Citation : 2024 Latest Caselaw 16993 Ori
Judgement Date : 22 November, 2024
IN THE HIGH COURT OF ORISSA AT CUTTACK
RSA No.340 of 2017
(From the judgment and decree dated 18.7.2017 and
28.7.2017 respectively passed by learned District Judge,
Balasore in R.F.A. No.49/115 of 2009/2006, allowing the
same and in the process setting aside the judgment and
decree dated 29.7.2006 and 5.8.2006 passed by learned
Civil Judge (Jr. Division), Balasore in T.S. No.486/1997)
A.F.R.
Sanatan Bardhan (since dead)
Represented through her L.Rs
Mana Mohini Bardhan and others
... Appellants
-versus-
Ranu Sen and others ... Respondents
Advocates appeared in the case through hybrid mode:
For Appellants : Mr.S.K.Mishra,
Sr.Advocate
Mr.J. Pradhan, Adv.
-versus-
For Respondents
: Mr. R.K.Nayak, Advocate.
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CORAM:
JUSTICE SASHIKANTA MISHRA
JUDGMENT
22.11.2024.
Sashikanta Mishra,J. This is a Defendant's appeal against a
reversing judgment. The judgment passed by learned
Addl. District, Balasore on 18.7.2017 followed by
decree in R.F.A. No.49/115 of 2009/2006 is under
challenge whereby the judgment dtd.29.7.2006
followed by decree passed by learned Civil Judge
(Jr. Division), Balasore, in T.S. No.486 of 1997-I was
reversed.
2. For convenience, the parties are referred to as
per their respective status in the trial Court.
3. The suit in question was filed by the Plaintiff-
respondents for eviction of the defendant from the suit
house. The facts of the case, relevant for deciding the
present appeal are that the suit house belongs to late
Sisir Ch. Sen, the predecessor of the plaintiffs. He
inducted the defendant as a monthly tenant for one
year @ Rs.300/-. The defendant paid the house rent
to said Sisir till his death whereafter, the plaintiffs
having succeeded to the property accepted rent from
him. The defendant was asked by the plaintiffs to pay
enhanced rent @ Rs.800/- per month as per the
prevailing market rate but he did not pay the same nor
cleared the arrear dues. As such, on 9.12.1996 the
plaintiffs served Advocate's Notice on the defendant
but the same was not responded to. On 15.12.1996,
the suit house was found in a dilapidated condition
needing urgent repair for which the plaintiffs asked the
defendant to vacate the same but he did not vacate the
house and continued to default in paying the enhanced
rent from the month of October, 1995. Hence, the suit.
4. The defendant contested the suit by filing
written statement challenging its maintainability. It is
his case that no valid notice as per the provision under
Section 106 of the Transfer of Property Act had ever
been served upon him. Further, he was paying rent
regularly to the plaintiffs for which receipts were
issued by them. Initially the rent was Rs.300/- but
since October, 1989, he paid the same @ Rs.330/-
which was enhanced to Rs.360/- from October, 1992.
On 06.10.1995, when he went to the house of the
Plaintiffs to pay the rent, they asked him to come later
as they were busy in the funeral ceremony of Sisir.
Again on 31.10.1995, when the defendant approached
the plaintiffs, he was told that the old rent receipt book
could not be traced out. The defendant remitted a sum
of Rs.720/- for the months of September and October,
1995 through money order to Plaintiff No.1, which was
duly acknowledged. Since then he has been remitting
the house rent every month by money order to the
Plaintiff No.1. However, on 27.11.1995 Plaintiff No.6
served a legal notice through his Advocate for
enhancement of the house rent to Rs.600/-, to which
the defendant replied on 14.12.1995. Again after one
year he was served with a legal notice enhancing the
rent to Rs.800/- per month. The defendant submitted
his reply through his Advocate. It is further pleaded by
the defendant that all the Plaintiffs are carrying out
different businesses and none of them has bonafide
requirement of the suit house but filed the suit only to
evict him there from.
5. Basing on the rival pleadings, the Trial Court
framed the following issues for determination;
(1) Is the suit maintainable?
