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Rabindra Chandra Ghosh v. Mahtha Gauri Singh

Patna High Court
May 4, 1937
Smart Summary (Beta)

Structured Summary of the Opinion (Fazl Ali, J.; Dhavle, J. concurring)

Factual and Procedural Background

The appeal arises from a suit concerning village Phulwaria, part of Taluk Jagodih. The appellants (sons of the original plaintiff, substituted after his death) assert ownership of Taluk Jagodih. Historically, Raja Bed Khan granted the village by way of khorposh (maintenance) to his son Jobraj Khan; in 1864 Jobraj Khan granted a mukarrari (a lease-like grant, subject to quit rent) in respect of the village to a person whose interest now lies with the defendants. The original grant by Raja Bed Khan was determinable on extinction of the male line of the grantee. The plaintiff alleged that Jobraj Khan died without male issue (about forty years earlier) and, asserting the grant had thus determined, in 1918 sent notice to the defendants requiring them to give up possession. The defendants refused, and the plaintiff sued for ejectment. The Additional Subordinate Judge (Munsif) decreed the suit in part (after some defendants entered into a compromise), but the Judicial Commissioner of Chota Nagpur dismissed the suit in its entirety on limitation/adverse-possession grounds. The present appeal challenges that dismissal; the Court below's judgment was set aside and the trial Court's decree restored.

Legal Issues Presented

  1. Whether the defendants' continuous possession for about 40 years after Jobraj Khan's death amounted to adverse possession barring ejectment under the statutory 12-year limitation period.
  2. Whether the plaintiff's acceptance of rent from the defendants after the mukarrari became void had the legal effect of creating a new tenancy (in particular by reference to Section 116 of the Transfer of Property Act) or of confirming all terms of the old mukarrari in favour of the defendants.
  3. Whether the trial Court's decree (including a declaration of ownership and, as limited by service defects, partial relief on khas possession) should be restored in place of the lower appellate Court's dismissal.
  4. How earlier authorities (notably 27 Cal 156 and 4 Pat 139, affirmed as 7 Pat 649) and standard treatise statements inform the legal effect of acceptance of rent after the original grant has terminated.

Arguments of the Parties

Appellant (Plaintiff) — Main contentions

  • The plaintiff contended that the defendants continued to pay rent to him in the same manner as before Jobraj Khan's death and that by accepting such rent the plaintiff had, by operation of law or analogy to the principle in Section 116 of the Transfer of Property Act, created a new tenancy (a tenancy from year to year) in favour of the defendants.
  • Implicit in the plaintiff's position is that because the defendants were tenants (year-to-year), their possession was not adverse and they could be ejected despite the passage of time.

