Full Judgment Text
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PETITIONER:
PALANI AMMAL
Vs.
RESPONDENT:
VISWANATHA CHEITIAR (DEAD) & OTHERS
DATE OF JUDGMENT: 06/03/1998
BENCH:
S.B. MAJMUDAR, M. JAGANNADHA RAO
ACT:
HEADNOTE:
JUDGMENT:
J U D G M E N T
S.B. Majmudar, J.
Leave granted in these three Special Leave Petitions.
By consent of learned counsel for the contesting
parties the appeals were taken up for final hearing and are
being disposed of by this common judgment.
These three appeals moved by the common appellant, who
will be referred to as the defendant in the latter part of
this judgment for the sake of convenience, seek to challenge
a common judgment rendered by learned Single Judge of the
High Court of judicature at Madras in two Second Appeals and
one Civil Revision Application which were disposed of on
17th December 1996. These second appeals and the revision
application were moved by the heirs of original plaintiff
no.1 Ramanatha Chettiar as well as by the heirs of original
plaintiff no.2 Vishwanatha Chettiar and also by original
plaintiff no.3 Madheswaran. All of them are common
respondents in these three appeals and as they have a common
case against the appellant-defendant they will be referred
to as original plaintiff nos.1, 2 and 3 respectively for the
sake of convenience in the latter part of this judgment.
In order to highlight the grievance of the defendant in
these appeals it will be necessary to note a few background
facts leading to these proceedings.
Introductory Facts
Original plaintiff no.1 Ramanatha Chettiar and original
plaintiff no.2 Vishwanatha Chettiar, both of whom are since
deceased and are being represented by their heirs who are
the contesting respondents in these appeals, owned a vacant
place of land situated at Village Attur in Salem District of
State of Tamil Nadu. They leased out his open place of land
to the defendant by a lease deed styled as Rental Deed dated
01st June 1968. As per the said Rental Deed the defendant
was permitted to put up construction for running a firewood
and fuel depot and a paan shop. The monthly rent was fixed
at Rs.40/- with Rs.200/- as advance deposit. That the said
vacant site of land was also foundation the defendant put up
a thatched building. It was agreed between the contracting
parties that the defendant would remove the structure at the
time of vacating the suit property. The defendant obtained
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licence from Attur Municipality for running a firewood depot
and paan shop in the demised land. The defendant accordingly
remained in possession of the suit land. It is the case of
the defendant that on her request plaintiff nos.1 and 2
agreed to sell the suit property to her in August 1980 at
market rate and received a sum of Rs. 2,000/- as advance.
Her case is that as she was in possession of the suit land
for more that 16 years she did not insist upon receipt for
payment of advance money. The case of the defendant further
is that plaintiff nos.1 and 2 sold the suit land to
plaintiff no.3 for a sum of Rs. 5,600/- on 29th August 1981
by a registered Sale Deed. The defendant further submitted
that all of a sudden on 30th August 1981, that is, the next
day of the purchase of the said property by plaintiff no.3
from plaintiff nos.1 and 2, plaintiffs came with a number of
men and tried to forcibly evict the defendant from the suit
property. Under these circumstances, the defendant filed a
civil suit in July 1981 being O.S.No. 984 of 1981 in the
court of District Munsiff, Attur, praying for a permanent
injunction restraining the plaintiffs from forcibly taking
away the possession of the suit the plaintiffs as a counter-
blast filed a civil suit being O.S.No.453 of 1982 on 02nd
September 1982 in the same court of Attur for eviction of
the defendant and for a direction to the defendant to hand
over vacant possession of the suit property and also for
payment of Rs. 1,000/- by way of arrears of rent. Pending
the said suit defendant filed a written statement on 08th
April 1983 and an additional written statement on 03rd
December 1983 contending that there was an agreement to sell
executed by plaintiff nos.1 and 2 in favour of the defendant
and that bypassing the said agreement the plaintiff nos.1 an
d 2 had illegally tried to sell the property to plaintiff
no.3. The said Sale Deed in favour of plaintiff no.3 was
null and void and the plaintiff no.3 had no title to the
suit land. Along with the additional written statement dated
03rd December 1983 the defendant also filed an application
under Section 9 of the Madras City Tenants’ Protection Act,
1921, hereinafter referred to as the ‘Protection Act’, for
the sake of brevity. Invoking the said provision it was
contended by the defendant that she was entitled to purchase
the suit land over which her structure stood. The said
application was registered in the same court as I.A.No.17 of
1985 in O.S.No. 453 of 1982 which was filed by the aforesaid
three plaintiffs.
As all of these disputes between the parties centered
round the possession for the very same property being the
suit land the plaintiffs’ suit being O.S.No. 453 of 1982,
the defendant’s suit being O.S.No. 984 of 1981 and the
defendant’s application being I.A.No.17 of 1985 under
Section 9 of the Protection Act then were clubbed and were
tried together. The learned Trial Judge after hearing the
parties disposed of all these proceedings by a common
judgment dated 01st August 1988. The learned Trial Judge
took the view that the plaintiffs’ suit was required to be
decreed while the defendant’s suit was required to be
dismissed and defendant’s application under Section 9 of the
Protection Act was also to be dismissed. The learned Trial
Judge held that defendant’s I.A.No.17 of 1985 under Section
9 of the Protection Act could not be sustained as the
defendant had denied the title of the plaintiffs especially
plaintiff no.3. It was also held that the Sale Deed dated
29th August 1981, executed by plaintiff nos.1 and 2 in
favour of plaintiff no.3, was legal and valid and on the
issue of maintainability of the suit filed by the
plaintiffs it was held that notice under Section 106 of the
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Transfer of Property Act, 1882 [‘T.P. Act’ for short] was
not required to be served on the defendant. It is pertinent
to note that though the contention of the defendant in her
application under Section 9 of the Protection Act was to the
effect that the plaintiffs’ suit was not maintainable
against her as notice under Section 11 of the Protection Act
was not served on her, the said contention does not appear
to have been canvassed before the learned Trial Judge at the
stage of arguments. In any case there is no reference to
this contention in the Trial Court’s judgment.
Being aggrieved by the aforesaid common judgment of the
Trial Court the defendant preferred two first appeals before
the Sub-Court, Salem, challenging the decrees passed by the
Trial Court in two cognate suits, one filed by the
plaintiffs against the defendant and another filed by the
defendant against the plaintiffs. She also filed a
Miscellaneous Appeals No.8 of 1990 before the Appellate
Court being aggrieved by the order of the Trial Court by
which her Interlocutory Application under Section 9 of the
Protection Act was dismissed. These two first appeals as
well as the Miscellaneous Appeal were heard together and
were disposed of by a common judgment dated 21st December
1990 by the Appellate Court. The Appellate Court took the
view that the Sale Deed executed by plaintiff nos.1 and 2 in
favour of plaintiff no.3 was a valid and a legal one.
However, it held that the suit filed by the plaintiffs
against the defendant was not maintainable under the
provisions of Section 11 of the Protection Act. It was also
held that the defendant had not denied the title of
plaintiff nos.1 and 2 and, therefore, the application of the
defendant under Section 9 of the Protection Act was
maintainable and was required to be allowed. Consequently
the plaintiffs’ suit was dismissed, defendant’s suit was
decreed and defendant’s application under Section 9 was also
granted.
Against the aforesaid common judgment dated 21st
December 1990 of the First Appellate Court the aggrieved
plaintiffs approached the High Court of Madras in two second
appeals and also b y filling a revision application, as
mentioned earlier. All these three proceedings were heard
together by a leaned Single Judge of the High Court who took
the view, agreeing with the findings of the courts below,
that the Sale Deed executed by plaintiff nos.1 and 2 in
favour of plaintiff no.3 was a valid one. It was also held
that as the defendant had denied title of plaintiff no.3 her
application under Section 9 of the Protection Act was not
maintainable. Submission on behalf of the defendant that the
suit of the plaintiffs was barred by Section 11 of the
Protection Act was repelled by holding that once the
defendant denied the title of the plaintiffs especially
plaintiff no.3 there was no occasion for plaintiff no.3 to
serve any notice to her under Section 11 of the Protection
Act and on such a stand taken by the defendant, the entire
Protection Act was not available to the defendant.
