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Smart Summary

Factual and Procedural Background

This second appeal arises from the dismissal by the District Judge of Jaipur City (judgment and decree dated 17 May 1962) of the plaintiffs' suit for eviction. The suit (filed 28 February 1958) concerned six shops belonging to the temple of Thakurji Shri Dwarkadheeshji in Jaipur City. The defendant had taken four shops on rent (at Rs. 150 per mensem) and later two further shops (at Rs. 65 per mensem). Devendra Prasad was appointed the adhikari (manager) of the temple in November 1949. Verandahs were added to all six shops in 1953 and a consolidated rent of Rs. 251/8/- per mensem was fixed thereafter.

The plaintiffs alleged that the shops were let until 31 July 1957, that the defendant sub-let all of them without permission for unlawful gain, that he ceased paying rent after 30 September 1957 despite notice, and that the shops were required for the personal, reasonable and bona fide use of Devendra Prasad. The defendant admitted the appointment of Devendra Prasad as manager and some facts but pleaded (inter alia) that the four shops had been sub-let from an earlier date with the knowledge of the Dharmarth Department, denied that the tenancy expired on 31 July 1957, asserted prior occupation/use of the other two shops, denied default (saying rent was refused), and challenged the sufficiency of notice served by Devendra Prasad.

The trial court framed multiple issues, found that the four shops were let in 1944 and the two in 1945, decreed recovery of arrears of rent but dismissed the eviction prayer. The plaintiffs appealed; the District Judge dismissed the appeal. The present appeal (second appeal) was filed against that dismissal.

Legal Issues Presented

  1. Whether the defendant's sub-letting of the two shops (allegedly occurring in or about 1947) was without the landlord's consent and therefore actionable.
  2. Whether the defendant can be evicted under Section 13(1)(e) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950, given that some alleged sub-letting occurred before the Act's commencement (and in light of transitional/continuing effect arising from the earlier Jaipur Rent Control Order, 1947).
  3. Whether the notice to quit (Ex. 1) dated 28 June 1957 given by Devendra Prasad (the temple's adhikari) was valid — specifically whether Devendra Prasad had authority to give the notice on behalf of the landlord (the idol/temple).
  4. Whether the defendant can rely on waiver of the first notice because a later notice (Ex. 3) was issued (i.e., whether any waiver was established or pleaded within the meaning of Section 113 of the Transfer of Property Act).

Arguments of the Parties

Appellant's Arguments (Mr. Rastogi)

  • The lower appellate court erred in holding that sub-letting occurring before the commencement of the Rajasthan Premises Act precluded invocation of Section 13 of the Act for eviction on the ground of sub-letting.
  • Although not disputing the courts' finding that four shops were sub-let with landlord consent, he contended the remaining two shops were sub-let without the landlord's consent and that finding should be upheld.

Respondent's / Defendant's Arguments (as represented by pleading and counsel Mr. Bhargava)

  • The defendant pleaded that the tenancy of the four shops was older and that sub-letting existed from an earlier date with the Dharmarth Department's knowledge; thus the defendant asserted he could not be evicted until the tenancy was terminated according to law.
  • For the two shops, the defendant maintained they were occupied/used by him (and later under his brother-in-law's supervision) and he had paid rent; therefore eviction on the ground of sub-letting was denied.
  • It was argued that Devendra Prasad had no authority to give notice Ex. 1 (challenging the validity of that notice).
  • It was also argued that a subsequent notice (Ex. 3) operated as a waiver of the earlier notice.
  • Other contentions in pleadings included denial that the tenancy expired on 31 July 1957 and the contention that there was no default because Devendra Prasad had refused to accept rent.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Jag Prasad Rai and Anr. v. Mt. Singari, A.I.R. 1925 P.C. 93(2) Supports drawing an adverse inference from a party's failure to produce documents (books of account) which are in his admission that he maintained such books. The court relied on this principle to infer that the defendant's unproduced books of account would not have supported his contention that he personally conducted business in the two shops; this inference supported the finding that the shops were sub-let to the brother-in-law.
Harihar Banerji and Ors. v. Ramshashi Roy and Ors., A.I.R. 1918 P.C. 102 Addresses the importance of what a notice to a tenant signifies in the factual context; a tenant conversant with the tenancy facts may act on a notice perceived to be binding on the landlord. The court used this authority to assess the effect of the notice given by Devendra Prasad and to conclude the defendant treated Devendra Prasad as the person having authority to manage the temple and to give notice.
Jones and Ors. v. Phipps, Law Reports III (1967-8) Q.B. 567 Holds that a general agent to manage property may give notice to quit in his own name and that it is not necessary for the agency to appear on the face of the document when the authority is incidental to a delegated general agency. The court relied on this case to support the proposition that Devendra Prasad, entrusted with general management and rent-realisation functions, could validly give the notice in his own name without express indication of authority on the notice.
Deo v. Mizem, E.R. 174 (1837); 2 Moo & Rob. 86 Establishes that an agent who habitually lets land and receives rent (a steward/agent) has authority to determine the tenancy even if express authority is not shown. The court cited this authority to reinforce the conclusion that a steward or manager with general letting and rent-collection authority could validly give a notice affecting the tenancy; applied to validate the notice by the temple adhikari.

