AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • S. 37 of the Transfer of Property Act.
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • S. 37 of the Transfer of Property Act.
Smart Summary

Summary of Judgment

Factual and Procedural Background

This Second Appeal arises from a suit for rent. The appellants are husband and wife; the husband is the 1st plaintiff in the original proceedings (referred to in this summary as the plaintiff). The plaintiff has a brother, Hanumantha Rao. A dispute arose because the defendant arranged to purchase Hanumantha Rao's undivided half share in the suit house.

Initially the defendant admitted being a tenant of the whole house under the plaintiff, who acted for himself and his brother. Later it was common ground that the defendant was a tenant only of the eastern portion of the house (referred to as portion A). The western portion had earlier been occupied by another tenant until about 1925, after which it fell into disrepair and was apparently unoccupied.

The latest registered lease between the parties was entered into in 1918 for two years; although that term expired in 1920, the defendant continued in occupation of the eastern portion, apparently on the same terms, until October 1926. The plaint originally alleged an enhanced rent arrangement during that interval, but that allegation was apparently not pressed.

After the defendant obtained a sale deed from Hanumantha Rao, the plaintiff on 1 November 1926 purported to transfer the eastern portion to his wife. On 19 November 1926 the wife served notice (Ex. V) upon the defendant to quit by 15 January 1927. The defendant replied by notice (Ex. V-A) asserting that, by reason of his purchase from Hanumantha Rao, he had become a co-owner and that the landlord‑tenant relationship had ceased.

The plaintiff's claim in the plaint sought rent from 30 August 1926 and alternatively damages for use and occupation. The defendant's written statement relied on the position taken in Ex. V-A and admitted rent had been paid up to 31 October 1926. The rent suit was initially filed as a Small Cause Suit in the Masulipatam Sub‑Court. Within five or six weeks of its institution, the defendant filed a partition suit in the District Munsif's Court based on the sale deed from Hanumantha Rao. The rent suit was transferred to the Munsif's Court and both suits were tried together.

In the partition proceedings the courts below held there had been no partition between the brothers, that the plaintiff was not entitled in his own right to the eastern portion, and that the defendant was entitled to have the house partitioned between himself and the plaintiff. That decree became final. The courts below concluded that from 10 November 1926 the defendant was in possession as a co‑owner, not as a tenant or trespasser, and therefore not liable to pay rent or damages to the plaintiff, although they awarded a small sum for rent between 31 October 1926 and 10 November 1926. The plaintiff appealed, claiming entitlement to rent for the period after 10 November 1926.

Legal Issues Presented

  1. Whether the defendant, having purchased an undivided half share from Hanumantha Rao, ceased to be a tenant and thus became a co‑owner such that he was not liable to pay rent or damages to the plaintiff for the period after that purchase.
  2. Whether the acquisition by the defendant of only a half share of the property operated to merge or extinguish any leasehold interest (or whether apportionment under S. 37 of the Transfer of Property Act was applicable).
  3. Whether, as an alternative to rent based on a landlord‑tenant relationship, the plaintiff could recover damages for use and occupation or mesne profits from the defendant in light of the partition finding that the defendant was entitled to a half share.
  4. Whether a co‑owner in possession who occupies a portion larger than his share can be made liable to pay occupation rent to the other co‑owner(s) merely on the ground of possession.

Arguments of the Parties

Appellant's Arguments (Plaintiff)

  • The purchase by the defendant from Hanumantha Rao of an undivided half share does not bring about merger of the leasehold and the vendee's title because the purchase was only of a half share; reliance was placed on the decision in Faqir Bakhsh v. Murli Dhar.
  • Reference to principles in Mullah's Hindu Law suggesting issues about the rights of a purchaser of an undivided share of joint family property to obtain or remain in possession — implying the purchaser might not be entitled to retain possession without remedy to the vendor or co‑owners.
  • The plaintiff alternatively sought damages for use and occupation and claimed rent as from specific dates (e.g., from 30 August 1926), including an argument that because the eastern portion occupied by the defendant represented more than a half share, the plaintiff should be able to claim some payment from a co‑owner who received a larger share of profits than his entitlement.

