HIGH COURT OF NAGPUR
Stone
KASHIPRASAD SUKHIRAM – Appellant
Versus
BEDPRASAD PARMESHWAR – Respondent
Decided on : 24-08-1939
surrender - Central Provinces Tenancy Act - Section 89, Section 35 - The court discussed the validity of surrender of an occupancy holding without a registered instrument under Section 89 of the Central Provinces Tenancy Act, 1920. The court interpreted the requirement of a registered document for a valid surrender and emphasized that all surrenders, including re-leases, require registration.
Fact of the Case:
The court addressed the validity of surrender of an occupancy holding without a registered instrument under Section 89 of the Central Provinces Tenancy Act, 1920.
Finding of the Court:
The court found that all surrenders, including re-leases, require registration under the Central Provinces Tenancy Act.
Issues: The main issue was whether a valid surrender of an occupancy holding could occur without a registered instrument when both the landlord and the tenant are in agreement.
Ratio Decidendi: The court emphasized that all surrenders, including re-leases, require registration under Section 89 of the Central Provinces Tenancy Act, and the substance of the transaction must be considered.
Final Decision: The appeal was dismissed with costs.
Stone, C J—In the course of this second appeal which is for hearing before my learned brother (Bose J.) he felt a difficulty in disposing of one matter that arises in the appeal in consequence of a decision reported in Mooratsingh v. Munilal, 1927 AIR(Nag) 320 with which he was in disagreement and has accordingly referred to this Bench the following question:
Can there be a valid surrender of an absolute occupancy or an occupancy holding without a registered instrument when the landlord and the tenant are both agreed ?
2. The question raises a point of construction under Section 89, Central Provinces Tenancy Act, 1920. That Section contains two subsections. The first is dealing with the case where an absolute occupancy tenant or occupancy tenant can compel his landlord to take a surrender of his tenancy. Various circumstances have to exist and if they exist, then a tenant can compel his landlord to take a surrender '' by delivering...a registered document executed in favour of the landlord.'' The second sub-section is in the following terms: ''No surrender shall be valid unless effected by a registered document.'' The argument before us started by saying that those provisions do not prevent surrenders which are oral or agreements which determine a tenancy by any means other than by way of surrender even though there be no registered document. That argument proceeds very largely along the lines (1) that Section 89(2) should read '' No such surrender...etc.'' and (2) that Section 35 indicates a case where a tenancy may be determined otherwise than by surrender.
3. We are here concerned, however, with the question put and we are accordingly concerned with surrenders. It may well be that a tenant can abandon his tenancy so as to attract statutory provisions relating to forfeiture without in any way raising questions of surrender. But when one comes to think of any possible agreement there might be between landlord and tenant which results in the tenancy being returned or yielded up by the tenant to the landlord, one finds it very difficult to imagine a case which does not result in there being a surrender. As Coke upon Littleton (337-b) observes:
Surrender...properly is a yielding up an estate for life or yeares to him that hath an immediate estate in reversion or remainder wherein the estate for life or yeares may drowne by mutuall agreement between them.
4. In my opinion what the Tenancy Act is talking about in Section 89(2) is any kind of surrender whatsoever. It is not dealing with the particular type of surrender which Section 89(1) is concerned with, for if that were so, Section 89(2) is tautologous. Section 89(1) makes it necessary for the service of a registered document in order to effect that particular kind of surrender and if in order to effect that particular kind of surrender a registered document has to be served, it would be quite idle subsequently to provide that that particular kind of surrender has to be by a registered document. Section 89(1) is dealing with a particular case; Section 89(2) is dealing with the general case. Formerly it was held that the various requirements of the Transfer of Property Act and the Registration Act did not apply to surrenders because a surrender by a tenant to a landlord was not a transfer and that consequently such surrenders did not require to be by a registered deed. This resulted in a good deal of confusion and, as a consequence, in my opinion Section 89(2) was introduced. That subsection requires that surrenders, like assignments of leases, be effected by a registered document. Mr. Deo has argued that many leases of small value need not be in writing and accordingly no question of registration arises. That is very true, but the Tenancy Act provides that a surrender must be by writing and that writing must be registered. The words in the Section are, in my opinion, plain. It is true that Sir Robert Macnair, then A.J.C, uses words in his judgment reported in Mooratsingh v.
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