SUPREME COURT OF INDIA
M.M. PUNCHHI AND Mrs. SUJATA V. MANOHAR, JJ.
Shri Janki Devi Bhagat Trust, Agra, Appellant
Versus
Ram Swarup Jain (dead) by LRs., Respondent. 2483
Civil Appeal No. 696(N) of 1975, D/- 14-8-1995.
In the absence of a contract between the parties a lease of immovable property for manufacturing purposes shall be deemed to be a lease from year to year terminable by six month’s notice
Transfer of Property Act - Section 106 -Respondent was a manufacturing lease - Ejectment and recovery of arrears of rent - Appellant-trust had given shop premises situated in Agra belonging to appellant to original respondent on lease at a monthly rent sometime - terms relating to tenancy which were agreed upon between parties were reduced to writing- This document however not registered- As respondent did not pay any rent to appellant served a notice to quit on respondent and filed a suit for and recovery of arrears of rent- suit was decreed by Trial Court but was dismissed by appellate Court on ground that appellant was not a registered body and all trustees of trust had not joined in suit appellant-trust thereafter got itself registered appellant served a notice to quit on respondent which notice period - As respondent failed and neglected to comply with notice appellant filed a suit against respondent and recovery of arrears of rent and other consequential reliefs- suit was filed before Court at Agra- suit was decreed by trial Court- respondent filed an appeal before Additional Civil Judge Agra –Held, Courts have that it was lease from month to month and was not for a term exceeding one year- In view this finding deeming provisions of first part of Section Transfer of Property Act cannot be attracted present case property for manufacturing purposes shall be deemed to be a lease from year to year terminable by six months notice- In present case there is a clear finding to effect that lease in question was not from year to year or for period exceeding one year- Therefore even though lease may be for a manufacturing since lease was not from year six months notice was not required- A manufacturing lease which is not from year does not require six months notice of termination- It will fail in second half Section requiring fifteen days notice of termination- A lease from month to month or a lease other than a lease from year to year terminable by fifteen days notice- Hence notice in present case is a valid notice to quit- High Court having come to conclusion that lease period exceeding one year and was not a lease from year to year erred in holding that six months notice to quit was required- Such a notice is required provided there is no contract to contrary only when a manufacturing lease deemed from year to year- This not being case lease is terminable by fifteen days notice even if lease is a manufacturing lease - Appeal allowed
Judgment
Mrs. SUJATA V. MANOHAR, J. :- The appellant-trust had given shop premises No. 1930/1 situated in Mohalla Ghatia Azam Khan, Agra, belonging to the appellant to the original respondent on lease at a monthly rent of Rs.75/- sometime in 1954. The terms relating to the tenancy which were agreed upon between the parties were reduced to writing. This document is Ex. 12. It is, however, not registered. As the respondent did not pay any rent to the appellant since 1-1-1960 the appellant served a notice to quit dated 27-3-1961 on the respondent and filed a suit for ejectment and recovery of arrears of rent. The suit was decreed by the Trial Court but was dismissed by the appellate Court on the ground that the appellant was not a registered body and all the trustees of the trust had not joined in the suit. The appellant-trust thereafter got itself registered on 8-5-1963. The appellant served a notice to quit on the respondent which is dated 30th of May, 1963. The notice period is 30 days. As the respondent failed and neglected to comply with the notice the appellant filed a suit against respondent for ejectment and recovery of arrears of rent and other consequential reliefs. The suit was filed before the munsifs Court at Agra. The suit was decreed by the trial Court. The respondent filed an appeal before the Additional Civil Judge, Agra.
2. The only point which was raised by the respondent in appeal was that the notice dated 30-5-1963, terminating the tenancy of the respondent was invalid because the lease in favour of the respondent was a manufacturing lease; and six months notice under Section 106 of the Transfer of Property Act was necessary in order to terminate the tenancy of the respondent. The appellate Court rejected this contention and held that in view of the agreement which was entered into between the parties (Ex. 12) there was an express term of the contract that a notice in writing of fifteen days only was necessary for the termination of tenancy.
3. In second appeal, however, before the High Court at Allahabad, a learned single Judge has come to the conclusion that the terms of the lease which are recorded in Ex.12 cannot be relied upon in view of the provisions of Section 107 of the Transfer of Property Act. Hence the term in the agreement relating to giving fifteen days notice of termination cannot be looked at. He held that as the lease was a manufacturing lease, six months notice was required under the deeming provision of Section 106 of the Transfer of Property Act. In its absence, the suit must fail. He, therefore, allowed the appeal and dismissed the appellants suit for ejectment. Learned single Judge, however, decreed the claim of the appellant for arrears of rent. The present appeal is from this judgment of the High Court.
4. Under Section 107 of the Transfer of Property Act a lease of immovable property from year to year or for any term exceeding one year can be made only by a registered instrument. Any lease of this kind would be void unless it is created by a registered instrument. All other leases of immoveable property may be made either by a registered instrument or by an oral agreement accompanied by delivery of possession. All the Courts below have held that there was a valid lease. The High Court has also recorded that it was not the contention of the respondent that this lease was from year to year. The contention was that the lease was for a term exceeding one year and was, therefore, compulsorily registrable under the first part of Section 107 of the Trnasfer of Property Act. This contention has been negatived by the High Court as also by both the Courts below. The High Court has held that the lease was not for a term exceeding one year, and so was not compulsorily registrable under the first part of Section 107. It, however, held that since the lease was for a manufacturing purpose, six months notice to quit was required under Section 106. In its absence, termination was not valid.
5. This reasoni
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