Consequently the judgments and decree passed by the Trial
Court were found to be legal and valid. Accordingly both the
second appeals and the revision application filed by the
plaintiffs were allowed. The common judgment and order of
the First Appellate Court were set aside and the Trial
Court’s judgment, decrees and orders were restored. That is
how the aggrieved defendant, as noted earlier, is before us
in these appeals having obtained special leave to appeal
under Article 136 of the Constitution of India.
Rival Contentions
Learned senior counsel for the common defendant. Shri
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R. Sundaravaradhan vehemently contended that the learned
Single Judge of the Madras High Court had committed a patent
error of law in allowing the second appeals and t he civil
revision application. It was submitted that the defendant
had not denied the title of plaintiff nos.1 and 2 though she
had certainly denied the derivative title of plaintiff no.3
However, it was submitted that at the highest because of
such a denial of title defendant could be said to have
forfeited her tenancy rights which she had qua the
plaintiffs especially plaintiff no.3 who had derived his
title from plaintiff nos.1 and 2 but even in such an
eventuality in view of Section 2 sub-section (4)(ii)(a) of
the Protection Act the defendant could be said to be a
statutory tenant on the determination of tenancy agreement
by forfeiture vis-a-vis the plaintiffs, especially plaintiff
no.3. Hence, plaintiff no.3 who squarely fell within the
definition of the term ‘landlord’ as found in Section 2 sub-
section (3) of the Protection Act could be validly proceeded
against by the defendant under Section 111(g) of the D.P.
Act dealing with determination of lease by forfeiture. It
was also contended that even assuming that there was such a
forfeiture of leasehold rights incurred by the defendant
the said forfeiture was waived by the plaintiffs especially
plaintiff no.3 as laid down by Section 112 of the T.P. Act
by filing the suit O.S. No.453 of 1982 on 02nd September
1982 wherein the plaintiffs treated the defendant as a
tenant and sought eviction by paying appropriate court fee
by valuing the suit in the light of the rent payable by the
defendant-tenant to the plaintiff. Learned senior counsel
for the defendant, however, fairly submitted that so far as
the applicability of Section 112 of the T.P. Act was
concerned no reliance was placed on the said provision in
the courts below including the High Court. However, this
being a pure question of law based on the very averments of
the plaintiffs themselves in their plaint in O.S. No. 453 of
1982 such a plea be considered in the interest of justice.
It was also contended that even assuming that the said
forfeiture was not waived by the plaintiffs the defendant
being a statutory tenant had no longer remained one having
only a personal right to occupy. That her statutory tenancy
right was a heritable one and was an interest in the leased
premises even after determination of the lease. In support
of that contention reliance was placed on judgments of
learned Single Judge of the Madras High Court to which we
will make a reference hereafter and also on two judgments of
this Court, namely Damadilal and others v. Parashram and
others [(1976) Suppl. SCR 645 = AIR 1976 SC 2220]; and Smt.
Gian Devi Anand v. Jeevan Kumar and others [AIR 1985 SC
796]. It was also contended, placing reliance on a decision
of a Bench of two learned judges of this Court in the case
of S.A.Ramachandran v. S. Neelavathy [(1997) 1 SCC 767],
that Section 11 of the Protection Act was of a mandatory
nature and if it was not complied with, the suit would be
clearly barred and had to be dismissed as such. It was also
contended that merely because the defendant had filed an
application under Section 9 of the Protection Act it could
not be said that she had waived her contention regarding
non-compliance of Section 11 of the Protection Act and that
the High Court had patently erred in holding that Section 11
of the Protection Act was not attracted on the facts of the
present case. Learned senior counsel for the defendant also
referred to a decision of the Division Bench of the Madras
High Court in the case of Bhargavakula Nainargal Sangam,
Thiruvannamalai and others v. Arunachala Udayar [(1990)
I.M.L.J. 4] and tried to distinguish it by submitting that
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it had proceeded on a wrong assumption that decision of
this Court in the case of Damadilal (supra) was contrary to
the decision of a larger Bench of this Court rendered in the
case of Jai Singh Murarji and others v. M/s. Sivani (P) Ltd.
and others [AIR 1973 SC 772]. In this connection it was
submitted that the Constitution Bench judgment of this Court
in Gian Devi Anand’s case (supra) which was referred to by
the Division Bench of the High Court in Bhargavakula’s case
(supra) was not at all considered by the said Division
Bench. It was also contended that in the impugned judgment
learned Single Judge of the High Court had wrongly held that
the lease in favour of the defendant was not only of the
land but also of the superstructure, namely, the foundation
over which the defendant had put up a further construction
and, therefore, the building belonged partly to plaintiff
nos.1 and 2 and also partly to the defendant. That such a
question was never argued before the courts below and for
the first time in second appeal such a question could not
have been framed by treating it to be a substantial question
of law arising from the judgments of the courts below. It
was lastly submitted in the alternative that even if it is
held that application under Section 9 of the Protection Act
was not maintainable of least appropriate compensation
should have been given to the defendant under Section 3 of
the Protection Act while confirming the decree for eviction
as passed in favour of the plaintiffs especially plaintiff
no.3 against the defendant.
Repelling these contentions learned senior counsel for
the respondent-plaintiffs, Shri S. Sivasubramanian,
submitted that once it was held that plaintiff nos.1 and 2
had validly sold that suit and to plaintiff no.3 was
required to be upheld, it has to be held that the defendant
consistently denied the title of the real owner of the
property, namely plaintiff no.3. That the said stand was
taken b y the defendant not only in her first written
statement dated 08th April 1983 but also in additional
written statement dated 03rd December 1983 and even in her
application under Section 9 of the Protection Act. Once
such a stand was taken and which was persisted in all
throughout before the first Appellate Court as well as
before the High Court it has to be held that the defendant
had denied the title of the real owner of the property,
namely plaintiff no.3 and as his title was denied there was
no occasion for plaintiff no.3 to serve any notice on the
defendant under Section 11 of the Protection Act as rightly
held by the High Court. It was further submitted that there
was no question of waiver of the forfeiture on the part of
the defendant by the plaintiffs as the plaint itself
proceeded on the basis that defendant had lost the character
as a lessee of the land on account of denial of title of the
plaintiffs especially plaintiff no.3 and merely because the
arrears of rent were prayed for or that the court fees were
computed accordingly in the plaint it could not be said that
the plaintiffs had waived the forfeiture on the part of the
defendant. It was further submitted that on a true
construction of Section 2 sub-section (4) of the Protection
Act it could not be said that the defendant had continued
to be a statutory tenant despite the determination of the
tenancy agreement as the said phrase found in Section 2 sub-
section (4) (ii)(a) would not take in its sweep
determination of lease under Section 111 (g) of the T.P.
Act. That once Section 111(g) of the T.P.Act is found not to
have any nexus with Section 2 sub-section (4)(ii)(a) of the
Protection Act there would be no occasion for the defendant
to claim to be treated as a statutory tenant covered by the
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protective umbrella of the Protection Act. In fact her case
would go out of the fourcorners of the Protection Act.
Consequently neither Section 9 of the Protection Act applied
nor Section 11 thereof can be invoked by the defendant as
rightly held by the High Court. Alternatively it was
contended placing reliance on various judgments of the
Madras High Court, that the defendant could be said to have
waived her contention regarding applicability of Section 11
of the Protection Act by filing application under Section 9
of the Protection Act and by getting the delay in filing
such application condoned and by pressing such application
on merits and even getting it granted at least once by the
Appellate Court. Learned senior counsel for the plaintiffs
also contended placing reliance on three Division Bench
judgments of the Madras High Court, that once the tenant
denied the title of the landlord no benefit under Section 9
of the Protection Act could be available to such a tenant
nor can Section 11 be pressed in service by such a tenant.
