Full Judgment Text
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PETITIONER:
SURYAKUMAR GOVINDJEE
Vs.
RESPONDENT:
KRISHNAMMAL AND ORS.
DATE OF JUDGMENT26/04/1990
BENCH:
RANGNATHAN, S.
BENCH:
RANGNATHAN, S.
AHMADI, A.M. (J)
CITATION:
1990 SCR (2) 782 1990 SCC (4) 343
JT 1990 (3) 343 1990 SCALE (1)77
ACT:
Tamil Nadu Buildings (Lease and Rent Control)
Act--Section 2(2)--’Building’--What is ’kaichalai’--Whether
included.
HEADNOTE:
On 9.6.1936 the predecessor-in-interest of the respond-
ents executed a lease deed in favour of the predecessor-in-
interest of the appellant, for a period of 15 years. The
property leased out was vacant land, well and Kaichalai, and
the lessee was permitted to construct on the vacant land and
install petrol selling business. It was further stipulated
that after the expiry of the lease period the lessee shall
at his own expense remove the structure put up by him and
deliver possession of the vacant land together with well and
Kaichalai. The lease was extended from time to time.
The lessor had filed petitions in 1962 and 1979 to
evict the lessee under the Madras Buildings (lease and Rent
Control) Act, 1950 but without success. Thereafter, in 1979
the present respondents instituted a petition for eviction
of the lessee on the ground of demolition and reconstruc-
tion, and of wilful denial of title, within the meaning of
Sections 14(1)(b) and 10(2)(vii) of the Tamil Nadu Buildings
(Lease and Rent Control) Act.
In the meantime, the provisions of the Tamil Nadu City
Tenants’ Protection Act, 1922 were extended to the municipal
limits of Udamalpettai. Taking advantage of this, the lessee
filed petition claiming the benefit of compulsory purchase
conferred on tenants of land under the said Act. The Dis-
trict Munsif-cum-Rent Controller allowed the lessor’s peti-
tion for eviction and dismissed the lessee’s petition for
compulsory purchase. The Sub-Judge dismissed the appeals.
The lessee fried two revision petitions before the High
Court which declined to interfere.
Before this Court it was contended on behalf of the
appellant that the original lease comprised only of the
vacant site, well and Kaichalai; the kaichalai was merely in
the nature of a shed put up for the tethering
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of cattle and it was not a ’building’ within the meaning of
Section 2(2) of the Rent Control Act; though the small
Kaichalai was situated in a corner of the site, the lease
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intended by the parties was only that of the site. It was
further contended that where a lease was a composite one of
land and buildings, the court had to address itself to the
primary or dominant intention of the parties; if the inten-
tion was to lease a building--the lease of land being ad-
junct or incidental, the Rent Control Act would apply; on
the other hand, if the dominant intention was to lease a
site--the presence of a building thereon not being consid-
ered material by either party--the lease would not be one of
a ’building’ covered by the Rent Control Act.
Larsen & Toubro case [1988] 4 SCC 260, relied upon.
On behalf of the respondents it was contended that, in
the case of a composite lease; the existence of a building
or hut on the land (howsoever small, insignificant or use-
less it may be) was sufficient per se to bring the lease
within the scope of the Rent Control Act.
Irani v. Chidambaram Chettiar, AIR 1953 Madras 650 and
Salay Mohd. Sait v.J.M.S. Charity, [1969] 1 MLJ---SC 16,
relied upon.
Dismissing the appeals, this Court,
HELD: (1) The Tamil word "kaichalai" seems to denote a
structure or a roof put up by hand. Whatever may be the
precise meaning of the term, the definition in Section 2(2)
of the Rent Act clearly includes the ’kaichalai’ in the
present case. [789D]
(2) Since the Rent Act applies to residential and non-
residential buildings alike, the expression ’hut’ cannot be
restricted only to huts or cottages intended to be lived in.
