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Rekhabchand Doogar v. J.R D'Cruz
Factual and Procedural Background
This is a suit for possession and damages brought by the Plaintiff to eject the Defendant from certain rooms at the Plaintiff's premises at No. 39 Lower Circular Road. The Defendant was a monthly tenant; the plaint alleged a monthly rent of Rs. 90. On 30 November 1920 the Plaintiff, through his attorney, served one month's notice to quit effective 31 December 1920. The Defendant did not vacate and the Plaintiff instituted this suit.
The Defendant pleaded entitlement to relief under the Calcutta Rent Act. The case is one of four related suits between the same parties with similar relations; the other three suits failed because the tenants there had not complied with procedural requirements of the Rent Act. In this suit four issues were framed and tried (see Legal Issues Presented below).
Material factual history before the court included that the Defendant had been in possession since June 1916; around September 1919 the Plaintiff attempted to let the whole house (No. 39) to a single tenant (Macfarlane & Co.) but negotiations failed; the Plaintiff subsequently entered into negotiations with the Government of Bengal for use as a Survey office but those arrangements were cancelled in August 1920 because vacant possession could not be given. In October 1920 the Plaintiff made arrangements to let parts of his then residence No. 37 Canning Street to mercantile firms (including Messrs E. D. Cooper & Co. and a Hume pipe company) with possession to be given in part from 15 October and more generally promised from 1 January. The Plaintiff later served the 30 November 1920 notice to quit for No. 39 Lower Circular Road.
There was also evidence that the Plaintiff's wife gave birth in mid-September 1920 and subsequently suffered fever and other ailments; a doctor (Dr. Banerjee) testified that on medical grounds the family were advised to move to premises affording more light and air, and that he had approved inspection of the Circular Road house. The notice to quit, however, did not mention the wife's health; it stated that the Plaintiff required No. 39 for his own use because he had arranged to let out his residence at No. 37 Canning Street and wished to remove to No. 39 on 1 January 1921.
Legal Issues Presented
- Does the Plaintiff bona fide require the premises for his own occupation?
- Has the Defendant paid the rent due by him to the fullest extent allowable by the Calcutta Rent Act by the 15th day of the month next following that for which the rent was payable in accordance with the provisions of sec. 11, sub-sec. 5?
- Has the Plaintiff refused to accept the rent offered, and has the Defendant duly deposited it with the Rent Controller under sec. 11, sub-sec. 4?
- Is the Defendant entitled to relief under the Calcutta Rent Act?
Arguments of the Parties
Plaintiff's Arguments
- The Plaintiff asserted that he bona fide required the premises at No. 39 Lower Circular Road for his own use and occupation, as stated in the notice to quit: "My client requires the said premises No. 39 Lower Circular Road for his own use and occupation inasmuch as he has made arrangements for letting out his present residence No. 37 Canning Street and wants to remove to his said premises No. 39 Lower Circular Road in Calcutta on the 1st day of January 1921."
- Evidence was led that the Plaintiff had negotiated lettings of substantial parts of his residence at No. 37 Canning Street to commercial firms (e.g., Messrs E. D. Cooper & Co., and the Hume pipe Company) and had promised possession to such firms, indicating intent to move into No. 39.
- The Plaintiff relied (implicitly) on arrangements made with third parties (lettings at No. 37) and the family's circumstances as grounding his stated requirement for No. 39.
Defendant's Arguments
- The Defendant pleaded entitlement to statutory relief under the Calcutta Rent Act and relied on compliance with the Act's provisions.
- As to rent payment, the Defendant contended that for February–May 1920 he had paid by cheque; when rent was not accepted he duly paid into the Rent Controller. The Defendant argued it was unreasonable to require a tenant to repeat a formal offer-and-refusal each month when the landlord persistently refused to accept rent, and that the tenant was justified in paying the Controller month by month after an initial refusal.