We will refer to these judgments at an appropriate place in
the latter part of this judgment. Referring to the decision
of a Bench of two learned judges of this Court in the case
of S.A. Ramachandran (supra), it was contended that in the
said decision there was no denial of title of the landlord
by the tenant and that as in the present case title of
plaintiff no.3 is denied there would remain no occasion for
such a tenant to find fault with the filing of the suit by
plaintiff no.3 for eviction against such a defendant by
submitting that suit was hit by Section 11 of the Protection
Act. So far as the alternative claim for compensation was
concerned it was submitted that once the defendant by her
unequivocal conduct of denying the title of plaintiff no.3
who is the real owner of the property had forfeited the
protection of the Protection Act there would remain no
occasion for her to get the benefit of even Section 3 of the
very same Act. That under these circumstances, as per the
general principles of Transfer of Property Act when suit for
eviction is decreed against her all that she can get is the
right to remove the superstructure put up by her on that
plaintiffs’ land as provided by Section 108(h) of the T.P.
Act tread with Section 109 thereof. It was, therefore,
contended that the common decision of the High Court
impugned in these appeals calls for no interference.
Points for consideration
In view of the aforesaid rival contentions the
following points arise for our consideration :
1. Whether the defendant is entitled to the benefit of the
Protection Act by invoking Section 2 sub-section
4(ii)(a) of the said Act.
2. If yes, whether the suit filed by the plaintiffs being
O.S. No. 453 of 1982 was barred by Section 11 of the
Protection Act and therefore was required to be
dismissed and the suit filed by the defendant being
O.S. No. 984 of 1981 was required to be decreed.
3. Similarly it Point No.1 answered in the affirmative
whether defendant’s application under Section 9 of the
Protection Act being I.A. No. 17 of 1985 in O.S.S 453
of 1982 was required to be allowed.
4. Whether the lease could be said to be not only of the
open land but also partially of a building as held by
the High Court.
5. Whether the defendant is entitled at least to be given
compensation under Section 3 of the Protection Act by
the plaintiffs especially plaintiff no.3 if the decree
for eviction of defendant from the suit and to be
confirmed.
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We shall deal with these points seriatim.
Point No. 1
So far as this points is concerned before going to the
decision of the High Court as well as this Court to which
our attention was invited by learned senior counsel for the
respective parties, it would be appropriate to have a quick
glance at the relevant statutory provisions of the
Protection Act. This Act of 1921 as enacted by the then
Madras Legislature in 1922 being Tamil Nadu Act No. 111 of
1922. It was enacted with an avowed object of giving
protection to certain classes of tenants in municipal towns
and townships and adjoining areas in the State of Tamil
Nadu. The Preamble thereto recited that, whereas it is
necessary to give protection against eviction to tenants,
who in municipal towns and adjoining areas in the State of
Tamil Nadu have constructed buildings on others’ lands, so
long as they pay a fair rent for the land’ and with that
view this Act was enacted. It is not in dispute between the
parties that the suit land is situated in an area where the
aforesaid Act applies. Section 2 of the Protection Act
defines a ‘Building’ as per sub-section (1) thereof to
mean, ‘any building, hut or other structure, whether of
masonry, bricks, wood, mud or metal or any other material
whatsoever used -(i) for residential or non-residential
purposes in the City of Madras, in the municipal towns of
Coimbatore, Madurai Salem and Tiruchirappalli, in the
townships of Kodaikanal, Avadi, Kathiwakkam, Ambattur,
Madhavaram, Bhavanisagar, Courtallam and Mettur, or in such
other municipal towns or township as t he Government may, be
notification, specify, and in any village within eight
kilometres of the City of Madras or of the municipal towns
of township aforesaid’. It is also not in dispute that the
aforesaid definition could be pressed in service for
considering the question whether there was any building on
the suit land as defined by the said provision. The term
‘land’ is defined by Section 2 sub-section (2) as not
including buildings. Thus the Protection Act would apply to
lands which are not having any building thereon. In other
words the Protection Act is to give protection to the
tenants of open lands situated within the areas covered by
the sweep of the Protection Act and who might have put up
their own structures on such open lands. The term ‘Landlord’
is defined by sub-section (3) of Section 2 of the Protection
Act to mean, ‘any person owning any land, and includes every
person entitled to collect the rent of the whole or any
portion of the land. Whether on his own account or on behalf
of or for the benefit of any other person, or by virtue of
any transfer from the owner or his predecessor in title or
of any order of a competent court or of any revision of
law’. Then comes the definition of the word Tenant’ as found
in sub-section (4) of Section 2 of the Protection Act. It is
necessary to reproduce the relevant provisions thereof as
under :
"2.(4) ‘Tenant’ in relation to any
land-
(i) means a person liable to pay
rent in respect of such land, under
a tenancy agreement express or
implied, and
(ii) includes-
(iii) any such person as is
referred to in sub-section (1) who
continues in possession of the land
after the determination of the
tenancy agreement,"
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Sub-clause (b) is not relevant. And then follows sub-clause
(c) thereof which reads as under :
"2.(4)(ii)(c) the heirs of any such
person as is referred to in sub-
clause (i) or sub-clause (ii) (a)
or (ii)(b); but does not include a
sub-tenant or his heirs."
Section 3 of the Act deals with ‘Payment of compensation on
ejectment’. It provides that every tenant shall on ejectment
be entitled to be paid as compensation the value of any
building, which may have been erected by him, by any of his
predecessors in interest, or by any person not in occupation
at the time of the ejectment who derived title from either
of them, and for which compensation has not already been
paid. Section 4 sub-section (1) deals with the procedure to
be followed in suits for ejectment against such tenants when
the landlord succeeds and it lays down that, ‘in a suit for
ejectment against a tenant in which the landlord succeeds,
the court shall ascertain the amount of compensation, if
any, payable under section 3 and the decree in the suit
shall declare the amount so found due and direct that, on
payment by the landlord into court, within three months from
the date of the decree, of the amount so found due, the
tenant shall put the landlord into possession of the land
with the building and trees thereon’. Section 9 deals with
‘Application to Court for directing the landlord to sell
land’. The said Section with its relevant sub-section read
as under :
"9.(1)(a)(i) Any tenant who is
entitled to compensation under
section 3 and against whom a suit
in ejectment has been instituted or
proceeding under section 41 of the
Presidency Small Cause Courts Act,
1882, taken by the landlord, may,
within one months of the date of
the publication of Madras City
Tenants’ Protection (Amendment)
Act, 1979 in the Tamil Nadu
Government Gazette or of the date
with effect from which this act is
extended to the municipal town,
township or village in which the
land is situate, or within one
month after the service on him of
summons, apply to the court for an
order that the landlord shall be
directed to sell for a price to be
fixed by the court, the whole or
part of, the extent of land
specified in the application.
(ii)... ... ... ...
(b) On such application, the court
shall first decide the minimum
extent of the land which may be
necessary for the convenient
enjoyment by the tenant. The court
shall then fix the price of the
minimum extent of the land decided
as aforesaid, or of the extent of
the land specified in the
application under clause (a),
whichever is less. The price
aforesaid shall be the average
market value of the three years
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immediately preceding the date of
the order. The court shall order
that within a period to be
determined by the court, not being
less than three months and not more
than three years from the date of
the order, the tenant shall pay
into court or otherwise as directed
the price so fixed in one or more
instalments with or without
interest.
(2) In default of payment by the
tenant of any one instalment, the
application under clause (a) of
sub-section (1) shall stand
dismissed, provided that on
sufficient cause being shown, the
court may excuse the delay and pass
such orders as it may think fit,
but not so as to extend the time
for payment, beyond the three years
above mentioned. On the application
being dismissed, the court shall
order the amount of the instalment
of instalments, if any, paid by the
tenant to be repaid to him without
any interest.
(3)(a) On payment of the price
fixed under clause (b) of sub-
section (i), the court shall pass
an order directing the conveyance
by the landlord to the tenant of
the extent of land for which the
said price was fixed. The court
shall by the same order direct the
tenant to put the landlord into
possession of the remaining extent
of the land, if any. The stamp duty
and registration fee in respect of
such conveyance shall be borne by
the tenant.