It will also take in any shed, hut or other crude or third
class construction consisting of an enclosure made of mud or
by poles supporting a tin or asbestos roof that can be put
to use for any purpose, residential or non-residential, in
the same manner as any other first class construction.
[789E-F]
(3) In the case of composite lease of land and building,
a question may well arise whether the lease is one of land
although there is a small building or hut (which does not
really figure in the transaction) or of a lease of the
building (in which the lease of land is incidental) or a
lease of both regardless of their respective dimensions.
[790G]
784
(4) It is not always necessary that there should be a
dominant intention swaying the parties. There may be cases
where all that is intended is a joint lease of both the land
and the building without there being any consideration
sufficient to justify spelling out an intention to give
primacy to the land or the building. The test of dominant
intention or purpose may not be very helpful in such cases
in the context of this legislation. [791F; 792B]
Sivarajan v. Official Receiver, AIR 1953 Trav. Co. 105;
Nagamony v. Tiruchittambalam, AIR 1953 Trav. Co. 369; Offi-
cial Trustee v. United Commercial Syndicate, [1955] 1 MLJ
220; Raj Narain v. Shiv Raj Saran, AIR 1969 RCJ 409; Ven-
kayya v. Subba Rao, AIR 1957 AP 619; Uttam Chand v. Lalwani,
AIR 1965 SC 716 and Dwarka Prasad v. Dwarkadas, [1976] 1 SCR
277.
(5) In the context of this case, we should be guided not
by any theory of dominant purpose but by the consideration
as to whether the parties intended that the building and
land should go together or whether the lessor could have
intended to let out the land without the building. [794B]
Sultan Bros. P. Ltd. v. C.I.T., [1964] 5 SCR 807, referred
to.
(6) Having regard to all the facts and circumstances,
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the correct inference appears to be that what the lessor
intended was a lease of both the land and the building, this
being a composite lease with a composite purpose. In these
circumstances, this letting would come in within the scope
of Rent Control Act. [795C]
(7) Where a person leases a building together with land,
it seems impermissible in the absence of clear intention
spelt out in the deed, to dissect the lease as (a) of build-
ing and appurtenant land covered by the Rent Control Act and
(b) of land alone governed by other relevant statutory
provisions. What the parties have joined, the court cannot
tear as under. [796B]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 2044-45
of 1990.
From the Judgment and Order dated 18.8.1989 of the
Madras High Court in C.R.P. Nos. 4797 and 4798 of 1984.
C.S. Vaidyanathan, K.V. Vishwanathan, K.V. Mohan, S.R.
Bhat and S.R. Setia for the Appellant.
785
K. Parsaran and V. Balachandran for the Respondents.
The Judgment of the Court was delivered by
RANGANATHAN, J. Special leave to appeal is granted and
the appeals are disposed of by a common order.
On 9.6.1936, Ramaswamy Gounder (the predecessor-in-
interest of the respondents) executed a lease deed in favour
of Gopal Sait (the predecessor-in-interest of the
appellant). Certain passages from an English translation of
the lease deed (which was in vernacular) are relevant for
the purposes of the present case and they read thus:
"Whereas the property viz. vacant land well and Kaichalai
etc. belongs to the party of the First part as his ancestral
property;
Whereas the said property was leased out to party of the
Second Part on a monthly rental of Rs.12-8-0 for 15 years
and taken possession by the party of the second part from
party of the First part on 3.12.1935 ..... and the party
of the Second part for his convenience and at his own ex-
penses and costs (was) permitted to construct in the said
vacant land and install petrol selling business ..........
After the expiry of lease period of 15 years i.e. on 12.2.
1950 the lessee shall at his own expense remove the struc-
ture put up by him and deliver possession of the vacant land
together with well and kaichalai in the present state ....
