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  • 35 C. 34 (F. B.) : 6 C. L.J. 273 : 11 C.W.N 983 the Bengal Tenancy Act
  • Section 85(2) of the Bengal Tenancy Act,
  • Section 85 of the Bengal Tenancy Act
  • Section 35 of the Bengal Tenancy Act
  • SECTION 49 REGISTRATION ACT
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citation codes
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  • 35 C. 34 (F. B.) : 6 C. L.J. 273 : 11 C.W.N 983 the Bengal Tenancy Act
  • Section 85(2) of the Bengal Tenancy Act,
  • Section 85 of the Bengal Tenancy Act
  • Section 35 of the Bengal Tenancy Act
  • SECTION 49 REGISTRATION ACT
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The plaintiffs granted a lease dated 27 August 1896 covering 942 bighas. The plaintiffs' interest was described as that of tenure-holders; the grantees (defendants) paid a premium of Rs. 1,280 and were made under-tenure-holders. The rent was fixed in perpetuity at Rs. 688-4-0, of which Rs. 538-4-0 was to be paid directly to the superior landlord and Rs. 150 to the lessors. The lease contained a covenant that, if suits were brought against the lessors for non-payment to the superior landlord and in execution the lessors' tenure or property were attached and sold, the lessees would be bound to pay the rent due with interest, costs, damages and the proper value of such properties as might be sold.

For many years the lessors performed obligations. On 29 November 1910 the superior landlord sued the plaintiffs for rent for 1908–10. The suit was decreed on 4 January 1911 for Rs. 2,987; execution followed and the tenure was sold on 14 June 1911, purchased by the defendants for Rs. 1,600. The plaintiffs paid the balance of the decree (Rs. 1,264) to the decree-holder on 21 December 1911. On 10 May 1912 the superior landlord obtained a supplementary decree for Rs. 549 and costs and interest (on account of rent between institution of the previous suit and the sale); the plaintiffs satisfied that decree on 30 June 1912.

On 7 August 1912 the plaintiffs instituted the present suit claiming Rs. 6,170, comprised of five items: Rs. 1,280 (their share of sale proceeds of 14 June 1911); Rs. 3,000 (value of property sold); Rs. 1,264 (amount paid satisfying the first decree); Rs. 626 (amount paid to satisfy the second decree); and Rs. 300 (arrears of rent for two years).

The defendants resisted primarily on the grounds that the plaintiffs were occupancy ryots and not tenure-holders, that the permanent lease was void and inoperative because granted in contravention of Section 85 of the Bengal Tenancy Act, and that they were therefore not bound by the covenants. They also pleaded that the damages claimed were excessive. The Subordinate Judge found main facts in favour of the plaintiffs but dismissed the suit on the ground that the plaintiffs were, in reality, occupancy ryots and the lease was void under Section 85 of the Bengal Tenancy Act. The plaintiffs appealed against that decree.

Legal Issues Presented

  1. Whether Section 35(2) of the Bengal Tenancy Act (regarding sub-leases by a ryot and registration limits) and Section 85 of the Bengal Tenancy Act bear upon the validity and admissibility of the 27 August 1896 lease and, if so, what effect they have on the parties' rights.
  2. Whether the defendants, having entered into possession under the lease, are estopped from denying the plaintiffs' status as tenure-holders and thus are precluded from asserting that the lease was void under Section 85(2) (or related provisions).
  3. Whether, independently of the instrument, the plaintiffs could prove rights as landlords (this was advanced by the plaintiffs but the Court indicated that it need not be considered if estoppel applied).
  4. What is the correct measure of damages recoverable by the plaintiffs from the defendants in view of the sale and decrees satisfied by the plaintiffs?

Arguments of the Parties

Appellants (Plaintiffs) — Principal Arguments

  • The defendants who entered into possession under the lease are barred by the doctrine of estoppel and cannot question the lessors' title as tenure-holders on the basis that they were in reality occupancy ryots.
  • Even if the defendants were permitted to question the lessors' title and show the instrument to be inoperative under Section 85(2), the plaintiffs could nevertheless establish independently of the lease that the defendants were their tenants, that they entered upon the land as such and had long occupation with payment of rent on stated terms and liabilities.

