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Smart Summary

Summary of the Opinion (G.N. Prasad, J.)

Factual and Procedural Background

The plaintiff instituted a suit for declaration of his title and recovery of khas possession over a house property comprised in plot No. 463 of Mauza Kirkend within Pargana Jharia, together with a claim for damages for use and occupation. The property originally belonged to the defendants or their predecessor in interest and was conveyed to the plaintiff by a registered sale deed (Ext. 1) dated 9 October 1922 for Rs. 5,000 (being certain earlier dues). After the sale, the defendants continued in possession as tenants. Lachmi Narain (father of the principal defendants) acknowledged tenancy by letter (Ext. 13-e) on the date of the sale; rent was fixed at Rs. 7.8.0 per month for part of the house. Subsequent Kirayanamas made Lachmi Narain (and the family) tenants of the entire house, the last Kirayanama being executed in Magh 1988 (corresponding to sometime in 1932). The defendants paid rent until 1938.

On 3 January 1945 the plaintiff served a pleader's notice to quit (Ext. 6) calling upon the defendants to vacate at the expiry of Magh 2001 Sambat. The plaintiff alleged subsequent demands for vacant possession were ignored and therefore instituted the present suit on 9 March 1953.

At trial the defendants' plea of adverse possession succeeded and the suit was dismissed. On appeal the Single Judge reversed the trial Court, decreed the suit and held that the tenancy continued until 3 January 1945 when the plaintiff determined the tenancy by serving Ext. 6, and that the suit was within time under Article 139 of the Limitation Act, 1908. The principal defendants appealed by Letters-Patent.

Legal Issues Presented

  1. When did the relationship of landlord and tenant between the parties cease — i.e., what is the starting point of limitation for the plaintiff's suit?
  2. Whether the defendants acquired title to the property by adverse possession/prescription prior to institution of the suit.

Arguments of the Parties

Plaintiff-Respondent's Arguments

  • The tenancy was validly determined by the pleader's notice to quit dated 3 January 1945 (Ext. 6), given under clause (h) of section 111 of the Transfer of Property Act.
  • The suit, instituted on 9 March 1953, was within twelve years from the expiry of the notice and therefore not barred by limitation (Article 139, Limitation Act, 1908).

Principal Defendants (Appellants)' Arguments

  • The relationship of landlord and tenant ended by efflux of time one year after the last Kirayanama (Ext. 13.b), i.e., with effect from 22 February 1933, so that thereafter they exercised acts of ownership.
  • They ceased paying rent by 1938 and thereafter paid taxes (Choukidar and water tax) in their own names as owners; they claimed adverse possession from about 1938–1939 and asserted title by prescription, barring the plaintiff's suit by limitation.
  • Reliance was placed upon Vadapalli Narsimham v. Dronamaraju Seetharamamurthy (ILR 31 Mad 163) to contend that representatives of a tenant on sufferance are mere trespassers and the lessor's assent alone cannot convert such representatives into tenants without their concurrence.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bilas Kunwar v. Desraj Ranjit Singh, 42 Ind App 202 : AIR 1915 PC 96 (Privy Council) The estoppel rule in section 116 of the Evidence Act applies so long as the tenant has not openly restored possession by surrender to his landlord. The Court invoked this authority to support that a tenant cannot deny the landlord's title while tenancy continues and until possession is surrendered; thus defendants could not deny the plaintiff's title so long as they had not restored possession.
Seshamma Shettati v. Chickaya Hegade, ILR 25 Mad 507 (Madras Division Bench) Person who comes into possession as tenant cannot, during the continuance of such relation, set up title adverse to the landlord or acquire title by limitation inconsistent with leasehold status. The Court relied on this principle to hold defendants could not claim absolute ownership by prescription unless they had lawfully determined the tenancy by offering to put the lessor in possession.
Madhavrao Waman v. Raghunath Venkatesh, ILR 47 Bom 798 : AIR 1923 PC 205 (Privy Council) No tenant in India can obtain a right to permanent tenancy by prescription against his landlord. The Court applied the principle to conclude that a tenant cannot obtain absolute title by prescription against the landlord; this supports rejecting defendants' prescription claim.
Nainapillai Marakayar v. Ramanathan Chettiar, ILR 47 Mad 337 : AIR 1924 PC 65 (Privy Council) Reinforces that tenants cannot by prescription acquire permanent tenancy or title adverse to landlord. The Court used this authority together with Madhavrao to show defendants could not assert absolute title by prescription while tenancy subsisted.
Vadapalli Narsimham v. Dronamaraju Seetharamamurthy, ILR 31 Mad 163 Held that representatives of a tenant on sufferance are mere trespassers and landlord's assent alone cannot convert them into tenants without their concurrence (fact-specific ruling). The appellants relied on this case, but the Court distinguished it on the facts (there was rent acceptance and no evidence that the principal defendants entered only after Lachmi Narain's death). The Court therefore found Vadapalli inapplicable to the present facts.

