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  • Transfer of Property Act, where clause (g) of section 111
  • Indian Legislature. Section 14(1) of the English Act,
  • section 111 (g) of the Transfer of Property Act
  • TRANSFER OF PROPERTY ACT
  • Property Act, 1881 (44 & 45 Vict. C. 41),
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Citation Codes
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citation codes
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Attorney(S)
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  • Transfer of Property Act, where clause (g) of section 111
  • Indian Legislature. Section 14(1) of the English Act,
  • section 111 (g) of the Transfer of Property Act
  • TRANSFER OF PROPERTY ACT
  • Property Act, 1881 (44 & 45 Vict. C. 41),
Smart Summary

Judgment Summary — Batchelor, J. (with concurrence of Scott, C.J.)

Factual and Procedural Background

The plaintiff, suing as landlord, brought an action for ejectment against his tenant (the defendant) on the ground that the lease had been determined by the defendant's disclaimer of the plaintiff's title. The defendant challenged the maintainability of the suit on the basis that, before instituting the suit, the plaintiff had not done any act showing his intention to determine the lease. It was admitted that no act showing such intention had been done prior to the institution of the suit. The plaintiff (as reflected in the plaint) relied on the contention that the mere institution of the suit and the assertion in the plaint as to repudiation of the landlord's title constituted a sufficient manifestation of intention to determine the lease. The sole question on appeal was whether the institution of the suit (and the assertions in the plaint) can constitute the "act showing his intention to determine the lease" required by clause (g) of section 111 of the Transfer of Property Act.

Legal Issues Presented

  1. Whether the institution of an action for possession (the presentation of the plaint) can constitute "some act showing [the lessor's] intention to determine the lease" within the meaning of clause (g) of section 111 of the Transfer of Property Act.
  2. Whether the lessor's election to forfeit must be shown by some act prior to the institution of the suit, or whether the act is sufficiently effected at the moment the suit is instituted.

Arguments of the Parties

Plaintiff's Arguments

  • The plaint and the institution of the suit themselves manifest the lessor's intention to determine the lease and therefore constitute "some act showing his intention" under section 111(g) of the Transfer of Property Act.

Defendant's Arguments

  • The plaintiff had not performed any act prior to filing the suit showing an intention to determine the lease; accordingly, the plaintiff had no cause of action.
  • Relying on precedent (Anandamoyee v. Lakhi Chandra Mitra and decisions following it), the defendant maintained that the lessor's intention must be shown by some act antecedent to the institution of the suit.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Anandamoyee v. Lakhi Chandra Mitra Authority relied on for the proposition that the landlord's intention to forfeit "must be shown at some time or other antecedent to the institution of the suit." The Court examined the case and observed that the pronouncement that intention must be shown antecedent to the suit was not necessary to the decision in Anandamoyee; therefore it is not a binding restriction in the present matter.
Venkatramana Bhatta v. Gundaraya Followed Anandamoyee; decided under the Transfer of Property Act. The Court noted it followed Anandamoyee without further examination and that it did not carry the argument any further; thus it does not constrain the present decision.
Padmanabhaya v. Rang Holds that, apart from the Transfer of Property Act, the institution of an action on the ground of forfeiture may itself amount to manifesting an intention to determine the tenancy. The Court distinguished this case on statutory grounds (it was not governed by the Transfer of Property Act) but acknowledged its reasoning as relevant to the principle of election by institution of suit.
Toleman v. Portbury Establishes that a writ of ejectment is a final and conclusive election to put an end to the tenancy. Used as English authority to show that bringing an action in ejectment is an unequivocal assertion of right to possession and can constitute the necessary act of election.
Evans v. Davis Explains that an action in ejectment is equivalent to the old entry; supports the proposition that bringing an action manifests intention. Relied upon to support the view that instituting suit may perform the statutory requirement of "some act showing his intention."
Jones v. Carter; Serjeant v. Nash, Field & Co. Other English decisions stating similar principles about bringing an ejectment action manifesting election. Cited to show consistent English authority that the institution of ejectment proceedings manifests an intention to determine the lease.
Clough v. London and North Western Railway Co. Discusses general principle of election (e.g., possibility to elect to rescind a contract induced by fraud) and analogizes to landlord's election to avoid a lease by bringing ejectment. Applied to demonstrate that principles of election in other contexts support the proposition that bringing ejectment shows intention to determine a lease.
Croft v. Lumley (citation from Bramwell B.) Statement that a party may elect to avoid a lease by deed or word and by doing an act inconsistent with continuance (e.g., bringing ejectment). Used to reinforce that bringing ejectment is an act inconsistent with continuation of the lease and therefore constitutes an election to avoid it.
Cory Brothers & Co. v. Owners of Turkish Steamship Mecca Holds that a creditor's election as to appropriation of payments can be made "up to the very last moment" and may be declared by bringing an action. Invoked to illustrate the general rule that a party entitled to elect between courses may make that election by instituting suit.
Bijoy Gopal Mukerji v. Krishna Mahishi Debi (Privy Council, 1906) Holds that reversionary heirs show election to treat an alienation as nullity by commencing an action to recover possession. Relied on as an Indian precedent showing that commencing an action may constitute a clear declaration of election.
Transfer of Property Act, section 111(g) Statutory requirement that the lessor "does some act showing his intention to determine the lease." Identified as the governing statutory provision under which the present question falls to be decided.
Transfer of Property Act, section 114 Empowers Courts to relieve against forfeiture for nonpayment of rent in certain circumstances. Noted by the Court as a power in the Act but stated to be not relevant to the present matter.
English Conveyancing and Law of Property Act, 1881 (44 & 45 Vict. c. 41), s.14(1) Requires service of notice specifying breach and a reasonable opportunity to remedy before forfeiture for covenant breach (other than non-payment of rent) can be enforced. Contrasted with the Indian statute: the Court observed that the Indian Act contains none of these English restrictions, and inferred that no such restrictions were intended by the Indian Legislature.