(2) Is there any cause of action to file this suit?
(3) Whether any notice is required to be served on the defendant for evicting him from the suit house, if so whether any notice was duly served on the defendant as per law?
(4)Are the plaintiffs entitled to a decree for evicting the defendant from their suit house?
(5) To what other relief(s), the plaintiffs are entitled?
6. Taking up Issue No.3 for consideration at the
outset, the trial court posed two questions for
determination namely, whether any notice is required
to be served on the defendant for evicting him from
the suit house and whether any notice was duly served
on him as per law. Analyzing the oral and documentary
evidence, the trial court found that Sisir Ch Sen and
after him, the plaintiffs were the landlords and that
defendant was a tenant under Sisir and after him, the
plaintiffs. It was held that there is no contract at all by
which more parties are bound and therefore, the
tenancy would be treated as tenancy at will. Holding
so, it was held that notice under Section 106 is
required to be served on the defendant for evicting him
from the suit house.
7. Coming to the second question, the trial Court
found that initially the Plaintiff No.6 had served a legal
notice, but the same being only on behalf of one of the
co-owners cannot be treated as a valid notice. As
regards the subsequent notice served on behalf of all
the co-owners, the Trial Court found that only 7 days
time had been granted to vacate the suit house, which
is not in consonance with the provision of Section 106
of the T.P. Act. The issue was thus answered against
the plaintiffs. The remaining issues were also
accordingly answered against the plaintiffs and the
suit was dismissed.
8. Being aggrieved, the plaintiffs carried the matter
in appeal. After analyzing the provision under Section
106 of the T.P.Act and the oral and documentary
evidence on record, the First Appellate Court found
that the lease agreement executed between the original
owner and the defendant is an unregistered agreement
executed on 29.12.1987 for a period of one year i.e. up
to 28.12.1988. Thereafter the tenancy continued
without any agreement. As per Section 17 of the Indian
Registration Act, any tenancy created for term
exceeding one year requires compulsory registration.
Since the defendant continued beyond the period of
one year on the basis of the unregistered lease
agreement he became a tenant from month to month
and therefore, no notice terminating his tenancy was
necessary in view of Section 111(a) of the Act. Since
the defendant continued in possession in absence of
an assent by the lessor, he would be a tenant by
sufferance and can be sued for ejectment at any time
without any previous notice or demand of possession.
Further, being a trespasser and not a tenant
holding over, no notice is necessary. On such finding,
the appeal was allowed and the defendant was directed
to give vacant possession of the suit house to the
plaintiffs along with the arrear house rent.
9. Being further aggrieved, the defendant has
preferred the present Second Appeal, which was
admitted on the following substantial questions of law;
"Whether the finding of the First Appellate Court that no notice under Section 106 of the Transfer of Property Act (TOP Act) is required to be served upon the Defendant-Respondents asking him to vacate the tenanted shop house within the time as prescribed/stipulated is legally sustainable."
10. Heard Mr. S.K.Mishra, learned Senior counsel
assisted by Mr. J. Pradhan, for the defendant-
appellants and Mr. R.K. Nayak, learned counsel
appearing for the Plaintiff-Respondents.
11. Assailing the impugned judgment Mr. Mishra
would argue that the First Appellate Court fell into
error in treating the defendant as a tenant by
sufferance completely ignoring the evidence on record
that the defendant continued to posses the suit house
long after expiry of the period stipulated in the original
lease, but with full consent of the plaintiffs. According
to Mr.Mishra, the defendant becomes a tenant holding
over for which notice under Section 106 of the T.P.Act
has to be mandatorily served upon him for eviction. In
the case at hand, as rightly held by the trial Court, no
valid notice was issued and therefore, the suit was
dismissed.
12. Per contra, Mr. R.K.Nayak, learned counsel for
the Petitioner submits that the lease in question was
admittedly for a period of one year and expired on
28.12.1988. Since this is a case of a lease expiring by
efflux of time as per Section 111(a) of the T.P. Act, no
notice is required to be served on the defendant for his
eviction. Shri Nayak has cited the judgment of the
Supreme Court in the case of K.M.Manjunath vs.
