Judges : KOSHI,NANDANA MENON
Gopala Kiamal - Appellant
Versus
Variath - Respondent
Case No : S. A. No. 530 of 1954
Decided On : 06/18/1956
Advocates Appeared :
V. Sankara Menon; For Appellant C. A. Ouseph; C. J. Antony; For Respondent
lease renewal - Cochin Verumpattomdars Act - Ss.5, 13, 10 - The court held that the renewal of a lease with enhanced rent was not valid under the Cochin Verumpattomdars Act. The agent exceeded his authority in agreeing to an enhancement of rent, and the renewal did not bind the plaintiffs or their interest over the leasehold.
Fact of the Case:
The case involved a dispute over the validity of a lease renewal executed by a mukthyar agent in favor of the landlord, which included an enhancement of rent. The plaintiffs claimed that the renewal was not valid and sought to set it aside.
Finding of the Court:
The court found that the renewal with enhanced rent was not valid under the Cochin Verumpattomdars Act. The agent exceeded his authority in agreeing to the enhancement, and the renewal did not bind the plaintiffs or their interest over the leasehold.
Issues: The issues revolved around the validity of the lease renewal, the authority of the mukthyar agent, and the impact of the renewal on the plaintiffs' interest in the leasehold property.
Ratio Decidendi: The court held that the renewal with enhanced rent was not valid under the Cochin Verumpattomdars Act. The agent exceeded his authority, and the renewal did not bind the plaintiffs or their interest over the leasehold. The court also emphasized that the plaintiffs' knowledge of the renewal prior to the sale deeds did not affect their legal rights.
Final Decision: The second appeal was dismissed with costs in favor of the plaintiffs.
1. This second appeal is directed against the concurrent decisions of the two lower courts declaring that the renewal of a lease executed by defendant 5 as a mukthyar agent of defendant 2 in favour of defendant 1 is not valid or binding on the plaintiffs or the leasehold interest they claim in the property. The facts that led to the litigation are clearly and succinctly stated in Para.1 of the lower appellate court's judgment. That paragraph may with advantage be quoted here:
"The first defendant is the appellant. The suit is for setting aside Ext. II, renewal deed executed by the 5th defendant as Mukthyar of the 2nd defendant in favour of the jenmi, the 1st defendant. The second defendant had a leasehold interest in the plaint property. He contracted with the 1st plaintiff on 2.12.1124 to sell the leasehold interest to the latter before the 15th of Chingom 1125 for a consideration of Rs. 1300. Ext. A and Ext. A(1) are the agreement and counter-part. Thereafter on 8.12.1124, the 2nd defendant executed Ext. I Mukthyar in favour of the 5th defendant authorising him to execute a lease deed in favour of the 1st defendant attorning to the latter. On 10.12.1124, the 5th defendant executed Ext. II lease deed in favour of the 1st defendant enhancing the dues from Rs. 2-4-5 to Rs. 9-9-9 and agreeing to surrender the property on demand. The 1st plaintiff came to know of this before he took the sale deed. Therefore, he demanded the cancellation of Ext. II. The 1st defendant refused to do it, while the 2nd defendant stated that Ext. II was the result of fraud played by defendants 1 and 5. Thereafter the 2nd defendant executed Exts. C and C(1) sale deeds in the name of the two plaintiffs on 7.1.1125. The 2nd plaintiff is the son of the 1st plaintiff and it is their case that even the document in the name of the 2nd plaintiff was taken benami for the 1st plaintiff and in pursuance to Ext. A. As on the date of Exts. C and C(1) Ext. II was in force, the plaintiffs brought this suit to set aside Ext. II and to declare that the rent due is only Rs. 2-4-5."
2. The trial court gave a decree to the plaintiffs in terms of his plaint on the ground that Ss.5 and 13 of the Cochin Verumpattomdars Act (VIII of 1118) forbade enhancement of the rent of a verumpattom holding. The lower appellate court besides concurring in that view also held that under Ext. I, the mukthyar executed by defendant 2 in favour of defendant 5 to execute a renewal, did not authorise defendant 5 to agree to an enhancement of rent. Besides the grounds on which the lower appellate court based its decision the plaintiffs had depended upon two other grounds also to obtain reliefs asked for in the suit. One was that the provision for enhanced rent was introduced into Ext. II fraudulently and without the knowledge of defendant 5. The trial court repelled the case of fraud and that case was not sought to be urged either before the lower appellate court or before us in second appeal. The other ground relied upon in the plaint was that on the date of Ext. II plaintiff 1 was in possession of the property pursuant to the agreement to sell [Ext. A and Ext. A(1)] and that therefore the renewal effected after the title passed to the vendee was not binding on him. The terms of Ext. A and Ext. A(1) as also the terms of Ext. C and Ext. C(1), the two sale deeds in favour of plaintiff 1 and plaintiff 2, belie the case that any possession passed to plaintiff 1 pursuant to the agreement to sell. We are, therefore, called upon to consider only whether the grounds on which the lower appellate court dismissed the present appellant's (defendant 1's) appeal before it are sound.
3. Mr. V. Sankara Menon, learned counsel for the appellant urged that the Cochin Verumpattomdars Act did not prevent the landlord and the tenant effecting a renewal of a lease with enhanced rent. While counsel conceded that an agreement to enhance the rent made during the currency of a lease may not be valid, S.10 of the
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