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S. Safdar Ali v. Ambika Prasad Dube
Factual and Procedural Background
These two appeals arise from two ejectment suits instituted by Pandit Ambika Prasad Dubey (plaintiff) to recover land occupied by Safdar Ali (since deceased; represented in one appeal by a son and in the other appeal by his heirs). The land originally belonged to two brothers, Dwarka Prasad and Jwala Prasad. By family partition the land ultimately became the plaintiff's property.
Safdar Ali had entered and occupied the land from about 1890 and had a stock of wood and some residential constructions thereon. Various documents record payments of rent in advance and acknowledgments:
- A "raiyatnama" dated 12 November 1894 executed by Safdar Ali in favour of Mt. Lalmati (guardian of the two minors Dwarka and Jwala Prasad), reciting occupation and advance payment of Rs. 136-2-8 for four years.
- Receipts by Dwarka Prasad and Jwala Prasad (1901, 1902) covering advances of rent for several years.
- A receipt by Dwarka Prasad dated 1 September 1910 for Rs. 302-8-0 as rent advanced for 11 years (1 September 1910 to 1 September 1921).
- A duly registered kabuliyat dated 18 October 1916 executed by Safdar Ali in favour of Dwarka Prasad for 11 years; Dwarka Prasad acknowledged receipt of 11 years' rent on 20 October 1916.
- Receipts and an unregistered lease dated 8 August 1925 executed by Mt. Ketki Kuer (guardian of Mt. Bishen Kuer, representative-in-interest of Jwala Prasad) in favour of Safdar Ali for 11 years (with an endorsement acknowledging Rs. 198 as rent for the 11 years).
The plaintiff treated Safdar Ali as a tenant-at-will and served a 15-day notice dated 12 May 1926 to quit. Suit No. 311 of 1926 for ejectment was filed when Safdar Ali did not vacate. The trial court dismissed the suit; on appeal the District Judge decreed ejectment as to Dwarka Prasad's half but dismissed as to Jwala Prasad's half. The defendant appealed (Second Appeal No. 1263 of 1927). The plaintiff issued fresh notice in 1927 and initiated another suit which was dismissed by the lower courts; the plaintiff then appealed (Second Appeal No. 6 of 1929). The learned Subordinate Judge held the plaintiff precluded by equitable estoppel from disregarding the 11‑year period for which rent had been accepted and treated the defendant as entitled to retain possession; the plaintiff sought further appeal.
Legal Issues Presented
- Whether documents such as a registered "kabuliyat" executed by the occupier or an unregistered lease can be treated as a lease creating a tenancy for a term exceeding one year when such instruments are not in the form or registration required by Sections 105–107 of the Transfer of Property Act.
- Whether acceptance of rent in advance by the owner or his predecessor gives rise to an implied, personal obligation (collateral covenant) preventing ejectment for the period for which rent was accepted, enforceable against the owner and his representatives (subject to specified limits).
- Whether the 1894 "raiyatnama" or other documents operate to create a tenancy (lessor-lessee relationship) or merely a permission / licence to occupy.
- If the occupant cannot rely on an enforceable lease, whether equitable estoppel or a collateral personal obligation prevents the plaintiff (or his predecessors) from ejecting the occupant for the period covered by the advance payments.
Arguments of the Parties
Plaintiff's Arguments (Appellant)
- The plaintiff contended that any tenancy for a term exceeding one year or reserving a yearly rent can only be created by a registered lease; a "kabuliyat" executed by the tenant alone cannot be regarded as equivalent to such a lease (relying on Section 107 of the Transfer of Property Act).
- On that basis the plaintiff treated Safdar Ali as a tenant-at-will (monthly), entitled to be ejected on 15 days' notice and issued such notices in 1926 and 1927.
Defendant's Arguments (Respondent)
- The defendant resisted ejectment by relying on the documents and transactions evidencing acceptance of rent in advance and other acknowledgments, asserting entitlement to retain possession for the periods for which rent had been paid.
