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  • Section 56 of the Madras Estates Land Act.
  • Section 27 of the Estates Land Act
  • Section 51 of the Estates Land Act
  • Madras Estates Land Act
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citation codes
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  • Section 56 of the Madras Estates Land Act.
  • Section 27 of the Estates Land Act
  • Section 51 of the Estates Land Act
  • Madras Estates Land Act
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

These suits were instituted by a landholder to enforce acceptance of Puttahs under Section 56 of the Madras Estates Land Act. The Deputy Collector who tried the suits found that the tenure in the village of Chennianviduthi was Amani tenure and that, despite temporary lapses when cash rents were paid, the landholder was entitled to revert to the Varam system. On appeal the District Judge concluded there was an implied contract that rents should be paid in cash and therefore held that the plaintiff had no subsisting right to revert to Amani rates. The High Court called for fresh findings from the District Judge on issues Nos. 2 and 3 and later received revised findings from the District Judge. The High Court then reviewed those findings and delivered its final order.

Legal Issues Presented

  1. Whether the tenure of the village is Amani, and if so, what are the correct Varam rates; or whether the tenure is one of fixed money rent and, if so, what are the rates (issue No. 2).
  2. If the village was money-rented, whether the plaintiff is entitled to revert to the Varam rates (issue No. 3).

Arguments of the Parties

Respondents' Arguments (as recorded)

  • The respondents' Vakil urged that the learned District Judge was wrong to assume the rates varied; instead, the evidence showed that the rates were fixed and that variations in amounts paid arose from other variable factors (such as area and kind of paddy cultivated).
  • The respondents' Vakil further contended that there was evidence showing the same rates mentioned in Exhibit VI for Fasli 1304 continued in force in Fasli 1323, and that the District Judge was incorrect in saying there was no evidence of the rates for Fasli 1323.
  • The respondents' Vakil (or learned Vakil) argued for a construction of Section 27 that would permit presuming the rate of an earlier year (e.g., Fasli 1304) to be the proper rate in subsequent years by successive presumption, ultimately reaching the suit Fasli—an argument the Court rejected as not warranted by the language of the section.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Venkatagopal v. Rangappa, 7 M. 365 (F.B.) That payment of rent in a particular form at a certain rate for a number of years is presumptive evidence of an agreement to pay rent in that form or at that rate for those years (the District Judge quoted a passage but omitted the words "at a certain rate"). The Court noted the District Judge relied on this passage but observed the omission of the words "at a certain rate" and treated the passage critically in the context of fluctuating rates evidence.
Kavipurapu (Kavipunappa / Kavipurappa) Rama Rao v. Diritavalli (Dirisavalli / Dirisavalli) Narasayya, 27 M. 417 That to draw an inference of an agreement from past payments, the circumstances must suggest an agreement to pay at some definite rate; an implied contract to pay money rent in lieu of Varam cannot be inferred where past payments were at varying rates. The Court relied on this principle to hold that an implied contract to pay money rent could not be inferred from payments made at varying rates; the principle was treated as remaining unaffected by Section 27.
Parthasarathi Appa Row v. Chevandra Venkata Narasayya, 6 Ind. Cas. 988 : 33 M. 177 (P.C.) (and other parallel citations) The High Court and the Privy Council held that when money rents in the locality fluctuated and were not uniform, courts could not infer an agreement to pay money rents at definite rates; prevalence of money rents might still be a factor in assessing usage. The Court accepted the Privy Council's view as supporting the proposition that fluctuating rates preclude inferring a definite agreement; this authority was relied on to support the decision to allow reversion to Varam in absence of fixed rates.
Ayyaperumal Odayan v. Ramasami Chittiar, 80 Ind. Cas. 983 : (1915) M.W.N. 614 : 29 M.L.J. 362 : 2 L.W. 650 The ruling that if a party rebuts the statutory presumption in favour of the rate paid in the previous Fasli by showing it is not a satisfactory index, the court may examine evidence of any express or implied contract to pay a definite money rate at a time later than the Faisal period; temporary arrangements may be discarded. The Court described this as the principle on which that case was decided and observed that Section 27 makes no substantial difference to that principle except for placing the burden on the landlord to prove no fixity when tenants prove Fasli payments.
Karuppa Goundan v. Narayana Chettiar, 45 Ind. Cas. 406 : (1918) M.W.N. 7 L.W. 376 : 24 M.L.T. 35 On similar principles, held that, notwithstanding omission of an express provision to revert to Faisal rates in the Madras Estates Land Act, those rates could be adopted in the absence of proof of a contract to the contrary. The Court noted this decision as an example where another Bench adopted the Faisal rates on similar grounds; it indicated that the point might be open on the record but that the High Court cannot decide facts in a second appeal and therefore called for fresh findings.

