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Smart Summary

Structured Summary of the Opinion (Shearer, J.) — Second Appeal in Ejectment

Factual and Procedural Background

This is a second appeal by the defendant arising from a suit in ejectment. The defendant had been a monthly tenant of a house in the town of Muzaffarpur for about fifteen years. On 7 July 1942 a notice to quit was served on the defendant; the notice was taken to expire on 31 July 1942. The original suit was instituted on 6 August 1942 and decreed on 30 November 1943. The Bihar House Rent Control Order, 1942 was extended to Muzaffarpur by notification on 1 April 1944 while an appeal from the trial court's decision was pending and execution of the decree had been stayed. The present appeal raises questions about (a) whether the notice to quit expired on a correct date, and (b) whether section 13 of the Bihar House Rent Control Order, 1942 barred the recovery of possession.

Legal Issues Presented

  1. Whether the notice to quit dated 7 July 1942, and taken to expire on 31 July 1942, was valid or whether it should have expired on 1 August 1942 (i.e., the correct expiry date for notice to a monthly tenant).
  2. Whether section 13 of the Bihar House Rent Control Order, 1942 barred the suit for recovery of possession and therefore required dismissal of the lower appellate court's decree (i.e., whether the word "tenant" in section 13 covers an ex-tenant against whom an ejectment decree has already been passed but whose execution is stayed).

Arguments of the Parties

Appellant's Arguments (as presented in the opinion)

  • First argument: The notice to quit was invalid because it should have expired on 1 August 1942 (relying on the operation of section 110 of the Transfer of Property Act and the contention that a lease for one month commencing on the first expires at midnight on the first day of the following month).
  • Second argument: The Bihar House Rent Control Order, 1942 (specifically section 13) applies to the defendant and therefore the lower appellate court was bound to dismiss the suit for recovery of possession; the term "tenant" should be construed to include any person in possession who had been let into possession under a tenancy agreement, even if a notice to quit had already been given.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mellows v. Low (observations of McCardie, J.) That a letting to a monthly tenant is, in the ordinary course, a letting for a period of time determinable by due notice (i.e., not a re-letting at the commencement of each month). The court relied on this observation to reject the assumption that a monthly tenancy is a new lease at the start of each month; this supports treating the tenancy as determinable by notice rather than a succession of monthly leases.
Binaykrishna Das v. Salsiccioni (Judicial Committee) Illustrates that where a lessee under a lease for years holds over and becomes a monthly tenant, the date on which the original lease ended (governed by section 110) affects when the periodic tenancy commenced; but the expiry of notice terminating a periodic tenancy is governed by section 106. The court examined this decision and held it does not support the appellant's contention; it was used to show the distinction between application of section 110 to original lease termination and section 106 to termination of a periodic tenancy, and to validate the 31 July notice expiry in the present facts.
Charu Chandra Ghose v. Bankim Chandra Sett (High Court of Calcutta) Followed the reasoning in Binaykrishna Das v. Salsiccioni regarding a tenant who became a monthly tenant after holding over from a lease for years. Referred to as a case that, on close examination, does not support the appellant's argument because its facts involved a hold-over from a lease for years rather than an ordinary monthly tenancy determinable by notice.
Karnani Industrial Bank v. Satya Niranjan Shaw (observation of Lord Atkin) Observation that the word "tenant" might in some contexts include an ex-tenant, but with the qualifying phrase "in its proper context." The court cited this observation but noted Lord Atkin's qualification and found it inapplicable to the present context where an ex-tenant with a decree against him cannot be treated as a tenant under section 13.
Remon v. City of London Real Property Company, Limited (English Court of Appeal) Decision turned on the language of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1920; addressed rights of a person in possession when the statute came into operation and prior forcible dispossession by landlord. The court considered this decision but found it distinguishable and of no assistance because it depended on specific statutory language and facts (possession when the statute came into force and forcible dispossession), unlike the present case.
Dobson v. Richards (decision of Lord Reading, C.J.) Involved dismissal of an action to eject where the plaintiff had served notice to quit prior to the coming into force of the statute; the defendant was treated as a tenant at sufferance by implication of law. The opinion notes Dobson as an authority relied on in Remon, but distinguishes its relevance because those cases involved leases for years and different statutory contexts; not analogous to a monthly tenant whose tenancy is determinable by notice.
Cole on Ejectment (treatise, cited at pages 455–456) States that a tenancy by sufferance is not apparently implied when a monthly tenant remains after service of a notice to quit and that any such tenancy would cease as soon as an action in ejectment is brought. The court relied on this principle to support the conclusion that the English cases about tenants at sufferance were not analogous and that a monthly tenant does not necessarily become a tenant at sufferance after notice to quit; the existence of an ejectment action further prevents such a tenancy continuing.