Respondents (Defendants) — Main contentions

  • The respondents conceded that Jobraj Khan had died and that they continued in possession thereafter, but they relied primarily on a plea of limitation: asserting adverse possession for the statutory period (more than 12 years) to bar the plaintiff's ejectment claim.
  • They also contended (as read from the record) that mere acceptance of rent by the plaintiff confirmed all terms of the original mukarrari and thus made the defendants' predecessors' mukarrari terms binding on the zamindar, supplying them a permanent interest.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Section 116, Transfer of Property Act, 1882 Principle that payment and acceptance of rent after termination of a lease may, in some circumstances, operate to create a tenancy (e.g., tenancy from year to year) or be invoked by analogy as a rule of equity and good conscience. The Judicial Commissioner below held S.116 had no application because defendants were never lessees under the plaintiff. Fazl Ali, J. accepted that S.116 may not be directly applicable but considered its principle; he treated the acceptance of rent as creating a new yearly tenancy even if S.116 did not strictly apply. Dhavle, J. noted that, if S.116 were applicable, the plaintiff could have shown he accepted rent in ignorance of termination.
27 Cal 156 (Judicial Committee) Holds that where an original life grant expired, a subsequently executed patta in favour of a purported permanent lessee is void against the successor in title of the grantor; acceptance of rent at the rate in the patta cannot confirm the entire patta. The court relied on this decision to conclude that mere acceptance of rent by the zamindar (plaintiff) after the mukarrari became void could not be taken to confirm all the mukarrari's terms in favour of the defendants. It supported the view that acceptance of rent created at most a new yearly tenancy, not a permanent interest.
4 Pat 139 (decision of Jwala Prasad, J.), affirmed by the Judicial Committee as 7 Pat 649 Was cited by the Judicial Commissioner as supporting the conclusion that the defendants were not tenants but adverse possessors and that the acceptance of rent did not create a tenancy in the plaintiff's favour in that case. The court distinguished 4 Pat 139 on its facts: in that case the zamindar issued receipts only in the name of the original mukarraridar (marfatdari form) and deliberately avoided any act that would recognize heirs as tenants; therefore no new tenancy arose. Because in the present case rent was accepted in a manner treating the defendants as tenants, 4 Pat 139 was not applicable.
7 Pat 649 (affirmation of 4 Pat 139) Affirmation by the Judicial Committee of the decision in 4 Pat 139; supports the factual principle emphasised there about non-recognition of heirs as tenants. Used as authority that 4 Pat 139 had been affirmed; court relied on the factual distinction to distinguish the present case from the earlier one.
Woodfall's Law of Landlord and Tenant (textbook) Statement: If a person enters under a void lease he is a tenant-at-will except as to duration; when he pays or agrees to pay rent reserved, he becomes a tenant from year to year under terms of the void lease insofar as they are consistent with a yearly tenancy. The court quoted this passage and applied it to hold that the defendants, by paying rent and the plaintiff accepting it after the mukarrari expired, became tenants from year to year under the plaintiff (subject to the limitation that duration could not exceed original grant's extent).

Court's Reasoning and Analysis

The court proceeded through the following analytical steps, based on the material facts and authorities in the record:

  1. The Judicial Commissioner concluded that Jobraj Khan died about 40 years prior, the plaintiff knew or should have known shortly after, and the defendants had been in possession as trespassers for over 12 years; therefore the plaintiff was time-barred. Fazl Ali, J. examined this conclusion and observed that the Judicial Commissioner did not clearly identify evidence showing the plaintiff's early knowledge of Jobraj's death.
  2. Crucially, both sides agreed that defendants continued to pay rent to the plaintiff after Jobraj's death in the same manner as before. Fazl Ali, J. considered the legal effect of continued payment and acceptance of rent once the mukarrari had become void.
  3. Although Section 116 of the Transfer of Property Act was relied upon by the plaintiff, the judge observed that it might not strictly apply; nonetheless the principle embodied in that provision and allied equitable considerations were relevant to understanding the legal consequences of acceptance of rent.
  4. The court relied on the Judicial Committee decision reported in 27 Cal 156 to establish that acceptance of rent at the rate provided in a patta or similar instrument, after an original grant for life has expired, cannot confirm the entirety of the earlier document in favour of the taker if the original grant did not permit such continuation. Thus, acceptance of rent does not automatically vest a permanent interest in the taker derived from the void instrument.
  5. The court applied the principle from Woodfall: entering under a void lease results in a tenant-at-will, and payment/acceptance of rent typically creates a tenancy from year to year so far as the terms are consistent with such a tenancy. On the facts here, acceptance of rent created a new tenancy similar to the original except as to duration.
  6. Because a new tenancy (year-to-year) arose by virtue of rent payment and acceptance, the defendants' possession was not adverse in the legal sense required to establish limitation; they were tenants and thus could be resisted by the plaintiff's ejectment suit.
  7. The court distinguished 4 Pat 139 (and its affirmation, 7 Pat 649) because, in that prior decision, the zamindar had intentionally avoided acts that would recognize heirs as tenants (receipts were issued in the name of the original mukarraridar only). That factual posture was not present here, where the plaintiffs treated defendants as tenants through acceptance of rent.
  8. Procedurally, the Munsif had decreed the suit in terms of a compromise for some defendants (11 and 19–22). The Munsif had also found improper service of notice to quit as to the remaining defendants and therefore disallowed khas possession for the 14 annas share held by those defendants, while still declaring the plaintiff owner and that defendants had no right to remain in possession.
  9. Given the full investigation of title during protracted litigation and the uncontested nature of the present appeal in this Court, Fazl Ali, J. concluded that the proper course was to restore the trial Court's decree (subject to the Munsif's service-related limitation), allow the appeal, set aside the lower appellate Court's judgment, and make no order as to costs because no one appeared to contest the appeal in this Court. Dhavle, J. concurred and added that even if S.116 were applicable the authorities (27 Cal 156) justified the outcome, and that 4 Pat 139 is distinguishable.