Erappa G (dead) through L.Rs.1; and argues that if
the lease is for a fixed term, it is not open to the
defendants to plead anything further to determine the
nature of the lease nor can he alter the intrinsic
character of the lease.
2022 SCC Online S.C. 2316
13. From the rival contentions as noted above and in
view of the substantial question of law framed, it is
evident that the only question that is required to be
determined is, whether any notice under Section 106
of the T.P.Act was required to be served upon the
defendant for his eviction from the suit house.
Admittedly, the defendant was inducted as a tenant by
the predecessor of the plaintiffs namely, Sisir Ch. Sen
by executing a lease agreement on 29.12.1987. The
lease deed was admitted into evidence as Ext.3. The
recitals of the agreement would make it clear that the
lease was for one year i.e. from 29.12.1987 to
28.12.1988. Therefore, the lease stood automatically
determined on 28.12.1988 in view of the provision
under Section 111(a) of the T.P.Act, which is quoted
herein below;
"111(a) by efflux of the time limited thereby".
14. Further admittedly, the defendant did not vacate
the suit house upon expiry of the lease but continued
to possess the same. The original landlord died on
1.10.1995 as averred in paragraph-4 of the plaint.
The defendant continued to possess the suit house and
paid rent as per the expired lease deed. Even after the
death of the original land lord, the defendant
continued to possess the suit house and paid rent to
them under receipts issued by them. Several such
receipts have been admitted to evidence as Exts.A, C,
C/1, C/2 etc. There is no evidence whatsoever to show
that prior to issuance of the legal notice
dtd.20.11.1995 (Ext.4), there was any move by
plaintiffs to have the defendant vacate the suit house.
Even reading of Ext.4 would show that there was a
demand for enhancement of the rent purportedly as
per a settlement in the month of September, 1995,
which the defendant allegedly defaulted. Said notice
was issued by Shri N. Panda, Advocate on behalf of
only the Plaintiff No.1 namely, Sanatan Bardhan. As
has been rightly held by the trial Court, said Sanatan
Bardhan could not have issued the notice on his own
in relation to the suit house as he is merely one of the
co-owners. The subsequent notice issued by all the co-
owners (Plaintiffs) on 9.12.1996 again speaks of non-
payment of agreed enhanced rent of Rs.800/- per
month w.e.f. 01.11.1995. All the above facts taken
conjointly would make it manifestly clear that
defendant had continued in the suit house with
consent of the plaintiffs.
15. Keeping the above finding of this Court in the
perspective, a reading of the impugned judgment
reveals that the First Appellate Court, by holding that
the lease had been determined by efflux of time limited
in the agreement as per Section 111(a) of the T.P. Act,
further held that no notice was necessary as after
expiry of such term the lessee (defendant) would be a
tenant by sufferance and therefore, a trespasser but
not a tenant holding over. On such finding, it was held
that no notice is necessary.
