Full Judgment Text
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PETITIONER:
RATTAN LAL
Vs.
RESPONDENT:
VARDESH CHANDER & ORS
DATE OF JUDGMENT09/12/1975
BENCH:
KRISHNAIYER, V.R.
BENCH:
KRISHNAIYER, V.R.
CHANDRACHUD, Y.V.
GUPTA, A.C.
CITATION:
1976 AIR 588 1976 SCR (2) 906
1976 SCC (2) 103
CITATOR INFO :
D 1978 SC1518 (12,13,17)
O 1979 SC1745 (16)
RF 1980 SC1214 (12)
ACT:
Transfer of Property Act-Secs. 106 and 111(a) and
111(g)-Eviction under Rent Control Law-Whether de hors
Transfer of Property Act-Rules of Justice equity and good
conscience-Whether institution of legal proceedings operates
as determination of lease-Art. 133 of Constitution-If
certificate limited to a particular point-Whether other
points can be argued-Whether English concepts to be blindly
followed.
HEADNOTE:
The respondent landlord let out the building in
question to the appellant tenant in the year 1954, when the
Transfer of Property Act was not applicable to Delhi where
the property is situated. The Transfer of Property Act was
made applicable to Delhi in the year 1962. In 1967, the
respondent filed a suit for eviction against the appellant
without terminating the tenancy under the Transfer of
Property Act on the grounds of unauthorised subletting and
acquisition of alternative accommodation by the tenant. A
decree for eviction was passed by the Rent Controller which
was affirmed by the Appellate Tribunal.
In the High Court it was contended by the appellant
that neither notice to quit nor notice of forfeiture
determining the tenancy was given by the landlord as
required by sections 106 and 111 of the Transfer of Property
Act. The respondent contended that the lease had expired by
efflux of time under section 111(a) and no notice
terminating the tenancy was necessary and that forfeiture of
the tenancy caused by the subletting contrary to the terms
of the agreement can be availed of by the landlord even in
the absence of a notice as contemplated by section 111(g).
The High Court dismissed the petition filed by the appellant
but granted a certificate of fitness under Article 133
restricting it to one ground urged before the High Court.
The respondent raised a preliminary objection that since the
certificate was granted only on one point the appellant
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could not be permitted to make any other submissions.
The appellant contended that the lease is one where the
time is not limited and, therefore, is terminable only by 15
days notice as required by section 106 of Transfer of
Property Act.
The respondent contended that the lease was for a fixed
period and expired by efflux of time. In any evnt a notice
in writing is not necessary to terminate the lease.
Institution of legal proceedings serves that purpose.
^
HELD: (1) Once a certificate of fitness has been
granted under Article 133, the appeal, in all its amplitude,
is before the Court and every point may be urged by the
appellant provided this Court permits it having regard to
the circumstances. It is however, within the court’s
discretion not to allow a new point to be taken up. [909D-E]
(2) The scheme of the Rent Control Law, is to put
further fetters on landlords seeking eviction where in the
absence of such acute barriers the landlords would be
entitled to ejectment. Even where under a particular Rent
Control Statute the landlord makes out grounds for eviction
he can institute proceedings in this behalf only if de hors
the said grounds he has cause of action under the Transfer
of Property Act. The landlord cannot secure an order for
eviction without first establishing that he has validly
determined the lease under the transfer of Property Act.
[909G-H,911C]
(3) A lease merely stating that it is for a period less
than one year is ex-facie for an indefinite period and as
such cannot expire by efflux of time.
907
Nor are we convinced that the acceptance of rent for the
period of 11 years does not amount assenting to the holding
over of the tenancy by the landlord. [911E-F]
(4) The Rent Act contemplates no elaborate proceedings
but filing out of the particulars in a proforma which takes
the place of a plaint. No specific averment of forfeiture
and consequent determination of the lease is found in the
petition. The question arises whether a written notice of
forfeiture for the breach of the condition of the lease is
obligatory in terms of section 111(g) or whether written
notice of forfeiture can be dispensed with as being no part
of the equity or justice but a technical or formal statutory
requirement. Before the amendment of Transfer of Property
Act in 1929 all that was necessary for the lessor to
determine the demise on forfeiture was to do some act
showing his intention to determine the lease. The rule of
English Law’before the enactment of the law of Property Act,
1925, appears to be that a suit for ejectment is equivalent
to a re-entry. The appellant did not urge in the High Court
that the Transfer of Property Act was applicable in its own
force. We decline our discretion to allow the appellant to
travel into the new statutory territory of section 111 (g).
