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1952 Supreme(Bom) 4

HIGH COURT OF BOMBAY
CHAGLA, BHAGWATI, JJ.
Raghubir Narayan Lotlikar
Versus
G. A. Fernandes
O.C.J. Appeal No.5 of 1952, D/- 28 -2 -1952, from judgment of Shah J
Decided On : 14-01-1952

Advocates:
H.D. Banaji with S.A. Desai, for Appellants; K.H. Bhabha with Sir Jamshedji Kanga, (for Nos.1, 2, 4 and 5) and R.H. Pandia with P.M. Purandare (for No.3), for Respondents.

A suit for specific performance of an agreement for remodelling and repairing of a property, where the landlord has not become entitled to possession of the premises, is not barred by Section 28 of the Rent Restriction Act and is maintainable in the High Court.

Headnote:

RENT RESTRICTION ACT - JURISDICTION - SPECIFIC PERFORMANCE - POSSESSION - SECTION 28 - TRANSFER OF PROPERTY ACT - SECTION 111 - SECTION 108(Q) - RENT RESTRICTION ACT - SECTION 12 - SECTION 13 - LANDLORD AND TENANT - AGREEMENT FOR REMODELLING AND REPAIRING - SUIT FOR SPECIFIC PERFORMANCE - WHETHER MAINTAINABLE IN HIGH COURT - WHETHER BARRED BY SECTION 28 OF THE RENT RESTRICTION ACT.

Fact of the Case:

Plaintiffs purchased a property in June 1947. Defendants were tenants in different portions of the property. Plaintiffs gave notice to quit to some of the defendants in July 1947 and instituted ejectment proceedings in the Small Causes Court. An agreement was reached between the parties in October 1947, whereby the tenants agreed to give facilities for remodelling and repairing the floors of the property, and the landlords agreed not to seek ejectment on the ground of remodelling and repairing. After the remodelling was completed, the landlords called upon the tenants to carry out the agreement and hand over possession of the premises in their possession and take in place of those premises others in substitution agreed upon, but the tenants refused. The plaintiffs filed a suit for specific performance of the agreement, mandatory injunction upon the defendants to vacate the premises in their respective occupation and to occupy the portions allotted to them under the terms of the agreement, and damages in the sum of Rs.1,25,000.

Finding of the Court:

The High Court held that the suit was not barred by Section 28 of the Rent Restriction Act and that the High Court had jurisdiction to try the suit for specific performance. The Court held that Section 28 of the Rent Restriction Act only applies to suits between a landlord and a tenant where the landlord has become entitled to possession or recovery of the premises demised, and that in the present case, the plaintiffs had not become entitled to possession as the tenancy had not been determined. The Court further held that Sections 12 and 13 of the Rent Restriction Act, which provide for the protection of tenants from eviction, did not apply to the present suit as the plaintiffs were not entitled to possession at the time the suit was filed.

Issues: 1. Whether the suit for specific performance was barred by Section 28 of the Rent Restriction Act? 2. Whether the High Court had jurisdiction to try the suit for specific performance? 3. Whether Sections 12 and 13 of the Rent Restriction Act applied to the present suit?

Ratio Decidendi: 1. Section 28 of the Rent Restriction Act only applies to suits between a landlord and a tenant where the landlord has become entitled to possession or recovery of the premises demised. 2. In the present case, the plaintiffs had not become entitled to possession as the tenancy had not been determined. 3. Sections 12 and 13 of the Rent Restriction Act, which provide for the protection of tenants from eviction, did not apply to the present suit as the plaintiffs were not entitled to possession at the time the suit was filed.

Final Decision: The High Court set aside the order of the lower court and remanded the suit for disposal according to law.

Judgement

CHAGLA, C.J. :- This is an appeal from a judgment of Mr. Justice Shah by which he held that this Court had no jurisdiction to try a suit for specific performance.

2. The suit came to be filed under the following circumstances. In June 1947 the plaintiffs purchased a certain property. The defendants were residing in different portions of the property as tenants, and on July 15, 1947, the plaintiffs gave a notice to quit to some of the defendants. They followed up the notice to quit by instituting ejectment proceedings in the Small Causes Court. Then an agreement was arrived at between the landlords and the tenants on October 23, 1947, and the agreement in substance was this that the tenants should give all reasonable facilities to the landlords for the purpose of remodelling and repairing the floors of the said property according to the plan sanctioned by the Municipality. It was also agreed that the landlords would not seek to eject any of the tenants on the ground that the premises were required for the purpose of remodelling and repairing. It was further agreed that after the floors had been remodelled, accommodation would be granted to the landlords and the tenants as fixed by the agreement, and the effect of the carrying out of the agreement would be that the tenants would have to give up the premises which they occupied and would be given other premises in substitution of those premises. Pursuant to this agreement, the landlords carried out the remodelling and repairing work and spent a fairly large amount. When the plaintiffs called upon the defendants to carry out the agreement and to hand over possession of the premises in their possession and to take in place of those premises others in substitution agreed upon, the defendants refused to carry out the agreement. Thereupon the plaintiffs filed the present suit, and the reliefs they claimed were that the defendants may be ordered and decreed specifically to perform the agreement dated October 23, 1947. They also asked for a mandatory injunction upon the defendants to vacate the premises in their respective occupation and to occupy the portions allotted to them under the terms of the agreement, and they further claimed in addition to or in substitution of the reliefs for the specific performance and injunction a decree by way of damages in the sum of Rs.1,25,000.

3. Now, the question that arises for determination is whether the suit, as far as prayers (a) and (b) are concerned, is maintainable in this Court. We agree with the view taken by the learned Judge that as far as the prayer for mandatory injunction is concerned, it is not well conceived. It is difficult to understand how there could be a mandatory injunction upon the defendants to accept the premises which they had agreed to take in substitution of their own premises. What the draftsman meant, as the learned Judge pointed out, is to aver that the plaintiffs were ready and willing to carry out their part of the agreement. Their part of the agreement was to give to the defendants premises in substitution of the premises occupied by them, and the plaintiffs could only maintain a suit for specific performance provided they showed their readiness and willingness to carry out their part of the agreement. Therefore, the draftsman instead of averring readiness and willingness has substituted in the plaint a mandatory injunction in the form to which reference has been made.

4. Now, the view taken by the learned Judge is that in substance it is not a suit for specific performance at All He takes the view that this is a suit for possession, and it is only by means of ingenious drafting that the real nature of the suit has been concealed and it has been given the appearance of a suit for specific performance. Therefore, the learned Judge has taken the view that the suit to the extent that it is a suit for possession is barred by S.28 of the Rent Restriction Act.

5. Now, turning to S.28, we have had an occasion to point


























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