High Court Of Madhya Pradesh
N. P. SINGH
MEENAKSHI JAIN - Appellant
Versus
STATE OF MADHYA PRADESH - Respondents
FIRST APPEAL 77 Of 1985
Decided On : 04/25/1997
LEASE - FORFEITURE - NOTICE - REQUIREMENT - TRANSFER OF PROPERTY ACT, 1882, SECTION 111(G) - FORFEITURE OF LEASE WITHOUT NOTICE IS INVALID.
Fact of the Case:
The plaintiff, Rana Kunjar Shamsher Jang Bahadur, filed a civil suit for declaration that the lease of Nazul Plot No. 7, Block No. 57 situated in Civil Lines, Sagar, initially created by lease dated 30-9-1905, was still subsisting and operative and the same has not come to an end on 1-4-1959 and on any other date. The forfeiture of the lease and demanding the plaintiff to take a fresh lease of plot No. 7/1 shown in the red lines in the map of Nazul Officer, dated 4-12-1963, on payment of premium and fresh enhanced assessment of rent, was unwarranted and illegal as also for recovery of possession, of Plot No. 7/1 and Plot No. 7/2, shown in the map of Nazul Officer attached with the plaint, by ejecting defendants.
Finding of the Court:
The court held that the order of forfeiture cancelling the lease was passed without any notice to the lessee and that the alleged ground, which was made the basis for forfeiture of the lease by the defendant-State had no factual base. The court further held that even where the leasehold provides for forfeiture, in case of assignment by the lessee, there can be no forfeiture and automatic resumption by the lessor without notice to the lessee determining lease. The breach of condition of the lease only makes the lease voidable. Therefore, forfeiture is not complete unless and until the lessor gives a notice to the lessee that he wish to exercise his option to determine the lease.
Issues: Whether the forfeiture of the lease without notice is valid.
Ratio Decidendi: The court relied on Section 111(g) of the Transfer of Property Act, 1882, which provides that a lease of immovable property can be determined only by the modes provided in sub-sections (a) to (h) of Section 111. Sub-section (g) of Section 111 empowers the lessor to determine the lease by forfeiture in case of breach of express condition of the lease by the lessee. The court held that forfeiture of lease can be made only by giving a notice in writing by the lessor to the lessee of his intention to determine the lease.
Final Decision: The court set aside the judgment and decree under appeal, allowed the appeal, and decreed the suit with costs.
( 1 ) THIS appeal by the plaintiff (now in appeal substituted by his daughter Smt. Meenakshi Jain) is directed against the dismissal of Civil Suit No. 2-A of 1980 by the Additional District Judge, Sagar dated 7-6-1985.
( 2 ) FACTS necessary for disposal of this appeal are thus :plaintiff, Rana Kunjar Shamsher Jang Bahadur, filed the instant civil suit, for declaration that, the lease of Nazul Plot No. 7, Block No. 57 situated in Civil Lines, Sagar, initially created by lease dated 30-9-1905, was still subsisting and operative and the same has not come to an end on 1-4-1959 and on any other date. The forfeiture of the lease and demanding the plaintiff to take a fresh lease of plot No. 7/1 shown in the red lines in the map of Nazul Officer, dated 4-12-1963, on payment of premium and fresh enhanced assessment of rent, was unwarranted and illegal as also for recovery of possession, of Plot No. 7/1 and Plot No. 7/2, shown in the map of Nazul Officer attached with the plaint, by ejecting defendants.
( 3 ) THE case of the plaintiff in short was that late Raj Kumar Devi Jang Bahadur, a Nepali citizen migrated from Nepal, was the original lessee of the suit land vide lease deed dated 30-8-1905 executed by the State in his favour in respect of Nazul Plot No. 7, Block No. 57 having an area of 4,22,253 sq. ft. equivalent to 9. 58 acres with standing bunglow and out-houses, for a period of 30 years on payment of annual rent of Rs. 50. 6. 4 Pai with a covenent of renewal till the period of 90 years, at the option of the lessee. Rajkumar Devi Jang Bahadur/the lessee sold the bunglow with its premises to his father-in-law, General Prince Rana Khadag Shamsher Jang Bahadur, by a registered sale-deed dated 27-2-1907 and put the vendee in possession thereof. The vendee subsequently died in the year 1922 leaving behind his widow and sons, to succeed to his estate and the suit land. There was inter se exchange of shares between the plaintiff and his brothers and their mother by registered deeds and eventually the plaintiff became the exclusive owner of the suit land and his name was mutated in the revenue records and he continued to be the excluvie lessee acquiring all the rights and obligations of a lessee. In the year 1922-23 settlement of the various lands including the suit land was made by the Revenue Authority. By this settlement the period of lease was extended up to 30-6-1952 later by notification dated 25-11-1957 all the lease of the suit land were renewed up to 31-3-1959. On 17-1-1962 the plaintiff went to deposit the arrears of rent, but the concerned authorities refused to accept the rent saying that as per Government orders the rent cannot be accepted. The plaintiff then made an enquiry as to the reasons for non-acceptance of the rent then he learnt that the State Government had cancelled and forfeited the lease by order dated 6-2-1962 on the ground of non-payment of the rent and breach of condition of the lease, for having transferred portion of the land of the leasehold property to third person. The order of cancellation gave rise to the instant civil suit, which was dismissed which has given rise to this appeal.
( 4 ) THE defendant/state filed the written statement supporting the action in forfeiting the lease and it was categorically stated that in cases of contractual obligations and breaches thereof, law does not require any hearing to be given to the other party. It was pleaded that the action of forfeiture was taken on perusal of various documents and files which according to the defendant/state, justified cancellation of the lease deed.
( 5 ) THE trial Court dismissed the suit. As against that the plaintiff preferred this appeal. During the pendency of the appeal the plaintiff died leaving behind the appellant (his daughter) to succeed the right to prosecute this appeal. This Court allowed the application for substitution of the name of the present appellant in place of the deceased plaintiff/appellant and accor
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