[911G-H, 913A, D-E, 916C]
(5) In India and in other colonies throughout the
Imperial Era a tacit assumption had persuaded the courts to
embrace English Law (the civilizing mission of the masters)
as justice, equity and good conscience. Unfortunately, even
after liberation, this neo colonial jurisprudence was not
shaken off. Free India has to find its conscience in our
rugged realities and no more in alien legal thought. So
viewed, the basic question is what is the essence of equity
in the matter of determination of a lease on the grounds of
forfeiture caused by the breach of a condition. The
substance of the matter-the justice of the situation-is
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whether a condition in the lease has been breached and
whether the lessor has by some overt act brought home to the
lessee his election to eject on the strength of the breach.
The touchstone is simply whether the formal requirement of
the law is part of what is necessarily just and reasonable.
In this perspective the conclusion is clear that a notice in
writing formally determining the tenancy is not a rule of
justice or cannon of commonsense. Realism married to equity
being the true test, we are persuaded that pre-amending Act
provision of section 111 (g) is in consonance with justice.
The mere institution of the legal proceeding for eviction
fulfills the requirements of law for determination of the
lease. The conscience of the Court needs nothing more and
nothing less. The essential principles, not the technical
rules, of the Transfer of Property Act form part of justice,
equity and good conscience. [916D, 917A, D, E-F,919B-C,
920A]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1297 of
1975.
From the judgment and order/decree dated the 30th May,
1975 of the Delhi High Court in S.A.O. 43 of 1973.
A. K. Sen, R. L. Kohli, S. K. Bagga, Mrs. S. Bagga and
Miss Yash Bagga for the Appellant.
Y. S. Chitaley, R. P. Singh, R. K. Jain and M. Mudgal
for Respondent No. 1.
The Judgment of the Court was delivered by
KRISHNA IYER,J. This fifth deck appeal, by certificate
under Art. 133 of the Constitution, stems from a humdrum but
protected litigation under the rent control law by a tenant
who has lost all alone the way. If we may prologise, this
special law hopefully set up a quasi-judicial machinery for
summary trial and speedy disposal and prescribed eviction
save upon simple grounds safeguarding the security of
tenants of buildings against being inequitably ejected. But
this very case discloses the chronic distortion in
processual justice, caused by a slow-motion spiral of
appeals and plethora of technical pleas defeating the
statutory design.
908
The obvious legislative policy and project in this
class of simplistic landlord-tenant litigation demands a
radically non-traditional judicial structuring and legal
engineering, by-passing sophistications and formalisms and
tier-upon-tier of judicial reviews. Both these imperatives
are conspicuously absent in current rent control litigation-
a dismal failure which the legislature will, we hope, awaken
to rectify. Post-audit of socio-economic laws in action,
with a view to over-see if legal institutions and jural
postulates actually achieve legislatively mandated
objectives in special classes of dispute-proceessing, makes
for competent and credible implementation of laws and saves
the time of the higher courts and the money of the public at
present consumed exasperatingly but avoidably. The price of
legislative inaction in these areas is popular
disenchantment with laws and tribunals.
Factual matrix
The appellant is the tenant of a building in Delhi
having been inducted into possession by the respondent-
landlord under a letting of May 19, 1954, evidenced by a
deed which fixed the term merely as less than a year (a
circumstance out of which a minor ripple of legal argument
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has arisen). At the time of the lease the Transfer of
Property Act, 1882 (for short, the TP Act), had not been
extended to Delhi although, later, on December 1, 1962, the
said Act was made applicable to this area. The landlord had
been receiving rent from the tenant until the time he filed
a petition for eviction (1967), the statute which regulated
the right to eviction being the Delhi Rent Control Act, 1958
(59 of 1958) (for short, the Rent Act). The eviction
petition set out two grounds out of the many specified in s.
14 of the Rent Act, viz.,unauthorized sub-letting of a
portion of the premises and possession, by the tenant, of
alternative accommodation. Both these grounds having been
made out, the evictibility under the Rent Act became
inevitable. But, in the High Court, the appellant-tenant
fell back on certain defences grounded on ss.106 and 111 of
the TP Act on the score that no notice to quit had been
given, nor notice of forfeiture, as prescribed by those
sections. There is no dispute that neither notice to quit
nor notice of forfeiture determining the tenancy had been
given by the landlord. The core of the controversy thus
turns on the need to comply with the requirements of ss. 106
and/or 111 of the TP Act and the fatal effect of failure in
this behalf. The landlord seeks to break through these
defences by urging that the lease has expired by efflux of
time limited thereby under s. 111(a) and no notice
terminating the tenancy under s. 106 is needed and further
that the forfeiture of the tenancy caused by sub-letting
contrary to the terms of the deed of demise can be availed
of by the landlord even in the absence of a notice as
contemplated by s. 111 (g) because the TP Act, as amended by
the Amending Act of 1929, did not, in terms, apply to the
present lease and the principles of justice, equity and good
conscience, which alone applied, did not desiderate the
technical requirement of a notice in writing of an intention
to determine the lease.
