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Rajiv Saluja vs Bhartia Industries Limited And ...
2002 Latest Caselaw 716 Del

Citation : 2002 Latest Caselaw 716 Del
Judgement Date : 7 May, 2002

Delhi High Court
Rajiv Saluja vs Bhartia Industries Limited And ... on 7 May, 2002
Equivalent citations: AIR 2003 Delhi 142, 98 (2002) DLT 720
Author: J Kapoor
Bench: J Kapoor

JUDGMENT

J.D. Kapoor, J.

1. This is an application under Order 12 Rule 6 CPC seeking interim decree for possession on the basis of admitted facts.

2. There is no dispute as to the relationship of the landlord and tenant between the parties. The only dispute is with regard to the nature of tenancy and the service of notice determining the tenancy.

3. The application is being resisted mainly on the ground that as per own understanding of the plaintiff the tenancy created by way of registered lease deed ended on 31.8.99 but was orally extended up to 29.2.2000 for a period of six months and, therefore, the possession of the defendant was by way of a month to month tenancy which was terminable in terms of Section 106 of the Transfer of Property Act, 1882 and since in the instant case the service of notice of termination of tenancy has not been proved no decree under Order 12 Rule 6 CPC can be passed as such a decree can be passed only on the premise of admitted facts.

4. According to the plaintiff the notice of termination of tenancy was duly served upon the defendants at both the addresses including the demised premises. The certificate obtained by the plaintiff from the Postal Authorities with regard to the service of registered notice dated 8th June, 2000 shows that the notice addressed to Mr. O.P. Bhartia, defendant No. 2 was duly received and served at the demised premises. He was referred as a Chairman of defendant No. 1 company in whose favor the tenancy was created.

5. In support of the contention that the occupation of the lessee after the expiry of the lease period amounts to holding over as a tenant on month to month basis as contemplated under Section 116 of the Transfer of Property Act, Mr. Nayyar, learned senior counsel for the defendants has placed reliance upon Satish Chand Makhan and Ors. v. Govardhan Das Byas and Ors. wherein a view was taken that in a case where a tenant continues to be in occupation after the expiry of the lease period, he holds over as tenant from month to month under Section 106 of the Act.

6. The averment of the plaintiff that he at first instance had verbally terminated the tenancy on 1.9.99, but allowed the request of the defendant to extend the tenancy for another six months on compassionate grounds was met with the plea of bald denial as to either verbal termination of tenancy or verbal extension of tenancy period for another six months.

7. In order to appreciate the rival contentions the relevant paras of the pleadings viz. plaint and written statement need to be reproduced. These are:-

