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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • provisions of section 113 of the Transfer of Pro perty Act
  • provisions of the West Bengal Premises Rent Control Act
  • (4) Section 6 of the Assam Urban Areas Re Control Act
  • SECTION 113 TRANSFER OF PROPERTY ACT
  • section 113 of the Transfer o Pro perty Act,
  • TRANSFER OF PROPERTY ACT
  • West Bengal Premises Rent Control Act (1950)
  • Assam Urban Areas Rent Control Act
  • Sec. 106, Transfer of Property Act.
  • Section 12(1) 01 the Act
  • Rent Control Acts
  • Rent Control Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • provisions of section 113 of the Transfer of Pro perty Act
  • provisions of the West Bengal Premises Rent Control Act
  • (4) Section 6 of the Assam Urban Areas Re Control Act
  • SECTION 113 TRANSFER OF PROPERTY ACT
  • section 113 of the Transfer o Pro perty Act,
  • TRANSFER OF PROPERTY ACT
  • West Bengal Premises Rent Control Act (1950)
  • Assam Urban Areas Rent Control Act
  • Sec. 106, Transfer of Property Act.
  • Section 12(1) 01 the Act
  • Rent Control Acts
  • Rent Control Act
Smart Summary

Structured Summary of the Provided Opinion

Factual and Procedural Background

Plaintiffs Nos. 1–6 are sons and plaintiff No. 7 is the widow of the late Syed Abdul Kadir. Defendants Nos. 1 and 2 were the principal defendants occupying the suit house (holding No. 81 of the Jorhat Municipality); they and defendant No.1 carried on a cloth business there. The rent had previously been settled at Rs. 100 per month by compromise in Misc. Case No. 55 of 1952 in the Court of the Subordinate Judge. Plaintiffs brought a suit for ejectment alleging that they bona fide required the house to start their own business. Plaintiff No. 1, as head of the family, served a notice dated 21-7-58 asking the defendants to vacate; the defendants refused.

At trial, the suit was dismissed on the grounds that the house was not bona fide required by the plaintiffs and that the notice had been waived. On first appeal the lower appellate court reversed, holding that the house was bona fide required by the plaintiffs and that the notice had not been waived. The present opinion arises from the defendants' appeal against that first appellate court decision.

Legal Issues Presented

  1. Whether the plaintiffs bona fide required the house (such that they were entitled to recover possession under the Assam Urban Areas Rent Control Act, Section 6).
  2. Whether the notice to quit served by the plaintiffs was waived by the plaintiffs' subsequent conduct (in particular, by acceptance of rent after the notice had expired), invoking Section 113 of the Transfer of Property Act.

Arguments of the Parties

Plaintiffs' (Respondents') Position

  • Plaintiffs asserted they bona fide required the house to start their own business, and they had served notice (dated 21-7-58) asking the defendants to vacate.

Defendants' (Appellants') Position

  • Defendants denied that the plaintiffs bona fide required the house for their own use.
  • Defendants further contended that the plaintiffs had waived the notice to quit, pointing to the plaintiffs' acceptance of rent after the notice period and other conduct.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Pulin Behary Shaw v. Miss Lila Dey, AIR 1957 Cal 627 Holds that under the West Bengal Premises Rent Control Act mere payment and acceptance of rent after determination of contractual tenancy may not by itself constitute waiver of a notice to quit because a statutory tenancy arises under the Rent Control Act and payments may be attributable to that statutory tenancy. The lower appellate court relied on this decision; the present court considered it but distinguished it on the basis that the Assam Urban Areas Rent Control Act does not, in the court's view, create a statutory tenancy that would displace Section 113 of the Transfer of Property Act. The court therefore did not treat the Calcutta decision as controlling and instead applied Section 113 to find waiver on the facts (acceptance of rent for three months and a loan of Rs. 25).
Panchanan v. Haridas, AIR 1954 Cal 460 Earlier Calcutta decision cited in the Pulin Behary Shaw reasoning concerning effects of Rent Control Acts on waiver by acceptance of rent. Referred to as one of the Calcutta decisions underlying the reasoning in Pulin Behary Shaw; the present court noted these cases but found them distinguishable on the statutory scheme and facts of the present case.
Mahadeo Prasad v. Sulekha Sarkar, AIR 1954 Cal 404 Another Calcutta decision referenced in connection with the Pulin Behary Shaw line of authority on waiver and statutory tenancy under Rent Control Acts. Also cited as part of the Calcutta line of authority; the present court treated these authorities as distinguishable because the Assam statute did not, in the court's view, produce the same consequence (i.e., creation of a statutory tenancy that would prevent Section 113 from applying straightforwardly).