Court's Reasoning and Analysis

The Court framed the question as one governed by clause (g) of section 111 of the Transfer of Property Act, which requires that the lessor "does some act showing his intention to determine the lease." The analytical steps in the opinion are:

  1. Examination of earlier Indian decisions: The Court considered Anandamoyee v. Lakhi Chandra Mitra and Venkatramana Bhatta v. Gundaraya. It concluded that Anandamoyee's statement that the intention must be shown antecedently was not necessary to the decision on the point actually decided (which concerned notice to certain defendants), and therefore that pronouncement was not binding. Venkatramana Bhatta merely followed Anandamoyee without further examination. Padmanabhaya v. Rang (not governed by the Transfer of Property Act) held that institution of an action could amount to manifesting the intention, but that case was in a different statutory context.
  2. Statutory interpretation of section 111(g): The Court emphasized the text of section 111(g) — the lessor must "do some act showing his intention to determine the lease" — and observed there is no express requirement in the Indian Act that such an act be antecedent to the institution of proceedings.
  3. Resort to comparative and analogous authorities: The Court referred to English authorities (Toleman v. Portbury; Evans v. Davis; Jones v. Carter; Serjeant v. Nash, Field & Co.) establishing that bringing an action in ejectment is equivalent to the old entry and constitutes a final and conclusive election to put an end to the tenancy. It further examined authorities on the general principle of "election" (Clough v. LNWR; Croft v. Lumley; Cory Brothers; Bijoy Gopal Mukerji) to show that where a party has an election, the institution of a suit may itself constitute the declaration of election.
  4. Application of principle to the statute: Reasoning by analogy and consistency, the Court concluded that if all that the statute requires is "some act showing his intention," then the act of instituting the suit (the presentation of the plaint and the assertion in it) is itself an unequivocal and decisive expression of intention to determine the lease.
  5. Consideration of legislative context: The Court noted that the English 1881 Act contains elaborate restrictions requiring notice and opportunity to remedy; by contrast, the Indian Transfer of Property Act contains no corresponding restrictions. The Court inferred that the Indian Legislature did not intend to incorporate such restrictions.
  6. Conclusion from combined analysis: From the statutory text, the cited authorities on election, and the comparison with English statutory provisions, the Court concluded that the lessor's cause of action becomes complete when the plaint is presented: the institution of the suit suffices as "some act showing his intention" under section 111(g).

Holding and Implications

Holding: The appeal was dismissed and the lower Court's order remitting the suit for decision on its merits was affirmed. The Court held that institution of the suit (the presentation of the plaint asserting repudiation of title) constitutes "some act showing [the lessor's] intention to determine the lease" under clause (g) of section 111 of the Transfer of Property Act; consequently the lessor's cause of action is complete when the plaint is presented.