- The defendant relied on equitable estoppel arising from the acceptance of advance rent and the receipts and on the view that the possession was of a licensee or of a tenancy that could not be terminated by short notice; the Subordinate Judge treated the occupant as entitled to possession for the full term and held that, if a tenancy were to be presumed, a year-to-year tenancy requiring six months' notice (per Section 106 of the Transfer of Property Act) applied.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Kedar Nath v. Shankar Lal (Division Bench) | Held that a registered "kabuliyat" executed by the occupier and accepted by the owner is not sufficient to constitute a lease as defined in Section 105 of Act 4 of 1882 (Transfer of Property Act). | The Court relied on this decision to accept that the defendant could not rely on the "kabuliyat" (and related unregistered instruments) as a lease creating a term exceeding one year; such instruments are not equivalent to a lease under Sections 105–107. |
| Subramanian Chettiar v. Arunachalam Chettiar (Privy Council) | Established that a collateral agreement or personal obligation (e.g., payment or other promise) made in consideration of a lease may not be affected by evidentiary or registration provisions (held not affected by Section 92 Evidence Act nor required registration under Section 17 Registration Act or Section 107 Transfer of Property Act) and is enforceable as a personal obligation collateral to the lease. | The Court applied the principle to hold that acceptance of rent in advance gave rise to an implied personal covenant (collateral obligation) binding on the recipient and his representatives (except bona fide transferees for consideration), enforceable to prevent ejectment for the period covered by the advance payments. |
Court's Reasoning and Analysis
The Court proceeded in a series of analytical steps grounded in the documentary record and applicable legal principles:
- Characterisation of the documentary position:
- The Court observed that some documents (the 1916 "kabuliyat" and the 1925 unregistered lease) were either inadmissible as creating a lease or insufficient to constitute a lease under the statutory scheme (Sections 105–107 of the Transfer of Property Act).
- The 1894 "raiyatnama" was held not to create a tenancy; it amounted to a permission to occupy rather than a lessor-lessee relationship.
- Application of precedent on admissibility/character of kabuliyat:
- Relying on Kedar Nath v. Shankar Lal, the Court accepted that a registered "kabuliyat" executed by the occupier and accepted by the owner is not a lease as defined in Section 105 and hence cannot be equated to a lease creating a term exceeding one year for the purposes of registration law.
- Recognition of an implied personal obligation:
- The Court identified an important implied agreement arising from the plaintiff's predecessor's acceptance of rent in advance for 11 years: an obligation not to eject the payer for the period for which rent was accepted.
- That implied covenant was characterised as a personal, collateral obligation — binding on the conscience of the recipient and his representatives except bona fide transferees for consideration — and not as part of a transaction of lease.
- Reliance on Privy Council authority:
- The Court applied the principle in Subramanian Chettiar v. Arunachalam Chettiar that such collateral personal obligations are enforceable and are not defeated by evidentiary or registration provisions; these obligations need not be treated as part of the leasehold estate nor as a charge on the land.
- Conclusion as to entitlement to possession:
- Because the documents (kabuliyat and unregistered lease) could not be relied on as constituting a lease for the statutory term, but because the receipt/advance-rent situation created an enforceable personal covenant, the plaintiff was precluded from ejecting the defendant during the period for which rent had been accepted.
- The Court found no legal or moral objection to enforcing such a promise against the maker and those claiming under him, except bona fide transferees for consideration.
- Resulting disposition:
- The Court allowed the defendant's Second Appeal No. 1263 of 1927 and dismissed the plaintiff's Second Appeal No. 6 of 1929, thereby dismissing the plaintiff's suits that gave rise to the appeals and awarding costs (including counsel's fees in this Court on the higher scale).
Holding and Implications
Holding:
The Court allowed Second Appeal No. 1263 of 1927 and dismissed Second Appeal No. 6 of 1929; the plaintiff's ejectment suits were dismissed with costs (including higher-scale counsel fees in this Court).
Implications (direct effect on the parties):
- The defendant (and his representatives/heirs) is entitled to retain possession for the period covered by the advance payments accepted by the plaintiff's predecessor-in-interest, by virtue of an implied personal obligation not to eject for that period.