Court's Reasoning and Analysis

The Court identified the single question as the starting point of limitation — when did the landlord-tenant relationship cease. It analyzed the statutory provisions of the Transfer of Property Act cited in the opinion:

  • Clause (a) of section 111: a lease is determined by efflux of the time fixed by it.
  • Clause (q) of section 108: on determination of the lease the lessee is bound to put the lessor in vacant possession.
  • Section 116 of the Transfer of Property Act: where lessee remains in possession after determination and the lessor accepts rent (or otherwise assents), the lease is renewed from year to year or month to month (according to purpose).

From these provisions the Court reasoned that mere expiry of the lease term does not itself convert the lessee into a trespasser unless the lessee fails to put the lessor in possession and the lessor does not accept continuation. If the lessor accepts rent or otherwise assents to continued possession, section 116 operates to create a periodic tenancy (year-to-year or month-to-month) and the landlord must determine that tenancy by the notice prescribed under section 111(h).

Applying those principles to the facts, the Court observed:

  • The defendants remained in possession after 22 February 1933 (the date said to mark efflux) and the plaintiff accepted rent from them at least until 1938; thereafter the plaintiff took no steps to determine the tenancy until he served the notice to quit on 3 January 1945 (Ext. 6).
  • Payments of Choukidari and water taxes by the defendants in their own names did not, in law, terminate the landlord-tenant relationship; such payments could not substitute for the lessee's statutory obligation to put the lessor in possession (section 108(q)).
  • Section 116 of the Evidence Act prevents a tenant, during the continuance of the tenancy, from denying the landlord's title at the beginning of the tenancy; the Privy Council (Bilas Kunwar) extended that estoppel until the tenant surrenders possession.
  • Authorities (Seshamma Shettati and Privy Council decisions Madhavrao and Nainapillai) establish that a tenant holding under a lease cannot, during the tenancy, acquire title adverse to the landlord by prescription; to do so the tenancy must first be lawfully determined and the lessee must remain as a trespasser for the statutory period.

The Court considered and distinguished Vadapalli (ILR 31 Mad 163): in that case the representatives entered only after the lessee's death and there was no rent paid or assent by the landlord during the lessee's life; thus the representatives were trespassers. In the present case the record did not show that the principal defendants entered only after Lachmi Narain's death, and the plaintiff had accepted rent until 1938; moreover, the defendants had not led evidence of Lachmi Narain's date of death or that they had been in possession for twelve years as his heirs. On the pleadings (and absence of contrary evidence), the Court concluded the defendants were tenants along with Lachmi Narain from the outset and continued to hold under the tenancy.

Consequently, the Court found there was no lawful determination of tenancy by the defendants (no offer or act of putting the plaintiff in possession in accordance with section 108(q)), and therefore the defendants could not claim title by prescription prior to the notice given by the plaintiff in January 1945.

Holding and Implications

Holding: The appeal is dismissed and the decree of the learned Single Judge is upheld; the tenancy was validly determined by the plaintiff's notice to quit dated 3 January 1945, and the plaintiff's suit, instituted on 9 March 1953, was within the twelve-year period under Article 139 of the Limitation Act, 1908.