 Plaint                             Written statement
3. That the plaintiff              3. Para 3 of the plaint, as 
verbally terminated the     stated, is wrong and denied. 
tenancy of the defendants      It is denied that the tenancy 
on 1.9.1999 and called             of the defendant No. 1 was 
upon him to deliver the     terminated, as alleged, or in 
vacant and peaceful      any manner and on the dates 
possession of the      stated in the paragraph under 
aforesaid property      reply. It is denied that there 
bearing No. 89-A, Sainik     were oral requests made as 
Farm, New Delhi-110 062     stated in the paragraph under 
The defendants made a             reply. On the contrary, it is 
request to the plaintiff           submitted that the defendant 
for extending the tenancy     no. 1 had, acting upon the 
for another six months.     license and consent granted by 
On this verbal request      the plaintiff, made various 
and on compassionate      structural changes in the suit 
grounds, the lease period     property and executed works of 
was extended with effect     permanent character after 
from 1.9.1999 to     incurring expenses in the 
29.2.2000 for a period of     execution thereof. Without 
six months. The tenancy     prejudice to what has been 
of the defendant stood      stated hereinabove, it is 
terminated with effect      submitted that the license from 
29.2.2000."              granted by the plaintiff in 
                                   this regard to execute works of    
                                   permanent character has now 
                                   become irrevocable and the                  
                                   plaintiff is not entitled to 
                                   the possession of the    
                                   suit property from the defendant 
                                   No. 1. The defendant craves   
                                   leave to place the complete 
                                   particulars relating to the   
                                   execution of such works and the 
                                   expenses thereof before this                                                                      Hon'ble Court during the trial of the suit."
"5. That the plaintiff did         "4 to 6 - Paragraphs 4 to 6 of 
not want to retain the             the plaint, as stated, are 
defendants as his tenant           wrong and denied. It is denied 
in the premises in                 that the lease period expired 
question. The lease                by means of an alleged notice 
period had also expired            dated 8.6.2000 or that the 
by means of notice dated           tenancy of the defendant was 
8.6.2000. The plaintiff            terminated by the aforesaid 
terminated the tenancy of          notice or that the alleged 
the defendants. The                notice of termination was duly 
notice of termination of           served on the defendant. It is 
tenancy was duly served            denied that the possession of 
upon the defendants at             the defendant No. 1 in the 
both the addresses. No             premises in question after such 
reply to the aforesaid             alleged termination of tenancy 
notice has been received           is illegal or unauthorised or 
by the plaintiff."                 that the defendants are liable 
                                   to pay damages for use and 
                                   occupation at the rate of Rs. 
                                   2 lakhs per month."
8. That the defendants             "8. In reply to paragraph 8 of 
have been sending the              the plaint, it is submitted 
cheques but the same have          that the defendant had been 
not been got encashed by           sending cheques which were not 
the plaintiff with effect          encashed by the plaintiff. 
from 1.3.2000 after the            However, the sending of such 
tenancy came to an end."           cheques was without prejudice 
                                   to the rights of the parties as 
                                   stated herein."
 

8. As is apparent from the denials made in the written statement, these are unspecific and evasive and therefore no denials in the eyes of law. Order 8 Rule 5 of Code of Civil Procedure lays down that every allegation of fact in the plaint, if not denied specifically or by necessary implication, or stated to be not admitted in the pleading of the defendant, shall be taken to be admitted except as against a person under disability provided that the Court may in its discretion require any fact so admitted to be proved otherwise than by such admission.

9. The observations of the Supreme Court in this regard made in Badat and Company, Bombay v. East India Trading Company need to be quoted and are as under:-

"Rules 3, 4 & 5 of Order 8 of CPC form an integrated code dealing with the manner in which allegations of fact in the plaint should be traversed and the legal consequences flowing from its non-compliance. The written statement must deal specifically with each allegation of fact in the plaint and when a defendant denies any such fact, he must not do so evasively but answer the point of substance. If his denial of a fact is not specific but evasive, the said fact shall be taken to be admitted. In such an event, the admission itself being proof, no other proof is necessary."

10. Since the denial by the defendant to the specific averment of oral extension of the tenancy by the period of six months is not in accordance with Order 8 Rule 5 CPC being unspecific and evasive, the averment of the plaintiff in this regard has to be taken to be admitted.

11. Though the tenancy was otherwise terminated by the efflux of time but by way of abundant precaution the plaintiff also served a notice of termination as provided under Section 106 of the Act dated 8.6.2000 before filing of the suit and moreover the defendant has no where taken the plea that before the expiry of the contractual lease he had become a tenant on month to month basis by virtue of holding over and therefore in the given facts and circumstances there was even otherwise no need for giving notice of termination of tenancy.

12. As regards the contention of Mr. Nayar that in the absence of notice under Section 106 the instant suit was not maintainable nor is the plaintiff entitled to seek decree for possession and since in the instant case the plaintiff has prima facie failed to prove the service of notice no such relief can be granted to the plaintiff, Mr. Vijay Kishan, learned counselt for the plaintiff has relied upon the postal receipts vide which the said notice was dispatched at as many as three different addresses and the certificate of the Postal Authorities to the effect that the registered notice dated 8.6.2000 was duly served upon defendant No. 2. Certificate is as under:-

To

Mrs. Kochar,

117, Supreme Court,

New Delhi.