Implications for the parties and legal effect:

  • Direct effect on the parties: The decision rules in favour of the plaintiff (the lessor). The suit was properly remitted for decision on its merits, and the appeal was dismissed with costs.
  • Statutory interpretation: The Court's interpretation affirms that, under the Transfer of Property Act, the lessor need not have performed an act antecedent to filing suit so long as the act required by section 111(g) is performed by instituting proceedings; the plaint itself can satisfy that statutory requirement.
  • Relation to prior decisions: The Court treated Anandamoyee and the decisions following it as not decisively binding because the earlier pronouncements were unnecessary to the outcomes of those cases; the Court therefore adopted the view that institution of suit constitutes the requisite act under the Indian statute.

Additional procedural notes from the opinion:

  • Scott, C.J., expressly concurred: "I am of the same opinion."
  • Final court notation: "Order affirmed." (Case initials noted as J.G.R in the report.)

    Isabali Tayabali v. Mahadu Ekoba

    Batchelor, J.:— The plaintiff sued as a landlord to eject his tenant, the defendant, on the ground that the lease was determined by the defendant's disclaimer of the plaintiff's title. For the defendant it is contended that the plaintiff has no cause of action inasmuch as he had never, before filing the suit, done any act showing his intention to determine the lease. It is admitted that no such act was done by the plaintiff before the institution of the suit, but it is urged that the mere institution of the suit and the assertion in the plaint as to the repudiation of the landlord's title constitute a sufficient manifestation of the plaintiff's intention to determine the lease. The sole question in appeal is whether this argument should be allowed. The point falls to be decided under the Transfer of Property Act, where clause (g) of section 111 is the governing provision.

    For the defendant reliance is placed on Anandamoyee v. Lakhi Chandra Mitra which was followed, without further examination of the subject, by the Madras High Court in Venkatramana Bhatta v. Gundaraya, a case decided under the Transfer of Property Act. This latter case was considered in Padmanabhaya v. Rang, which was not governed by the Transfer of Property Act, and the learned Judges, without questioning the correctness of the earlier decision, held that, apart from the provisions of the Transfer of Property Act, the institution of an action on the ground of forfeiture itself amounted to the manifesting of an intention to determine the tenancy. We have now to decide whether the case is otherwise where the suit is subject to the Transfer of Property Act.

    Before discussing that question on its legal merits it will be convenient to notice what exactly was decided in Anandmoyee's case, which has been accepted as authority for the rule that the landlord's determination to forfeit the lease must have been shown by some act prior to the institution of the suit. There the plaintiff Anandamoyee sued in ejectment, and the Court of first appeal dismissed the suit, says the report, “chiefly on the ground that it was not maintainable in the absence of service of notice on the barber-defendants, but without any finding as to whether the plaintiff did any act before the institution of the suit for ejectment, declaring her intention to determine the tenancy of the defendants.” Strictly, therefore, the only question before the Court was whether notice to certain defendants was necessary to the validity of the suit. It is true that the Court did definitely lay it down that the landlord's intention to forfeit “must be shown at some time or other antecedent to the institution of the suit,” but that pronouncement was not necessary to the decision of the point then before the Court. As I have said, Venkatramana Bhatta's case carries the argument no further. We are, therefore, free to determine the question without the restriction of any decisive authority.

    Now the only requirement of section 111 (g) of the Transfer of Property Act is that the lessor “does some act showing his intention to determine the lease.” Neither in the Calcutta case nor in either of the Madras cases is any special reason given why the lessor's election must be made at some time prior to the institution of the suit, and if the election has been made at the moment when the suit is instituted, that is, at the moment when the plaint is presented, it seems to me difficult to find any ground for saying that the cause of action has not completely accrued. It is clear that in England, since the Judicature Acts, the landlord's intention to enforce the forfeiture is sufficiently manifested by his bringing an action in ejectment. In Toleman v. Portbury it was held that by a writ of ejectment there was a final and conclusive election to put an end to the tenancy; and that, as explained by Mr. Justice Fry in Evans v. Davis, was because “an action in ejectment is an unequivocal assertion of a right to present possession. It is equivalent to the old entry.” And the same law is laid down in Jones v. Carter and in Serjeant v. Nash, Field & Co. But if the bringing of the action is equivalent to the old entry in the English Courts, I can see no valid reason why it should not be equivalent to, and constitute, the “act showing the lessor's intention” which is required by the Indian Statute. And, that act being done and completed when the plaint is presented, it seems to me to follow that at that point of time the lessor's cause of action is complete.