SCHEDULE
.... vacant land situated in this bounded on the North by
vacant land leased out for Burmah Oil Co. by the said Ramas-
wamy Gounder Gopalji Ratnaswami ..... all these vacant
lands together with in the fourth plot measuring East to
west 84 and North to South 16 together with half share in
well therein together with tiled Kaichalai ... together with
door, doorways etc. There is no number for Kaichalai.
It is common ground that the total vacant area covered by
the
786
lease was 3600 sq. ft. and that the kaichalai, referred to
therein, was thirty seven and a half by sixteen and a half
feet i.e. of the extent of about 600 sq. ft. It also appears
that even though there was initially no door number for the
Kaichalai, it was eventually given door No. 82 and the suit
premises we are concerned with bear door Nos. 80, 81 and 82.
The lease was extended for a period of two years from
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1.1.51 by a fresh deed dated 15.1.51 at an enhanced rent.
This lease deed recited:
"On the expiry of two years, i.e. on 31.12.52, the lessor
has no objection for the removal of the structure put up by
Burmah Shell petrol pump etc except the extent of structure
of thirty seven and a half feet by sixteen and a half feet
put up by the lessor ...... "
There was a fresh lease deed, again, executed on 2.1.53 for
a further period of three years at a higher rent. This deed
also required the lessee, when delivering possession back to
the lessor on the expiry of the lease, to remove the struc-
tures put up by him or the Burmah Shell Co. Ltd. "except the
structure measuring thirty seven and a half ft. by sixteen
and a half ft.".
The lessee appears to have continued to occupy the
property even beyond 31.12.55 at a further enhanced rent. In
1962, we are told, the lessor flied a petition to evict the
lessee under s. 10(3)(a)(i) and 14(1)(b) of the Madras
Buildings (Lease and Rent Control) Act 1960, alleging that
he required the premises for personal occupation and for
bona fide immediate demolition. "The lessee defended the
petition saying that the premises do not require any immedi-
ate demolition, that the premises are used for non-residen-
tial purposes and kept in good condition and that the peti-
tioner’s requirement for personal occupation is not bona
fide." The petition was dismissed by the Rent Controller
observing that the premises did not need demolition and
further that, as the premises had been leased out for non-
residential purposes and the landlord could not seek its
conversion into residential use without the controller’s
application, the petitioner’s allegation that he required it
for personal use was neither tenable nor bona fide.
Ramaswamy Gounder filed a petition again in 1979 for the
eviction of the respondent but he died in February 1979 and
the petition filed by him was dismissed for default. There-
after his legal representatives (the present respondents)
instituted a petition for eviction
787
(R.C.O.P. 19/79 out of which the present proceedings have
arisen) of the respondents on the grounds of demolition and
re-construction and of wilful denial of title within the
meaning of Ss. 14(1)(b) and 10(2)(vii) of the Tamil Nadu
Buildings (Lease and Rent Control) Act.
In the meantime, the provisions of the Madras City
Tenants’ Protection Act, 1922 (Later renamed the Tamil Nadu
City Tenants’ Protection Act) were extended to the municipal
limits of Udumalpettai within which the premises in question
were located. Taking advantage of this, the respondent filed
O.P. 1/79 (in the same court of District Munsif-cum-Rent
Controller) claiming the benefit of compulsory purchase
conferred on tenants of land under the said Act. The Dis-
trict Munsif-cum-Rent Controller allowed the lessor’s peti-
tion for eviction and dismissed the lessee’s petition. The
sub-judge, on appeal, dismissed the appeals with a slight
modification. He was of the view that, except for the kai-
chalai, the other buildings had been put up by the respond-
ents with the permission of the lessor and that, hence, he
was entitled to obtain compensation therefore by institution
of separate appropriate proceedings.