Respondent's Arguments (Defendant)

  • The defendant asserted by notice (Ex. V‑A) that his purchase from Hanumantha Rao vested in him an undivided half share and that, as of that date, he had become a co‑owner; consequently, the landlord‑tenant relationship had ceased and he was not liable to pay further rent.
  • The defendant had paid rent up to 31 October 1926 and promptly instituted a partition suit in the District Munsif's Court after the rent suit was filed; he relied on his title by purchase as the basis for remaining in possession and for seeking partition.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Faqir Bakhsh v. Murli Dhar Authority for the proposition that acquisition of ownership in a portion of leased property does not necessarily extinguish the leasehold interest (illustrated in a case where a tenant with a term lease could not be said to have the lease merged by co‑sharers' purchases). The court noted the case and the general principle but held it was not directly applicable because the defendant in the present case was not a tenant of the whole property; therefore the merger/apportionment issue did not arise in the facts before the court.

Court's Reasoning and Analysis

The court addressed the appellants' three principal contentions sequentially and applied the relevant legal principles strictly as they arose on the facts:

  1. Merger / Apportionment argument:

    The appellants relied on the decision in Faqir Bakhsh v. Murli Dhar to support the proposition that acquiring an ownership interest in part of a property does not automatically extinguish a prior leasehold. The court accepted the general legal proposition but found it immaterial on the facts because the plaintiff had never established that the defendant was tenant of the whole house. Consequently, issues of merger or apportionment (including reference to S. 37 of the Transfer of Property Act) did not arise for decision in this case.

  2. Authorities on purchaser of undivided share (Mullah's Hindu Law):

    The court acknowledged divergent High Court views described in Mullah's Hindu Law about the right of a purchaser of an undivided share from a coparcener to obtain or remain in possession. The court declined to express a definitive opinion on that broader question because it was unnecessary for disposing of the appeal. The court also noted the practical practice of granting a stay of ejectment execution pending the purchaser's suit for partition, and observed that in this case a partition suit had indeed been instituted within five or six weeks of the rent suit.

  3. Termination of landlord‑tenant relationship by notices and purchase:

    The court analysed the communications Ex. V (notice to quit by the plaintiff's wife) and Ex. V‑A (defendant's reply asserting co‑ownership). Because the registered lease term had lapsed (terminated in 1920), the defendant's possession after that date was as a monthly tenant. Ex. V purported to terminate the tenancy as from 15 January 1927, and Ex. V‑A asserted that the defendant had, by virtue of purchase, become a co‑owner and therefore was no longer a tenant. The court held that in view of these notices and the defendant's assertion of title by purchase it was impossible to treat the parties as continuing in the relationship of landlord and tenant after the relevant date.

  4. Alternative claim for damages / use and occupation:

    The court reasoned that the partition judgment — which found the defendant entitled to a half share — undermined the plaintiff's alternative claim for damages for use and occupation. The court distinguished between a person in possession without title (who could in principle be liable for mesne profits) and a person who has a decree entitling him to a share; having found that the defendant was entitled to a half share and noting the partition suit was filed shortly after the rent suit, the court concluded the defendant could not be held liable for damages for use and occupation on the facts.

  5. Claim that eastern portion exceeded defendant's share:

    The court considered the appellants' submission that because the eastern portion represented more than a half share the defendant should account to the plaintiff for excess profits. The court accepted the general principle that a co‑owner who makes profits by use of common property may be accountable for profits in excess of his share, but observed that no authority was shown where mere possession by a co‑owner made him liable to pay occupation rent to co‑owners. The court also noted it was not suggested that the plaintiff sought to occupy the property and was prevented from doing so by the defendant.

On the whole, the court found no reason to disturb the conclusions of the courts below: the defendant was in possession as a co‑owner from the relevant date and not as tenant or trespasser, and therefore not liable for rent or damages except for the short period for which a small sum had been awarded.

Holding and Implications

Holding: The Second Appeal is DISMISSED and the appellant's claim for rent beyond the short period previously awarded fails. The court also refused leave to appeal further.

Consequences and immediate implications for the parties:

  • The plaintiff is not entitled to rent or damages from the defendant for the period after the date on which the courts below found the defendant to be in possession as a co‑owner (the courts below awarded only a small sum for rent from 31 October 1926 to 10 November 1926).
  • The defendant's purchase of an undivided half share (and the subsequent partition decree finding entitlement to a half share) precluded holding the defendant liable for mesne profits or damages for use and occupation on the facts of this case.
  • The appeal is dismissed with costs; leave to appeal further was refused by the court.