Court's Reasoning and Analysis

The court's analysis proceeded in two interconnected strands: (A) the question of bona fide requirement under the Assam Urban Areas Rent Control Act (Section 6), and (B) whether the notice to quit had been waived by the plaintiffs' subsequent conduct under Section 113 of the Transfer of Property Act.

(A) Bona fide requirement

  • The court observed that Section 6 of the Assam Urban Areas Rent Control Act lays down conditions under which a landlord can recover a house, including where the landlord bona fide requires it for his own occupation. The expression "bona fide requirement" is not identical with "bona fide need" and is a question of fact.
  • The court noted that findings of fact by the lower appellate court on bona fide requirement are not to be interfered with in a second appeal. The correct focus is whether the plaintiffs genuinely required the house for their own use; inconvenience to the defendants does not negate a bona fide requirement.
  • Although the appellate court had held the house was bona fide required by the plaintiffs, the present court did not ultimately rest the decision on that point because it found in favour of the defendants on the separate issue of waiver.

(B) Waiver of notice — application of Section 113, Transfer of Property Act

  • The court set out Section 113 of the Transfer of Property Act, which states that a notice given under Section 111 clause (h) is waived by any act of the person giving it showing an intention to treat the lease as subsisting; waiver may be express or implied.
  • The illustrations to Section 113 (quoted in the opinion) show that acceptance of rent after the expiry of a notice can amount to waiver of the notice where the lessor's conduct demonstrates an intention to treat the lease as subsisting.
  • The court emphasised that while acceptance of rent after expiry of notice "by itself may not constitute waiver," such acceptance is an act indicating the lessor's intention and contributes to an inference of waiver.
  • Applying these principles to the present facts, the court noted that plaintiffs had: (a) served an earlier notice (31-1-57) but did not sue then; (b) served a second notice dated 21-7-58 calling for vacation by 31-8-58; (c) thereafter accepted rent for September, October and November 1958 and also took Rs. 25 from the defendants in December 1958; and (d) finally filed suit on 6-12-58. The court treated the acceptance of rent for three successive months and the Rs. 25 transaction as sufficient acts to give rise to an inference that the plaintiffs intended to waive the notice.
  • The court confronted the line of Calcutta authorities (notably Pulin Behary Shaw) which had held that, under the West Bengal Premises Rent Control Act, acceptance of rent after determination of contractual tenancy may be attributable to a statutory tenancy created by the Rent Control Act and therefore not unequivocal evidence of waiver of notice. The court distinguished those authorities on the ground that the Assam Urban Areas Rent Control Act does not, in the court's view, show that a statutory tenancy comes into existence that would displace the operation of Section 113. Accordingly, Section 113 was treated as applicable and persuasive here.
  • On the facts and applying Section 113, the court concluded that the plaintiffs' conduct amounted to a waiver of the notice to quit.

Holding and Implications

HOLDING: APPEAL ALLOWED. The court held that the plaintiffs had waived their notice to quit by their conduct (acceptance of rent for three successive months after the notice and the transaction of Rs. 25), and accordingly the decree of the lower appellate court was set aside and the decree of the trial court restored.

Implications:

  • Direct effect on the parties: The defendants' appeal succeeded on the issue of waiver; the trial court's dismissal of the plaintiffs' suit (for ejectment) is restored. The parties were ordered to bear their own costs in this Court because the appellants did not succeed on another point (not further elaborated in the opinion).
  • Broader precedent: The court distinguished the Calcutta line of cases (including Pulin Behary Shaw) on the statutory basis and facts and applied Section 113 of the Transfer of Property Act to find waiver. The opinion does not assert that it establishes a novel rule of general application beyond the application of Section 113 to the facts and the statutory differences noted between the Assam Act and the West Bengal Rent Control Act.

Disposition: Appeal allowed; lower appellate court's decree set aside; trial court's decree restored.