    This view is, I think, confirmed by reference to other cases of election, where the same principle is involved in different sets of facts. Clough v. London and North Western Bailway Co.(4) was a case where a contract having been induced by fraud, the party defrauded had, in the words of Mellor J., “a right, on discovering the fraud, to elect whether he would continue to treat the contract as binding, or would disaffirm the contract and resume his property.” And the learned Judge continues “The principle is precisely the same as that on which it is held that the landlord may elect to avoid a lease and bring ejectment, when his tenant has committed a forfeiture………………. If, by bringing ejectment, he unequivocally shews his intention to treat the lease as void, he has determined his election.” This is supported by a citation from Bramwell B's judgment in Croft v. Lumley(5) from which the following passage may be noticed for our present purposes: “When a lessee commits a breach of covenant, on which the lessor has a right of re-entry, he may elect to avoid or not avoid the lease, and he may do so by deed or by word……………… if he says he will avoid, and does an act inconsistent with its continuance, as bringing ejectment, he elects to avoid it.” These judgments appear to me to establish not only that the landlord's election may be determined by the mere bringing of his action, but also that the principles applicable to other cases of election are applicable also to the landlord's election to enforce or to waive the forfeiture. Two other cases in which the same principle is at work in different circumstances may, therefore, appropriately be noticed. In Cory Brothers & Co. v. Owners of Turkish Steamship Mecca, the question was as to the appropriation of payments made by the debtor to the creditor. The debtor had made no appropriation to any particular items, and the right of application consequently devolved on the creditor. Discussing the question of the time within which the creditor's option must be exercised, Lord Macnaghten says:—” In 1816, when Clayton's Case was decided, there seems to have been authority for saying that the creditor was bound to make his election at once according to the rule of the civil law, or at any rate, within a reasonable time, whatever that expression in such a connection may be taken to mean. But it has long been held and it is now quite settled that the creditor has the right of election ‘up to the very last moment,’ and he is not bound to declare his election in express terms. He may declare it by bringing an action or in any other way that makes his meaning and intention plain.” The second case to which I would refer as illustrating the principle that a party, having an election to prefer one course to another, may declare his election by the institution of a suit, is an Indian case, decided by the Privy Council in 1906, Bijoy Gopal Mukerji v. Krishna Mahishi Debi. There the suit was brought by the reversionary heirs of one Chandra Bhusan Mukerji for a declaration that an ijara granted by his widow was inoperative as against them since the widow's death. Lord Davey, in delivering the judgment of the Board upon the question of the validity of a Hindu widow's alienation, says:— “Her alienation is not, therefore, absolutely void, but it is prima facie voidable at the election of the reversionary heir. He may think fit to affirm it, or he may at his pleasure treat it as a nullity without the intervention of any Court, and he shows his election to do the latter by commencing an action to recover possession of the property.” These decisions serve, I think, to show that in our present case the view required by consistency and principle is that, since all that the lessor has to do is “some act showing his intention to determine the lease,” that act is done when the suit to recover possession of the land is instituted. It is indeed not easy to imagine an act more decisively expressive of an intention to determine the lease.

    Further confirmation of this opinion seems to be furnished by the consideration that the only requirements demanded by the Act for the determination of a lease are, first, that the tenant claim title in himself, and, secondly, that the lessor do some act showing his intention to determine the lease. It is well known that, at the time when the Transfer of Property Act was enacted, the English Conveyancing and Law of Property Act, 1881 (44 & 45 Vict. C. 41), was prominently in the consideration of the Indian Legislature. Section 14(1) of the English Act, dealing with forfeiture for breaches of covenant other than non-payment of rent, contains elaborate provisions declaring that such forfeiture shall not be enforceable, by action or otherwise, unless and until the lessor serves on the lessee a notice specifying the breach and requiring the lessee to remedy it or make compensation, and the lessee fails within a reasonable time either to remedy the breach or to compensate for it. But the Indian Act contains nothing of these restrictions on the enforcement of the forfeiture, and it must be inferred that no such restrictions were intended by the Legislature. It is hardly necessary to add that the Act does empower the Court—see section 114—to relieve against forfeiture for nonpayment of rent in certain circumstances, but with these circumstances we are not now concerned.

    For these reasons I am of opinion that the question raised in this appeal must be answered in favour of the plaintiff, the lessor. The lower Court's order remitting the suit for decision on its merits must, therefore, be affirmed, this appeal being dismissed with costs.

    Scott, C.J:— I am of the same opinion.

    Order affirmed.
    J.G.R
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    Comments

    Isabali Tayabali v. Mahadu Ekoba
    (Nov 19, 1917)