(b) On the order referred to in
clause (a), being made, the suit or
proceeding shall stand dismissed,
and any decree or order in
ejectment that may have been passed
therein but which has not been
executed shall be vacated.
Explanation- ‘Land’ means the
interest of the landlord in the
land and all other interests which
he can convey under any power and
includes also the full interest
which a trustee can convey under
the power possessed by him to
convey trust property when
necessity exists for the same or
the alienation of the property is
for the benefit of the estate or
trust."
The next Section which is relevant for our present
purpose is Section 11 which reads as under :
"11. Notice before institution of
suits or applications against
tenants. No suits in ejectment or
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applications under section 41 of
the Presidency Small Cause Courts
Act, 1882, shall be instituted or
presented against a tenant until
the expiration of three months next
after notice in writing has been
given to him requiring him to
surrender possession of the land
and building, and offering to pay
compensation for the building and
trees, if any, and stating the
amount thereof.
A copy of such notice shall at the
same time be sent, in the case of
property situated in the City of
Madras, to the Commissioner of the
Corporation of Madras, or, in the
case of property situated in any
municipal town, township or village
to which this Act is extended, to
the executive authority of the
municipality or township or the
executive officer of the panchayat,
as the case may be or any other
authority as may be notified by the
Government."
It is also necessary to refer to Section 13 of the
Protection Act which lays down as under :
13. Restriction on the application
of the Transfer of Property Act. In
its application to the City of
Madras, and to any municipal town,
township or village to which this
Act is extended the Transfer of
Property Act. 1882, shall, to the
extent necessary to give effect to
the provisions of this Act, be
deemed to have been repealed or
modified."
The aforesaid relevant provision of the Protection Act
clearly indicate that lessees of open lands situated in
areas governed by the Protection Act, who might have put
their structures on the open lands are conferred certain
statutory rights against their landlords by this Act. When
such lessees of open lands are sought to be evicted in
proceedings filed by their landlords in any competent court,
the Protection Act has given them two statutory rights - (i)
either they get the demised lands covered by their
structures sold to them under Section 9 of the Protection
Act ; or (ii) if Section 9 of the Protection Act is not
available at least they would be entitled to get
compensation under Section 3 regarding value of the
structure which may, on execution of the decree for eviction
from open lands, get vested in the landlords. Thus in either
case the Protection Act gives them the right to purchase the
demised lands or alternatively to get their structures sold
to the landlord-decree holders. These statutory rights
represent a scheme of shield of protection made available to
such tenants vis-a-vis their landlords and once this shield
is available the other statutory protections contemplated by
Section 11 and 13 of the Protection Act also would be
available to them.
It has, therefore, to be seen whether the defendant who
claims the benefit of the Protection Act falls within the
definition of the term ‘tenant’ as found in Section 2 sub-
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section (4) of the Protection Act. As the defendant’s
tenancy was terminated at the relevant time when the suit
was filed by the plaintiffs against her, Section 2 sub-
section (4)(i) did not apply in her case. On this aspect
there is no dispute between the parties. However learned
senior counsel for the defendant heavily relied upon the
second part of the said definition of the term ‘tenant’
namely, that it would include any such person as is referred
to in sub-clause (i) who continues in possession of the land
after the determination of the tenancy agreement. In this
connection it was submitted that the tenancy agreement stood
determined qua her in view of Section 111(g) of the T.P. Act
by forfeiture as it is alleged that the lessee defendant had
renounced her character by setting up a title in third
persons like the State Government or plaintiff nos.1 and 2
who had become total strangers qua the suit land after the
Sate Deed dated 29th August 1981. She had incurred
forfeiture of tenancy rights as she denied the title of
plaintiff no.3 and had also claimed that she was entitled to
remain in possession pursuant to an agreement to sell
entered into by plaintiff nos.1 and 2 with her. Once that
happened the contractual lease got determined by forfeiture
and as she continued in possession of the land thereafter
she could be said to be a statutory tenant entitled to the
benefit of the definition ‘tenant’ as found in Section 2(4)
of the Protection Act.
The aforesaid submission prima facie appeared to be
attractive but on a closer scrutiny it is found to be
falling through as we will presently see. The scheme of the
Protection Act as seen above furnishes an umbrella of
statutory protection to the tenants of open lands who might
have put up construction by incurring substantial costs.
When they are sought to be evicted from these leased open
lands, amongst others, two basic statutory protections are
made available - they can either enforce their statutory
right or pre-emption of purchasing the land below their
structure; or can enforce the statutory right of
compensation to be paid to them in connection with the
structure which may travel with the deemed land of the
decree-holder landlord in case the suit gets decreed against
them. These alternative statutory rights of protection are
made available by the legislature to the contractual tenants
and/or to the statutory tenants who by themselves have
behaved as tenants and who on determination of contractual
tenancy continue to remain in possession. In either case if
the landlord determines the tenancy agreement such tenants
cannot be said to have lost the statutory protection of the
Act. Consequently, on the express language of Section 2 sub-
section(4)(ii)(a) of the Protection Act it must be held that
the determination of tenancy agreement as envisaged by the
said provision would be such determination as is referable
to the unilateral act or omission on the part of the
landlord which results in determination of the lease
agreement for no fault of the lessee-tenant. It is under
these circumstances that the statutory benefit available to
such tenants either contractual or statutory would stand
guaranteed by the legislative scheme envisaged by the
Protection Act. In this connection when we turn to Section
111 of the T.P. Act on which reliance was placed by learned
senior counsel for the defendant we find that the said
provision deals with various modes of determination of
lease. They are found from clause (a) to (h) as under :
"111. Determination of lease. - A
lease of immovable property
determines.
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(a) by ettlux of the time limited
thereby.
(b) where such time is limited
conditionally on the happening of
some event - by the happening of
such event.
(c) where the interest of the
lessor in the property terminates
on, or his power to dispose of the
same extends only to, the happening
of any event by the happening of
such event.
(d) in case the interests of the
lessee and the lessor in the whole
of the property become vested at
the same time in one person in the
same right.
(e) by express surrender; that is
to say, in case the lessee yields
up his interest under the lease, to
the lessor by mutual agreement
between them.
(f) by implied surrender.
(g) by forfeiture; that is to say.
- (1) in case the lessee breaks an
express condition which provides
that, on breach thereof, the lessor
may re-enter; or (2) in case the
lessee renounces his character as
such by setting up a title in a
third person or by claiming title
in himself; or (3) the lessee is
adjudicated an insolvent and the
lease provides that the lessor may
re-enter on the happening of such
event; and in any of these cases
the lessor or his transferee gives
notice in writing to the lessee of
his intention to determine the
lease.
(h) on the expiration of a notice
to determine the lease, or to quit,
or of intention to quit, the
property leased, duly given by one
party to the other."
