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1976 Supreme(Goa) 9

Goa High Court
TITO MENEZES, J. C.
Visvamber Vithol Kanecar and another - Appellant
Versus
The Maharashtra State Road Transport Corporation - Respondents
Second Appeal No. 25 of 1973
Decided On : 9 February 1976

Advocates Appeared:
P. Mulgaokar, for Appellants; M.S. Usgaokar, for Respondents.

Tenants of vacant plots are protected under the Old Act if they are established commercial or industrial concerns carrying on their activity on the vacant plot, even if the premises wherein they function is not permanent.

Headnote:

TENANCY LAW - PROTECTION OF TENANTS - ACT 43525 (OLD ACT) - GOA, DAMAN AND DIU BUILDINGS (LEASE, RENT AND EVICTION) CONTROL ACT, 1968 (NEW ACT) - INTERPRETATION OF ARTICLE 2 OF THE OLD ACT - MEANING OF "ESTABELECIMENTO COMERCIAL OU INDUSTRIAL" - WHETHER TENANTS OF VACANT PLOTS ARE PROTECTED UNDER THE OLD ACT - WHETHER THE NEW ACT SUBSTANTIALLY DIFFERS FROM THE OLD ACT - APPLICABILITY OF THE OLD ACT.

Fact of the Case:

Plaintiffs filed a suit to evict defendants from an open plot of land leased to them for constructing a building. Defendants claimed protection under Decree No. 43525 (Old Act). Trial Court and lower appellate Court dismissed the suit, holding defendants were protected tenants. Plaintiffs appealed, arguing defendants were not protected tenants under the Old Act.

Finding of the Court:

The Court held that the defendants were protected tenants under the Old Act. It interpreted Article 2 of the Old Act, which deals with the protection of tenants of vacant plots, and held that the word "estabelecimento" in the Article does not mean a permanent building or structure, but rather denotes the stability of the activity carried on by the tenant on a vacant plot. The Court found that the defendants, who were an established commercial concern, were carrying on their activity on the vacant plot, and were therefore entitled to the protection of the Old Act.

Issues: 1. Whether the defendants were protected tenants under the Old Act. 2. Whether the New Act substantially differed from the Old Act, and if so, whether the Old Act was applicable.

Ratio Decidendi: 1. The Court interpreted Article 2 of the Old Act and held that the word "estabelecimento" does not mean a permanent building or structure, but rather denotes the stability of the activity carried on by the tenant on a vacant plot. The Court found that the defendants, who were an established commercial concern, were carrying on their activity on the vacant plot, and were therefore entitled to the protection of the Old Act. 2. The Court held that it was not necessary to determine whether the New Act substantially differed from the Old Act, because even if it did, the Old Act would still be applicable in view of the provisions of Section 59 of the New Act.

Final Decision: The Court dismissed the appeal and upheld the findings of the two Courts below that the defendants were protected tenants under the Old Act.

JUDGMENT:- This is a plaintiffs second appeal against the order of the District Judge dismissing his first appeal, by which the present appellants challenged the order of the trial Court dismissing their suit for eviction of the respondents who were the original defendants.

2. The plaintiffs filed a suit to evict the defendants from an open plot of land which they had leased out to the defendants for the construction of a building. In their defence, the respondents claimed protection under the Decree No. 43525 (hereinafter for brevitys sake referred to as the "Old Act"). The trial Court held that the defendants were protected tenants under the Law and dismissed the suit of the plaintiffs. The lower appellate Court concurred with the trial Court. The only point for my determination is whether the defendants are protected tenants under the Law, and whether for that reason they are not liable to be evicted.

3. During the pendency of this proceeding, the "Old Act" which gives protection to building tenants was repealed by the Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968 (hereinafter called the "New Act"). The first question that would ordinarily arise would be as to which of the two Acts, the old or the new, is applicable. To decide this question, it must be found out, in view of the decision of the Supreme Court in V.K. Verma v. Radhey Syam, AIR 1964 SC 1317, whether the "New Act" substantially differs from the "Old Act". This again takes us to the question as to whether or not tenants of vacant plots are protected under the "Old Act" and under the "New Act". It has to be ascertained therefore whether the "Old Act" gives protection to tenants of vacant plots or not. The Article of the "Old Act" which deals with this question is Art.2, which reads as under:-

"Art. 2. Estao sujeitos as disposicoes deste diploma os arrendamentos de predios rusticos que nao se destinem a fins produtivos ou em que funcionem, com assentimento do senhorio, estabelecimentos co-merciais ou industriais, desde que os respectivos contratos revistam a forma externa que por asses motivos lhes coma segundo o artigo 10."

The Article lays down that "predios rusticos" of which term the agreed translation is "vacant land" are covered by the provisions of the "Old Act" when commercial or industrial establishments function thereon. It is the contention of Shri Mulgaonkar, learned advocate for the plaintiffs that the Maharashtra State Road Transport Corporation who are the defendants in this case are not a "estabelecimento comercial ou industrial" within the meaning of Article 2 of the

"Old Act". His contention is that what is meant by the words "estabelecimento comercial ou industrial" is a permanent building or structure lying on the vacant plot wherein a commercial or industrial concern functions. Shri Mulgaonkar argues that the defendants are housed in a temporary shed built on the vacant plot which is the subject-matter of the suit and that therefore there is no "estabelecimento" within the meaning of Art. 2. The contention of Shri Mulgaonkar is that the word "estabelecimento" denotes some permanent occupation of land by means of a building or structure of a lasting nature. I see no reason for equating a commercial or industrial establishment to the building of permanent nature, wherein the establishment functions. The question as to whether the subject-matter of the lease is covered by some protective legislation or not cannot be decided by the length of the lease as is sought to be argued by Shri Mulgaonkar. If the vacant plot comes under the purview of the "Old Act" a tenant of such plot will be protected whether his lease is for one month or a number of years. To my mind, the word "estabelecimento" occurring in Article 2 denotes the stability of the activity carried on by the tenant on a vacant plot and it seems to me that as long as the commercial or industrial activity is carried on a vacant plot by an established commercial or indu



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