Respondents (Defendants) — Principal Arguments

  • The plaintiffs were not tenure-holders but occupancy ryots; the permanent lease was void and inoperative as granted in contravention of Section 85 of the Bengal Tenancy Act; therefore the defendants were not bound by the covenants in the lease.
  • The lease of 27 August 1896 was in substance a sub-lease by a ryot within the meaning of Section 35(2) and should not have been admitted for registration because it purported to create a term exceeding nine years; the registration (contrary to the statute) must be ignored and the instrument is inadmissible in evidence under Section 49 of the Registration Act, leaving no proof that the defendants hold as tenants under the plaintiffs on the conditions set out in the lease.
  • The damages claimed by the plaintiffs were excessive.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Jarip Khan v. Durfa Bewa (15 Ind. Cas. 476; 16 C.L.J. 144; 17 C.W.N. 59) The opinion records that the Subordinate Judge relied on this decision; the text does not elaborate the specific principle from this case. The Court noted the Subordinate Judge relied on it but held his reliance was erroneous in law in the circumstances; no further specific application is described in the opinion.
Telam Pramanik v. Adu Shaikh (18 Ind. Cas. 791; 17 C.W.N. 463) The opinion records that the Subordinate Judge relied on this decision; the text does not set out a distinct rule taken from it. The Court observed these decisions were mentioned by the Subordinate Judge but concluded his decree could not be supported; specific application of this authority is not elaborated.
Bhaiganti Bewa v. Himmat Bidyakar (35 Ind. Cas. 7; 20 C.W.N. 1335; 24 C.L.J. 103) Explains the grounds of the estoppel rule: enjoyment by permission is the foundation; two conditions are essential—possession and permission; when present, estoppel arises and continues while possession continues. The Court relied on this decision to hold that the defendants, having taken possession under the lease with the lessors' permission, were not competent to deny that the plaintiffs were tenure-holders; estoppel therefore barred the defendants from invoking Section 85(2).
Trevivan v. Lawrence (1 Salk 276; 6 Mod. 256; 91 E.R. 241) Illustrates the rule that where no interest passes an estoppel may arise. The Court cited it to support the proposition that an estoppel can arise even where no interest passed, relevant to the situation where defendants obtained possession yet later contended no interest passed.
Doe d Strode v. Seaton (1835) 2 C.M. & R. 728; 1 Tyr. & G. 19; 1 Gale. 303; 5 L.J. (N.S.) Ex. 73; 41 R.R. 831 Represents the converse rule: where an interest passes no estoppel arises (as stated in the opinion). The Court contrasted this line of authority with Trevivan to explain the limits of estoppel; the opinion does not apply the case facts to produce a novel rule beyond that contrast.
Grija Kant Lahory v. Hurrish Chunder Chowdhry (19 W.R. 114) (P.C.) Cited for the general rule that estoppels are usually mutual and should bind both parties; supports reciprocity of estoppel. Used by the Court to reinforce that both grantor and grantee are mutually bound by the terms of the lease once it has been executed and acted upon.
Concha v. Concha (11 A.C. 541; 56 L.J. Ch. 257; 55 L.T. 522; 35 W.R. 477) Also cited for the principle that estoppels are generally reciprocal and bind both parties. Reinforced the Court's view that estoppel applies between the parties to this lease and precludes the defendants from proving contradictory facts to the contract.
Lilabati Misrain v. Bishun Chobey (6 C.L.J. 621) Cited in connection with the mutuality and reciprocity of estoppel. The Court referenced it as supporting authority for mutual estoppel binding both parties; no further application beyond that is stated.
Kripa Sindhu Mukerjee v. Annada Sundari Debi (35 C. 34 (F. B.); 6 C. L.J. 273; 11 C.W.N. 983) Used to state that the Bengal Tenancy Act is not a complete code even as to landlord and tenant law and does not incorporate general principles of contract and equity jurisprudence in full. The Court invoked it to remind that general contract and equity principles (including estoppel) remain applicable where relevant; it supported reliance on estoppel notwithstanding statutory provisions.