The respondent filed two revision petitions before the
High Court which declined to interfere. The learned Judge
held:
"I do not see any reason to interfere with the orders of the
courts below negativing the claim of the revision petition-
er. In as much as admittedly the property situated in door
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No. 82 belonged to the landlord, this is a case to which
section 14(1)(b) of the Tamil Nadu Buildings (Lease and Rent
Control) Act 1960 will apply. However, the property bearing
door Nos. 80 and 81 belonged to the petitioner is the find-
ing. On that all that the tenant could ask for will be for
removal of the superstructure. Beyond that his claim for
compensation also could not be ordered since there was no
prayer for the same. The decision in M/s. Larsen & Toubro
Ltd. v. The Trustees of Dharmamoorthy Rao Bahadur, Calvala
Cunnan Chetty’s Charities by its Trustees, [1988] 2 LW 380
is distinguishable because this is a case of only one and a
half grounds wherein there is a kaichalai of 600 sq. ft. The
removal shall take place within a period of three months
from today. The Civil revision petitions are dismissed."
Hence these two appeals.
788
Though there have been claims made under the Rent Con-
trol Act by the lessor and under the City Tenants’ Protec-
tion Act by the lessee, the claim under the latter has not
been pressed before us by the learned counsel for the appel-
lant who has confined his arguments before us to the only
question whether the demised premises constitute a "build-
ing" within the meaning of s. 2(2) of the Rent Control Act.
Sri C.S. Vaidyanathan, learned counsel for the appel-
lants submitted that the first appellate court has found,
modifying the trial court’s findings in this regard, that
the original lease comprised only of the vacant site, well
and kaichalai and that all the other superstructures found
in the demised premises had been put up by the appellant. He
contended that the ’kaichalai’ was merely in the nature of a
shed put up for the tethering of cattle and that it was not
a ’building’ within the meaning of the Rent Control Act.
Alternatively, he contended, even if the Kaichalai could be
considered to be a building this was not a case of the lease
of a building or hut with its appurtenant land: it was
really a case of the lease of a vacant site to the petition-
er on which was situated a small hut in one corner. The
lease deed itself recites that the appellant had taken the
premises for putting up a petrol pump. In fact he did put in
an underground storage tank, a petrol pump and other struc-
tures and carried on a petrol and kerosene business thereon.
Though the small Kaichalai was situate in a corner of the
site, the lease intended by the parties was only that of the
site. The Kaichalai was no doubt not demolished and, per-
haps, the appellant also made use of it for the purposes of
his business but, says Sri Vaidyanathan, this made no dif-
ference to the obvious and clear and dominant intention of
both parties that it was the site that was leased out for a
petrol pump business. Sri Vaidyanathan contended that the
issue is directly governed by the decision in the Larsen &
Toubro case [1988] 4 SCC 260, to which one of us was a
party. He submitted that, where a lease is a composite one
of land and buildings, the court has to address itself to
the primary or dominant intention of the parties. If this is
to lease a building--the lease of land being adjunct or
incidental--as in the Larsen & Toubro, case (supra), the
Rent Control Act would apply. On the other hand, if the
dominant intention is to lease a site--the presence of a
building thereon not being considered material by either
party--the lease would not be one of a ’building’ covered by
the Rent Control Act, whether or not it can be considered as
a lease only of a vacant site governed by the City Tenant’s
Protection Act. Counsel contended that it is possible that
there may be a grey area of leases which might fall under
neither Act and proceedings in respect of which
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789
may continue to be governed by the Transfer of Property Act,
unaffected by these special laws.
The Rent Control Act contains a definition of the ex-
pression ’building’ which reads as follows:
"2(2) ’building’ means any building or hut or part of a
building or a hut, let or to be let separately for residen-
tial or non-residential purposes and includes--
(a) the gardens, grounds and out-houses, if any, appurtenant
to such building, hut or part of such building or hut and
let or to be let along with such building or hut,
(b) any furniture supplied by the landlord for use in such
building or hut or part of a building or hut,
but does not include a room in a hotel or boarding house."