16. The distinction between a tenant holding over
and 'tenant at sufferance' has been discussed in
several judgments. This Court, in the case of Raj
Kishore Biswal and others vs. Bimbadhar Biswal
and others; Vol.34 (1992) O.J.D. 499 (Civil) held as
follows;
"14. Under the general law, if a lessee governed by the Transfer of Property Act more often called a tenant, continues in possession of the lease-hold, after the tenancy is terminated, he may be called a 'tenant holding over', if the lessor or his legal representative accepts rent from him or otherwise assents to his continuing in possession. But if it is not so i.e, if his continuance is not by the assent of the lessor, he is merely a "tenant at sufferance", which expression is merely a fiction to distinguish him from a trespasser. A trespasser's possession is wrongful both in its inception as well as in its continuance whereas in case of "tenant at sufferance" his possession was rightful in its inception, but became wrongful in its continuance after termination of tenancy. There exists no relationship between a 'landlord' and 'tenant at sufferance' as lessor and lessee and a suit for his eviction was not necessary to be preceded by a notice u/s. 106 of the Transfer of Property Act. A lease of immoveable property validly created under law can come to an end by various modes as enumerated under Section 111 of the aforesaid Act. Thus "tenancy at sufferance" is not a right at all. Continuance of possession of a "tenant at sufferance" though wrongful, such possession by itself does not become adverse to the lessor. His character of possession the past no doubt was that of a lessee, but not after determination of the lease by any of the modes given in Sec. 111 of the Transfer of Property Act. Continuance of possession with the assent of the landlord could make him a "tenant holding over" but without landlord's assent his attributable to the inaction of the lessor in taking steps for his eviction. In such a position the landlord at any time is entitled to enter upon the land without notice to him and put an end to his continuance in
possession. Therefore, a tenant at sufferance must establish some overt act in defiance of the title of the landlord, so as to change the character of his possession to the possession of a trespasser to enable him to prescribe title against his landlord. That is why, a tenancy at sufferance comes to an end by the demand for possession or by entry by the landlord without notice or by the tenant's quitting. If the landlord demands and the tenant instead of giving up possession still continues to possess his possession thereafter may be sufficient to be categoried as adverse to the landlord."
From a bare reading of the aforequoted
observations, it is clear that when the possession of
the lessee after expiry of the lease is with the assent of
the lessor, he would be a 'tenant holding over' but if
his continuance is not by the assent of the lessor, he is
merely a 'tenant at sufferance', the expression being a
fiction to distinguish him from a rank trespasser.
17. In view of the evidence particularly, the legal
notices(Exts.4 and 5), it would be manifestly clear that
continuance in possession of the defendant after expiry
of the period stipulated in the lease agreement was
entirely with the assent of his landlords (plaintiffs).
Further, there being no express agreement executed
between the lessor and the lessee after expiry of the
original lease, the tenancy would be treated as a
monthly tenancy. In this context, the provision of
Section 116 of the Act would be relevant, which is
quoted herein below;
"116. Effect of holding over. If a lessee or under-lessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise assents to his continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed from year to year, or from month to month, according to the purpose for which the property is leased, as specified in Section 106."
18. Such being the legal position, the provision
under Section 106 of the Act requiring 15 days' notice,
cannot be done away with. As has been held and
rightly so by the trial Court, the first notice under
Ext.4 being issued by only one of the landlords is not a
valid notice. The second notice (Ext.5), though issued
on behalf of all the co-owners granted only 7 days' time
to the defendant to vacate the suit house. It goes
without saying that such notice cannot be held to have
fulfilled the requirement of Section 106 of the T.P. Act.
Evidently, the First Appellate Court has fallen into
error in treating, the defendant as a tenant at
sufferance and not a tenant holding over. For the
reasons indicated above, it has to be held that the First
Appellate court committed an error of law. As regards
the case law cited by Shri Nayak, in the facts and
circumstances of the present case narrated above, the
same is not applicable for the reason that in the said
case the Supreme Court held that on expiry of the term
fixed under the deed the tenant would not be entitled
to statutory notice under Section 106 of the T.P. Act.
The facts obtaining in the present case and entirely
different.
19. Thus, from a conspectus of the analysis of facts
and law and the contentions raised by the parties, this
Court is of the considered view that the First Appellate
Court committed an illegality in holding that no notice
under Section 106 is necessary for which the
impugned judgment cannot be sustained in the eye of
law. Since this Court has found that the defendant was
a tenant holding over, there being admittedly no valid
notice served upon him before filing of the suit, the
same was not maintainable and therefore, rightly
dismissed by the trial Court.
20. In the result, the appeal succeeds and is
therefore, allowed. The impugned judgment passed by
the First Appellate Court is hereby set aside. The
judgment passed by the trial Court in dismissing the
suit is confirmed.
.................................. Sashikanta Mishra, Judge
Ashok Kumar Behera
Designation: A.D.R.-cum-Addl. Principal Secretary
Location: High Court of Orissa, Cuttack Date: 25-Nov-2024 11:20:15
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