Kreglmger v. New Patagonia Meat & Cold Storage Co. ((1914) A.C. 25) Quoted for the principle that previous cases form binding precedent only to the extent they establish or affirm principles; factual resemblance alone is not authoritative. The Court used the cited passage to justify focusing on principles established by prior cases rather than treating factual similarity as determinative; this guided its treatment of the divergent authorities on Section 85.
Madan Chandra Kapali v. Jaki Karikar (6 C.W.N. 377) Listed as one of a number of cases affirming that a lease granted in contravention of Section 85(1) is operative as between grantor and grantee. The Court treated this as part of a body of authority supporting the proposition that contravention of Section 85(1) does not necessarily defeat the lease as between the parties to it.
Gopal Mondal v. Eshan Chunder Banerjee (20 C. 148) Cited among decisions holding that leases in contravention of Section 85(1) are operative between grantor and grantee. Counted as supporting authority for the proposition that the lease may bind grantor and grantee despite contravention.
Tamijuddi v. Asgar Howladar (1 Ind. Cas. 942; 36 C. 256; 13 C.W.N. 183) Included in the list of cases accepting that leases contrary to Section 85(1) operate between grantor and grantee. Relied upon as part of the prevailing line of authorities underlining that a grantee's title may not be defeated between the contracting parties by Section 85(1).
Bipin Behari Hati v. Amrita Lal Bhuttacharji (3 Ind. Cas. 685; 9 C.L.J. 76) Listed with other authorities to show that a lease in contravention of Section 85(1) can be effective inter partes. Used as part of the aggregate authority supporting the Court's statement that the title of a grantee who obtained possession cannot be defeated by mere proof of contravention of Section 85.
Arab Ali v. Rachimaddi (10 Ind. Cas. 562; 13 C.L.J. 656) Included among cases affirming the operative character of such leases between grantor and grantee. Counted in the line of decisions that the Court regarded as endorsing the binding effect of leases between the contracting parties despite Section 85 contravention.
Ali Mahammad Bepari v. Nayan Rajah Bhuiya (13 Ind. Cas. 912; 15 C.L.J. 122; 16 C.W.N. 620n) Part of the list of cases supporting inter partes effectiveness of leases in contravention of Section 85(1). Referenced as reinforcing the proposition that contravention alone does not defeat grantee's title between the parties.
Abdul Karim Patwari v. Abdul Rahman (13 Ind. Cas. 364; 15 C.L.J. 672; 16 C.W.N. 618) Another authority cited for the same general proposition (lease operative between grantor and grantee despite Section 85 contravention). Counted among the authorities supporting the Court's conclusion on the binding character of the lease inter partes.
Janaki Nath Hore v. Prabhasini Dasi (30 Ind. Cas. 893; 22 C.L.J. 99; 19 C.W.N. 1077) Included in the list of cases affirming that leases in contravention of Section 85(1) are operative as between grantor and grantee. Relied upon as part of the weight of authority favouring the lease's inter partes effect.
Lani Mia v. Muhammad Easin Mia (33 Ind. Cas. 448; 20 C.W.N. 948) Also cited among decisions that a lease contrary to Section 85(1) can operate between grantor and grantee. Formed part of the body of precedent the Court considered in concluding the lease bound the parties to it.
Basarutullah Mundle v. Kasirunnessa Bibi (11 C.W.N. 190) Identified as the only case expressing a contrary view (i.e., not following the majority); the opinion notes it has not been followed subsequently so far as the Court could discover. The Court observed this decision as a lone contrary authority but did not follow it; the opinion did not adopt its reasoning and treated it as not persuasive in the present context.
Manik Borai v. Bani Charan Mondal (10 Ind. Cas. 469; 13 C.L.J. 649) Described as an authority (followed in Ganesh v. Thanda S.A.) relevant to the construction of Section 85 and enforcing lease inter partes. The Court noted it as a binding precedent supporting the proposition that a grantee's title cannot be defeated by mere proof of contravention of Section 85 where other factors (such as prior possession) support the grantee's title.
Ganesh v. Thanda S.A. (No. 2246 of 1912; decided 22 July 1914) Noted as following the decision in Manik Borai and thus supporting the view that a lease may be operative between grantor and grantee. Referred to as subsequent judicial support for the proposition advanced in Manik Borai; the Court used it to show continuity of authority.

