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  • section 575 of the Civil Procedure Code
  • provisions of the Rent Recovery Act
  • section 11 of the Rent Recovery Act
  • section 8 of the Rent Recovery Act
  • section 562, Civil Procedure Code,
  • Rent Recovery Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • section 575 of the Civil Procedure Code
  • provisions of the Rent Recovery Act
  • section 11 of the Rent Recovery Act
  • section 8 of the Rent Recovery Act
  • section 562, Civil Procedure Code,
  • Rent Recovery Act
Smart Summary

Factual and Procedural Background

These 27 civil miscellaneous appeals arise from suits brought by ryots (tenants) holding lands in villages of the zamindari of Gantamanaichanur. The ryots sued under section 8 of the Rent Recovery Act before the Sub-Collector seeking pattas for fasli 1312 charging the dry rate (4 fanams per guli). Their pleaded case was that they had sunk wells at their own expense on dry lands and, by means of those wells, raised garden crops; notwithstanding this, the Zamindar (respondent) insisted on charging the higher garden rate of 8 fanams per guli.

In his written statement the respondent did not plead that he or his predecessors had sunk the wells; he relied instead on (a) a local custom said to permit charging the higher rate, and (b) an implied contract argued to arise from the fact that the ryots had paid the higher rate for a number of years. The Sub-Collector proceeded on agreed facts (that the lands were dry, wells were sunk by the ryots themselves, and past payments at the higher rate had been made) and framed two preliminary legal issues (on custom and implied contract). The Sub-Collector held for the ryots, directing pattas at 4 fanams per guli. On appeal the District Judge reversed and remanded the cases for disposal on the merits without specifying how the preliminary issue(s) should be treated on remand. The present appeals followed to the High Court.

Legal Issues Presented

  1. Whether there is a general custom to charge enhanced (garden) rates for garden crops raised by tenants where the improvement (wells) was made at the tenant's expense, and if such a custom is proved whether it is valid in law.
  2. Whether past payment by the tenants at the enhanced rate for several years operates as an estoppel or gives rise to an implied contract binding the tenants to continue paying the higher rate.

Arguments of the Parties

Appellants' Arguments (Ryots)

  • The ryots asserted that they themselves sank wells at their own cost on dry lands and thereby obtained irrigation enabling garden cultivation.
  • They sought pattas charging the dry rate (4 fanams per guli) because, in their view, improvements made by tenants should not attract liability to enhanced rent.

Respondent's Arguments (Zamindar)

  • The respondent contended he was entitled to charge the higher garden rate of 8 fanams per guli on two grounds: (a) a local custom permitting such enhanced charges for garden crops, and (b) an implied contract deduced from the fact that tenants had paid the higher rate for a number of years.
  • He also suggested (as advanced later in argument) that another local custom required tenants to obtain the landholder's permission before sinking wells, and that receiving rent at the higher rate could be treated as the landholder's permission and therefore as consideration supporting the implied promise by tenants to pay the higher rate. However, in his written statement he did not specify any consideration moving from him or his predecessors to support the alleged promise, nor did he plead that he had sunk or improved the wells.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Fischer v. Kamakshi Pillai That a custom asserting a landlord's right to charge enhanced rates can be upheld only in so far as it does not conflict with statutory law (i.e., customs cannot defeat statutory protections). Used to show that the custom relied on by the respondent cannot be enforced to deprive tenants of the benefit of improvements conferred by them where this conflicts with the Rent Recovery Act; cited as an authority against the landholder's claim.
Gopalasami Chettiar… (Defendant) v. Fischer… (Plaintiff) That since the passing of Act VIII of 1865 (Rent Recovery Act), customary practices cannot be enforced so as to deprive a tenant of the benefit of his own improvements; and that there is no distinction between improvements made before or after the Act for this purpose. Followed by the Court to reinforce that a landholder cannot charge a tax (or enhanced rate) in respect of crops grown by a tenant by means of wells constructed at the tenant's cost; supports the appellants' legal position.
Nagasami Kamia Naick v. Iyodi Rama Goundan Referenced as an authority consistent with the proposition that customary claims conflicting with statutory tenant protections are not enforceable. Not elaborated in detail in the opinion, but cited as additional supporting authority for the Court's treatment of custom versus statutory rights.
Venkatanarasimha Naidu v. Dandamudi Kotayya Describes the tenure under which the appellants hold land as of permanent character (i.e., a category of tenancy to which certain rules apply). Applied to conclude that, given the permanent character of the tenure involved, it was difficult to see why the landholder's permission would be necessary for tenants to sink wells; undermines the respondent's later contention that permission (and thus consideration) supported an implied contract.
Gann v. Free Fisheries of Whitstable (observations of Lord Chelmsford) Illustrates that even in cases of immemorial usage the doctrine of quid pro quo (consideration) is not entirely to be ignored; courts may require some lawful origin or consideration for long-standing payments. The Court referred to the case by way of analogy when discussing whether long-continued payments could give rise to a presumption of lawful origin; concluded the analogy did not assist the respondent because the payments here ranged only between 1 and 18 years.

