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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
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Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 21 of U.P Act 13 of 1972
  • Section 109 of the Transfer of Property Act
  • Section 5 read with Section 109 of T.P Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 21 of U.P Act 13 of 1972
  • Section 109 of the Transfer of Property Act
  • Section 5 read with Section 109 of T.P Act
Smart Summary

Factual and Procedural Background

The respondent-tenant occupied two adjacent shops under a single lease from co-owners Jado Ram (3/8 share) and Asha Ram (5/8 share). The appellant, Mohar Singh, purchased Jado Ram’s 3/8 share, while Asha Ram’s 5/8 share ultimately went to one Gyan Chand. Following a civil partition decree between Gyan Chand and the appellant, the co-ownership was severed and the appellant became the exclusive owner of one of the shops now in dispute.

Invoking Section 21 of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, the appellant sought eviction of the tenant on the ground of his own bona fide need. The Prescribed Authority ordered release and possession; the District Judge dismissed the tenant’s statutory appeal. The tenant then approached the Allahabad High Court (Civil Misc. Writ No. 2280 of 1979), which set aside the concurrent orders. The present Supreme Court appeal was filed by special leave against that High Court decision.

Legal Issues Presented

  1. Whether an assignee of a defined part of the landlord’s reversionary interest can, without joinder of the other lessor, seek eviction of the tenant from the corresponding portion of the demised premises in view of Section 109 of the Transfer of Property Act, 1882.
  2. Whether a partition of jointly owned property, resulting in exclusive ownership of part of the demised premises, is equivalent to a “transfer” attracting Section 109 of the Transfer of Property Act.

Arguments of the Parties

Respondent-Tenant’s Arguments

  • The transfer of only a part of the reversion to the appellant could not split the integrity of the unified tenancy; eviction must be sought jointly by all lessors.
  • The tenant had never consented to any such splitting, rendering the appellant’s unilateral action impermissible.
  • Section 109 of the Transfer of Property Act does not apply to a partition because partition is not a “transfer”; hence the appellant derives no independent right to sue for eviction.
  • Reliance was placed on Badri Narain Jha v. Rameshwar Dayal Singh, 1951 SCR 153, to contend that severance of interest should not disturb the integrity of the lease.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Puthiapurayil Kannyan Baduvan v. Chennyanteakath Puthiapurayil Alikutti, AIR 1920 Mad 838 An assignee of part of the reversion is entitled, upon expiry of the term, to eject the tenant from the land covered by the assignment. Cited as authoritative support that Section 109 creates an exception to the rule against splitting tenancies; assignee may sue independently.
Harihar Banerji v. Ramshashi Roy, AIR 1918 PC 102 The original lessor cannot sue to recover possession of only a part of the demised premises. Quoted to contrast the position of the original lessor with that of an assignee; emphasised that the limitation on the lessor does not bind the assignee under Section 109.
Badri Narain Jha v. Rameshwar Dayal Singh, 1951 SCR 153; AIR 1951 SC 186 Inter se partition among lessees does not affect their joint liability to the lessor; integrity of the lease remains intact. Distinguished as dealing with splitting of lessee’s, not lessor’s, interest; therefore inapplicable to the present facts.
Ram Chandra Singh v. Ram Saran, AIR 1978 All 173 Section 109 T.P. Act applies even where the landlord’s interest is separated by partition. Referred to show that the same High Court had earlier held partition cases to fall under Section 109; Supreme Court applied that reasoning.

Court's Reasoning and Analysis

The Supreme Court noted that findings on the appellant’s bona fide need were already concluded in his favour and unchallenged. The only surviving question was the legal effect of the severance of the reversion.

1. Statutory Exception under Section 109 T.P. Act: The Court reaffirmed that, although a landlord ordinarily cannot split a tenancy and sue for partial eviction, Section 109 expressly authorises an assignee of a part of the reversion to “possess all the rights of the lessor” concerning the portion transferred. Attornment by the tenant is effected by operation of law; no consent is required.

2. Impact of Partition: While recognising that partition is technically not a “transfer,” the Court observed that several High Courts—including the Allahabad High Court in Ram Chandra Singh—have applied Section 109 or its underlying principles to partition situations. Without deciding the doctrinal debate, the Court applied the same rule here, treating the appellant, post-partition, as entitled to rely on Section 109.