Implications:

  • Direct effect on parties: The plaintiff's suit is not barred by limitation and the plaintiff prevailed on the limitation point; the defendants' claim to ownership by prescription was rejected because the tenancy continued (by operation of section 116) until the plaintiff's notice and there was no lawful determination by the defendants prior to that notice.
  • The Court applied established statutory provisions and precedents to the facts; it distinguished contrary case law on its specific facts (Vadapalli). The opinion applies settled principles about holding-over tenants, acceptance of rent, estoppel under Evidence Act s.116, and the inability of a tenant to acquire adverse title by prescription without first lawfully terminating the tenancy. The decision is an application of existing law rather than the announcement of a new legal principle.

Disposition: Appeal dismissed with costs payable to the plaintiff-respondent (per G.N. Prasad, J.; Misra, J. concurred).

    Surajmal Marwari And Others v. Rampearaylal Khandelwal And Others

    G.N Prasad, J.:— This is an appeal by the principal defendants (defendants 1 to 3) in a suit instituted by the plaintiff-respondent for declaration of his title to and recovery of khas possession over a house property comprised in plot No. 463 of Mauza Kirkend within Pargana Jharia. There was also a claim for damages for use and occupation of the property.

    2. It is now undisputed that the property which originally belonged to the defendants or their predecessor in interest was conveyed to the plaintiff a registered sale deed (Ext. 1) dated the 9th October, 1922 for a consideration of Rs. 5,000/- made up of certain earlier dues of the defendants to the plaintiff. It is also undisputed that after the title had passed to the plaintiff, the defendants continued in possession of the property as tenants under the plaintiff. A letter (Ext. 13/- e) acknowledging the tenancy was written by Lachmi Narain, the father of the principal defendants, on the very day on which the sale deed (Ext. 1) was executed, and the rent agreed upon was Rs. 7.8.0 per month for a portion of the house. Subsequently, other documents described as Kirayanamas were executed by Lachmi Narain whereby the defendants became tenants in respect of the entire house. The last of such Kirayanamas was executed by Lachmi Narain is Magh 1988 corresponding to sometime in 1932. The defendants paid rent to the plaintiff in terms of the agreement until 1938. On the 3rd January, 1945, the plaintiff gave a pleader's notice to quit (Ext. 6) calling upon the defendants to vacate the house and to restore the plaintiff to possession over it at the expiry of Magh 2001 Sambat. The case of the plaintiff is that thereafter he made further demands for vacant possession of the house from the defendants, but the defendants failed to restore possession to him. Accordingly, he instituted the present suit for the reliefs mentioned above on the 9th March, 1953.

    3. The defence put forward by the principal defendants so far as they are now relevant, was that the relationship of landlord and tenant between them and the plaintiff came to end with effect from the 22nd February, 1933, that is to say, upon the expiry of one year from the date of execution of last Kirayanama (Ext. 13.b) in favour of the plaintiff. According to the defendants, after that day, they began to exercise acts of ownership over the property in suit and paid Choukidar taxes and Water Board tax in their capacity as owners of the property. In this way, they remained in adverse possession over the property at least from 1938–1939 when they had stopped the payment of rent to the plaintiff. Such adverse possession having continued for over twelve years, the defendants had become absolute owners of the property and therefore, the suit instituted in 1953 was barred by limitation.

    4. The defence of adverse possession succeeded in the trial Court which, accordingly, dismissed the suit. On appeal, however, the learned Single Judge reversed the decision of the trial Court and decreed the suit holding that the relationship of landlord and tenant which subsisted between the parties continued, until the 3rd January, 1945, when the plaintiff determined the tenancy by the notice (Ext. 6), and that the suit having been instituted within twelve years from that date, was not barred by limitation in view of Article 139 of the Limitation Act, 1908. Hence this-appeal by the principal defendants under the Letters-Patent.

