2012 (2) GCD 1552 (Guj)
Hon’ble Mr. Justice Rajesh H. Shukla
Dipak Rasbiharilal Goyel
Versus
Naliniben H. Raval
First Appeal No. 879 of 2011—Decided on 23/03/2012
Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 — Transfer of Property Act, 1882 (Central Act 4 of 1882) — Sections 106 and 111(a) — Suspension of Rent Act — Termination of leave and licence agreement — In absence notice eviction on ground of breach of condition of agreement and efflux of time — Sustainability — Finding of — In the case admittedly the Rent Act having been suspended, it is not applicable Court considered the other ground of breach of condition of agreement and held that agreement between the parties was not a agreement of lease but it was an undertaking given by licensee on basis of ‘leave and licence’ for residence — It has been clearly provided therein that premises has been permitted to be used purely on leave and licence basis as licensee only for a limited period of 11 months and not as a lessee or a tenant — The provisions of Transfer of Property Act are also therefore not attracted because it provides the notice in absence of any agreement or written contract — Under the circumstances Court held that present appeal has not force and can not be entertained.
Held :
It is required to be noted again, as per the leave and licence agreement at Ex.26, it has been specifically stipulated in the agreement itself that the possession of the premises is given on leave and licence basis for the period of 11 months only and not as a lessee or tenant. Further, the provisions of Section 106 of the Transfer of Property Act provides with regard to the termination of a lease and the notice in absence of any agreement or written contract. However, in the facts of the case, there is specific leave and licence agreement between the parties which provides for the aspects like, the possession is handed over on leave and licence agreement for a period of 11 months making it clear that it is not a lease and that the appellant cannot claim any right or possession as a lessee or a tenant. Therefore, when there is expressed stipulation in the contract / leave and licence agreement providing for such aspects that Section 106 of the Transfer of Property Act will not have any application as it refers to the lease. Further as stated above again it refers to the lease where there is no contract whereas in the facts of the case there is a separate leave and licence agreement at Ex.26 between the parties. [Para 10]
Law Laid Down :
Provisions with regard notice for termination of tenancy under Transfer of property Act applies in absence of agreement for written contract.
Rajesh H. Shukla, J.—The present First Appeal has been filed by the appellant – original defendant challenging the judgment and order rendered in Special Civil Suit No. 551 of 2008 by the learned 3rd Additional Senior Civil Judge, Ahmedabad (Rural), Mirzapur, Ahmedabad dated 19.02.2011 on the grounds stated in the memo of appeal.
2. The facts of the present case briefly stated are that the suit property – flat No. B-13, Venunad Apartment, Near Udgam School, Ahmedabad had been given by the respondent – original plaintiff on leave and licence basis as per the agreement of Leave and Licence at Ex.26 subject to the terms and conditions mentioned therein for a period of 11 months. As per the terms and conditions of the Leave and Licence Agreement, the appellant was to handover vacant and peaceful possession on expiry of the period. The appellant was also required to pay Rs. 5,500/- regularly, every month and in case of any two consecutive defaults, the tenancy would get terminated automatically. It is also stipulated that, by notice, such leave and licence could be terminated before expiry of 11 months. As there was a default committed by the appellant in making payment of the amount of Rs. 5,500/- for the month of October and November 2008, and also there was a breach of the conditions with regard to the use only for the residential purpose, the notice dated 04.10.2008 was served asking to hand over the vacant and peaceful possession within 15 days, or in any case on expiry of 11 months of the Leave and Licence Agreement. The reply was given and ultimately, the aforesaid suit has been filed. It is required to be mentioned that the suit was filed and the same is decreed on appreciation of material and evidence by the Court below, which is assailed in the present Appeal on the grounds stated in the memo of Appeal inter alia the learned trial Judge has committed an error in not appreciating the evidence including the notice. It is contended that, by the Notification, the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (for short “the Rent Act”) has been suspended and the suit is required to be filed instead of Small Causes Court to City Civil Court. It is also contended that as per the Transfer of Property Act, if any breach is committed by the tenant, the landlord is entitled to get the possession after issuing the notice, and the grounds which have been given, have not been justified, and therefore, the impugned judgment is erroneous.
3. Learned advocate Mr. J. R. Shah for the appellant has submitted that as per the provisions of the Rent Act, which has been suspended, the only difference would be that the suit would be filed in the Civil Court instead of Small Causes Court i.e. Rent Court. He submitted that for any breach or violation of the terms and conditions of the agreement and to recover the possession of the premises, the notice is required to be given by the landlord even under the Transfer of Property Act. Learned advocate Mr. Shah submitted that the recovery of possession has been sought on two grounds ; (i) default in payment of the rental charges; (ii) the use of the premises in breach of the conditions. He submitted that the notice was issued demanding the rent for the month of November 2008. Therefore, the said ground is not available. Another default is with regard to the use of the premises for residential purpose only whereas the appellant is said to have been using it for tuition. He submitted that it has not been properly appreciated that it is not a commercial use and that ground is also not available. He has referred to the papers the Leave and Licence Agreement at Ex.26 and reply at Ex.28. He pointedly referred to the Leave and Licence Agreement at Ex.26 produced which has been produced with the paper book and referred to Clause 10 of the Leave and Licence Agreement which provides that
“the Licensee agrees and undertake to pay regularly and punctually to the Licensor a License Fee of Rs.
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