Court's Reasoning and Analysis

The Court's analysis proceeds in distinct strands corresponding to the two preliminary issues and the procedural posture:

  1. Treatment of facts and preliminary framing: The Sub-Collector proceeded on an agreed factual footing (as reflected in pleadings) that: (a) the lands were dry lands normally chargeable at 4 fanams per guli; (b) the wells were sunk by the ryots at their own expense (not by the respondent or his predecessors); and (c) the tenants had paid the higher rate for various periods as disclosed in the respondent's tabular statement. On that basis the Sub-Collector framed two legal issues (custom and implied contract) and decided them without recording further evidence.
  2. On the validity of the alleged custom: The Sub-Collector held that provisions of the Rent Recovery Act secured to tenants the full benefit of improvements effected by them without liability to enhanced rent, so that even if a local custom existed it could not, as a matter of law, defeat the statutory protection. The High Court (Subrahmania Ayyar, J.) relied on authority (Fischer v. Kamakshi Pillai; Gopalasami Chettiar v. Fischer; and Nagasami Kamia Naick v. Iyodi Rama Goundan) to hold that a custom permitting a landlord to charge enhanced rates for crops raised with tenant-made improvements cannot be enforced to deprive the tenant of that benefit in conflict with the Act. The Court noted that the District Judge made no reference to this first issue when reversing and remanding, leaving uncertainty about how it should be dealt with on remand.
  3. On implied contract and consideration: The Court analysed whether past payments at the higher rate could give rise to an enforceable implied contract to continue payment. It concluded that while repeated payments might prima facie suggest an agreement to pay, such an agreement would not be binding if unsupported by consideration. Here, because the improvement (wells) was the tenants' own act, there was no detriment to the landholder or advantage moving from the landholder that could constitute consideration. The Court treated an implied agreement based solely on prior payments as nudum pactum (a bare agreement) lacking consideration and therefore unenforceable.
  4. On the respondent's alternative contention about permission as consideration: The Court observed that although the respondent later urged that there was a local custom preventing tenants from sinking wells without landholder permission (and that receipt of higher rent constituted such permission and thus consideration), the respondent had not pleaded or particularized such a custom or any consideration in his written statement. The Court further assessed the nature of the tenure (citing Venkatanarasimha Naidu v. Dandamudi Kotayya) and found it unlikely that permission would have been required. Even if such a custom existed, it would be inconsistent with the policy of the proviso to section 11 of the Rent Recovery Act, which grants tenants an unqualified right to make improvements free from liability to pay for the benefit accruing.
  5. On the weight of long continued payments: The Court acknowledged that in extreme cases of long continued payments a presumption of lawful origin might be considered (analogy to the lost grant principle), and cited Lord Chelmsford's observations in Gann v. Free Fisheries of Whitstable as indicating that quid pro quo may not be wholly ignored even for immemorial usages. However, the Court found that the payments in these cases ranged only from 1 to 18 years and that the presumption of lawful origin was therefore inadmissible. The absence of any allegation or evidence of consideration from the landholder reinforced the view that the higher-rate payments likely originated in mutual mistake rather than in any binding agreement.
  6. Procedural point addressed by Moore, J.: Moore, J. focused on procedural propriety. He observed that the Sub-Collector had disposed of preliminary issues and then decided the suits without framing additional issues or taking evidence on matters that may raise factual disputes. The District Judge's reversal and remand for disposal on the merits was, in Moore, J.'s view, a proper exercise of the District Judge's powers under section 562 of the Civil Procedure Code; Moore, J. therefore considered dismissal of the appeals appropriate, but declined to express any view on the correctness of the District Judge's decision on the preliminary point (preferring that question be raised, if at all, in a second appeal).