Court's Reasoning and Analysis

The Court's analysis proceeded in a series of legal determinations anchored to statutory provisions and precedent:

  1. The Court emphasized that to establish a complete contract relating to rent, both the nature of the rent (money or kind) and the rate or amount must be ascertained (referencing Section 51 of the Estates Land Act). A finding that rent is payable in money alone is insufficient to constitute a complete contract.
  2. The Court criticized the District Judge's approach of treating variable past payments as immaterial. It held that where past money payments have been made at varying rates, it is not open to the courts to infer a definite agreement to pay money rents at a fixed rate. The Court relied upon earlier authorities (notably Kavipurapu Rama Rao and Parthasarathi Appa Row) to support this principle.
  3. The Court explained the effect of Section 27 of the Estates Land Act: while it places the burden on the landlord to disprove fixity of rates (once tenants prove what was paid for the previous Fasli), it does not alter the fundamental principle that fluctuating rates negate an inference of a later complete and definite contract supplanting the original Varam arrangement.
  4. The Court rejected the respondents' submitted method of chaining presumptions under Section 27 (i.e., presuming 1304's rate for 1305, then that for 1306, and so on until the suit Fasli). The Court held the section permits only a single presumption from facts proved (the rate for the previous Fasli), not a multiplicity of presumptions leading back to a remote antecedent year.
  5. Because the case involved questions of fact (existence of fixed rates over time and what those rates were), the High Court initially remitted the matter for fresh findings on issues Nos. 2 and 3. After the District Judge submitted revised findings (concluding that defendants had not proved uniform cash rates over the prior 30–40 years and that the tenure is Amani with Amani rates in Exhibit F), the High Court reviewed and accepted those revised findings.
  6. On the evidence before it (and consistent with the revised findings), the Court concluded there was no implied or specific contract to pay fixed money rents and therefore the plaintiff was entitled to revert to the Varam (Amani) rates.

Holding and Implications

Core Ruling:

The Court accepted the District Judge's revised findings, held that the defendants had not proved the existence of fixed money rates, declared the tenure to be Amani with the Amani rates as in Exhibit F, restored the decrees passed by the Deputy Collector, and directed that the defendants pay the plaintiff's costs (here and in the lower Appellate Court) including ad valorem Pleader's fees without reference to minima.

Implications:

  • The direct effect is that the plaintiff (landholder) succeeds in reverting to the Varam (Amani) system and the amounts specified in Exhibit F are to be adopted as the correct rates.
  • The defendants must pay the plaintiff's costs in the High Court and the lower Appellate Court, together with ad valorem Pleader's fees without reference to minima.
  • The Court did not purport to lay down any new broad principle beyond applying existing precedent and statutory construction; rather, it applied established authorities to the factual record and required a proper factual finding on the fixity (or otherwise) of rates before inferring a contract to pay money rents. The opinion therefore resolves the dispute on the facts and application of settled principles rather than announcing a novel rule of law.

Note: All information in this summary is drawn exclusively from the text of the provided opinion. No facts or legal propositions have been added beyond those appearing in that opinion.

    Muthiah Chettiar v. Periyan Kone

    1. These suits were brought by a landholder to enforce accepatance of Puttahs under Section 56 of the Madras Estates Land Act.

