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Noratmal v. Mohanlal
Structured Summary of the Opinion
Factual and Procedural Background
The plaintiff purchased premises No. AMC. III/344, Chhoti Chowdhar Gali, Ajmer from Sethani Prabhabati Kanwar on 6 January 1955. Prior to the sale, Debilal Sunar was the tenant of those premises and had sub-let part of them to the defendant Mohanlal at a rent of Rs. 3/8 per mensem. After the sale, on 23 July 1956, Debilal served a notice on Mohanlal directing him to pay rent directly to the plaintiff and to treat the plaintiff as landlord with effect from the date of the sale deed. The plaintiff sued for ejectment and arrears of rent (claiming Rs. 4/7 per mensem on account of repairs). The trial court decreed ejectment and arrears calculated at Rs. 3/8 per mensem. On appeal, the Senior Civil Judge, Ajmer, reversed that decree on the ground that there was no privity of contract between the plaintiff and the defendant. The plaintiff brought this Civil Second Appeal raising the sole question whether, in the circumstances, he was entitled to maintain the suit for ejectment and arrears of rent against the defendant.
Legal Issues Presented
- Whether the plaintiff was entitled to maintain a suit for ejectment and arrears of rent against the defendant in the circumstances of this case (specifically, whether Debilal's notice to the sub-tenant operated as an implied surrender and, following that, whether the sub-tenant became the plaintiff's tenant).
Arguments of the Parties
Plaintiff's Arguments
- Under section 109 of the Transfer of Property Act, Debilal became the tenant of the plaintiff by operation of law after the sale by Sethani Prabhabati Kanwar.
- By serving the notice on Mohanlal and surrendering the suit property (so far as the sub-let part was concerned), Debilal's tenancy was determined under section 111(f) of the Transfer of Property Act, entitling the plaintiff to maintain the suit.
- The notice (Ex. A/2) was drafted with the involvement of both Debilal and the plaintiff (their advocates), and the plaintiff assented to its service—this demonstrates acceptance/assent to attornment and supports implied surrender.
- The registered rent note under which Debilal had been a tenant expired on 12 July 1948; thus at the time of the purported surrender no registered tenancy deed was operative, and there was no requirement that surrender be effected by a registered document.
- By virtue of the statutory provision in the Delhi and Ajmer Rent Control Act, 1952 (section 20), on termination of the tenant's interest the sub-tenant becomes the tenant of the landlord; accordingly Mohanlal became the plaintiff's tenant.
Defendant's Arguments
- No case of implied surrender has been made out: mere direction by a tenant to a sub-tenant to attorn to the landlord is insufficient because there was no change of possession; actual delivery of possession is necessary.
- There can be no surrender of part of the property leased to the tenant.
- Debilal had executed a registered lease (rent note) in favour of Sethani Prabhabati Kanwar, and terms of that tenancy could not be altered without a registered deed—implying surrender of any part could not occur except by a registered document.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court began by focusing on whether service of the notice by Debilal on the sub-tenant Mohanlal amounted to an implied surrender of Debilal's tenancy in respect of the part sub-let to Mohanlal. The court explained the legal concept of "surrender by operation of law" (also called "implied surrender") as situations where the law infers surrender from unequivocal conduct by the parties inconsistent with the continuance of the tenancy. The court relied on textbook authority (Woodfall on Landlord and Tenant, Halsbury's Laws of England, and Foa's General Law of Landlord and Tenant) cited in the opinion to describe types of implied surrender (acceptance of a new lease, unequivocal giving of possession, reletting by the landlord, or acceptance by the landlord of the sub-lessee as tenant).
The court found material facts demonstrating assent by the plaintiff to the giving of the notice: the evidence showed both Debilal and Noratmal came to the advocate who drafted the notice and that the plaintiff's advocate corrected the draft before it was served. That conduct, the court held, demonstrated the plaintiff's assent and made it appropriate to treat the notice as effecting surrender of Debilal's tenancy in respect of the sub-let portion.