Holding and Implications

Final Holding: THE APPEALS ARE DISMISSED WITH COSTS. (The opinion records that under section 575 of the Civil Procedure Code the appeals are dismissed with costs.)

Consequences and practical implications (as reflected in the opinion):

  • Direct effect on these parties: the appeals brought by the ryots were dismissed by the High Court with costs under section 575 CPC.
  • Legal principles reiterated by the Court: (a) statutory protections in the Rent Recovery Act (including the proviso to section 11) prevent local customs from being enforced to deprive tenants of the benefit of improvements made by them; (b) past payments at an enhanced rate do not automatically create an enforceable implied contract absent consideration; (c) a suggestion that receipt of higher rent equates to landholder permission (and thereby consideration) must be pleaded and proved, and cannot be assumed when the tenure and statutory policy negate the necessity of such permission.
  • The opinion does not purport to establish an entirely new precedent; it applies and reiterates existing authorities to the facts before the Court and records differing judicial views on procedural handling (Subrahmania Ayyar, J. would have restored the Sub-Collector's decrees; Moore, J. upheld the District Judge's remand and would dismiss the appeals). The ultimate order, however, is dismissal with costs under section 575 CPC.

If any particular piece of information (for example, detailed evidence taken at the Sub-Collector level or the District Judge's specific reasons for remand) was not set out in the provided opinion, that information is not included here because it was not contained in the source text.

    Arumugam Chetti v. Raja Jagaveera Rama Venkateswara Ettappa

    Subrahmania Ayyar, J.:— The appellants in these 27 civil miscellaneous appeals are ryots holding lands in certain villages in the zamindari of Gantamanaichanur. They brought these suits before the Sub-Collector under section 8 of the Rent Recovery Act to compel the respondent who is the Zamindar to grant them proper pattas for fasli 1312. In the plaints they stated that though they themselves had sunk wells at their own cost in certain dry lands forming part of the holdings and with the aid thereof they had been raising garden crops, the respondent insisted upon charging the garden rate of 8 fanams per guli instead of the dry rate of 4 fanams per guli, which alone he was entitled charge in respect of such cultivation. They therefore prayed for a decree that pattas may be granted to them in which the said dry rate alone is charged.

    The respondent in his written statement did not allege that the wells were sunk by himself or his predecessors in title, but in effect asserted that, even assuming that the wells were sunk by the ryots themselves, he had a right to charge the higher rate of 8 fanams on the ground first, of a local custom, and secondly, of a contract to pay at that rate to be implied from the fact of its payment by the ryots for a number of years. He did not, however, either then or subsequently, aver or suggest that any consideration passed from him or his predecessors in title which would support the alleged promise on the part of the ryots to pay at the higher rate. In a tabular statement filed by him under the orders of the Sub-Collector he simply set forth in respect of the land in each case in regard to which the question was raised, the period during which payment at the higher rate had been made. The Sub-Collector proceeded to deal with the cases on the footing that the facts were (1) the lands to which the dispute relates were dry lands chargeable with 4 fanams per guli, (2) that the wells were sunk at the cost, not of the respondent or his predecessors in title, but of the ryots themselves, and (3) that the payment at the higher rate had been made by the ryots for the respective periods specified in the statement referred to above. Accordingly he raised the following issues:—

    “(1) Is there a general custom to charge enchanced rates for garden crops when raised by plaintiff irrespective of any improvement or alteration in the land made at plaintiff's expense and is such custom, if proved, valid in law?”

    “(2) If plaintiff has paid at such enhanced rates for previous several years, is he estopped from objecting now to the enhanced rates, and is there an implied contract binding him to continue to pay such rates?”

    As to the existence of the custom, the Sub-Collector recorded no evidence for he held that the provisions of the Rent Recovery Act secured to the appellants the benefit of the improvement effected by them free from any liability to enhanced rent, and consequently, that the custom, even if it exists, could not in point of law disentitle the appellants to claim such benefit. As regards the question of implied contract, he was of opinion that the alleged contract was illegal as opposed to the said provisions of the statute. In the result he directed that the respondent do tender pattas charging 4 fanams per guli with reference to the lands, to the garden cultivation whereon, the dispute related. On appeal the District Judge reversed the decrees and remanded the cases for disposal on the merits, though he does not say what the merits contemplated were.