    Jagannath Karanani v. Sayed Abdul Wahed

    This is defendants' appeal. Plaintiff-respondents brought a suit for ejectment of the contesting defendants. Plaintiffs Nos. 1 to 6 are the sons and plaintiff No. 7 is the widow of one late Syed Abdul Kadir. Defendants Nos. 1 and 2 are the principal defendants and defendant Nos 3 10 6 are joined as pro forma defendants ; they have some interest in the land whereon the suit house stands. Defendant No. 1 occupied the house in suit being holding No. 81 of the Jorhat Municipality and both the defendants Nos. 1 and carried on cloth business therein. The rent of the house was settled at Rs. 100/- per month by a compromise in Misc. Case No. 55 of 1952 in the Com of the Subordinate Judge. The suit was brought for ejectment of the defendants on the ground the plaintiffs bona fide required the house to star their own business. Plaintiff No. 1 being the hear of the family looks after the property of the family and he served a notice dated 21-7-58 asking the defendants to vacate the house but they refused do so. The defendants denied that the plaintiff required the house for their own business and there contended that the plaintiffs waived the notice

    (2) The trial court dismissed the suit on the ground that the house was not required bona by the plaintiffs and further that the notice beer, waived.

    (3) On appeal the lower appellate court held that the house was bona fide required by the plaintiffs for their own use and that the notice not been waived.

    (4) Section 6 of the Assam Urban Areas Re Control Act lays down the conditions under which a landlord can recover his house. Under S. 6(1 a house can be recovered where it is bona fide required by the landlord for his own occupation i the occupation of any person for whose benefit t house is held. The expression 'bona fide requirement' is not the same thing as bona fide need The question whether the house is bona fide required by the plaintiffs is a question of fact an in second appeal the finding of the lower appellant court cannot be interfered with. It is not the convenience or otherwise of the defendants which I to be looked into. If the plaintiffs bona fide i quire the house for their own use, no amount inconvenience to the defendants will take away 1 plaintiffs' right to evict them. Cases where II landlord requires it for the purpose of letting out on a higher rent, stand on a different fooled and there it cannot be said that the landlord requires it for his own use but here it is found t the court of fact that the landlord requires it f; his own use and the fact that it will cause inconvenience and hardship to the defendant is no grout for refusing the decree for ejectment.

    (5) So far as the question of waiver of IS notice is concerned, the plaintiffs first served notice on the defendants to vacate the house t 31-1-57. No suit was however, filed on the failed of the defendant to vacate the house and a second notice dated 21st July, 1958 was served on tm defendants calling upon them to vacate the hoi by 31st August 1958. The plaintiffs accepted re for September, October and November. 1958 i the suit was filed on the 6th December, 1958. The plaintiffs also took Rs. 25/- from the defendant; December, 1958. Exts. C. D and E show the recall of the rent for the month of September, October and November 1958. Even after the termination the lease by notice the landlords have accepted rent. The question is whether from the circumsta nces it can be inferred that the landlords waived the notice of ejectment. section 113 of the Transfer of Property Act provides that:

    "A notice given under section 111, clause (h) is waived, with the express or implied consent of the person to whom it is given, by any act on the part of the person giving it showing an intention to treat the lease as subsisting."

    The notice can be waived by the mutual consent of the lessor and the lessee. The consent of the lessee can be given expressly or by implication it can be inferred and the intention on the part of the lessor to continue to treat the lease as sub sisting can be shown by any act of the lessor. The illustrations to the section 113 says:

    "(a) A, the lessor, gives B, the lessee, notice to quit the property leased. The notice expires. B tenders, and A accepts, rent which has become due in respect of the property since the expiration of the notice. The notice is waived.

    (b) A, the lessor, gives B, the lessee, notice to quit the property leased. The notice expires and B remains in possession. A gives to B as lessee a second notice to quit. The first notice is waived." The acceptance of rent after expiry of the notice by itself may not constitute waiver. But it is an act on the part of the lessor which will go to show the intention on his part to treat the lease as subsisting. In the present case the landlords not only accepted one month's rent after the expiry of the term of the lease but for three successive months they accepted rent. This act of the lessors also shows that the plaintiffs intended to waive the notice.

    (6) The court below has relied upon the case reported in Pulin Behary Shaw v. Miss Lila Dey, (S) AIR 1957 Cal 627. In this case the appellant was a monthly tenant under one Amulya Ranjan Dey brother of the plaintiff respondent. The plain tiff sued the appellant for ejectment on the allega tion that she had purchased the interest of her brother and served a notice of atonement and had determined the defendant's tenancy by a notice to quit. The plaintiff asserted in that case that the defendant was not entitled to the protection of the Rent Control Act because the plaintiff reasonably required the room for her occupation and also for building a. stair-case. It was also alleged by (he plaintiff that the defendant was a defaulter. All the courts disbelieved the plaintiff's case of bona fide requirement and the only question raised was whether the defendant was a defaulter. The suit was dismissed by the trial court on the finding that the defendant was not a defaulter and further that the notice had not been proved and the plaintiff had waived the notice to quit by accepting rent. On appeal the Special Bench of the court of Small Causes reversed this ^decision which was affirmed in appeal by a single Judge and Letters Patent appeal was filed against the order of the single Judge. This anneal by the tenant was allowed on the finding that be was not a defaulter. As to the question of waiver it was held that there was no waiver.