The Rent Controller, at the floor level, ordered
eviction and the Appellate Tribunal affirmed it, upholding
the vice of sub-letting without consent of the landlord in
the manner specified in s. 14(1)(b) as
909
also the disability spelt out in s. 14(1) (h) on acquiring
vacant possession of alternative residence. The resistence
founded on the TP Act was also over-ruled by the appellate
Tribunal. But, when the case reached the High Court in
second appeal, under s. 39 of the Rent Act, the learned
Single Judge felt that certain points of law spun out of the
TP Act deserved consideration by a Division Bench and
referred the appeal for determination accordingly to a
larger Bench. The Division Bench which heard the appeal
dismissed it but granted a certificate of fitness for appeal
to the Supreme Court under Art. 133 of the Constitution,
restricting it, however, to but one ground urged before it.
Shri A. K. Sen, for the appellant, made a gentle hint that
the High Court had heard long arguments in March 1974 but
could resolve its doubts to deliver a judgment only in May
1975 so much so the freshness of counsel’s submissions might
have faded somewhat and so we should have a closer look at
his points de hors the judgment under appeal. If this fact
of a long hiatus between hearing and decision were true, it
must have inflicted a heavy strain on the memory of the
learned Judges which it is a healthy practice to avoid.
However, after listening to Shri A. K. Sen, we feel that his
fears are unfounded.
A preliminary pre-emptive objection was urged by the
respondent that the High Court having circumscribed the
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certificate to a single point no other submissions should be
permitted. We see no force in this untenable insistence on
tying down the appellant. Once a certificate of fitness has
been granted under Art. 133, the appeal, in all its
amplitude, is before this Court and every point may be urged
by the appellant provided this Court permits it, having
regard to the circumstances. Perhaps, a certificate under
Art. 132, or special leave under Art, 136 may stand on a
different footing if the Court limits the grounds in any
manner. Of course, conceding the Court’s plenary power in
appeals on certificate under Art. 133, it is still within
the Court’s discretion not to allow a new point to be taken
up [The rulings in 1963 (2) SCR 440 and 1964(2) SCR 930 lay
down the law on this point].
The contentions
We have already indicated that, under the Rent Act two
grounds for eviction have been good by the landlord.
Indisputably, sub-letting has been substantiated. Even so,
it is argued that only where a lease has been duly
determined giving rise to a right to present possession
under the TP Act can the landlord sue for recovery of the
building. The scheme of the Rent Control law, speaking
generally, is to put further fetters on landlords seeking
eviction from urban buildings where, in the absence of such
new barriers, they will be entitled to ejectment. The acute
scracity of accommodation is the raison de’etre of the law.
It is not as if the rent control statutes are a bonanza for
the landlords and confer a relaxed right to eject where,
under the general law, they do not have such a right in
praesenti. To hold otherwise is to pervert the purpose and
substitute an added danger for an extra dyke. It follows
that even where under a particular rent control statute the
landlord makes out grounds for eviction, he can institute
proceedings in this behalf only if de hors the said grounds
he has cause of action under the TP Act.
910
We agree that, if the rent control legislation
specifically provides grounds for eviction in supersession,
not in supplementation, of what is contained in the T.P.
Act, the situation may conceivably be different. But, in the
Delhi Rent Act,as in many other like Statutes, what is
intended to be done is not to supplant but to supplement,
not to eliminate the statutory requirements of determination
of tenancy but to superimpose a ban on eviction which
otherwise may be available in conformity with the TP Act
without fulfilment of additional grounds. ’No order .....
for the recovery of possession of any premises shall be
made...... in favour of the landlord against a tenant’ is a
blanket ban in s. 14(1) of the Rent Act. It is followed by
enumeration of specific grounds proof of which may authorize
the Controller to make an order for the recovery of
possession of the premises. It follows that before a
landlord can institute proceedings for recovery of
possession, he has to make out his right (a) under the TP
Act; and (b) under the Rent Act.
In Manujendra Dutt this Court considered the question
elaborately and observed:
"The Thika Tenancy Act like similar Rent Acts
passed in different States is intended to prevent
indiscriminate eviction of tenants and is intended to
be a protective statute to safeguard security of
possession of tenants and therefore should be construed
in the light of its being a social legislation. What
section 3 therefore does is to provide that even where
a landlord has terminated the contractual tenancy by a
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proper notice such landlord can succeed in evicting his
tenant provided that he falls under one or more of the
clauses of that section. The word ’notwithstanding’ in
section 3 on a true construction therefore means that
even where the contractual tenancy is properly
terminated, notwithstanding the landlord’s right to
possession under the Transfer of Property Act or the
contract of lease he cannot evict the tenant unless he
satisfied any one of the grounds set out in section 3.
Rent Acts are not ordinarily intended to interfere and
with contractual leases and are Acts for the protection
of tenants and are consequently restrictive and not
enabling, conferring no new rights of action but
restricting the existing rights either under the
contract or under the general law.
