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C. Venkatachariar v. C. Rangaswami Ayyangar And Anr.

Madras High Court
Oct 2, 1918
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Summary of the Opinion

Factual and Procedural Background

The plaintiff (appellant) purchased the village of Bojinaickampatti (also referred to as Posinaickenpatti) in 1901 from Narasimhalu Naidu, who acted on behalf of himself and his brother, by a sale recorded as Exhibit III. Previously, the plaintiff had brought Original Suit No. 988 of 1904 for rent against the defendants, who held a Kayam Saswatham lease granted in 1839 from the original mittadars. In that earlier suit the defendants denied the plaintiff's title as landlord and denied the title of the plaintiff's vendors. The first Court decreed the 1904 suit for the plaintiff, establishing his title as landlord. The defendants appealed and continued to deny the plaintiff's title through successive appeals, even after Venkatarama Naidu (the father of the plaintiff's vendors and a party to the suit) indicated he did not wish to contest the plaintiff's title in that suit and was removed from the record upon stating an intention to bring a future suit for cancellation of the deed in favour of his sons. The defendants failed in the appeal and instituted a second appeal, again denying the plaintiff's title.

The present suit (the subject of this opinion) was instituted by the plaintiff for possession on the ground of forfeiture of the defendants' tenancy arising from their repeated denials of the plaintiff's title. The plaintiff also alleged that he had sent a notice to the defendants on 25 January 1908 demanding delivery of possession.

The defendants raised several defences: non-joinder of the plaintiff's two brothers, that the plaintiff's purchase was void for champerty and maintenance, that the defendants held a permanent lease right, and that no notice of intention to take advantage of an alleged forfeiture had been given in 1903 as alleged by the plaintiff.

Procedurally, the District Munsif decided in favour of the plaintiff, finding forfeiture by the defendants and that the plaintiff had given notice (Exhibit K), but the Subordinate Judge (first appellate court) reversed the District Munsif on the question of forfeiture (holding there was no forfeiture because defendants had not attorn to the plaintiff) while agreeing the lease conferred a permanent heritable right. On second appeal before the court giving this opinion, the main contested points included the nature of the 1839 lease, whether repeated denials in earlier litigation amounted to forfeiture, necessity of separate notice by the landlord, and whether Exhibit K was served.

Legal Issues Presented

  1. Whether the 1839 lease-deed (Exhibit I) conferred a permanent, heritable right or only a right during the lifetime of the grantee.
  2. Whether there were several denials of the plaintiff's title during the course of the former suit of 1904.
  3. Whether any or all of those denials entailed a forfeiture of the tenancy.
  4. Whether any notice showing an intention to take advantage of the forfeiture was necessary, even after such denials, as a prerequisite for the maintainability of this suit.
  5. Whether the notice, Exhibit K, was actually given and properly served.

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The plaintiff purchased the mitta in 1901 from Narasimhalu Naidu (acting for himself and his brother) under Exhibit III and thus asserted title as landlord.
  • The defendants had repeatedly denied the plaintiff's title in earlier litigation (Original Suit No. 988 of 1904 and subsequent appeals), thereby incurring forfeiture of their tenancy.
  • The plaintiff served a notice on the defendants on 25 January 1908 (Exhibit K) requiring delivery of possession, and this notice was proved to have been served.
  • On the strength of the sale and the alleged forfeiture, the plaintiff sought possession in the present suit.