    That in the lower Courts the parties throughout proceeded in all these cases on the footing that there were no facts to try except as to the existence of the alleged custom, must be clear from what has already been stated, and this is expressly pointed out by the Sub-Collector himself. After summarising the pleadings, he observes in paragraph 2 of his judgment, “Defendant in his written statement makes no plea that he sank or improved the wells, and in his pleadings admitted, that he could not assert that he had sunk or improved the wells. He practically allowed plaintiffs' contentions on this point and on that understanding certain preliminary issues were framed on objections put forward by the defendant.” Statements to the same effect will also be found in paragraph 7 of the judgment and the last paragraph, but one unmistakeably shows, that in certain other suits between the ryots and the Zamindar in which, unlike here, a question of fact had to be gone into, viz., whether the wells in question there had not been sunk prior to the Rent Recovery Act coming into force, the Sub-Collector reserved the trial. Thus, when the cases came, before the District Court there were but two questions raised for determination, both questions of law only, viz., the effect of the custom, assuming there was one, upon the right of the appellants to raise garden crops with the aid of their own wells, and secondly, whether the naked fact of payment for a series of years at the rate of 8 fanams in respect of such cultivation warranted a finding that the appellants were bound to continue the payment as a matter of implied contract. To the first question the District Judge makes no allusion whatever in his judgment. Whether in the argument before him the point was raised and urged does not appear. Considering that the Sub-Collector's decision on it was against the respondent, and considering that if that decision were wrong it would be necessary to try whether in point of fact the custom prevailed, it should have been made clear, in reversing and remanding the cases, what was the course to be pursued by the Sub-Collector with reference to the first part of the first issue when the cases went back to him. The matter, however, to say the least is left in doubt, and it seems to me we are called upon in these appeals to remove that doubt. Now as to the point itself it is covered by authority. In Fischer v. Kamakshi Pillai(1) referred to by the Sub-Collector the very question arose and the decision was against the landholder and it was held that a custom such as that alleged could be upheld only in so far as it might not conflict with the statute law. This decision has been followed very recently in Gopalasami Chettiar…(Defendant) v. Fischer…(Plaintiff) .*(2). There the landholder relied on the custom of his mitta as entitling him to make a charge even in respect of trees grown by the tenant with the irrigation from wells constructed at the cost of the tenant. Though such a custom was found to prevail yet it was held by the lower Courts that the custom cannot, since the passing of Act VIII of 1865, be enforced so as to deprive a tenant of the benefit of his own improvements, and that, therefore, when the improvement was made after 1865 the tenant is not bound to pay a tax on trees grown in his own patta land by means of such improvement. In this Court not only was this view confirmed, but it was laid down that there was no distinction in the matter between improvements by the tenant effected since the passing of the said Act and those effected prior to it. See also Nagasami Kamia Naick v. Iyodi Rama Goundan. It follows therefore that the first ground on which the respondent based his demand of 8 fanams per guli is unsustainable.