- The plaintiff's claims to eject on short notice were rejected insofar as they conflicted with the enforceable collateral covenant arising from acceptance of advance rent.
The opinion applies established authority (cited precedents) to resolve the dispute and enforces a collateral personal obligation; it does not purport to establish a new landmark principle beyond applying those authorities. No broader sweeping precedent beyond the cited authorities is announced in the text.
Niamatullah, J.:— These two appeals arise out of two suits brought by Pandit Ambika Prasad Dubey for ejectment of one Safdar Ali, who has since died and is now represented by one of his sons, the appellant in Appeal No. 1263 of 1927. The respondents in Appeal No. 6 of 1929 are all of his heirs, including the appellant in Appeal No. 1263 of 1927. The land in dispute we occupied by Safdar Ali, who had a stock of wood and some residential quarters on it. Originally it belonged to two brothers, Dwarka Prasad and Jwala Prasad. By a certain partition in the family the land in its entirety has fallen to the share of the plaintiff, who is the son of Dwarka Prasad. As the names of certain persons occur in the documents, which we shall have occasion to refer to, it is necessary to state at the outset what position they occupy in relation to this matter. The following pedigree will elucidate the facts:
2. It will be seen that Jwala Prasad had a son Ram Prasad. The latter's widow was Mt. Bishen Kuer, who was minor at the time certain documents were executed on her behalf by her mother, Mt. Ketki Kuer acting as her guardian. Dwarka Prasad and Jwala Prasad became the owners of this land, while still minors some time before 1890. Their affairs were managed on their behalf by Mt. Lalmati, their father's maternal grandmother. It was Mt. Lalmati, acting as guardian of Dwarka Prasad and Jwala Prasad, who allowed Safdar Ali to occupy the land in suit under some arrangement in 1890. It is said to have been a lease, but no lease has been produoed and there is no evidence in proof of one. The first document to which the defendant's possession can be traced is a raivat name, dated 12th November 1894, executed by Safdar Ali in favour of Mt. Lalmati as guardian of Dwarka Prasad and Jwala Prasad. It recites the fact that Safdar Ali had been occupying certain premises as a raiyat of the aforesaid two minors, that be had his stock of wood and bamboos thereon for a certain length of time, that a sum of Rs. 136-2-8 was paid by the executant as rent (kiraya) in advance for four years, viz. 12th November 1894 be 12th November 1898, that the executant would be entitled to retain possession during the period for which rent had been paid and that on vacating the land he would remove the materials of the constructions already made by him and of those he might make thereafter. No corresponding document executed on behalf of Dwarka Prasad and Jwala Prasad came into existence, and the raiyatnama executed by Safdar Ali, which it should be mentioned was nob registered, was the only evidence of relationship as existed between the grantors and the grantee.
3. On 21st February 1900, Dwarka Prasad issued a notice to Safdar Ali warning him that he would not be entitled to costs of construction which he was then making and that he would have be remove materials on ejectment. The notice concluded with a demand for a sarkhot to be executed by Safdar Ali within a week. It appears that the two brothers Dwarka Prasad and Jwala Prasad had arrived at some understanding between themselves by which each was enabled to realize his half share of rent from Safdar Ali. Accordingly we have a receipt dated 6th August 1901 for a sum of Ra. 229 executed by Dwarka Prasad in favour of Safdar Ali. There is another receipt dated 26th July 1902 executed by Jwala Prasad in favour of Safdar Ali for Rs. 220. Both the receipts cover a period of about 8 years for which rent was realized by the two brothers in advance.
4. On 1st September 1910 Dwarka Prasad again executed a receipt for Rs. 302-8-0 received by him as rent in advance for 11 years, namely, 1st September 1910, to 1st September 1921. On 18th October 1916, Safdar Ali executed a duly registered kabuliyat in favour of Dwarka Prasad for 11 years. Two days laber, i.e, on 20th October 1916, Dwarka Prasad acknowledged receipt of rent in advance for 11 years. As regards the other half of the land we have a receipt dated 5th September 1918 executed by Mt. Ketki Kuer acting as guardian of Mt. Bishen Kuer for a sum of Rs. 137-8-0, which represented a rent for five years in advance from 2nd March 1919 to 2nd March 1924. After the expiry of this period an unregistered lease, date 8th August 1925, was executed by Mb. Ketki Kuer as guardian of Mt. Bishen Kuer, the representive-in-interest of Jwala Prasad, in favour of Safdar Ali for 11 years, from August 1925 be August 1936, with an endorsement on the back acknowledging receipt of Rs. 198 as rent for the 11 years reserved by that lease.
