
  2. Treatment of the payment requirement:

    The court rejected the respondents' submission that non-payment operated as a condition precedent which invalidated the transfer. The court applied a general interpretive principle: where a statute obliges public officers to do something or prescribes procedures intended to protect public or third-party interests, requirements that would otherwise be performed by the public officer are often to be treated as directory rather than mandatory, particularly where treating them as mandatory would produce injustice or inconvenience to third parties who cannot control the public officer's default.

  3. Analogy to authorities:

    Authorities (Smith v. Jones; Bellamy v. Saull) were cited to illustrate that timing or manner provisions imposed on public bodies or officers are often construed as directory when the statutory object (for example, protection of revenue or notice to a landlord) can be achieved by subsequent compliance. The court found the principle applicable to section 12(2)'s requirement.

  4. Reliance on controlling local precedents:

    The court relied on Rani Prabhabati v. Lalji Mahto (Division Bench) and Chandrasekhar v. Jagarnath and I.L.R. 24 Patna 148 to demonstrate that failure to deposit the landlord's registration fee (and even fees for service of notice) has previously been held not to defeat the transferee's title where the transfer was otherwise made and registered or the sale was confirmed. The court cited a passage from Fazl Ali, C.J., (in the relevant report) to show there is no principled distinction between non-compliance under sections 12 and 13 that would render a transferee's title incomplete.

  5. Application to the facts:

    The court noted that the lower appellate court's factual finding that the landlord's fee was not paid was not successfully impeached on appeal (it was a question of fact). Nevertheless, on the legal issue, the court concluded that section 12(2)'s payment requirement is directory and does not affect the validity of title conferred by registration. Consequently, the plaintiff obtained a valid title at the moment of registration of the kebala irrespective of the non-payment of the landlord's registration fee.

  6. Disposition:

    On these bases the court set aside the decree of the lower appellate court, allowed the appeal, and directed that the plaintiff be granted a decree for declaration of title and recovery of possession. The court refused mesne profits in the circumstances proved and allowed costs throughout.

Holding and Implications

HOLDING: The appeal was allowed. The High Court held that the plaintiff acquired a valid title to the land upon registration of the kebala, and that the non-payment of the landlord's registration fee at the time of registration did not defeat that title because the requirement in section 12(2) of the Bihar Tenancy Act is directory and not mandatory. The decree of the lower appellate court was set aside and the plaintiff was granted a decree for declaration of title and recovery of possession (with no decree as to mesne profits); the appeal was allowed with costs.

Implications:

  • Direct effect: The plaintiff obtains a declaratory decree of title and an order for recovery of possession; the defendants who had obtained an ex parte rent decree and purchased in execution cannot rely on the non-payment of landlord's registration fee to defeat the plaintiff's title.
  • Procedural/legal implication: The court applied and followed existing precedents that treat requirements for payment of landlord's fee and related process fees as directory in the relevant circumstances. The opinion did not purport to create a new rule of law beyond the application of those authorities to these facts.

Appeal allowed.

    H.N Singh v. J.B Singh

    Ramaswami, J.:— The question to be examined in this appeal is whether the plaintiff obtained a valid title to the property in dispute as soon as the husband of defendant 2nd party executed a registered kebala in his favour, though the fee prescribed to the landlord was not paid to the registering officer at the time.