Addressing the defendant's contention that attornment without physical change of possession is insufficient, the court observed that the essence of implied surrender is doing an act inconsistent with the continuance of the lease rather than mere change of possession. The court cited the view (as recorded in Halsbury's Laws of England and other authorities quoted) that directing the occupier to attorn to the landlord can constitute sufficient delivery of possession for the purposes of an implied surrender.
The court rejected the defendant's submission that part-only surrender is impossible, referring to authority showing that surrender of part of demised land is recognized: acceptance of a new lease of part operates as a surrender of that part only while leaving the lease over the residue intact.
On the point about the registered rent note, the court accepted the plaintiff's contention that Debilal's registered tenancy had expired on 12 July 1948, well before the sale; therefore no registered deed was operative at the time of the surrender and no rule requiring a registered instrument for the surrender in question arose.
Finally, the court placed reliance on section 20 of the Delhi and Ajmer Rent Control Act, 1952 (quoted in the opinion). That statutory provision states that when a tenant's interest in premises is determined, a sub-tenant who has lawfully sub-let the whole or any part becomes, subject to the Act, the tenant of the landlord on the same terms and conditions as he held from the tenant. Applying section 20 to the facts, the court held that Mohanlal became the plaintiff's tenant by operation of that statutory provision.
Combining the conclusions that (a) Debilal's conduct and the plaintiff's assent effected an implied surrender of the tenancy in respect of the sub-let part, (b) surrender of part is legally possible, (c) no operative registered tenancy prevented such surrender, and (d) section 20 of the Rent Control Act made the sub-tenant the landlord's tenant on termination, the court concluded that the plaintiff could maintain the ejectment suit despite the absence of privity of contract.
Holding and Implications
Holding: The appeal is allowed. The judgment and decree of the Senior Civil Judge, Ajmer dated 10.8.1960 are set aside, and the trial court's judgment and decree are restored. The defendant is granted two months' time to deliver possession to the plaintiff. Parties shall bear their own costs throughout. Leave to appeal to a Division Bench is refused.
Implications:
- Direct effect on the parties: The plaintiff is entitled to maintain the suit for ejectment and arrears of rent against the defendant; the defendant must deliver possession within two months and parties bear their own costs. Leave to appeal to a Division Bench was refused.
- Scope as precedent: The opinion applies established principles of implied surrender and the statutory provision in the Delhi and Ajmer Rent Control Act, 1952 (section 20). The opinion does not purport to create or announce a novel legal precedent beyond applying these authorities to the facts of the case.
Key Statutory and Textual Authorities Referred To in the Opinion
- Section 109, Transfer of Property Act — relied on in the plaintiff's argument that Debilal became tenant of the plaintiff by operation of law (as stated in the opinion).
- Section 111(f), Transfer of Property Act — relied on regarding "surrender by operation of law" and the determination of tenancy (as cited in the opinion).
- Section 20, Delhi and Ajmer Rent Control Act, 1952 — quoted and applied by the court to hold that on termination of the tenant's interest a sub-tenant becomes the tenant of the landlord on the same terms.
- Text authorities cited by the court for principles of implied surrender: Woodfall on Landlord and Tenant (25th Edn.), Halsbury's Laws of England (footnote to Para 1414), and Foa's General Law of Landlord and Tenant (8th Edn.).
Bhandari, J.:— This is a Civil Second Appeal on behalf of the plaintiff in a suit for ejectment and arrears of rent. The following facts may be taken to be proved for the purposes of the decision of this appeal.