- There was disagreement about the proper amount of rent: the plaint alleged Rs. 90 per month; the Plaintiff allegedly demanded Rs. 150 in May 1920; the Defendant offered three months' rent at Rs. 110 (alleged to be the standard rent). The Defendant had, at times, paid Rs. 115 (December 1919 and January 1920) and had paid Rs. 110 to the Rent Controller to ensure compliance with the Rent Act provisions concerning standard rent.
- At a late stage the Defendant (through counsel) sought to amend pleadings regarding the rent figure; the Defendant's counsel was willing to accept a merely formal amendment but opposed one that would materially alter issues at a late stage.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court proceeded by focussing primarily on the first issue — whether the Plaintiff bona fide required the premises for his own occupation — because, under the Calcutta Rent Act, compliance by the tenant with statutory requirements will not entitle the tenant to remain if the landlord bona fide requires the premises for specified purposes (including his own occupation).
On the first issue the judge analyzed the timing and content of the Plaintiff's conduct and evidence:
- The court noted that up to early August 1920 the Plaintiff's objective had been to let the whole house (No. 39) to a single tenant (first Macfarlane & Co., later negotiations with the Government), and that arrangements with Macfarlane & Co. and with the Government fell through because vacant possession could not be given.
- The court observed friction between the landlord and tenants, including complaints about water supply and private criminal proceedings that were subsequently dropped, which provided context for the landlord's conduct.
- The court highlighted that the notice to quit (30 November 1920) did not rely on the wife's health as the ground for needing No. 39; it stated only that the Plaintiff had made arrangements to let No. 37 and therefore wished to move to No. 39 on 1 January 1921.
- The judge found that the Plaintiff's account of requiring the premises for his wife's health was only advanced later and that the evidence as to timing of the medical advice was imprecise (the doctor could not fix the exact date, only that it was two or three months after the child's birth).
- The court accepted that the Plaintiff had entered into lettings of substantial portions of No. 37 to commercial firms (Cooper & Co. and Hume pipe Company), thereby depriving himself, by his own arrangements, of accommodation he previously used.
- On the legal meaning of the statutory word "require" in the Act, the judge held that "require" involves more than a mere desire; it implies some element of need. The judge therefore would not accept that a landlord could create a situation of "requirement" by voluntarily depriving himself of premises sufficient for his needs (for example, by letting out parts of his residence for profit) and then claim bona fide requirement as a pretext to evict tenants.
- Applying these observations, the court concluded that the Plaintiff did not bona fide require the premises for his own occupation; the court expressed scepticism as to the genuineness of the Plaintiff's stated grounds and concluded the Plaintiff had "strained the circumstances in his own favour" though not necessarily wilfully dishonest.
On the rent-related issues (issues 2 and 3), the court reasoned as follows:
- The Defendant had paid rent by cheque for some months (February–May 1920). When the Plaintiff would not accept the rent the Defendant deposited rent with the Rent Controller. The court held that where a landlord refuses to accept rent, the tenant is not required by the Act to go through the ritualistic formal offer-and-refusal each month; once it is established that the landlord will not accept, the tenant is justified in paying the Rent Controller month by month.
- The court considered a late application to amend the plaint to change the pleaded rent figure. The plaint alleged Rs. 90 per month; the Defendant had in evidence referred to payments of Rs. 115 at times and to offers at Rs. 110. The court refused the amendment because it was sought at a very late stage and would not be merely formal but would introduce a new substantive ground intended to defeat the Rent Act plea.
- On the evidence the court found no agreement between the parties that the rent had been varied above Rs. 90 per month. The defendant had nevertheless paid Rs. 110 to the Controller to be on the safe side with respect to standard rent provisions of the Calcutta Rent Act, but that did not prove an agreement to a higher rent.
- The court therefore found that the Plaintiff refused to accept the rent offered and that the Defendant had duly deposited the rent with the Rent Controller under sec. 11(4). Given this finding, the court held that the second issue concerning sec. 11(5) did not arise for decision.