    2. The Deputy Collector, who tried the suits, found that the tenure in the village, Chennianviduthi, was Amani tenure and that in spite of temporary lapses when cash rents were paid, the landholder was entitled to revert to the Varam system. The District Judge, on appeal, found that there was an implied contract between the parties that the rents should be paid in cash and, therefore, that the plaintiff had no subsisting right to revert to Amani rates.

    3. He quotes in his judgment a passage from the Full Bench case of Venkatagopal v. Rangappa 7 M. 365 (F.B.) to the effect that payment of rent in a particular form at a certain rate for a number of years is presumptive evidence of the existence of a contract to pay rent in that form or at that rate for those years. In doing so he has omitted the words at a certain rate'. In Kavipurapu Rama Rao v. Diritavalli Narasayya 27 M. 417 it was pointed out that for drawing an inference of this nature from past payments the circumstances must be such as to suggest an agreement to pay at some definite rate. In a case where there was some evidence of money rents having been paid but the rates were fluctuating and not uniform, both the High Court and the Judicial Committee in Parthasarqthi Appa Row v. Chevandro Venkata Narasayya 6 Ind. Cas. 988 : 33 M. 177 (P.C.) : 14 C.W.N. 938 : 20 M.L.J. 696 : 8 M.L.T. 141 : 12 Bom. L.R. 648 : 12 C.L.J. 288 : (1910) M.W.N. 466 : 87 I.A. 110 Considered that it was not open to the Courts to infer an agreement to pay money rents, though the latter tribunal,observed that the prevalence of money rents in a particular locality for a number of years might form an element in the consideration of the question of usage. I am clearly of opinion that an agreement to pay rent in cash without the rate being definitely fixed would be void for uncertainty.

    3. The Deputy Collector in this case found that the defendants' exhibits did not establish the fact that uniform amounts were paid by particular ryots for several consecutive years. He observed that Exhibit VI was not a Muchilika but a list of lands in the, holding of each ryot with details of the rate, of rent due for each land, but the rates were not uniform. The learned District Judge adopted the rates given in Exhibit VI as proper rates, while recognising that they varied. He did not find that a contract, express or implied, existed to pay rent at any particular rate, but he adopted the rates given in Exhibit VI, apparently because he considered that the plaintiff bad failed to prove his case.

    4. The principle upon which the oase of' Ayyaperumal Odayan v. Ramasami Chittiar 80 Ind. Cas. 983 : (1915) M.W.N. 614 : 29 M.L.J. 362 : 2 L.W. 650 was decided was that if either party rebutted the statutory presumption raised in favour of the rate of rent paid in the previous Fasli by showing that that rate was for some reason or other not a satisfactory index of the terms on which the lands were being cultivated, then the Court, in order to arrive at a conclusion as to what was a proper Puttah under Section 57 of the Act, might go back and find whether there was evidence of any express or implied contract between the parties to pay rent at any definite money rate at any time, later than the period when Faisal rates were in vogue, discarding in so doing all evidence of temporary and provisional arrangements as affording no basis for a permanent settlement of the rate of rent that should prevail in the village [See the remarks of Coutts Trotter, J., at page 618 and my remarks at page 616 of (1915) M.W.N. 614; Ayyaperumal Cdayan v. Ramasami Ohettiar 80 Ind. Cas. 983 : (1915) M.W.N. 614 : 29 M.L. 362 : 2 L.W. 650. In Karuppa Goundan v. Narayana Chettiar 45 Ind. Cas. 406 : (1918) M.W.N. 7 L.W. 376 : 24 M.L.T. 35 Phillips and Bakewell, JJ., on similar principles held that, notwithstanding the omission from the Madras Estates Land Act of any provision corresponding to that in Act VIII of 1865, for reverting to the Faisal rates, those rates could be adopted in the absence of proof of a contract to the contrary. We were informed at the hearing of these appeals that there is material on the record upon which a conclusion might be reached on this point. As we cannot decide a question of fact in second appeal, we must call for fresh findings from the District Judge upon issues Nos. 2 and 3 upon the evidence on record in the light of the above remarks. Findings should be returned within two months. Ten days will be allowed for objections.

    Krishnan, J.

