Back
HIGH COURT OF CALCUTTA
S. K. Sen, Amaresh Roy
STEUART AND CO. LTD - Appellant
Versus
C. MACKERTICH - Respondent
. Of .
Decided On : March 27, 1962
LANDLORD AND TENANT - Tenancy - Transfer of tenancy - Leasehold property - Transfer of leasehold property to incorporated company - No registered deed of transfer - Implied surrender of lease - New tenancy - Notice to determine tenancy - Manufacturing purpose - Notice required.
Fact of the Case:
The plaintiff, the owner of two premises, filed two suits against the defendant company, Steuart and Company Limited, seeking decrees for ejectment and arrears of rent. The defendant company claimed that the tenancies were governed by the terms of the registered lease deeds of 22nd December, 1913 and 31st January, 1919, and that therefore the tenancies were not governed by the West Bengal Premises Rent Control Act 1950 and could not be determined by service of 15 days' notice.
Finding of the Court:
The court held that the defendant company could not avail of the provisions of the registered lease deeds Exts. L and L (1), but they are tenants of the premises in suit and their tenancy is from month to month or year to year according as the purpose of the tenancy is not or is for a manufacturing purpose.
Issues: 1. Whether the defendant company can avail of the provisions of the registered lease deeds Exts. L and L (1)? 2. Whether the tenancies were governed by the terms of the registered lease deeds of 22nd December, 1913 and 31st January, 1919? 3. Whether the tenancies were governed by the West Bengal Premises Rent Control Act 1950? 4. Whether the tenancies could be determined by service of 15 days' notice? 5. Whether the purpose of the tenancy was a manufacturing purpose? 6. Whether 6 months' notice was necessary?
Ratio Decidendi: 1. The defendant company cannot avail of the provisions of the registered lease deeds Exts. L and L (1) because there was no registered deed of transfer executed in respect of the two leasehold properties, and therefore it cannot be said that the leasehold properties created by the two registered deeds Exts. L and L (1) stood transferred to the defendant company. 2. The tenancies were not governed by the terms of the registered lease deeds of 22nd December, 1913 and 31st January, 1919, because the defendant company is a separate legal entity from the partnership firm the members of which had been granted the two leases. 3. The tenancies were governed by the West Bengal Premises Rent Control Act 1950 because the defendant company is a separate legal entity from the partnership firm the members of which had been granted the two leases. 4. The tenancies could be determined by service of 15 days' notice because the tenancies were from month to month or year to year according as the purpose of the tenancy is not or is for a manufacturing purpose. 5. The purpose of the tenancy was a manufacturing purpose because the defendant company was using the premises for the purpose of building and repairing coaches and cars. 6. 6 months' notice was necessary because the purpose of the tenancy was a manufacturing purpose.
Final Decision: The appeals were partly allowed and the decrees passed by the learned Subordinate Judge were modified; the suits were decreed in part with proportionate costs for the arrears of rent claimed, but dismissed so far as the claim for ejectment and damages or mesne profits was concerned.
( 1 ) THESE two appeals are by the defendants Steuart and Company Limited against two decrees for ejectment passed by Sri J. N. Mallick, Subordinate Judge, Second Court, Alipore. The tenancy which is the subject matter of first Appeal No. 55 of 1956 (Title Suit No. 31 of 1953) is 38/1, Panditiya Road, Ballygunge corresponding to part of old premises Nos. 37 and 38 Panditiya Road, the rate of rent in respect of this tenancy is Rs. 500/- per month. The subject matter of first appeal No. 288 of 1955 (Title Suit No. 30 of 1953) is 37 and 38 Panditiya Road, Ballygunge corresponding to old premises No. 37/1 and portion of 38 Panditiya Road; the rent of this tenancy is Rs. 200/- per month.
( 2 ) THE history of the tenancies is briefly as follows: on 22nd December, 1913, M. Mackertich and Frank Ernest Busbhy let out the subject matter of the Title Suit No. 31 of 1953, i. e. , portion of premises Nos. 37 and 38 Panditiya Road (new No. 38/1) covering an area of approximately 7 bighas 9 cottahs 5 chattacks and 2 Sq. ft. to 4 persons viz. , Walter Bushby, Frank Earnest Bushby, Geoffrey Berridge Page and William Shenton for the purpose of their business, their business being described as partnership business as coach builders. The term of the lease was 50 years and it was to commence from the 1st January, 1915, the lease was not to commence with the date of the executed of the lease because in the meantime the lessors undertook to build a boundary wall for fencing and fill up one of the existing tanks within the premises to the level of the surrounding land. As regards the rent it was agreed that it would be Rs. 400/- per month during the first 5 years, Rs. 425/- per month during the 2nd 5 years, Rs. 450/- per month during the 3rd 5 years, Rs. 475/- per month during the 4th 5 years and Rs. 500/- per month thereafter i. e. from 20 years after the commence of the lease. Ext. L is a certified copy of the lease deed which was duly registered.
( 3 ) ON 31st January, 1919, the lessors M. Mackentich and Frank Earnest Bushby let out the adjoining premises at old 37/1 and 38 Panditiya Road (new Nos. 37 and 38) measuring approximately 3 bighas 7 chattocks 5 Sq. Ft. to 3 persons, viz. , Frank Earnest Bushby, Geoffrey Berridge Page and William Shenton, because in the meantime Walter Bushby who was one of the lesser under the earlier deed of lease had gone out of the partnership business of coach builders. This lease was to commence from the 1st of October, 1918, i. e. the lease had already commenced before the execution of the lease deed; and the term of the lease was fixed at 46 years 3 months from the 1st October 1918 i. e. the lease was to expire at the same time as the earlier lease which was for a term of 50 years. The rent agreed was Rs. 125/- per month for the first 6 years 3 months, Rs. 150/- per month for the next 5 years, Rs. 175/- per month for the next 5 years and Rs. 200/- per month thereafter i. e. from 16 years 3 months after the commencement of the lease. Ext. L (1) is a certified copy of the lease deed which was also duly registered.
( 4 ) THE partners were carrying on business as coach builders under the name and style Steuart and Company. In December, 1919, the partners decided to form a limited Company and register the Company under the Companies Act, 1913. For such registration a minimum membership of 7 being necessary, 4 more members were brought into the Company and the Company was registered in the office of the Registrar of Companies, on 4th December, 1919, under the name and style Steuart and Company Limited. Ext. W is a copy of the Memorandum and Articles of Association of Steuart and Company Limited. On 17th December, 1919 an agreement was made and signed between the partners of the partnership first (Frank Earnest Bushby, Geoffrey Barridge Page and William Shenton) and Steuart and Company Limited represented by two of the directors viz. , Frank Earnest Bushby and J. H. Patterson, where it was stated that
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
