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Smart Summary

Factual and Procedural Background

This opinion concerns a second appeal challenging the decision of the lower courts, which allowed the prayer for recovery of possession based on the interpretation of a lease deed (Ex. D-1) and the applicability of statutory notice requirements under Section 106 of the Transfer of Property Act. The lower courts held that the lease contained a contract dispensing with the notice requirement and found the notices sent by the respondents (Exx. D-3 and D-4) non-compliant with the statute. The appellant contests this decision in the present appeal.

Legal Issues Presented

  1. Whether the lease deed (Ex. D-1) contains a contract to the contrary that dispenses with the statutory notice requirement under Section 106 of the Transfer of Property Act.
  2. Whether the statutory notice under Section 106 applies in cases where the lease is for a fixed term.
  3. The interpretation and applicability of Section 106 of the Transfer of Property Act in relation to fixed-term leases versus leases without a fixed term or local usage.

Arguments of the Parties

Appellant's Arguments

  • The lease deed (Ex. D-1) requires the tenant to surrender possession without objection at the end of the one-year term, which is argued to dispense with the need for statutory notice under Section 106.
  • Relied on a Division Bench ruling of the Saurashtra High Court in Keshavlal Virchand v. Bai Ajawali Vachharaj (AIR 1953 Sau. 119), which held that a provision requiring vacant possession without delay or objection upon landlord's demand does not dispense with the statutory notice under Section 106.

Respondents' Arguments

  • Relied on Supreme Court decisions, including Ram Kumar Das v. Jagdish Chandra Deo (AIR 1952 SC 23), emphasizing that Section 106 applies to leases of uncertain duration, including implied leases.
  • Also cited Pooran Chand v. Motilal (AIR 1964 SC 461), indicating that Section 106 does not apply where the lease term has expired by efflux of time, implying that fixed-term leases are not subject to statutory notice requirements.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Keshavlal Virchand v. Bai Ajawali Vachharaj (AIR 1953 Sau. 119) A provision requiring tenant to deliver vacant possession without delay or objection does not dispense with statutory notice under Section 106. Accepted by the court to support the view that surrendering possession without objection at term end is not a contract dispensing with statutory notice.
Ram Kumar Das v. Jagdish Chandra Deo (AIR 1952 SC 23) Section 106 applies as a rule of construction to leases of uncertain duration, including implied leases. Used to emphasize that Section 106 governs leases without fixed terms or local usage.
Pooran Chand v. Motilal (AIR 1964 SC 461) Section 106 does not apply where the lease term has expired by efflux of time; statutory notice unnecessary in fixed-term leases. Interpreted to mean Section 106 applies only when no fixed term is contracted or imposed by local law or usage.

Court's Reasoning and Analysis

The court analyzed the terms of the lease deed (Ex. D-1) and found that the provision requiring surrender of possession "without any objection" at the end of the one-year term does not constitute a contract to the contrary that dispenses with the statutory notice under Section 106 of the Transfer of Property Act. The court relied on the Saurashtra High Court ruling in Keshavlal Virchand to support this interpretation.

The court further examined the scope of Section 106, which applies only in the absence of a contract, local law, or usage fixing the term of the lease. The section deems leases without fixed terms to be yearly or monthly tenancies terminable by statutory notice. The court emphasized that where the lease term is fixed, the statutory notice requirement under Section 106 does not arise.

Supreme Court precedents were considered to clarify that Section 106 functions as a rule of construction for uncertain term leases and does not apply to leases with fixed terms. Consequently, the court concluded that the statutory notice was not essential in the present case because the lease was for a fixed term.

Holding and Implications

The second appeal is dismissed, but without costs.

The court's decision affirms that statutory notice under Section 106 of the Transfer of Property Act is not required for leases with a fixed term. The direct effect is that the appellant's possession recovery stands upheld. No new legal precedent was established beyond the application of existing principles to the facts of this case.

    Abdul Hameed Rawther v. Balakrishna Pillai And Others

    1. Both the lower courts have held that ex. D - 1, The lease deed in question, Contains a contract to the contrary, Which has the effect of dispensing with the statutory notice under s. 106 of the transfer of property act. They have also found that if s. 106 is to apply, The notices sent by the respondents, Exx. D - 3 and d - 4, Are not in conformity with the section. In that view they have allowed the prayer for recovery of possession; and in the second appeal this decision is being challenged by the defendant.

    2. Ex. D - 1 recites that the appellant should give possession without raising any objection at the end of the term of one year mentioned therein. An amount of rs. 200/ - was paid as advance; and the recital states further that the advance amount will be paid back at the close of the term, When the property should be surrendered without any objection. In my opinion the provision that the property should be surrendered without any objection is not a contract to the contrary dispensing with the notice under s. 106 of the transfer of property act. I therefore disagree with the lower courts on the interpretation of ex. D - 1.

    3. The counsel of the appellant brings to my notice a division bench ruling of the saurashtra high court in keshavlal virchand v. Bai ajawali vachharaj (air. 1953 sau. 119), Wherein the learned judges have held that a provision that the tenant is to deliver vacant possession to the landlord without delay or objection at whatever time the landlord makes a demand for vacating is not a provision dispensing with the notice under s. 106. I agree.

    4. But, The counsel of the respondents draws my attention to two decisions of the supreme court. The first is ram kumar das v. Jagdish chandra deo (air. 1952 s. C. 23). Their lordships have observed that s. 106 enunciates a rule of construction, Which applies not only to express leases of uncertain duration but also to leases implied by law which may be inferred from possession and acceptance of rent and other circumstances. The next decision is pooran chand v. Motilal (air. 1964 s. C. 461). In this case subba rao j., Who spoke for the court, Has said:

    "it is not necessary in this appeal to express our opinion on the validity of this contention, For we are satisfied that the term of the tenancy had expired by efflux of time, And, Therefore, No question of statutory notice would arise."

    this passage indicates that s. 1c6 does not apply to cases where the parties have fixed a term for the lease: in other words, The section applies only to cases where the parties have not contracted for a term or where there is no local law or usage imposing a term.

    5. S. 106 of the transfer of property act deals with leases in which there is no contract between the parties or any local law or usage regarding their term. In such cases the section provides that a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year terminable on the part of either the lessor or the lessee by six months' notice expiring with the end of an year of the tenancy; and in other cases the lease shall be deemed to be from month to month terminable on fifteen days' notice expiring with the end of a tenancy month. Therefore, The deeming will come into operation only in the absence of a contract, Local law or usage to the contrary regarding the term of the lease; and when it operates, The deeming is that the lease, In the case of agricultural and manufacturing leases, Is an yearly lease terminable on six months' notice, And, In the case of other leases, A monthly lease terminable on fifteen days' notice. In other words, In the case of leases for terms no question of deeming arises; and if no deeming arises, No question of termination either on six months' notice or on fifteen days' notice can also arise. Putting the idea again differently, The deeming relates both to the term of the lease and the notice required for its termination: if the deeming does not arise under s. 106 regarding the term of the lease, The question of notice under s. 106 does not also arise. Thus, For term leases the statutory notice under s. 106 is not essential.

    6. In the above view of the matter i dismiss the second appeal, But, Without costs. Leave granted.

    dismissed.

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    Abdul Hameed Rawther v. Balakrishna Pillai And Others
    (Jun 16, 1966)