These diverse modes of determination of lease as found in
Section 111 show that the landlord’s act or volition which
results into determination of lease can be ascribed to modes
(a) and (h) of Section 111 of the T.P. Act. A landlord who
enters into a contractual lease with tenant of open land may
allow the lease period to peter out and get exhausted and
may no renew the lease. Thus by omission on the part of the
landlord the lease gets determined by efflux of time as per
Section 111 (a) of the T.P. Act. Similarly as per Section
111 (h), by an express act of giving notice to determine the
lease or to quit on the part of the landlord of such open
land, the lease would get determined. It is of course true
that Section 111 (h) of the T.P. Act contemplates
determination of lease by notice to determine or to quit
that may be given either by the landlord or by the tenant
but in the context of Section 2 (4) of the Protection Act
such determination of lease of open land under Section
111(h) of the T.P. Act would necessarily be limited to the
notice to quit given by the landlord of such open land and
not by his tenant as if the tenant gives notice to determine
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the lease or to quite there would remain no occasion for him
to claim any protection under the Protection Act by
submitting that he remains a statutory tenant as he will not
be continued in possession thereafter by his own act. It
must, therefore, be held that an erstwhile tenant of a
contractual lease of land who can be said to be covered by
the inclusive part of the definition of the term ‘tenant’ as
found under Section 4(ii) of the Protection Act is one who
has continued in possession of the land after his tenancy
agreement is determined either under Section 111(a) of the
T.P. Act by the omission of the landlord to renew the lease
and, therefore, it gets determined by efflux of time or on
the expiry of notice to quit given by the landlord to the
tenant as per Section 111(h) of the T.P. Act. Save and
except these two modes of determination of tenancy agreement
as envisaged by Section 111 of the T.P. Act, no other modes
found in clause (b) to (g) of Section 111 can even be said
to be contemplated as attracted for getting telescoped in
Section 2 sub-section (4)(ii)(a) of the Protection Act for
consideration of the scope of the phrase ‘determination of
tenancy agreement’ as employed therein. Consequently it must
be held that the mode of determination of lease agreement by
forfeiture as envisaged by Section 111(g) of the T.P. Act is
foreign to the scope of the definition of the term ‘tenant’
as found in Section 2 (4) of the Protection Act.
This conclusion on the statutory scheme of the
Protection Act in the light of the definition of the term
‘tenant’ as found in sub-section (4) of Section 2 of the
Protection Act gets further buttressed by the combined
operation of Section 9 and 13 of the Protection Act. Section
9 of the Protection Act enables the tenant of the open land
to enforce his statutory right of compulsory purchase of the
leased land below his structure. Once the tenant incurs
forfeiture of the lease under Section 111(g) of the T.P. Act
by renouncing his character as tenant of the landlord by
setting up a title in third person or in himself there would
be no occasion for such a tenant to invoke Section 9 as
Section 9 by itself pre-supposes that the tenant must accept
the owner of the land as landlord and against whom he can
claim appropriate relief by offering to purchase the land
over which his structure stands on payment of price fixed by
the court to such landlord who then has to convey his right,
title and interest in the land in favour of such tenant
owning the structure. Consequently it must be held that for
operation of Section 9 an admitted relationship of landlord
and tenant must exist. If the tenant alleges that landlord
is not the real owner of the property but somebody else is
the owner or he himself is the owner there would remain no
occasion for him to offer any price of such land to such
landlord whom he treats as a stranger to that land. On such
a stand taken by the tenant of the open land there would
also remain no occasion for the so-called landlord to accept
the price of the land and to convey his right, title and
interest in the land pursuant to the order of the court to
such tenant. In this connection Section 13 of the Protection
Act is also required to be noted. If Section 9 can apply
only when there is admitted relationship of landlord and
tenant, contractual or statutory, between the parties, once
such relationship is contra-indicated by denial of title of
landlord by the tenant and consequently mode of
determination of tenancy under Section 111 (g) is attracted,
its applicability by itself will nullify and make Section 9
inoperative in such a case. In that eventuality as per
Section 13 of the Protection Act, such a provision of
Section 111(g) of the T.P. Act, has to be treated as
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repealed. Section 9 and 13 of the Protection Act leave no
room for doubt that to the extent to which the provisions of
the Transfer of Property Act cut across the operation of
Section 9 the said provisions have to be treated to be
repealed or modified so as to make the provisions of Section
9 fully effective. Therefore, on a conjoint reading of
Section 2(4), Section 9, and Section 13 of the Protection
Act, it has to be held that determination of tenancy as
envisaged under Section 111(g) of the T.P. Act by forfeiture
cannot get telescoped into Section 2 sub-section (4) of the
Protection Act must be deemed to have been repealed or
modified by the express provisions of Section 9 and 13. In
this connection one more contention of learned senior
counsel for the respondents deserves to be noted. Section
111(g) of the T.P. Act also contains a mode of forfeiture of
tenancy by insolvency of tenant. In such a case an insolvent
tenant can never by himself seek protection of Section 9 of
the Protection Act as his estate is represented by receiver
in insolvency operating under the orders of the Court. If
learned senior counsel for the defendant is right in his
submission that Section 111(g) of the T.P. Act has to be
read with Section 2(4)(ii)(a) of the Protection Act, that in
such a case of insolvency of tenant, which results into
determination of lease by forfeiture. Section 9 can never be
pressed in service by such an insolvent tenant. This is an
additional reason for ruling out the applicability of
Section 111(g) of the T.P. Act to the provisions of Section
2(4)(ii)(a) of the Protection Act. Once that conclusion is
reached, it is obvious that the defendant in the present
case who has admittedly and consistently denied the title of
plaintiff no.3 cannot get any protection of statutory
tenancy as envisaged by Section 2 sub-section (4)(ii)(a) of
the Protection Act. In other words she gets out of the
protective umbrella of the Protection Act meaning thereby
she can neither claim benefit of Section 9 against plaintiff
no.3 nor can she enforce Section 3 thereof against plaintiff
no.3. It has also to be noted at this stage that there are
two concurrent findings of all the courts below that
plaintiff nos.1 and 2 have validly entered into a sale
transaction of the suit land in favour of plaintiff no.3 and
their Sale Deed dated 29th August 1981 is valid and
operative in law. Once that conclusion stares in the face of
the defendant it must be held that the Protection Act can be
enforced if at all by the defendant only against plaintiff
no.3 and once she consistently says that plaintiff no.3 is a
total stranger to this land there would remain no occasion
for her to get the protection of any of the provisions of
the Protection Act. Qua plaintiff no.3 she could not be said
to be a statutory tenant. Learned senior counsel for the
defendant however, was right when he contended that the
definition of the term ‘landlord’ as found in Section 2(3)
of the Protection Act would include even a transferee of the
original landlords who were the lessors, namely, plaintiff
nos. 1 and 2. However, that by itself would not advance the
case of the defendant as even if plaintiff no.3 is treated
to be the landlord of the land qua defendant he cannot be
the landlord of the demised land for the purpose of the
Protection Act as the defendant does not accept him to be so
and treats him consistently as a stranger and a non-entity.
It must, therefore, be held that on account of t he
forfeiture of tenancy incurred by defendant vis-a-vis
plaintiff no.3 by denying his title she had walked out of
the protective umbrella of the Protection Act and the
tenancy agreement in her favour which was executed by the
erstwhile owners/landlords plaintiff nos.1 and 2 cannot be
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said to have been determined by plaintiff no.3 so as to
enable the defendant to claim the benefit of the said
determination qua the former.
Once it is held that determination of tenancy agreement
as envisaged by Section 2 sub-section (4)(ii)(a) of the
Protection Act does not contemplate determination of lease
under Section 111(g) of the T.P. Act there would remain no
occasion to even invoke Section 112 of the T.P. Act as tried
to be pressed in service by learned senior counsel for the
defendant. The reason for the said conclusion is obvious.
Section 112 of the T.P. Act was never pressed in service by
the defendant before the Trial Court, the Appellate Court or
the High Court. Even that apart Section 112 clearly refers
to forfeiture under Section 111(g). Once that provision does
not get attracted under the scheme of the Protection Act, as
seen above, it has to be held that Section 112 as a
corollary to Section 111(g) also would not get attracted to
the facts of the present case. But even otherwise on a mere
reading of the plaint filed by the plaintiffs against the
defendant and to which our attention was invited by learned
senior counsel for the defendant it could not be said that
the plaintiffs especially plaintiff no.3 had waived the
forfeiture on the part of the defendant. In the plaint of
O.S.No. 453 of 1982 filed by the plaintiffs against the
defendant it has been averred in paragraph 7 as under :
"VII. The lease period was over on
6 1969 and t he continuation of the
lease was with the consent of
Plaintiffs 1 an d 2. But the
defendant did not act as per terms
and conditions of the lease
agreement. The defendant had agreed
to obtain Municipal and other
Licences in the name of the
Plaintiffs the terms of Agreement.