*
The right to hold over, that is, the right of
irremovability thus is a right which comes into
existence after the expiration of the lease and until
the lease is terminated or expires by efflux of time
the tenant need not seek protection under the Rent Act.
For he is protected by his lease in breach of which he
cannot be evicted. (See Maghji Lakshamshi and Bros v.
Furniture Workshop-[1954] AC 80, 90). In Abasbhai v.
Gulamnabi (AIR 1964 SC 1341), this Court clearly stated
that the Rent Act did not give a right to the
911
landlord to evict a contractual tenant without first
determining the contractual tenancy. In Mangilal v.
Sugan Chand (AIR 1965 SC 101) while construing section
4 of the Madhya Pradesh Accommodation Control Act
(XXIII of 1965), a section similar to section 3 of the
present Act, this Court held that the provisions of
section 4 of that Act were in addition to those of the
Transfer of Property Act and therefore before a tenant
could be evicted by a landlord, he must comply with
both the provisions of section 106 of the Transfer of
Property Act and those of section 4. The Court further
observed that notice under section 106 was essential to
bring to an end the relationship of landlord and tenant
and unless that relationship was validly terminated by
giving a proper notice under s. 106 of the Transfer of
Property Act, the landlord could not get the right to
obtain possession of the premises by evicting the
tenant (See also Haji Mohammad v. Rebati Bhushan-53
C.W.N. 859)."
We are inclined to hold that the landlord in the present
case cannot secure an order for eviction without first
establishing that he has validly determined the lease under
the TP Act.
We are therefore thrown back to an examination of the
argument pressed by the appellant-tenant that independently
of the rent control law, the respondent has no subsisting
cause of action. The contention is two-fold. Firstly, the
lease is one where the time is not limited and therefore s.
111(a) will not apply and is terminable on the part of the
lessor only in the manner provided by s. 106, i.e., by 15
days’ notice expiring with the end of the month of the
tenancy. Admittedly, no such notice was given. The counter-
contention of the landlord, apart from the plea of statutory
tenancy requiring no further notice to determine, is that
the lease is for a specified period even though it expresses
itself as for a term less than one year and under s. 111 (a)
has expired by efflux of time. We cannot agree to this
feebly asserted argument. A lease merely stating that it is
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for a period less than one year is ex facie for an
indefinite period and, as such, cannot expire by efflux of
time. Nor are we convinced that, notwithstanding the
acceptance of rent for the period of 11 years the landlord
had not assented to the holding over of the tenancy and that
what emerged was a statutory tenancy which did not require
notice in law for valid determination. Possibly so; not
necessarily. However, we need not explore this aspect
further in the view that we take of the other submission of
the landlord that the lease has been determined by
forfeiture, not in terms of s. 111 (g) of the TP Act, but on
the application of the principles of justice, equity and
good conscience. We will examine this latter contention in
some detail, as it is decisive of the fate of the case.
The Rent Act contemplates no elaborate pleadings but
filling out of particulars in a pro forma which takes the
place of a plaint. No specific averment of forfeiture and
consequent determination of the lease is found in the
petition. Having regard to the comparative informality
912
of these proceedings and the quasi-judicial nature of the
whole process, such an omission cannot be exaggerated into a
lethal infirmity. What is perhaps more pertinent is that the
petitioner was innocent of the plea of forfeiture throughout
the stages of the trial before the Rent Controller. When the
case reached the appellate stage, it was specifically urged
that the tenancy ’stood terminated by forfeiture under s.
111 (g) of the TP Act. The Tribunal studied the terms of the
rent deed, Exhibit AW 3/1 and held that there was an express
condition against sub-letting and a provision that on breach
thereof the lessor had the right to move for eviction-
something equivalent to a right to re-enter. The tenant
remonstrated against this new plea being permitted in appeal
but the Court construed the statement in the pro-forma in
column 18-B, that no notice is necessary, to mean that there
was a determination by forfeiture even without the issuance
of a notice. More over, the Court noticed the fact that the
question was only one of law and should be permitted in the
interests of justice. After some consideration of the issue
the Tribunal reached the result ’that the tenancy stood
determined by forfeiture and therefore no notice was
required’. We need not tarry further on the tenability of
this conclusion since the matter has been more fully
examined at the High Court level.
Arguments before us have proceeded on the footing that
a sub-tenancy has been created and this amounts to a breach
of condition with a provision for re-entry. The tribunal in
appeal held that no notice was necessary since the lease was
created prior to the extension of the TP Act to Delhi.