5. These are the documents which were executed by one or the other of the parties to the transactions evidenced thereby. The half share of Dwarka Prasad devolved on his son Ambika Prasad, plaintiff. Subsequently the other half originally belonging to Jwala Prasad was assigned to the plaintiff Ambika Prasad in course of a partition in the family. It is nob now in dispute between the parties that, so far as the ownership of the land in dispute is concerned, it is with the plaintiff.
6. It will appear from the documents already referred to that if the arrangement embodied therein and arrived ab between Dwarka Prasad and Jwala Prasad or his representative on the one side and Safdar Ali on the other be legally enforcible, the plaintiff's suit is, to say the least of it, premature. The plaintiff disregards all the, agreements, evidenced by or implied in these documents, in so far as they entitle Safdar to retain possession for the full term reserved thereby, on the ground that the stipulation barring ejectment during certain periods, not being embodied in a duly registered lease, as distinct from kabuliyat, is inadmissible in evidence. On that allegation the plaintiff claims to be entitled to treat Safdar Ali as a tenant-at-will from month to month liable to be ejected on 15 days notice. Accordingly he served a notice, dated 12th May 1926, on the defendant calling upon him to vacate the premises by the 1st of the month following.
7. On the defendant failing to vacate the land in dispute the plaintiff instituted suit No. 311 of 1926 for ejectment of Safdar Ali, treating the latter as tenant-at-will. The defendant resisted the suit, claiming protection from ejectment and basing his right on the document already referred to by us. The Court of first instance dismissed the suit holding that the notice, dated 12th May 1926, was invalid and that the plaintiff was therefore not entitled to eject the defendant. On appeal by the plaintiff the learned District Judge decreed the suit so far as Dwarka Prasad's share of the land was concerned, and dismissed it as regards Jwala Prasad's half share. The distinction made by the learned District Judge between the two halves of the land in dispute rests on the ground that it is held under two engagements: (1) from Jwala Prasad under receipt dated 1st September 1910, and (2) from Mt. Ketki under the lease dated 8th August 1925, and that the notice dated 12th May 1926, expiring at the end of the month and requiring the defendant to vacate, is a good notice as regards the first but not as regards the second as the 15 days within which the defendant was called upon to vacate did not expire with the end of the tenancy in the latter case. Second Appeal No. 1263 of 1927 is the defendant's appeal from the decree of the learned District Judge. The plaintiff acquiesced in the decree and issued a fresh notice on 23rd May 1927 requiring the defendant to vacate on 7th June 1927, which is the end of the month of the tenancy, assuming a monthly tenancy was created by the lease dated 8th August 1925. This suit was dismissed by both the lower Courts. The learned Subordinate Judge who heard the appeal from the decree of the trial Court held that the plaintiff was precluded from disregarding the term of 11 years by the rule of equitable estoppel, that the defendant's possession was that of a licensee who was entitled to retain possession for the full term of 11 years for which he paid rent and that, assuming that he is a lessee, he could not be considered to be a monthly tenant liable to ejectment by 15 days' notice but that he should be considered to be a year to year tenant and six months' notice, as required by Section 106 of the Transfer of Property Act was necessary. The plaintiff has preferred Second Appeal No. 6 of 1929 from the decree of the learned Subordinate Judge. It has been argued by the learned advocate for the plaintiff that a year to year tenancy or that for a term exceeding one year or reserving a yearly rent can be created only by a registered lease and that a “kabuliyat” executed by the tenant alone cannot be regarded as equivalent to such a lease. Reference is made to Section 107 of the Transfer of Property Act. Whatever differences of opinion might have existed before as regards the second proposition, the question is now concluded, so far, at any rate, as this Bench is concerned by Kedar Nath v. Shankar Lal (1), in which it was held by a Division Bench of this Court that:
“a registered “kabuliyat” executed by the person occupying the premises and accepted by the person owning the premises is not sufficient to bestow a title upon the person occupying the premises and can in no way be considered a lease, as defined in S. 105, Act 4 of 1882.”