    5. I agree with my learned brother that the District Judge's finding on the question of the rent cannot be accepted as it stands.

    6. He found that rent was payable in money, and not in grain according to the Varam system, because for about 40 years prior the rent was so paid. He considered that an implied contract to pay in cash was made out; and moreover applying Section 27 of the Estates Land Act held that, as the landlord had not proved that the Varam system prevailed in the year previous to the suit Fasli he was not entitled to tender a Varam Puttah for that Fasli. The plea that payments in money were only temporary lapses from the proper Varam system was also rejected by him. He had then to find what the proper money rent was and apparently finding a difficulty in the matter, he adopted the rates for Fasli 1304 as the proper rates on the grounds that they had been more clearly proved than the rate for other years and that the tenants admitted their willingness" to accept them. The difficulty in accepting his views arises from the fact that he. has dealt with the case on the basis that the payments of rent in money in previous years were at varying. rates from time to time and not at fixed rates; in fact he has treated that question as immaterial.

    7. It seems to me that the question is very material and there ought to be a definite conclusion arrived at as to it. The respondents' Vakil has urged before us that the learned Judge was wrong in assuming that the rates varied and that the evidence showed that the rates were really fixed, though the amounts paid varied from time to time the variation being due not to the variation of the. rates but to other variable factors in the calculation such as the area and the kind of paddy cultivated, &c. He invited, us to consider the evidence ourselves but we could not do so in second appeal. The learned District Judge should consider this question and give us fresh findings on issues Nos. 2 and 3 as proposed by my learned brother.

    8. I have stated that the finding on the question of fixity of rates is material, as I am unable to accept the learned Judge's present finding as to rent on the footing that the previous payments showed varying rates. For the purpose of deciding the suits the Court has to find under Section 51 of the Estates Land Act the rate or amount of the rent as well as the nature of it. It is only when both these are found that we can have a proper specification of rent in the Puttah. Moreover, to consitute a complete contract relating to rent both points have to be ascertained. If this is borne in mind, it will be seen that a finding that rent is to be paid in money and not in kind is not enough by itself to make a proper, complete contract. To get over this difficulty the learned Judge has taken the rates for 1304 as the proper rates. But we have not been able to find any legal ground for adopting those rates as the proper rates in preference to the rates for any other year. In fact when rates vary from time to time, there is no valid basis from which an inference, as to proper rates can be made. The fact that the rates of 1305 are more clearly made oat is certainly no ground for preferring them. We are thus met with the difficulty, if we take the rates as varying in different years, that though the rents have been paid in cash, we are unable to infer from it a definite and certain agreement about it. In the absence of a later complete and definite arrangement between the parties on the point the landlord must necessarily be allowed to fall back upon the original contract of Varam, as it will not have been validly replaced by anything later. As pointed out by my learned brother this Court laid down in Kavipunappa Rama Rao v. Dirisavalli Narasayya 27 M. 417 that an implied contract to pay money rent in lieu of Varam could not be inferred from previous payments when they were made at varying rates. This view has been accepted by the Privy Council in Parthasarathi Appa Row v. Chevandra Venkatu Narasayya 6 Ind. Cas. 988 : 33 M. 177 (P.C.) : 14 C.W.N. 938 : 20 M.L.J. 696 : 8 M.L.T. 141 : 12 Bom. L.R. 648 : 12 C.L.J. 288 : (1910) M.W.N. 466 : 87 I.A. 110. It is not based on anything peculiar to the old Bent Recovery Act, as the District Judge seems to think, but on general principles, and he was wrong in disregarding the ruling as he did. The application of Section 27 of the Estates Land Act makes no substantial difference on the question, as proof that the money payments were made according to varying rates will be proof to the contrary within the meaning of the Section, as it will show that the rate paid for the previous Fasli could not be taken as settling the question. See Ayyaperumal Odayan v. Ramasami Chettiar 80 Ind. Cas. 983 : (1915) M.W.N. 614 : 29 M.L.J. 362 : 2 L.W. 650. If the tenants prove what the rent paid for the Fasli was, the burden under the section will no doubt be on the landlord to prove that there was no fixity of rates. Except to this extent of putting the burden on the landlord Section 27 seems to have made no difference on the question, and the principle laid down in the case of Kavipurappa Rama. Rao v. Dirisavalli Narasayya 27 M. 417 remains unaffected. Recently another Bench on similar grounds adopted the Faisal rates as the proper rates--See Karuppa Goundan v. Narayana, Ohettiar 45 Ind. Cas. 406 : (1918) M.W.N. 7 L.W. 376 : 24 M.L.T. 35.

