High Court Of Calcutta
ALTAMAS KABIR, GORACHAND DE
CENTRAL BANK OF INDIA - Appellant
Versus
BAIDYA NATH CHATTOPADHYAY - Respondent
FIRST APPEAL 286 Of 1995
Decided On : 07/04/2001
LEASE RENEWAL - SECTION 116 OF THE TRANSFER OF PROPERTY ACT, 1882 - HOLDING OVER - WITHDRAWAL OF RENT BY LANDLORD AFTER EXPIRY OF LEASE - CREATION OF NEW TENANCY - INTERPRETATION OF NOTICE AND SERVICE - EFFECT OF LEGAL NOTICE ON TENANT'S CONTINUED POSSESSION.
Fact of the Case:
The Central Bank of India leased a property from Biswanath Chatterjee for 21 years with an option to renew for three further terms of seven years each. After Chatterjee's death, the plaintiff, as his executor, sent a notice to the bank informing that the option had not been enforced and the lease would expire on the original term. The bank continued to occupy the premises after the lease expired, and the plaintiff filed a suit for possession. The bank claimed that the plaintiff had accepted rent after the lease expired, creating a new tenancy by holding over.
Finding of the Court:
The court found that the plaintiff had sent a legal notice to the bank before the lease expired, informing that the option to renew would not be exercised. The court also found that the plaintiff had withdrawn the rent deposited by the bank in his account after the lease expired, but that this withdrawal was on account of damages and not rent. Therefore, the court held that no new tenancy was created by holding over.
Issues: 1. Whether the plaintiff's withdrawal of rent after the lease expired created a new tenancy by holding over. 2. Whether the legal notice sent by the plaintiff before the lease expired was effective in terminating the tenancy.
Ratio Decidendi: 1. The court held that the plaintiff's withdrawal of rent after the lease expired did not create a new tenancy by holding over because the plaintiff had sent a legal notice to the bank before the lease expired, informing that the option to renew would not be exercised. 2. The court held that the legal notice sent by the plaintiff before the lease expired was effective in terminating the tenancy because the bank did not exercise its option to renew the lease before the expiry of the original term.
Final Decision: The court dismissed the bank's appeal and the plaintiff's cross-objection for enhancement of mesne profits.
( 1 ) THIS appeal arrives out of a suit filed by the respondent herein against the Central bank of India for recovery of khas possession of the suit premises.
( 2 ) THE case as made out in the plaint is that the properties mentioned in the schedule thereto, along with other properties, belonged to one biswanath Chatterjee exclusively. On 21st May, 1965, the said Biswanath chatterjee granted a lease of the suit properties in favour of the Central bank of India for a period of 1 years commencing from 15th June, 1965. The lease deed contained an option clause for renewal of the lease for three further terms of seven years each on such terms and conditions as might be mutually agred upon.
( 3 ) THE said Biswanath Chatterjee died on 8th May, 1975, leaving a will by which he appointed the plaintiff. Baidya Nath Chattopadhyay as his sole Executor. On Biswanath chatterjee's death the plaintiff filed an application for grant of probate before the learned Chief Judge, City Civil court, at Calcutta, and such probate was duly granted to him on 17th august, 1993. Theee aforesaid lease expired by efflux of time on 15 June 1986. Prior to the expiry of the lease the plaintiff gave a legal notice to the bank on 16th April, 1986, informing the Bank that although the lease was to expire on 14th June, 1986, the option of renewal contained in the lease deed had not been enforced. It was also indicated in the notice that in view of such inaction by the Bank it was to be presumed that there was no intention on the part of the Bank to enforce or exercise the option of renewal and consequently the lease would stand determined by efflux of time on and from 15th June, 1986. Despite such notice, the Bank did not take any steps to exercise its option of renewal of the lease and continued in possession of the suit premises even after determination of the lease by efflux of time.
( 4 ) THE plaintiff/respondent thereupon filed the aforesaid suit on 25th june. 1986, immediately after the lease expired. The suit was hotly contested on behalf of the defendant/appellant and in the written statement filed on behalf of the defendant it was categorically denied that the lease had been determined by efflux of time on and from the month of June, 1986. It was contended on behalf of the defendant/ appellant that prior to the expiry of the period of the lease a series of negotiations had been carried on between the plaintiff and the defendants with regard to the renewal of the lease and there was, therefore, no occasion for the defendant to deliver up peaceful and vacant possession of the leasehold premises. It was also denied that the defendant was in wrongful possession of the suit premises as alleged by the plaintiff.
( 5 ) A specific defence was taken on behalf of the defendant Bank that the plaintiff was not entitled to a decree for khas possession of the leasehold premises, inasmuch as, even after 15th June, 1986, the plaintiff accepted rents from the defendant thereby creating a new tenancy in respect of the suit premises by way of holding over. Of the two witnesses examined on behalf of the plaintiff, one-was the Manager of the estate of the plaintiff and the other was an employee, who was an attesting witness in respect of the Will executed by Biswanath Chatterjee. The defendant Bank examined its accountant of its Posta Bazar Branch.
( 6 ) AFTER considering the evidence adduced by the parties and the materials on record, the learned Judge, Vlth bench, City Civil Court at Calcutta, decreed the suit by his judgment and decree dated 25th January, 1994 and 21st February, 1994, respectively and directed that the plaintiff do recover khas possession of suit property by evicting the defendant therefrom. The plaintiff was also given a decree for mesne profits at the rate of Rs. 200/- per day from 15th June, 1986, till recovery of khas possession of the suit premises.
( 7 ) THIS appeal is directed against the said judgment and decree of the lear
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