Further in her notice she had
denied the Plaintiff of Plaintiff 1
and 2 by saying that the vacant
site belonged to the Government and
hence a road Poramboke. Hence the
defendant had clearly denied the
title of the Plaintiffs. For the
above said reasons the defendant
had forfeited her right to continue
as tenant nor she is entitled to
continue in possession of the suit
property. The plaintiffs also sent
a second notice dated 7-7-82 by
narrating the facts and later
developments which was acknowledged
by the defendant on 17.7.82
demanding the arrears of rent
accrued upto date and also for
vacant possession but the same was
not complied with so far. Hence
this suit."
Consequently even if arrears of rent are prayed for at the
rate of Rs. 50/- per month from 01st April 1981 to 01st
September 1982 amounting to Rs. 1,000/- and even if court
fees are paid under Section 22 of the Court Fees Act on the
basis of the monthly rent it could not be said that the
plaintiffs had waived the forfeiture incurred by the
defendant so as to attract Section 112 of the T.P. Act even
independently of the moot question whether Section 112 could
ever be invoked when Section 111(g) itself is not attracted
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on the facts of the present case as seen earlier.
As a result of the aforesaid conclusion of ours, it
becomes obvious that Section 9 of the Protection Act cannot
be of any assistance to the defendant. It is interesting to
note that in the first written statement dated 08th April
1983 filed by the defendant in plaintiffs’ suit no 453 of
1982 the following pertinent averments were made in
paragraphs 2, 3, 4 an d 5 as under :
"2. The allegation in para 3 of the
plaint that this suit property at
present belong to the Plaintiff 1
and 2 earlier. The further
allegation that this defendant has
become the tenant in respect of the
suit property while it was a vacant
site on a monthly rent of Rs.
1.6.68 under plaintiff 1 and 2 are
true an d further allegation that
the suit properties was leased out
to the defendant for dealing with
firewood and a fuel depot and true
an d further allegation that the
monthly rent was enhanced to Rs.
50/- per month. The allegation of
reckoned and payment are also true.
The further allegation that this
defendant had defaulted from 1.4.81
and was giving evasive replies are
absolutely false.
3. The allegation in para 4 of the
plaint that this third Plaintiff
had purchased the suit properties
on 24.8.81 for true an d valid
consideration and was put in
symbolical possession are
absolutely false and the alleged
demand of rent by the third
defendant is also false. This
alleged purchase on the third
defendant was only sham and nominal
and this third defendant has no
sufficient means to purchase this
properties.
4. The allegation in para 5 of the
Plaint about the filing of the suit
against the Plaintiff 1 to 3 in
O.S. 984/81 on the file of this
Hon’ble Court and of obtaining as
order of ad interim injunction in
I.A. 1311/81 restraining the
plaintiff from any way interfering
with the peaceful possession and
enjoyment of this defendant are all
true. It is false to allege that
the pendency of the above suit is
not an impediment to the
institution of this suit. This suit
is unsustainable in law and has
been maliciously filed in order and
to detract the proceedings. This
plaintiff has chosen the wrong form
instead of filing the suit in rent
control proceedings. The alleged
arrears of rent from 1.4.81 to
1.9.82 are absolutely false. The
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alleged notice dated 11.6.82
issued by the Plaintiffs has been
suits by replied on 17.6.82 with
true and correct particulars.
5. The Plaintiffs 1 and 2 have
entered into an agreement with this
defendant to sell away the suit
property to this defendant for
Rupees five thousand and had
received an advance of Rs. 2000/-
and the balance of Rs. 3000./- is
to be paid to the Plaintiffs 1 and
2 on the date of the execution of
sale deed by them."
Similarly even in the additional written statement filed on
93rd December 1983 the very same contentions were repeated
in paragraph 4 as under :
"4. In August 1980 the plaintiffs 1
and 2 agreed to sell the suit house
site to defendant for Rs. 5000/-
orally and received from her an
advance of Rs. 2000/- as part
purchase payment without giving any
receipt for the same and assured
her that they would execute
registered sale deed on her paying
the balance of Rs. 3000/-. But,
later they seemed to have brought
about a fraudulent, sham and
nominal sale deed in favour of
their agent and friend the 3rd
plaintiff without the knowledge and
intimation to the defendant."
And thereafter in para 6 of the said additional written
statement Section 9 of the Protection Act was also invoked
only against plaintiff nos.1 and 2 in the following terms :
"6. As per the provisions of the
Madras City Tenant’s Protection
Act, particularly Section 9, and as
per the defendant’s Oral Agreement
with the plaintiffs 1 and 2, the
defendant is willing and ready to
purchase the sum land by paying
them the balance of Rs.3000/-,
having paid the advance part
purchase price of Rs.2000/- to them
in August 1980. However, the
defendant is prepared to pay such
price as this Honourable Curt may
be pleased to fix taking into
account the alleged sale deed dated
29.8.81 for Rs. 5600/- by the
plaintiffs 1 and 2 to the 3rd
plaintiff. Without prejudice to the
above averments, the defendant is
taking steps to deposit into State
Bank or Court the balance amount to
be fixed by the Honourable Court,
tentatively Rs. 3600/-."
The said written statement dated 03rd December 1983 was
accompanied by an application under Section 9 of the
Protection Act being I.A. No. 17 of 1985 of even date moved
by the defendant. Therein also similar stand was adopted
denying the title of plaintiff no.3 claiming statutory right
of preemption and compulsory purchase of the suit land only
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from plaintiff nos.1 an d 2. Paragraphs 7 and 8 of the said
application moved under Section 9 also deserve to be noted
at this stage.
"7. In August 1980 the respondents
1 an d 2 agreed to sell the suit
house site to me for Rs. 5,000/-
orally and received an advance of
Rs. 2,000/- from me without giving
any receipt for the same and
assured me that they would execute
registered sale deed on my paying
the balance of Rs. 3,000/-. But,
later they seemed to have brought
about a fraudulent, sham and
nominal sale deed in favour of
their agent and friend the 3rd
respondent without my knowledge and
any intimation to me by them. As
stated in para 4 above the
respondents have filed this suit
without giving me and the Attur
Municipal Commissioner 3 months
notice for eviction and without
offering compensation for the
superstructure on the suit land as
per the provisions of Section 11 of
the Madras City Tenants Protection
Act, the sale of the suit land and
their suit are against the
mandatory provisions of law and are
unsustainable in law.
8. As per the provisions of the
City Tenants Protection Act,
particularly section 9 and as per
my oral agreement with the
respondent 1 and 2 noted in para 7
above, I am ready and willing to
purchase the suit land by paying
the balance of Rs. 3,000/- having
paid the advance of Rs. 2,000/- to
them in August 1980. However, I am
prepared to pay such price as this
Honourable Court may be pleased to
fix taking into account the sale
deed dated 29.8.81 for Rs. 5600/-
by the respondents 1 and 2 in
favour of the 3rd respondent.
Without prejudice to the above
averments. I have deposited Rs.
3,600/- for the balance of sale
price in the State Bank. Hence, the
Honourable Court should be pleased
to order the respondents to sell
the suit land to me for the price
to be fixed by the Honourable
Court."
It, therefore, becomes clear that consistently the
defendant’s stand was that plaintiff no.3 is a non-entity
and she claimed statutory right of purchase under Section 9
of the Act only against plaintiff nos.1 and 2. Once
plaintiff nos.1 and 2 a re found to have validly sold the
suit land to plaintiff no.3 it must obviously be held that
application moved by defendant under Section 9 against total
strangers like plaintiff nos.1 and 2 was liable to be
dismissed as totally incompetent and uncalled for. Once the
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defendant refused to admit the ownership of plaintiff no.3
who might have become the landlord of the land as per
Section 2 sub-section (3) of the Protection Act as a legal
transferee of the suit land from plaintiff nos.1 and 2 the
conclusion becomes inevitable that the defendant’s
application under Section 9 against the strangers like
plaintiff nos.1 and 2 would be rendered totally incompetent
as the defendant did not want any statutory right of
compulsory purchase against the real owner of the suit land,
namely, plaintiff no.3.
