HIGH COURT OF ALLAHABAD
S.K. Phaujdar, J.
State of U P - Appellants
Versus
Sudha Devi Bhargava - Respondents
Decided on : Mar 14, 1996
LANDLORD-TENANT - LEASE - ORAL AGREEMENT - VALIDITY - ARTICLE 299 OF THE CONSTITUTION OF INDIA - SECTION 107 OF THE TRANSFER OF PROPERTY ACT - U. P. ACT NO. 13 OF 1972 - APPLICABILITY - SUMMARY: The court held that an oral agreement for a lease of immovable property for a month-to-month basis on payment of monthly rent is valid and does not require a registered agreement. The court also held that Article 299 of the Constitution of India, which requires certain contracts to be executed by the President or Governor, does not apply to oral agreements for lease of immovable property. The court further held that the provisions of the U. P. Act No. 13 of 1972, which regulates the eviction of tenants, would be applicable to such a lease.
Fact of the Case:
The plaintiff, Sudha Devi Bhargawa, filed a suit for eviction and possession of the suit property, alleging that the defendant, the police department, had encroached upon the inner portion of the property and caused substantial damage to it. The defendant claimed that the entire property, including the gate (phatak), was let out to the police department in 1975 and that eviction was not permissible except under the provisions of the U. P. Act No. 13 of 1972.
Finding of the Court:
The trial court found that the tenancy was for the whole of the premises and dismissed the suit. The first appellate court held that the inner portion of the premises was in occupation of the defendants since 1972 and the whole of the premises was known as Phatak of Bhargawas. The first appellate court also held that there was no tenancy created for the inner portion as there was no registered agreement, and accordingly, held the possession of the defendant as one of a licensee and permitted eviction of the defendants in that capacity.
Issues: 1. Whether the first appellate court had rightly interpreted Article 299 of the Constitution and Section 107 of the TP Act? 2. Whether the defendant was a tenant in the suit premises?
Ratio Decidendi: 1. Article 299 of the Constitution of India envisages contracts made in the exercise of executive power of the Union or the State, and if the contract falls in this category then and then only the other requirements of this article would come into play. 2. Section 107 of the T. P. Act indicates how leases are to be made. A lease of immovable property from year to year or for any term exceeding one year, or reserving an yearly rent, can be made only by a registered instrument. All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. 3. In the case under question it was a lease on month to month basis either for the Phatak alone or for the whole of the premises. It is nobody's case that the lease was for any term exceeding one year or there was any reservation of yearly rent. There was, therefore, no necessity of a registered instrument for creation of the lease and an oral agreement accompanied by delivery of possession was sufficient to create the lease.
Final Decision: The appeal was allowed, the judgment and decree of the first appellate court was set aside, and the judgment and decree of the trial court dismissing the suit of the plaintiff was confirmed.
S. K. Phaujdar J.
1. The present appeal is directed against the judgment and decree dated 10-10-1989 passed by the 3rd Additional Civil Judge, Mathura, in Civil Appeal No. 83 of 1988. The first appellate court had reversed a decree of dismissal dated 24-3-1988 passed by the IVth Additional Civil Judge, Mathura in O. S. No. 408 of 1986 and decreed the suit of the plaintiff (appellant before the first appellate court) directing the defendant (police department) to deliver vacant possession of the suit property to the plaintiff. By the appellate court decree there was a direction for recovery of damages also.
2. SMT. Sudha Devi Bhargawa, the present respondent, was the plaintiff before the court of first instance. Her mother-in-law was the owner of the suit property. As stated in the plaint, in 1972 only one phatak (gate) of the suit property was let out to the police department on a monthly rent of Rs. 60/- and there was a stipulation that the plaintiff would have a right to ingress and egress to and from the property in question through this gate (phatak ). The property consisted of a godown, certain rooms and a court-yard the plaintiff got the property on the strength of a will executed by her mother-in-law and, it was alleged, that in 1985 the police personnel had occupied the inner portions of the property (which was not let out to them) and had caused substantial damage to the property to the tune of Rs. 5,000/ -. On a notice to vacate the property, the defendants failed to vacate. Section 80, CPC notice also proved futile and the suit was filed for eviction and possession and for damages. The defendants (the present appellant) came out with a case in their written statement that the whole of the suit property including the gate in question was let out to the police department in the year 1975 and eviction was not permissible except under the provisions of the U. P. Act No. 13 of 1972. The trial court held that the tenancy was for the whole of the premises and there was no damage caused to the property by the defendants and, accordingly, the trial court dismissed the suit. The first appellate court, on an appeal by the plaintiff, engaged itself to see when the suit property was given to the defendants for use and occupation in 1972 or 1975. The first appellate court also lays stress on the question of the status of the defendants as tenant, trespasser or a licensee. The first appellate court was of the view that the entire property was given by the plaintiff to the defendants in 1972 and they were in possession over the entire property since then. It was, however, of the view that there could not have been any lease as, according to it, a lease could only be created by way of a registered document. The first appellate court was also of the view that Article 299 of the Constitution of India required that all contracts made in exercise of executive powers of a State shall be expressed to be made by the Governor of the State. He came to the conclusion that the possession of the defendant on the suit property was that of a licence and the licence could be revoked at any time even by filing of the suit and, accordingly, the appeal was allowed and the suit of the plaintiff was decreed. It is necessary to mention here that the suit was filed not for the whole of the property but for the inner part of the property only, barring the gate (phatak) which was admittedly under a lease.
The appeal was admitted on certain specific questions of law as framed in the grounds of appeal. Those were : (1) If the appellate court erred in law in decreeing an eviction in spite of a concurrent finding that there was no encroachment by the appellant over the property in suit property ; (2) Whether the provisions of the U. P. Act No. 13 of 1972 were applicable to the said premises ; (3) Whether the first appellate court made out a third case deviating from the cases of the parties, and (4) Whether the plaintiff-respondent was estopped in la
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