Respondents' (Defendants') Arguments

  • The suit was bad for non-joinder because the plaintiff's two brothers were not joined.
  • The plaintiff's purchase was invalid for champerty and maintenance.
  • The defendants held a permanent lease right (a Kayam Saswatham lease from 1839) and therefore could not be dispossessed on the plaintiff's claim.
  • The defendants contended that no notice of intention to take advantage of an alleged forfeiture was given in 1903 as the plaintiff alleged.
  • It was argued for the respondents that a denial of a derivative title cannot in any circumstances work a forfeiture; this contention relied upon Doorga Kripa Roy v. Sree Janoo Lathak (18 W.R. 465).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rajaram v. Narasinga (15 M. 199; 5 Ind. Dec. (N.S.) 490) Authority relevant to the construction of lease grants and the question whether a grant is restricted to the lessee's lifetime. The court noted this authority among others and stated it was not sure whether the question was concluded in favour of the restricted (lifetime) construction; the court did not give a final decision on the point in this case.
Venkataramana v. Venkatapatti Nayani Garu (29 Ind. Cas. 188; 28 M.L.J. 510; 17 M.L.T. 269; (1915) M.W.N. 313) Authority relevant to the construction of pre-Transfer-of-Property Act leases and the extent of the grantee's rights. Included among authorities the court considered when expressing uncertainty about the final construction of Exhibit I; no definitive ruling was made on this point.
Foulkes v. Muthusami Goundan (21 M. 503; 8 M.L.J. 207; 7 Ind. Dec. (n.s.) 712) Authority relevant to the construction of the grant and extent of rights under historical leases. Referred to with other authorities in discussing whether Exhibit I created a lifetime or permanent tenancy; the court declined to express a final view.
Rama Iyangar v. Anga Gurusami Chetti (46 Ind. Cas. 62; 35 M.L.J. 129; 8 L.W. 100) Establishes that even a permanent heritable tenancy can be forfeited by a denial/disclaimer of the landlord's title; contains reasoning on consequences of disclaimer. The court adopted the reasoning in Rama Iyangar, relied on it to hold that denial can work a forfeiture, and applied it in concluding that the defendants' repeated denials were deliberate and amounted to forfeiture.
Kally Dass Ahiri v. Monmohini Dassee (24 C. 440; 1 C.W.N. 321; 12 Ind. Dec. (N.S.) 961) Authority cited in relation to forfeiture of tenancy by disclaimer/denial. Used alongside Rama Iyangar to support the proposition that a permanent tenancy can be forfeited by denial; cited to reinforce that forfeiture is possible.
Doorga Kripa Roy v. Sree Janoo Lathak (18 W.R. 465) Authority relied upon by respondents for the proposition that a denial of a derivative title cannot in any circumstances work a forfeiture. The court observed this case was quoted for respondents but noted it had been dissented from in Rama Iyangar; the court respectfully adopted the Rama Iyangar reasoning instead of following Doorga Kripa Roy.
Padmanabhaya v. Ranga (6 Ind. Cas. 447; 34 M 161; (1910) M.W.N. 462; 8 M.L.T. 110; 20 M.L.J. 930) Authority on the applicability of the Transfer of Property Act to pre-Act leases and agricultural leases; also explains Venkatramana Bhatta v. Gunda Raya. The court relied on Padmanabhaya to hold that the Transfer of Property Act did not apply to the 1839 lease (created before the Act) and because the lease was agricultural; the case was also used to explain earlier authority.
Venkatramana Bhatta v. Gunda Raya (31 M. 403; 4 M.L.T. 211) Authority cited by respondents and discussed in relation to necessity of a preliminary act by landlord after disclaimer/forfeiture. The court noted this case had been quoted for respondents but had been explained in Padmanabhaya; the court accepted the explanation and followed Rama Iyangar's conclusion that no separate preliminary act by landlord is necessary where forfeiture by disclaimer has occurred.

Court's Reasoning and Analysis

The court proceeded through a structured analysis that tracked the factual and procedural findings of the courts below and applied the cited authorities where necessary:

  1. Nature of the 1839 lease (Exhibit I): The court stated that it was not necessary to give a final decision on whether Exhibit I created a permanent heritable right or only a lifetime right. It acknowledged relevant authorities (Rajaram, Venkataramana, Foulkes) that might support the restricted lifetime construction but expressly declined to decide that point finally for the purpose of this case.
  2. Forfeiture by denial: Assuming that Exhibit I created a permanent heritable tenancy, the court held that even such a tenancy can be forfeited by denial of the landlord's title. The court relied on Rama Iyangar v. Anga Gurusami Chetti and Kally Dass Ahiri to support the proposition that denial/disclaimer can entail forfeiture, and it rejected the respondents' reliance on Doorga Kripa Roy by adopting the reasoning in Rama Iyangar.
  3. Denials in the former suit: The court examined the records of the former suit (Exhibits A, B, C, II, IV, XIV) and found that the lessees had denied the plaintiff's title on multiple occasions in the different courts through which the litigation passed. The court concluded that these denials were deliberate and malicious (not bona fide) and amounted to a deliberate disclaimer of the plaintiff's title and tenancy; thus a forfeiture had been incurred.
  4. Necessity of landlord's separate act/notice after forfeiture: The court considered whether a separate preliminary act by the landlord (or notice) was required to maintain ejectment after a disclaimer-forfeiture. It concluded that the Transfer of Property Act did not apply to the 1839 lease (because the lease predated the Act and was agricultural) and, reverting to pre-Act law as considered in Rama Iyangar and Padmanabhaya v. Ranga, the court agreed that where forfeiture by disclaimer of the landlord's title has occurred no separate preliminary act by the landlord is necessary to maintain a suit in ejectment.
  5. If notice were necessary: The District Munsif had found that the plaintiff did send Exhibit K (the notice of forfeiture), and the court accepted that finding. The plaintiff gave evidence and the plaintiff proved service through his Amin; the court found the defendants' denial on this point to be worthless and, since the Appellate Court had not disagreed with the Munsif's finding and had not made its own contrary finding, the court felt entitled to find that Exhibit K had been properly served.
  6. Overall outcome: Based on the conclusions above — that the defendants' repeated denials amounted to forfeiture and that either no separate act was necessary or, in any event, the plaintiff had given Exhibit K — the court determined the District Munsif's decree (which had upheld forfeiture and awarded possession and damages) should be restored, with a modification of the damages figure.