The opinion does not assert or establish any sweeping new legal precedent beyond its application of existing principles to the specific facts; the ruling rests on the factual finding that the defendant was in possession as a co‑owner and on the proximate partition decree. No broader legal rule was declared beyond the analysis reflected above.


This summary is prepared strictly from the content of the provided judgment and does not add or infer facts or legal claims not present in the opinion itself.

    Tadikonda Ramakrishna Rao And Another v. Kottagundu Subba Rao

    JUDGMENT

    This Second Appeal arises out of a suit for rent. The appellants are husband and wife but it will be convenient to refer to the husband who is the 1st plaintiff as the plaintiff. He has a brother named Hanumantha Rao and the arrangement made by the defendant with Hanumantha Rao for the purchase of the latter's undivided half share in the suit house has been the cause of differences and disputes between the parties.

    It is admitted by the defendant that, to begin with, he was a tenant of the whole of the suit house under the plaintiff who at that time is said to have acted on behalf of himself and of his brother Hanumantha Rao. Later on however, it seems to be common ground that the defendant was a tenant only of the eastern portion of the house, which is referred to as portion A in the plan. It also appears from the evidence that for some years, up to 1925, the western portion was in the occupation of another tenant, but it is stated that the western portion was much less commodious and as it also got into disrepair it was apparently not continued to be occupied by anybody. The latest registered lease between the parties seems to have been entered into in 1918 for a period of 2 years, but though its term expired in 1920 the defendant admits having continued in occupation of the eastern portion presumably on the same terms as under Ex. A till October 1926. The plaint alleged that during the interval there was a fresh arrangement for payment of enhanced rent but apparently that allegation has not been persisted in.

    The dispute between the plaintiff and his brother is said to have been the result of an attempt on the plaintiff's part to treat the eastern portion of the house which is said to be the better portion of the property as having become his own and trying to force the western portion on the brother, while the brother contended that both of them were undivided and that plaintiff was not entitled exclusively to the eastern portion. The defendant apparently was induced to make some capital out of these unfortunate differences between the brothers and purported to purchase Hanumantha Rao's undivided half share in the suit property. After the defendant obtained this sale deed from Hanumantha Rao the plaintiff, on 1st November 1926, purported to transfer to his wife the eastern portion of the house treating it as his property and on 19th November 1926 the wife sent a notice, Ex. V to the defendant asking him to quit the house on 15th January 1927. The defendant promptly replied by Ex. V-A stating that he did not even propose to wait till 15th January 1927 but as from the date of his purchase from Hanumantha Rao, he had in law become a co-owner of the house, there was no longer any relationship of landlord and tenant between themselves. He no doubt says that the sale by the plaintiff to his wife was collusive and nominal, but it certainly does not lie in the plaintiff's mouth to say that it was not open to the wife to give that kind of notice.

    The claim in the plaint was that the defendant was bound to pay rent as from 30th August 1926 but alternatively the claim was also put forward as one for damages for use and occupation. The written statement raised the plea foreshadowed in the reply notice, Ex. V-A. It was also stated that rent had in fact been paid to the plaintiff upto 31st October 1926. The rent suit was in the first instance filed in the Masulipatam Sub-Court as a Small Cause Suit. Within 5 or 6 weeks after its institution, the defendant on the strength of the sale deed obtained by him from Hanumantha Rao filed a suit for partition of the suit house in the District Munsif's Court. The rent suit was accordingly transferred to the Munsif's Court and the two suits were tried together.

    In the partition suit both the Courts upheld the plea that there was no partition between the brothers, that the present plaintiff was therefore not entitled in his own right to the eastern portion of the suit house and that the present defendant was entitled to have the house partitioned between himself and the plaintiff. I understand that decree has now become final. Proceeding on the above basis, the Courts below have held that after 10th November 1926 the defendant was in possession as a co-owner and not as a tenant nor as a trespasser and that therefore he was not liable to pay any rent or damages to the plaintiff. A decree was given for a small sum representing the rent between 31st October 1926 and 10th November 1926. The plaintiff has filed this Second Appeal claiming that he is entitled to rent even in respect of the period subsequent to 10th November 1926.

