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1926 Supreme(Mad) 389

IN THE HIGH COURT OF MARAS
V Rao
Ramakrishna Martoba Rao Kasbekar
Versus
P. Fernandez And Ors.
Decided On : 16 August, 1926

The Court possesses the power to relieve against forfeiture independently of the Transfer of Property Act and can determine the conditions for relief based on the facts of each particular case.

Headnote:

Forfeiture Relief - Mulgeni Lease - The court granted relief against forfeiture for non-payment of rent in a mulgeni lease, which is outside the purview of the Transfer of Property Act. The court held that it possessed the power to relieve against forfeiture independently of the Act and could determine the conditions for relief based on the facts of each particular case.

Fact of the Case:

The lessees defaulted in payment of rent under a mulgeni lease, leading to forfeiture. The Court of first instance granted relief against forfeiture absolutely, while the Subordinate Judge modified the decree by providing a two-month period for rent payment.

Finding of the Court:

The Court held that the lease, being outside the purview of the Transfer of Property Act, allowed the court to possess the power to relieve against forfeiture independently of the Act and determine the conditions for relief based on the facts of each particular case. The Court found the decision of the lower Court to be correct and dismissed the second appeal with costs.

Issues: Relief against forfeiture in a mulgeni lease, applicability of Section 117 of the Transfer of Property Act, and the power of the Court to relieve against forfeiture independently of the Act.

Ratio Decidendi: The Court held that even if a lease is outside the purview of the Transfer of Property Act, the Court possesses the power to relieve against forfeiture for non-payment of rent on conditions that may appear equitable based on the facts of each particular case.

Final Decision: The second appeal was dismissed, and the decision of the lower Court to grant relief against forfeiture was upheld.

JUDGMENT

Venkatasubba Rao, J.

1. The question to be decided in this second appeal relates to relief against forfeiture. The lease is what is known as a mulgeni lease executed by parties in South Kanara. The lessees have been in possession of the land in question for nearly three quarters of a century. It is not denied that the defendants made default in payment of rent and under the terms of the lease this default entail forfeiture. The Court of first instance relieved against forfeiture absolutely, that is to say, no time was fixed for the payment of the arrears of rent. The learned Subordinate Judge modified the Munsifs decree by providing that the rent shall be paid in two months: thus, although there has been some difference in a matter of detail, both the Courts have granted relief against forfeiture.

2. For the plaintiff-appellant it is contended that the forfeiture cannot be relieved against. The argument is put in this way: Section 117 of the Transfer of Property Act provides that the act does not apply to agricultural leases and it is urged that the present lease which is an agricultural lease is not consequently governed by Section

114. It is, of course, true that Section 114 does not apply but it does not follow that the Court does not possess a power to relieve against forfeiture independently of that section. Where the lease does not come within the purview of the Transfer of Property Act, the Court exercising the power which it possessed even previous to that Act will relieve against forfeiture for non-payment of rent on such conditions as may appear equitable on the facts of each particular case.

3. Another contention has been advanced, viz., that if relief is to be afforded at all, the Court must consider itself bound by the conditions laid down in Section 114. In the present case, the terms on which the lower Court has relieved against forfeiture are not strictly the terms which are laid down in that section. As I have said, the lease in question is outside the purview of the Act; and in the face of Section 117, which specifically says that the Act does not apply to agricultural leases, I fail to see how it can be held that the conditions of Section 114 should be strictly complied with. The learned vakil for the appellant has cited Krishna Shetti v. Gilbert Pinto [1919] 42 Mad. 654 in support of his view. This case, in my opinion, does not touch the question. The point there decided was, whether the Courts possessed jurisdiction to relieve against forfeiture or" leases generally and not merely as regards forfeiture for non-payment of rent. It was held on the analogy of the Transfer of Property Act, that even in respect of agricultural leases, it would not he right to recognise such a general right of relief. The question I have to decide is altogether different and the case has no bearing on the point at issue.

4. I am satisfied that the decision of the lower Court is correct; and as this is the only point taken, the second appeal fails and is accordingly dismissed with costs.

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