    Dealing with section 113 of the Transfer o Pro perty Act, the learned Judges observed as follows:

    "There is no doubt that the facts of the present case are exactly similar to the facts in illustration (a) and if we were to decide the case upon the Transfer of. Property Act alone we would be bound to hold that there was a waiver; but the question that requires consideration is whether the West Bengal Premises Rent Control Act (1950) has made any difference to the rights of the parties. I have no doubt in my mind that it has. Section 12(1) 01 the Act has imposed a bar to the eviction of the tenant unless the landlord is able to bring the case within one of the nine clauses mentioned in the proviso. So long as this bar subsists the tenant is entitled to a statutory protection against the evic tion notwithstanding the fact that his tenancy has been effectively determined by a notice to quit under Sec. 106, Transfer of Property Act. This statutory right of the tenant to remain on the demised premises even after the determination of his contractual tenancy has been described in some decided cases as a statutory tenancy. If therefore there has been payment and acceptance of rent after the determination of the contractual tenancy such payment and acceptance may be attributed either to the contractual tenancy or to the statutory tenancy brought into existence by Sec. 12(1). Accor dingly the payment and acceptance of rent after the determination of the contractual tenancy does not unequivocally lead to the conclusion that the con tractual tenancy has revived and cannot by itself prove waiver of notice to quit which is equivalent to the revival of the contractual tenancy. That r why it has been1 said that some evidence to prove an agreement to revive the contractual tenancy is necessary to constitute a waiver under the diffe rent Rent Control Acts and that is why it has been said that after the Rent Control Acts have come into operation mere payment and acceptance of rent are not sufficient by themselves to constitute waiver of notice to quit."

    Reference is made to earlier Calcutta decisions of 'Panchanan v. Haridas', AIR 1954 Cal 460 and 'Mahadeo Prasad v. Sulekha Sarkar', AIR 1954 Cal 404. This decision is based on the reasoning that under the provisions of the West Bengal Premises Rent Control Act after the expiry of the period of notice a statutory tenancy comes into existence and thus any subsequent payment is attributable to the statutory tenancy and may not necessarily lead to an inference that the lessor intended to waive his notice. In this case the rent was sent through money order. Nothing has been pointed out in the Assam Urban Areas Rent Control Act which will suggest that any statutory tenancy comes into existence after the giving of notice and that the provisions of section 113 of the Transfer of Pro perty Act have been modified by this enactment. The word 'tenant' has been defined to include the persons whose tenancy has been terminated by the notice and they continue in possession. Sec tion 6 of the Act gives protection to the tenants from eiectment. The certain circumcises if they fail to pay rent or of the land is required bona fide for the plaintiff. the tenants are not entitled to claim any protection under section 6. Even if the plaintiff brings a suit for ejectment on the grounds mentioned m section 6 still he has to give a notice to terminate the tenancy and the provisions of the Transfer of Property Act are attracted. If after the service of notice the plaintiff accepts rent, section 113 of the Transfer of Property Act will, in my opinion, be attracted. The Calcutta case is thus distinguishable on facts. In the present case the conduct of the plaintiff in accepting rent for three successive months and further taking a loan of Rs. 25/- from the defendants is sufficient to give rise to an inference that the plaintiffs intended to waive the notice. Their past conduct in giving notice earlier for ejectment and thereafter not bringing any suit and accepting rent and giving fresh notice also goes to show that when the plain tiffs accepted rent after giving notice they intended to continue the tenancy and waive the notice. In my opinion therefore the defendant has succeeded in proving that the plaintiffs have waived their notice and the appeal is allowed. The decree of the lower appellate court is set aside and that of the trial court is restored. But in the circumstances the parties will bear their own costs in this Court as the appellants have not succeeded on the other point.

    Appeal allowed..

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    Comments

    Jagannath Karanani v. Sayed Abdul Wahed
    (Jun 26, 1962)