On the basis of the findings above, the court concluded that the Defendant was entitled to relief under the Calcutta Rent Act.
Holding and Implications
Holding: The suit is dismissed and the Defendant is entitled to relief under the Calcutta Rent Act; the Plaintiff's claim for possession is rejected.
Direct consequences and orders made by the court (as stated in the opinion):
- The suit was dismissed with costs on Scale No. 2.
- The court found that the Plaintiff did not bona fide require the premises for his own occupation and therefore the statutory defence under the Calcutta Rent Act succeeded for the Defendant.
- The court found that the Plaintiff had refused to accept rent and that the Defendant had duly deposited rent with the Rent Controller under sec. 11(4) of the Calcutta Rent Act; accordingly, the procedural question under sec. 11(5) did not arise.
- The evidence recorded in a related suit against Mrs. Mendies (No. 274 of 1921) was to be treated as taken in this suit, and costs would be taxed accordingly.
Broader implications: The opinion discusses the proper construction of "require" in the context of the Calcutta Rent Act and cautions against allowing landlords to manufacture a requisite "need" by voluntarily depriving themselves of accommodation for convenience or profit. The judgment does not claim to establish a novel legal precedent beyond the application of the statute to the facts, and no authoritative cases were cited in the opinion.
The Judgment of the Court was as follows:—
Buckland, J.:— This is a suit to eject the Defendant from certain rooms in the Plaintiff's house and premises No. 39 Lower Circular Road, and also for damages.
The Defendant was a monthly tenant under the Plaintiff, the rent alleged in the plaint as payable being Rs. 90 a month. On the 30th November 1920 the Plaintiff through his attorney gave the Defendant one month's notice to quit, that is to say, on the 31st December 1920. The Defendant did not quit the premises and the Plaintiff has therefore brought this suit.
This is one of four suits all standing on the same footing, in which the relations between the parties were the same, but the other three have failed because the parties have unsuccessfully pleaded the Rent Act, as they had not complied with the provisions with which they had to comply before they were entitled to the benefit of the Act. In this case also the. Defendant has pleaded to be entitled to relief by reason of the Calcutta Rent Act, and the following issues were settled:
1. Does the Plaintiff bona fide require the premises for his own occupation.?
2. Has the Defendant paid the rent due by him to the fullest extent allowable by the Calcutta Rent Act by the 15th day of the month next following that for which the rent was payable in accordance with the provisions of sec. 11, sub-sec. 5?
3. Has the Plaintiff refused to accept the rent offered, and has the Defendant duly deposited it with the Rent Controller under sec. 11, sub-sec. 4?
4. Is the Defendant entitled to relief under the Calcutta Rent Act?
The real controversy in this case has centred on the first issue, for, under the Calcutta Rent Act, assuming that a tenant complies with those provisions to which reference is made in the other issues, a tenant is not entitled to the benefit of the Act where the premises are bona fide required; by the landlord either for purposes of building or re-building or for his own occupation. In this case the Plaintiff says that he requires the premises for his own occupation, and in order to support that he has made a statement in his notice to quit where he says through his attorney:
“My client requires the said premises No. 39 Lower Circular Road for his own use and occupation inasmuch as he has made arrangements for letting out his present residence No. 37 Canning Street and wants to remove to his said premises No. 39 Lower Circular Road in Calcutta on the 1st day of January 1921.”
What is the Plaintiff's evidence as to this? He says that the Defendant has been in possession of the premises since June 1916, and in or about September 1919 he gave notice to all the tenants in the, house because he says he wanted to let out the whole house on a lease to Macfarlane & Co. The tenants did not quit and his negotiations with Macfarlane & Co. fell through. After that lie entered into negotiations with the Government of Bengal. He wanted to give the whole house to one man, and the Government wanted it for a Survey office and negotiations ensued. Thereupon he again gave notice to quit to the tenants but they paid no attention to that either. In the end in the month of August the arrangements with the Government had to be cancelled as vacant possession could not be given. But meantime there had been friction between the landlord and his tenants in this house, which, I should explain, is divided into some six or seven flats, because he was trying to get rid of them and also because they made complaints with reference to the water supply. It appears that the friction reached such a stage that the parties found their way into the criminal Courts, but the proceedings were eventually dropped.
