IN THE HIGH COURT OF MADRAS
Jackson, J.
Sripada Satyanarayana Sarma
Versus
Ravikanti Venkataramamurthy and Ors.
Decided On : 07.05.1934
Waiver - Forfeiture of Lease - The acceptance of rent by the lessor after default involving forfeiture constitutes waiver, even if the forfeiture was incomplete at the time of acceptance. The lessor's overt act terminating the lease need not be in writing and can be communicated orally. An acceptance by one trustee binds all trustees if the trustee was held out by the co-trustees as having authority to receive payments.
Fact of the Case:
The court ordered the District Judge to submit findings on whether the receipt of rent and the failure to pay instalments amounted to waiver and forfeiture within the terms of the lease agreement.
Finding of the Court:
The court found that the receipt of rent amounted to a waiver of the right of forfeiture and that the failure to pay instalments did not entail forfeiture as it only amounted to a failure to pay for one year within the terms of the lease agreement. The court also held that the acceptance of rent by the lessor after default constituted waiver, even if the forfeiture was incomplete at the time of acceptance.
Issues: The issues involved whether the receipt of rent and the failure to pay instalments amounted to waiver and forfeiture within the terms of the lease agreement.
Ratio Decidendi: The court's decision was based on the finding that the acceptance of rent by the lessor after default constituted waiver, and that the lessor's overt act terminating the lease need not be in writing and can be communicated orally. Additionally, the court held that an acceptance by one trustee binds all trustees if the trustee was held out by the co-trustees as having authority to receive payments.
Final Decision: The appeal was allowed with costs throughout, and the suit was decreed as prayed in the plaint. The trustees were permitted to pay costs out of the estate.
Jackson, J.
1. This appeal coming on for hearing, upon perusing the grounds of appeal, the judgment and decree of the lower Court and the material papers in the suit and upon hearing the arguments of Mr. Y. Suryanarayana, Advocate for the appellant, and of Mr. B. Jagannadha Das Advocate for respondents 1 to 3 and Mr. G. Lakshmanna Advocate for respondent 1 and respondent 5 not appearing in parson or by pleader, it is ordered that the District Judge of Ganjam do within two months from the date of the receipt of this order submit findings on the following issues, namely:
(1) Whether the receipt of rent on 14th December 1926, by defendant 1 as set forth in Ex. I-A amounts to waiver by defendants 1 to 3 of the right of forfeiture within the terms of Ex. A.
(2) Whether the failure to pay instalments due upon 15th Jauuary 1927 and 15th February 1927, amounts to a failure to pay consecutively for three yean within the terms of Ex. A, and entails forfeiture and that the parties be at liberty to adduce fresh evidence thereon and it is further ordered that the parties be at liberty to file objections, if any, to the said finding within 10 days after notice of the receipt of the same shall have been posted up in the notice board of the High Court.
2. In obedience to the above order the District Judge of Ganjam submitted the (following findings:
3. I have been directed by the High Court to submit findings on the following issues:?
(1) Whether the receipt of rent, on 14th December 1926, by defendant 1 as set forth in Ex. 1-A amount to a waiver by defendants 1 to 3 of the right of forfeiture within the terms of Ex. A.
(2) Whether the failure to pay instalments due upon 15th January 1927 and 15th February 1927 amounts to a failure to pay consecutively for three years within the terms of Ex. A and entails forfeiture.
Issue 1. - I find therefore that on issue 1 that the receipt of rent on 14th December 1926, by defendant 1 as set : forth in Ex. I-A amounts to a waiver by defendants 1 to 3 of the right of forfeiture within the terms of Ex. A.
Issue 2. - It is clear that, as the forfeiture incurred by the end of Fasli; 1336 has been waived, no forfeiture can be Incurred until three years after that date. The failure to pay instalmanta duo on 15th January 1927 and 15th February 1927 does not therefore amount to a failure to pay consecutively for three years within the terms of Ex. A. In relation to the question of forfeiture it amounts only to a failure to pay for one year within the terms of Ex. A.
4. My answer to issue 2 is therefore in the negative. This appeal coming on for final hearing after the return of the finding of the lower Court on the issue referred by this Court for trial and respondents I to 4 having filed memorandum of objections to the said finding, the Court delivered the following:)
5. The learned District Judge has now submitted findings on the issues framed by this Court. We see no reason to differ from his finding on issue 1 of waiver and therefore it will be unnecessary to canvass his second finding on the question whether there was actual default. Assuming that there was default nevertheless there was waiver.
6. It is not disputed that an acceptance of rent by the lessor after default involving forfeiture is any the less a waiver because it is conditional George Henry Davenput v. The Queen (1877) 3 AC 115 but it is argued that at the time of the acceptance the forfeiture was incomplete and hence there could be no waiver. To constitute forfeiture there must not only be default but (under the old Transfer of Property Act, Section 11J J some overt act on the part of the lessor terminating the lease. In para. 6 of the written statement of defendants 1 to 3 it is stated even at the time (of the acceptance of rent) the leaeees were informed that owing to their default the Jease was forfeited.
7. Such information need not have been in writing, and was sufficient to constitute forfeiture. Finally it is argued that an acceptance by def
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.