    On behalf of the appellants, three contentions have been urged before me. It was first contended that the purchase by the defendant from Hanumantha Rao will not bring about a merger of the leasehold and the vendee's interest because the purchase was only of a half share. Reliance was placed in support of this contention on the decision of the Judicial Committee in Faqir Bakhsh v. Murli Dhar(1). As a proposition of law there can be little doubt that if a person is a tenant of the whole of a property the acquisition by him of ownership in a portion thereof will not of itself extinguish the leasehold interest. In the Lucknow case the tenant was sought to be treated as having forfeited the tenancy and incurred liability to account for the full profits of the property to his co-sharers. The facts stated in the judgment show that he had a term lease and the tenant insisted that as long as the term lasted his co-sharers must only be deemed to have purchased the right to receive the rent and there was no extinction of the lease by merger. I do not see how that question arises in the present case. Apart from the doctrine of merger, if this was a case in which the defendant held possession of the whole house as lessee, it may be open to the plaintiff to contend that after the purchase by the lessee of a half share in the house the defendant should continue to pay to the plaintiff a proportionate share of the rent in respect of the other half on the principle laid down in S. 37 of the Transfer of Property Act. But as I have already stated it is not the plaintiff's case that the defendant was a tenant of the whole house. No question therefore of merger or apportionment arises in the case.

    The next contention on behalf of the appellants was based upon the observations in Mullah's Hindu Law, pages 295 etc., with reference to the rights of a purchaser of an undivided share in an item of joint family property from a coparcener. The learned author points out the different views obtaining in the various High Courts as to the right of such a purchaser to obtain possession or to remain in possession. Here again it is unnecessary for me to express any opinion on the point on which there is no much divergence of judicial opinion. For one thing, the plaintiff in this case all along insisted that he was entitled to a portion of the house exclusively, there was accordingly no question of his claiming to recover the house for the family. Again Sir D.F Mullah himself points out that even in cases in which a decree for ejectment has been given against the purchaser in possession it has been the practice to grant a stay of execution till the purchaser files a suit for partition of the property in which he has purchased a share. As I have observed already, a partition suit was instituted in the present case within five or six weeks of the institution of the rent suit.

    So far as the claim to recover rent is based upon the defendant's character as tenant, it is difficult to see how it could be maintained that the defendant occupied that status in the face of the notices, Exs. V and V-A. By Ex. V, the plaintiff's wife presumably with the knowledge of the plaintiff purported to terminate the tenancy by notice to quit as from 15th January, 1927. As the original period of the registered lease had long ago terminated, the defendant must have been in possession subsequent to 1920 only as a tenant from month to month. If the defendant had acquiesced in Ex. V it will be impossible to treat him as in the position of a tenant after January 1927. But he was prepared to throw up his tenancy even on an earlier date as shown by Ex. V-A and he relied on his title by purchase. Whether that purchase entitled him to remain in possession or not is another matter but in view of Ex. V and V-A it is impossible to treat the parties as continuing to retain the relationship of landlord and tenant after that date.

    As for the alternative claim for damages for use and occupation, I do not see how in the face of the finding in the partition suit that the present defendant was entitled to a half share in the house the defendant could be held liable for damages. It is one thing to say that he could have been ejected and that his only right was to sue for partition but it is a different thing to make him liable for mesne profits as a person in possession without title, and as I have stated already the partition suit was filed very shortly after the institution of the suit for rent.

    Lastly, the appellant's learned counsel suggested that as the eastern portion, that occupied by the defendant, represented more than a half share which the defendant would have been entitled to, the plaintiff was entitled to claim some payment as from a co-owner who has received a larger share of the profits than he would be entitled to. The authorities no doubt recognise that if a co-owner makes profits by the use of common property he is accountable to the other co-owner for the profits made by him in excess of his share, but no authority has been brought to my notice in which a co-owner in possession can merely on the ground of his possession be made liable to pay an occupation rent to his co-owners. It is not suggested that the plaintiff wanted to occupy the property and was prevented from so doing by the defendant.

    In these circumstances, I do not see any reason to differ from the conclusion reached by the Courts below. The Second Appeal fails and is dismissed with costs.

    (Though points of law have been attempted to be argued before me I am not satisfied that they really arise on the facts. I therefore refuse leave to appeal).

    N.R.RAppeal dismissed.

    Use AI to get other relevant cases.

    Comments

    Tadikonda Ramakrishna Rao And Another v. Kottagundu Subba Rao
    (Nov 11, 1936)