Court's Reasoning and Analysis

The Court proceeded in ordered steps:

  1. Statutory framing: The Court considered Section 35 of the Bengal Tenancy Act. It observed that Sub-section (1) (invalidity of unregistered sub-leases against the landlord) had no application because the superior landlord was not a party and neither party contended the lease's validity against him. The controversy was therefore restricted to Sub-section (2) of Section 35 and to the related question of the effect of Section 85 of the Bengal Tenancy Act on the lease.
  2. Defendants' contention: The defendants argued the 1896 instrument was essentially a sub-lease by a ryot within the meaning of Section 35(2) and, therefore, should not have been admitted to registration; the registration was contrary to law, rendering the instrument inadmissible under Section 49 of the Registration Act and leaving no proof of tenancy under the instrument.
  3. Plaintiffs' primary defence—estoppel: The plaintiffs urged that the doctrine of estoppel barred the defendants from disputing the plaintiffs' title as tenure-holders. The Court accepted and developed this defence. It recalled established law that where the landlord-tenant relation has been created and the tenant has taken possession with the grantor's permission, an estoppel arises by reason of the contract being carried into execution; the essential conditions are possession and permission. The Court relied on Bhaiganti Bewa v. Himmat Bidyakar and other authorities to state the foundational basis (enjoyment by permission) and to explain that estoppels are generally mutual.
  4. Effect of estoppel here: Applying that principle to the facts before it, the Court held that the defendants, having obtained possession under the lease executed in their favour, were not competent to allege or prove that the plaintiffs were occupancy ryots at the date of the lease or that no interest had passed to them. Hence Section 85(2) could not be invoked by the defendants to show the lease void as between the contracting parties. The Court emphasised the mutuality of estoppel, noting it would equally have applied if the lessors had sued to eject the lessees on the ground the sub-lease was void.
  5. Consideration of conflicting authorities on Section 85: The Court reviewed the line of decisions on the construction of Section 85. It recognised a substantial body of authority which holds that a lease granted in contravention of Section 85(1) may nevertheless be operative between the grantor and grantee. It acknowledged a single contrary case (Basarutullah Mundle v. Kasirunnessa Bibi) and recorded that the Full Bench decision in Kripa Sindhu Mukerjee indicates the Bengal Tenancy Act is not exhaustive of landlord-tenant law. The Court also cited Kreglmger on the proper use of precedent—principles rather than factual resemblance guide binding effect.
  6. The Court did not choose between two theoretical bases for treating a lease as binding inter partes (a limited construction of Section 85 as primarily for the superior landlord's benefit, or the doctrine of estoppel binding grantor and grantee). It held, however, that regardless of that choice, the doctrine of estoppel applied on the facts and therefore the Subordinate Judge's dismissal of the plaintiffs' suit could not stand.
  7. Measure of damages: On the quantification of relief, the Court disallowed the first item claimed (Rs. 1,280) because a claimant cannot recover both the value of property lost and also the sale proceeds (which are the property in money form). Regarding the second item (claim of Rs. 3,000 as the value of the property sold), the Court considered the only reliable evidence as to the market value of a permanent tenure offered by the defendants: that such tenures sell for 13 years' purchase. Given the plaintiffs' net profit from the tenure was Rs. 150 a year, the Court fixed the value at 13 × Rs. 150 = Rs. 1,950, and held the claim of Rs. 3,000 was excessive.
  8. Calculation and decree: After recalculating damages with the disallowed and reduced items, the Court allowed the appeal and awarded a decree to the plaintiffs for Rs. 4,318 with interest at 6% per annum from the date of institution of the suit to the date of realisation. The plaintiffs were also awarded costs proportionate to the sum decreed both in the present Court and below.

