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Smart Summary

Structured Summary of the Provided Opinion

Factual and Procedural Background

Plaintiffs Nos. 1 to 6 were sons and plaintiff No. 7 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 Jorhat Municipality) and carrying on cloth business; Defendants Nos. 3 to 6 were joined pro forma as they had some interest in the land. Rent had previously been fixed at Rs. 100 per month by compromise in Misc. Case No. 55 of 1952. The plaintiffs brought a suit for ejectment on the ground that they bona fide required the house to start their own business. Plaintiff No. 1 (head of the family) served a notice dated 21-7-1958 asking the defendants to vacate; defendants refused, denied bona fide requirement and contended that the plaintiffs had waived the notice.

Procedurally, the trial court dismissed the suit holding there was no bona fide requirement and that the notice had been waived. On appeal, the lower appellate court reversed the trial court, holding the house was bona fide required and the notice had not been waived. The defendants appealed (this is the defendants' appeal to the court giving the present opinion).

Legal Issues Presented

  1. Whether the plaintiffs bona fide required the house for their own occupation (within the meaning of Section 6 of the Assam Urban Areas Rent Control Act) such as to entitle them to eject the defendants.
  2. Whether the plaintiffs waived the notice to quit by acts such as accepting rent after the notice had expired (considered under Section 113 of the Transfer of Property Act).

Arguments of the Parties

Plaintiffs-Respondents' Arguments

  • The plaintiffs asserted a bona fide requirement of the house to start their own business (plaintiff No. 1 looked after family property and served notice dated 21-7-1958 asking defendants to vacate by 31-8-1958).
  • They relied on their claimed right under Section 6 of the Assam Urban Areas Rent Control Act to recover the house for their own occupation.

Defendants-Appellants' Arguments

  • The defendants denied that the plaintiffs bona fide required the house.
  • They contended that the plaintiffs had waived the notice to quit, pointing to the plaintiffs' acceptance of rent for September, October and November 1958 and receipt of Rs. 25 in December 1958 after the notices were served.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Pulin Behary Shaw v. Miss Lila Dey, (S) AIR 1957 Cal 627 Held that under the West Bengal Premises Rent Control Act payment and acceptance of rent after determination of contractual tenancy may be attributable to a statutory tenancy created by that Act and therefore may not, by themselves, prove waiver of notice; additional evidence of agreement to revive contractual tenancy is necessary. The court considered and relied on the reasoning of this Calcutta decision but distinguished it on facts/statutory grounds: the Assam Urban Areas Rent Control Act does not indicate that a statutory tenancy comes into existence after notice, so Section 113 of the Transfer of Property Act applies in the present case. The court therefore found that the facts here (acceptance of rent for three successive months and taking Rs. 25) supported an inference of waiver.
Panchanan v. Haridas, AIR 1954 Cal 460 Earlier Calcutta decision used to support the proposition that under the West Bengal Premises Rent Control Act a statutory tenancy arises after expiry of notice, affecting the inference from payment/acceptance of rent. Noted by the court as part of the line of Calcutta authorities; distinguished on the ground that the Assam Act does not contain provisions creating a statutory tenancy comparable to the West Bengal Act, so the Calcutta decisions were not controlling here.
Mahadeo Prasad v. Sm. Sulekha Sarkar, AIR 1954 Cal 404 Same line of reasoning as Panchanan: under the West Bengal Premises Rent Control Act, payment/acceptance of rent after notice may be attributable to a statutory tenancy and not necessarily demonstrate waiver of notice. Cited alongside other Calcutta cases and distinguished on the statutory difference between the West Bengal Act and the Assam Urban Areas Rent Control Act; the court held Section 113 of the Transfer of Property Act applied in the present case.

Court's Reasoning and Analysis

The court examined two principal issues: (1) whether the plaintiffs bona fide required the house under Section 6(1)(c) of the Assam Urban Areas Rent Control Act; and (2) whether the plaintiffs waived the notice to quit by acts indicating an intention to treat the lease as subsisting, within the meaning of Section 113 of the Transfer of Property Act.

On the bona fide requirement point, the court reiterated legal principles: Section 6(1)(c) permits recovery where a house is bona fide required by the landlord for occupation; the expression "bona fide requirement" is a question of fact (distinct from "bona fide needs"), and a finding of fact by the lower appellate court is not to be interfered with in second appeal. The court also observed that inconvenience to the defendants does not defeat a landlord's right if bona fide requirement is established; only the case of requirement for letting at higher rent differs.

On the waiver point, the court focused on the effect of accepting rent after notice. It set out Section 113 of the Transfer of Property Act: a notice given under Section 111(h) is waived by any act of the person giving it showing an intention to treat the lease as subsisting. The court reviewed the illustrations to Section 113 (acceptance of rent after expiry of notice constituting waiver, and issuance of a second notice waiving the first), and noted that acceptance of rent after expiry of notice is an act pointing to an intention to treat the lease as continuing, although acceptance alone may not always be conclusive.

The specific facts were: plaintiffs served an earlier notice (to vacate by 31-1-57) but filed no suit then; after a second notice dated 21-7-58 to vacate by 31-8-58, the plaintiffs accepted rent for September, October and November 1958 (Exts. C, D and E) and took Rs. 25 in December 1958. The court found that accepting rent for three successive months after the expiry of the notice, together with taking Rs. 25, was sufficient to infer that the plaintiffs intended to waive the notice.