Although there is some confusion in this order about the
determination of the lease being under s. 111(g) or outside
it, the thrust of the holding is found in these concluding
words:
"However, as held by the Supreme Court in
Narender, Lokmanya Lodhi v. Narmada Bai & Ors. 1953 SC
228 the provisions in s. 111 (g) as to notice in
writing as a preliminary to a suit for ejectment based
on forfeiture of a lease is not based on the principles
of justice, equity or good conscience and would not
govern the bases made prior to the coming into the
force of the TP Act or to a lease executed prior to the
coming into force of the TP Act. The lease in question
was admittedly created before December 1, 1962 and,
therefore, the requirement of the notice in writing
could not be insisted upon."
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In short, the clincher was ’justice, equity and good
conscience’.
The critical phase of the case thus beckons us, the
last court of law and justice, to the final valley of the
forensic battle. Does the TP Act apply to a lease executed
prior to the extension of that Act to the area, even though
the event that determines the tenancy viz., forfeiture,
occurs after such extension ? Secondly, if the TP Act does
not apply proprio vigore to such demises and their
determination, can the principles of justice, equity and
good conscience be invoked to transplant the twin rules in
s. 111(g) of the said Act? Thirdly, and this is the crux of
the matter-if such transfusion is permissible,
913
is the synergetic operation of breach of a condition of the
lease providing for re-entry and a written notice of
forfeiture on that score obligatory in terms of s. 111(g) or
can written notice of forfeiture be dispensed with as being
no part of equity or justice but a technical or formal
statutory requirement? What, in short, is the status of the
formula of justice, equity and good conscience, in the legal
pharmacopoeia of India?
Shri A. K. Sen urges that the procedural interdict
against raising the objection based on s. 111(g) is of no
consequence. While the law goes to the root of the case and
is perfectly plain and the facts indubitably manifest on the
record, the refusal to examine and uphold the objection, if
valid, is to surrender the judicial function of doing
justice according to law at the illegitimate altar of
technical inhibition. Moreover, he argues, the plea based on
s. 111(g) in some form or other, is writ large in the
Tribunal’s order and the High Court’s judgment. New nuances
and clearer focus may be allowed where the point of law has
been broadly touched upon. Face to face with the issue of
forfeiture under s. 111(g), the appellant presses the
position that since admittedly no notice in writing, as laid
down in the section, has been issued, the eviction
proceeding can be shot down by that legal missile alone.
Before the amending Act of 1929, all that was necessary
for the lessor to determine the demise on forfeiture was to
do ’some act showing his intention to determine the lease’.
The rule of English law before the enactment of the Law of
Property Act, 1925 appears to be that a suit for ejectment
is equivalent to re-entry. It has been held in India that an
act showing the lessor’s intention to determine the lease
can take the form of the institution of an action in
ejectment. The statutory law, as it now stands, however is
that the happening of any of the events specified in s.
111(g) does not, ipso facto, extinguish the lease but only
exposes the lessee to the risk of forfeiture and clothes the
lessor with the right, if he so chooses, to determine the
lease, by giving notice in that behalf. Mulla states the law
correctly thus:
"Forfeiture of a lease requires the operation of
two factors: (1) A breach by the lessee of an express
condition of the lease which provides for re-entry on
such breach and (2) a notice by the lessor expressing
his intention to determine the lease."
(Mulla on TP Act, p. 746-747, 6th Ed.)
The notice has to be in writing. In Namdeo Lokman Lodhi(1)
this Court laid down the law to the same effect. Mahajan J.,
observed:
"Section 111(g) in the terms makes the further act
an integral condition of the forfeiture. In other
words, without this act there is no completed
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forfeiture at all. Under the old section an overt act
evidencing the requisite intention was
914
essential. As the law stands today, under the Act,
notice in writing by the landlord is a condition
precedent to a forfeiture and the right of re-entry."
It cannot be gainsaid that a notice, as envisioned in s.
111(g) not having been given to the lessee in the present
case, determination of the demise under s. 111(g) cannot be
claimed by the lessor. Thus, if the fortune of the landlord
were to turn on the application of the TP Act as it stands
now, the ejectment proceeding must be rebuffed.
Counsel for the respondent seeks to sustain his case on
the submission that the TP Act does not apply to the lease
in question and therefore a forfeiture giving rise to a
determination of the lease follows upon breach of a
condition in the lease, to wit, sub-lease of a portion of
the building, plus an act indicative of the landlord’s
intention to terminate the tenancy. According to counsel, in
the absence of a specific statutory provision, the rules of
justice, equity and good conscience govern the situation and
this element is amply fulfilled by the filing of the
eviction petition itself. We are, therefore, called upon to
consider whether the provisions of the TP Act apply to the
lease of 1952 executed in Delhi and, secondly, if it does
not whether its present provision, as amended in 1929, has
to be treated as a rule of justice, equity and good
conscience, or the mere institution of legal proceedings for
ejectment would be tantamount to an act evidencing the
intention of the lessor to avail himself of the forfeiture
clause and sufficient to satisfy justice, equity and good
conscience.
