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Sankarachari Swamiar v. Varada Pallai

Madras High Court
Aug 14, 1903
Smart Summary (Beta)

Structured Summary of the Court Opinion

Factual and Procedural Background

The suit was brought by the petitioner (a landlord) against the defendant (his tenant) for recovery of rent for the fasli year 1310. Before suit, a patta (a written tenancy document) had been tendered by the landlord but was not accepted by the tenant. At trial the defendant contended that certain terms in the patta justified his refusal to accept it, and the District Munsif agreed with the defendant and dismissed the suit. The petitioner denied that the terms were objectionable and further contended that, even if objectionable, the tenant was estopped from raising that objection because pattas containing precisely similar terms had been accepted in respect of the same holding for a series of years. The District Munsif did not take any evidence on the truth of those allegations and held that, even assuming them true, they would not support a plea of estoppel.

Legal Issues Presented

  1. Whether prior acceptance by the tenant of pattas containing the same terms for a series of years can operate as an estoppel by conduct, precluding the tenant from subsequently refusing a patta on the same grounds.
  2. Whether the specific clauses objected to in the patta are invalid or unenforceable: (a) the clause fixing tirvajasti payment when wet cultivation is raised with Sircar water; (b) the clause treating customary village fees (marais) as recoverable with interest by summary process; and (c) the clause permitting the landlord to prevent removal of produce unless rent is paid and a receipt obtained.
  3. Whether the District Munsif was correct in dismissing the suit without taking evidence on the allegations supporting the plea of estoppel.

Arguments of the Parties

Petitioner's (Landlord) Arguments

  • The terms of the patta were not objectionable and were capable of being valid contractual terms.
  • Even if some terms might be objectionable, the defendant is estopped from raising those objections because pattas containing precisely similar terms had been accepted for a series of years in respect of the same holding — conduct amounting to a representation that the pattas were proper.

Respondent's (Tenant) Arguments

  • The tenant refused to accept the patta on the ground that certain terms in it entitled him to do so (i.e., the terms were objectionable and made the patta improper).
  • Implicitly, the District Munsif accepted that those terms were open to objection and were a proper basis for refusal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sattappa Pillai v. Raman Chetti That it is proper in a patta to define terms with reference to contingencies which may arise in the relevant fasli year; such contingent provisions can be valid. Used to support the conclusion that the contested clause about paying tirvajasti on wet cultivation with Sircar water is not void for indefiniteness and is a proper contingent provision in a patta.
Nagalinga Thavan v. R.G. Orr Authority from multiple decisions in the Sivaganga Zamindari holding that provisions fixing rates on contingency (e.g., failure to raise paddy) are proper. Relied upon to confirm that a clause fixing payment on a contingency would be treated as valid.
Ramasami v. Rajagopala A decision in suits under section 9 of the Rent Recovery Act relevant to how courts determine rates when not settled by contract. Distinguished: the Court explained that decisions in section 9 suits (and section 8) give the court greater latitude than disputes about terms in an accepted contract (patta).
Ramanjulu v. Ramachandra Similar footing as Ramasami v. Rajagopala (suits under section 9 of the Act). Also distinguished for the same reasons — the distinction between judicial determination under section 8/9 and contractual terms in an accepted patta.
Collector of North Arcot v. Nagi Reddi Interpreted section 52 of the Revenue Recovery Act as including village accountants within the provision for summary recovery of emoluments due to village servants. Applied to support the view that customary village fees (marais) payable with rent are recoverable by summary process and that the legislature intended such fees to be treated with rent for recovery purposes.
Bhupathi v. Raja Rangayya Appa Rau Case mentioned by the court; the opinion states it has no bearing on the present questions. The court found it inapplicable and did not rely on it in its reasoning.
Siriparapu Ramaanna v. Mallikarjana Prasada Nayudu Decided that payment over a series of years of certain voluntary fees (temple fees) did not amount to an implied contract to pay them. Noted as limited in relevance; the court observed that neither this case nor Bhupathi involved a plea of estoppel such as raised in the present suit, and thus they did not preclude the estoppel plea here.
Govinda Setti v. Sreenevasa Row Sahib Described in the opinion as a clear and direct authority supporting the petitioner's contention on the point under discussion. Relied upon to bolster the petitioner's position (the opinion states it is a clear authority in his favour).

Court's Reasoning and Analysis

The Court scrutinized two distinct aspects: (A) whether the tenant was estopped from objecting to the patta terms by previous conduct, and (B) whether the specific contested terms in the patta were void or unenforceable.