3. High Court’s Error: The High Court failed to consider the effect of the partition decree and overlooked the statutory exception. Its reasoning that splitting the tenancy required the tenant’s consent was held contrary to the settled position elucidated in Puthiapurayil Kannyan Baduvan and related authorities.

Holding and Implications

APPEAL ALLOWED; High Court judgment set aside; order of the Third Additional District Judge, Muzaffarnagar, in Rent Control Appeal No. 48 of 1978 restored.

Consequently, the appellant regains the right to obtain possession of the shop allotted to him in the partition decree. The decision clarifies that an assignee or partition-allottee of a defined portion of the reversion may, under Section 109 of the Transfer of Property Act, independently seek eviction from that portion without the participation of other co-lessors. No broader precedent was expressly created beyond reaffirming the established statutory interpretation.

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    Mohar Singh (Dead) By Lrs v. Devi Charan And Others

    M.N Venkatachaliah, J.— This appeal, by special leave, is by the landlord preferred against the judgment and order dated March 28, 1980 by the High Court of Judicature at Allahabad in Civil Misc. Writ No. 2280 of 1979 setting aside, at the instance of the first respondent-tenant, the concurrent orders of the courts below granting possession to the appellant.

    2. The first respondent was a tenant of two adjacent shops, under a single lease, obtained from two co-owners Shri Jado Ram and Asha Ram who had, respectively 3/8th and 5/8th shares in the property. Appellant, Mohar Singh became the transferee of the 3/8th share of Jado Ram. Similarly, Asha Ram's 5/8th interest came to be transferred, through an intermediary alienation, to a certain Gyan Chand. Pursuant to a decree in a civil suit for partition between Gyan Chand and the appellant, the co-ownership came to an end and towards his share appellant was allotted, and became the exclusive owner of, one of the shops. That is the subject-matter of the present proceedings.

    3. Appellant instituted proceedings for eviction against the first respondent under Section 21 of U.P Act 13 of 1972 before the prescribed authority on the ground of his own bona fide need. The prescribed authority ordered release of the premises and made an order granting possession. The appeal preferred by the first respondent before the District Judge, Muzaffarnagar was dismissed. First respondent then moved the High Court in Writ No. 2280 of 1979.

    4. The findings as to the bona fides and reasonableness of the requirement of the appellant stand concluded by the concurrent findings of the statutory authorities. Indeed that was not also the ground on which the order of eviction was assailed before the High Court in the writ petition.

    5. Before the High Court what was urged by the first respondent, and accepted by the High Court, was the contention that the severance of the reversion and assignment of that part of the reversion in respect of the suit shop in favour of the appellant did not clothe the appellant with the right to seek eviction without the other lessor joining in the action; and that in claiming possession of a part of the subject-matter of the original lease the appellant was seeking to split the integrity and unity of the tenancy, which according to the first respondent, was impermissible in law.

    6. The High Court does not appear to have considered the effect of the partition decree between erstwhile co-owners and of the appellant, consequently, having become the exclusive owner of one of the shops. The reasoning that appears to have commended itself to the High Court in setting aside the order made by the courts below granting possession, is somewhat on these lines:

    “But unless such a situation has been created with the consent of all of them, the effect of transfer of a portion of the accommodation would be that in place of one lessor would be substituted two lessors, even though of defined portions of the accommodation let out to the lessee. It cannot be denied that one of the two joint lessors cannot institute a suit for ejectment or apply for permission to file such a suit in respect of a portion of the accommodation. . . . In other words even now as a result of transfer of a part of the building under tenancy the splitting up of the tenancy cannot be permitted unless the tenant has agreed to it. On this view of the matter, the impugned orders are liable to be quashed.”