    5. The only question for our decision is what was the starting point of limitation in this case. In other words, when did the relationship of landlord and tenants cease. According to the plaintiff, the-tenancy came to an end by virtue of the notice (Ext. 6) which was a notice to quit in terms of clause (h) of section 111 of the Transfer of Property Act (hereinafter referred to as the Act) and the suit instituted within twelve years of the expiration of the said notice determine the lease is within time. As against this, the case of the principal defendants is that the tenancy was determined by efflux of time upon expiry of one year from the date of the last kirayanama (Ext. 13.b) which had been executed by Lachmi Narain in favour of the plaintiff on the 21st February, 1932. Since, however, the defendants had continued to pay rent to the plaintiff until 1938, the relationship of landlord and tenant may have continued until that year, but after 1938, such relationship has ceased and the defendants were in possession of the property as trespassers to the knowledge of the plaintiff for more than twelve years before the institution of the suit.

    6. The stand taken by the principal defendants is manifestly untenable having regard to the provisions of clause (q) of section 108 read with clause (a) of section 111 of the Act. Clause (a) of section 111, no doubt, provides that a lease of immovable property is determined by efflux of the time limited thereby. But clause (q) of section 108 lays down that on the determination, the lessee is bound to put the lessor in vacant possession of the property. Having regard to these two provisions, it is abundantly clear that when the term of a lease has expired, the lessee can determine the lease by fulfilling his obligation of putting the lessor into possession of the property. But if the lessee does not put the lessor into possession of the property, and on the contrary, remains in possession thereof, then he does not become a trespasser in relation to the property, but his status is that of a tenant on sufferance. Such a case is governed by section 116: of the Act which is in the following terms:

    “If a lessee or under lessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor or his legal representative accepts rent from the lessee or under lessee, or otherwise to his continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed from year to year or from month to month, according to the purpose for which the property is leased, as specified in section 108.”

    7. In such a situation, it is open to the lessor to determine the lease by a notice as provided in clause (h) of section 111, and so long as the lessor does not exercise his option in the matter and assents to the lessee continuing in possession, the relationship of landlord and tenant does not legally come to an end. It is clear from the provisions of section 116 quoted above that the lease is renewed from year to year, or from month to month, as the case may be, not only where the lessee is continuing in possession of the property and pays rent to the lessor or his legal representative, which the latter accepts, but also where the lessor otherwise assents to the lessee continuing in possession.

    8. It is clear from the relevant provision of the Act referred to above that even after the 22nd February, 1933, the principal defendants had remained in possession of the property as lessees under the plaintiff who had accepted rent from them at least till 1938 and, thereafter the plaintiff had assented to the defendants continuing in possession thereof by taking no steps to determine the lease until the expiry of the notice to quit (Ext. 8) which they gave in terms of section 111(h) to the defendants on the 3rd January, 1945. It follows that the relationship of landlord and tenant did not automatically come to fan end with effect from the 22nd February, 1933 or even after the last payment of rent in 1938 so as to convert the possession of the defendants as lessees into their possession as trespassers. It is true that the defendants had paid Choukidari tax in their own names since 1937, as the Choukidari receipts, Exts. C series would show. They had also paid the water tax in their own names since 1941–1942, as the receipts (Exts. D series) granted, to them by the Jharia Water Board would show. They purported i.e make these payments as owners, and not as mere occupiers; but merely by making such payments of taxes and rates even as owners, the defendants could not lawfully put an end to the relationship of landlord and tenant until they had offered to put the plaintiff in possession of the property in accordance with section 108(q) of the Act, Such payments would be of no avail to the defendants until they had lawfully put an end to the relationship of landlord and tenant by putting or offering to put the lessor into possession of the property upon expiry of the terms of the lease as mentioned in the last Kirayanama (Ext. 13.b). It follows that even after the 22nd February, 1933 or after 1938, the defendants were holding over in terms of section 116 of the Act, in consequence of which the relationship of landlord; and tenant between the parties was continuing until January 1945, when the plaintiff gave the notice to quit (Ext. 6). It is also clear that so long as the relationship of landlord and tenant was subsisting by virtue of section 116 of the Act, it was not open to the defendants to deny the title of the plaintiff.

    9. In this connection I may also refer to section 116 of the Evidence Act which provides:

    “No tenant of immovable property, or person claiming through such tenant, shall, during the continuance of the tenancy, be permitted to deny that the landlord of such tenant had, at the beginning of the tenancy, a title to such immovable property; and no person who came upon any immovable-property by the licence of the person in possession thereof shall be permitted to deny that such person had a title to such possession at the time when such license was given.”