Court's Reasoning and Analysis

The court undertook a fact-based reassessment and legal analysis, proceeding in several discrete steps:

  1. Assessment of the factual record about sub-letting:
    • The lower courts had found that the four shops originally let in 1944 were sub-let with the landlord's consent; counsel for the appellant did not challenge that finding.
    • As to the remaining two shops, the written statement and trial evidence did not plead or assert that those two shops had been sub-let with the landlord's permission. Instead, the defendant in the written statement said he carried on his own business there; later testimony (including that of the defendant's brother-in-law Ram Gopal, D.W.5) established that Ram Gopal carried on an independent business in those two shops and paid rent (originally Rs. 65/- raised to Rs. 69/-), and that the defendant had effectively given the two shops to Ram Gopal.
    • The defendant admitted maintaining books of account but failed to produce them; applying the precedent in Jag Prasad Rai led the court to infer those books would not have supported the defendant's claim of personal use, supporting the view that the two shops had been sub-let without landlord permission towards the end of 1947.
  2. Legal effect of timing and continuity of control:
    • The Jaipur Rent Control Order, 1947 (in force from 15 October 1947) contained a provision (Clause 8(1)(b)(ii)) permitting eviction for unauthorized sub-letting. The court noted that liability to eviction under that Order continued to subsist by virtue of Section 13(1)(e) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950, through the operation of Section 6 of the Rajasthan General Clauses Act, 1955 read with Section 31 of the Act.
    • Because verandahs were added in 1953 and a consolidated rent of Rs. 251/8/- was fixed, the six shops were treated as an inseparable, integrated tenancy from 1953 (and effectively from 1952 onwards). The fact that two of the six constituent shops had been sub-let without permission (even if that sub-letting began before the Act) meant Section 13(1)(e) applied to the integrated tenancy.
  3. Validity and authority behind the notice to quit (Ex. 1):
    • The burden to prove that Devendra Prasad had no authority to give notice was on the defendant; he did not discharge that burden and did not challenge the placing of that burden in earlier courts.
    • The defendant admitted Devendra Prasad was appointed manager (adhikari) in November 1949 with power to look after the temple and to realise rent; the defendant replied to the notice and thus treated Devendra Prasad as the manager with authority. Government orders (Exs. 5, 6, and 9) corroborated the entrustment of temple properties to Devendra Prasad for management and rent-realisation.
    • The court applied common law principles (as cited in Foa and in the cases referenced) that a notice to quit need not be signed by the lessor personally and that an agent with general management authority may give such a notice in his own name. The cited cases (Jones v. Phipps; Deo v. Mizem; Harihar Banerji) supported the view that the notice was of the kind a tenant could safely act upon and that the agent's notice bound the landlord. On these bases the court concluded Ex. 1 was validly given by Devendra Prasad in his capacity as adhikari.
  4. Waiver argument (as to notice being waived by issuance of a later notice Ex. 3):
    • The court found the defendant had not pleaded waiver under Section 113 of the Transfer of Property Act, and the parties had not joined issue on that point. No question was put to Devendra Prasad about waiver during cross-examination. One important factual point was that both lower courts had held Ex. 3 (the second notice) did not reach the defendant, undermining any contention the defendant knew of and consented to a purported waiver. Moreover, the content of Ex. 3 suggested it was a counter-reply rather than an intention to treat the tenancy as subsisting.
    • On this basis the court rejected the waiver argument.
  5. Conclusion of law applied to facts:
    • Because two of the shops forming part of the integrated six-shop tenancy had been sub-let without landlord consent, and because the Jaipur Rent Control Order liability had continued into the Rajasthan Premises Act framework, Section 13(1)(e) applied and the defendant was liable to eviction.
    • Because the notice to quit was validly given by the temple's adhikari and there was no accepted waiver, the procedural prerequisites for eviction were satisfied.

