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  • provisions of section 111(g) of the Transfer of Property Act
  • SECTION 114 TRANSFER OF PROPERTY ACT
  • section 111(g) of the Transfer of Property Act
  • section 111(g) of the Translei of Property Act
  • Mines Regulation Act, 1872. Lord
  • Public Demand Recovery Act
  • Amending Act 20 of 1929
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Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • provisions of section 111(g) of the Transfer of Property Act
  • SECTION 114 TRANSFER OF PROPERTY ACT
  • section 111(g) of the Transfer of Property Act
  • section 111(g) of the Translei of Property Act
  • Mines Regulation Act, 1872. Lord
  • Public Demand Recovery Act
  • Amending Act 20 of 1929
Smart Summary

Structured Summary of the Provided Opinion

Factual and Procedural Background

The plaintiff obtained a registered lease of the disputed land from the Sasaram Municipality (defendant No. 2) by a registered document dated 20 October 1944. The plaintiff thereafter inducted the principal defendants of each suit into the suit land and into houses the plaintiff had constructed after taking settlement from the Sasaram Municipality. The plaintiff sued the principal defendants for a declaration that his lease with the Sasaram Municipality was still subsisting and that he was entitled to realise rent from the respective principal defendants.

Both the lower courts dismissed the suits, principally on the ground that the plaintiff's title had been extinguished by forfeiture of the lease, and therefore the plaintiff had no right to realise rent. The plaintiff appealed. The lower appellate court found as a matter of fact that no written notice of forfeiture had been given by the Sasaram Municipality under section 111(g) of the Transfer of Property Act. The appeals before the court included multiple second appeals (one identified as Second Appeal No. 1127 and others totaling seven matters). The trial court had recorded a finding that the defendants were inducted by the plaintiff; the lower appellate court did not decide that factual issue in six of the appeals although it was raised by cross-objection.

Legal Issues Presented

  1. Whether, under section 111(g) of the Transfer of Property Act, a lessor must give a notice in writing of intention to determine a lease by forfeiture for breach (non-payment of rent), and whether that statutory requirement can be waived by express lease terms.
  2. Whether, given the lower appellate court's factual finding that no such written notice was given by the Sasaram Municipality, the plaintiff's lease still subsists and the plaintiff is entitled to recover rent from the principal defendants.
  3. Whether, as a factual matter, the principal defendants in each suit were inducted by the plaintiff into the buildings on the disputed land (an issue relevant to entitlement to rent), a question not decided by the lower appellate court in six of the appeals.

Arguments of the Parties

Government Advocate (in support of the appeals)

  • Argued that section 111(g) of the Transfer of Property Act requires a notice in writing by the lessor for forfeiture to take effect.
  • Contended that the lower appellate court found as a fact that no such notice was given by the Sasaram Municipality; therefore, the plaintiff's title as lessee continued and the plaintiff was entitled to a decree for rent.
  • Maintained that, despite any lease clause purporting to cause automatic forfeiture on non-payment of rent, the statutory requirement of written notice under section 111(g) cannot be waived.

Respondents (opposite viewpoint)

  • Submitted that the registered lease (dated 20 October 1944) contained an express clause providing for automatic forfeiture on non-payment of rent without notice, and that the plaintiff discontinued payment of rent in July 1953, terminating his title.
  • Raised a factual contention (in cross-objection) that the principal defendants were not inducted by the plaintiff into the disputed buildings.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Netherseal Colliery Co. v. Bourne (1889) 14 AC 228 Illustration of the principle that a protective statutory stipulation in favour of a class of persons cannot be waived by contract; parties cannot renounce statutory protections intended for them. The court relied on the principle stated in this case (as quoted through Lord Halsbury) to support the conclusion that the written-notice requirement in section 111(g) (a protective provision for lessees) cannot be waived by contract.

Court's Reasoning and Analysis

The court began by identifying the statutory text of section 111(g) of the Transfer of Property Act, which provides that a lease determines by forfeiture where, among other situations, "the lessor or his transferee gives notice in writing to the lessee of his intention to determine the lease." The court noted the 1929 amendment (Amending Act 20 of 1929) which substituted the words "gives notice in writing to the lessee of" for the earlier language, emphasizing the deliberate legislative insertion of a written-notice requirement.

The court reasoned that the written-notice provision was inserted for the benefit of the lessee and amounts to a protective statutory stipulation. On that basis the court held that parties cannot by contract waive such a statutory protection; the statutory form and terms must be followed and cannot be set aside by the parties' agreement. The court invoked the general rule (citing Craies on Statute Law and the Netherseal Colliery decision) that protective statutory provisions cannot be renounced by the persons whom the statute seeks to protect.

The court also considered section 114 of the Transfer of Property Act, which empowers a court to give relief against forfeiture for non-payment of rent upon payment or security at the hearing. The court explained that section 114 embodies an equitable principle treating forfeiture clauses for non-payment of rent as security for the rent, permitting relief where compensation is possible.