2. The premises No. AMC. III/344 situate in Chhoti Chowdhar Gali, Ajmer belonged to Sethani Prabhabati Kanwar and the plaintiff-appellant purchased this property from her on 6th January 1955. One Debilal Sunar was the tenant of Sethani Prabhabati Kanwar of the said premises and before the sale he had sub-let part of the premises held by him as tenant to Mohanlal defendant at the rate of Rs. 3/8/- per mensem. After the sale of the premises by Sethani Prabhabati Kanwar, Debilal Sunar served the defendant with a notice dated 23rd July 1956 asking him to pay rent directly to the plaintiff in future and to treat the plaintiff as his landlord for all purposes with effect from the date of the sale deed. The plaintiff brought the suit for ejectment of the defendant alleging that the defendant had become his tenant by operation of law. He also claimed rent at Rs. 4/7/- per mensem as according to him he had spent some money on repairing the premises about which the suit was filed. The trial court decreed the suit for ejectment and also for arrears of rent calculated at the rate of Rs. 3/8/- per mensem. On appeal by the defendant, this decree was reversed by the Senior Civil Judge Ajmer on the ground that there was no privity of contract between the parties and the plaintiff was not entitled to maintain the suit. Hence this second appeal by the plaintiff.
3. The only point for decision in this second appeal is, whether the plaintiff in the circumstances of this case is entitled to maintain the suit for ejectment and arrears of rent against the defendant. Learned counsel for the plaintiff-appellant has argued that Debilal by virtue of sec. 109 of the Transfer of Property Act became the tenant of the plaintiff and after the sale of the premises by Sethani Prabhabati Kanwor, Debilal surrendered the suit property of which the defendant was a sublessee to the plaintiff and so far as that property is concerned; the tenancy of Debilal determined under sec. 111(f) of the Transfer of Property Act, and after the determination of the tenancy of Debilal, the plaintiff was entitled to maintain the suit. Learned counsel for the defendant, respondent has, however, argued that no case of implied surrender has been made out in this case and that there can be no surrender unless actual possession of the property in dispute was delivered by Debilal to the plaintiff and further that there can be no surrender of part of the property leased to Debilal. It is also argued that there was a registered lease deed executed by Debilal in favour of Sethani Prabhabati Kanwar and there could be no surrender by Debilal of any part of the property leased except by a registered deed.
4. Before taking up the points of law involved in the case into consideration, it is proper to refer to the notice (Ex. A/2) produced by the defendant which has been served by Debilal on him. After reciting that the defendant was Debilal's sub-tenant of part of the premises which had been sold by Sethani Prabhabati Kanwar, the relevant part of the notice runs, as follows:
“My client hereby informs you to pay rent directly to the said Shri Noratmal Kandoi Nala Bazar Ajmer retrospectively with effect from Pos Sudi 13, sec. 2011 who should be treated by you as your landlord for all purposes.”
It is in the evidence of Shri Krishna Swaroop Goyal Advocate who served this notice on behalf of Debilal on the defendant that both Debilal and Noratmal had come to him for getting the notice drafted and he prepared a draft which was subsequently corrected by Shri Mukand Ram Garg, Advocate for the plaintiff, and then the corrected notice was served on the defendant. This clearly shows that serving of the notice (Ex. A/2) by Debilal on the defendant was assented to by the plaintiff.
5. The first point of law to be examined in this appeal is whether service of such a notice by Debilal on Mohanlal operates as implied surrender. The term “surrender by operation of law” or ‘implied surrender’ is the expression used to describe all those cases where the law implies a surrender from unequivocal conduct of both parties which is inconsistent with the continuance of the existing tenancy.
“Such surrender is the act of the law, and takes place independently of, and even in spite of the intention of the parties” (Woodfall on Landlord and Tenant, 25th Edition, pages 966-67 Para 2074).
Such a surrender is valid under sec. 111(f) of the Transfer of Property Act. Such a surrender may come into being in a number of ways. There may be surrender by acceptance of a new lease, surrender by unequivocal giving of possession, surrender by reletting to another person by the landlord. Even acceptance by the landlord of the sub-lessee as a tenant would amount to surrender.
“There is a similar surrender if A being tenant from year to year sublets to B, and the original landlord, with the assent of A, accepts B and his tenant.” (Woodfall on Landlord and Tenant, 25th Edition, Para. 2086).”
