1990 Supreme(Cal) 211
High Court Of Calcutta
UMESH CHANDRA BENERJEE
CALOREX INDIA LTD. - Appellant
Versus
TARA PROPERTIES PVT.LTD - Respondent
Company Application 75 Of 1990
Decided On : 05/11/1990
SECTION 14 OF THE WEST BENGAL PREMISES TENANCY ACT, 1956, DOES NOT APPLY TO SITUATIONS WHERE THE TENANT IS INVOLUNTARILY DEPRIVED OF POSSESSION OF THE PREMISES, SUCH AS IN THE CASE OF A COMPANY IN LIQUIDATION.
Headnote:
DISCLAIMER - WEST BENGAL PREMISES TENANCY ACT, 1956 - SECTION 14 - COURT INTERPRETED SECTION 14 OF THE ACT TO MEAN THAT THE TENANT CANNOT DEPRIVE THE LANDLORD OF THE SITUATION AND PART WITH THE POSSESSION OF THE PREMISES IN QUESTION WITHOUT THE KNOWLEDGE, CONSENT OR APPROVAL OF THE LANDLORD SO AS TO DEFEAT THE RIGHT OF THE LANDLORD IN THE MATTER OF OBTAINING POSSESSION OF THE PREMISES IN QUESTION.
Fact of the Case:
THE LANDLORD OF THE PREMISES IN QUESTION PRAYED BEFORE THE COURT THAT THE PURCHASER OF THE COMPANY, IN LIQUIDATION, OUGHT NOT TO BE ALLOWED TO UTILISE THE REGISTERED OFFICE AT GANESH CHANDRA AVENUE, CALCUTTA. MR. CHATTERJEE, APPEARING IN SUPPORT OF THE APPLICATION STRENUOUSLY CONTENDED THAT BY REASON OF THE EXPRESS PROVISION AS ENGRAFTED IN SECTION 14 OF THE WEST BENGAL PREMISES TENANCY ACT, 1956, AND SINCE NO SANCTION OR APPROVAL HAS BEEN ACCORDED BY THE LANDLORD, THE QUESTION OF THE PURCHASER ACQUIRING ANY TITLE OVER AND IN RESPECT OF THE TENANTED PORTION OF THE PREMISES IN QUESTION DOES NOT AND CANNOT ARISE.
Finding of the Court:
THE COURT HELD THAT SECTION 14 OF THE WEST BENGAL PREMISES TENANCY ACT, 1956, DOES NOT HAVE ANY MANNER OF APPLICATION IN THE FACTS AND CIRCUMSTANCES OF THE MATTER IN ISSUE. THE COURT FURTHER HELD THAT THE INTEREST OF THE SOCIETY WOULD BE SUBSERVED BY ALLOWING THE PURCHASER TO UTILISE THE REGISTERED OFFICE, AS THIS WOULD PREVENT THE LOSS OF EMPLOYMENT OPPORTUNITIES FOR THE 45 EMPLOYEES OF THE REGISTERED OFFICE.
Issues: WHETHER SECTION 14 OF THE WEST BENGAL PREMISES TENANCY ACT, 1956, APPLIES TO THE FACTS OF THE CASE.
Ratio Decidendi: THE COURT INTERPRETED SECTION 14 OF THE ACT TO MEAN THAT THE TENANT CANNOT DEPRIVE THE LANDLORD OF THE SITUATION AND PART WITH THE POSSESSION OF THE PREMISES IN QUESTION WITHOUT THE KNOWLEDGE, CONSENT OR APPROVAL OF THE LANDLORD SO AS TO DEFEAT THE RIGHT OF THE LANDLORD IN THE MATTER OF OBTAINING POSSESSION OF THE PREMISES IN QUESTION.
Final Decision: THE COURT DISMISSED THE APPLICATION FOR DISCLAIMER, ALLOWING THE PURCHASER TO UTILISE THE REGISTERED OFFICE.
( 1 ) ROSCOE Pound in one of his lectures stated that law is governed by a principle, starting point for reasoned decision, found by application of reason to experience and corrected by the experience as the process of development of the society goes on. He lays stress upon the social purpose since law subserves the social purpose.
( 2 ) ROSCOE Pound stated "legal order must be flexible as well as stable. It must be overhauled continually and refitted continually to the changes in the social life which it is to govern. If we seek principles, we must seek principles of change, no less than principles of stability. "
( 3 ) THE Draconian concept of law can no longer be said to be the guiding factor in the modern set up. It has changed in the past, it is changing now and will continue to change in the future. It is an experience developed by reason. It is a product of civilisation of the people. It must keep on changing from time to time, otherwise law will not be able to cope with the need of the people. It is a social process and it must keep on changing with the changing structure of the society. Time has now come for the law courts to rise to the occasion and interpret the law in accordance with the need of the hour. Rigid interpretation of law contrary to the needs of the society will lead to social catastrophe and law courts ought not to be a party to them. Law cannot be termed to be static or inflexible. It is flexible though, however, its stability cannot be disputed and it lies upon the law court to interpret the law so as not to destabilise on the one hand but to suit the requirement of the society since law subserves the social purpose and it lays stress upon the social purpose. In the event of an imperative demand of justice law courts are obliged to interpret the law in a manner so as to suit the social purpose rather than follow the strict and rigid formula of law.
( 4 ) THE view expressed above finds support from the decision of the Supreme Court in Motilal Padampat Sugar Mills Co. Ltd. v. State of Uttar Pradesh, wherein Bhagwati J. observed (at page 635 of AIR 1979 SC) :"it must be remembered that law is not a mausoleum. It is not an antique to be taken down, dusted, admired and put back on the shelf. It is rather like an old but vigorous tree, having its roots in history, yet continuously taking new grafts and putting out new sprouts and occasionally dropping deadwood. It is essentially a social process, the end product of which is justice and hence it must keep on growing and developing with changing social concepts and values. Otherwise, there will be estrangement between law and justice and law will cease to have legitimacy. "
( 5 ) IN this application for disclaimer under the provisions of the Companies Act, the landlord of the premises in question prayed before this court that the purchaser of the company, in liquidation, ought not to be allowed to utilise the registered office at Ganesh Chandra Avenue, Calcutta. Mr. Chatterjee, appearing in support of the application strenuously contended that by reason of the express provision as engrafted in Section 14 of the West Bengal Premises Tenancy Act, 1956, and since no sanction or approval has been accorded by the landlord, the question of the purchaser acquiring any title over and in respect of the tenanted portion of the premises in question does not and cannot arise. As such it was contended that the official liquidator should be directed to make over peaceful possession of the premises to the landlord.
( 6 ) BEFORE proceeding further in the matter, however, it would be convenient to advert to the factual aspect in a little more detail.
( 7 ) THE West Bengal Financial Corporation, being a statutory corporation, incorporated under the provisions of the State Financial Corporations Act, 1951, had on diverse dates granted various term loans to one Calorex India Pvt. Ltd. against hypothecation of its fixed assets including plant and