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1964 Supreme(Cal) 249

HIGH COURT OF CALCUTTA
A. C. Sen, Tarapada Mukherji
BHUSAN CHANDRA PAUL - Appellant
Versus
BENGAL COAL CO. LTD. - Respondent
A. F. O. D.  217  Of  1957
Decided On : DECEMBER 07, 1964

Advocates Appeared:
Chittatosh Mookerjee, Joy Gopal Ghosh, UMA PRASAD MUKHERJEE

A lessor is entitled to forfeit a lease for breach of an express condition in the lease providing for re-entry on breach thereof. The lessee is entitled to relief against forfeiture under Section 114 T. P. Act only if he pays or tenders to the lessor the rent in arrear together with the interest thereon and the full cost of the suit or gives sufficient security with the undertaking to make the necessary payment within 15 days.

Headnote:

FORFEITURE OF LEASE - BREACH OF COVENANT - RELIEF AGAINST FORFEITURE - SERVICE OF NOTICE - VESTING OF MINING INTERESTS IN STATE GOVERNMENT - W. B. ESTATES ACQUISITION ACT, 1953 - SECTION 28.

Fact of the Case:

A lessor filed a suit for ejectment on the ground of forfeiture against lessees for breach of an express condition in the lease providing for re-entry on breach thereof. The lessees denied the arrears and receipt of notice determining the tenancy.

Finding of the Court:

The court found that the lessees had made default in payment of rents, royalties, etc. in terms of their lease and that because of a breach of an express condition in the covenant which provided for a right of re-entry on breach thereof, the plaintiff Company was entitled to forfeit the lease and to re-enter the leasehold premises. The court also found that the notice under Section 111 (g) T. P. Act was duly served on the defendants.

Issues: 1. Whether there was a forfeiture of the lease as claimed? 2. Whether the defendants were entitled to relief against the forfeiture for non-payment of the rent in arrears in terms of Section 114 T. P. Act? 3. Whether the service of notice under Section 111 (g) on the defendants was valid? 4. Whether the provisions of the W. B. Estates Acquisition Act, 1953 would stand in the way of the plaintiff getting a decree in the suit?

Ratio Decidendi: 1. The court held that the breach of the covenant in the lease regarding payment of rent and royalty, etc. entailed forfeiture of the lease in terms of Section 111 (g) T. P. Act. 2. The court held that the offer made by the defendants to pay the rents in arrears with interest and cost of the suit within 15 days was not in compliance with the requirements of Section 114 T. P. Act and therefore, relief against forfeiture could not be claimed. 3. The court held that the notices under Section 111 (g) T. P. Act were duly served on the defendants as the notices were sent by registered post to the address mentioned in the indenture of lease and the acknowledgments of the notices came back with the signature of somebody. 4. The court held that the provisions of the W. B. Estates Acquisition Act, 1953 would not stand in the way of the plaintiff getting a decree in the suit as the plaintiff would be entitled to receive compensation in respect of the vested interest.

Final Decision: The appeal was dismissed with costs. The judgment and decree appealed against were affirmed.

T. P. MUKHERJI, J.

( 1 ) THE defendants in a suit for ejectment on the ground of forfeiture have come up on appeal against the judgment and decree passed by a Subordinate Judge at Asansol. The suit was by a lessor against the lessees for khas possession on ejectment of the latter from the leasehold property on the ground of forfeiture by the breach of an express condition in the lease providing that on breach thereof the lessor would be entitled to re-enter.

( 2 ) MESSRS. Bengal Coal Company who we the respondents in this appeal gave a sub-lease in respect of a coal mining area in the year 1948 to appellants 1 to 4 who carried on business in the name of a partnership firm named "gazadhar Coal Company", which is appellant No. 5 in this appeal. The indenture of lease provided that,"if any rent, royalty, or any other sum of money reserved and made payable or any part thereof shall be in arrear or unpaid for the space of six calendar months next after the day whereon the same ought to be paid. . . . . . it shall be lawful for the lessors at any time thereafter to re-enter into and upon the said premises or any part thereof. . . . . . . . . . . . . "it was alleged that the defendants-appellants defaulted in the payment of rents and royalties, etc. , as stipulated in the indenture and thereby their lease became liable to forfeiture. The said lease was determined by service of notice in November 1952 and thereafter the present suit was instituted. The plaint also included a prayer for recovery of rents and royalties, etc. with interest thereon.

( 3 ) THE defendants filed a joint written statement denying that any amount was due from them on account of arrears of rent or royalty, the same having been paid to the plaintiff in due course. The defendants also denied receipt of any notice determining the tenancy as alleged.

( 4 ) THE learned Subordinate Judge found that there was nothing to prove that the defendant paid any amount beyond what was admitted by the plaintiff Company and was credited to the account of the defendants in schedule B of the plaint. He found that the defendants had made default in payment of rents, royalties, etc. in terms of their lease and that because of a breach of an express condition in the covenant which provided for a right of re-entry on breach thereof, the plaintiff Company was entitled to forfeit the lease and to re-enter the leasehold premises. On the question of service of notice under Section 111 (g) T. P. Act he found that the same was duly served on the defendants.

( 5 ) DURING the trial the defendants raised a plea that the plaintiff was not entitled to khas possession in view of the vesting of intermediary interests in mining rights in the State Government under the provisions of the West Bengal Estates Acquisition Act of 1953. The learned Subordinate Judge considered this contention and found that considering the position of the parties at or about the time when the cause of action for the suit arose and without allowing extraneous matters to crop up it would appear that the defendants were already trespassers on the leasehold property before the Act of 1953 came into operation and that such unlawful possession of trespassers which kept the plaintiff out of khas possession of the property would not disentitle them to the relief claimed in the suit. In other words he found that in the circumstances of the case there was no vesting of the plaintiffs interest in the disputed coal mining property in the State Government in terms of the W. B. Estates Acquisition Act.

( 6 ) AFTER the conclusion of arguments in the suit the defendants filed a petition offering to pay to the plaintiff Company the rents in arrears with interest and cost of the suit within 15 days and praying for relief against the forfeiture. The learned Subordinate Judge considered the prayer in his judgment, but refused to give the relief prayed for.

( 7 ) AS a result of its findings the trial court granted a decree for khas pos









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