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2012 Supreme(SC) 641

Supreme Court of India
T.S. THAKUR & GYAN SUDHA MISRA,, JJ.
M/s Payal Vision Ltd.
Versus
Radhika Choudhary
CIVIL APPEAL NO. 6734 OF 2012 (Arising out of S.L.P. (C) No.10576 of 2011)
Decided On : 20-09-2012

IMPORTANT POINTS
Tenant-landlord relationship; challenge to landlords title.

Headnote:(a) Code of Civil Procedure, 1908 - Order XII, Rule 6 - Admission made on the basis of pleadings in a given case - Cannot be taken as an admission in a different fact situation. (Para 7)

        (2010) 6 SCC 601 - Relied upon

        (2010) 4 SCC 753 - Distinguished impliedly

        (b) Code of Civil Procedure, 1908 - Order XII, Rule 6 - Pleadings in the plaint and written statement revealing tenant-landlord relationship - Nature of use of the premises may be material for determining mesne profit - Immaterial for decree of possession. (Para 10)

        (c) Code of Civil Procedure, 1908 - Order XII, Rule 6 - Structural changes made by tenant with or without landlords consent - Does not affect tenant-landlord relationship. (Para 11)

        Transfer of Property Act, 1882 - Section 106 - Lease deed not registered - Tenant becomes month to month tenant - Tenancy can be terminated by notice under section 106. (Para 12)

        (d) Evidence Act, 1872 - Section 116 - Tenant challenging title of landlord on the basis of an order anterior to commencement of tenancy - Thus tenant challenging landlords title on the date of commencement of tenancy - Not permissible. (Para 15)

        (1987) 4 SCC 319; (1994) 4 SSC 251; AIR 1937 PC 251 - Relied upon

        (2005) 11 SCC 279 - Relied upon impliedly

       Facts of the case:

        The suit for possession of tenanted premises was decreed by the trial court finding existence of tenant-landlord relationship and notice terminating the tenancy.

        In appeal, High Court set aside the decree and remitted the matter back.

       Finding of the Court:

        Impugned order is not sustainable.

       Result : Appeal allowed.

Judgement Key Points

Key Points: - The court may grant a decree for possession under Order XII Rule 6 CPC based on admissions about the landlord-tenant relationship and service of notice, even if the lease is unregistered, where there is no dispute on those two aspects. (!) (!) (!) - A tenancy can be month-to-month under Section 106 TPSA if not protected by Rent Control, and termination may be effected by service of a notice; the existence of the tenancy and its termination are pivotal for granting possession. (!) (!) - Admission of the lease and rent amount in pleadings can be used to infer jural relationship and tenancy, and such admissions can support decree for possession under Order XII Rule 6, with the precise scope depending on the factual context of the case. (!) (!) (!) - The tenant cannot deny landlord’s title under Section 116 of the Evidence Act when tenancy is established and attornment or conduct acknowledges landlord’s title, affecting challenges to title in eviction suits. (!) (!) (!) - The nature of use (residential vs commercial) may be immaterial for possession, though it may affect mesne profits. (!) (!) (!)

How to determine admission under Order XII Rule 6 CPC based on pleadings in a suit for possession of tenanted premises?

What is the effect of tenancy termination under Section 106 of the Transfer of Property Act on a suit for possession where the tenancy is month-to-month and not protected by Rent Control?

What is the impact of a tenant admitting the tenancy and jural relationship on the ability of the court to grant a decree for possession under Order XII Rule 6 CPC regardless of use (residential or commercial) of the premises?


Judgment :-

T.S. THAKUR, J.

1. Leave granted.

2. In a suit for possession and recovery of mesne profit filed by the plaintiff- appellant before the trial Court of Additional District Judge, Delhi, the plaintiff prayed for a decree for possession in its favour on admissions, invoking the Court’s powers under Order XII Rule 6 of the Code of Civil Procedure, 1908. The trial Court examined the prayer and held that the jural relationship of landlord and tenant was admitted between the parties and so was the rate of rent as settled by them. Service of a notice terminating the tenancy of the defendant-respondent also being admitted, the trial Court saw no impediment in decreeing the suit for possession of the suit property. The application filed by the plaintiff-appellant under Order XII Rule 6 of the CPC was accordingly allowed and the suit filed by the plaintiff to the extent it prayed for possession of the suit property decreed in its favour.

3. Aggrieved by the decree passed against the respondent, the respondent filed Regular First Appeal No. 81 of 2009 before the High Court of Delhi which was allowed by the High Court in terms of its order dated 14th March, 2011 reversing the judgment and decree passed by the trial Court and remanding the matter back to the said Court for disposal in accordance with law. The present appeal by special leave assails the correctness of the said judgment.

4. Mr. Nagendra Rai, learned counsel appearing on behalf of the appellant, strenuously argued that the High Court had fallen in error in holding that there was no clear admission by the defendant either regarding the existence of a relationship of landlord and tenant between the parties or the service of notice of termination of tenancy upon the defendant. He referred to the averments made in the plaint and the written statement to buttress his submission that the existence of the tenancy was unequivocally admitted, no matter the defendant-tenant had questioned the validity of the lease deed in her favour for want of stamp duty and registration as required under law. The fact that the lease deed was not registered did not, contended Mr. Rai, make any material difference so long that the defendant had been put in possession of the demised property pursuant to the said document and so long as she held the same as a tenant. The rate of rent was also not disputed by the defendant nor was the service of notice of termination, which aspects alone were relevant and if admitted or proved, sufficient for the Court to decree the suit for the relief of possession. Mr. Rai submitted that the defendant had no doubt disputed the title of plaintiff-appellant and alleged that the land underlying the super structure had vested in the Gram Sabha but any such contention was not available to her in view of Section 116 of the Indian Evidence Act, 1872 that estopped a tenant from denying the title of the landlord. Relying upon the decisions of this Court in Karam Kapahi v. Lal Chand Public Charitable Trust (2010) 4 SCC 753 and Charanjit Lal Mehra v. Kamal Saroj Mahajan (2005) 11 SCC 279, Mr. Rai argued that the High Court ought to have refused any interference with the decree passed by the Court below especially when no triable issue arose for determination by the trial Court.

5. On behalf of the respondent, it was argued that the High Court was justified in holding that the written statement did not contain a clear and unequivocal admission of the relevant aspects, namely the existence of the jural relationship of landlord and tenant between the parties and the termination of the tenancy by service of a notice under Section 106 of the Transfer of Property Act, 1882. According to him, the High Court was also justified in relying upon the decision of this Court in Jeevan Diesels & Electricals Ltd. v. Jasbir Singh Chadha (2010) 6 SCC 601 while reversing the judgment and decree passed by the Court below.

6. In a suit for recovery of possession from a tenant whose tenancy

























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