    The leading facts of the case are as follows. The plaintiff brought the suit alleging that on 19th December 1938 the husband of defendant 2nd party executed a registered kebala with respect to 9 kathas and 13 dhurs of plot no. 244, khata no. 115, village Madhepura. The plaintiff asserted that he paid landlord's fee but defendants first party did not accept rent since salami was not paid by the plaintiff. In 1941 defendants first party instituted a rent suit against the original tenant and having obtained an ex parte decree purchased the holding in execution case and obtained delivery of possession in due course. The plaintiff; claimed that the decree in the rent suit had only the effect of a money decree since the holding was not properly represented. The plaintiff hence brought the suit for a declaration of title and recovery of possession of the land. Defendants first party contested the suit on the ground that the landlord's fee was not paid at the time when the kebala was registered and in consequence the plaintiff acquired no title and was not a necessary party in the rent suit. Defendants first party maintained that the decree obtained in the rent suit had the effect of a rent decree and the plaintiff was not entitled to any relief. After examining the evidence the learned Munsif held that the landlord's fee had not been paid, but the plaintiff was nevertheless entitled to a decree. His decision has been reversed by the. Additional District Judge of Monghyr in appeal.

    In support of this appeal Mr. K.K Sinha addressed the argument that the lower appellate court was erroneous to hold that the decree obtained in the rent suit had the effect of a rent decree and that the defendants first party obtained a valid title to the land by sale in execution case. Learned counsel did not properly impeach the finding of the lower appellate court that the landlord's fee was not paid since this finding was upon a question of fact. But the learned counsel maintained that upon proper construction of section 26A, sub-section (2) read with sections 11 and 12 of the Bihar Tenancy Act the lower appellate court ought to have held that though the landlord's fee was not paid the plaintiff acquired a valid title to the land as soon as the sale deed was registered. In my opinion the argument addressed by the learned counsel is well founded and must succeed. The new section 26A of the Bihar Tenancy Act was substituted in place of the former section 26A by Bihar Act II of 1938 which came in force on 10th December 1938. The amended section 26A, clause (2) is to the following effect:

    “Every transfer of an occupancy holding or a portion thereof, together with the right of occupancy therein, by sale, exchange or gift and every bequest of such holding or portion, together with the right of occupancy therein, shall be made in the same manner and subject to the same conditions as a permanent tenure in respect of registration and the payment of landlord's registration fee.”

    The material sections with respect to transfer of a permanent tenure are sections 11 and 12 of the Bihar Tenancy Act. Section 11 enacts:

    “Every permanent tenure shall, subject to the provisions of this Act, be capable of being transferred and bequeathed in the same manner and to the same extent as other immovable property.”

    Section 12(1) states:

    “A transfer of a permanent tenure by sale, gift, exchange or mortgage (other than a transfer by a sale in execution of a decree or by summary sale under any law relating to patni or other tenures) can be made by a registered instrument.”

    Section 12(2) is to the following effect:

    “A registering officer shall not register any instrument purporting or operating to transfer by sale, gift, exchange or usufructuary mortgage a permanent tenure unless there is paid to him, in addition to any fee payable under the law for the time being in force for the registration of document, a process-fee of the prescribed amount and a fee (hereinafter called the landlord's registration fee) together with the costs necessary for the transmission of the landlord's registration fee to the landlord.”

    On behalf of the respondents Mr. J.M Ghosh argued that the payment of the landlord's fee was a condition precedent to the registration of the kebala and since it has been found in fact that the landlord's fee has not been paid it ought to be held that the plaintiff acquired no title upon registration of the kebala. In my opinion this argument is untenable and cannot succeed. For it is an established rule that if a statute imposes a public duty and requires that it should be performed in a certain manner or within certain time or on certain conditions such cases will be regarded as intended to be directory otherwise injustice or inconvenience will result to persons who have no control over those exercising their duty without promoting the essential aim of the legislature. It has been held, for instance, when an Act ordered a thing to be done by a public body or public officers and pointed out the specific time when it was to be done, that the Act was directory only and might be complied with after the prescribed time [Smith v. Jones(1)]. In another case Bellamy v. Saull(2) the Queen's Bench had to construe section 34 of the Revenue Act, 1861, which enacted that no copy of a bill of sale should be filed in any court unless the original was produced to the officer duly stamped and it was held that the section did not invalidate the registration if the bill was not duly stamped when so produced since the object of the enactment was to protect the revenue, and this was thought sufficiently attained if the deed was afterwards duly stamped, without going to the extreme of holding the registration void.