It is obvious that up to the beginning of August 1920 there was no question whatever of the Plaintiff desiring to eject the tenants because he required the house for his own occupation, and his evidence makes that clear beyond all doubt. Then he says that in the middle of September 1920 his wife gave birth to a child and that thereafter she suffered from fever for which she was attended by a Dr. Banerjee, who has been called as a witness in the case, and that owing to the insanitary conditions due to the presence of a hide godown at the back of the house in Canning Street where the Plaintiff resided, and smell, and the fact that the locality was ill-ventilated, the doctor advised him to go where they could get more light and air. The Plaintiff showed him the house in Circular Road of which the doctor approved. When exactly that took place is not clear. The doctor himself said be could not give the exact time but that it happened two or three months after the Plaintiff's child was born. The doctor says that the Plaintiff's wife suffered from malarial fever and uterine trouble, and that therefore he gave the advice that the Plaintiff should remove.
It has to be observed that is not the reason alleged or even remotely suggested by the Plaintiff in his notice to quit given on the 30th November. The reason there given is that he required the house for his own use and occupation, inasmuch as he had made arrangement for letting out his then residence No. 37, Canning Street and therefore wished to remove. The evidence as to this is that on or about the 12th October 1920 the Plaintiff made an arrangement with Messrs E.D Cooper & Co., of which firm Mr. Cooper has been called, whereby the Plaintiff let out to Messrs Cooper & Co., the whole of the first floor in No. 37, Canning Street at Eg. 1/250 per month. Possession was promised on the 1st January. But mean while the arrangement was that possession would be given of the front large hall and the adjoining rooms and the verandah as from the 15th October for which a charge of Rs. 650 per month would be made until the whole flat was available. At or about the same time the Plaintiff also let a portion of the premises to some other company which has been referred to as the Hume pipe Company. So the position was that he was depriving himself of a considerable portion of the space in his own house in No. 37, Canning Street where he had lived for four years in order to make it over to these mercantile firms or companies.
These are the circumstances with which I have to deal. I find considerable difficulty in appreciating in the Plaintiff's favour the complete change of front from August to the time when the notice to quit was given. I cannot in my mind dissociate what occurred up to August when the Plaintiff wanted to let out the house in No. 39, Lower Circular Road to one tenant from what occurred later. When the notice to quit was given no reference was given to the personal aspect of the matter, but it was based entirely upon the arrangements made with these other tenants for No. 37, Canning Street. It seems to me that the Plaintiff has here based his requirement of the premises in suit on the ground of his wife's health because he feels that the other grounds would not be sufficient to entitle him to say that he bona fide requires the house for his own occupation which it is necessary that I should find for him to obtain an order for possession. From this point of view I am not at all satisfied as to the bona fides of the Plaintiff. Without asserting that he is deliberately untruthful, he has to my mind strained the circumstances in his own favour to the utmost limit. I do not think it is enough that a Plaintiff in order to defeat a plea under the Calcutta Rent Act should merely say that he desires the premises bona fide for his own occupation. The word in the Act is not “desire” but “require.” This in any opinion involves something more than a mere wish and it involves an element of need, to some extent at least. I am unable to see that there is any need on the part of the Plaintiff. He did not put his wife's health forward as a ground for his requirement until later, and so far as his requirements arose from other circumstances, he put himself in the position in which he found himself by letting out part of his residential house in No. 37, Canning Street to these mercantile firms and companies, as I believe, for the purpose of obtaining a substantial rental. I do not think that I should be right in holding that a landlord who has premises sufficient for his requirements should be allowed to eject tenants because he chooses for his own convenience or profit to deprive himself of the use of the premises which he is occupying, and then to say to his other tenants “having deprived myself of the use of the premises which I have hitherto occupied, I therefore require the house in which you live for my own occupation and 1 now propose to eject you.” This, in my judgment, would be to defeat the objects of the Act and I do not think that in such circumstances a landlord can be said bona fide to require the premises for his own occupation. I therefore find that the Plaintiff does not bona fide require the premises for his own occupation.
