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1964 Supreme(AP) 27

Andhra Pradesh High Court
Judges : ANANTA NARAYANA AYYAR, P.SATYANARAYANA RAJU
Cheekati kuriminaidu - Appellant
Versus
Karri Padmanabham Bhukta - Respondent
Decided On : 02-20-64

Section 111 (f) of the Transfer of Property Act, which deals with implied surrender of leases, is based on principles of justice, equity, and good conscience and applies to agricultural leases.

Headnote:

INAM LANDS - LEASE - MORTGAGE - SURRENDER OF LEASE - SECTION 111 (F) OF THE TRANSFER OF PROPERTY ACT - APPLICABILITY TO AGRICULTURAL LEASES - IMPLIED SURRENDER - WHETHER TAKING OF MORTGAGE BY LESSEE AMOUNTS TO IMPLIED SURRENDER OF LEASE - HELD, NO.

Fact of the Case:

The petitioners, who are either lessees or mortgagees or their successors-in-interest, filed a writ petition challenging the order of the Sub-Collector, Parvatipuram, which held that the petitioners were not entitled to 2/3rds of the pattas for the lands in question as they had surrendered their leases by taking mortgages on the same lands.

Finding of the Court:

The court held that Section 111 (f) of the Transfer of Property Act, which deals with implied surrender of leases, is based on principles of justice, equity, and good conscience and applies to agricultural leases. However, on the facts and circumstances of the case, the court found that the taking of mortgages by the respective lessees did not amount to an implied surrender by them of their respective leases and that the leases were capable of co-existing and did in fact co-exist with the respective mortgages.

Issues: 1. Whether Section 111 (f) of the Transfer of Property Act applies to agricultural leases? 2. Whether the taking of a mortgage by a lessee amounts to an implied surrender of the lease?

Ratio Decidendi: 1. Section 111 (f) of the Transfer of Property Act, which deals with implied surrender of leases, is based on principles of justice, equity, and good conscience and applies to agricultural leases. 2. The taking of a mortgage by a lessee does not necessarily amount to an implied surrender of the lease. The court must consider the facts and circumstances of each case to determine whether the lease has been surrendered.

Final Decision: The court quashed the order of the Sub-Collector and restored the order of the Inam Deputy Tahsildar, which had granted the petitioners 2/3rds of the pattas for the lands in question.

ANAKTHANARAYANA AYYAR, J.

( 1 ) TEN petitioners have filed this writ petition praying that this Court may call for the records relating to the order of the Sub-Collector, Parvatipuram in I. A. C. R. A. 10 of 1962 dated 9-7-1952 and issue 3 writ of certiorari or any other appropriate writ quashing that order.

( 2 ) THE relevant facts are as follows: Certain lands in the village of Neelakanthapurarn wero leased out by the owners in favour of certain lessees under cowle (Ex. D. 5) dated 5-2-1906 for a period of 3 years. "it provided for a rent of RS. 51-4-0 per year. Though the period of lease under it expired in 1909, beyond doubt or dispute, the tenants continued to be in possession as lessees holding over and cultivated the lands up to date. On 10-5-1927 the owners of the lands executed a mortgage deed (Ex, P-5) in favour of the persons who were then lessees. It provided as follows :-"i have to-day borrowed from you Rs. 666. 10. 8 repayable with an annual interest of Rs. 40. 00 thereon and as A security for the due discharge of the above debt I have given you possession of our lands situate in Neelakantapuram alias Chinnayavaiase. . . . . which have been in your occupation and cultivation since a very long time. . . . . Possession of the above lands is given to you for the stipulated annual rent of Rs. 65. 00 and so cercefartoe you can enjoy the said lands and be appropriating Rs. 40. 00 from out of the above stipulated ren[ yourself every year towards the interest due to you on this mortgage debt and from out of the balance be paying Rs. 5. 00every year to the Government towards the quit rent and kattubadi on these lands and be paying the remaining Rs. 19. 00 to us by the 15th of Kerteekam every year and obtain receipts from us. After thus enjoying for a period of 15 years from this Prabha to 30th of Phalguna of Vrusha if your principal amount of Rs. 1000. 00 is paid by 30th of Phalguna in any year, you give back this deed, quit rent etc. , receipts and the lands to us. . . . . "the persons, who claim to be interested in these lands as mortgagees and lessees or their successors-in-interest, are petitioners 7 to 10. 2-a. Similarly the owner leased out cerain other lands by lease deed [ex. D-1) for a period of 3 years for lands situate in the same village. Subsequently, the owner executed a mortgage deed (Ex. D-2) on 13-5-1927 in favour of the persons who were holding the lease for a sum of Rs. 1000/. This document contained recitals as follows :-"i have today borrowed Rs. 1000. 00 (Rupees one thou-sand) from you repayable with an annual interest of Rs. 60. 00thereon and as a security far the due discharge of the above debt I have given you possession of the lands called Chavaka Polam covered by Inam T. D. No. 394, situate in Neelakantapuram. . . . . which have been in your occupation and cultivation since a very long time ana. . . . . possession of the above said lands was given for the stipulated annual rent of Rs. 97. 8. 0 and so henceforth you can cullivate and enjoy all cultivated and cultivable lands and be appropriating every year Rs. 60. 00yourself from out of the above stipulated rent towards the interest payable to you on this mortgage amount by the 15th of Pushya every year, and from out of the balance, be paying Rs. 9 every year towards the quit rent and kattu-badi payable to the Govt. during the month of Sravana each year obtaining receipts in my name and be paying us the balance of Rs. 28. 8. 0 by the 15th of Karteekam every year and obtain receipts from us. After thus enjoying for a period of 15 years starting from the year Prabha to 30th of Phalguna of the year Vrusha, if the principal amount of Rs. 1000. 00 is paid to you by 30th of Phalguna of any year, you must give back this deed, quit-rent etc. receipts and lands to us. "petitioners 1 to 6 in the writ petition are the persons who are either lessees or mortgagees or their successors-in-interest. Similarly, the owner of the land in the same village executed l





















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