We have not been able to get at the exact meaning of the
Tamil word ’kaichalai’. It, however, seems to denote a
structure or a roof put up by hand. Whatever may be the
precise meaning of the term, we think that the definition in
S. 2(2) clearly includes the kaichalai in the present case.
Since the Act applies to residential and non-residential
buildings alike, the expression ’hut’ cannot be restricted
only to huts or cottages intended to be lived in. It will
also take in any shed, hut or other crude or third class
construction consisting of an enclosure made of mud or by
poles supporting a tin or asbestos roof that can be put to
use for any purpose, residential or non-residential, in the
same manner as any other first class construction. The
kaichalat is a structure which falls within the purview of
the definition. Counsel for the appellant is perhaps under-
stating its utility by describing it as a mere cattle shed.
The area of the shed is quite substantial and, as will be
explained later, the parties also appear to have attached
some importance to its existence on the site. It is very
difficult to hold, in view of the above definition, that the
kaichalai is not a ’building’ within the meaning of S. 2(2).
On behalf of the respondents, it is contended that, in a
composite lease, the existence of a building or hut on the
land (however small, insignificant or useless it may be) is
sufficient per se to bring the lease within the scope of the
Rent Control Act. It is suggested for the respondent that it
would be inarguable, once it is admitted or held
790
that the Kaichalai is a building and that the same has been
let out, that still there is no letting out of a building
within the meaning of the Act. In support of his contention,
Sri Parasaran, for the respondent, placed considerable
reliance on Irani v. Chidarnbaram Chettiar, AIR 1953 Mad.
650. He pointed out that, in that case there was a vast
vacant land with only some stalls in one corner and a com-
pound wall but it was nevertheless held to be a case of
lease of a building. According to him, this case was not
disapproved, but indeed indirectly approved, by this Court
in Salay Md. Sait v.J.M.S. Charity, [1969] 1 MLJ--SC 16
though certain other cases (where leases of vacant sites
with only the lessees’ buildings thereon were held to be
leases of buildings) were overruled in that decision. This
case, according to him, decides that, once there is a build-
ing on the land, however insignificant, and it is let out,
the case will be governed by the Rent Control Act. We do not
think this case is an authority for such an extreme posi-
tion. It rather seems that the case was one decided on its
own special facts. At the time of the original lease by the
landlord there was only a vacant site and a few small
stalls. But, by the time the relevant lease deed (which came
up for consideration) was executed, it had become the site
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of a theatre. No doubt the theatre did not belong to the
lessor; nevertheless for several years the leased property
had been sued as a theatre and the purpose of the parties
was clearly that the leased premises should continue be used
as a cinema theatre. It was in this special situation that
the Court came to the conclusion that it was plausible to
hold the lease to be one of a building though if the struc-
tures not belonging to the landlord were left out of ac-
count, there was only a vacant site and a few stalls. We
think it would not be correct to draw support from this
decision for the extreme proposition contended for on behalf
of the respondent. In our opinion, we have to travel beyond
this solitary fact, go further to look at the, terms of the
lease and the surrounding circumstances to find out what it
is that the parties really intended.