Applying these principles, the court concluded that the requirement of a written notice under section 111(g) cannot be waived by an express term in the lease providing for automatic forfeiture without notice. Because the lower appellate court had found as a fact that no written notice had been given by the Sasaram Municipality, the court concluded that there had been no forfeiture of the plaintiff's lease.

However, the court identified a procedural gap: in six of the appeals the lower appellate court had not decided the factual issue raised by the defendants (via cross-objection) that they were not inducted by the plaintiff. Although the trial court had found induction, the lower appellate court failed to record a finding on that point. For those appeals the court remanded the matters to the lower appellate court to decide whether the principal defendants were inducted by the plaintiff into the buildings on the disputed land, and then to dispose of the appeals according to law.

In respect of Second Appeal No. 1127, there was no dispute about induction; therefore, no remand was necessary and the court applied its legal conclusion (that there was no forfeiture without written notice) to allow that appeal and decree the plaintiff's suit.

Holding and Implications

Core Ruling: The court held that the requirement of a written notice under section 111(g) of the Transfer of Property Act cannot be waived by contract and, where no such written notice has been given, there has been no forfeiture of the lease.

Direct consequences and disposition:

  • Second Appeal No. 1127: Allowed. Title Suit No. 189 of 1931/40 of 1953 is decreed in favour of the plaintiff; the plaintiff is declared to hold a subsisting lease with the Sasaram Municipality and is entitled to realise rent from the principal defendants for the period claimed. Costs awarded throughout in this appeal.
  • Other six second appeals: The court allowed those appeals, set aside the decrees of the lower appellate court, and remanded the matters to the lower appellate court to record findings on whether the principal defendants were inducted by the plaintiff into the buildings on the disputed land and then to dispose of the appeals in accordance with law.
  • Costs in the remanded matters will abide the result after remand.

No broader precedent beyond the court's statutory interpretation was imposed by the court beyond its application of the principles described above (i.e., that the written-notice requirement in section 111(g) is a protective statutory provision that cannot be waived, and that relief under section 114 remains available where appropriate).

    Ramniranjan Prasad Tulshyan And Others v. Gajadhar Prasad And Others

    1. In the suits out of which these appeals arise the plaintiff alleged that he obtained a registered lease of the land in dispute from the Sasaram Municipality who is defendant No. 2 by a registered document dated the 20th October, 1944. The plaintiff thereafter inducted the principal defendant of each suit in the suit land and the houses which the plaintiff had constructed after taking settlement from the Sasaram Municipality. The plaintiff brought the suits against the principal defendants for a declaration that his lease with the Sasaram Municipality is still subsisting and the plaintiff is entitled to realise rent from the respective principal defendants. Both the lower courts dismissed the suits brought by the plaintiff, principally on the ground that the title of the plaintiff has been existinguished by forfeiture of the lease and the plaintiff had, therefore, no right to realise rent from the principal defendant of each suit.

    2. In support of all these appeals the main contention put forward by the learned Government Advocate is that in view of the provisions of section 111(g) of the Transfer of Property Act there should be a notice in writing given by the Sasaram Municipality to the plaintiff for the forfeiture: of the lease, and since the lower appellate court has come to a finding of fact that no such notice has been given by the Sasaram Municipality in terms of section 111(g) of the Transfer of Property Act, the title of the plaintiff as lessee still subsisted and the plaintiff was entitled to get a decree for rent from the respective defendants. The opposite view point is put forward by learned Counsel on behalf of the respondents. It was submitted that in view of the express terms of the registered lease, dated the 20th October, 1944, there was an automatic forfeiture of the lease) as soon as there was non-payment of rent and the title of the plaintiff as lessee had terminated with effect from July, 1953, when the plaintiff discontinued payment of rent to the Sasaram Municipality. Reference was made in this connection to the following portion of the lease, exhibit 3:—

    ‘Basurat baki raline keraya mazkoor mokiv fariq aual ko akhtiyar kamil hai wo hoga ke zare baqaya mai slid fisad 61/4 rupeya salana bajarie bil notice wo warrant khah bazarie Public Demand Recovery Act ya bajarie charajoi adalat mai kharcha zat wo zaidad mankokir farik doem wo warisan kaem mokamian farik doem se wasul kar lenge our thika mazkoor bela notice fix kar denge wo bela lehaj maiyari bandobasti khud sir dakhal kar lenge.”

    3. It was, however, contended by the learned Government Advocate that even though there was an express provision in the registered lease that there would be forfeiture for non-payment of rent even without notice on the part of the lessor, the requirement of section 111(g) of the Translei of Property Act cannot be waived, and in the absence of notice in writing given by the Sasaram Municipality the title of the plaintiff as a lessee continued. In our opinion the argument put forward by the learned Government Advocate is well founded and mast be accepted as correct. section 111(g) of the Transfer of Property Act is in the following terms:—

    ‘111. A lease of immovable property determines

    ******

    (g) by forfeiture; that is to say, (1) in case the lessee breaks an express condition which provides that on breach thereof the lessor may re-enter, or (2) in case the lessee renounces his character as such by setting up a title in a third person or by claiming title in himself; or (3) the lessee is adjudicated an insolvent and the lease provides that the lessor may re-enter on the happening of such event and in any of these cases the lessor or his transferee gives notice in writing to the lessee of his indention to determine the lease.”

