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1995 Supreme(MP) 582

T.S. Doabia
Khem Singh Dayal Singh Rawat
vs
Nagar Palika Parishad
Decided on : 3 July, 1995

Section 114 of the Transfer of Property Act, 1882 applies only to cases of forfeiture of tenancy, where the lease deed contains an express term allowing the lessor to re-enter upon breach of the covenant to pay rent. In cases of termination of tenancy by notice, Section 114 is not applicable.

Headnote:

TRANSFER OF PROPERTY ACT, 1882 - SECTION 114 - FORFEITURE OF TENANCY - DISTINCTION BETWEEN FORFEITURE AND TERMINATION OF TENANCY - SECTION 114 NOT APPLICABLE TO TERMINATION OF TENANCY BY NOTICE UNDER SECTION 106.

Fact of the Case:

Two tenants appealed against eviction decrees passed against them for non-payment of rent. They argued that they were entitled to continue in possession since they had deposited the rent up to date and sought protection under Section 114 of the Transfer of Property Act, 1882.

Finding of the Court:

The court distinguished between forfeiture of tenancy and termination of tenancy by notice under Section 106 of the Act. It held that Section 114 applies only to cases of forfeiture, where the lease deed contains an express term allowing the lessor to re-enter upon breach of the covenant to pay rent. In cases of termination of tenancy by notice, Section 114 is not applicable.

Issues: Whether Section 114 of the Transfer of Property Act, 1882 applies to termination of tenancy by notice under Section 106 of the Act.

Ratio Decidendi: The court held that Section 114 applies only to cases of forfeiture of tenancy, where the lease deed contains an express term allowing the lessor to re-enter upon breach of the covenant to pay rent. In cases of termination of tenancy by notice, Section 114 is not applicable.

Final Decision: The appeals were dismissed, and the eviction decrees were upheld.

JUDGMENT

T.S. Doabia, J.

1. This judgment shall dispose of two second appeals, namely, 95/94 (Khem Singh v. Nagar Palika Parishad, Shivpuri) and 142/94 (Jugal Kishore Pateria v. Shri Parshvnath Digamber Jain, Purana Mandir Trust, Chanderi). Both these appeals have been preferred by the tenants. A decree of eviction has been passed in both the cases. Brief facts in second appeal No. 142/94 be noticed first :-

2. The landlord institution by the name of Shri Parshvnath Digamber Jain Purana Mandir Trust, Chanderi filed a suit for eviction against the present appellant. It was based on the ground that the appellant/tenant was a habitual defaulter in the matter of payment of rent. Notice Ex.P/3 was served upon him. This notice has been issued under Section 106 of the Transfer of Property Act, 1882 (hereinafter referred to as the Act').

3. Appellant took a plea that appellant's father was the tenant and, after his death, he is to be treated as a tenant. It was urged that the provisions of M.P. Accommodation Control Act are attracted to the facts of this case. It was also pleaded that on the deposit of entire rent, the ground of eviction based on non-payment of rent would cease to be there. Both the Courts found no merit in the contentions of the appellant and the suit was decreed and appeal was dismissed.

4. In second appeal No. 95/94 (Khem Singh v. Nagar Palika Parishad, Shivpuri), the appellant was a tenant under Nagar Palika Parishad, Shivpuri. The premises in question are said to be non-residential. There was failure to pay rent. Notice under Section 106 of the Act was issued. In this notice, it was mentioned that the defendant/appellant has not paid rent. As there was failure to pay the rent, the suit was filed. Before filing of the suit as noticed above notice under Section 106 of the Act was also served.

5. The only argument which has been advanced by the appellants in both the cases is that up to date rent having been deposited the appellants are entitled to continue in possession and decree for eviction should be reversed. The appellants seek protection of Section 114 of the Act. It is stated that the appellants are ready to pay whatever rent has occurred along with interest and costs in this Court. As both the appeals hinge on the interpretation of Section 114 of the Act, this may be noticed. This section reads as under :-

"114. Where a lease of immovable property has determined by forfeiture for non-payment of rent and the lessor sues to eject the lessee, if, at the hearing of the suit, the lessee pays or tenders to the lessor the rent in arrear, together with interest thereon and his full costs of the suit or gives such security as the Court thinks sufficient for making such payment within fifteen days, the Court may, in lieu of making a decree for ejectment pass an order relieving the lessee against the forfeiture, and thereupon the lessee shall hold the property leased as if the forfeiture had not occurred."

6. It may be seen that there is subtle distinction between the liability of the tenant for eviction based on the ground of forfeiture of tenancy and his liability for eviction on the ground of termination of tenancy when this brought to an end by serving a notice under the Act. Such distinction was noticed by the Bombay High Court in case of Geetabai v. Manjrekar, AIR 1984 Bom. 400. It would be apt to quote what Sharad Manohar, J., observed in this case :-

"...The law relating to determination of tenancy is incorporated in Section 111 of the Transfer of Property Act. There are various reasons for determining the tenancy and there exists various modes by which the tenancy comes to an end. If the tenancy is to come to an end by virtue of the principle of forfeiture, what is required under the law is that the tenancy should be for a particular period and the lease deed must contain a clause of forfeiture on the ground of breach of certain conditions of the tenancy. If the breach is committed, the tenancy becomes liable for forf






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