Holding and Implications

Core Ruling: The appeal is ALLOWED; the impugned judgment and decree of the lower appellate court are set aside, and a decree is passed for the eviction of the defendant from all six shops covered by his tenancy.

Consequences explicitly stated in the opinion:

  • The defendant is decreed to be evicted from all six shops covered by his tenancy.
  • The appellant is to have costs of all the courts.

The opinion does not articulate or rely upon any broader or novel precedent beyond the application of established principles cited; its immediate effect is the setting aside of the impugned judgment and the grant of eviction and costs in favour of the plaintiffs.

    Thakurji Shriji Dwarkadheeshji v. Gappulal

    1. This second appeal arises from the appellate judgment and decree of the District Judge of Jaipur City dated May 17, 1962 because of the dismissal of the plaintiffs' suit for eviction.

    2. There is a temple of Thakurji Shri Dwarkadheeshji in Jaipur City. The defendant took four shops of that temple on rent, when it was under the management of the State Government, on a rent of Rs. 150/- per mensem, and thereafter he took the other two shops on a rent of Rs. 65/- per mensem. Devendra Prasad was appointed as the "adhikari" of the temple in November 1949. Verandahs were added to all the six shops in 1953 and a consolidated rent of Rs. 251/8/- per mensem was fixed for them from that time. It was pleaded in the plaint that the shops were let for the period ending July 31, 1957 and that the defendant sub-let all of them for unlawful gain. It was also pleaded that the defendant did not pay the rent after September 30, 1957, in spite of notice Further, it was pleaded that the shops were required for the personal, reasonable and bonafide use of Devendra Prasad. On all these grounds the present suit was raised on February 28, 1958, for eviction and recovery of arrears of rent.

    3. Defendant Gappulal admitted that Devendra Prasad was appointed as the manager of the temple in November, 1949 and was entrusted with the work of looking after it and realising the rent, but he pleaded that the tenancy in respect of the four shops was older and that these shops were sub-let from an earlier date within the knowledge of the Dharmarth Department. It was denied that the period of the tenancy expired on July 31, 1947. As regards the other two shops it was pleaded that they were also on rent with the defendant from an earlier date and he had paid the rent thereof to the Dharmarth Department up to December 19, 1949 and thereafter to Devendra Prasad. Further, it was pleaded that these two shops were being utilised by the defendant for his own business under the supervision of his brother-in-law. The claim for eviction on the ground of Devendra Prasad's personal requirement was denied and it was pleaded that there was no default in the payment of rent because Devendra Parasad had refused to accept it. The defendant however admitted that the rent was increased to Rs. 251/8/- for all the six shops in 1953. It was further pleaded that no notice has been given on behalf of the Devasthan Department, 01 the Government or Rajasthan, or Thakurji Shri Dwarkadheeshji and the defendant could not be evicted until his tenancy was terminated according to the law. The notice given by Devendra Prasad was insufficient because he has no right to give it and it did not expire with the end of the month of the tenancy. Lastly, it was pleaded that as the manager of the plaintiff had taken the rent up to September 30, 1957, it was not correct to say that the tenancy had come to an end on July 31, 1957.

    4. A number of issues were framed by the trial court, which held that while the four shops were let out to the defendant in 1944, the two shops were let out in 1945. The claim for arrears of rent was decreed but the suit was dismissed as regards the prayer for the eviction of the defendant. An appeal was preferred to the District Judge and as it has been dismissed by the impugned judgment, this second appeal has been filed by the plaintiff as aforesaid.

    5. It has been argued by Mr. Rastogi that the impugned judgment has been vitiated because the learned Judge of the lower appellate court fell into an error in holding that as the shops has been sub-let by the defendant even before the commencement of the Rajasthan Premises (Control of Rent and Eviction) Act 1950, hereinafter referred to the Act, it was not possible to invoke Section 13 of the Act for evicting the defendant on the ground of the sub-letting of the premises. As I shall presently show, there is force in this argument of the learned Counsel and as the finding of the lower appellate court has been vitiated by a substantial error of law, it is necessary for me to decide the matter afresh.

