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1996 Supreme(MP) 768

T.S. Doabia, J.
Vimal Chand S/O Ramswaroop
vs
Nirmal Chandra S/O Babooram
DECIDED ON : 30 August, 1996

A tenant who becomes a mortgagee does not surrender his tenancy rights on redemption of the mortgage.

Headnote:

TENANCY - MORTGAGEE RIGHTS - REDEMPTION - STATUS AS TENANT - M. P. ACCOMMODATION CONTROL ACT, 1961 - SECTION 12(1) - TRANSFER OF PROPERTY ACT, 1882 - SECTION 83 - SURRENDER OF LEASE - INTENTION OF PARTIES - IMPLIED SURRENDER - MERGER OF RIGHTS - POSSESSION - REDEMPTION OF MORTGAGE - REVIVAL OF TENANCY RIGHTS.

Fact of the Case:

The petitioner, a tenant, became a mortgagee under a mortgage deed. The mortgage was redeemed after ten years. The landlord filed an application under section 83 of the Transfer of Property Act, 1882, seeking possession of the shop on the ground that the petitioner had surrendered his tenancy rights when he became a mortgagee.

Finding of the Court:

The court held that the petitioner did not surrender his tenancy rights when he became a mortgagee. The court further held that the landlord could not seek possession of the shop under section 83 of the Transfer of Property Act, 1882, as the provisions of section 12(1) of the M. P. Accommodation Control Act, 1961, barred such a suit.

Issues: 1. Whether the petitioner surrendered his tenancy rights when he became a mortgagee? 2. Whether the landlord could seek possession of the shop under section 83 of the Transfer of Property Act, 1882?

Ratio Decidendi: 1. The court held that there was no express or implied condition in the mortgage deed that the petitioner would surrender his tenancy rights on redemption of the mortgage. 2. The court held that the provisions of section 12(1) of the M. P. Accommodation Control Act, 1961, barred the landlord from seeking possession of the shop under section 83 of the Transfer of Property Act, 1882.

Final Decision: The court allowed the revision petition and set aside the order passed by the court below.

ORDER

T.S. Doabia, J.

1. The short question which arises for determination in this Revision Petition is as to whether a tenant acquiring mortgagee rights would cease to have the status of tenant when mortgage is redeemed. The brief facts for the purpose of disposal of this petition be noticed :

The present petitioner was admittedly a tenant on shop in dispute. He became a mortgagee under a mortgage deed dated 19th April, 1973. The relevant conditions on which reliance is being placed are conditions Nos. 1, 2, 3, 4. The purport of these conditions are as under :

(i) Condition No. 1 of the mortgage deed lays down that the interest of mortgage amount and the rent of shop would be equal.

(ii) The period of mortgage as per condition No. 2 has been ascertained as ten years. Before the expiry of the period of ten years, the mortgagor had no right to get the shop redeemed and at the same time the mortgagee was also not to have a right to get back the refund of his money.

(iii) One month's notice was required to be given to the mortgagee before getting the shop in dispute redeemed after the expiry of ten years.

(iv) Condition No. 4 is relevant and its English rendering is as under :

"After the expiry of the period of ten years when I get the shop redeemed, I would use it for my own purpose for at least three years. After getting it redeemed, I would neither give it on rent nor keep any partner with me. In case it is given to someone on rent, the mortgagee shall have right to take back possession of the shop in his capacity as a tenant."

2. These conditions merely specify that:

(i) interest would be equal to rent,

(ii) mortgagor cannot get the mortgage redeemed before the expiry of period of ten years,

(iii) after the period of ten years and before getting the mortgage redeemed, notice of one month would have to be given,

(iv) after ten years when the shop is got redeemed then the premises would be used for personal use by the mortgagor and in case there is breach of this condition then the mortgagor would be entitled to regain possession as tenant.

It be seen that in spite of a clever attempt and astute drafting in laying down the conditions there is no stipulation that on redemption the mortgagee would lose his status as tenant. As a matter of fact the requirement is merely to give one month's notice. For what purpose this notice was to be given remains unspecified. Before further dealing with this aspect of the matter the legal position be also noticed. The law is well settled that if a tenant is already in possession and he becomes a mortgagee of that property and if that mortgage is redeemed then, he would reacquire the status of tenant.

3. The learned counsel for the respondent however submits that the above settled position would not be attracted to this case on account of condition No. 4 referred to above. It is argued that if a tenant agrees to certain terms and conditions and that agreement is to the effect that he would surrender the possession in terms of mortgage deed then the above settled principle of law would not be attracted.

4. It is not in dispute that the premises are located at a place where the provisions of M. P. Accommodation Control Act, 1961 are applicable. The landlord is entitled to have possession only in terms of the provisions contained in the aforementioned Act. Section 12(1) is specific. It reads as under:

"12(1) Restriction on eviction of tenants. - (1) Notwithstanding anything to the contrary contained in any other law or contract, no suit shall be filed in any Civil Court against a tenant for his eviction from any accommodation except on one or more of the following grounds only."

The argument raised by the petitioner is that a contract to the contrary would not enable a landlord to seek possession under condition No. 4 on account of the bar created under section 12(1) of the 1961 Act.

5. The learned counsel for the respondent however submits that the proceedings which he has taken are not in the nature of the suit, b






















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