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2026 Supreme(Guj) 1230

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M.K. THAKKER, J.
Somabhai Hirabhai Nai - Appellant
Versus
Bhavinkumar Devshankar Dixit - Defendant
R/First Appeal No. 454 of 2026 With Civil Application (For Stay) No. 1 of 2026
Decided On : 06-04-2026

Advocates Appeared:
For the Appellant : Mr. M.I. Merchant.
For the Defendant : Mr. Prabhakar Upadyay.

A landlord possesses an absolute statutory right to terminate a month-to-month tenancy by serving a 15-day notice, even in the absence of rent defaults or breaches of lease terms, regardless of whether the underlying tenancy agreement is unregistered.

Headnote:(A) Transfer of Property Act, 1882 - Sections 106 and 107 - Civil Procedure Code, 1908 - Section 96 - Eviction - Monthly tenancy - Unregistered lease - Determination of tenancy - Whether lessor can terminate tenancy by notice in absence of default - Held, yes - Right of lessor under Section 106 to terminate monthly tenancy by 15 days’ notice is absolute - Statutory right cannot be restricted by contract terms not in harmony with law - Non-registration of instrument does not preclude determination of factum of tenancy based on conduct. (Paras 6, 9.1)

(B) Appeal - Scope and ambit - Appellate court is to see that the decision is not afflicted by perversity or illegality - An order is not to be interfered with simply because another view is possible. (Para 9.1)

Facts of the case:
The dispute involves a request for recovery of possession of a commercial property by a landlord against a tenant. Initially, the tenant sought an injunction against the landlord. Subsequently, the landlord filed a suit for eviction and recovery of possession. The trial court decreed the suit, directing the tenant to hand over vacant and peaceful possession and pay monthly rent.

Findings of Court:
The court concluded that the eviction notice served was valid. It rejected the argument that a breach of tenancy terms was a prerequisite for termination, confirming that for a monthly tenancy, a 15-day notice is sufficient in accordance with statutory provisions.

Issues: The primary issue was whether a lessor has the right to terminate a monthly tenancy through legal notice in the absence of any default in rent payment or breach of lease conditions.

Ratio Decidendi: The right to terminate a month-to-month tenancy under the governing property law is absolute. Even if a rental agreement is unregistered, the court can determine the existence of a monthly tenancy based on the conduct of parties, and such a tenancy may be terminated by the lessor providing the legally prescribed period of notice, independent of any specific default by the lessee.

Result: Appeal dismissed; judgment confirmed.

Table of Content
1. establishing the factual matrix and validity of the rent agreement. (Para 1 , 2 , 8)
2. parties' contentions regarding breach of contract versus statutory termination rights. (Para 3 , 4 , 5)
3. section 106 of the tp act permits termination of monthly tenancy via notice regardless of breach. (Para 6 , 7 , 9)
4. final dismissal of appeal and denial of interim stay. (Para 10 , 11 , 12)

JUDGMENT :

1. The present appeal has been preferred under Section 96 of the Code of Civil Procedure, challenging the judgment and decree dated 30.10.2025 passed by the learned Civil Court in Civil Suit No. 283 of 2021, whereby the learned Court has directed the present appellant–original defendant to hand over vacant and peaceful possession of the suit property to the plaintiffs and to pay an amount of Rs. 5,000/- per month towards rent, after deducting Rs. 2,000/- already paid, from the date of institution of the suit till the date of handing over possession. For the sake of convenience, the present appellant shall hereinafter be referred to as the original defendant, and the respondents shall be referred to as the original plaintiffs.

2. The factual matrix of the case is as under:-

2.1. The original defendant is a tenant in respect of the suit property, namely Shop No. 1/A, situated at District Sub-district- Ahmedabad(Vadaj), Taluka City, Village Vadaj, within the limits of Naranpura, Ahmedabad, bearing the Municipal Tenement No. 0526-15-0696-0004-G. A rent agreement came to be executed between the father of the plaintiff and the defendant on 12.12.2003, whereby the monthly rent of the shop was fixed at Rs. 2,000/-, alongwith municipal taxes, education cess, electricity charges, etc. As per the terms of the agreement, the rent was required to be paid within the first ten days of each calendar month. It is further the case that the defendant had earlier instituted Civil Suit No. 104 of 2019 seeking injunction against the plaintiffs with respect to the possession of the suit property. The defendant paid rent up to 30.06.2018, however, thereafter, and in particular from 31.01.2020 onwards, no rent has been paid. Despite repeated demands made by the plaintiffs, the defendant remained irregular in payment of rent. Consequently, a legal notice dated 30.04.2020 came to be issued by the plaintiffs calling upon the defendant to hand over possession of the suit property and to pay rent at the rate of Rs. 15,000/- per month till the delivery of possession. As the defendant neither complied with the said notice nor responded thereto, the plaintiffs were constrained to institute the suit seeking recovery of peaceful and vacant possession of the suit property along with arrears of rent as stated hereinabove.

2.2. The defendant appeared in the proceedings and filed a written statement below Exhibit 8, inter alia contending that the father of the plaintiffs expired on 05.08.2017, leaving behind four sons, of whom the present plaintiff is one. The defendant expressed lack of knowledge regarding the execution of any Will by virtue of which the plaintiff claims to have become the owner of the suit property. It is further contended that, as per the rent agreement dated 12.12.2003, the initial rent was fixed at Rs. 1,500/- per month, which was subsequently enhanced to Rs. 2,000/- per month. The defendant has also contended that since Civil Suit No. 104 of 2019 had already been instituted by him seeking injunction, the present suit has been filed only with a view to seek possession and claim mesne profits in the guise of rent. It is the case of the defendant that rent had been paid up to 30.06.2018 and was duly accepted by the plaintiff, but thereafter the plaintiff refused to accept further rent. Consequently, the defendant deposited rent for the period from 30.06.2018 to 31.01.2020 before the Court in the aforesaid civil suit. It is further submitted that due to the outbreak of the COVID-19 pandemic, the functioning of courts was disrupted; however, upon

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