    6. As has been stated, the claim in the plaint was that all the six shops were sub-let without the permission of the landlord. Mr. Rastogi has, however, not challenged the finding of the two courts below that the four shops, which had initially been let out to the defendant, were sub-let by him with the consent of the landlord. But he has strenuously argued that this was not so in the case of the remaining two shops and that they were, on the other hand, sub-let without the consent or permission of the landlord. It appears that this argument is correct and must be upheld.

    The reason is that while the defendant pleaded in the written statement that when he took the four shops on rent in 1944 they were sub-let to others from that very time within the knowledge of the Dharmarth Department which compromised the dispute and agreed to accept the rent of Rs. 150/- per month, no such plea was taken regarding the other two shops. In fact it was emphatically stated in the written statement that the defendant carried on his own business in those two shops under the supervision of his brother-in-law. Even in his own statement in the trial court the defendant did not state that he had taken the consent or permission of the landlord to sub-let the two shops. On the other hand he stated that he opened his own shop in those premises in 1946. He had however to admit that he removed his shop towards the end of 1947 when his brother-in-law started working there. The defendant's brother-in-law Ram Gopal D.W. 5 has however stated that he started his own business in the two suit shops some 12 or 13 years ago because the defendant gave them to him on a rent of Rs. 65/-, which was raised to Rs. 69/- per mensem. Further, Ram Gopal has clearly stated that he himself was the owner of the business which was carried on in the two shops, that he alone was responsible for the profit and loss of that business and that the defendant had nothing to do with it. It is therefore quite clear that the defendant sub-let the two shops in question to his brother-in-law Ram Gopal D.W. 5. The defendant is a business-man and if it had been a fact that he was carrying on him own business in the two shops, he could easily produce his books of account to substantiate that contention The fact however remains that he did not produce his books of account even though he admitted that he maintained them. No explanation has been given for withholding the books. It is therefore reasonable to draw the inference that if they were produced they would not have supported the defendant's case, as has been held in Jag Prasad Rai and Anr. v. Mt. Singari A.I.R. 1925 P.C. 93(2). In all these facts and circumstance I have no hesitation in holding that the two shops in question were sub-let by the defendant towards the end of 1947 without the permission of the landlord.

    8. It is not disputed that the Jaipur Rent Control Order, 1947, came into force on October 15, 1947, and was in force at the time when the two shops were sub-let by the defendant without the consent of the landlord. Clause 8(1)(b)(ii) of that Order provided for the eviction of a tenant in such circumstancs on the ground that he hand, without the consent' of the landlord, sub-let the whole or a part of the premises. And it is not disputed that this liability to eviction continued to subsist under Section 13(1)(e) of the Act after its promulgation by virtue of Section 6 of Rajasthan General Clauses Act, 1955 read with Section 31 of the Act.

    9. It will be recalled that it is the case of both the parties that verandahs were constructed in four of the six shops in 1953 and then a consolidated rent of Rs. 251/8/- was fixed for them. It was an inseparable rent, so that there was a single integrated tenancy in respect of all the six shops from 1952 onwards. So when it has been held that the defendant had sub-let two of the shops which formed part of the premises which were let out to him on the consolidated rent of Rs. 251/8/-, it is obvious that the defendant was liable to eviction under Section 13(1)(e) of the Act and the learned Judge of the lower appellate court erred in taking a contrary view.

    10. It has however been argued by Mr. Bhargava that Devendar Prassad had no authority to give notice Ex. 1 to the defendant on June 28 1957. This was the subject-matter of issue No. 6 and the burden of proving that Devehder Prasad had no such authority was placed on the defendant. He did not make a grievance in any of two courts below that the burden was wrongly placed, and no such grievance has been made in this Court. All the same the fact remains that, as has been admitted by Mr. Bhargava. the defendant did not lead any evidence to prove to give the notice for his eviction, whereas Devendra Prasad stated that he had such an authority and his statement was not statement shaken by cross-examination

    11. I have looked into the notice and I find that it has been given by Devendra Prasad in his capacity as the "adhikari" of the temple of Shri Dwarka-dheeshji. In such cases it is important to see what that notice really meant to the tenant who presumbly, is conversent with all the facts and circumstances of the tenancy as has been held in Harihar Banerji and Ors. v. Ramshashi Roy and Ors. A.I.R. 1918 P.C. 102 (105), A perusal of the written statement shows that the defendant admitted that Devendra Prasad was appointed to be the manager of that temple in November 1949 with power to look after the temple and realise its income. It is therefore obvious that he was aware that Devendra Prasad was functioning as the manager of the property of the temple and had given the notice in that capacity. The defendant in fact gave a reply (Ex. 9) to that notice of Devendra Prasad and its contents go to show that he definitly considered him to be the person who had the authority to manage the temple. A perusal of Ex. 5, 6, and 9, which are the orders of the State Government, also show that the properties of the temple, including the shops, were entrusted to Devendra Prasad for management with authority to realise the rent. Devendra Prasad was therefore a person who had general authority on behalf of the temple, and there is no reason why the notice by him, in that capacity, should not be held to be authorised. I am fortified in this view by the following observations in Foa's "General Law of Landlord & Tenant" eight edition, Pages 606-607.