Holding and Implications

Core Holding: THE APPEAL IS ALLOWED; THE JUDGMENT AND DECREE OF THE LOWER APPELLATE COURT ARE SET ASIDE; THE DECREE OF THE TRIAL COURT IS RESTORED.

Immediate Consequences for the Parties

  • The court held that the defendants' payment of rent and the plaintiff's acceptance created a new tenancy from year to year (subject to the limitation that duration cannot exceed the original grant), so the defendants' possession was not adverse for limitation purposes and the plaintiff is entitled to seek ejectment.
  • The trial Court's decree (as framed by the Munsif) — which included a declaration that the plaintiff was owner and that the defendants had no right to remain in possession — is restored. The Munsif's disallowance of khas possession regarding the 14 annas share (on the ground of improper service of notice to quit) remains unchallenged and therefore is left intact.
  • Some defendants (nos. 11 and 19 to 22) had compromised with the plaintiff; the trial Court decreed in terms of that compromise and those parts of the decree are affirmed by restoration.
  • No order as to costs was made because the appeal was uncontested in this Court.

Broader Legal Implications

The opinion applies established principles (as reflected in 27 Cal 156 and standard treatises) to clarify that acceptance of rent after the expiry of a life-based grant does not automatically confirm the full terms of the prior instrument as creating a permanent interest; rather, it may create a yearly tenancy insofar as the terms are consistent with such a tenancy. The court distinguished earlier authorities on the basis of materially different facts. The opinion does not purport to establish a new legal principle beyond these applications to the facts here.

Disposition: Appeal allowed; lower appellate Court judgment set aside; trial Court decree restored. No costs.

Show all summary ...

Fazl Ali, J.:— This appeal arises out of a suit which was decreed in part by the Additional Subordinate Judge of Hazaribagh but has been dismissed in its entirety by the Judicial Commissioner of Chota Nagpur. The appellants (who are the sons of the original plaintiff and were substituted in his place upon his death during the pendency of this appeal) are admittedly the proprietors of Taluk Jagodih which includes village Phulwaria, the subject matter of the present suit. This village was granted by one Raja Bed Khan by way of khorposh or maintenance to his son Jobraj Khan long ago and in 1864 Jobraj Khan granted a mukarrari in respect of it (subject to the payment of a quit rent) to a certain person whose interest has now passed to the defendants. As the grant of Raja Bed Khan was determinable on the extinction of the male line of the grantee and according to the plaintiff such an event did happen on the death of Jobraj Khan, the plaintiff in the year 1918 sent a notice to the defendants asking them to give up possession of the disputed village. The defendants, however, refused to give up possession and so the plaintiff brought the present suit which has been dismissed by the learned Judicial Commissioner. Now, it seems to have been conceded before the learned Judicial Commissioner that the disputed village was liable to be resumed upon the death of Jobraj Khan and that he had died without male issue about forty years ago. The only material plea that was raised before him was one of limitation and it was dealt with by him in these words:

The final position, therefore, is as follows: (1) Jobraj Khan died 40 years ago, (2) plaintiff became aware of this fact, or can be reasonably expected to have become aware of this fact, shortly afterwards, (3) defendants admittedly continued in possession of the disputed land for 40 years after Jobraj's death without notice from the plaintiff to quit, (4) during this time defendants' possession was that of a trespasser, and not that of a tenant, and (5) therefore defendants have been in adverse possession of the land for more than the statutory period of 12 years with the result that plaintiff is now debarred from ejecting them therefrom under the law.