Holding and Implications

Holding: The court reversed the decision of the lower Appellate Court and restored the decree of the District Munsif, except that the damages figure of Rs.1,000 in the Munsif's decree was altered to Rs.750 (assessed at Rs.250 per year).

Direct consequences and practical implications:

  • The District Munsif's judgment in favour of the plaintiff (appellant) is reinstated subject to the modification of damages to Rs.750.
  • The respondents (defendants) are ordered to pay the plaintiff's costs throughout.
  • The court applied existing authorities (notably Rama Iyangar and Padmanabhaya) to conclude that repeated, deliberate denials of a landlord's title can result in forfeiture of a tenant's rights and that, for the 1839 lease in question, the Transfer of Property Act did not apply.
  • This opinion did not announce a new legal rule; rather, it applied and adopted established authorities to the facts before it and resolved the factual disputes (including the validity of service of Exhibit K) in the plaintiff's favour.

Judgment indicated concurrence: Spencer, J. delivered the principal reasons and Spencer, J. and another judge agreed ("I agree.").

Show all summary ...

1. The plaintiff is the appellant. He purchased the plaint village of Bojinaickampatti (or Posinaickenpatti) from Narasimhalu Naidu who acted on behalf of himself and his brother. They made the said sale as Mittadars in 1901 under Exhibit III. Plaintiff had formerly brought a suit for rent against the defendants, who had obtained a Kayam Saswatham lease in 1839 from the original Mittadars. That suit for rent was Original Suit No. 988 of 1904. In that suit, the defendants (the Kayam Saswatham lessees) denied that the plaintiff was the owner of the Mitta and denied also the title of the plaintiff's vendors, Narasimhalu Naidu and his brother, to sell the property to the plaintiff. They set up the title of Venkatarama Naidu (the father of the plaintiff's vendors) who had parted with his rights in favour of his sons in 1897. The first Court decreed that suit of 1904 brought for rent, overruling the lessees objections and establishing the title of the plaintiff as landlord. The lessees appealed, denying again in the Appellate Court the plaintiff's title as landlord and continued such denial notwithstanding that Venkatarama Naidu (the father of the plaintiff's vendors, who had been made a party to the suit) mentioned in an application made to the Appellate Court that he did not want any longer to contest the plaintiff's title in that particular suit, and his name was thereupon removed from the record on his expressing the intention of putting an end to the plaintiff's title afterwards by instituting a future suit for cancellation of the deed executed by him in favour of his sons. The lessees failed in the appeal also and yet they preferred a second appeal again denying the plaintiff's title as landlord. On these facts, and also on the allegation that before filing of the present suit in ejectment (on the ground of forfeiture by denial of the landlord's title by the defendants) the plaintiff sent a notice to the defendants on the 25th January 1908 requiring them to deliver up possession of the village, the plaintiff instituted the present suit for possession.

2. The defendants set up that the plaintiff's two brothers not having joined him in the suit, the suit was bad for nonjoinder, that the plaintiff's purchase was bad for champerty and maintenance, that the defendants had a permanent lease right and that no notice of intention to take advantage of the alleged forfeiture was given in 1903 as alleged by the plaintiff.

