Enlargement of the scope of the provisions of the statute.

Palaniswamy, J.-The only point that arises for determination in this appeal filed by the defendants (the first defendant being a firm of which the partners are defendants 2 and 3) is whether the suit properties which the appellants took on lease under Exhibit P-1 on 18th October, 1960 are “buildings” within the meaning of the Madras Buildings Lease and Rent Control Act, 1960 (Madras Act XVIII of 1960) (hereinafter referred to as the Act). The suit properties consist of two theatres. One is called Noorjahan Talkies situated in Saidapet and the other is called Janata Talkies situated in Pallavaram. These two theatres originally belonged to one Batcha Sahib, who died on 25th August, 1960, leaving his widow Amina Bi, son Abdul Gaffoor (first plaintiff) and two daughters Noorjahan Begum and Bibi Jan, (Plaintiffs 4 and 5). Batcha Sahib Was using the theatres for exhibiting films and after his death his heirs continued to use them likewise. The defendants obtained a lease of the suit properties from the aforesaid heirs of Batcha Sahib on 18th. October, 1960.. The period of lease was five years with option for the lessees to obtain a renewal for three years. After the death of Amina Bi, disputes arose between the other heirs of Batcha Sahib, which led to the institution of C.S. No. 1 of 1961 on the file of this Court. That suit ended in a compromise decree under which the first plaintiff is given Noorjahan Talkies and plaintiffs 4 and 5 have been given Janata Talkies for their shares. In that suit, the present first plaintiff and the husbands of plaintiffs 4 and 5, who are respectively plaintiffs 3 and 2 in this suit, were appointed joint Receivers. Alleging that the period of lease had expired and that in spite of notice demanding possession, the defendants were continuing in possession and were refusing to surrender possession, the plaintiffs laid the suit for possession and other reliefs. The defendants contended inter alia that the lease was in respect of a building within the meaning of the Act and that even though the period of lease had expired, they were not liable to be evicted. That was the substantial defence which the trial Court was called upon to decide. The trial Judge found that the transaction between the parties was a lease in respect of going concerns of the cinema theatres and was not in respect of buildings and that, as such, the plaintiffs were entitled to a decree for possession. In that view, the trial Judge granted a decree for possession with a further direction for determination of the quantum of damages for use and occupation from the date of the termination of the lease in a separate application. Hence this appeal.

2. Mr. Venkataramani, appearing for the appellants, contended that the view of the trial Judge that the lease was not in respect of buildings but was in respect of going concerns is not warranted by the terms of the lease deed, that the lease was in respect of properties which have been described as premises with machineries, fittings, fixtures, etc., and that, as such, the lease is in respect of buildings within the meaning of the Act. His further argument was that the reference in the lease deed to projectors, amplifiers and other cinema equipments does not make the lease anytheless a lease of the building, that those items, though specifically described in the lease deed, are mere fittings and fixtures which form part of the buildings and that, therefore, the lease was only in respect of buildings. This argument did not find favour with the trial judge, who, on a consideration of the terms of the lease deed, held that the lease was in respect of a going concern. In coming to that conclusion, the trial Judge relied on the decision of a Bench of this Court in Raju Chetty v. Jaganathadas Gobindas1, in which it was held that a lease of a talkie house with everything that is necessary to run cinema shows would not be a lease in respect of a building. Mr. Venkataramani appearing for the appellants,

Click Here to Read the rest of this document