2. The learned Judicial Commissioner has nob stated clearly what precise evidence there is in the case to show that shortly after Jobraj Khan had died, the plaintiff became aware of his death; but even assuming that he has correctly surmised the position, the inference of law which he draws from the facts before him appears to me to be not correct. The fact which ought to be borne in mind in determining the question of limitation is that according to both parties' case, the defendants have continued to pay rent to the plaintiff since the death of Jobraj Khan in the same manner as they used to pay it to him before his death. It was therefore urged on behalf of the plaintiff before the Judicial Commissioner that the case came within the application of Section 116 of the Transfer of Property Act, and the result of the continued payment of rent by the defendants was that when the lease was determined on the death of Jobraj Khan, a new tenancy was created by reason of the plaintiff accepting rent from the defendants, such a tenancy being in law a tenancy from year to year. The learned Judicial Commissioner held that Section 116 of the Transfer of Property Act, had no application to the case for the reason that the defendants were never in the position of lessees under the plaintiff and he quoted in support of his opinion a passage from the decision of Jwala Prasad, J. in 4 Pat 139.1

3. Now, even though S. 116 may not be directly applicable to this case, we have still to consider the legal effect of the acceptance of rent by the plaintiff after the mukarrari grant by Jobraj Khan to the defendants' predecessors-in-interest became a defunct instrument, because the case of the contesting respondent in the Court below seems to have been that merely by such acceptance of rent all the terms of the mukarrari lease granted by Jobraj Khan to the predecessors-in-interest of the defendants became binding upon the zamindar. I think that the answer to the problem is provided by the decision of the Judicial Committee in 27 Cal 156.2 In that case a zamindar had granted a village to his nephew for maintenance, the grant operating only for life. The grantee survived the grantor and by an ekrarnama acknowledged the succeeding zamindar to be entitled to the village. He had, however, already executed a patta in favour of a third person describing him to be a permanent lessee and the zamindar who succeeded the grantor accepted rent from him at the rate stipulated in the patta and did not disturb his possession for some time after the death of the original grantor. Nevertheless when the zamindar subsequently claimed the village as part of the inherited zamindari, it was held: (1) that the original grant not having extended to more than the life of the grantee, the patta was void as against the successor in title of the grantor; and (2) that the acceptance of rent at the rate provided in the patta could not have the effect of confirming the document in its entirety. Now, the decision of the Judicial Committee appears to me to cover fully the points raised in the present case. It is clear that the duration of the mukarrari granted by Jobraj Khan could not exceed that of the original grant and from the mere fact that the plaintiff continued to accept rent from the defendants, it cannot be inferred that he confirmed all the terms of the mukarrari in favour of the defendants. The law on the subject has been stated in Woodfall's Law of Landlord and Tenant in these words:

If a man enters upon a void lease, he is not a disseisor but a tenant-at-will under the terms of the lease in all other respects except the duration of time; and when he pays or agrees to pay any of the rent therein expressed to be reserved, he becomes a tenant from year to year upon the terms of the void lease so far as they are applicable to and not inconsistent with a yearly tenancy.

