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1964 Supreme(All) 144

Allahbad High Court
S.S.DHAVAN
Kundan Lal - Appellant
Versus
Shamshad Ahmad - Respondent
Decided On : 08/25/1964

Advocates:
Shanti Swamp Bhatnagar, for Appellant; S.B.I., Gaur and K.B.L. Gaur, for Opposite Party.

Headnote:

Tenant's Rights - Lease Destruction - The court held that the tenant's failure to exercise the option to void the lease under S. 108(e) of the Transfer of Property Act meant that the lease continued, and the landlord was entitled to claim rent despite the destruction of the leased property. The court emphasized that the tenant's remedy was to declare the lease void under S. 108(e) and that the destruction of the building did not entitle the tenant to withhold rent from the landlord.

Fact of the Case:

The tenant's shop was partially and then totally demolished by the Municipal Board, depriving the tenant of its use. The landlords filed a suit for ejection of the tenant and arrears of rent for the period of demolition. The trial court initially allowed a reduction in rent, but the Civil Judge on appeal decreed the landlords' claim for rent.

Finding of the Court:

The court found that the tenant's failure to exercise the option to void the lease under S. 108(e) of the Transfer of Property Act meant that the lease continued, and the landlord was entitled to claim rent despite the destruction of the leased property. The court dismissed the tenant's appeal with costs.

Issues: The issues involved the tenant's right to claim a reduction or suspension of rent after the destruction of the leased property and the interpretation of S. 108(e) of the Transfer of Property Act.

Ratio Decidendi: The court held that under S. 108(e) of the Transfer of Property Act, the tenant's failure to exercise the option to void the lease meant that the lease continued, and the landlord was entitled to claim rent despite the destruction of the leased property. The court emphasized that the tenant's remedy was to declare the lease void under S. 108(e) and that the destruction of the building did not entitle the tenant to withhold rent from the landlord.

Final Decision: The court dismissed the tenant's appeal with costs.

JUDGMENT : This is a tenant's second appeal from the decree of the Civil Judge, Meerut, allowing the landlords' claim for arrears of rent at a rate higher than that allowed by the trial Court. The appellant Dr. Kundan Lal was a tenant of a shop of which Shamshad Ahmad and others were the landlords. It is common ground that a portion of the shop was demolished by the Municipal Board in September 1956 and the rest of it demolished in September 1958, with the result that between September 1956 and September 1958 the tenant was deprived of the use of a portion of the shop and after September 1958 totally deprived. It is also common ground that he did not exercise his option under S. 108(e) of Transfer of Property Act of treating the lease as void after the shop had been demolished.

2. The landlords filed a suit for the ejection of the appellant and for arrears of rent and claimed the rent also for the period when the shop had been partially and later totally demolished. The appellant resisted the suit for ejectment as well as arrears of rent and contended that no rent was due from him after the shop had been completely demolished by the Municipal Board. He also claimed a proportionate reduction of the rent during the period when the shop stood half demolished. During the trial the appellant made a statement before the Court that he was no longer in possession and the landlord did not press for ejectment. As regards rent, the trial Court held that the appellant was entitled to a proportionate reduction after partial demolition and a total suspension of the rent after the complete demolition of the shop. Accordingly it reduced the claim for rent to Rs. 46-5-0. On appeal by the landlords the learned Civil Judge took the view that the appellant not having exercised his option to void the lease under S. 108(e) of the Transfer of Property Act could not claim any reduction or suspension of rent. Accordingly he allowed the appeal in part and decreed the landlords' claim for rent to Rs. 255. The tenant has now come to this Court in second appeal.

3. Learned counsel for the appellant argued that a tenant must be deemed to have been ousted whenever the accommodation is totally destroyed. I cannot agree. No authority was cited by learned counsel in support of his contention. If the total destruction or demolition of an accommodation automatically results in the ouster of the tenant, there was no need for enacting Cl. (e) of S. 108 of the Transfer of Property Act. It runs thus :

"(e) If by fire, tempest or flood, or violence of an army or of a mob or other irresistible force, any material part of the property be wholly destroyed or rendered substantially and permanently unfit for the purposes for which it was let, the lease shall, at the option of the dessee, be void."

This clause is based on the principle of frustration of contract, and was enacted to safeguard the rights of the tenant in case of the total destruction of the property leased to him. It gives him the right to escape his liability as a tenant by declaring the lease void. It follows that if the tenant does not exercise the option under Cl. (e) that is, does not invoke the doctrine of frustration the lease shall continue for the benefit of both the parties. There appears to be no other provision under the Transfer of Property Act and none was cited at the bar-providing for a reduction of rent in case of partial destruction of the leased property or for total suspension in case of its complete destruction. The position tinder the English law is the same.

"The destruction of the premises by fire does not, in the absence of express stipulation, suspend the liability of the tenant to pay rent, and even though the landlord has received the money and refuses to rebuild the rent continues to be payable throughout the residue of the term".

Halsbury's Laws of England, 3rd Edition. Volume 23, Landlord and Tenant, p. 553. Then again,

"Unless the lease contains express provision to the contrary, and



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