    9. The application of Section 27 to the present case seems to fail on another ground as well; for the District Judge says in paragraph 20 of his judgment that there is no evidence as to what the rates were for the previous Fasli 1323. It is only when the rent for the previous Fasli is proved and reliance is placed on it to show the rate for the suit Fasli under Section 27, that the opposite party has to prove that it is not the proper rate. It is, however, argued by the learned Vakil for the respondents that the learned Judge is not correct in saying that there is no evidence, on the point. He contends that there is evidence to show that the same rates as. were mentioned in Exhibit VI for Fasli 1304 continued in force in Fasli 1323 also. As we are remitting the case for a finding to the District Judge, he may consider this contention as well. If he finds what the rates were in 1323, he will then consider, whether the rates have been proved to be variable so as to rebut the presumption of their being the proper rates for the suit Fasli.

    10.The learned Vakil also argued that even if the rate in Fasli 1323 is not proved, Section 27 should be construed as justifying the inference that the rate in Fasli 1304 was the proper rate in the suit Fasli in the absence of proof to the contrary. The argument is that under Section 27 the rate for Fasli 1304 should be presumed to be the proper rate for Fasli 1305 and the latter again presumed to be the proper rate for Fasli 1306 and so on till we come to Fasli 1324, the suit Fasli. This construction does not seem to me to be warranted by the language of the section, which allows only a single presumption to be made, and that must be from facts proved and not presumed. The suggestion that we can have a multiplicity of presumptions and combine them together to make an inference as to what the proper rate of rent in the suit Fasli is, cannot be accepted, for that will be to make an inference not from the rates of the previous year as the section says, but from those of some remote antecedent year. The section provides for a special presumption and it must, therefore, be one falling within the language used; the scope of the section cannot be extended as suggested.

    11. For the above reasons, I agree to the order proposed by my learned brother to call for revised findings on issues Nos. 2 and 3.

    12. In complaince with the order contained in the above judgment the District Judge of Tanjore submitted the following

    13. Findings.--The High Court has called for findings on the evidence on record on issues Nos. 2 and 3 in the suit, viz.

    (1) Whether the tenure of the village is Amani, and if so, what are the correct Varam rates, or whether the tenure is one of fixed money rent and what are the rates, and (2) If the village was money rented, whether plaintiff is entitled to revert to the Varam rates.

    14. I, therefore, hold that the defendants have not proved the prevalence of any uniformity of cash rates during the 30 or 40 years during which cash rates have prevailed, such as would justify me in concluding that there is any contract to pay at any fixed rate. I must, therefore, record a finding on issue No. 2 that the defendants have not proved that the tenure is one of fixed money rent, and that the tenure must, therefore, be Amani. The rates of Amani tenure are given in Exhibit F and these should be adopted. I answer issue No. 2 accordingly.

    15. As to issue No. 3, the rulings already considered must be followed and I find that since there is no implied or specific con tract to pay fixed money rents, the plaintiff is entitled to revert to the Varam rates.

    16. These second appeals coming on for final hearing after the return of the findings of lower Appellate Court upon the issues referred by this Court for trial, the Court delivered the following

    17. The points argued before us do not raise any question of law. We cannot enter into any question of fact.

    18. We accept the present findings of the District Judge and reversing the decrees passed by him, we restore the decrees passed by the Deputy Collector. The defendants will pay plaintiff's costs here and in the lower Appellate Court, ad valorem Pleader's fees without reference to minima.

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    Comments

    Muthiah Chettiar v. Periyan Kone
    (Sep 24, 1919)