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2000 Supreme(Ker) 330

Judges : K.T.THOMAS,D.P.MOHAPATRA,R.C.LAHOTI
Anthony - Appellant
Versus
Ittoop - Respondent
Case No : C.A. No. 5904 of 1999
Decided On : 07/21/2000
Advocates Appeared :
T.L. Viswanatha Iyer; T.G.N. Nair; For Appellants P. Krishnamoorthy; For Respondent

A lease can be created by conduct of the parties, even without a registered instrument. Non-registration of a lease-deed does not negate the existence of a lease.

Headnote:

Lease - Property Law - Kerala Buildings (Lease and Rent Control) Act, 1965 - Transfer of Property Act, 1882 - Registration Act, 1908 - The court examines the definitions of 'tenant' and 'building' under the Rent Act and concludes that a lease is necessary for the Act to apply. The court analyzes the provisions of the Transfer of Property Act and the Registration Act, which require leases to be registered. The court finds that the lease-deed is invalid due to non-registration. However, the court determines that a lease can still be created by conduct of the parties, even without a registered instrument.

Fact of the Case:

A dispute arises regarding the validity of a lease made by an unregistered instrument. The appellant claims protection under the Rent Control legislation, but the High Court rules that the lease is void under law. The main question is whether the appellant can claim protection as a tenant under the Rent Act.

Finding of the Court:

The court examines the definitions of 'tenant' and 'building' under the Rent Act and concludes that a lease is necessary for the Act to apply. The lease-deed in question is unregistered and therefore cannot create a valid lease. The court also analyzes the provisions of the Transfer of Property Act and the Registration Act, which require leases to be registered. The court finds that the lease-deed is invalid due to non-registration. However, the court determines that a lease can still be created by conduct of the parties, even without a registered instrument. The court concludes that the appellant is a lessee of the building and is protected under the Rent Act.

Ratio Decidendi: The court holds that a lease can be created by conduct of the parties, even without a registered instrument. The non-registration of the lease-deed does not negate the existence of a lease. The appellant is considered a lessee under the Rent Act and is protected from eviction.

Result: The court allows the appeal, sets aside the judgment of the High Court, and dismisses the suit filed by the respondent without prejudice to their right to seek eviction through the Rent Control Court.

Judgement Key Points

The provided legal document indicates that even in the absence of a registered deed or formal agreement, a lease can still be created through the conduct of the parties involved. It emphasizes that non-registration of a lease-deed does not negate the existence of a lease if the circumstances and actions of the parties demonstrate a lease relationship. Specifically, it states that a lease can be implied or established by the conduct of the parties, such as possession and payment of rent, and that such conduct can be sufficient to recognize a lease even without a formal, registered instrument (!) (!) (!) .

Furthermore, the document clarifies that the absence of a registered lease-deed does not prevent the assessment or collection of rent, nor does it necessarily mean that no lease exists. The key factor is whether the parties' actions and circumstances point to a lease relationship, which can be recognized independently of the formal registration requirement (!) (!) (!) .

In summary, the document does not state that rent cannot be assessed in the absence of a deed or agreement. Instead, it affirms that rent can be paid and received as part of a lease relationship, even if the formal deed is not registered, provided there is sufficient conduct to establish the lease.


Judgment :-

1. A dispute which constantly caused many litigations to prolong the past (whether a lease could be made by an unregistered instrument when such deed is compulsorily registerable) has once again been raised and that dispute has lengthened the longevity of this litigation through a chequered career. The successor of the party who was mainly responsible for not registering the instrument has now been

benefited of it as the impugned judgment gave a decree for eviction of the person who was admittedly inducted into possession of the building by the former. Though appellant claimed protection under the provisions of the Rent Control legislation the High Court discountenanced it on the premise that the document executed by the parties regarding the transaction is void under law. The simple question now is whether appellant can claim protection as a tenant under Kerala Buildings (Lease and Rent Control)

Act, 1965 (for short the 'Rent Act').

2. Facts, mostly undisputed, are the following: The building which is the subject matter of this litigation is described as a shed which originally belonged to a family the senior member of which inducted the appellant in possession thereof as per a lease deed dated 4.1.1974 which was ostensibly meant for a period of five years. The monthly rent of the building has been fixed at Rs. 140/-. Appellant paid rent at the said rate till October 1974. Sometime during this period ownership of the building happened to be allowed to a female member of the family (Devaki) as per a partition effected between its members. Thereafter rent of the building was paid by the appellant to the aforesaid Devaki. Subsequently ownership of the building was transferred by Devaki to the respondent who filed the suit as plaintiff (for the sake of convenience respondent can be referred to as "the plaintiff"). The trial Court decreed the suit by repelling the contention of the appellant that the suit was not maintainable as he is protected from eviction under the provisions of the Rent Act. The trial court found that the appellant is not a tenant as the lease was void on account of non-registration of the lease-deed. In the first appeal filed by the appellant a District Judge held that in spite of non-registration of the instrument there was a valid tenancy of the building and hence appellant could not be evicted except in accordance with the provisions of the Rent Act.

3. In the second appeal filed by the respondent a Single Judge of the High Court of Kerala set aside the judgment of the District Court and remanded the first appeal to that Court by holding that the plaintiff was inducted into possession under a void lease and hence the court should consider "whether, independent of this lease the defendant was in possession as a lessee from month to month". Learned Single Judge pointed out that since it is a question of fact the same has to be decided on the evidence on record. After the remand the District Court entered upon a finding that despite the defect of non-registration of the instrument "the facts and circumstances of this case and the evidence discussed above could clearly show that the parties intended to create a lease." The District Judge further held that the appellant is the tenant as defined in the Rent Act and hence the plaintiff is not entitled to a decree in this case and his remedy is to apply before the Rent Control Court.

4. When the matter went up to the High Court again in a second appeal a learned Single Judge did not agree with the approach made by the District Judge after remand and the following observations, inter alia, have been made by the High Court:

"It has to be noted that if the conclusion of this Court on the earlier occasion were that payment and acceptance of rent pursuant to the void contact itself would bring about the relationship of landlord and tenant between the parties protected under the Kerala Buildings (Lease and Rent Control) Act this Court would have certainly dismisse



























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