The court addressed the Calcutta authorities (including Pulin Behary Shaw and earlier decisions) which had held that under the West Bengal Premises Rent Control Act payment and acceptance of rent after notice could be attributable to a statutory tenancy and therefore might not prove waiver of the notice. The court distinguished those decisions on the ground that the Assam Urban Areas Rent Control Act does not indicate creation of a statutory tenancy after giving notice; the Assam Act had not modified the provisions of the Transfer of Property Act in that respect. Consequently, Section 113 applied in the present statutory context and the plaintiffs' conduct (accepting rent repeatedly and taking a sum in December) permitted an inference of waiver.

Applying these principles to the facts, the court concluded that the defendants had proved waiver of the notice. Although the lower appellate court had earlier found bona fide requirement in favour of the plaintiffs, the court accepted the trial court's view on waiver and restored the trial court's decree.

The court also ordered that, in the circumstances, the parties will bear their own costs in this Court because the appellants had not succeeded on the other point (i.e., the bona fide requirement point on which they failed).

Holding and Implications

Holding: APPEAL ALLOWED. The decree of the lower appellate court was set aside and the decree of the trial court was restored.

Implications:

  • Direct effect on parties: The plaintiffs' suit for ejectment fails as the court found that plaintiffs waived their notice to quit by accepting rent and taking money after the notice period; consequently, the trial court's dismissal of the suit is reinstated.
  • Costs: The parties were directed to bear their own costs in this Court.
  • Statutory/precedential note that the court explicitly distinguished Calcutta decisions based on statutory differences (West Bengal Premises Rent Control Act vs. Assam Urban Areas Rent Control Act). The court held that under the Assam Act nothing suggests creation of a statutory tenancy after notice and therefore Section 113 of the Transfer of Property Act applies; acceptance of rent after notice can support an inference of waiver in this statutory context.
  • No assertion was made in the opinion that a new legal precedent was being laid down beyond the application and distinction of existing authorities; the court resolved the parties' rights by applying Section 113 to the facts and distinguishing contrary Calcutta authorities on the basis of statutory difference.

    Jagannath Karanani v. Sayed Abdul Waned

    1. 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 defendants Nos. 3 to 6 are joined as pro forma defendants as 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 2 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 Court of the Subordinate Judge. The suit was brought for ejectment of the defendants on the ground that the plaintiffs bona fide required the house to start their own business. Plaintiff No. 1 being the head 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 to do so. The defendants denied that the plaintiffs required the house for their own business and further contended that the plaintiffs waived the notice.

    2. The trial court dismissed the suit on the ground that the house was not required bona fide by the plaintiffs and further that the notice had been waived.

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

    4. Section 6 of the Assam Urban Areas Rent Control Act lays down the conditions under which a landlord can recover his house. Under S. 6(1)(c) a house can be recovered where it is bona fide required by the landlord for his own occupation or the occupation of any person for whose benefit the house is held. The expression ‘bona fide requirement’ is not the same thing as bona fide needs. The question whether the house is bona fide required by the plaintiffs is a question of fact and in second appeal the finding of the lower appellate court cannot be interfered with. It is not the convenience or otherwise of the defendants which has to be looked into.

    5. If the plaintiffs bona fide require the house for their own use, no amount of inconvenience to the defendants will take away the plaintiffs' right to evict them. Cases where the landlord requires it for the purpose of letting it out on a higher rent, stand on a different footing and there it cannot be said that the landlord requires it for his own use but here it is found by the court of fact that the landlord requires it for his own use and the fact that it will cause inconvenience and hardship to the defendant is no ground for refusing the decree for ejectment.

    6. So far as the question of waiver of the notice is concerned, the plaintiffs first served a notice on the defendants to vacate the house by 31-1-57. No suit was however, filed on the failure of the defendant to vacate the house and a second notice dated 21st July, 1958 was served on the defendants calling upon them to vacate the house by 31st August 1958. The plaintiffs accepted rents for September, October and November, 1958 and the suit was filed on the 6th December, 1958. The plaintiffs also took Rs. 25/- from the defendants in December, 1958. Exts. C, D and E show the receipt of the rent for the month of September, October and November 1958. Even after the termination of Page: 149the lease by notice the landlords have accepted rent. The question is whether from the circumstances 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.”

    7. 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 subsisting 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.”

    8. The acceptance of rent after expiry of the notice by itself may not constitute waiver. But it is an pet 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.

    9. 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 plaintiff sued the appellant for ejectment on the allegation that she had purchased the interest of her brother and served a notice of attornment 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 the 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 appeal by the tenant was allowed on the finding that he 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 of Properly 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 it 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) or 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 eviction notwithstanding the fact that his tenancy has been effectively determined by a notice to quit under Section 106 of the 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). Accordingly the payment and acceptance of rent after the determination of the contractual tenancy does not unequivocally lead to the conclusion that the contractual tenancy has revived and cannot by itself prove waiver of notice to quit which is equivalent to the revival of the contractual tenancy. That why it has been said that some evidence to prove an agreement to revive the contractual tenancy is necessary to constitute a waiver under the different 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.”

    10. Reference is made to earlier Calcutta decisions of ‘Panchanan v. Haridas*, AIR 1954 Cal 460 and ‘Mahadeo Prasad… v. Sm. 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 Property 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. Section 6 of the Act gives protection to the tenants from ejectment to certain ??? if they fail to they rent or if the land is recuired bona fide for the plaintiff the tenant's are not entitled to claim any protection under section 6. Even if the Page: 150plaintiff brings a suit for ejectment on the grounds mentioned in 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 plaintiffs 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.

    IF/O/V.B.B

    11. Appeal allowed.

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    Comments

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