A. Estoppel by Conduct

  • The Court explained the principle: if, prior to the year in question, the tenant had in express terms represented (or by repeated conduct had represented) that pattas containing the contested terms were to be taken as proper and that the landlord might act on that footing, the tenant would be precluded from later impugning similar pattas tendered subsequently.
  • This preclusion would stand unless the tenant withdrew his previous representation by communicating his objection to the landlord in time for the landlord to obtain an adjudication under section 9 of the Rent Recovery Act and thereby compel acceptance of a different patta for the relevant year.
  • The Court held that acceptance of a patta by the tenant — particularly if repeated year after year — constitutes a representation by conduct that the patta may be taken as proper, and that such conduct has the same effect as an express statement.
  • The District Munsif's view that any representation was merely a matter of the tenant's belief in his mind was rejected: the Court analyzed the situation as one of objective representation by conduct (taking the patta without demur) rather than a subjective state of mind.
  • The Court emphasized that whether the tenant actually believed the term to be proper is beside the point where the tenant's outward conduct (acceptance of the patta) communicates assent — the representation relates to a fact (the propriety of the patta) not merely belief.

B. Validity of the Specific Clauses

The Court addressed each main objection raised to clauses in the patta and applied statutory references and precedents to determine whether they were necessarily illegal or unenforceable.

  • Clause about tirvajasti for wet cultivation with Sircar water:

    District Munsif held it invalid for indefiniteness; the Court disagreed.

    The Court relied on Sattappa Pillai v. Raman Chetti and related authorities to explain that pattas may validly define terms with reference to contingencies that may arise in a given fasli year. Because the landlord could not predict in advance the precise lands or whether wet cultivation using landlord-supplied water would occur, a clause fixing payment by reference to neighbouring nanjah rates or average yields is a permissible contingent provision. The Court emphasized the proper test for contractual uncertainty is whether the term is capable of being made certain; by that test the clause would not be void.

  • Clause treating customary village fees (marais) as recoverable with interest by summary process:

    District Munsif held these fees not recoverable summarily and interest not chargeable; the Court disagreed.

    The Court observed the immemorial custom where such fees are paid out of produce and often collected by the landlord. Section 4 of the Rent Recovery Act requires a patta to mention rent "including any fees or charges payable with it according to established usage," which the Court read as indicating that such fees are to be treated, for recovery purposes, as part of the rent. The Court further noted section 52 of the Revenue Recovery Act, and the Collector of North Arcot v. Nagi Reddi decision, as demonstrating legislative policy favouring summary recovery of emoluments due to village servants, supporting recoverability and the charge of interest.

  • Clause permitting landlord to prevent removal of produce unless rent is paid and a receipt obtained:

    District Munsif would not have upheld such a clause in a section 9 suit in the absence of contract; the Court held a tenant may contract to be bound by such a term.

    The Court referred to section 82 of the Rent Recovery Act to indicate that such a contractual provision would not be opposed to law, and therefore is not inherently invalid if agreed to by the tenant.

C. Procedural and Evidentiary Point

The Court criticized the District Munsif's failure to take evidence on the factual allegations that pattas containing similar terms had been accepted for a series of years. The majority opinion held the District Munsif's conclusion that, even if the allegations were true, they could not support estoppel was unsustainable. Justice Boddam (concurring) expressed that he was not prepared to hold the allegations incapable of supporting an estoppel by conduct but considered it unclear whether they were sufficient without evidence proving that the plaintiff's position had been altered in consequence of the alleged conduct. Both judges agreed that evidence should be taken and that dismissal without receiving evidence was wrong.

Holding and Implications

Holding: The Court set aside the decree of the District Munsif and remanded the case for disposal with reference to the plea of estoppel and the other questions arising in the case. Both judges directed that evidence be taken on the factual allegations relevant to estoppel and other contested issues. The costs of the petition were ordered to abide the result (and to follow the event in Justice Boddam's concurrence).

Implications:

  • Direct effect on the parties: The District Munsif's dismissal of the suit is vacated; the matter is remitted for further proceedings including the taking of evidence on the estoppel allegation and determination of the other contested questions.
  • The Court's opinion explains and applies existing authorities and statutory provisions to the facts; it does not announce a new legal rule beyond those applications. The decision requires factual finding (by evidence) on whether prior conduct amounted to an estoppel and, if proved, the consequent legal effect in this dispute.

If any specific detail (e.g., party addresses, lower court file numbers, or further arguments) was expected but is not included above, it is because the provided opinion did not contain that information.

Show all summary ...

The Judgment of the Court was delivered by

Subrahmania Ayyar, J.:— In this case the suit was brought by the petitioner, a landlord, against the defendant, his tenant, for the recovery of rent of the fasli year 1310. Before suit a patta had been tendered, but was not accepted. At the trial, the defendant urged that certain terms in the patta (to be referred to and considered later on), were such as to entitle him to refuse to accept the patta. The District Munsif agreed with the contention and dismissed the suit.

