The legislature has the power to classify different types of leases and provide different notice periods for their termination, and such classification is not discriminatory if it is based on reasonable grounds.

B. SUBHASHAN REDDY, J.

( 1 ) THIS writ petition raises the constitutional vires of statutory provisions contained under Section 106 of Transfer of property Act (hereinafter referred as "the act" ). The complaint is that the petitioner being an educational society had been running the schools and Junior College to impart education to the students and that the petitioner is a junior college at Himayatnagar in a rented premises and that the said lease is governed by the Act and after termination of the lease, the landlord had instituted a suit for eviction in O. S. No. 873/1992 on the file of the v Additional Judge, City Civil Court, hyderabad, and that the said suit was instituted after issuing 15 days notice as contemplated under Section 106 of the Act, and that as the petitioner s college runs on the basis of an academic year it is highly improbable and impossible to disrupt its activities and in such cases, the period of notice terminating the lease should be six months on par with the agricultural leases and the leases in respect of premises in which manufacturing process is carried on.

( 2 ) THOUGH the Act is preconstitutional one, it is saved under the constitution. It is a valid piece of legislation. The learned counsel for the petitioner stresses the point of discrimination on the touch stone of Article 14 of Indian constitution on the ground that when the leases of immovable properties for agricultural and manufacturing process require six months termination notice, on the basis of the nature of the said operations, either agricultural or manufacturing process, being longer in duration, and when similar circumstances exist for leases like the one relating to the petitioner where there cannot be interruption during the academic year, the petitioner also should be given the same benefit and as he is not similarly treated as that of agricultural and manufacturing leases, section 106 of the Act should be declared as unconstitutional and violative of Articles 14, 19 and 21 of the Constitution of India. At the outset, I do not find any relevance of Articles 19 and 21 of Indian Constitution to the instant case.

( 3 ) THE argument relating only to article 14 can be considered. The question of striking down Section 106 of the Act cannot arises at all and the prayer in that regard is mis-conceived. Merely because a lease of immovable property for agricultural or manufacturing process can be terminated by six months notice, and as the lease like the petitioner s can be terminated by 15 days notice, the provision contained under section 106 of the Act cannot be declared as unconstitutional as being violative of Article 14 of the Indian Constitution. The legislature has treated the agricultural and manufacturing leases as a separate class from that of the rest of the leases. That apart, as the petitioner seeks similar treatment as that of agricultural and manufacturing leases requiring six months notice, the question of striking down the provision which deals with agricultural and manufacturing leases distinctly cannot arise. Further, Section 106 of the Act is applicable only in the absence of the contract to the contrary. If the contract operates then Section 106 of the Act cannot be pressed into the service at all. If there is no contract to the contrary, the agricultural and manufacturing leases are treated from year to year, while other leases are treated as month to month. Section 106 of the Act does not prohibit a contract to the effect that even agricultural or manufacturing leases can be less than an year. Further, it also does not prohibit, if there is a contract, terminating the agricultural and manufacturing leases of ore or more years, by just a notice without specifying anytime. If Section 106 of the Act is struck down, it will lead to anomalies and also takes out the protection to the tenants, as in that event, without any notice the tenant can be evicted. If at all the argument of the petitioner is to be considered, it

Click Here to Read the rest of this document