Holding and Implications

Holding: The appeal was allowed. The Court reversed the Subordinate Judge's dismissal and entered a decree for the plaintiffs in the sum of Rs. 4,318 with interest at 6% per annum from the date of the institution of the suit to the date of realisation; the plaintiffs were also awarded costs proportionate to the sum decreed both here and below.

Implications:

  • The direct effect is that the plaintiffs recover Rs. 4,318 with interest and costs from the defendants as set out above; the Subordinate Judge's decree dismissing the suit is set aside.
  • The Court emphasised and applied the equitable doctrine of estoppel to prevent a lessee who entered into possession under a lease from later disputing the lessor's title as tenure-holder; consequently, on these facts Section 85 could not be used by the defendants to render the lease void inter partes.
  • The opinion reviewed conflicting authorities on the construction of Section 85 of the Bengal Tenancy Act but did not purport to resolve the theoretical conflict in principle; instead it relied upon estoppel and the body of cases holding leases in contravention of Section 85(1) may operate between grantor and grantee. The Court did not assert that it was laying down a new general precedent beyond applying established principles to the facts before it.

This summary is prepared strictly from the content of the provided opinion. No facts or legal conclusions beyond those expressly stated in the opinion have been added.

    Bamandas Bhattacharyya v. Nilmadhab Saha

    1. This is an appeal by the plaintiff in a suit for recovery of arrears of rent under a lease, and of damages for breach of a covenant contained therein. On the 27th August 1896, the plaintiffs granted the lease to the defendants-in respect of an area of 942 bighas, the interest of the grantors was described as that of tenure-holders and the grantees who paid a premium of Rs. 1,280 were made under-tenure-holders by the instrument. The rent was fixed in perpetuity at Rs. 688 4-0, the tenants undertook to pay Rs. 538-4 0 direct to the superior landlord of their grantors and the balance, Rs. 150, to the lessors themselves. The lease contained a covenant that if by reason of non-payment of the rent due to the supsrior landlords, year after year, instalment by instalment, a suit is brought against the lessors and if in execution of the rent-decree the tenure or other property of the lessors is attached and sold' in auction, the lessees will be bound to pay the rent due with interest, costs and damages #and the proper value of such properties of the lessors as may be sold. The contingency thus contemplated did not happen for many years, as the lessors, who entered into possession of the lease-hold property under this instrument, duly performed their obligations. On the 29th November 1910, however, the superior landlord instituted a suit against the present plaintiffs for recovery of rent for the two years, 1908--10; it is not disputed that this rent had fallen into arrears, because the present defendants had failed to pay to the superior landlord the rent due as they had undertaken to do in the lease. The suit was decreed on the 4fch January 1911 for a sum of Rs. 2,987, execution was taken oat in due course and the tenure was sold on the 14th June 1911, when it was purchased by the present defendants for a sum of Rs. 1,600. As the rent-decree was thus satisfied only in part, the plaintiffs, on the 21st December 1911, paid to the decree-holder the balance of the judgment debt, that is, a sum of Rs. 1,264. The superior landlord, on the 10th May 1912, obtained against the plaintiffs a supplementary decree for Rs. 549 and costs and interest, on account of rent due for the period between the date of institution of the previous suit and the date of sale of the tenure. The plaintiffs satisfied this decree on the .'50th June 1912. On the 7th August 1912, they instituted this suit for recovery of Rs. 6,170 composed of five items, namely, Its. 1,280 as their share of the proceeds of the sale held on the 14th June 1911, Rs. 3,000 as the value of the property sold, Rs. 1,264 as the amount paid in satisfaction of the first decree, Rs. 626 as the amount paid to satisfy the second decree, and Rs. 300 as the arrears of rent due for two years. The defendants resisted the claim, substantially on the grounds that the plaintiffs were not tenure-holders but occupancy ryots, that the permanent lease in their favour was void and inoperative as granted in contravention of Section 85 of the Bengal Tenancy Act and that they were, consequently, not bound by any of the covenants in the lease. They further pleaded that the damnges claimed were excessive. The Subordinate Judge has found the main facts in favour of the plaintiffs, but he has dismissed the suit on the ground that, as the plaintiffs were in reality occupancy ryots and not tenure-holders, the lease was void under Section 85 of the Bengal Tenancy Act. On the present appeal, the decree of the Subordinate Judge has been assailed as erroneous in law and as not really supported by the decisions mentioned by him, namely Jarip Khan v. Durfa Bewa 15 Ind. Cas. 476 : 16 C.L.J. 144 : 17 C.W.N. 59 and Telam Pramanik v. Adu Shaikh 18 Ind. Cas. 791 : 17 C.W.N. 463.