8. We must, therefore, accept the position insisted on by the plaintiff, viz., that the defendant cannot rely on any document which can amount to a lease and which may be admissible in evidence to establish his claim to retain possession of the land for a period exceeding one year from the date of the “kabuliyat” dated 18th October 1916 as regards one-half and the lease dated 8th August 1925 as regards the other half.
9. If the case had to be decided solely on the question of the existence of a tenancy for a term which did not expire before the institution of the suit, the plaintiff's claim to eject could not be resisted by the defendant relying on the transaction ending in the execution of the documents to which we have referred. There is, however, an important agreement by the plaintiff's predecessor-in-interest implied in their acceptance of rent advanced for 11 years which did not expire before the institution of the suit. Such an agreement amounts to a personal obligation to refrain from ejecting the defendant during the term for which rent was accepted. Such implied agreement cannot be considered to be part of any transaction of lease. It should be borne in mind that the possession of the defendant dates back to a time before the execution of the “raiyatnama” dated 12th November 1894, executed by Safdar Ali in favour of Dwarka Prasad and Jwala Prasad, then represented by their guardian, Mt. Lalmati. The unregistered lease, dated 8th August 1925, and the “kabuliyat,” dated 18th October 1916, being wholly inadmissible in evidence the position of the parties is not referable to any document creating a relationship of lessor and lessee.
10. The “raiyatnama” above referred to does not, in our opinion, create any tenancy. It amounts to no more than a permission to Safdar Ali to continue to occupy the premises. We do not know the terms on which Safdar Ali had been first let into possession. The implied agreement which must be inferred from the receipt of payment in consideration of which the plaintiff's predecessor-in-interest agreed not to eject the person making such payments for a certain length of time is of a personal character binding on the conscience of the recipient and his representatives other than bona fide transferees for consideration. Such a covenant is not part and parcel of any lease and is not affected by the law of registration or Sections 105 to 107 of the Transfer of Property Act. The principle underlying the decision of the Judicial Committee in Subramanian Chettiar v. Arunachalam Chettiar (2), appears to us to be quite applicable to the present case. It was held by their Lordships of the Privy Council that:
“an agreement to pay Rs. 500 a month to a lessee in consideration of receiving from him a permanent lease of portion of his zamindari, which agreement was come to before but reduced to writing after, the execution of the lease was not affected by Section 92 of the Evidence Act, nor required registration either under Section 17 the Registration Act or Section 107 of the Transfer of Property Act. It was not inconsistent with the lease, its provisions formed no part of the holding under the lease, the payment bargained for was no charge on the property and it was not rent or recoverable as rent but a mere personal obligation collateral to the lease.”
11. There can be no question of any inconsistency between the implied covenant to which we are disposed to give effect as we have found the “kabuliyat” and the lease executed by the plaintiff's predecessor to be inadmissible in evidence. The “raiyatnama” of 1894, as already mentioned, is not a lease or an instrument creating a tenancy. The covenant is not a charge on the land in dispute. Whether the covenant relates to a periodical payment to be made by a lessee to the lessor in addition to the rent or it relates to the time during which the lessor is to refrain from ejecting the lessee, as in the case before us, the principle underlying it is the same. In either case it is a collateral obligation and not a stipulation forming an integral part of a lease which is sought to be enforced. We see no moral or legal objection to a promise of this kind being enforced against the maker thereof or against those claiming under him, not being persons against whom the personal obligation of the promiser cannot be enforced. In the view of the case that we have taken, we allow Second Appeal No. 1263 of 1927, and dismiss Second Appeal No. 6 of 1929, dismissing the plaintiff's suits which gave rise to these two appeals, with costs throughout, including counsel's fees in this Court on the higher scale.
S.N/R.K
12. Order accordingly.
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