It is now time for us to have a look at the decisions
of this Court and of the Madras High Court to which our
attention was invited by learned counsel for the contesting
parties.
In the case of Bhargavakula Nainargal (supra), a
Division Bench of the High Court referring to two earlier
Division Bench judgments of the same High Court in the case
of V. Madhava Rao Naidu v. Sri Gangadeswarar Temple by
frustees Sabapathi Pillai and
others [(1946) 2 M.L.J. 285] as well as in the case of
Veeraswamy Naicker and another v. Alamelu Ammal and others
[(1965) 2 M.L.J. 188] and other decisions of the Court, took
the view that the definition of ‘tenant’ found in Section
2(4) of the Protection Act is an inclusive definition
couched in wide language and a combined reading of sub-
clauses (i) and (ii) of sub-section 2(4) makes it clear that
only the person liable to pay rent in respect of the land in
his occupation would be entitled to t he benefits under that
provision. The liability to pay rent must be made out and
agreed to between the parties. To put it in other words
Section 2 applied to a case where there was a relationship
of landlord and tenant up to the point of determination of
tenancy. It is only in such cases, the Statute comes to the
rescue of such tenant and confers on him the benefits of the
Act. By no stretch of imagination it will apply to a case
where the tenant denies the said decision that the language
of sub-section (ii)(a) of sub-section (4) of Section 2 makes
it amply clear that a persons who does not claim that there
was an agreement of tenancy at the relevant point of time is
not entitled to claim any benefit under this provision. It
is also observed in this connection that the Act in question
is intended to give protection against the eviction of
tenants who have constructed buildings on other’s land so
long as they pay fair rent for their lands. Therefore, the
basic requirement for invoking the provisions if the Act is
that the ownership and tenancy rights must vest in different
persons. Once a person claims ownership in himself, the
question of tenancy does not arise for consideration. The
aforesaid Division Bench Judgments of the same High Court,
as mentioned above. In our view, on the scheme of the
Protection Act which we have considered the aforesaid
conclusion to which the Division Bench reached is quite
justified and well sustained. However learned senior counsel
for the defendant vehemently contended that certain
observations made by the Division Bench in para 25 of the
Report in connection with the principle enunciated by this
Court in Damadilal’s case (supra) are not justified. To that
extent learned senior counsel for the appellant-defendant is
right. The Division Bench in the aforesaid decision has
observed that it is doubtful whether the principle
enunciated in the Damadilal’s case (supra) would apply in
view of the decision of a large Bench of this Court in Jai
Singh Murarji (supra) which was a Bench of four learned
Judges. Learned senior counsel for the Constitution Bench of
this Court in the case of Gian Devi Anand (supra) which had
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taken the view that heirs of a statutory tenant are also
entitled to the protection of the Rent Act and they cannot
be said to have no interest in the leased premises. But even
if it is held that to that extent the observations of the
Division Bench in Bhargavakula Naingraal (supra) may not be
strictly accurate or well borne out it would not affect the
ratio of the judgment of the Division Bench in that case in
the light of the statutory scheme examined by them and which
has been found by us to be well sustained. In this
connection it h as to be kept in view that the decision of
the Constitution Bench of this court in the case of Gian
Devi Anand (supra) which had taken the view that statutory
tenant has not a mere personal right to occupy the premises
and the heirs of such statutory tenant have a statutory
interest in the premises in the light of the statutory
scheme which protects them cannot strictly be of any
relevance for deciding the controversy in the present case.
The Act with which we are concerned clearly affords
protection to the heirs of the statutory tenant covered by
sub-clauses (ii)(a) and (b) of sub-section (4) of Section 2
of the Protection Act defining ‘tenant’ as seen from the
express provisions of sub-clause (c) thereof. Under these
circumstances, therefore, the judgment rendered by a learned
Single Judge of the Madras High Court Ratnam,J. in the case
of P. Nachimuthu Mudallar v. M. Ponnuswamy [93 Law Weekly
874] was rightly not accepted, as laying down correct law by
the Division Bench of the Madras High Court in Bhargavakula
Nainargal (supra). The reason is obvious, Justice Ratnam
took the view that because a statutory tenant has not a mere
personal right to occupy and his heirs also can get the
statutory protection as per the relevant provisions of the
Rent Acts as laid down by this Court in Damadilal’s case
(supra) even though such a tenant incurs forfeiture by
denying the title of the landlord he would still be covered
by the sweep of Section 2 sub-section (4) of the Protection
Act. This view is clearly contra-indicated by the scheme of
the Protection Act as seen by us earlier. It is difficult to
appreciate how Ratnam,J. could persuade himself to hold that
even if the tenant forfeits the leasehold rights by denying
the title of the landlord he could still get the benefit of
Section 9 of the Protection Act. Such a conclusion on the
Scheme of the Protection Act, as were have seen above,
cannot be sustained. Consequently, reliance placed by the
learned senior counsel for the appellant-defendant on the
decision of Ratnam,J. in the case of P. Nachimuthu (supra)
cannot b e of any avail to him. Our attention was also
invited by the learned senior counsel for the defendant to
two decisions of learned Single Judges of the same High
Court, namely, V. Ramaswami, J., in the case of R.
Govindaswamy v. Bhoopalan an d others [(1977) 2 M.L.J. 206]
as well as that of Sethuraman, J., in the case of Kandaswami
Gounder v. Kandasamy Gounder son of Subbiah Gounder reported
in 1979 L.W. 510. The said decision also cannot be of any
assistance to him as the learned judges in those two cases
were not dealing with any situation wherein the tenant had
denied the title of the landlord and still sought protection
of the Protection Act. Such a situation did arise for
consideration before Ratnam,J, whose decision, as we have
seen above, cannot be said to be laying down good law in the
light of the statutory scheme considered and discussed b y
us earlier. On the other hand earlier two decisions of the
two Division Benches of the Madras High Court which are
referred to by the latter Division Bench in the case of
Bhargavakula Nainargal (supra) correctly interpret the
scheme of the Protection Act in the light of the moot
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question whether a tenant who denies the title of the
landlord can ever get the benefit of the protective umbrella
of the Protection Act enacted by the legislature as a shield
for the tenants of open lands. On the other hand learned
senior counsel for the plaintiffs invalid our attention to
two decisions of Srinivasan,J. (as he then was), in the case
or Subbaroyan and another v. Devadas Nadar [1991 (2) L.W.
355] and in the case of Bhargavakula Nainargal Sangam,
Tirvanamalai, rep. by its present President , Dandapani v.
Chakravarthi [1992 (1) L.W. 254]. The learned judge in those
cases had taken the view that a tenant who denies the title
of the landlord would not be entitled to get the benefit of
the provisions of the Protection Act. In our view, the said
decisions of the learned Single Judge of the High Court
also are well sustained on the statutory scheme of the
Protection Act as discussed by us earlier. The first point
for determination therefore, has to be answered in the
negative against the appellant-defendant and in favour of
the respondent-plaintiff.
Point No. 2
So far as this Point is concerned once t he conclusion
on the first point is in the negative it necessary follows
that there was no occasion for plaintiff no.3 who is the
real owner and landlord of the suit land to issue notice
under Section 11 of the Protection Act to the defendant who
did not accept him as the owner of the property. As we have
seen earlier Section 11 contemplates three months’ notice to
be given to the tenant requiring him to surrender possession
of the land and building, and offering to pay compensation
for the building to the defendant calling upon her to
surrender possession, of the land and building put up by the
defendant, to him when the defendant does not accept
plaintiff no.3 to be the owner of the land. It would be a
sheer exercise in futility for plaintiff no.3 to give such a
notice to the defendant who dies not accept him to be the
landlord. On the scheme of the Protection Act, therefore, if
must be held that Section 11 can be pressed in service only
when the tenant accepts the plaintiff as his landlord and
against whom he claims protection and benefit both under
Section 9 as well as under Section 3 of the Protection Act.