The petitioner, whilst denying that the terms of the patta referred to were open to such objection, contended that even if they were, the defendant was estopped from raising any such question in the present suit inasmuch as pattas containing precisely similar terms had keen accepted for a series of years in respect of the same holding.

Without taking any evidence as to the truth of the allegations on which this contention was based, the District Munsif held that, even assuming the allegations to be true, they could not support a plea of estoppel. Is this conclusion sustainable? Now there can be no doubt that if previous to the year to the rent of which the suit relates, the tenant had in express terms told the landlord that pattas containing terms objected to were to be taken as proper pattas and that the landlord might act on that footing the tenant would be precluded from impugning similar pattas tendered subsequently unless and until he had withdrawn his previous representation by communicating to the landlord that he objected, to the terms in question, in circumstances permitting the latter suing the former in time to obtain an adjudication under section 9 of the Rent Recovery Act as to the terms of a proper patta and to compel the acceptance of such a patta for the year in respect of which the tender was duly made.

It follows that, if the allegations on behalf of the petitioner about the acceptance for a series of years of precisely similar pattas be true, that constituted a representation by conduct that the landlord might proceed on the footing that the pattas were proper ones which, of course, would have the game effect as a representation in so many words.

It is in the interests, of the tenant, that, the, law imposes on the landlord the duty of tendering a patta setting forth the various matters referred to in section 4 of the Rent Recovery Act. It being open to the tenant to refuse to take any patta containing terms not considered by him proper, no other conclusion is possible when, the patta is accepted than that, the tenant asserts by implication that the patta is or may be taken to be, a proper one, especially when this conduct is repeated from year to year.

The District Munsif thought that, the representation, if any, in cases like this relates only, to a matter of belief in the tenant's mind. Now take the case of a tenant, who, though fully aware that a particular term in a patta is open, to objection, nevertheless, for reasons of his own, takes the patta without demur. In such a case is not the representation in respect of what by itself is no other than a fact, viz., the propriety of the patta, irrespective of the belief one way or, the other of the tenant as to that matter? In other words, the case may virtually he taken, to stand thus;—The landlord asks the tenant “may, I take, this patta to be correct.” The tenant replies in the affirmative. What question of belief or opinion arises here? In my view none.

It has now to be observed that there is nothing in the nature of any of the terms in question to preclude the application of the doctrine of estoppel to the case, if the plaintiff substantiates his allegations, for, as will be shown at once none of them is necessarily illegal, but they are one and all such as the tenant may have assented to so as by such assent to have made a pata containing them a valid contract between himself and his landlord.

Turning now to the items objected to, the first runs as follows: “If you raise punjah cultivation on punjah land with Sircar water you shall pay therefor tirvajasti according to the tirva of neighbouring nunjah land.” This was held by the District Munsif to be had for indefiniteness; but I cannot agree. In Sattappa Pillai v. Raman Chetti(1) it is pointed out (at page 7) that it is proper to define in a patta the terms of the tenancy with reference to a possible contingency which may arise in the course of the fasli for which the patta is tendered. The case contemplated by the term under consideration is such a contingency. The landlord could not know beforehand whether the tenant would in the particular year raise wet crops on dry land with the aid of water supplied by the landlord or what specific lands would be used for the purpose. In such circumstances how can the landlord be expected to say more than that on the contingency happening nunjah rates would have to be paid? That, had the landlord contented himself with simply saying so, such provision in the patta would be held valid, is clear from the case just referred to, and a provision in those terms would, I think, be understood as referring to rates payable on neighbouring lands which would ordinarily be of similar quality. How then can the express mention of what otherwise would be implied make any real difference P. If it does, one would think that the clause was thereby rendered more definite rather than the contrary. It may not here be out of place to say that the phraseology of the clause in question is substantially what the Legislature itself adopts as a proper criterion for the determination of the rate of rent in certain circumstances (see Rule III in Section 11 of the Rent Recovery Act). My conclusion on this point is confirmed by the decisions in the numerous cases which came up to this Court from the Sivaganga Zamindari in regard to a provision in pattas tendered by the landlord but refused by the tenants, to the effect that on failure of the tenant to raise paddy crop on wet land, be should pay half varam calculated on the average yield of such nanjah lands in the village or on the average yield of adjoining lands. This was held to be a proper provision [see Nagalinga Thavan v. R.G Orr.]. The decision in Ramasami v. Rajagopala(2) on which the learned pleader for the respondent laid stress was in suits under section 9 of the Rent Recovery Act; and Ramanjulu v. Ramachandra(3) stands on the same footing. There can be little doubt that there is a material distinction between the power of the Court in dealing with questions raised in a suit under section 8 or 9 of the Act not settled by contract or specifically provided for by law and its power when dealing with a litigation arising out of a contract constituted by an accepted patta. In the former case the law gives to the Court greater latitude than in the latter. In the one the Court has to decide the question with reference to its view of what is fair and proper in all the circumstances, while in the other the Court has only to decide whether the terms are obnoxious to the general law of contract and consequently altogether unenforceable. And it is scarcely necessary to say that in determining objections founded on the alleged uncertainty of a term in a contract, the test to be applied would be not whether the term is in itself certain but whether it is capable of being made certain. Id cerium est quod reddi cerium potest.