    2. Section 35 of the Bengal Tenancy Act provides as follows:--

    "(1) If a ryot sublets otherwise than by a registered instrument, the sub-lease shall not be valid against his landlord, unless made with the landlord's consent: (2) A sub-lease by a ryot shall not be admitted to registration if it purports to create a term exceeding nine years."
    The third sub-section refers to sub-leases granted before the commencement of the bengal tenancy act and has obviously no possible application to the present case. The question for consideration is whether the first two clauses apply and, if so, what is their effect upon the rights of the parties. It is plain that the first sub-section has no application, because the superior landlord of the plaintiffs is not a party to this litigation and neither the plaintiffs nor the defendants have argued that the lease of the 27th August 1896 is valid against him. The controversy is thus restricted to the second sub-section. With reference thereto, the defendants contend that the lease of the 27th August 1896 is in essence a sub-lease by a ryot within the meaning of Sub-section 2, that it should not have been admitted to registration, that the fact of registration contrary to law must be ignored, that the instrument is thus inadmissible in evidence under Section 49 of the Registration Act, and that there is accordingly no proof that the defendants hold as tenants under the plaintiffs on the conditions mentioned therein. The plaintiffs put forward a two-fold answer to this argument, namely, first, that the defendants who entered into possession under the lease are barred by the doctrine of estoppel and are not competent to question the title of the lessors as tenure-holders on proof that they were in reality occupancy ryots, and secondly, that if the defendants are permitted to question the title of their lessor and to prove that the instrument which is the ' root of their own title is inoperative under Section 85(2). still it is open to the plaintiffs to establish independently of the lease that the defendants were their tenants, that they entered upon the land as such and that they have been in occupation for many years by payment of rent on certain terms and subject to certain liabilities in the event of default. It is obvious that the second branch of this contention will not require examination, if the first is, as we think it must be sustained.

    3. It is well settled that the creation of the complete relation of landlord and tenant has the effect in law of estopping the tenant to deny the validity of the title which he has admitted to exist in the landlord; the estoppel arises not by reason of some fact agreed or assumed to be true, but as the legal effect of carrying the contract into execution, of the tenant taking possession of the property from the hand of the lessor. The grounds of this rule were recently examined by this Court in Bhaiganti Bewa v. Himmat Bidyakar 35 Ind. Cas. 7 : 20 C.W.N. 1335 : 24 C.L.J. 103 (decided by Sanderson, C.J. and Mookerjee, J. on the 11th May 1916), where the following observation was made: Enjoyment by permission is the foundation of the rule that a tenant shall not be permitted to dispute the title of his landlord. Two conditions are essential to the existence of the estoppel, first, possession, secondly, permission; when these conditions are present, the estoppel arises, and the estoppel prevails so long as such possession continues.