A little legal history helps to appreciate this part of
the controversy. The TP Act came into force on July 1, 1882;
but it extended in the first instance to the whole of India
except certain saved territories including Delhi. It was
actually extended to Delhi only in 1962. Section 2(c) of the
Act provides that ’nothing herein contained shall be deemed
to affect any right or liability arising out of a legal
relation constituted before this Act comes into force, or
any relief in respect of any such right or liability’. There
is some dispute as to what ’nothing herein contained’
connotes. Shri A. K. Sen submitted that the Act had come
into force as early as 1882 and while transactions created
before that date (July 1, 1882) would not be affected by its
provisions, subsequent transactions would be governed by
that Act even though they may have been executed before the
extension of the Act to a particular area. His brief
contention was, to start with, that even if the Act was
extended to Delhi in 1962, once it was so extended the whole
Act came into force in its totality in that area and only
those transactions which were expressly saved by s. 2 viz.,
’legal relations constituted before this Act comes into
force’ escaped from its operation. So much so the present
lease being of 1954 would be covered by s. 111 (g). Our
attention was drawn by him to s. 63 of the Amending Act in
this connection.
Shri Chitaley, for the respondent, countered this
contention by another extreme stand. According to him, the
Act came into force in Delhi only when it was extended to
that place, viz., in 1962. Therefore, transactions prior to
that date swam out of its operation altogether. A third
possibility, a sort of via media or golden mean, also
915
came up for consideration as a close-up of the relevant
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provisions was taken. This view was that while transactions
which came into existence in an area before the Act was
extended to that area, would be tested for their validity by
the law extant when the transaction was entered into, the
remedies and other incidents would be conditioned by the TP
Act if it had been extended to the area when the remedy was
sought to be enforced. Shri Chitaley wanted us to accept
Namdeo (supra) as an authority for his proposition and
relied on certain passages therein. The problem presented
before us cannot be disposed of in an easy fashion and
deserves serious examination. In the present case, we are
relieved of that obligation for the weighty reason that the
appellant has all along staked his case on the application
of the rules of justice, equity and good conscience and not
on the textual rigour of s. 111(g) applied proprio vigore.
We have already indicated that although this question
was not canvassed before the trial Court, the appellate
tribunal did consider it as a point of law. In doing so, the
learned Tribunal applied what he considered to be the
principles of justice, equity and good conscience and
dispensed with the drastic insistence on notice in writing.
In the High Court, the position taken up by the appellant
did not disturb the application of justice, equity and good
conscience. On the contrary, the Division Bench emphatically
asserted that the appellant never disputed this proposition.
Indeed, both in regard to notice to quit and notice of
forfeiture, the appellant accepted the application, not of
the TP Act as such, but of the rules of justice, equity and
good conscience. We may as well except the relevant
statement in the judgment of the High Court:
"In the present case, the provisions of the TP Act
had not been extended to Delhi during the material
period and these provisions would therefore, not be
applicable to the tenancy in question. It was not
disputed before us that in view of this only such of
the principles embodied in the provisions of ss. 106
and 111 of the TP Act would regulate the matter as
could be held to be consistent with the rules of
equity, justice and good conscience. It was also not
disputed before us that even though the provision of
section 106 of the TP Act laying down the manner in
which a tenancy may be terminated are technical in
character, in that they require such termination ’by
fifteen days’ notice expiring with the end of the month
of the tenancy’. It would be consistent with the
requirements of equity, justice and good conscience
that a tenant has reasonable notice of termination even
though it does not expire with the end of the month of
a tenancy. It was also not disputed that in the present
case, no notice whatever was sent to the tenant of the
application for eviction when the notice was sought to
be justified on the ground that no such notice was
necessary because the tenancy stood determined either
by efflux of time limited thereby in terms of the
principle embodied in s. 111(a) of the TP Act or by
forfeiture following the breach by the tenant of the
express condition regarding sub-letting in terms of the
principles embodied in s. 111(g) of the said Act."
916
If the appellant’s case was that the TP Act applied of
its own force, he would have urged so in the High Court,
especially because the appellate tribunal had dealt an
eviction blow on him by applying the rules of justice,
equity and good conscience. Moreover, the categorical
statement in the judgment of the High Court confirms the
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view that the appellant stuck to his stance of justice,
equity and good conscience. Nay more. Even in the grounds of
appeal to this Court" he has only harped on justice, equity
and good conscience and invoked s. 111(g) as embodying
equity and good conscience. For the first time he has, by a
volta face, switched to the TP Act as against the rules of
justice, equity and good conscience. It is too late in the
day to set up a new case like that. There are many reasons
why. Even though we have power to permit a new plea, we
should not exercise it here. We decline our discretion to
allow the appellant to travel into the new statutory
territory of s. 111(g). He has to stand or fall by his
submission that justice, equity and good conscience is the
alter ego of s. 111 (g) of the TP Act in its dual
requirements of (a) the breach of a condition providing for
re-entry and (b) notice in writing to the lessee of an
intention to determine the lease.