    The general common law rule is that a notice to quit need not be signed by the lessor personally; it is sufficient if signed by the agent shown to be duly authorised in that behalf. If he act, under a special authority, he must give it in the name of the principal or expressly an agent on behalf of his principal, but if he acts under the authority incindetal to a general agency to manage the demised property e.g. where a cestique trust in allowed by the trustees to have entire control of settled estates), he may give in his own name.

    The notice must be such as the tenant may act upon with safety, that is one which is in fact, and which the tenant has reason to beieve to be, binding on the landlord. An agent to receive rents and to let, receiver with a general power of letting appointed by the Court, and a steward of a corporation, such as a dean and chapter, have such general authority, (p. 606).

    12. Reference may also be made to Jones and Ors. v. Phipps The Law Reports III 1967-8) Q.B. 567. In that case a farm was purchased by the trustees of G's marriage settlement and they left the entire management and control of the farm to G. He negotiated with the defendant as to the terms on which the tenancy was to continue, without mentioning the trustees. The defendant did not agree to the terms and G, in his own name as landlord, gave him notice to quit. The defendant disputed the validity of the notice but it was held that the inference to be drawn was that the notice was with the sanction of the trustees, as it was incident to such an authority as the trustees had delegated to G and that is was not necessary to the validity of a notice given by such a general agent that his agency should appear on the face of the document. Reference may also be made to Deo v. Mizem E.R. 174 (1837), 2 Moo & Roob 86. In that case Mizem was a tenant in possession. The steward of Earl Manvers had let the premises to Mizem from year and had given him the usual notice to quit. The steward stated that he was in the habit of letting Earl Manver's land, and receiving the rent, and that he succeeded a former steward who did the same, but no express authority was shown. It was objected that no authority to determine the tenancy was shown and that the right to the possession was still in the former tenant. It was held that an agent to receive rents and to let had the authority to determine the tenancy.

    13. It would thus appear that the test to determine the authority for the giving of a notice is whether the notice is such that the tenant may act upon it with safety or, in other words, that it is a notice which is binding on the landlord. In the present case the landlord was the idol and since its "adhikari gave the notice, there was no reason to take the view that it was an unauthorised notice, or that the idol was not bound by it. There is therefore no force in this argument also. In fact I find that issue No. 1 related to the question of the authority of Devendra Prasad to file the suit on behalf of the idol and even though that issue was decided in favour of the plaintiff, its correctness has not been challenged in this Court. It must therefore be held that there is no substance in the argument that the notice was unauthorised.

    14. The remaining argument which has been advanced by Mr. Bhargava is that notice Ex. 1 was waived because another notice was issued there. I do not however find it possinle to entertain this argument because it was not pleaded by the defendant that the notice had been waived within the meaning of Section 113 of the Transfer of Property Act, and the parties did not join issue on the point. In fact no question was put to Devendra Prasad about the waiver of the notice and it cannot therefore be urged with any justification that by giving the second notice he had the intention to treate the lease as subsisting. There are two important facts which lead to this irresistible conclusion. Firstly it has been held by the two courts below that the second notice (Ex. 3) did not reach the defendant, so that it cannot be setaside that the defendant was at all aware of any such waiver so as to consent to it within the meaning of Section 113 of the Transfer of Property Act, and, secondly, a perusal of the notice shows that it was really in the nature of a counter-reply to the defendant's reply (Ex. 9) to notice Ex. 1 and it cannot be said that by sending the counter-reply the first notice has been waived.

    15. As I have reached the conclusion, for reasons already stated, that the suit should have been decreed for the defendant's eviction from the six shops, the appeal is allowed with costs of all the courts. The impunged judgment and decree are set aside and a decree is passed for the eviction of the defendant from all the six shops covered by his tenancy.

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    Thakurji Shriji Dwarkadheeshji v. Gappulal
    (Nov 1, 1968)