    " From this point of view, the defendants are not competent to deny that the plaintiffs are tenure-holders, they cannot be permitted to allege or prove that the plaintiffs were occupancy ryots at the date of the lease executed in their favour, consequently, the case does not attract the operation of Section 85(2) of the Bengal Tenancy Act, in other words, the defendants cannot show that the lease was void and that no interest passed to them. The case thus falls within the rule that where no interest passes, an estoppel arises Trevivan v. Lawrence 1 Salk 276 : 6 Mod. 256 : 91 E.R. 241 and not within the converse rule that where an interest passes no estoppel arises Doe d Strode v. Seaton ( 1835) 2 C.M. & R. 728 : 1 Tyr. & G. 19 : 1 Gale. 303 : 5 L.J. (N.S.) Ex. 73 : 41 R.R. 831 and Langford v. Selmes 3 Kay. & J. 220 : 3 Jur. (N.S.) 859 : 69 E.R. 1089. The justice of the view we take will be obvious from a consideration of the ease converse to what has happened here. Suppose, after the lessees had gone into possession, the lessors had sued to eject them on the plea that they were occupancy ryots and not tenure-holders and that the sub-lease was consequently void under Section 85(2). The lessees would plainly have been entitled to rely on the doctrine of estoppel to defend their position. But as was pointed out by the Judicial Committee in Grija Kant Lahory v. Hurrish Chunder Chowdhry 19 W.R. 114 at p. 117 (P.C.) and by the House of Lords in Concha v. Concha 11 A.C. 541 : 56 L.J. Ch. 257 : 55 L.T. 522 : 35 W.R. 477 estoppels are, ss a general rule, mutual, or in the language of Lord Coke, every estoppel ought to be reciprocal, that is, to bind both parties and this is the reason that regularly a stranger shall neither take advantage of nor be bound by the estoppel"
    Co.-Litt. 352; Lilabati Misrain v. Bishun Chobey 6 C.L.J. 621 at p. 327. We feel no doubt whatever that the parties to this litigation are mutually bound by the terms of the lease of the 27th August 1896, and that it is no more open to the defendants than to the plaintiffs to prove facts contradictory to the allegations which formed the basis of the contract, after that contract had been carried into execution and the contracting parties had enjoyed benefits there under. In fact, the Advocate-General, with the candour which always characterises his arguments, did not seriously contest the correctness of this view.

    4 The question remains, however, whether the numerous judicial decisions which interpret Section 85 of the Bengal Tenancy Act and which are by no means easy to reconcile, militate against this conclusion. The majority of tbo3e decisions, to which we shall presently make a brief reference, do not really touch the cardinal question in controversy in this suit, but before we consider them, two important principles may be conveniently re-stated. In the first place, as is clear from the decision of the Full Bench in Kripa Sindhu Mukerjee v. Annada Sundari Debi 35 C. 34 (F. B.) : 6 C. L.J. 273 : 11 C.W.N 983 the Bengal Tenancy Act is not a complete code even in respect of the law of landlord and tenant, much less does it profess to incorporate the general principles of the law of contract and the doctrines of equity jurisprudence, in so far as they may have to be applied in the determination of disputes between landlords and tenants. In the second place, is pointed out by Lord Haldane, L.C in Kreglmger v. New Patagonia Meat & Cold Storage Co. (1914) A.C. 25 at p. 39 : 83 L.J. Ch. 79 : 100 L.T. 8025 : 58 S.J. 97 : 30 T.L.R. 114 each case forms a real precedent only in so far as it affirms a principle and the binding force of previous decisions, unless the facts are indistinguishable, depends on whether they establish a principle: 'To follow previous authorities, so far as they lay down principles, is essential, if the law is to be preserved from becoming unsettled and vague. In this respect the previous decisions of a Court of co-ordinate jurisdiction are more binding in a system of jurisprudence such as ours than in systems where the paramount authority is that of a code. But when a previous case has not laid down any new principle, but has merely decided that a particular set of facts illustrates an existing rule, there are few more fertile sources of fallacy than to search in it for what is simply resemblance in circumstances, and to erect a previous decision into a governing precedent merely on this account. To look for anything except the principle established or recognised by previous decisions is really to weaken and not to strengthen the importance of precedent. The consideration of cases which turn on particular facts may often be useful for edification, hut it can rarely yield authoritative guidance."