3. The District Munsif held on a construction of the Kayam lease-deed (Exhibit I of 1839) that it did confer a permanent heritable right on defendants' predecessor in title, He, however, decided that the defendants incurred forfeiture of that right of permanent tenancy by their denial of the plaintiff's title as their landlord not only in the written statement in the former suit in the first Court but also by their denials in the District Court and the High Court. He states in the 10th paragraph of his judgment that there was a clear and mala fide denial of plaintiff's title in the District Court and also in the High Court and that there was a forfeiture." He further found that the plaintiff had given the notice, Exhibit K, insisting on the forfeiture. The learned District Munsif Was further of opinion that no notice to quit was necessary under the circumstances, because (I take it) the Transfer of Property Act was not applicable to the rights and conditions of the lease, Exhibit I, created in 1839. As regards nonjoinder of plaintiff's brothers, one of them, as plaintiff's witness, denied that plaintiff's brothers had any right. This contention of defendants, though thus patently frivolous, was persisted in the appeal memorandum.

4. On appeal, the learned Subordinate Judge agreed with the District Munsif in holding that the Kayam lease deed, Exhibit I, conferred a permanent heritable right. On the other question, viz., the question of forfeiture, however, he held that, as the defendants did not attorn to the plaintiff after the purchase of the Mitta village by the latter in 1901, the denial by the defendants of the plaintiff's title as landlord did not work a forfeiture. As regards the question whether their denial was bona fide or not, he does not give any definite finding except that the denial at the time of the written statement in the first Court in the former suit may not have been mala fide. The Subordinate Judge admits that the defendants made an unsuccessful attempt before the plaintiff's purchase to buy the property themselves from Narasimhalu Naida and his brother and he also admits that the defendants "attempted to attack the plaintiff's right" as Mittadar of this village in a suit instituted by them against the plaintiff and others. He observes that these two facts can never be said to be recognition of plaintiff's title." So far as the first fact is concerned, it may not be a recognition of the plaintiff's title though it was dearly a recognition of plaintiff's vendor's title. As regards the second fact (see Exhibit D which is an application by defendants for attachment of plaintiff's right as Mittadar), I am wholly unable to understand the Subordinate Judge's observation that it is not a recognition of plaintiff's title. As regards the notice Exhibit K, the Subordinate Judge does not give any finding as to whether it was sent by the plaintiff or not. He, however, found in paragraph 15 of his judgment that such a notice was not necessary if a forfeiture had been incurred.

5. In this second appeal, the questions which have been argued before us are (1) whether the lease deed, Exhibit I, conferred a permanent, heritable right or only a right during the lifetime of the grantee, (2) whether there have "been several denials of the plaintiff's title during the course of the former suit of 1901, (3) whether any or all of those denials entailed a forfeiture of the tenancy, (4) whether any notice showing an intention to take advantage of the forfeiture was necessary, even after such denials, as a pre requisite for the maintainability of this suit, and (5) whether the notice, Exhibit K, was really given. So far as the first point is concerned, I do not think it is necessary to give any final decision, though it should not be thought that I agree with the lower Courts in their construction of Exhibit I. If the matter were res judicata, I might probably have agreed with them. But having regard to the cases in Rajaram v. Narasinga 15 M. 199 ; 5 Ind. Dec. (N.S.) 490; Venkataramana v. Venkatapatti Nayani Garu 29 Ind. Cas. 188 ; 28 M.L.J. 510 ; 17 M.L.T. 269 ; (1915) M.W.N. 313 and Foulkes v. Muthusami Goundan 21 M. 503 ; 8 M.L.J. 207 ; 7 Ind. Dec. (n.s.) 712 I am not sure whether the question is not concluded by authority in favour of the restricted right of the grant as merely a grant for the lessee's lifetime. However, as I said, it is unnecessary to express any final opinion on that point for the decision of this case.

6. Assuming that Exhibit I created a permanent heritable tenancy, it is clear that even such a tenancy can be forfeited by a denial of the landlord's title. See Rama Iyangar v. Anga Gurusami Chetti 46 Ind. Cas. 62 ; 35 M.L.J. 129 ; 8 L.W. 100. and Kally Dass Ahiri v. Monmohini Dassee 24 C. 440 ; 1 C.W.N.321 ; 12 Ind. Dec. (N.S.) 961. It was argued for the respondents that a denial of a derivative title can in no circumstances work a forfeiture and the case in Doorga Kripa Roy v. Sree Janoo Lathak 18 W.R. 465 was relied upon, That case was quoted in Rama lyangar v. Anga Gurusami Chetti 46 Ind. Cas. 62 ; 35 M.L.J. 129 ; 8 L.W. 100. but was dissented from, and I respectfully adopt the reasoning in the judgment in Rama Iyangar v. Anga Gurusami Chetti 46 Ind. Cas. 62 ; 35 M.L.J. 129 ; 8 L.W. 100. on this point.

