189 (2012) DLT 153
IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J. MEHTA, J.
SNEH VAISH & ANR. - Appellants
versus
STATE BANK OF PATIALA & ORS. - Respondents
RFA No.107/2004
Decided On : 27th February, 2012
Transfer of Property Act - Tenancy - Section 106 of the Transfer of Property Act, 1882 - [Section 106 of the Transfer of Property Act, 1882] - The court discussed the applicability of the Amendment Act, 2002 to notices terminating tenancy and held that the tenancy was validly terminated under the amended Section 106. The court also determined the mesne profits and interest payable to the appellants/landladies based on judicial notice of rent increases in urban areas.
Fact of the Case:
The appellants filed a suit for possession and mesne profits, which was dismissed by the Trial Court on the ground that the monthly tenancy was not proved. The appellants challenged this decision under Section 96 of the Code of Civil Procedure, 1908.
Finding of the Court:
The court held that the tenancy of the respondents was validly terminated under the amended Section 106 of the Transfer of Property Act, 1882. The court also determined the mesne profits and interest payable to the appellants/landladies based on judicial notice of rent increases in urban areas.
Issues: Validity of the termination of tenancy, determination of mesne profits, and interest payable.
Ratio Decidendi: The amended Section 106 of the Transfer of Property Act, 1882 applies to pending proceedings and notices where proceedings have not commenced, and the court can take judicial notice of rent increases in urban areas to determine mesne profits.
Final Decision: The impugned judgment was set aside, and the appellants/landladies were entitled to mesne profits at a specified rate with cumulative annual increases and interest at 12% per annum. They were also awarded costs of the appeal.
1. This case is on the Regular Board of this Court since 2.2.2012. Today, the matter is effective item no. 15 on the Regular Board. No one appears for the respondents although it is 3.15 P.M. I have therefore heard counsel for the appellants, and after perusing the record, am proceeding to dispose of the appeal.
2. The challenge by means of this Regular First Appeal (RFA) filed under Section 96 of the Code of Civil Procedure, 1908 (CPC) is to the impugned judgment of the Trial Court dated 29.11.2003 dismissing the suit for possession and mesne profits filed by the appellants/plaintiffs/landladies. The Trial Court has dismissed the suit on the ground that what was the monthly tenancy was not proved and therefore the notice terminating tenancy dated 18.8.1998, Ex.PW1/4, cannot be said to have validly terminated the tenancy.
3. The impugned judgment was passed on 29.11.2003 and the Trial Court has committed an error in overlooking the Transfer of Property (Amendment) Act, 2002 which became applicable from 31.12.2002. As per this Amendment Act, Section 106 of the Transfer of Property Act, 1882 was amended, and thereby, objections as to invalidity of notices terminating tenancy was done away with as long as a period of 15 days was given to a tenant to vacate the premises. This Amendment Act also applies to the pending proceedings. The Amendment Act reads as under:- “THE TRANSFER OF PROPERTY (AMENDMENT) ACT, 2002 [31st December, 2002] (3 of 2003) An Act further to amend the Transfer of Property Act, 1882. Be it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:-
1. Short title.- This Act may be called the Transfer to Property (Amendment) Act, 2002.
2. Substitution of new section for section 106.- For Section 106 of the Transfer of Property Act, 1882 (4 of 1882) (hereinafter referred to as the principal Act), the following section shall be substituted, namely:-
“106. Duration of certain leases in absence of written contract or local usage.-
(1) In the absence of a contract or local law or usage to the contrary, a lease of immovable property for agricultural of manufacturing purposes shall be deemed to be a lease from year to year, terminable, on the part of either lessor or lessee, by six months’ notice; and a lease of immovable property for any other purpose shall be deemed to be a lease from month to month, terminable, on the part of either lessor or lessee, by fifteen days’ notice.
(2) Notwithstanding anything contained in any other law for the time being in force, the period mentioned in sub-section (1) shall commence from the date of receipts of notice. (3) A notice under sub-section (1) shall not be deemed to be invalid merely because the period mentioned therein falls short of the period specified under that sub-section, where a suit or proceeding is filed after the expiry of the period mentioned in that sub-section. (4) Every notice under sub-section (1) must be in writing, signed by or on behalf of the person giving it, and either be sent by post to the party who is intended to be bound by it or be tendered or delivered personally to such party, or to one of his family or servants at his residence, or (if such tender or delivery is not practicable) affixed to a conspicuous part of the property.”
3. Transitory provisions.- The provisions of section 106 of the principal Act, as amended by section 2, shall apply to- (a) all notices in pursuance of which any suit or proceeding is pending at the commencement of this Act; and (b) all notices which have been issued before he commencement of this Act but where no suit or proceeding has been filed before such commencement.”
4. A reference to Section 3 of the Amendment Act shows that the amended Section 106 of the Transfer of Property Act applies to all notices pursuant to which any suit or proceeding is pending before the commencement of Amendment Act and also to notices where proceedings have not commenced. Accordingly, applying th
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