There is no difficulty in determining the scope of the
lease where a building and a piece of land are separately
let out. But in the case of composite lease of land and
building, a question may well arise whether the lease is one
of land although there is a small building or hut on it
(which does not really figure in the transaction) or one of
a lease of the building (in which the lease of land is
incidental) or a lease of both regardless of their respec-
tive dimensions. In determining whether a particular lease
is of the one kind of another, difficulties are always bound
to arise and it will be necessary to examine whether the
parties intended to let out the building along with the
lands or vice
791
versa. The decisions in Sivarajan v. Official Receiver, AIR
1953 Trav. Co. 105; Nagamony v. Tiruchittambalam, AIR 1953
Trav. Co. 369; Official Trustee v. United Commercial Syndi-
cate, [1955] 1 MLJ 220 and Raj Narain v. Shiv Raj Saran, AIR
1969 RCJ 409, relied upon by Sri Vaidyanathan, were in-
stances where what the parties had in mind was only the
lease of land, although there were certain petty structures
thereon which were not demolished or kept out of the lease
but were also let out. They were clearly cases in which, we
think, the applicability of the Rent Act was rightly ruled
out. On the other hand, Larsen & Toubro, [1988] 4 SCC 260 is
a case where there was the lease of a building although a
vast extent of land was also included in the lease. That was
not a case which arose under the Rent Control Act but it
illustrates the converse situation. Sri Vaidyanathan wants
to derive, from the case referred to above and certain cases
which deal with other aspects which become relevant while
considering a composite letting, a proposition that the
dominant purpose of the letting should govern. For instance,
there are cases where factories, mills or cinema theatres
are leased out and cases have held that the dominant object
is to lease a factory, mill or theatre and that, even though
in all these cases, the letting out of a building would be
involved, the provisions of the Rent Control Act would not
apply vide Venkayya v. Subba Rao, AIR 1957 A.P. 619; Uttam
Chand v. Lalwani. AIR 1965 SC 716 and Dwarka Prasad v.
Dwarkadas, [1976] 1 SCR 277. But we think that this approach
also seeks to over simplify the problem. When we come down
to consider the terms of a particular lease and the inten-
tion of the parties, there are bound to be a large variety
of cases. If the transaction clearly brings out a dominant
intention and purpose as in the cases cited above, there may
be on difficulty in drawing a conclusion one way or the
other. But it is not always necessary that there should be a
dominant intention swaying the parties. There may be cases
where all that is intended is a joint lease of both the land
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and the building without there being any considerations’suf-
ficient to justify spelling out an intention to give primacy
to the land or the building. For instance, where a person
owns a building surrounded by a vast extent of vacant lands
(which may not all be capable of being described appurtenant
thereto, in the sense of being necessary for its use and
enjoyment) and a party comes to him and desires to take a
lease thereof, he may do so because he is interested either
in the building or the land (as the case may be). But the
owner may very well say: "I am not interested in your need
or purpose. You may do what you like with the land (or
building). 1 have got a compact property consisting of both
and I want to let it out as such. You may take it or leave
it." The fact in such cases is that the owner has a building
and land and he lets them
792
out together. He is not bothered about the purpose for which
the lease is being taken by the other party. In such cases,
it is very difficult to say that there is no lease of build-
ing at all unless there is some contra indication in the
terms of the lease such as, for example, that the lessee
could demolish the structure. The test of dominant intention
or purpose may not be very helpful in such cases in the
context of this legislation.
Sri Vaidyanathan sought to contend that the words of S. 2(2)
"any building ..... and gardens, grounds ..... let or to
be let along with it", import the concept that the dominant
purpose should be a letting of the building. We do not think
that this is necessarily so. The decision of this Court in
Sultan Bros. P. Ltd. v. C.I.T., [ 1964] 5 SCR 807 is of some
relevance in this context. There the Supreme Court was
concerned with the interpretation of S. 12(4) of the Indian
Income-tax Act, 1922 which read:
"(4) Where an assessee lets on hire machinery plant or
furniture belonging to him and also buildings, and the
letting of the buildings inseparable from the letting of the
said machinery, plant or furniture, he shall be entitled to
allowances in accordance with the provisions of the clauses
(iv), (v) and (vii) of sub-section (2) of section 10 in
respect of such buildings."
The High Court took the view that the plant and machinery
and buildings should not only be inseparably let out but
also that "the primary letting must be of the machinery,
plant or furniture and that together with such letting or
along with such letting there (should be) letting of build-
ings." 1n that case, the High Court held, the primary let-
ting was of the building and so S. 12(4) would not apply.
