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1963 Supreme(Pat) 46

PATNA HIGH COURT
V.Ramaswami, K.Sahai and Kanhaiya Singh JJ.
Jagdish Chandra Ghose
Versus
Basant Kumar Bose
Civil Revision No. 118 of 1960 ;
Decided On : APRIL 06, 1963

The value of a suit for ejectment of a licensee who continues to live in the licensed premises in spite of termination of his license is the market value of the property in question.

Headnote:

COURT FEES - SUIT FOR EJECTMENT OF LICENSEE - VALUATION - MARKET VALUE OF PROPERTY - COURT FEES ACT, 1870, SECTION 7(V)(E).

Fact of the Case:

Plaintiff purchased a house from the original owners, who had allowed the defendants to live in a portion of the house as licensees. Plaintiff asked the defendants to vacate the premises, but they refused. Plaintiff filed a suit for ejectment of the defendants, valuing the suit at Rs. 84/-.

Finding of the Court:

The court held that the value of the suit for the purpose of court fees and jurisdiction was the market value of the property in question, which was more than Rs. 2,000/-. The court further held that the plaintiff's valuation of the suit at Rs. 84/- was inadequate and that the court-fee paid thereon was insufficient.

Issues: 1. What is the basis of valuation of a suit for ejectment of a licensee who continues to live in the licensed premises in spite of termination of his license? 2. Whether the valuation for purposes of jurisdiction and that for purposes of Court-fee may be different in this case?

Ratio Decidendi: 1. The value of a suit for ejectment of a licensee who continues to live in the licensed premises in spite of termination of his license is the market value of the property in question. 2. In a case falling under paragraph (v) of Section 7 of the Court-fees Act, the valuation for court-fee and for jurisdiction must be the same.

Final Decision: The court allowed the application for revision and set aside the order of the learned Munsif. The court directed the Munsif to return the plaint for being presented in the proper Court.

Judgment

Sahai, J.

1. The principal question which arises for consideration in this case is what would be the basis of valuation of a suit for ejectment of a licensee when he continues to live in the licensed premises in spite of termination of his licence.

2. The necessary facts of the case may be shortly stated. The plaintiff has instituted the suit, out of which this application for revision arises, on the allegations, inter alia, that he purchased the house described at the foot of the plaint from the original owners, who had allowed the defendants to live in a portion of the house as licensees that the plaintiff asked the defendants on the 21st March, 1952, to vacate the premises and the defendants promised to vacate them in six months, that the defendants, though licensees, did not leave the house on the 21st September, 1952, and continued to stay there, and that they have made themselves liable to be evicted and further to pay mesne profits at the rate of Rs. 15/-per month. The relevant relief claimed by him is:

"(a) That the defendant and his family and dependents be evicted from the house described below and the plaintiff be put in possession over the same."

3. The learned Munsif, before whom the suit is pending, has pecuniary jurisdiction up to the value of Rs. 2,000.00 only. The defendants objected before him that the suit was beyond his pecuniary jurisdiction as the value of the property in question was more than Rs. 30,000/-. After hearing both parties, the learned Munsif came to the conclusion that the market value of the property in suit was more than Rs. 2,000/-, and that the estimate of the building portion only was at about Rs. 11,000/-. He has, however, held that the value of the subject-matter of a suit in a case of this kind is "the right to eject the defendant and the value of that right is the value at which the defendants right to remain in the house under the licence of the plaintiff may be valued".

In support of this conclusion, he has relied upon Mt. Barkatunnisa Begum V/s. Mt. Kaniza Fatma, AIR 1927 Patna 140 and Satyendra Kumar V/s. District Board of 24 Parganas, AIR 1959 Cal 536. On this basis, he has held that the valuation given by the plaintiff, which was a sum of Rs. 84/-, was adequate, and hence the suit was within his pecuniary jurisdiction. He has also held that the Court-fee paid is sufficient. Defendant No. 1 has filed the present application for revision, and the case has been referred to this Bench because it was felt that the correctness of the decision in Mt. Barkatunnisa Begums case, AIR 1927 Pat 140 was open to doubt.

4. In my judgment, the question raised for our decision does not present much difficulty. The case of recovery of a property from a tenant, even a tenant who is holding over, is dealt with specifically under Section 7(xi)(cc) of the Court-fees Act. No provision has been made specifically with regard to recovery of property from a person whose licence in respect of that property has ended.

5. The difference between a tenant and a licensee is substantial. Lease has been defined in Sec.105 or the Transfer of Property Act, and licence has been defined in Sec. 52 of the Indian Easements Act (V of 1882). Whereas a tenant or lessee has a definite interest in the property which is put in his possession, a licensee has no such interest. There must be consideration for creation of a lease; but there may or may not be any consideration for grant of a licence. While a tenant may hold over, in certain circumstances, after determination of his tenancy, a licensee cannot continue to be in possession or any property for more than a reasonable time after his licence is terminated.

There is, therefore, no escape from the conclusion that, if a licensee continues to be in possession of certain premises after "expiry of a reasonable time from the date" his licence is revoked, he does so only as a trespasser. If, therefore, a suit is instituted for his eviction, it is clearly a suit for reco





























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