Once we assume the inapplicability of the TP Act to the
lease in question-an assertion of the respondent which we do
not feel compelled to consider in this appeal-we are
confronted by the concept of justice, equity and good
conscience which, admittedly, comes into play in the absence
of any specific legislative provision. In India and in other
colonies during the Imperial era a tacit assumption had
persuaded the courts to embrace English law (the civilizing
mission of the masters) as justice, equity and good
conscience. Throughout the Empire in Asia and Africa, there
was an inarticulate premise that English law was a blessing
for the subject peoples. Robert M. Seldman writes about
Sudan:
"The courts were simply directed to decide cases on the
basis of ’justice, equity and good conscience’ [Civil
Justice Ordinance, 1929, Ch. 9, 10 Laws of the Sudan 13
(1955) ]. However, the judges were all English lawyers;
and with magnificent insularity it developed that
’justice, equity and good conscience’ meant not merely
English common law but English statutory law as well.
The author has been told by an English barrister who
tried a case in the Sudan some years ago that he was
amazed to discover that ’justice, equity and good
conscience’ meant in his case the English Sales of
Goods Act, 1862."
(Law and Economic Development in Independent, English
Speaking, Sub-Saharan Africa-Wisconsin Law Review Vol.
1966, Number 4, Fall)
The Judicial Committee of the Privy Council struck a similar
note in Maharaja of Jeypore v. Rukmani Pattamahadevi(1)
where Lord Phillimore stated:
"They are directed by the several charters to
proceed where the law is silent, in accordance with
justice, equity,
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and good conscience, and the rules of English law as to
forfeiture of tenancy may be held and have been held to
be consonant with these principles and to be applicable
to India."
Unfortunately, even after liberation, many former colonies,
including India, did not shake off this neo-colonial
jurisprudence (See A.I.R. 1950 Bom. 123). This is the
genesis of the idea that Indian ’good conscience’ is English
Common Law during the reign of Empress Victoria ! The
imperatives of Independence and the jural postulates based
on the new value system of a developing country must break
of from the borrowed law of England received sweetly as
’justice, equity and good conscience’. We have to part
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company with the precedents of the British-Indian period
tying our non-statutory area of law to vintage English law
christening it justice, equity and good conscience’. After
all, conscience is the finer texture of norms woven from the
ethos and life-style of a community and since British and
Indian ways of life vary so much that the validity of an
anglophilic bias in Bharat’s justice, equity and good
conscience is questionable today. The great values that bind
law to life spell out the text of justice, equity and good
conscience and Cardozo has crystallised the concept thus:
"Life casts the mould of conduct which will some
day become fixed as law."
Free India has to find its conscience in our rugged
realities and no more in alien legal thought. In a larger
sense, the insignia of creativity in law, as in life, is
freedom from subtle alien bondage, not a silent spring nor
hot-house flower.
So viewed, the basic question is: What is the essence
of equity in the matter of determining a lease on the ground
of forfeiture caused by the breach of a condition ? Can any
technical formality be exalted into a rule of equity or
should a sense of realism, read with justice, inform this
legal mandate ? If Law and Justice-in the Indian context-
must speak to each other, statutory technicality such as
’notice in writing’ prescribed in s. 111(g) of the TP Act
cannot be called a rule of equity. It is no more than a
legal form binding on those transactions which are covered
by the law by its own force. The substance of the matter-the
justice of the situation-is whether a condition in the lease
has been breached and whether the lessor has, by some overt
act, brought home to the lessee his election to eject on the
strength of the said breach.
This Court, in Namdeo (supra) has explained the rule of
justice, equity and good conscience. It observed, at p.
1015:
"It is axiomatic that the courts must apply the
principles of justice, equity and good conscience to
transactions which come up before them for
determination even though the statutory provisions of
the Transfer of Property Act are not made applicable to
these transactions. It follows therefore that the
provisions of the Act which are but a statutory
recognition of the rules of justice, equity and good
conscience also govern those transfers. If, therefore,
we are satisfied that the particular principle to which
the legislature
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has now given effect by the amendment to section 111
(g) did in fact represent a principle of justice,
equity and good conscience, undoubtedly the case will
have to be decided in accordance with the rule laid
down in the section, although in express terms it has
not been made applicable to leases executed prior to
1929 or even prior to the Transfer of Property Act
coming into force.