4. Thus the effect in law of the payment of rent by the defendants to the plaintiff and its acceptance by the latter was that a new tenancy which was similar in all other respects to the original tenancy of the defendants under Jobraj Khan except as to the duration of time was created and the defendants became tenants from year to year under him. If this view is correct, the mere fact that the plaintiff did not take any steps to eject the defendants at any earlier date after the death of Jobraj Khan does not make their possession adverse to him or entitle them to resist his suit for ejectment. The learned Judicial Commissioner has based his decision on 4 Pat 139 which if held to be applicable to the present case would have concluded the matter, because that decision has been affirmed by the Judicial Committee of the Privy Council: see, 7 Pat 649.3 But the distinguising feature of that case is that no new tenancy had been brought into existence in that case inasmuch as the zamindar used to grant receipts only in the marfatdari form, that is to say, in the name of the original mukarraridar and not in the name of the persons who held the lands after the mukarrari had become void by the death of the original grantor. This aspect of the case was particularly emphasised by the Judicial Committee as will appear from their following observations:

In their Lordships' opinion this appeal must be decided upon the special facts of the case which go to show, as already stated, that after the lease for lives expired, the plaintiff's predecessor in title did not recognize the heirs of the mukarraridars as tenants. He was aware of the position taken up by the heirs of the original mukarraridars and the permanent right which they claimed and which they were desirous of establishing, and he was at pains not to do anything which might be taken to recognize that liability. The parties were really at arms length. The original lessees were asserting their permanent interest with a liability to pay a rent, a right which the Maharaja refused to recognize, but which they continued to assert consistently…. It is argued that the principle contained in the provisions of Section 116 of the Transfer of Property Act, 1882, should be applied, for although it could not be said that this case came expressly within the provisions of the section, it was argued that the provisions thereof should be used by way of analogy as laying down a rule of equity and good conscience. In their Lordships' opinion there is not a case of lessee or under-lessee holding over within the meaning of the section, but even if the case were to be considered on the assumption that the provisions of the section were applicable, the facts of this case would go to show, as already stated, that the parties in paying and accepting rent after the expiration of the lease for lives were acting without prejudice to their respective contentions, and it would have to be held that there was an agreement to the contrary which would prevent the application of the provisions of the section in the present case.

5. These observations cannot apply to the present case, because here the plaintiffs by accepting rent from the defendants have treated them as their tenants and beyond the payment of rent there is nothing in the present case to show that the defendants ever asserted their permanent interest in the land after the death of Jobraj Khan. There can therefore be no doubt that the plaintiffs is entitled to eject the defendants and the only question is whether a decree for ejectment can be passed in this suit.

6. It may be stated here that when the case was before the Munsif, defendants 11 and 19 to 22 entered into a compromise with the plaintiff and he rightly decreed the suit in terms of the compromise. The Munsif however found that there was no proper service of notice to quit on the defendants and so he disallowed the plaintiff's claim for khas possession in respect of the 14 annas share in the disputed village which belonged to the defendants other than defendants 11 and 19 to 22, but he passed a decree declaring that the plaintiff was the owner of the village in question and the defendants had no right to remain in possession thereof. As the finding of the trial Court as regards the service of notice has not been challenged before us, the proper order to be passed in this appeal seems to be to restore the decree of the trial Court. It is true that ordinarily a Court would not grant a merely declaratory relief when the consequential relief claimed by the plaintiff can not be granted. In the present case however the title of the parties having been fully investigated in the course of this somewhat prolonged litigation, I am inclined to think that the plaintiff ought to get a decree in the terms in which the Munsif had granted it to him. I would therefore allow the appeal, set aside the judgment and decree of the lower appellate Court and restore the decree of the trial Court. As no one appears in this Court to contest the appeal, there will be no order for costs.

Dhavle, J.:— I agree. If the principle of Section 116 of the Transfer of Property Act, were to be applicable to this case, it would have been open to the plaintiff to show that there was no tenancy, because he accepted the rent in ignorance of the fact that the tenancy had terminated. The lower appellate Court has apparently found on mere surmise that the plaintiff became aware of Jobraj Khan's death and the consequent termination of the khorposh grant shortly after that event; but even if this finding had been based on evidence, the decision relied on by the learned Munsif—27 Cal 156 — makes it clear that the continued acceptance of rent from the defendants could not, in the circumstances of the case, give them the permanent interest claimed by them; and as my learned brother has shown, the decision in 4 Pat 139 is distinguishable on the facts.

S.C/R.K

7. Appeal allowed.