7. So far as the question of denials in the former suit is concerned, there can be no hesitation on the perusal of the records of the former suit (Exhibits A, B, C, II, IV, XIV) in holding that the lessees denied the plaintiff's title on different occasions, and in each of the Courts through which that litigation passed and so far as the Courts of Appeal are concerned, such denial could not have been bona fide. If a tenant, honestly doubtful and not intending to identify himself with a third party who sets up a title in himself against the real landlord, merely puts his alleged derivative landlord to the proof of the latter's title before the tenant could recognise him as such, such conduct may not work a forfeiture of the tenancy and may not constitute such a disclaimer of the title of the landlord as would work a forfeiture. But it is impossible to hold, having regard to the defendants' conduct both in the former suit and in this suit, that the defendants did not intend to disclaim the plaintiff's title and their tenancy under the plaintiff but merely in good faith wanted to have their doubts cleared whether the plaintiff was their legal landlord or whether anybody else was their legal landlord. The question whether there was a denial in appeal and in second appeal in the former litigation was not decided by the lower Applet Court in this case, but upon the admitted facts there can only be one conclusion, and that is that the denial by the defendants was deliberate and malicious and that they did not care whether Venkatarama Naidu still owned the landlords title or not, their only object being to defeat the plaintiff by all means even after Venkatarama Naidu practically gave up his contest with the plaintiff.

8. Then the next question is, whether a separate act by the plaintiff indicating his intention to act upon the forfeiture is a necessary pre-requisite for the maintainability of the suit. It is clear that the Transfer of Property Act does not apply to this lease, because the lelase was created in 1839 long before the Transfer of Property Act was enacted. I am further of opinion that it is an agricultural lease and on that ground also the Transfer of Property Act does not apply. The same view has been held in Padmanabhaya v. Ranga 6 Ind. Cas. 447 ; 34 M 161 ; (1910) M.W.N. 462 ; 8 M.L.T. 110 ; 20 M.L.J. 930 and in Rama Iyangar v. Anga Gurusami Chetti 46 Ind. Cas. 62 ; 35 M.L.J. 129 ; 8 L.W. 100 in respect of leases prior in date to the Transfer of Property Act. We are, therefore, thrown back upon the law as it existed before the Transfer of Property Act came into force. That law has been fully considered in the case in Rama Iyangar v. Anga Gurusami Chetti 46 Ind. Cas. 62 ; 35 M.L.J. 129 ; 8 L.W. 100 and I agree with the conclusion arrived at therein that where there was a forfeiture by disclaimer of landlords title, no separate preliminary act on the part of the landlord is necessary to enable him to maintain a suit in ejectment. The case in Venkatramana Bhatta v. Gunda Raya 31 M. 403 ; 4 M.L.T. 211 quoted for the respondent has been explained in padmanabaya v. Ranya 6 Ind. Cas. 447 ; 34 M 161 ; (1910) M.W.N. 462 ; 8 M.L.T. 110 ; 20 M.L.J. 930 and that explanation seems to have been accepted in Rama Iyangar v. Anga Gurusami Chetti 46 Ind. Cas. 62 ; 35 M.L.J. 129 ; 8 L.W. 100 also. Assuming, however, that notice is necessary, the Munsif found that the plaintiff did send the notice, Exhibit K. The Plaintif has gone into the box and proved that he sent the notice and had it properly served through his Amin. The 1st defendants denial is worthless. I see no reason to disbelieve the plaintiff, Exhibit K contaning the usual endorsement bye the preson who served the notice that a copy was left with the person who received it. As the Appellate Court has not dissented from the finding of the Munsif on this question and has not given a finding of its own, I think we are entitled to find it ourselves.

9. In the result I would reverse the decision of the lower Appellate Court and restore that of the District Munsif except that the figure for damages, Rs.1,000, mentioned in the Musnsif decree be altered into Rs.750 at Rs 250 a year in accordance with the finding of the lower Appellate Court on that question. The respondents will pay the plaintiffs costs throughout.

Spencer, J.

10. I agree.