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2005 Supreme(Bom) 756

IN THE HIGH COURT OF BOMBAY
Gangadhar Naganna Rajulwar
Versus
Chandrabhaga Rajeshwar Gangshettiwar
Decided on 20.6.2005

The central legal point established in the judgment is the interpretation of lease tenancy for manufacturing purposes under the Transfer of Property Act, emphasizing the distinction between manufacturing activity and other commercial operations.

Headnote:

Manufacturing Purpose - Lease Tenancy - Section 106, Section 107 of the Transfer of Property Act - The court discussed the interpretation of sections 106 and 107 of the Transfer of Property Act in relation to the lease tenancy for manufacturing purposes. It highlighted the legal provisions regarding the termination of leases for agricultural or manufacturing purposes and the requirement of a registered instrument for leases exceeding one year. The court emphasized that the defendant's tailoring business did not constitute manufacturing activity, leading to the dismissal of the appeal.

Fact of the Case:

The defendant, a tenant running a tailoring shop, contested the termination of his lease, claiming it to be a yearly tenancy. The plaintiff sought possession of the premises and arrears of rent.

Finding of the Court:

The court found that the lease was a monthly tenancy, not a yearly tenancy as claimed by the defendant. It held that the defendant's tailoring business did not qualify as manufacturing activity under the law.

Issues: The key issue revolved around the nature of the lease tenancy, specifically whether the defendant's tailoring business constituted manufacturing activity, impacting the notice period for termination.

Ratio Decidendi: The court's decision was based on the interpretation of sections 106 and 107 of the Transfer of Property Act, emphasizing that the defendant's tailoring business did not meet the criteria for manufacturing activity, thus upholding the monthly tenancy and the validity of the notice served.

Final Decision: The court dismissed the appeal, affirming the monthly tenancy and ordering the defendant to vacate the premises within three months.

Judgment - KHARCHE S. T. , J.

( 1 ) INVOKING the jurisdiction of this Court under section-100 of the Code of Civil Procedure, the original defendant has filed this second appeal taking an exception to the judgment dated 20-5-1989 and decree passed by the learned Additional District Judge in Regular Civil Appeal No. 17 of 1986 whereby the appeal has been dismissed and the judgment dated 13-1 -1986 and decree passed by the learned Civil Judge, Jr. Dn. , in Regular Civil suit No. 130 of 1982 was confirmed by which the defendant was directed to hand over the possession of the suit premises to the plaintiff with direction to pay arrears of rent of Rs. 234. 50 and Rs. 25/- as damages with further enquiry under Order 20, Rule 12 of the Code of Civil Procedure.

( 2 ) THE respondent/original plaintiff purchased the house bearing Nos. 352 and 353 along with plot having area 20 x 18 feet at Patanbori from one laxmanrao Narlawar for a consideration of Rs. 23,000/- by registered sale- deed dated 13-4-1982 and the defendant has been in possession of one tin shed of area of 10 x 10 feet situated on the North East corner of the said plot. The case of the defendant is that he was occupying the suit premises as the monthly tenant of the original owner Laxmanrao and the agreed rent was Rs. 33. 50 per month. The defendant was running his tailoring shop in the suit premises. The tenancy was monthly and the month of tenancy used to commence on the first day, i. e. on Pratipada and used to end on Amavoshya of each month as per Hindu calendar. There was an agreement to pay one month's rent in advance in each month. After the purchase of the house, the defendant was informed regarding the purchase of the house and the defendant also attorned the tenancy with a contention that the tenancy was yearly tenancy. The tenancy was determined by the notice dated 26-10-1982 which was served on the defendant on 29-10-1982 by giving clear 15 days' notice. The defendant was called upon to vacate the suit premises as he did not pay the rent though demanded. He did not vacate the suit premises and therefore the plaintiff filed suit for possession.

( 3 ) THE defendant contended that he had taken the premises on lease and it was yearly lease. He was carrying on the business of tailoring in that premises and, thereof, his tenancy has not been legally terminated by the notice.

( 4 ) THE learned Counsel for the defendant contended that the tenancy was yearly tenancy and the premises was let out for manufacturing purposes and therefore six months' notice was necessary as is required under section 106 of the Transfer of Property Act, 1882 (for short the Act ). He contended that the defendant was engaged in manufacturing process as he used to stitch clothes and supply the finished products to the owners of the cloth. He contended that the process of tailoring is not a manufacturing process and, therefore, the notice dated 26-10-1982 served on the defendant is not a legal and valid notice. He contended that the substantial question of law involved in this appeal is whether the process of tailoring is a manufacturing process? And if so, whether notice of six months under section 106 of the Transfer of Property Act is necessary? In support of these submissions he relied on the decision of the Apex Court in the case of (M/s. Ujagar Prints and others v. Union of India and others),1989 (3) S. C. C. 488.

( 5 ) THE learned Counsel for the plaintiff contended that both the courts below have recorded concurrent findings of facts that the tenancy of the defendant was a monthly tenancy and not a yearly tenancy. He contended that in absence of a contract or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable, on the part of either lessor or lessee, by six months' notice; and a lease of immovable property for any other purposes shall be deemed to be a lease from month to m










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