    5. As regards the decisions upon the construction of section e5 of the bengal tenancy act, it is plain that a long line of cases affirms the view that a lease granted in contravention of Section 85(1) is operative as between the grantor and the grantee Madan Chandra Kapali v. Jaki Karikar 6 C.W.N. 377; Gopal Mondal v. Eshan Chunder Banerjee 20 C. 148; Tamijuddi v. Asgar Howladar 1 Ind. Cas. 942 : 36 C. 256 : 13 C.W.N. 183; Bipin Behari Hati v. Amrita Lal Bhuttacharji 3 Ind. Cas. 685 : 9 C.L.J. 76; Arab Ali v. Rachimaddi 10 Ind. Cas. 562 : 13 C.L.J. 656; Ali Mahammad Bepari v. Nayan Rajah Bhuiya 13 Ind. Cas. 912 : 15 C.L.J. 122 : 16 C.W.N. 620n; Abdul Karim Patwari v. Abdul Rahman 13 Ind. Cas. 364 : 15 C.L.J. 672 : 16 C.W.N. 618; Janaki Nath Hore v. Prabhasini Dasi 30 Ind. Cas. 893 : 22 C.L.J. 99 : 19 C.W.N. 1077 and Lani Mia v. Muhammad Easin Mia 33 Ind. Cas. 448 : 20 C.W.N. 948. The only case which supports the contrary view is the decision of Geidt, J. in Basarutullah Mundle v. Kasirunnessa Bibi 11 C.W.N. 190 which, so far as we have been able to discover, has not been followed in any subsequent decision. The conclusion as to the binding character of the lease as between grantor and grantee may be supported on one of two grounds, namely, first that the validity of a lease granted in contravention of Section 85(1) can be questioned only by the landlord of the grantor or by the holder of a derivative title from him, or secondly, that the doctrine of estoppel binds the grantor and grantee equally and debars each from disputing the validity of the lease to the detriment of the other. The first -of these principles has not been universally accepted and is possibly in jonfiict with the rule enunciated in Jarip Khan v. Durfa Bewa 15 Ind. Cas. 476 : 16 C.L.J. 144 : 17 C.W.N. 59 and Telam Pramanik v. Adu Shaikh 18 Ind. Cas. 791 : 17 C.W.N. 463. These cases, however, do not affect the authority of the decision in Manik Borai v. Bani Charan Mondal 10 Ind. Cas. 469 : 13 C.L.J. 649 which was followed in Ganesh v. Thanda S.A. No.. 2246 of 1912 (decided by Fletcher and Richardson, JJ., on 22nd July 1914). It is not necessary for our present purpose to make a choice between the two classes of cases, one of which places a limited construction on Section 85 and holds it to have been enacted for the benefit of the superior landlord, while the other places a wider construction upon the section and allows a stringer to avail himself of its provisions to defeat the title of a grantee who had not obtained possession before or after the grant. Apart from the conflict on this point, there is no serious doubt as to two propositions, namely, first, that the title of a grantee, who can fall back upon prior possession as tenant or otherwise, cannot be defeated by mere proof of contravention of Section 85, and secondly, that, as between grantor and grantee the rule of estoppel applies when elements essential to attract its operation are proved to exist. In the case bafore us, as we have already explained, the defendants are precluded by the doctrine of estoppel from asserting that their obligations are other than those set out in the lease of the 27th August 1896, on the strength whereof they obtained possession from their grantors. In this view, the decree of the Subordinate Judge cannot be supported.

    6. We have finally to consider the question of the measure of damages. The defendants dispute only the first two items claimed by the plaintiffs. The first item must obviously be disallowed; the plaintiff* cannot claim the value of the property lost to them as also the sale-proceeds, which simply represent the property transformed into money. As regards the second item, the claim is clearly excessive. As between the plaintiffs and the defendants, the property may be deemed to be a tenure, but the only reliable evidence as to the market value of a permanent tenure which coma3 from the side of the defendants is, that it sells for 13 years' purchase. As the net profit derivable by the plaintiffs was Rs. 150 a year, the value cannot be estimated at a higher figure than Rs. 1,950. The appeal will consequently be allowed and the plaintiffs will have a decree for Rs. 4,318 with interest thereon at 6 par cent, par annum from the date of the institution of the suit to the date of realisation. The plaintiffs will also have their costs, in proportion to the sum decreed both here and in the Court below.

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