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1998 Supreme(Del) 477

High Court Of Delhi
KANTA MANOCHA - Appellant
Versus
HINDUSTAN PAPER CORPORATION - Respondent
Interim Application 2435 of 1996
Decided On : 07/13/1998

Advocates Appeared:
DALIP MEHRA, DEBASHISH MISHRA

A notice of termination of tenancy is required under Section 106 of the Transfer of Property Act, 1882, where a tenant continues to occupy the premises after the expiry of a lease agreement.

Headnote:

LANDLORD TENANT - POSSESSION - NOTICE TO QUIT - [SECTION 106, 111(A), 113, 116 TRANSFER OF PROPERTY ACT, 1882] - Where a lease is for a fixed period, it expires by efflux of time under Section 111(a) of the Transfer of Property Act, 1882 and service of a notice under Section 106 of the Act is not necessary in such a case. However, if the tenant continues to occupy the premises after the expiry of the lease, a new tenancy is created by holding over under Section 116 of the Act. In such a case, a notice of termination of tenancy as provided under Section 106 of the Act is necessary and without such a notice, a suit for possession would not be maintainable.

Fact of the Case:

Plaintiff filed a suit for possession and mesne profits, alleging that the defendant was holding over as a tenant after the expiry of a lease agreement. The defendant admitted the execution of the lease deed but claimed that a new tenancy had been created by holding over and that a valid notice of termination was required under Section 106 of the Transfer of Property Act, 1882.

Finding of the Court:

The court found that the lease had expired by efflux of time and that a new tenancy had been created by holding over. However, the court also found that the notice of termination served by the plaintiff did not comply with the requirements of Section 106 of the Act and was therefore invalid. The court further found that the plaintiff had accepted rent from the defendant after the expiry of the lease, which waived the notice.

Issues: 1. Whether a notice of termination of tenancy is required under Section 106 of the Transfer of Property Act, 1882, where a tenant continues to occupy the premises after the expiry of a lease agreement. 2. Whether the notice of termination served by the plaintiff was valid.

Ratio Decidendi: 1. A notice of termination of tenancy is required under Section 106 of the Transfer of Property Act, 1882, where a tenant continues to occupy the premises after the expiry of a lease agreement. 2. The notice of termination served by the plaintiff was invalid because it did not comply with the requirements of Section 106 of the Act.

Final Decision: The court dismissed the suit and the application for a decree of possession on admission.

J. B. Goel,j.

( 1 ) IN the suit for possession and mesne profits, the plaintiff has filed the application (I. A. 2435/96) under Order 12, Rule 6 read with Section 151 of the Code of Civil Procedure (for short "the Code) for passing a decree of possession on admission.

( 2 ) THE plaintiff s case is that she is the owner of property No. E-525, Greater Kailash-ll, New Delhi; had let out the same to the defendant under a lease deed dated 18. 1. 1982 at a monthly rent of Rs. 6,500. 00. The lease was duly registered and was for a period of three years and renewable, for a period of two years with enhanced rent of 10%, which was so renewed for two years and the rent was raised Rs. 7,150. 00 ; that lease being for a fixed period, expired by efflux of time after five years; the defendant did not vacate the premises; after the amendment in the Delhi Rent Control Act in 1988, the premises are out of the purview of that Act as the rent is more than Rs. 3. 500. 00 per month. The plaintiff also gave notice dated 20. 2. 1990 terminating the tenancy though it was not necessary. The defendant has not vacated the premises, the plaintiff also) claims mesne profits @ Rs. 35,000. 00 , hence this suit for possession and damages from 17. 1. 1987 till the date of filing of the suit and further mesne profits under Order 20, Rule 10.

( 3 ) DEFENDANTHAS filed a written statement contesting the suit. It is alleged that the suit is not maintainable as the attorney has no locus standi to file the suit. It is admitted that a lease was executed in the year 1982 for a period of three years which was renewed for two years on enhanced rent of 10%. It is alleged that after the expiry of the lease period, the plaintiff had agreed that the defendant will continue to occupy the premises on the same terms as per the lease deed; a. id on the basis of that agreement, they are occupying the premises as a lawful tenant. The plea thus is of holding over. It is also alleged that amendment made in the Delhi Rent Control Act is prospective in operation and the benefit of the Delhi Rent Control Act is available to them. Validity of the amendment of the Delhi Rent Control Act is also challenged. It is also alleged that no valid notice of termination of the tenancy has been served, 495 the notice dated 20. 2. 1990 is invalid; suit is not maintainable, and the plaintiff is not entitled to decree of possession or for mesne profits.

( 4 ) AFTER the pleadings were cornpleted4. , the plaintiff has filed the aforesaid application under Order 12, Rule 6 of the Code for decree on admission, alleging that the lease deed dated 18. 1. 1972 stands admitted; lease has expired on 17. 1. 1987 and even service of notice of termination dated 20. 2. 1990 stands admitted and as such a decree for possession be passed. This application is also contested by the defendant denying that the plaintiff is entitled to possession. It is pleaded that the defendant has been making payment of the rent by means of cheques which have been accepted after the expiry of the lease period.

( 5 ) DEFENDANT has filed another application being 1. A. No. 6970/96 under Section 151 of the Code alleging that the defendant has been paying and the plaintiff has been accepting rent sent by cheques for every month without any demur or objection and against receipts, thereby fresh tenancy has been created and there is novation of contract of lease and the suit is liable to be dismissed. Thus the defendant has taken the plea of holding over. In reply receipt of rent from the defendant is not denied, however it is pleaded that no new right has accrued to the defendant. However, it is admitted that they are holding over the premises within the meaning of Transfer of Property Act (for short "the Act") after the expiry of the lease.

( 6 ) THE suit for possession and mesne profit was filed on 9. 11. 1990. In the plaint, it was not alleged that the defendant was in arrears of rent till the date the suit was instituted though mesne pr
























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