    As regards the other ground relied on by him it will be seen from what I have already said when stating the effect of the pleadings, that both the Sub-Collector and the District Judge failed to grasp the real point involved in the contention, viz., that though payment for a number of years at the rate of 8 fanams may imply an agreement to pay in future at that rate, yet that will not imply a contract between the parties, for the obvious reason that there was no consideration to support such an agreement so as to make it a binding one. To put it otherwise, the improvement having been effected by the tenant himself, there was no obligation to make in extra payment in respect of cultivation resulting from such improvement, unless a promise so to pay was made, or could be inferred to have been made, on account of some detriment to the landholder or advantage to the tenant which a point of law, would have constituted consideration for the promise. As however none such was alleged in these cases, the agreement to be implied from the naked fact of payment at the rate of 8 fanams per guli for a longer or shorter period is nudum pactum and does not compel the appellants to continue to pay at the same rate any longer. It was however argued on behalf of the respondent that according to another custom in the locality the appellants were not entitled to sink the wells referred to without the permission of the landholder, and as receipt of rent at the rate of 8 fanams involved a permission on his part to the wells being sunk, such permission was consideration sufficient to support the promise on the part of the tenants to pay at that rate. No doubt, in the last paragraph of the respondent's written statement it is asserted that the tenants had no right to sink the wells without the permission of the Zamindar, but on what ground that right was denied he did not venture then to add. If custom had really been taken to be the ground for the denial as suggested for the first time here on his behalf, a reference to it would certainly not have been omitted in the paragraph. On the contrary, not only is there no specific allusion to it in the paragraph, but the general tenour of the paragraph taken as a whole, negatives the intention to rely on custom. Paragraph 3 of the same written statement goes far to confirm this for there on expressly relies on custom in support of his claim for increased theerva with reference to nature of the crop raised. Now the tenure under which the appellants hold the lands in respect of which the grant of pattas is claimed, being of the permanent character described in Venkatanarasimha Naidu v. Dandamudi Kotayya and the cases following it, it is impossible to understand why the landholder's permission for the sinking of the well was necessary. And even supposing that a custom supporting the averment can be shown, such a custom must he held to be had if not for its unreasonableness, at least on account of its utter inconsistency with the policy of the proviso to section 11 of the Rent Recovery Act which expressly admits the tenants unqualified right to make improvements free from any liability to make any payment to the landholder in respect of the benefit accruing therefrom. If in cases like the present, payments at the higher had continued to be made for a great many years so as to make it unfair to the landholder, on account of such lapse of time, to be compelled to prove the existence of some consideration when the payment commenced, it may be a question whether the Courts should not presume a lawful origin for the payment, on the analogy of the lost grant principle availed of to support long possession and enjoyment. That even in the case of immemorial usage the doctrine of quid pro quo is not altogether to be ignored, will be seen from the observations of Lord Chelmsford in Gann v. Free Fisheries of Whitstable. Be this as it may, in the present cases, the presumption of lawful origin is quite inadmissible considering that the payments have been made, as will be seen from the note the margin, during periods ranging between 1 and 18 years only. Moreover if in truth there was any consideration moving from the landholder in any of these cases, it would not in the circumstances have been difficult for him to state what it was, and adduce evidence to prove it, as from the very commencement the payments were in pursuance of muchilikas obtained from the tenants. Upon the only facts therefore which are before the Court,—payment at the dry rate or 4 fanams per guli prior to the sinking of the wells by the tenants, and payment at the garden rate of 8 fanams subsequent to the improvement which gave the facility for a change of cultivation—the reasonable inference to be drawn is only that the payment originated in the mistaken notion on the part of the tenant that he was bound to pay, and on the part of the landholder that he was entitled to receive the higher rate, due to the prevalence in some zamindaris of the practice of varying the assessment according to the crop raised, the restrictive operation on such practice of section 11 of the Rent Recovery Act and particularly of the proviso as regards tenants' improvements, being wholly overlooked.

    No of years for which higher theerva was paid. No. or Nos. of the original suit or suits. 1 year 15. 2 year 14, 33. 4 year 29. 5 year 25, 31,. 6 year 20, 24, 26, 30, 35. 7 year 40. 8 year 21, 37, 38, 39. 9 year 33. 10 year 50. 11 year 17, 24, 36. 12 year 18, 48. 13 year 21, 33. 14 year 15, 17, 48. 16 year 47, 49, 50, 53. 18 year 21, 22, 23, 34.

    It is scarcely necessary to add that the tenants' right to relinquish the whole or any part of his holding recognised by section 12 of the Act, to which also some reference of made on behalf of the respondent, in no way detracts from this tenant's right to make such an improvement as the sinking of 4 well during the subsistence of the tenancy.

    I would therefore set aside the order of the District Judge and restore the decree of the Sub-Collector with costs here and in the lower Appellate Court.

    Moore, J.:— The Sub-Collector framed two preliminary issues and when he had disposed of them, proceeded to decide the suit without framing the additional issues that arose and without taking any evidence either oral or documentary. The District Judge on appeal reversed his decree upon the preliminary point. Such being the case the District Judge was, in my opinion, right in acting under section 562, Civil Procedure Code, and remanding the suit for disposal on the merits. These appeals should, in my opinion, he dismissed with costs. I give no opinion as to the correctness or otherwise of the decision of the District Judge on the preliminary point. The proper time to consider that question will, in my opinion, be when the case comes up before us in the usual manner in second appeal, in case such an appeal is eventually preferred.

    Under section 575 of the Civil Procedure Code these appeals are dismissed with costs.

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    Arumugam Chetti v. Raja Jagaveera Rama Venkateswara Ettappa
    (Mar 9, 1905)