No. CR/05/02                     Dtd. 10.01.2002

Sub: D/o AD No. 7834 of dt. 8.6.00 at Sh. O.P. Bhatia 89/A/119 Sainik Farms, N. Delhi-62.

Madam,

W.R.T. your letter dated 10.1.02 it is to inform you that as per records the AD R.L. U/R stands delivered to the addressee at this end on 10.6.2000 pl.

Yours faithfully,        

Sd/-               

Sub-Post Master       

13. Though the question whether the service upon defendant No. 2 amounts to service upon defendant No. 1 need not be gone into at this stage still the fact remains that defendant No. 2 is noneless but the Chairman of defendant No. 1. As per Section 106 of the Act service of notice must be in writing, signed by or on behalf of the person giving it and amounts to having been served if it is received by one of his family members or servants at his residence or affixed at a conspicuous place of the property. Defendant No. 2 is not only the Chairman of the defendant No. 1 but was the occupant of the premises. There can be no better case of service of notice upon defendant No. 1 - Company when it is served upon its Chairman.

14. Thus the notice which has been delivered to defendant No. 2 in his capacity as Chairman of defendant No. 1 is the sufficient service upon defendant No. 1 for the purpose of Order 12 Rule 6 CPC. Even otherwise the notices were also served at the commercial premises of the defendants 1 & 2. Original postal receipts filed by the plaintiff are prima facie proof of dispatch. Bonafideness of the plaintiff in serving the notice upon the defendant is projected from the certificated obtained by him from the postal authorities after great efforts and that too after an year.

15. Almost in an identical case Smt. Shanti Devi v. Amal Kumar Banerjee AIR 1981 SC 1550 wherein the landlord filed a suit for ejectment and also pleaded that he had sent a notice to the defendant under Section 106 determining the tenancy with the expiry of the month of April, 1970 and the defendant contested the claim of the plaintiff on various grounds, the main ground of contest being that no valid notice under Section 106 of the Transfer of Property Act was served upon him and therefore the suit was not maintainable, it was held that before deciding the validity of the notice the Court should first decide whether Section 106 is applicable or not.

16. Though in the instant case the service of notice under Section 106 of the Act was not at all necessary because the tenancy had expired by efflux of time by virtue of Section 111-A of the T.P. Act but to be on the safer side the plaintiff served notice under Section 106. Mere denial of receipt of such notice cannot come to the rescue of defendant No. 2. Denial is far outweighed by not only postal receipts proving the dispatch at all the addresses of the defendant but also through a certificate from the postal authorities as to the receipt of the notice by the defendants at the suit premises.

17. I have taken a view in Rama Ghai v. UP State Handloom Corporation 2001 IV AD (DELHI) 471 that in order to invoke the provisions of Order 12 Rule 6 CPC the Court has to scrutinise the pleadings in their totality and ignore the evasive and unspecific denials either as to the relationship or as to the service of notice or as to the nature of tenancy.

18. If the landlord either under the legal advice or by way of abundant precaution sends notice for termination of tenancy under Section 106 of the T.P. Act after the expiry of tenancy by way of efflux of time his intention is not to terminate the tenancy but to insist and impress upon the tenant to hand over the possession after the expiry of agreed period of tenancy.

19. In the instant case the evasive denial by the defendants to the creation or a tenancy for six months has the effect of termination of tenancy by efflux of time. Whenever the period of lease was extended for a year, the plaintiff got the lease deed registered. It is unscrupulous on the part of the defendant to deny the extension of lease orally for a period of six months on compassionate ground as the petitioner did not feel the need of getting the lease registered and rightly so as such on extension of tenancy could have been agreed orally and even without unregistered lease deed under the provisions of Section 116 of the T.P. Act. Even on the premise of its own defense that the tenancy became monthly tenancy after the expiry of the registered lease period, the defendants stand on sticky wicket as even the said tenancy was validly terminated by the notice under Section 106 of the Act and, therefore, the occupation of the defendant after that period was unauthorised.

20. The aforesaid reasons pursuade me to allow the application and pass decree for possession which will be executable after two months from today.

 
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