Haridas Girdhardas vs Varadaraja Pillai

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1971 Supreme(SC) 418

SUPREME COURT OF INDIA
S.M. SIKRI, C.J.I., A.N. RAY AND D.G. PALEKAR, JJ.
Haridas Girdharidas and others, Appellants
Versus
Varadaraja Pillai and another, Respondents.
Civil Appeal No. 74 of 1971, D/18-8-1971.
Advocates appeared
Mr. M. C. Chagla, Sr. Advocate, (M/s. R.V. Pillai and P. Kesava Pillai, Advocates, with him), for Appellants; M/s. K. Parasaran, K. Rajendra Chowdhary and Hari Singh, Advocates (for No. 1) and Mr. A. V. Rangam, Advocate, (for No. 2), for Respondent.

Headnote:
Madras City Tenants Protection Act, 1921 – Section 12 – Lease Deed – Depreciation – Payment – Whether plaintiffs were entitled to enforce Clause 4 (d) of the lease deed in view of the Madras City Tenants Protection Act, 1921, as amended by the Amending Act of 1955. – Plaintiffs who were landlords leased to defendant No. I the plot of land on Mount Road, Madras, under a duly registered lease deed, for a period of 15 years 3 months from March 1, 1939 at a rent of Rupees 560/- per month on terms and conditions set out therein with an option for renewal in favour of defendant No. 1 for a further period of 10 years from March 1, 1954 but at an enhanced rent of Rupees 630/per month, and subject to the other stipulations except the clause for renewal. – Plaintiffs exercised the option of buying the buildings erected on the demised land by letter and sent along with full amount of Rupees 50,000/- by cheque in payment for all the superstructure without deducting any amount for depreciation, as provided in the. said clause of the lease deed, stating that they had decided not to stand on their strict legal rights to deduct depreciation but to pay the full price of Rupees 50,000/- as the buildings had been maintained and kept in good repair. – Defendant No. 1 however, refused the sum of Rupees 50,000/- and contended that the plaintiffs were not entitled to claim any rights on the footing of Clause 4 (d) of the lease deed or to offer the sum of Rupees 50,000/- as the price for purchasing the superstructure put up by him on the land leased to him – Held, Clause 2, in he deed, read with Clause 4, amounted to stipulations as to the erection of buildings and, in this view the proviso to Section 12 applied. – Court have set out the relevant clauses of the lease deed in this case and it seems to us that these clauses amount to a stipulation as to the erection of buildings and consequently the proviso to Section 12 applies. – It must be remembered that Madras City Tenants Protection Act, 1921, was passed in 1922 to give protection to certain classes of tenants who had constructed buildings on others lands in the hope that they would not be evicted so long as they paid a fair rent for the land. – It was not the object of the Act to cover hope if the hope was entertained contrary to express stipulations as erection of buildings. – Accordingly proviso to Section 12 exempted and stipulations made by the tenant in writing registered as to the erection of buildings, in so far as they related to buildings erected after the date of the contract. – Plaintiffs-appellants applied for amendment of their plaint – Court allowed amendment to be made – Counsel for defendant objected to prayer regarding mesne profits but as plaintiffs are limiting mesne profits for use and occupation from August 4, 1968, i.e. three years before date of application for amending plaint, defendant can have no just cause to complain – Appeal Allowed

Judgment

SIKRI, CJI. : - This appeal is directed against the judgment of the Madras High Court (Veeraswarni, C. J., and Gokulakrishnan, J.) dismissing the appeal filed by the plaintiffs-appellants against-the judgment and decree of Kunhamed Kutti, J., dated February 20, 1967, made in the exercise of the ordinary original civil jurisdiction of the Madras High Court.

2. The plaintiffs had filed a suit on the following allegations. The plaintiffs who were landlords leased to defendant No. I the plot of land on Mount Road, Madras, under a duly registered lease deed dated November 17, 1938, for a period of 15 years 3 months from March 1, 1939 at a rent of Rupees 560/- per month on the terms and conditions set out therein with an option for renewal in favour of defendant No. 1 for a further period of 10 years from March 1, 1954 but at an enhanced rent of Rupees 630/per month, and subject to the other stipulations except the clause for renewal. For our purpose the following clauses are important.

"2 The Lessee covenants with the Lessors as follows :-

(c) Within a reasonable period from the date hereof, at his own cost and charges, under the supervision of the Lessors and in accordance with plans, elevations, sections and specifications to be first approved by the Lessors, erect, cover in and complete in a substantial and workman like manner on the demised plot of land. a theatre with all proper offices and out buildings such as bazars, restaurants, motor and dunamo sheds etc., and fences, drains, sewers to be used for production and exhibition of films and for staging Drama therein and to expend in building such theatre a sum of not less than Rupees 50,000/-. The Lessee shall be at liberty to put up other buildings in addition to the above.

(d) Not to have an entrance for the theatre going public from the General Peters Road, so long as the Police Authorities do not permit such access from the said road.

(f) In the erection and completion of such buildings to do all acts and things required by and perform the works conformably in all respects with the provisions of the statutes applicable thereto and with the by-laws and regulations of the Corporation of Madras to pay and keep the Lessors indemnified against all claims for the fees, charges, fines, penalties and other payments whatsoever which during the progress of the works may become payable or be demanded by the said authorities in respect of the said works or of anything done under the authority herein contained and from time to time discharge and pay all claims, assessments, outgoings now or at any time hereafter chargeable against an owner by Statute or otherwise in regard to the said plot of land or any buildings thereof, save and except the property tax and quit rent levied on the demised plot of land which alone shall be born by the Lessors.

(g) Not at any time to cause or permit any public or private nuisance in or upon the demised plot of land or anything which shall cause unnecessary annoyance, inconvenience or disturbance to the Lessors or to the occupiers of any adjoining or neighbouring premises or which shall lead to interference by the Police or Local Authorities and at all times to comply with all Municipal and Police requirements.

(h) Not to install or cause to be installed on the demised land or any part thereof any petrol pump, without getting the Lessor s previous permission in writing and without providing sufficient safeguards to the Lessors neighbouring owners and their other tenants.

(o) Not to put up a compound wall on the southern side of the demised plot but to put up only iron railing or bars with a low wall if necessary, not exceeding three feet in height"

3. It was further agreed between the lessor and lessee :-

"4. (d) At the expiration or sooner determination of the tenancy, the Lessors shall have the option of buying the buildings to be erected on the demised land the basis of valuation being as follows :-

The buildings shall be valued at Rupees 50,000/- irr