Court's Reasoning and Analysis

The court proceeded in two main lines of analysis corresponding to the two central issues.

  1. Validity of the notice (expiry date):
    • The court rejected the appellant's contention that the notice should have expired on 1 August 1942 by examining the nature of a monthly tenancy and the relevant provisions of the Transfer of Property Act.
    • Although section 110 of the Transfer of Property Act causes a lease "for a period of one month, commencing on the first day of the month" to expire at midnight on the first day of the following month, the court held that a letting to a monthly tenant in the ordinary course is a tenancy determinable by due notice and not a succession of fresh leases at the start of each month (relying on McCardie, J.'s observations in Mellows v. Low).
    • The court emphasized section 106 of the Transfer of Property Act, which explicitly provides that a lease from month to month is terminable "by fifteen days notice expiring with the end of a month of the tenancy."
    • Because the tenancy here commenced on the first of a month (admitted), a notice must expire with the last day of a month. The notice dated 7 July 1942 expiring on 31 July 1942 therefore satisfied section 106 and was valid.
    • Binaykrishna Das v. Salsiccioni and the Calcutta High Court decision in Charu Chandra Ghose were examined and distinguished: those cases involved tenants who had become monthly tenants by holding over after fixed-term leases; in those circumstances section 110 affected the date on which the periodic tenancy commenced, but the termination of that periodic tenancy was still governed by section 106. Thus those authorities do not support the appellant's position in the present facts.
  2. Applicability of section 13 of the Bihar House Rent Control Order, 1942:
    • The appellant argued that section 13 barred recovery of possession so long as a "tenant" pays or is ready to pay rent as allowable and performs conditions of tenancy, and that "tenant" should include the defendant despite the prior valid notice and a decree in ejectment.
    • The court rejected an expansive construction of "tenant" that would include an ex-tenant against whom a decree in ejectment has already been passed and who remains in possession only because execution has been stayed.
    • The court interpreted "tenant" in section 13 as limited to persons who are either tenants under a tenancy agreement or statutory tenants by reason of sections 4 or 12 of the Order. The court emphasized that sections 4 and 12 themselves permit the Controller, in certain circumstances, to require statutory tenants to vacate; construing section 13 more widely would produce anomalous results (for example, preventing a landlord from litigating to enforce a Controller's order requiring vacation).
    • The English authorities cited by the appellant (Karnani, Remon, Dobson) were examined and found distinguishable because they dealt with different statutory schemes, different factual circumstances (often involving leases for years and statutory regimes in force at particular times), or involved tenants held to be tenants at sufferance — a status not apparently implied for monthly tenants who have been served with notice to quit. The court also relied on Cole on Ejectment to note that a tenancy at sufferance does not necessarily arise for monthly tenants and would in any case cease once an action in ejectment is brought.
    • Accordingly, the court concluded it was not permissible to treat the defendant as a "tenant" for purposes of section 13 so as to bar the suit for recovery of possession.

Holding and Implications

APPEAL DISMISSED

Holding (direct effect): The court dismissed the defendant's second appeal with costs. The notice to quit dated 7 July 1942 and expiring on 31 July 1942 was held to be valid under the Transfer of Property Act (section 106 controlling the termination of a month-to-month tenancy). The court also held that section 13 of the Bihar House Rent Control Order, 1942 did not extend to an ex-tenant against whom a decree in ejectment has been passed and who remains in possession only because execution of the decree has been stayed; therefore section 13 did not bar the suit for recovery of possession.

Implications and practical consequences: The plaintiff is entitled to the decree for recovery of possession; the defendant cannot successfully rely on section 13 of the Bihar Order to defeat that decree in the present circumstances. The court noted, however, that if immediate vacation would cause public inconvenience (the appellant said his client dealt in petrol and motor accessories), the appropriate remedy would be to seek relief from the competent authority in the emergency rather than ask the civil court to suspend the plaintiff's right to execute the decree. The court did not order suspension of execution and indicated the defendant must either make arrangements with the plaintiff or apply to the competent authority for time to vacate.