    7. It is a trite proposition that a landlord cannot split the unity and integrity of the tenancy and recover possession of a part of the demised premises from the tenant. But Section 109 of the Transfer of Property Act provides a statutory exception to this rule and enables an assignee of a part of the reversion to exercise all the rights of the landlord in respect of the portion respecting which the reversion is so assigned subject, of course, to the other covenant running with the land. This is the true effect of the words “shall possess all the rights . . . of the lessor as to the property or part transferred ...” occurring in Section 109 of the T.P Act. There is no need for a consensual attornment. The attornment is brought about by operation of law. The limitation on the right of the landlord against splitting up of the integrity of the tenancy, inhering in the inhibitions of his own contract, does not visit the assignee of the part of the reversion. There is no need for the consent of the tenant for the severance of the reversion and the assignment of the part so severed. This proposition is too well settled to require any further elucidation or reiteration. Suffice it to refer to the succinct statement of the law by Wallis, C.J in Kannyan v. Alikutti AIR 1920 Mad 838:

    “A lessor cannot give a tenant notice to quit a part of the holding only and then sue to eject him from such part only, as pointed out quite recently by the Privy Council in Harihar Banerji v. Ramshashi Roy AIR 1918 PC 102. Consequently, if the suit is brought by the original lessor the answer to the question referred to us must be in the negative because such a suit does not lie at all. Other considerations, however, arise, where, as in the present case, the original lessor has parted in whole or in part with the reversion in part of the demised premises. Under the general law such an assignment effects a severance, and entitles the assignee on the expiry of the term to eject the tenant from the land covered by the assignment.”

    8. Shri Uma Dutta, learned counsel for the respondent-tenant, however, relied on the pronouncement of this Court in Badri Narain Jha v. Rameshwar Dayal Singh 1951 SCR 153, AIR 1951 SC 186 to support his contention that severance and assignment of a part of the reversion would not affect the integrity of the lease. We are afraid, reliance on this case is somewhat misplaced. This was a converse case where this Court considered the effect of splitting up of the interest of the lessees, inter se. In that context, Mahajan, J. said:

    “An inter se partition of the mokarrari interest amongst the mokarraridars as alleged by the plaintiffs could not affect their liability qua the lessor for the payment of the whole rent, as several tenants of a tenancy in law constitute but a single tenant, and qua the landlord they constitute one person, each constituent part of which possesses certain common rights in the whole and is liable to discharge common obligations in its entirety. . . . There is a privity of the estate between the tenant and the landlord in the whole of the leasehold and he is liable for all the covenants running with the land. In law, therefore, an inter se partition of the mokarrari interest could not affect the integrity of the lease . . . .”

    This is an altogether different proposition.

    9. The next contention of Shri Uma Dutta is that, at all events, what flows from a “transfer” under Section 5 read with Section 109 of T.P Act cannot be predicated of a partition as partition is no “transfer”. It is true that a partition is not actually a transfer of property but would only signify the surrender of a portion of a joint right in exchange for a similar right from the other co-sharer or co-sharers. However, some decisions of the High Courts tend to the view that even a case of partition is covered by Section 109 and that, in any event, even if the section does not in terms apply the principle of the section is applicable as embodying a rule of justice, equity and good conscience. We need not go into this question in this case. Suffice it to say that the same High Court itself, from whose decision this present appeal arises, in Ram Chandra Singh v. Ram Saran AIR 1978 All 173, (1978) 1 Ren CR 368, 1978 All LJ 165, (1978) 2 Ren CJ 191 has taken the view that Section 109 of T.P Act is attracted to the case of partition also. That was a decision which the learned judge in the present case should have considered himself bound by, unless there was a pronouncement of a larger Bench to the contrary or unless the learned judge himself differed from the earlier view in which event the matter had had to go before a Division Bench.

    10. The correctness of the decision in Ram Chandra Singh case AIR 1978 All 173, (1978) 1 Ren CR 368, 1978 All LJ 165, (1978) 2 Ren CJ 191 was not assailed before us and, therefore, we do not feel called upon to pronounce on it. We should, we think apply the same rule to this case. Several other High Courts have also taken this view, though, however, some decisions have been content to rest the conclusion on the general principle underlying Section 109, T.P Act, as a rule of justice, equity and good conscience.

    11. In the result, this appeal is allowed, the order of the High Court set aside and that of the Third Additional District Judge, Muzaffarnagar in Rent Control Appeal No. 48 of 1978 restored. In the circumstances of this case, there will be no order as to costs.

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    Mohar Singh (Dead) By Lrs v. Devi Charan And Others
    (May 9, 1988)