    In the present case I think that the condition as regards payment of the landlord's fee enacted in section 12(2) of the Bihar. Tenancy Act is merely directory and not absolute and in consequence the failure to deposit landlord's fee at the time of registration of the kebala did not affect the title of the plaintiff. It follows that the plaintiff obtained valid title to the land as soon registration was effected irrespective of the question whether the landlord's fee was paid or not.

    This opinion is supported by Rani Prabhabati v. Lalji Mahto* in which a Division Bench of this court held that under section 13, Bihar Tenancy Act, when a permanent tenure was sold in execution of a mortgage I decree, the title of the auction-purchaser became complete on the sale being confirmed, even though the landlord's fee may not have been deposited and that the landlord, therefore, could not proceed to sell the tenure in execution of a decree for rent obtained by him against the original tenure-holder in a suit instituted after the confirmation of the sale. The same principle was enunciated in Chandrasekhar v. Jagarnath in which a transferee of a portion of a permanent tenure was not impleaded in the rent suit subsequently brought by the landlord and it was held that the decree for rent obtained by the landlord against the recorded tenant will not affect the transferee and the plea that the landlord had no notice of the transfer was of no avail. Mr. J.M Ghosh who appeared for the respondents pointed out that this case ought to be distinguished on the ground that under section 1 of the Bengal Act 1 of 1903 no transfer of a tenure made under section 12 or section 13 “shall he deemed to be invalid merely on the ground that the landlord's fee prescribed by the said sections 12 and 13 has not been paid.” But it is important to notice that the transferee had not paid the fee for service of notice on the landlord and on this point Fazl Ali, C.J states at page 151 of the report:

    “It is true that these cases were cases relating to section 12 of the Bengal Tenancy Act, but it seems to me that on principle no distinction can be drawn between cases which come under section 12 and those which come under section 13. Section 11 of the Bihar Tenancy Act which has already been quoted, provides that a permanent tenure is capable of being transferred in the same manner as other immovable property. There is nothing in the Act to suggest that the title of the transferee is not complete until the landlord receives notice of the transfer. It is true that provisions are made for the payment of the landlord's registration fee and also for the service of notice upon the landlord, but it is nowhere suggested that non-compliance with the provisions will affect the title of the transferee. Where the sale takes place under section 12, notice is to be issued by the officer who registers the instrument of transfer, and where the sale takes place under section 13, the notice is to be issued by the Court confirming the sale. The mere fact that the Registrar or the Court does not carry out the directions contained in sections 12 and 13 cannot affect the title of the transferee, and if the failure of the payment of the landlord's fee by the transferee cannot affect his title as provided by section 1 of Act I of the Bengal Act (No. I of 1903), I do not see why his failure to deposit the fee for serving notice on the landlord should have any other effect.”

    It is of importance to observe that in I.L.R 24 Patna 148 the plaintiff had failed to pay not merely the landlord's fee but also the fee prescribed for the service of notice and it was held by the Bench that neither failure to deposit the landlord's fee nor failure to deposit the fee to serve notice can effect the title of the transferee. In other words the decision was that the provision as regards payment of process fee and costs of transmission was merely directory and not imperative and cannot affect the title of the vendee under the registered kebala. I see no reason in principle why the provision with respect to the payment of the landlord's fee in section 12(2) should be construed in a different manner even assuming that section 1 of Bengal Act I of 1903 is non-existent.

    Upon these grounds I would set aside the decree of the lower appellate court and order that the plaintiff should be granted a decree for declaration of title and recovery of possession of the land in dispute. There will be no decree as regards mesne profits in the circumstances proved in the case. The appeal is accordingly allowed with costs throughout.

    Rai, J.:— I agree.

    Appeal allowed.
    K.D

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    Comments

    H.N Singh v. J.B Singh
    (Jan 18, 1951)