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1997 Supreme(Pat) 206

PATNA HIGH COURT
P.K.Deb, J.
Manoj Kumar Saraika
Versus
Ramesh Sahu
Civil Revision No. 415 of 1996 ;
Decided On : MARCH 12, 1997

A deed labeled as a usufructuary mortgage may be construed as an anomalous mortgage if its contents do not fall within the definition of usufructuary mortgage.

Headnote:

BIHAR BUILDINGS (LEASE, RENT AND EVICTION) CONTROL ACT, 1982 - SECTION 3 - LEASE DEED - INTERPRETATION - MORTGAGE DEED - DISTINCTION - APPLICABILITY OF THE ACT - TENANCY - PREMIUM, SALAMI, FINE OR ADVANCE OF RENT - RESTRICTION.

Fact of the Case:

A suit for eviction was filed under Section 14 of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1982, based on a deed of settlement between the parties. The plaintiffs claimed that the deed, though labeled as a usufructuary mortgage, was a lease deed, and the defendant was inducted as a tenant on a monthly rental of Rs. 1000.00 per quarter. The defendant contested the suit, arguing that the deed was a mortgage deed and not a lease deed.

Finding of the Court:

The court held that the deed was not a lease deed but an anomalous mortgage. It observed that the advance of Rs. 20,000.00 was taken as security for the loan and was to be adjusted towards the rental over five years. The court also noted that the enjoyment of the property was restricted by certain terms and conditions, which indicated that the deed was not a lease deed.

Issues: 1. Whether the deed was a lease deed or a mortgage deed. 2. Whether the Act was applicable to the suit premises.

Ratio Decidendi: The court held that the deed was an anomalous mortgage and not a lease deed. It relied on the following factors: (i) the advance of Rs. 20,000.00 was taken as security for the loan and was to be adjusted towards the rental over five years; (ii) the enjoyment of the property was restricted by certain terms and conditions; (iii) the defendant was already a tenant on month-to-month basis under the plaintiffs.

Final Decision: The court allowed the revision petition, set aside the judgment and decree of eviction, and remanded the matter to the trial court for reconsideration in light of the observations made by the court.

Judgment

P.K.Deb, J.

1. This Civil Revision application has been directed against the judgment and decree dated 4.6.1996 passed by Shri S.K. Srivastava, Munsif, Ranchi, in Eviction (Title) Suit No. 14 of 1995 under Sec. 14 of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1982 (hereinafter to be referred to as the Act).

2. The suit premises consists of a shop situated in the building comprised in M.S. Holding Nos. 1027 and 1097 within Ward No. II (old), present Ward No. VIII of Ranchi Municipal Corporation at Buchar Gali, Ranchi. The suit is based on a deed of settlement of the suit premises between the parties. According to the plaintiffs, although the deed dated 14.2.1990 has the nomenclature of usufructuary mortgage. It is a lease deed for all practical purposes and on the basis of the same, the defendant has been inducted as a tenant in the shop house on a monthly rental of Rs. 1000.00 per quarter. By the deed, advance of Rs. 20,000.00 has been taken from the defendant by the landlord-plaintiffs and the said amount is to be adjusted towards the rental as mentioned above within five years. According to the plaintiffs, after the five years was completed, the defendant-petitioner did not vacate the suit premises and hence eviction has been sought for on the ground of expiry of the term of tenancy as contemplated under the Act. The suit was proceeded under the summary procedure under Section 14 of the Act.

3. The main contest in the suit is with respect to the interpretation of the deed as to whether it is a mortgage deed. The learned court below decreed the suit after consideration of legality and other oral evidence to the effect that the deed although it was mentioned as a mortgage deed but it was practically a lease deed and hence after the period of lease, the defendant is liable for eviction.

4. To appreciate the submissions made on behalf of the parties, the original case record was brought.

5. Mr. Ughal, learned Counsel appearing on behalf of the defendant-petitioner submitted that for all purposes, the deed was not by nomenclature alone a deed of mortgage and it was never a lease deed. According to Mr. N.K. Prasad, learned Counsel appearing on behalf of the plaintiffs-opposite parties, from the terms and conditions of the deed and its averments and contents, it is clear that the suit premises was given to the defendant-petitioner by the plaintiffs for enjoyment as a tenant and usual terms and conditions of tenancy were being incorporated in the document itself and as such by nomenclature of usufructuary mortgage, the deed cannot be construed as mortgage but should be legally construed as a lease deed he has referred to the written statement of the defendant at paragraph 11 and other paragraphs wherefrom it could be found that the defendant was already a tenant in the suit premises and then the deed was executed. So according to the plaintiffs, it was an admitted fact that the defendant was a tenant under the plaintiffs on month to month basis.

6. It might be that the defendant was a tenant on month to month basis under the plaintiffs and a tenant is not debarred in taking mortgage of the tenanted premises from the landlord and then generally tenancy is merged with the right of mortgagee if no distinction is vested by averments of the deed or by intention os that averment alone that the defendant was a tenant previous to the execution of the deed may not infer that the mortgage deed was only a deed of lease for the purpose of continuance of the tenancy rather it goes against the plaintiffs with regard to month to month tenancy even if the deed is construed as a lease deed. The same tenancy has been transformed to a tenancy with condition of payment of quarterly rent year wise. If month to month tenancy is transformed to a quarterly tenancy as per the deed then there remains big interrogation sign as to whether the Act would be applicable for the purpose of eviction or not. Moreover, although it is a fact th


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