Judged by that test it is impossible to hold that such a term as that under consideration occurring in a completed contract would be void for uncertainty.

The next objection relates to the provision in the patta that the customary fees or marais payable by the tenant along with the rent, in connection with the services of the village accountant and certain other public servants of the village, would also be summarily proceeded for and charged with interest if in arrear. The District Munsif held that these fees were not recoverable by summary process and that interest could not be charged thereon and that therefore this clause in the patta was improper.

I disagree with him here also. According to the immemorial custom of the country, these fees are generally payable out of the produce of the laud, and in the majority of cases, it is the landlord that has to collect and pay them over to the servants concerned. Though not rent in the sense in which he could appropriate them himself yet in so far as their recovery is concerned, that they are to be treated as part of the rent is clear from section 4 of the Act which provides for the mention in the patta of the amount and nature of the rent “including any fees or charges payable with it according to established usage.” Were the fees to be taken as absolutely distinct from the rent the expression “including” would not have been used, and it is impossible to believe that the Legislature, while compelling the landlords to make the patta comprehend such fees, intended to disable him from recovering them by the process admittedly applicable to rent proper or to preclude him from charging interest at the same rate on both. It is hardly necessary to add that the inconvenience which would arise from such a construction, of the Act, would be grave and manifest. Section 52 of the Revenue Recovery Act, which provides for the recovery by summary process of emoluments due to village servants, indicates that the policy of the Legislature is in the direction of facilitating the collection of fees like those under consideration otherwise than by suits [see Collector of North Arcot v. Nagi Reddi] where it was held that an accountant even in a permanently-settled zamindari village came within the provision.

The last clause objected to refers to the tenant removing the produce after paying the rent and obtaining a receipt. It must be admitted that if the question were whether in a suit under section 9 this provision would be upheld in the absence of a contract the answer would be in the negative. But there is nothing to prevent a tenant contracting to be bound by such a provision. Section 82 of the Rent Recovery Act, referred to on behalf of the petitioner, is enough to show that such a contract would not be opposed to law.

The two cases cited, Bhupathi v. Raja Rangayya Appa Rau and Siriparapu Ramaanna v. Mallikarjana Prasada Nayudu may now be referred to. The former seems to have no bearing on the present question. The latter, in so far as it was relied on as being relevant here, decided only that a payment for a series of years of certain fees which in their nature were voluntary (certain temple fees), could not warrant the conclusion that there was an implied contract to pay them. In neither of the cases was any plea of estoppel such as that advanced here raised and it is difficult to see how such a plea could have been allowed to be raised in the suits, governed, as they were, by section 10 of the Rent Recovery Act, according to which the Court has to decide what the terms of the patta should be. On the other hand, Govinda Setti v. Sreenevasa Row Sahib(4), to which our attention was drawn on behalf of the petitioner, is a clear and direct authority in favour of his contention on the point.

The conclusion of the District Munsif on, the question of estoppel, therefore, is, in my opinion, unsustainable.

I would set aside the decree of the District Munsif and remand the case for disposal with reference to the plea of estoppel in the light of the observations made above and with reference to the other questions arising in the case.

The costs of this petition will abide the result.

Boddam, J.:— I am not prepared to hold that the allegations made on behalf of the plaintiff are incapable of supporting a sale of estoppel by conduct on the part of the defendant but lam not by any means clear that they are sufficient to constitute such an estoppel, unless upon evidence being taken it is proved that the plaintiff's position has been altered in consequence of the alleged conduct if the defendant upon which the estoppel is based. I think therefore that evidence should be taken and the exact facts established before the case is disposed of and I agree that, the District Munsif was wrong, in the circumstances, to dismiss the suit without taking any evidence that might be tendered on either side.

As regards the objections to the patta I agree in the Observations of Sir Subrahmania Ayyar.

I would set a side the decree of the District Munsif and remand the case for disposal according to law. The costs of this petition will abide and follow the event.