The main point for consideration thus is whether
the particular provision introduced in sub-section (g)
of section 111 of the Transfer of Property Act in 1929
is but a statutory recognition of a principle of
justice, equity and good conscience, or whether it is
merely a procedural and technical rule introduced in
the section by the legislature and is not based on any
well-established principles of equity. The High Court
held, and we think rightly, that this provision in
subsection (g) of section 111 in regard to notice was
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not based upon any principle of justice, equity and
good conscience. In the first instance it may be
observed that it is erroneous to suppose that every
provision in the Transfer of Property Act and every
amendment effected is necessarily based on principles
of justice, equity and good conscience. It has to be
seen in every case whether the particular provisions of
the Act relied upon restates a known rule of equity or
whether it is merely a new rule laid down by the
legislature without reference to any rule of equity and
what is the true nature and character of the rule. Now,
so far as section 111 (g) of the Act is concerned, the
insistence therein that the notice should be given in
writing is intrinsic evidence of the fact that the
formality is merely statutory and it cannot trace its
origin to any rule of equity. Equity does not concern
itself with mere forms or modes of procedure. If the
purpose of the rule as to notice is to indicate the
intention of the lessor to determine the lease and to
avail himself of the tenant’s breach of covenant it
could, as effectively, be achieved by an oral
intimation as by a written one without in any way
disturbing the mind of the chancery judge. The
requirement as to written notice provided in the
section therefore cannot be said to be based on any
general rule of equity. That it is not so is apparent
from the circumstance that the requirement of a notice
in writing to complete a forfeiture has been dispensed
with by the legislature in respect to leases executed
before 1st April, 1930. Those leases are still governed
by the unamended sub-section (g) of section 111. All
that was required by that sub-section was that the
lessor was to show his intention to determine the lease
by some act indicating that intention. The principles
of justice, equity and good conscience are not such a
variable commodity, that they change and stand altered
on a particular date on the mandate of the legislature
and that to leases made between 1882 and 1930 the
principle of equity applicable is the one contained in
subsection (g) as it stood before 1929, and to leases
executed after 1st April 1930, the principle of equity
is the
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one stated in the sub-section as it now stands.
Question may also be posed, whether according to
English law a notice is a necessary requisite to
complete a forfeiture."
Of course, in that case, Mahajan, J. has dwelt at
length on the English law of landlord and tenant and the
discussion is partially suggestive of the English law of
real property being a good guide to the Indian Judges’ good
conscience. But the ratio is clear that processual
technicalities and even substantive formalities cannot
masquerade as justice and equity. The touchstone is simply
whether the formal requirement of the law is part of what is
necessarily just and reasonable. In this perspective, the
conclusion is clear that a notice in writing formally
determining the tenancy is not a rule of justice or canon of
commonsense. Realism, married to equity, being the true
test, we are persuaded that the pre-amending Act provision
of s. 111 (g) is in consonance with justice. If so, the mere
institution of the legal proceeding for eviction fulfils the
requirement of law for determination of the lease. The
conscience of the Court needs nothing more and nothing else.
The rule in Namdeo (supra) settles the law correctly
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Reference was made at the bar to the ruling in Mohd.
Amir(1) To understand that decision we have to make a
distinction between the principles embodied in s. 111(g) and
the provisions thereof. Not all the stipulations and
prescriptions in the section can be called the principles
behind it. In this light there is no contradiction between
the two cases of this Court-the earlier one of Namdeo
(supra) and the later Mohd. Amir(1). We are satisfied that
the situation in the present case is squarely covered by the
earlier ruling. The High Court is right in its view.
It is a fitting finale to this part of the argument
that in the High Court arguments proceeded on the footing
that the Supreme Court has ruled in Namdeo (supra) that
’there being no requirement in English law of a written
notice to the lessee of the intention of the lessor to
determine the lease on forfeiture, the provision of a notice
would not be considered as being consistent with the rules
of equity, justice and good conscience’. We have already
made our comments on the anglophonic approach and do not
wish to reiterate them here. However, there are certain
pregnant observations in the judgment under appeal pertinent
to the present discussion. Observed the High Court:
"In the case of Namdeo Lokman Lodhi the Supreme
Court was directly concerned with the question of the
requirement of written notice engrafted into the clause
(g) by the amendment of 1929 was of a technical nature
or could be said to be consistent with the English rule
regarding forfeiture and therefore, in consonance with
the principles of justice, equity and good conscience
and the question was clearly answered in the negative."
920
The irrelevance of the English law as such to notions of
good conscience in India notwithstanding, we agree that a
written notice is no part of equity. The essential
principles, not the technical rules, of the TP Act form part
of justice, equity and good conscience. The conclusion
emerges that the landlord’s termination of the tenancy in
this case is good even without a written notice.
Many other niceties of law were presented to us by Shri
A. K. Sen to extricate the tenant from eviction. They are
too unsubstantial and intricate for us to be deflected from
the sure and concurrent findings, read in the background of
an alternative accommodation being available to the tenant.
We dismiss the appeal but direct that this order for
eviction shall be executed only on or after March 1, 1976.
The over-all circumstances justify a direction that the
parties do bear their costs throughout.
P.H.P. Appeal dismissed.
921