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2007 Supreme(Cal) 649
High Court Of Calcutta
Alok Kumar Basu And Jyotirmay Bhattacharya, JJ.
RENUKA SEAL - Appellant
Versus
SABITRI DEY - Respondent
F. A. 287 Of 2004
Decided On : 08/24/2007
BARIN BANERJI, RAMA BANERJEE, REETABRATA MITRA, S.P.ROYCHOWDHURY, SNEHANGSHU SIL, SUMIT DHAR, Surajit Mitra, SUTWISHA GHOSH, SWAPAN KUMAR DEBNATH
Renewal of lease can be effected without a registered document if it is done through an unilateral process, where one party exercises the option to renew and the other party has no discretion but to accept such option.
Headnote:
LEASE - RENEWAL - WITHOUT REGISTERED DOCUMENT - VALIDITY - WEST BENGAL PREMISES TENANCY ACT - APPLICABILITY - LEASEHOLD SHOP ROOM - DEFENDANTS' DEFENCE OF MONTHLY TENANCY BY HOLDING OVER - REJECTED.
Fact of the Case:
Plaintiffs filed a suit for recovery of khas possession of a suit shop room from defendants on expiry of lease by efflux of time. Defendants contended that with the alteration of original lessees, the lease was surrendered and a new tenancy was created governed by the West Bengal Premises Tenancy Act. Alternatively, they argued that in the absence of a registered lease deed for renewal, the lease could not be deemed to have been renewed.
Finding of the Court:
The court held that the defendants' first defence was feeble and unworthy of acceptance as the parties had all along accepted that the tenancy was governed by the terms of the original lease deed. The court further held that renewal of lease can be effected without a registered document if it is done through an unilateral process, as in the present case where the defendants exercised their option to renew the lease and the plaintiffs had no discretion but to accept such option.
Issues: 1. Whether the alteration of lessees resulted in the surrender of the original lease and creation of a new tenancy governed by the West Bengal Premises Tenancy Act? 2. Whether renewal of lease is possible without a registered document?
Ratio Decidendi: 1. The court held that the alteration of lessees did not result in the surrender of the original lease as the parties continued to accept the terms and conditions of the original lease. 2. The court held that renewal of lease can be effected without a registered document if it is done through an unilateral process, where one party exercises the option to renew and the other party has no discretion but to accept such option.
Final Decision: The court dismissed the appeal and affirmed the judgment and decree of the trial court.
( 1 ) THIS appeal is directed against the judgment and decree dated 31st March, 2004 passed by the learned Judge, Second Bench, city Civil Court at Calcutta in Title Suit No. 1942 of 2000 at the instance of the defendants/appellants.
( 2 ) THE plaintiffs/respondents filed a suit for recovery of khas possession of the suit shop room located in the ground floor of premises No. 40, Garanhatta street, Calcutta from the defendants/appellants on expiry of lease by efflux of time.
( 3 ) A decree for damages for illegal use and occupation of the suit shop room on and from 1st day of Ashar 1407 B. S. to 27th day of Kartick 1707 B. S. at the rate of Rs. 3/- per diem and a further decree for mesne profit on and from the date of filing of suit until recovery of khas possession of the suit premises, were also sought for incidentally against the defendants in the said suit.
( 4 ) ADMITTEDLY by a registered deed of lease executed between the predecessor-in-interest of the plaintiffs/respondents, viz. , Kanailal De on the one part as lessor and Narayan Chandra Seal, Benimadhav Seal and Kalikrishna Seal on the other part as lessees, the suit shop room was demised to the said lessees collectively for a period of 21 years commencing from the 1st day of Ashar, 1376 b. S. at rental of Rs. 105/- per month payable to the lessor according to Bengali calendar month on or before the 15th day of each succeeding month for which such rent would become due and payable.
( 5 ) THE terms and conditions, on which the suit shop room was let out to the said lessees, were incorporated in the said lease deed. Some of the terras and conditions which are relevant here for the purpose of consideration of this appeal, are set out hereunder:
"1. The Lessees doth hereby covenant with the lessor as follows: (a ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (g) In case of default of non-payment of rent for three months or breach of covenants for any of the clauses of the lease, the lessor shall be entitled to terminate the lease earlier and to re-enter the premises. (h ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . (i) To bear the proportionate share of the increased occupiers' share of tax that is to say if there be any increase of Municipal rates and taxes during continuance of the lease that is to say rent being Rs. 105/- per month on such rental basis Corporation tax at present 18 % thereon but if this 18% slab be increased during continuance of this lease then in such circumstances, the lesses shall pay half of the difference amount of such increased amount of tax proportionately. (j ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (k ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Lessor hereby covenants with the Lessees as follows: (a) The Lessees paying the rents hereby reserved and observing fulfilling and performing all the several covenants conditions, obligations and stipulations herein contained and on their part to be fully paid observed fulfilled and performed shall peaceably hold and enjoy the demised room during the said period of twenty one years subject to Lessees' option for renewal for a further period of ten years as hereafter appearing without any interruption by the Lessor or by any person or persons claiming through under or in trust for him. (b ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. That on the expiry o
