Lessee's claims for fixity of tenure and improvements are unsupported due to void lease under the Kerala Land Reforms Act, 1963, disqualifying them from tenancy rights.

JUDGMENT :

PRELUDE- [Dispute Involved in the Appeals]

Emoor Bhagavathy Devaswom, represented by its Executive Officer, instituted a suit, OS No.94/2001 on the files of Additional Sub Court, Palakkad, for recovery of possession based on the strength of the title. According to the Devaswom, the 30 years of period of lease had expired and that since the Government had not accorded sanction for renewal of the lease, eviction is inevitable. The defendants (lessees) also instituted various suits seeking specific performance and mandatory injunction directing the Devaswom to renew the lease after the expiry of the 30 years based on the clause which provided for renewal of the lease at the option of the lessee. Alternatively, a plea for compensation for the improvements made was also raised. The trial court decreed the suit filed by the Devaswom and dismissed the suits filed by the defendants. The defendants appealed against the decree in the suit for recovery of possession and the dismissal of the suits for specific performance. The first appellate court dismissed both the appeals, but however granted compensation for the improvements made by the tenants. The questions which this Court is required to address are as follows.

1. Whether the appellants are entitled to fixity of tenure under Section 13(1) of the Kerala Land Reforms Act, 1963 ?

2. Whether the compensation ordered by the first appellate court under the Kerala Compensation for Tenants Improvements Act, 1958 is sustainable?

3. Are the tenants entitled for renewal of the lease as a matter of right?

While considering the above questions, this Court will have to answer certain incidental issues as well, which will be discussed in course of this judgment.

FACTS OF THE CASE

2. The Trustee of Emoor Bhagavathy Temple – Sekhari Varma Valiya Rajah Avargal- executed a registered lease in favour of Cecil Hall in the year 1907 by which 1000 acres of land, including private forest, was given on lease, primarily for rubber cultivation. The period of the lease was for 30 years. The deed of indenture was executed, incorporating all normal clauses of a lease deed. The lessee, Cecil Hall, was empowered to mortgage, transfer, assign and convey the right title and interest over the property. In the year 1925, Cecil Hall transferred the property to 1. M/s.Stanes & Co., 2. T.Krishna Chettiar,3. V.Balakrishna Mudaliar,4. V.S.Shencottiah, 5. S.Murugappa Chigateri, in favour of M/s.Elak Rubber Company Ltd. On expiry of the period of lease of 30 years, the assignee - M/s.Stanes and Company Limited, as agent of Elak Rubber Company, approached the trustee of the Temple for renewal of the lease and accordingly, the deed of indenture No.993/1937 dated 14.4.1937 was executed. During the currency of the said lease, M/s.Stanes and Company Ltd. transferred the property to one Thattil Kochuvareed, in the year 1944, who in turn transferred the property to M/s.Supreme Industries. M/s.Supreme Industries in turn by two deeds of indenture in the years 1963 and 1964 transferred the property to M/s. United Planters. Despite the assignment of leasehold rights, M/s. United Planters approached the Devaswom for renewal of the lease, since 30 years had expired in the year 1967. In view of the promulgation of the Madras Hindu Religious and Charitable Endowments Act, 1951, and that the Temple being managed by the Executive Officer, the parties were obliged to obtain the permission of the Commissioner of the HR&CE Department and after obtaining permission, on 22.12.1969 the lease was renewed for a period of 30 years.

2.1. Accordingly, the lease was renewed in favour of M/s.United Planters. During the currency of the lease, it appears that several unauthorized acts were done by the lessee leading to several allegations of overreaching the terms and conditions of the lease by extensively undertaking cutting of valuable trees outside the leasehold areas. On the verge of expiry of the period of lease, in the year 1996, the lessees sough