The opinion does not purport to lay down a wider precedent beyond its holdings on the facts; it distinguishes several English authorities and confines the statutory construction of "tenant" in section 13 to the contexts described.


Prepared from the provided opinion text (Shearer, J.; Varma, J. concurred). No information beyond the text of the opinion has been added.

    Ganeshdas Ramgopal v. Jamuna

    Shearer, J.:— This second appeal, which is by the defendant, arises out of a suit in ejectment. The defendant was and had, for a period of about 15 years, been a monthly tenant of a house situated in the town of Muzaffarpur. On the 7th of July, 1942, a notice to quit was served on him. This notice expired on the 31st of July, 1942, and one of the two points taken by Mr. S.N Bhattacharyya for the appellant, is that the notice was not a valid notice inasmuch as it did not expire on the proper day. According to Mr. Bhattacharyya, the notice should have expired on the 1st of August, 1942, and not on the 31st of July, 1942. It is true that if a lease is made for a period of one month, commencing on the first day of the month, that lease will, by reason of the, provisions contained in section 110 of the Transfer of Property Act, expire at midnight on the first day of the following month. In other words, if in law there was a re-letting of the house to the defendant on the 1st of July, 1942, and if there were no other provisions in the Transfer of Property Act besides section 110 which applied, the argument put forward by the learned advocate for the appellant would be unanswerable. Neither of these assumptions can, however, be made. In the first place, a letting to a monthly tenant is not a letting which expires at the end of the first month or at the end of each succeeding month nor is there a re-letting at the commencement of each month of the tenancy. In the ordinary course as in the present case, it is a letting for a period of time which is determinable by due notice; see the observations of McCardie, J. in Mellows v. Low. Secondly, section 106 of the Transfer of Property Act explicitly provides that a lease from month to month is terminable.

    “by fifteen days notice expiring with the end of a month of the tenancy”.

    Where, therefore, the tenancy has commenced on the first of a month—and it is apparently admitted that this particular tenancy did so—the notice must expire with the last day of a month. The learned advocate for the appellant relied on a decision of their Lordships of the Judicial Committee in Binaykrishna Das v. Salsiccioni and on a subsequent decision of Ameer Ali, J. in the High Court of Calcutta in Charu Chandra Ghose v. Bankim Chandra Sett, in which that decision was followed. When, however, these decisions are closely examined, it will be seen that they do not support but negative the contention which has been put forward by Mr. Bhattacharyya. It is important, to notice that in each of these two cases the defendant had been a tenant under a lease for a term of years and, on the expiry of the lease, had been permitted to hold over, thereby becoming a monthly tenant. In Binaykrishna Das v. Salsiccioni the lease under which the defendant had originally been let into possession of the premises was a lease for four years expressed to be “from the 1st day of June, 1921”. By reason of the provisions contained in section 110 of the Transfer of Property Act, this lease came to an end at midnight on the 1st of June, 1925. The monthly tenancy, therefore, commenced on the 2nd of June, 1925, and any notice determining it had, therefore, to expire on the first day of a month. It is quite clear from the judgment of Lord Tomlin that, in determining when the original tenancy came to an end and the periodic tenancy commenced, regard had to be had to the provisions of section 110; but that, in determining when the notice terminating the periodic tenancy had to expire, regard had to be had to section 106 of the Transfer of Property Act. In my judgment, therefore, the notice which was given to the defendant was a valid notice.

    The other point taken by Mr. S.N Bhattacharyya, for the appellant, is that the Bihar House Rent Control Order, 1942, applies, and that by reason of the provisions contained in section 13 of that Order the lower appellate court was bound to dismiss the suit. Section 13 is in these terms:—

    “13. Bar against orders for recovery of possession of house in possession of a tenant.—No order for the recovery of possession of any house shall be made so long as the tenant pays or is ready and willing to pay rent to the full extent allowable by this Order and performs the conditions of the tenancy.”

