SUPREME COURT OF INDIA
Y.V. CHANDRACHUD, R.S. SARKARIA AND A.C. GUPTA, JJ.
Damadilal and others, Appellants
Versus
Parashram and others, Respondents.
Civil Appeal No. 884 of 1968
Decided on 7-5-1976.
Advocates appeared
Mr. S. V. Gupta, Sr. Advocate, (M/s. R. P. Pandey and S. S. Khanduja, Advocates with him), for appellants; Mr. F. S. Nariman, Sr., Advocate, (M/s. J. B. Dadachanji, P. C. Bhartari, K. L. John, Advocates of M/s. J. B. D. Co. Advocates with him), for Respondents.
The definition of tenant contained in section 2 (1) of the Act makes a person continuing in possession after the determination of his tenancy a tenant unless a decree or order for eviction has been made against him, thus putting him on par with a person whose contractual tenancy still subsists. The incidents of such tenancy and a contractual tenancy must therefore be the same unless any provision of the Act conveyed a contrary intention. That under this Act such a tenant retains an interest in the premises, not merely a personal right of occupation, will also appear from section 14 which contains provisions restricting the tenants power of subletting.
A contractual tenant has an estate or interest in premises from which he carves out what he gives to the sub-tenant. Section 14 read with section 2 (i) makes it clear that the so called statutory tenant, has the right to sub-let in common with a contractual tenant, and this is because he also has an interest in the premises occupied by him.
The concept of statutory tenancy under the English Rent Acts and under the Indian statutes like the M.P. Accommodation Control Act rests on different foundations. It must therefore be held that the predecessors in-interest of the present respondents had a heritable interest in the premises and consequently the respondents had the right to prosecute the appeal in the High Court. [Para 12]
(2) Accommodation Control Act, 1961 (MP) - S. 12 (1) (a) - tender of rent by cheque - is valid tender.
Rent is payable in the same manner as any other debt and the debtor has to pay his creditor in cash or other legal tender, but there can be no dispute that the mode of payment can be altered by agreement. In the contemporary society it is reasonable to suppose agreement to pay cheque as implied unless the circumstances of the case indicate other wise. In the circumstances of this case, the High Court rightly held that the cheque sent to the plaintiffs amounted to valid tender of rent. 1970 JLJ 1016 confirmed. [Para 13]
(3) Civil P.C., 1908 - S. 100 - Accommodation Control Act, 1961 (M.P.) - S. 12 (f) - first appellate Court overlooking a material part of evidence - finding perverse - may be set aside in second appeal.
It is well established that if a finding of fact is arrived at ignoring important and relevant evidence, the finding is bad in law. AIR 1971 SC 1049 relied on. 1970 JLJ 1016, confirmed. [Para 14]
(4) Tenancy - tenant has estate in property - such estate is heritable. [Para 11]
JUDGMENT
A. G. GUPTA, J. :— Damadi Lal, Sheo Prasad and Tirath Prasad who were members of a Hindu joint family brought a suit for ejectment on July 31, 1962 against their tenants Begamal and Budharmal on the grounds mentioned in cls. (a) and (f) of Sec. 12 (1) of the Madhya Pradesh Accommodation Control Act, 1961, The relevant provisions are in these terms :
"Sec. 12. Restriction on eviction of tenants. - (1) Notwithstanding anything to the contrary contained in any other law or contract, no suit shall be filed in any Civil Court against a tenant for his eviction from any accommodation except on one or more orf the following grounds only, namely:-
(a) That the tenant has neither paid nor tendered the whole of the arrears of the rent legally recoverable from him within two months of the date on which a notice of demand for the arrears of rent has been served on him by the landlord in the prescribed manner;
x x x x
x x x x
(f) that the accommodation let for non-residential purposes is required bona fide by the landlord for the purpose of continuing or starting his business or that of any of his major sons or unmarried daughters if he is the owner thereof or for any person for whose benefit the accommodation is held and that the landlord or such person has no other reasonably suitable non-residential accommodation of his own in his occupation in the city or town concerned."
Plaintiffs case under Sec. 12 (1) (a) was that the defendant tenants had defaulted in paying rent for the period October 1, 1961 to May 31, 1962 and did not also pay or tender the amount in arrears within two months of the service of the notice of demand. Clause (f) of Section 12 (1) was invoked on the allegation that the accommodation let was required bona fide by the plaintiffs for the purpose of starting their own business. Before the suit was instituted the plaintiffs had determined the tenancy from May 31, 1962 by a notice dated May 7, 1962. The house in dispute which is in Bazar Chowk in District Satna was let out to the defendants at a monthly rent of Rupees 275/- for the purpose of their business. The plaintiffs reside in village Nadan, Tashil Maihar, where they carry on their business.
2. The trial Court by its judgment and decree dated November 11, 1964 dismissed the suit for eviction. There was some dispute between the parties as to the rate of rent; ultimately the plaintiffs admitted that the rent was fixed at Rupees 175/- per month with effect from August 1, 1961 by the Rent Control Authority and a sum of Rs. 1200/- which was the amount in arrears, had been tendered to the plaintiffs by cheque on May 26, 1962 which the plaintiffs refused to accept. The trial Court was of opinion that the refusal was valid because "tendering by cheque is no valid tender" unless there was an agreement that payment by cheque would be acceptable and that he defendants were therefore defaulters within the meaning of Section 12 (1) (a). However, in view of the dispute as to the amount of rent payable by the tenants, which was not determined during the pendency of the suit as required by Sec. 13 (2) the trial Court held that no order for eviction under Section 12 (1) (a) could be made in this case and passed a decree for Rs. 1200/- in favour of the plaintiffs.
3. On the question of the plaintiffs requirement of the premises for their own business, the trial Court found itself unable to accept the evidence adduced on behalf of the plaintiffs. Of the witness examined by the plaintiffs on the point, the evidence of P. Ws. 1, 3, and 4 was not relied on because none of them was considered to be an independent witness and, further, because it was apparent from their evidence that what they said was that were tutored to say by the plaintiffs. The other three witness were plaintiffs Damadi Lal and Tirath Prasad (P. W. 2 and P. W. 6 respectively) and Radhy Sham (P. W. 5), a son of plaintiff Sheo Prasad. They were also disbelieved because of the following reasons. Damadi Lal tried to give
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