The Supreme Court did not approve of this reasoning. It
said:
"Now the difficulty that we feel in accepting the view which
appealed to the High Court and the Tribunal is that we find
nothing in the language of sub-s. (4) of S. 12 to support
it. No doubt the sub-section first mentions the letting of
the machinery, plant or furniture and then refers to the
letting of the building and further uses the word ’also’ in
connection with the letting of the building. We, however,
think that this is too slender a foundation for the conclu-
sion that the intention was that the primary letting must be
of the machinery, plant or furnitures. In the absence of a
much
793
stronger indication in the language used, there is no war-
rant for saying that the sub-section contemplated that the
letting of the building had to be incidental to the letting
of the plant, machinery or furniture. It is pertinent to ask
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that if the intention was that the letting of the plant,
machinery-or furniture should be primary, why did not the
section say so? Furthermore, we find it practically impossi-
ble to imagine how the letting of a building could be in
cidental to the letting of furniture, though we can see that
the letting of a factory building may be incidental to the
letting of the machinery or plant in it for the object there
may be really to work the machinery. If we are right in our
view, as we think we are, that the letting of a building can
never be incidental to the letting of furniture contained in
it, then it must be held that no consideration of primary or
secondary lettings arises inconstruing the section for what
must apply when furniture is let and also buildings must
equally apply when plant and machinery are let and also
buildings. We think all that sub-s. (4) of s. 12 contem-
plates is that the letting of machinery, plant or furniture
should be inseparable from the letting of the buildings."
The Court proceeded then to consider the concept of ’insepa-
rable letting’ and observed:
"It seems to us that the inseparability referred to in sub-
s. (4) is an inseparability arising from the intention of
the parties. That intention may be ascertained by flaming
the following questions: Was it the intention in making the
lease--and it matters not whether there is one lease or two,
that is, separate leases in respect of the furniture and the
building--that the two should be enjoyed together? Was it
the intention to make the letting of the two practically one
letting? Would one have been let alone or a lease of it
accepted without the other? If the answers to the first two
questions are in the affirmative, and the last in the nega-
tive then, in our view, it has to be held that it was in-
tended that the lettings would be inseparable. This view
also provides a justification for taking the case of the
income from the lease of a building out of s. 9 and putting
it under s. 12 as a residuary head of income. It then be-
comes a new kind of income, not covered by s. 9, that is,
income not from the ownership of the building alone but an
income which
794
though arising from a building would not have arisen if the
plant, machinery and furniture had not also been let along
with it."
Though the context was somewhat different, the observations
in that case are of great assistance. We think that, in the
context here also, we should be guided not by any theory of
dominant purpose but by the consideration as to whether the
parties intended that that the building and land should go
together or whether the lessor could have intended to let
out the land without the building. The latter inference can
perhaps be generally drawn in certain cases where only the
lease of land dominated the thoughts of the parties but the
mere fact that the building is small or that the land is
vast or that the lessee had in mind a particular purpose
cannot be conclusive.
Let us now turn, in the above background, to a consider-
ation of the lease deed in the present case. As already
mentioned, counsel for the appellant strongly relies on the
purpose of the lease and seeks to make out that the building
(kaichalai) was not really a significant part of the lease.
This contention is stoutly refuted on behalf of the respond-
ents. It is pointed out that the kaichalai was of substan-
tial dimensions and that counsel for the appellant is not
fight in characterising it as a mere cattle shed. It is
pointed out that the shed was also admittedly used by the
appellants for the purposes of its business and there is
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nothing to show that this was also not in contemplation at
the time of the lease. Again it is pointed out that, in some
parts of the lease deeds, the vernacular version gives first
place to the kaichalai rather than to the vacant site. Also,
every one of the lease deeds attaches special emphasis that
the kaichalai should not be removed but should be returned
to the lessor without any damage. We may also advert to one
more circumstance which shows beyond doubt that the kaicha-
lai was not an insignificant structure. We have earlier
referred to the fact that Ramaswamy Gounder had filed an
earlier eviction petition on the ground that he needed the
premises for personal occupation and immediate demolition.