    10. This section, in terms, no doubt refers to the title of the landlord at the commencement of the tenancy, but it is clear from the decision of the Privy Council in Bilas Kunwar v. Desraj Ranjit Singh, 42 Ind App 202 : (AIR 1915 PC 96) that the rule of estoppel laid down in the section also applies to a tenant so long as he has not openly restored possession by surrender to his landlord.

    11. Another principle which is well established is that so long as the relationship of landlord and tenant has not been lawfully determined by the tenant by discharging the obligation which rests upon him under section 108(q) of the Act, he cannot claim a higher right in the leasehold property by prescription against his landlord. This principle was laid down by a Division Bench of the Madras High Court in Seshamma Shettati v. Chickaya Hegade, ILR 25 Mad 507, where it was held that a person who had lawfully come into possession of land as tenant from year to year or for a term of years, or as mortgagee, cannot, by setting up, during the continuance of such relation, any title adverse to that of the landlord or mortgagor, as the case may be, inconsistent with the real legal relation between them,—and that however notoriously and to the knowledge of the other party—acquire, by the operation of the law of limitation, title as owner or any other title inconsistent with that under which he was let into possession. It was further laid down in this decision that if, after the determination of the tenancy, the tenant remains in possession as trespasser for the statutory period, he will, by prescription, acquire a right as owner or such limited estate as he might prescribe for. Therefore, before the defendants can claim any right by prescription they must establish that they had determined the tenancy by putting or offering to put the plaintiff in possession of the property. There is absolutely no material on the record that any such step was taken by the defendants to put an end to the tenancy until the plaintiff himself determined the tenancy by the notice to quit (Ext. 6).

    12. I may also refer to two decisions of the Privy Council, in both of which the opinion of the Board was expressed by Sir John Edge, namely, Madhavrao Waman v. Raghunath Venkatesh, ILR 47 Bom 798 : (AIR 1923 PC 205) and Nainapillai Marakayar v. Ramanathan Chettiar, ILR 47 Mad 337 : (AIR 1924 PC 65). The principle laid down in these two decisions is that no tenant of lands in India can obtain any right to a permanent tenancy by prescription in them against his landlord from whom he holds the land. It is true that the tenants in possession in both these cases were claiming a right of permanent tenancy by prescription, although they were not let into possession as permanent tenants, but the same principle must apply where a tenant who has been let into possession by the landlord claims title as absolute owner by prescription against the landlord. Upon the authorities referred to above, it is manifest that the defendants cannot successfully assert their claim of absolute title against the plaintiff.

    13. On behalf of the appellants, reliance was, however, placed upon a Bench decision of the Madras High Court in Vadapalli Narsimham v. Dronamaraju Seetharamamurthy, ILR 31 Mad 163, wherein it was held that a tenant holding over after the expiry of his term becomes a tenant on sufferance and the landlord's assent alone will suffice to convert such a tenancy into a tenancy from year to year, or from month to month, according to the nature of the original lease. But the representatives of a tenant on sufferance are mere trespassers, and the lessor cannot, by his assent alone, convert such representatives into tenants without their concurrence. Upon the authority of this case, it was contended by the learned counsel for the appellants that the principal defendants being the representatives of Lachmi Narain, the original tenant, were mere trespassers, who could not be converted into tenants by the mere assent of the plaintiff in allowing them to continue in possession. In raising this contention, the learned counsel has assumed that the principal defendants had no interest in the leasehold property during the lifetime of Lachmi Narain, that Lachmi Narain was the tenant in his individual capacity and that the principal defendants succeeded to his interest after his death and remained in possession of the property for more than twelve years after Lachmi Narain's death. But the materials on the record do not justify these assumptions. According to the case of the plaintiff set out in the plaint, Lachmi Narain had taken the lease of the house on behalf of his joint family. This is apparent from paragraph 10 of the plaint wherein it has been said:

    “Accordingly, the said Lachminarain, father of the principal defendants, the then Karta of Lachmi Narain Surajmal firm, took rent of a part of the house on a monthly rental of Rs. 7-8-0 and in token thereof wrote in favour of the said Murlidhar on the same date, i.e, on Kartik Badi 3, Sal 1979 Sambat corresponding to 9-10-1922, a letter acknowledging the monthly tenancy of the part of the house referred to above and described in the schedule below.”

