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1999 Supreme(Del) 316

High Court Of Delhi
AKASH GANGA BUILDERS AND ENGINIRS PRIVATE LIMITED - Appellant
Versus
G.P.SETH HUF - Respondent
REGULAR FIRST APPEAL 290 of 1999
Decided On : 05/01/1999

Advocates Appeared:
MUKUL ROHTAGI, RAJIV SHAKDHAN, S.S.VATS

A notice to quit must be construed liberally and not to be read in a hyper critical manner. The intention to terminate tenancy must be clear. A notice to quit need not be worded with accuracy.

Headnote:

LANDLORD AND TENANT - NOTICE TO QUIT - VALIDITY - SECTION 106 OF THE TRANSFER OF PROPERTY ACT, 1882 - NOTICE TO QUIT MUST BE CONSTRUED LIBERALLY - NOT TO BE READ IN A HYPER CRITICAL MANNER - INTENTION TO TERMINATE TENANCY MUST BE CLEAR - NOTICE TO QUIT NEED NOT BE WORDED WITH ACCURACY - TENANCY HOLDING UNDER A RENT NOTE WHICH IS INADMISSIBLE FOR WANT OF REGISTRATION IS A TENANCY AT WILL AND NO NOTICE IS NECESSARY TO DETERMINE THE TENANCY - A DEMAND FOR POSSESSION IS SUFFICIENT.

Fact of the Case:

The appellant, a tenant, challenged the validity of a notice to quit issued by the respondent, the landlord, under Section 106 of the Transfer of Property Act, 1882. The appellant also claimed that the tenancy was extended for another period of ten years by oral agreement and that there was no admission on its part which could form the basis for passing a decree under Order 12 Rule 6, CPC. The appellant further contended that mesne profit could not be awarded because it had paid excess rent.

Finding of the Court:

The court held that the notice to quit was valid and that the tenancy was terminated with the end of the tenancy month. The court also held that there was no material on record to show that the parties extended the period of lease for another period of 10 years after the expiry of the initial lease period. The court further held that there was sufficient admission on record for the Trial Court to pass the decree under Order 12 Rule 6, CPC. Finally, the court held that the appellant was liable to pay mesne profit as the physical measurement by the Architect showed that the area in possession of the appellant was not what was alleged by the appellant.

Issues: 1. Whether the notice to quit issued by the respondent was valid under Section 106 of the Transfer of Property Act, 1882? 2. Whether the tenancy was extended for another period of ten years by oral agreement? 3. Whether there was any admission on the part of the appellant which could form the basis for passing a decree under Order 12 Rule 6, CPC? 4. Whether the appellant was liable to pay mesne profit?

Ratio Decidendi: 1. A notice to quit must be construed liberally and not to be read in a hyper critical manner. The intention to terminate tenancy must be clear. A notice to quit need not be worded with accuracy. 2. A tenancy holding under a rent note which is inadmissible for want of registration is a tenancy at will and no notice is necessary to determine the tenancy. A demand for possession is sufficient. 3. The court can pass a decree under Order 12 Rule 6, CPC, based on the admissions on record. 4. The appellant was liable to pay mesne profit as the physical measurement by the Architect showed that the area in possession of the appellant was not what was alleged by the appellant.

Final Decision: The appeal was dismissed. Parties were left to bear their own costs.

Usha Mehra, J.

( 1 ) AKASH Ganga Builders and Engineers Pvt. Ltd. has assailed the order passed by the learned Additional District Judge, Delhi, thereby decreeing the suit of the respondent, granting decree of possession and mesne profits.

( 2 ) THE impugned judgment and decree have been assailed primarily on the grounds: (i) That the notice terminating the tenancy under Section 106 of the Transfer of Property Act (hereinafter called the T. P. Act) dated 7th May,1996 was not valid. Hence in the absence of valid notice decree could not have been passed, (ii) That as per oral agreement the period of tenancy could be extended at the option of the lessee (appellant herein ). The appellant/lessee exercised that option seeking extension of lease for another period of ten years. Since the tenancy was subsisting it could not have terminated by efflux of time. (iii) That there was no admissions made by the appellant on the basis of which decree could be passed under Order 12 Rule 6 CPC, and finally (iv) the amount of rent had already been paid in excess to the respondent, therefore, the appellant was not liable to pay any mesne profit rather the excess amount already paid was required to be refunded or adjusted for future rent.

( 3 ) IN order to appreciate the challenge raised, we may have a quick glance to the facts relevant for the determination of the same. Briefly stated the facts are that the respondents herein are the owners/landlords of the property bearing flat No. 407, Inder Prakash Building, Connaught Place, New Delhi, measuring super area 726 sq. ft. This premises was let out to the present appellant on 28th June, 1990 by an unregistered lease deed. Premises was let out on a monthly rent of Rs. 24. 00 per sq. ft. It was initially let out for a period of three years. The monthly rent worked out to Rs. 17,424. 00 payable in advance. The initial lease period expired in June,1993. The parties by exchange of letters extended the period of tenancy for another period of three years beginning from 1st July, 1993. The rent was enhanced by 20% over and above the existing rent and made it to Rs. 28. 80 paise per sq. ft. per month. On calculation it worked out to Rs. 20,910. 00 per month. That the period of lease expired by efflux of time on 30th June,1996. However as an abundant caution tenancy was also terminated by a legal notice. The rent for the period from June,1996 and seven days of July,1996 had not been paid. The appellant was also to pay proportionate amount of maintenance charges in lieu of services provided by the builders. Hence the appellant was called upon to pay the outstanding amounts towards maintenance charges. It was also pleaded that the prevalent market rent of such like premises was Rs. 270. 00 per sq. ft. per month. Thus the respondent (plaintiff before trial court) claimed damages of Rs. 1,63,350. 00 for 25 days. The other ground taken was that the appellant herein had without the consent of the respondent/landlord sub-let the tenanted premises.

( 4 ) THE appellant herein in its defence had taken the plea that the notice alleged to be under Section 106 T. P. Act was not a valid notice. That no breach of the terms of the lease had been committed, therefore, the suit was not maintainable. The suit suffered from mis-joinder and non-joinder of necessary parties. Moreover there did not exist any privity of contract between the plaintiff No. 1 HUF and the defendant. The premises, in fact was leased out by Shri G. P. Seth and Smt. Sheeba Seth fora period of three years in 1990 and not by a HUF. Lease was given orally on the condition that it could be extended in accordance with the. wishes and desire of the lessee but by increasing rent at the rate of 10% after every three years. After the expiry of three years, lease was extended orally by increasing rent at the rate of 10%. Thereafter on the expiry of further three years, the lease was to get automatically revived. It was only when the rent was not enhanced that the

























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