Validity of termination of tenancy and entitlement to value of improvements under the T. P. Act.

1. In this second appeal by the defendant two questions arise for determination. The defendant-appellant urges that there has not been a valid termination of the tenancy as required under S.106 of the T. P. Act for the landlord to recover possession, and secondly he claims value of improvements before eviction. Certain shop rooms and a portico belonging to the plaintiff were let out to the defendant. The rent agreed upon was Re. 1/- per day, Alleging default in the payment of rent after 28 91967 the plaintiff filed O.S. No. 587/68 for eviction of the defendant and for recovery of arrears of rent. in that suit the latter relief alone was granted as the court was of the view that there was no proper termination of tenancy. Thereafter the plaintiff issued a registered notice on 511970 demanding surrender of the building with arrears of rent by 10 21970. The defendant did not comply with that notice and so the plaintiff filed the present suit. The defendant admitted the tenancy and pleaded that the amount of arrears claimed by the plaintiff is not due and also contended that there has not been a valid termination of tenancy. There was a further claim for value of improvements. The learned Munsiff found that there was no arrears of rent, held that there was a valid termination of the tenancy, found that the defendant is not entitled to any value of improvements and consequently decreed the suit for eviction. On appeal this decree was confirmed and hence this second appeal.

2. In the plaint the plaintiff alleged that the defendant took the property on rent and executed a rent deed on 10 21959. In Ext. A2 notice issued by him he required the defendant to vacate the building on 10 21970. Defendant admits the receipt of the notice, but contends that that will not constitute a valid termination of the tenancy. In what way the notice is invalid is not stated in the written statement. At the time of the argument in the trial court a contention was taken that the rent deed executed by him does not create a valid lease in view of S.107 of the T. P. Act and the rent deed is not admissible in evidence to prove the tenancy. The learned Munsiff was of the view that the execution of a lease deed by both the lessor and the lessee as required in the third paragraph of S.107 is necessary only if the rent deed is compulsorily registerable. The rent deed is only for a period of six months and hence the Munsiff took the view that the instrument need not be registered. This view was not accepted by the learned Judge. He found that Ext. Al rent deed being unregistered and not executed by the lessor and the lessee is invalid and cannot be made use of for the purpose of finding out the date of the commencement of the tenancy even. Having taken that view he put the burden on the defendant to show the date of the commencement of the tenancy and as he has failed to establish that, the notice Ext. A-2 was held to be sufficient to terminate the tenancy. The conclusion arrived at by the learned judge regarding the inadmissibility of the rent deed to prove the date of commencement of the tenancy is incorrect. The rent deed is executed by the lessee alone. It is also not registered and therefore it is inadmissible to. prove the creation of a lease by an instrument. But, it is admissible to prove the creation of a lease by oral agreement accompanied by delivery of possession as mentioned in S.107 of the T. P. Act. The rent deed can be relied on to establish the jural relationship between the parties. It contains an admission or an acknowledgment by the defendant who is sought to be made liable that he is a tenant and that is the best evidence that one can possibly have as to the oral agreement of a lease. It is well known that documents relating to sales, leases and mortgages come into existence only after agreements arrived at between the parties to these transactions. The lessor and lessee generally agree to the terms of the tenancy beforehand and the