Allahbad High Court
K.N.SINGH
Pooran Chand Seth - Appellant
Versus
Prabhat Kunwar - Respondent
Decided On : 09/12/1978
SMALL CAUSE COURTS ACT - JURISDICTION - BUILDING - LEASE - CINEMA BUSINESS - FITTINGS AND FIXTURES - DOMINANT INTENTION OF PARTIES - SUMMARY SUIT - SUMMARY PROCEDURE - REVISION - JURISDICTIONAL FACTS - FINDINGS OF FACT - REVIEW - SCOPE OF REVISION - U.P. CIVIL LAWS AMENDMENT ACT, 1972 (U.P. ACT XXXVII OF 1972) - S.25 - PROVINCIAL SMALL CAUSE COURTS ACT, 1887 (ACT IX OF 1887) - S.15, SCH.II, ART.4 - U.P. CINEMATOGRAPH ACT, 1965 - S.3(A)(Y)(3) - M.P. ACCOMMODATION CONTROL ACT, 1955 - S.2(AA) - U.P. TEMPORARY CONTROL OF RENT AND EVICTION ACT, 1947 - S.2(A) - SUMMARY SUIT - SUMMARY PROCEDURE - REVISION - JURISDICTIONAL FACTS - FINDINGS OF FACT - REVIEW - SCOPE OF REVISION - U.P. CIVIL LAWS AMENDMENT ACT, 1972 (U.P. ACT XXXVII OF 1972) - S.25 - PROVINCIAL SMALL CAUSE COURTS ACT, 1887 (ACT IX OF 1887) - S.15, SCH.II, ART.4 - U.P. CINEMATOGRAPH ACT, 1965 - S.3(A)(Y)(3) - M.P. ACCOMMODATION CONTROL ACT, 1955 - S.2(AA) - U.P. TEMPORARY CONTROL OF RENT AND EVICTION ACT, 1947 - S.2(A).
Fact of the Case:
Plaintiff filed a suit in the court of the Judge, Small Causes, Muzaffarnagar, for recovery of arrears of rent and ejectment from the cinema building known as "Taj Talkies", Muzaffarnagar, along with the electrical installations, refrigeration equipment, furniture, cooler engine, and various other fittings and fixtures mentioned in the schedule to the plaint. The defendant contested the suit on the ground that he was a licensee, not a tenant, and that the court lacked jurisdiction to try the suit because the valuation exceeded Rs. 81,000/-. The trial court rejected the defendant's objections and held that it had jurisdiction to try the suit.
Finding of the Court:
The court held that the lease in question was not in respect of a building as defined in the Explanation to Art.4 of the second schedule to the Small Cause Courts Act. Consequently, the Judge Small Cause Court, had no jurisdiction to take cognizance of the plaintiff's suit.
Issues: 1. Whether the defendant was a lessee in the premises in suit? 2. Whether the court had jurisdiction to try the suit?
Ratio Decidendi: 1. The court applied the principles laid down by the Supreme Court in Uttam Chand and Dwarka Prasad's cases (AIR) 1965 SC 716 and AIR 1975 SC 1758) (supra) in determining the questions raised before it. 2. The court held that the dominant intention of the parties when they entered into the transaction was to let out the cinema license and the machineries and fixtures necessary to carry on the business of cinema in the building in question. The primary object which the lease was intended to cover was the cinema business including the machineries and accessories necessary for the said purpose and the building in which the machineries and fixtures were located was incidental to the primary purpose.
Final Decision: The revision petition was allowed, the order of the Judge, Small Cause Court, dated 24th March, 1975, was set aside, and the plaintiff's suit was dismissed with costs.
2. The plaintiff-opposite party filed a suit in the court of the Judge, Small Causes, Muzaffarnagar, for recovery of arrears of rent and ejectment from the cinema building known as "Taj Talkies", Muzaffarnagar, along with the electrical installations, refrigeration equipment, furniture, cooler engine and various other fittings and fixtures mentioned in the schedule to the plaint. The plaint allegations were that the plaintiff was owner of the cinema building which was constructed in the year 1971-72, and the same was let out to the defendant on rent at the rate of Rs. 4500/- per month, but subsequently the rent was reduced to Rs. 4000/- per mensem.
The plaintiff pleaded that the defendant has been in possession of the cinema since 7th July, 1972, but he failed to pay rent for a period of more than three months, thereby he committed breach of terms agreed between the parties. The plaintiff claimed decree for ejectment and also for recovery of a sum of Rs. 29000/- as rent and damages and future damages at the rate of Rs. 4000/- with interest at the rate of 12 per cent per month with effect from 7-8-1974 till the date of delivery of possession. In addition to possession of the cinema building the plaintiff claimed possession of goods including furniture, electrical goods, coolers, fixture, equipment, machinery and screen as mentioned in the schedule to the plaint.
3. The defendant contested the suit on a number of grounds. In his written statement, the defendant asserted that he was a licensee, therefore the suit was not maintainable in the court of the Judge, Small Causes. In the alternative, the defendant further pleaded that even if he was a tenant of the building, the suit in respect of the cinema business which was let out to him was not maintainable in the Court of the Judge, Small Causes, and lastly, the defendant challenged the jurisdiction of the Judge, Small Causes Court to try the suit on the ground that the valuation of the suit was Rs. 81,000/-. The Court below framed two issues (1) whether the defendant was lessee in the premises in suit and (2) whether the court had jurisdiction to try the suit. The Additional District Judge who was exercising the powers of the Judge, Small Causes Court, answered both the issues against the defendant. He held that relationship of landlord and tenant existed between the parties as the defendant has been paying rent to the plaintiff at the rate of Rs. 4000/- per month treating him as landlord.
He rejected defendants contention that he was a licensee. The trial court further held that in view of S.25 of the Bengal, Assam and Agra Civil Courts Act, as amended by U.P. Civil Laws Amendment Act, 1972, an Additional District Judge, while exercising powers of the Judge, Small Causes Court, had unlimited jurisdiction to try suits for ejectment and arrears of rent. The trial court rejected defendants objection that it had no jurisdiction to try the suit as the plaintiff had not let out building as defined under the said Explanation to Art.4 of the Second Sch. to the Provincial Small Cause Courts Act as along with the building, furniture, fixture and electrical installations and machinery was also let out to the defendant. Thereupon the defendant preferred this revision challenging the order of the Additional District Judge.
4. Learned counsel for the defendant has urged that the Additional District Judges finding that the plaintiff had let out only building and not the running cinema business are not in accordance to law. He urged that along with the building the plaintiff had let out machineries and other fittings necessary for running cinema business. The defendants tenancy was not in respect of a building as define
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