It is, however, contended by the learned counsel for the defendant-appellant that for an implied surrender to be operative, a simple direction by the tenant to the sub-tenant to attorn to the landlord is not sufficient because in such a case there is no change of possession. Change of possession has been insisted upon in some cases in English Law. The essence of implied surrender is not change of possession but the doing of an act which is inconsistent with the continuance of the lease or tenancy. In the footnote to Para 1414 of Halsbury's Laws of England it has been stated that “directing the occupier to attorn to the landlord is sufficient delivery of possession.” Thus, in the circumstances of the case, it can be taken that Debilal had surrendered his tenancy rights in the part of the property of which he was the tenant to the plaintiff who was his landlord.
6. It is, however, contended by the learned counsel for the defendant-respondent that there can be no surrender of part of the property leased out. Here, again, the law is that there can be surrender even of part of the property leased out. Para 2079, at Page 969 of Wood fall on Landlord and Tenant, 25th Edn. is to the following effect:
“Implied surrender of part only.—If a lessee for years accepts a new lease by indenture of part of the lands, it is surrender for that part only, and not for the whole; and though a contract for years cannot be so divided, as to be avoided for part of the years and to subsist for the residue, either by act of the party or act in law; yet the land itself may be divided, and the tenant may surrender one or two acres, either expressly or by act of law, and the lease for the residue will stand good and untouched.”
7. The sarnie principle is enunciated in Foa's General Law of Landlord and Tenant 8th Edn. Page 631 Para 991 wherein it has been stated that “acceptance of a new lease of part only of the demised premises operates as a surrender of that part and no more.” There is nothing in the Indian Law to hold that there can be no implied surrender of part of the leased property. In my opinion, the contention of the learned counsel for the defendant-appellant to the contrary is not correct.
8. Lastly, it is contended that Debilal was a tenant under a registered rent note executed by him in favour of Sethani Prabhabati Kanwar and terms of that tenancy could not be altered without any registered document. In reply to this contention, learned counsel for the plaintiff-appellant has pointed out that Debilal was a tenant for a fixed term of one year and his tenancy expired under the registered deed on 12th July, 1948 long before the property was sold by Sethani Prabhabati Kanwar to the plaintiff. As there was no registered deed operative at the time when Debilal surrendered his tenancy rights to the property in dispute, no question arises that such surrender should have been only by a registered document. Thus, by virtue of surrender of his tenancy rights by Debilal, the plaintiff became entitled to maintain the suit for ejectment against the sub-tenant.
9. The Delhi and Ajmer Rent Control Act, 1952, which was in force at the time when the suit was filed, contained a statutory provision that the sub-tenant on the termination of the tenancy of the tenant becomes the tenant of the landlord. The provision is contained in sec. 20 which runs, as follows:
“Where the interest of a tenant of any premises is determined for any reason, any sub-tenant to whom the whole of any part of such premises has been lawfully sub-let whether before or after the commencement of this Act, shall subject to the provisions at this Act be deemed to become the tenant of the landlord on the same terms and conditions on which he would have held from the tenant if the tenancy had continued.”
By operation of sec. 20 of the said Act, Mohanlal defendant became the tenant of the plaintiff and the plaintiff became entitled to file the suit for ejectment.
10. As a result of the aforesaid discussion, it must be held that the plaintiff had a right to maintain the suit for ejectment and arrears of rent in spite of the fact that there was no privity of contract between him and Mohanlal defendant.
11. The appeal is, therefore, allowed and the judgment and decree dated 10.8.1960 of the Senior Civil judge, Ajmer are set aside and the judgment and decree of the trial court are restored. The defendant is, however, granted two months' time for delivering possession of the suit property to the plaintiff. Learned counsel for the plaintiff-appellant does not press for costs in this Court as well as in the lower courts as the defendant is the step-brother of the plaintiff. Parties shall bear their own costs throughout.
12. Learned counsel for the defendant-respondent prays for leave to appeal to a Division Bench. Leave to appeal is refused.
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