    It is also important to notice that section 111(f), has been amended by the Amending Act 20 of 1929 and the words ‘gives notice in writing to the lessee of’ have been substituted for the words “does some act shewing”. It is obvious that the provision as to notice by the lessor has been inserted in section 111(g) of the Transfer of Property Act for the benefit of the lessee, and since the policy of the statute is to give this protection to the lessee, it is obvious that the parties to the contract cannot waive this particular statutory provision. It is a protective stipulation made by the legislature in favour of the lessees and such a provision cannot be set at nought by a contract; entered into between the parties. The principle of I construction in a matter of this kind has been clearly put in Craies on Statute Law, 4th edition, at page 225 as follows:—

    ‘Where a statute prescribes that contract shall be in a particular form, or shall or shall not contain terms, the statutory form must be followed, and the statutory terms may not be waived by the parties to the contract. In Netherseal Colliery Co. v. Bourne (1889) 14 AC 228, a case on the Coal Mines Regulation Act, 1872. Lord Halsbury said, at page 235: ‘The statute discloses the view that the mine-owner and the persons employed in the mine were not, in the contemplation of the Legislature, fit to be trusted to make their own bargains’; and he went on to decide that a protective stipulation in the Act in favour of the miners could not be waived by them, and that the principle, quilibet renuntiare protest juri pro se introducto was inapplicable in such a case.”

    The provisions of section 114 of the Transfer of Property Act are also important in this connection. Section 114 gives power to the court in a proper case to give relief against forfeiture for nonpayment of rent. The section reads as follows:—

    ‘114. Where a lease of immovable property has determined by forfeiture for non-payment of rent, and the lessor sues to eject the lessee if, at the hearing of the suit, the lessee pays or tenders to the lessor the rent in arrear, together with interest thereon and his full costs of the suit, or gives such security as the Court thinks sufficient for making such payment within fifteen days, the court may, in lieu of making a decree for ejectment, pass an order relieving the lessee against the forfeiture; and thereupon the lessee shall hold the property leased as if the forfeiture had not occurred.”

    This Section is based upon the English principle of equity that a forfeiture clause for non-payment of rent is merely security for the rent, and relief was given upon the principle that as the light of entry was intended merely as security for the rent, the lessor thereby recovered full compensation and was put in the same situation as it rent had been paid to him when it was originally due. For these reasons the Courts of Equity in England regarded the forfeiture clause for non-payment of rent as security for the rent and granted relief in all cases wherever compensation could be given.

    4. This principle is embodied in section 114 of the Transfer of Property Act and it is in the context of this principle that we must construe the provisions of section 111(g) of the Transfer of Property Act with regard to the determination of a lease by forfeiture and the provision of a notice in writing given by the lessor to a lessee of his intention to terminate the lease. Our concluded opinion, therefore, is that the provision as to a written notice embodied in section 111(g) of the Transfer of Property Act cannot be waived by the act of parties. If this conclusion is correct, it follows in the present case that there has been no forfeiture of the lease, because the finding of fact of the lower appellate court is that a notice has not been given by the Sasaram Municipality to the plaintiff of the forfeiture of the tenancy for nonpayment of rent.

    5. In view of this finding we should have allowed these appeals and granted the plaintiff a decree for the amount of the rent claimed in all these suits, but the difficulty is that there is no finding of the lower appellate court on the contention of the principal defendants in each case that they were not inducted by the plaintiff in the buildings standing on the disputed land. The question has been discussed by the trial court and the trial court has recorded a finding that the defendants were inducted by the plaintiff in each of these suits. But the point has not been discussed by the lower appellate court, though it was taken in a cross-objection filed by the defendant respondents. For these reasons, therefore, we think that this case should go back to the lower appellate court for recording a finding on the question whether the principal defendants of each suit were inducted by the plaintiff in the buildings on the disputed land. After recording the finding on this issue the lower appellate court will dispose of all these appeals in accordance with law.

    6. In Second Appeal No. 1127, however, there is no need of any remand, because there was no dispute by the principal defendants in this case that the plaintiff h-d inducted them into the house which is located in the disputed land. So far as this appeal is concerned we hold, for the reasons already given, that this second appeal should be allowed and Title Suit No. 189 of 1931/40 of 1953 should be decreed in favour of the plaintiff who should be granted a declaration that his lease with the Sasanmi Municipality is still subsisting and that he is entitled to realise rent from the principal defendants for the period claimed. We accordingly allow this appeal and order that the plaintiff should be given a decree in the terms given above with costs throughout.

    7. As regards the other six second appeals, we allow all theses appeals, set aside the decrees of the lower appellate court and order that these appeals should go back on remand to the lower appellate court for disposal in accordance with the directions given above.

    8. Costs will abide the result of the appeals after remand.

    HD/V.R.B

    9. Appeals allowed.

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    Ramniranjan Prasad Tulshyan And Others v. Gajadhar Prasad And Others
    (Mar 7, 1960)