    14. No doubt, in paragraph 25 of the written statement, the principal defendants alleged that they had separated from Lachmi Narain during his lifetime more than twenty-five years ago and the property in suit had fallen to the share of these defendants who were in possession thereof in their own right to the exclusion of Lachmi Narain and the other members of their family. But no issue was raised on this point and, therefore, no finding has been arrived at, either by the trial Court or by the learned Single Judge, one way or the other. At any rate, the stand now taken on behalf of the principal defendants to the effect that they acquired interest in the suit property after the death, of Lachmi Narain is contrary to the case which they sought to make out in their written statement. The defendants have also led no evidence on the point as to when Lachmi Narain died or that he died more than twelve years before the institution of the present suit. Therefore, it is not possible to proceed upon the assumption that the principal defendants had no interest in the suit property during the lifetime of Lachmi Narain and that they were in possession thereof for more than twelve years before the institution of the suit as heirs of Lachmi Narain. As the averments in the plaint stand, it is manifest that the defendants were the tenants of the house property along with Lachmi Narain from the very inception. This part of the plaintiff's case has not been negatived and; therefore, it is not open to the principal defendants to urge at this stage that only Lachmi Narain was the lessee who was holding over after the expiry of the term of the lease, and that after his ff death, the defendants were in possession as trespassers.

    15. In Vadapalli's case, ILR 31 Mad 163, the lessee was-one Sanyasi and he took the lease in January 1884 for a term of three years ending in April 1887, and paid rent to the landlord till 1887. He did not pay any rent after the expiry of the term of the lease and died in 1889, whereupon defendants Nos. 2 to 6 in that suit entered upon the property as his representatives. But they did not pay any rent for the property until the institution of the suit in 1903.

    16. In these circumstances, the learned Judges of the Madras High Court held that there was no evidence of any assent on the part of the landlord during Sanyasi's life which could have converted him from a tenant on sufferance into a tenant in the true sense of the term either at will or from year to year. That was, therefore, a case in which defendants Nos. 2 to 6 had no interest in the leasehold during Sanyasi's lifetime and the landlord also had not assented to Sanyasi's holding over as a tenant beyond the term of the original lease. After entering upon the property defendants Nos. 2 to 6 also did not acknowledge the tenancy by paying rent to the landlord. It was in these circumstances that the learned Judges of the Madras High Court took the view that defendants Nos. 2 to 6 were mere trespassers and the lessor could not by his assent alone convert them into tenants without their concurrence. As I have pointed out above, the situation in the present case is entirely different. Here it has not been shown that the principal defendants entered upon the property for the first time after Lachmi Narain's death. Besides, the plaintiff had assented to Lachmi Narain holding over after the expiry of the lease by accepting rent from him until 1938. Therefore, the defendants must be deemed to have continued in possession of the property on the same term as Lachmi Narain. They cannot claim to have inherited any higher right or lesser obligations than those governing Lachmi Narain. I must, therefore, overrule the contention of the learned Counsel that the principal defendants were mere trespassers over the property after Lachmi Narain's death. It follows that the tenancy was validly determined in January 1945 by the notice to quit (Ext. 6).

    17. From the foregoing discussions, it is abundantly clear that the starting point of limitation for the present suit was the expiry of the period of notice which the plaintiff gave to the defendants on the 3rd January, 1945, and that the suit having been instituted within twelve years of that date, is not barred by-limitation.

    18. The result, therefore, is that the decision of the learned single Judge is upheld and the appeal is dismissed with costs payable to the plaintiff-respondent.

    19. Misra, J.:— I agree.

    JI/AGT/RGD

    20. Appeal dismissed.

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    Comments

    Surajmal Marwari And Others v. Rampearaylal Khandelwal And Others
    (May 12, 1965)