SUPREME COURT OF INDIA
L.M. SHARMA AND J.S. VERMA, JJ.
Capt. B. V. DSouza, Appellant
Versus
Antonio Fausto Fernandes, Respondent.
Civil Appeal No. 6184 of 1983
Decided on 1-8-1989.
Advocates appeared
M/s. S. K. Mehta, Dhruv Mehta, Aman Vachher, and Atul Nanda, Advocates, for Appellant; Mr. S. K. Dholakia, Sr. Advocate and Mr. Praveen Kumar, Advocate with him, for Respondent.
Civil Procedure Code,1908 – Section 100 - Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968 – Section 56 – Suit for eviction – Premises - Appellant was inducted in disputed premises is an agreement of leave and licence or a deed of lease - Building belongs to respondent, and appellant claims to be in its occupation as a month to month tenant - Respondent instituted suit in civil court, out of which this appeal by special leave arises, for a decree for eviction of appellant alleging that he has been in occupation of building as a licensee and has illegally refused to vacate in spite of service of notice - Appellants defence is that he is a tenant protected by provisions of the Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968, and in view of S. 56 thereof the suit in civil court is not maintainable - Agreeing with plaintiff-respondent, trial court passed a decree which was confirmed on appeal by District judge - High Court dismissed second appeal filed by the appellant observing that it was concluded by concurrent findings of fact - Whether document (Ext. 20) executed by parties at the time appellant was inducted in disputed premises is an agreement of leave and licence or a deed of lease – Held, court are also not in a position to agree with learned counsel when he says that if parties themselves have chosen to describe transaction as a licence, court cannot make out a different case for them - It is well settled that the main purpose of enacting Rent statutes is to protect tenant from exploitation of landlord, who being in dominating position is capable of dictating his terms at inception of tenancy and Rent Acts must receive that interpretation which may advance object and suppress the mischief - Surrounding circumstances are also consistent with deed being one of lease - Notice to vacate premises was served on the appellant after several years of expiry of the term of agreement - It is not suggested on behalf of respondent that there is any relationship between parties or that they were friends which induced him to allow appellant to occupy building - Realisation of rent which has been described in the document as "compensation reserved for use and occupation" was sole consideration of the transaction - In this background the description of parties as lessor and lessee or rent as compensation does not carry much weight - For the reasons mentioned court hold that Ext. 20 was in reality a document of lease and the appellant has been enjoying the exclusive possession thereof in the capacity of month to month tenant - As a result suit was in view of provisions of the Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, not maintainable - Appeal is accordingly allowed, decree passed by courts below is set aside and suit is dismissed - Appeal allowed.
JUDGMENT
SHARMA, J.:— The only point involved in this appeal is whether the document (Ext. 20) executed by the parties at the time the appellant was inducted in the disputed premises is an agreement of leave and licence or a deed of lease. The building belongs to the respondent, and the appellant claims to be in its occupation as a month to month tenant. The respondent instituted the suit in the civil court, out of which this appeal by special leave arises, for a decree for eviction of the appellant alleging that he has been in occupation of the building as a licensee and has illegally refused to vacate in spite of service of notice. The appellants defence is that he is a tenant protected by the provisions of the Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968, and in view of S. 56 thereof the suit in the civil court is not maintainable. Agreeing with the plaintiff-respondent, the trial court passed a decree which was confirmed on appeal by the District judge. The High Court dismissed the second appeal filed by the appellant observing that it was concluded by concurrent findings of fact.
2. We do not agree with the High Court that the findings of the courts below were those of fact so as to be binding on the High Court under S. 100 of the Code of Civil Procedure. The case has to be decided on the nature of possession of appellant which is dependent on a correct interpretation of the document Ext. 20.
3. The document Ext. 20 has been described as an agreement of leave and licence and the parties as the Licensor and the Licensee. But it is significant to note that in the very first sentence of the document the respondent is described as "Landlord hereinafter called the Licensor". However, this cannot answer the disputed issue as it is firmly established that for ascertaining whether a document creates a licence or lease, the substance of the document must be preferred to the form. As was observed by this Court in Associated Hotels of India Ltd. v. R. N. Kapoor : (1960) 1 SCR 368 : (AIR 1959 SC 1262), the real test is the intention of the parties - whether they intended to create a lease or licence. If an interest in the property is created by the deed it is a lease but if the document only permits another person to make use of the property "of which the legal possession continues with the owner", it is a licence. If the party in whose favour a document is executed gets exclusive possession of the property, prima facie he must be considered to be a tenant; although this factor by itself will not be decisive. Judged in this light, there does not appear to be any scope for interpreting Ext. 20 as an agreement of leave and licence.
4. The document has been placed before us by the learned counsel for the appellant. Although as stated earlier, it has been described as an agreement of leave and licence and the parties as the "Licensor" and the "Licensee", its provisions unmistakably indicate that the appellant was being let in as a tenant on the monthly rental of Rs. 350/- (besides water and electricity charges) to be paid regularly on or before the 5th day of each consecutive month. By clause 5, it was agreed that the appellant "shall not sub-let, under-let or part possession of the premises to any stranger nor shall he keep the premises vacant for more than 3 months without the consent of the Licensor", that is, the respondent. The question of executing a sub-lease or sub-letting can arise only by a tenant. If a licensee inducts any person in the property as his tenant, it cannot be described as sub-letting. In clause 15 it is stated that on the expiry of the period, the deed "shall be renewable thereafter at the will of the licensee"; and in the event of the licensee not desiring to renew, "shall give one months notice in writing". These terms are not consistent with the respondents case of licence, and indicate that an interest in the property was created in favour of the appellant in pursuance of which he wa
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