The High Court, therefore, was right when it took the view
that once the defendant denied the title of plaintiff no.3
who is the real owner of the property she would get out of
the Protection Act and none of the provisions of the said
Act can ever be pressed in service by the defendant as a
shield of protection against the real owner of the property,
namely, plaintiff no.3. In other words defendant by her own
act has given up the shield of protection envisaged by the
legislature for such tenants of open lands. Thus nine of the
provisions of that Act could be invoked by defendant against
plaintiff no.3. As the defendant was not a tenant covered by
the definition of the said term under Section 2 sub-section
(4) of the Protection Act, neither Section 9 nor Section 3
of Section 11 could be pressed in service by her against
plaintiff no.3 for non-suiting the latter. On this
conclusion of ours there would arise no question of applying
the ratio of the decision of a Bench of two learned Judges
of this Court in the case of S.A. Ramachandran (supra). In
that case the tenant had not denied the title of the
landlord, in that suit filed by the landlord against the
tenant of the open land when there was admitted relationship
of landlord and tenant between the parties the tenant had
alleged that the suit was bad on account of non-compliance
of Section 1 1 of the Act. It was found that the application
under Section 9 of the Protection Act moved by the tenant
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was barred by time resulting into a situation in which it
could be held that the tenant had never filed such an
application for decision on merits. On these facts it was
held by this Court that Section 11 was mandatory in nature
and hence the suit filed by the landlord against the tenant
who had not denied t he title of the landlord, in the
absence of such notice, was clearly incompetent. It is true
that in case this Court kept the question of waiver of such
notice under Section 11 open but as t he relationship of
landlord and tenant was not denied in that case Section 11
got squarely attracted on the facts of that case. We fail to
appreciate how the said decision can be of any assistance to
the learned senior counsel for the defendant on the facts of
the present case. As the defendant in the present case had
consistently denied the title of plaintiff no.3 who is the
real owner of the property there would remain no occasion
for plaintiff no.3 to give any notice under Section 11 to
such a recalcitrant tenant. Under these circumstances,
therefore, the ratio of the aforesaid decision of this Court
is of no avail to the defendant. Consequently it is not
necessary for us to examine the wider question whether the
defendant can be said to have waived the requirement of
statutory notice Under Section 11 of the Protection Act. It
is equally not necessary for us to examine the further
question whether the defendant by moving an application
under Section 9 and getting delay in filing such application
condoned could be said to have waived the requirement of
statutory notice Under Section 11 of t he Protection Act
when such a contention was raised in the additional written
statement filed by her before the Trial Court and such an
issue was successfully pressed in service before the
Appellate Court and was also on the anvil of scrutiny before
the High Court. Question of waiver would have arisen for
serious consideration in the present case if it was found
that Section 11 was applicable to the facts of the present
case but as we have found that the defendant by her own act
by denying the title of plaintiff no.3 who is the real owner
had walked out of the protective umbrella of the Protection
Act none of the provisions of the said Act could be
effectively pressed in service by her including Section 11
as rightly held by the High Court. Point No. 2, therefore,
has to be answered in the negative by holding that the suit
filed by the plaintiffs especially plaintiff no. 3 against
the defendant was not barred by Section 11 of the Protection
Act as the said Section did not apply to such a suit and
consequently the suit filed by the defendant was also not
required to be decreed.
Point No. 3
So far as this point is concerned, as seen earlier, the
application under Section 9 of the protection Act itself was
ex facie incompetent. That application was not moved by the
defendant against the real owner of the property, namely,
plaintiff no.3. In fact as noticed by us earlier the
relevant averments in the said application show that the
defendant was not claiming any right of statutory purchase
of the land vis-a-vis plaintiff no. 3 who was the real owner
of the land. She was claiming such rights against plaintiff
nos.1 and 2 who were total strangers to the land having sold
the land to plaintiff no.3 as the sale deed in favour of
plaintiff no.3 is found to be legal and valid by all the
courts below. Therefore, it must be held that the defendant
moved an application under Section 9 of the Protection Act
for compulsory purchase of the land against total strangers,
plaintiff nos. 1 and 2 and did not file such application
against the real owner and landlord, plaintiff no.3. Such an
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application, therefore, must be held to be still-born and
totally incompetent. It was required to be dismissed and was
rightly dismissed by the Trial Court as well as by the High
Court and was wrongly allowed by the First Appellate Court
which almost granted in the guise of allowing Section 9
application a decree for specific performance of the
agreement to sell said to have been executed by plaintiff
nos.1 and 2 in favour of the defendant and which agreement
was held by the lower appellate court itself to be not
established on the record of the case. As Point No. 1 is
answered in the negative and even otherwise as application
of defendant under Section 9 is found to be incompetent and
misconceived it must be held that it was rightly rejected.
The decision of the High Court in that connection has to be
upheld. Point No. 3 is accordingly held against the
appellant-defendant and in favour of the respondents.
Point No. 4
So far as this point is concerned learned senior
counsel for the appellant-defendant is on a stronger
footing. The Rental Deed to which we have made a reference
earlier clearly refers to the lease of open land granted to
the defendant by plaintiff nos. 1 and 2, original owners. Of
course there was some granite foundation in a part of the
open land leased under the Rental Deed but that foundation
would not attract the definition of the term ‘building’ as
defined by Section 2 sub-section (1) of the protection Act
for the simple reason that the said structure was not shown
to have been used for residential or non-residential
purpose. It is nobody’s case that the granite foundation by
itself was being used by anyone for residential or non-
residential purpose. On the contrary on that foundation the
defendant is found to have put up a structure and it was
that structure over the foundation that was being used for
non-residential purpose of running a fuel depot.
Consequently the lease cannot be said to be partly of open
land and partly of a building as held by the High Court. To
that extent the decision of the High Court found to be
erroneous. That finding of the High Court has to be set
aside. Point No.4 is, therefore, answered in the negative in
favour of the appellant and against the respondents.
Point No. 5
So far as this point is concerned once it is found that
the defendant by denying the title of plaintiff no.3 had
forfeited the benefit of the Protection Act and she got out
of the sweep of the said Act, Section 3 could obviously not
be applicable in her case. Section 3 would have applied if
it was shown that there was an admitted relationship of
landlord and tenant between the parties and when the
landlord’s suit for eviction was being decreed against such
admitted tenant. In such a case only question of granting
compensation to the tenant in lieu of her right to purchase
under Section 9 could have fallen for consideration. Once it
is held that none of the provisions of the Act can apply and
once there is no admitted relationship of landlord and
tenant between the parties we fail to appreciate how Section
3 can be pressed in service by learned senior counsel for
the defendant. He, however, invited our attention to a
decision of this Court in the case of P. Ananthakrishnan
Nair and another v. Dr. G. Ramakrishnan and another [(1987)
2 SCC 429] and especially observations found at page 438 of
the Report. In that case the there was an admitted
relationship of landlord and tenant between the parties and
the tenant was covered by the definition of Section 2 sub-
section (4) of the Protection Act. Only the sub-tenant was
not so covered. It was therefore, held by this Court that
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Section 9 could not be made available to such a tenant who
had no use of the property and under these circumstances it
was observed that it decree for possession is to be passed
then compensation for the structure belonging to the tenant
could have been made available. On the facts of the present
case the ratio of the aforesaid case cannot be pressed in
service by the learned senior counsel for that appellant-
defendant as the defendant by denying the title of the
landlord plaintiff no. 3 had walked out of the very scheme
of the Protection Act. Section 3 obviously, therefore, was
out of picture for her. Consequently, under the general
provisions of the Transfer of Property Act especially
Section 108(h) read with Section 109 the only right
available to such a tenant was to gether structure removed
by her so that the possession of the decretal land could be
handed over to the decree-holder plaintiff. But the question
of awarding compensation for such structure would remain
totally out of consideration. Point No.5 is, therefore, also
answered in the negative against the defendant and in favour
of the respondents.
These were the only contentions canvassed in support of
the appeals and as these main contentions stand answered
against the appellant-defendant and consequently point nos.
1 to 3 and 5 are answered against the appellant, the appeals
fail and are dismissed with no order as to costs in the
facts and circumstances of the case.