With regard to the second issue—Has the Defendant paid the rent in accordance with the provisions of sec. 11(5) of the Calcutta Rent Act, and did the Plaintiff refuse to accept it and was it duly deposited under sec. 11(4)—the Defendant has said that for February, March, April and May 1920 he paid the Plaintiff by cheque, but that the rent was not accepted and thereupon it was paid to the Rent Controller. It has been argued that it is the duty of a tenant to offer rent to his landlord every month and obtain every month a refusal from him before lie is entitled to pay to the Rent Controller. I cannot conceive that it was intended by the Act that such a farce should be gone through every month when the relations are such that the landlord refuses to accept the rent, and I think the tenant is justified in paying the rent to the Controller month by month once there has been a refusal by the landlord to accept it.
It is further submitted that the Defendant has not paid the full amount of the rent. In this connection it is right that I should refer to an application which was made at the very last possible stage, i.e, immediately before learned Counsel for the Defendant was about to sum up. In the plaint it is alleged that the monthly rental was Rs. 90. In the written statement it is stated that in May 1920 the Plaintiff demanded rent at the increased rate of Rs. 150 a month. The Defendant refused to pay it and offered three month's rent at the rate of Rs. 110 a month, which he says was the standard rent. The rent in point of fact has not been standardized and there has been no order by the Rent Controller fixing the standard rent. The Defendant also in the course of his evidence relating to the time when Mac Farlane & Co. were on the scene, said that MacFarlane & Co. wanted Rs. 115 a month, and he offered to pay and actually did pay Rs. 115 in December 1919 and January 1920, after which the Plaintiff would not accept the rent. Upon these materials, and though the Plaintiff himself did not say anything about a variation of the agreement as regards the amount of rent, I was asked to allow the plaint to be amended. But the amendment asked for is not a purely formal matter as it was asked for in order to give a further ground to the Plaintiff to defeat the plea under the Rent Act. Learned Counsel for the Defendant was willing to concede it, had it been merely formal and only related to the question of amount, as the Defendant has in fact been paying Rs. 110 to the Rent Controller, but in the circumstances stated he objected to the figure being altered to Rs. 110; and having regard to the stage at which it was asked for, I refused to allow the amendment to be made. But even so, dealing with the facts as they are, I find no evidence of any agreement between the Plaintiff and the Defendant to pay more than Rs. 90 a month. I have referred to all the items of evidence and statements in the pleadings to which my attention was drawn by learned Counsel for the Plaintiff, and though in fact the Defendant did pay Rs. 110 a month to the Controller, I gather that he did so because he wished to put himself on the safe side having regard to the provisions of the Calcutta Rent Act as to the standard rent, but it does not appear that there was any agreement between the parties that the rent should be more at any time than Rs. 90 a month.
I find that the Plaintiff refused to accept the rent offered and that the Defendant has duly deposited it with the Rent Controller under sec. 11(4).
In these circumstances the second issue with reference to sec. 11(5) of the Calcutta Rent Act does not arise.
The Defendant is entitled to relief under the Calcutta Rent Act, and the result therefore is that this suit will be dismissed with costs on Scale No. 2.
Though the evidence was recorded almost entirely in the suit against Mrs. Mendies (No. 274 of 1921), as directed at the conclusion of my judgment in that suit, it should be treated as having been taken in this suit and costs will be taxed accordingly.
Balm Hari Bhutan Dutt, Solicitor for the Plaintiff.
Mr. Gregory C. Moses, Solicitor for the Defendant.
J.N.R
Suit dismissed with costs.
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