IN THE HIGH COURT OF BOMBAY
(C.S. Dharmadhikari J.)
DEVICHAND BALKRISHNA SONVANE and others - Appellants
Versus
KISAN SHRIPATI DHUMAL and others - Respondents
Second Appeal No. 147 of 1975
Decided on 1-4-1981
Advocates appeared
For appellants – N.B. Aklujkar
For respondents 1 to 3 - P.L. Naik for M.A. Rane
LEASE - MANUFACTURING PURPOSES - SECTION 106, TRANSFER OF PROPERTY ACT - LEASE OF OPEN PLOT FOR MANUFACTURING BRICKS IS A LEASE FOR MANUFACTURING PURPOSES - NOTICE TO TERMINATE LEASE MUST BE FOR SIX MONTHS.
Fact of the Case:
Plaintiffs filed a suit for possession of the suit premises, arrears of rent, and costs of the suit. They claimed that the suit property was purchased by a minor through his guardian mother in 1921 and that they had a joint interest in the property. The property was leased out to the defendants for 11 months for manufacturing bricks. The plaintiffs served a notice to terminate the tenancy after 11 months, but the defendants refused to vacate the premises, claiming that the lease was for manufacturing purposes and could only be terminated by a six-month notice.
Finding of the Court:
The trial court and the appellate court held that the lease was for manufacturing purposes and that the notice to terminate the lease was illegal since it was not for six months. The court relied on the definition of "manufacturing purposes" in section 106 of the Transfer of Property Act and the Supreme Court's decision in Allenbury Engineers Pvt. Ltd. v. Shri Ram Krishna Dalmia and others.
Issues: Whether the lease of an open plot of land for manufacturing bricks is a lease for manufacturing purposes within the meaning of section 106 of the Transfer of Property Act.
Ratio Decidendi: The court held that the lease of an open plot of land for manufacturing bricks is a lease for manufacturing purposes within the meaning of section 106 of the Transfer of Property Act. The court reasoned that the process of making bricks involves a transformation of clay into bricks, which is a commercially different article or commodity. Therefore, the lease was for manufacturing purposes and the notice to terminate the lease must be for six months.
Final Decision: The court dismissed the plaintiffs' appeal, holding that the notice to terminate the lease was illegal and that the defendants were entitled to remain in possession of the premises.
2. The plaintiffs filed a suit for possession of the suit premises together with the arrears of rent and costs of the suit. According to the plaintiffs the suit property was purchased by Deu Krishna Sonavane, who was then a minor by his guardian mother Rahi vide the registered sale deed dated 11th June 1921 and all the plaintiffs bad joint interest in the suit property. The plaintiffs then stated that the suit plot is being used for manufacturing even bricks since the last several years and was leased out to different tenants on a monthly basis. The plaintiffs also stated that the bricks are manufactured into ovens installed over the suit property since the beginning. It is their case that the defendants were given the suit plot on lease only for 11 months. According to the plaintiffs they terminated the tenancy of the defendants by notice dated 9th February 1970 served on defendant No. 1 as the manager of the joint family of the defendants. According to them as the lease of the defendants was lawfully terminated, they were entitled to recover arrears of rent as well as for possession of the property.
3. The defendants contested the suit and raised various contentions. The main contention raised by tile defendants was that the notice given was illegal. According to them as the lease was for manufacturing purposes it is to be deemed to be a lease from year to year terminable by six months' notice, which was admittedly not given in the present case. After appreciating all the evidence on record, the learned Judge of the trial Court came to the conclusion that since the lease was for manufacturing purposes, it is deemed to be a yearly lease and hence the notice given by the plaintiffs was illegal. In this view of the matter, the plaintiffs' suit for possession was dismissed, though their suit for arrears of rent was decreed.
4. Being aggrieved by this judgment and decree the plaintiffs filed an appeal before the District Court, and the learned District Judge, Satara by his judgment dated 22nd July 1974 also came to the conclusion that the property was leased out for manufacturing bricks, which amounted to a lease for manufacturing purposes and hence the notice given was bad in law. In this view of the matter, he dismissed the appeal filed by the plaintiffs and as already observed it is this finding recorded by the trial Court and confirmed by the appeal Court Which is challenged in this second appeal.
5. Shri Aklujkar, learned counsel appearing for the plaintiffs has contended before me that the lease of an open plot of land for manufacturing bricks is not a lease for manufacturing purposes within the meaning of section 106 of the Transfer of Property Act. According to him in making bricks out of clay no manufacturing process is involved and therefore, the learned Judges of both the Courts below have committed an error in coming to the conclusion that the lease granted by the plaintiffs was not for manufacturing purposes within the meaning of section 106 of the Transfer of Property Act. It is not possible for me to accept this contention. It is no doubt true that the expression" manufacturing purposes" is not defined in the Transfer of Property Act. However, connotation of the said Word is by now well settled and obviously the said expression will have to be understood in its popular sense. It is not necessary to deal with this question in detail in view of the authoritative pronouncement of the Supreme Court in Allenbury Engineers Pvt. Ltd. v. Shri Ram Krishna Dalmia and others1. The expression "manufacturing purposes" as used in section 106 of the Transfer of Property Act fell for consideratio
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