    The Bihar House Rent Control Order was extended to the district of Muzaffarpur by a notification published on the 1st of April, 1944. The suit out of which this appeal arises had been instituted on the 6th of August, 1942, and had been decreed on the 30th of November, 1943. On the 1st of April, 1944, an appeal against the decision of the trial court was pending, and, in the meantime, execution of the decree had been stayed. Mr. Bhattacharyya contends that the word “tenant” in section 13 of the Bihar House Rent Control Order, 1942, must be construed as including any person in possession of a house who has been let into possession of that house under tenancy agreement, even if his tenancy has been determined by a valid notice to quit. It would, on the face of it, be doing extreme violence to the language to Construe the word “tenant” as including a person in the position of the defendant whose tenancy prior, to the coming of the Bihar House Rent Control Order into operation had not merely been determined but against whom a decree in ejectment had been passed, and who, if he was still in possession of the house, was in possession merely because the civil court had stayed the execution of the decree. The word “tenant” in section 13 must, in my judgment, be confined to persons who are either tenants under a tenancy agreement or are statutory tenants by reason of the provisions contained in either section 4 or section 12 of the Order itself. To put the enlarged construction on the word “tenant”, for which Mr. Bhattacharyya contends, would lead in one case at least to the most anomalous consequences Section 4 and section 12 of the Order both provide that even where a tenant has become a statutory tenant the Controller may, in certain circumstances, require him to vacate the house. Suppose that in such a case the order of the Controller is disobeyed and the landlord has to institute a suit in ejectment. If the construction of section 13, for which Mr. Bhattacharyya contends, is the correct one, the civil court would in such a case be bound to dismiss the suit. If, on the other hand, the construction is that which I have just indicated, the defendant in such a suit could not plead that he was a statutory tenant and not being one would be liable to be ejected. Mr. Bhattacharyya referred to an observation of Lord Atkin in Karnani Industrial Bank v. Satya Niranjan Shaw and to a decision of the English Court of Appeal in Remon v. City of London Real Property Company, Limited which was there referred to. Lord Atkin, however, in saying that the word “tenant” might include an ex-tenant, was careful to add the qualifying words “in its proper context”. As to the decision in Remon v. City of London Real Property Company, Limited, it is scarcely necessary to point out that decision turned on the language used in certain sections of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1920. The plaintiff in that action was a person who had been in possession of the premise's when the Act came into operation. Prior to that, it is true, notice to quit had been served on him, and immediately afterwards the landlord had forcibly and, without the intervention of the court, dispossessed him. The plaintiff sued for recovery of possession, and the court of appeal took the view that, if, by reason of the provisions contained in the Act, he would have been entitled to retain possession of the premises, he must be entitled to recover possession of them from the landlord. Scrutton, L.J, relied on the decision of Lord Reading, C.J, in an earlier case, Dobson v. Richards. In that action the plaintiff sued to eject a tenant on whom he had served a notice to quit prior to the date on which the Increase of Rent and Mortgage Interest (Restrictions) Act, 1919, had come into operation. The ground on which the action was dismissed was that, although the tenancy by agreement had been determined, the defendant was by implication of law a tenant at sufferance. It is to be observed that both in this case and in Remon v. City of London Real Property Company, Limited, the defendant had been let into possession under a lease for a term of years. If the defendant had been a monthly tenant and, certainly, if an action in ejectment was already pending when the statute under which he claimed relief came into operation, he would not, I think, have succeeded. For one thing, the law does not apparently imply a tenancy by sufferance when a monthly tenant remains on after service of a notice to quit, and for another, any such tenancy would in any case cease as soon as an action in ejectment is brought (see Cole on Ejectment, 455-6). These and similar decisions of the courts in England are of no assistance to us in determining the question that arises here. In my judgment it is quite impossible to say that an ex-tenant against whom a decree in ejectment has been passed can still be regarded as a tenant within the meaning of the word as it occurs in section 13 of the Bihar House Rent Control Order, 1942. For these reasons I would dismiss this appeal with costs.

    Mr. S.N Bhattacharyya pointed out that his client dealt in petrol and motor accessories and said that if he was required to vacate the premises immediately much inconvenience would or might be caused to the public. If this is really so, it may perhaps be open to the authority which deals with such matters in the present emergency, to require the plaintiff to give the defendant time to vacate the premises; but it would not, I think, be proper for us—if indeed it is at all open to us—in giving the plaintiff the decree to which he is entitled to make an order which would have the effect of suspending his right to execute the decree. The defendant must either come to so me arrangement with the plaintiff or must approach the authority, if there is one, competent to maintain him in possession of these premises.

    Varma, J.:— I agree.

    Appeal dismissed.
    H.R.K

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    Ganeshdas Ramgopal v. Jamuna
    (Apr 26, 1945)