The lessee’s defence to this was not that the kaichalai was
a cattle-shed unfit for personal occupation, The defence was
that it had been let out for a non-residential purpose and
could not be converted to residential use without permis-
sion. This certainly demonstrates that the kaichalai was
capable of use both for residential and non-residential
purposes. Counsel for the respondent, in fact, wanted to go
a little further and hold it against the appellant that he
had not taken in those proceedings the plea, now put for-
ward, that the Rent Control Act could not at all be invoked.
We will not, however,
795
hold this against the appellant ’as, at that time, the
benefits of the Tenants’ Protection Act had not been extend-
ed to Udumalpettai and the tenant would not have gained
anything by raising any such point. But the pleadings in
those proceedings as well as the order of the Rent Control-
ler therein leave no doubt that the kaichalai was a material
structure let out as such to the lessee for non-residential
purposes and which, with necessary permission, could also
have been used for residential purposes. Having regard to
all these circumstances, the correct inference appears to be
that what the lessor intended was a lease of both the land
and the building. The land was to be put to use for a petrol
pump; so far as the building was concerned, the lessee was
at liberty to use it as he liked but he had to maintain it
in good condition and return it at the end of the lease.
This was a composite lease with a composite purpose. It is
difficult to break up the integrity of the lease as one of
land alone or of building alone. In these circumstances, we
think this letting would come in within the scope of the
Rent Control Act, for the reasons already explained.
Before concluding, we may touch upon two more relevant
aspects. The first is the use of the word "separately" in s.
2(2). This, however, does not affect our above construction
of the section. That word is intended to emphasise that, for
purposes of the Act, a building means any unit comprising
the whole or part of a building that is separately let out.
It does not mean--it cannot mean--that composite leases of
land and building would not be covered by it. That would be
clearly contrary to the language of the whole clause which
specifically talks of joint letting of land and building.
The second is the restriction of the applicability of s.
2(2) to cases of letting of building and appurtenant lands
only. It may be suggested that the lands here are not
"appurtenant" except perhaps to the extent required for
providing access to the Kaichalai. This argument is not very
helpful to the appellants. At best, it can mean that the
Kaichalai and only a part of land needed for its enjoyment
or use would be governed by the Rent Control Act. But this
was not the contention of the appellant and no attempt has
been made to ascertain what the extent of such "appurtenant"
land could be. That apart, we are inclined to think that the
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word "appurtenant" has, in the context, a much wider mean-
ing. It is not just restricted to land which, on a consider-
ation of the circumstances, a court may consider necessary
or imperative for its enjoyment. It should be construed as
comprehending the land which the parties considered appro-
priate to let along with the building. To hold to the con-
trary may give rise to practical difficulties. Suppose there
is, in the middle of a metropolis, a bungalow with a vast
extent of land sur-
796
rounding it such as for e.g. in the Larsen & Toubro case and
this is let out to a tenant. If a very strict and narrow
interpretation is given to the word "appurtenant", it is
arguable that a considerable part of the surrounding land is
surplus to the requirements of the lessee of the building.
But, we think, no argument is needed to say that such a
lease would be a lease of building for the purposes of the
Rent Control Act. Where a person leases a building together
with land, it seems impermissible in the absence of clear
intention spelt out in the deed, to dissect the lease as (a)
of building and appurtenant land covered by the Rent Control
Act and (b) of land alone governed by other relevant statu-
tory provisions. What the parties have joined, one would
think, the court cannot tear as under. In fact, we may point
out that a wider meaning for this word was convassed in
Irani v. Chidambaram Chettiar, AIR 1953 Madras 650 which the
court had no necessity to go into in the view taken by it on
the interpretation of the lease deed. In this case also no
contention has been raised in regard to this aspect and so
we shall also leave open the precise connotation of the word
except to say that it may warrant a wide meaning in the
context.
For the reasons discussed above, we see no grounds to
interfere with the judgments of the courts below. The appeal
is dismissed but we make no order as to costs.
R.S.S. Appeal dis-
missed.
?797