Supreme Court Dismisses Tenant's Appeal in Bombay Tenancy and Agricultural Lands Act, 1948 Dispute Over Trust Lands. Tenant by Sufferance Not Entitled to Section 4B Protection or Notice Under Section 88B(2) Certificate Inquiry.

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Case Note & Summary

The Supreme Court considered an appeal by certificate against a Bombay High Court judgment in a landlord-tenant dispute concerning agricultural lands. The respondent landlord, a trust, had leased certain agricultural lands to the appellant tenant for five years commencing 1 March 1943, with an option for renewal that the tenant did not exercise. The lease expired on 28 February 1948. Under Section 23(1)(b) of the Bombay Tenancy Act, 1939, as amended in 1946, the lease was deemed to be for not less than ten years, thus expiring on 28 February 1953. When the Bombay Tenancy and Agricultural Lands Act, 1948 came into force, it repealed the 1939 Act but modified sections 3, 3A and 4 relating to protected tenants. Under section 3A, the appellant became a protected tenant because the landlord did not apply to the Mamlatdar for a declaration that the tenant was not a protected tenant. Consequently, the appellant remained protected from 1 March 1953 until 31 July 1956. Section 88B was introduced by Act 13 of 1956, which removed protected tenant status for lands held by trusts that met certain conditions. The respondent trust obtained a certificate under section 88B(2) after an inquiry before the Collector. The respondent had earlier issued notices terminating the tenancy on 25 October 1955 and 10 June 1958 and filed a suit for possession on 14 September 1959. The trial court did not grant a decree for possession, and the High Court initially held the appellant not liable to be evicted. In a previous appeal, this Court remanded the matter for a report on whether the appellant was a protected tenant on 1 March 1953 and whether the appellant could claim benefit of Section 5 of the Amending Act, 1952. The High Court reported that the appellant was a protected tenant but not entitled to the Amending Act relief. This Court affirmed those findings and directed the High Court to determine whether there was a valid termination of tenancy. On remand, the High Court held that the appellant was a tenant on sufferance and not entitled to notice. The present appeal challenged that determination, with the appellant claiming protection under Section 4B of the 1948 Act as a tenant holding over. The central legal issues were whether the appellant was entitled to protection under Section 4B despite the expiry of the contractual tenancy and withdrawal of protected tenant status, and whether the appellant was entitled to notice before the Collector granted a trust certificate under section 88B(2). The appellant argued that Section 4B prevented termination merely on the ground of expiry of the fixed period and that the appellant was holding over. The respondent contended that after the original tenancy ceased and the protection under section 88B was lost, the appellant remained in possession without consent and was only a tenant by sufferance or trespasser, so no tenancy existed for Section 4B to protect. The respondent also argued that the inquiry under section 88B(2) was between the Collector and the Trust, and the appellant had no right to notice. The Court held that Section 4B applied only to a subsisting tenancy and prohibited termination solely on the expiry of the period fixed by agreement or usage. Here, the original contractual tenancy had expired on 28 February 1948, and after the appellant ceased to be a protected tenant on 1 August 1956, there was no contractual tenancy and no consent by the landlord to hold over. Under common law, a lessee remaining in possession after determination of the term without landlord's consent is a tenant on sufferance, not a tenant holding over or at will. Tenancy is a matter of privity of parties; without consent, the occupant is a trespasser. Therefore Section 4B had no application. Regarding section 88B(2), the Collector's inquiry was between the Collector and the Trust, and the appellant had at no stage denied that the lands were trust property. The certificate granted by the Collector was conclusive evidence of compliance with the trust conditions. Thus the appellant was not entitled to notice. The appeal was dismissed, and parties were directed to bear their own costs.

Headnote

A) Tenancy Law - Termination of Tenancy - Section 4B of Bombay Tenancy and Agricultural Lands Act, 1948 - No tenancy shall be terminated merely on expiry of the period fixed by agreement or usage - The appellant's original contractual tenancy expired on 28 February 1948, though deemed extended to 28 February 1953 under Section 23(1)(b) of Bombay Tenancy Act, 1939; after the appellant ceased to be a protected tenant on 1 August 1956 upon introduction of Section 88B, there was no contractual tenancy and no consent to hold over - Held that the appellant was a tenant by sufferance or trespasser, not a tenant holding over, and therefore Section 4B had no application because there was no tenancy (Pages 342-344).

B) Trust Law and Evidence - Certificate for Trust Lands - Section 88B(2) of Bombay Tenancy and Agricultural Lands Act, 1948 - The Collector grants a certificate after holding an inquiry that the conditions in the proviso to Section 88B(1) are satisfied by any trust, including registration under the Bombay Public Trust Act, 1950 and appropriation of entire income for trust purposes; the inquiry is between the Collector and the Trust - The appellant, a tenant by sufferance, never denied the lands were trust property and thus was not entitled to notice when the Collector held the inquiry - Held that the certificate is conclusive evidence and no notice to the appellant was required (Page 344).

C) Statutory Interpretation - Protected Tenant Status - Section 3A of Bombay Tenancy Act, 1939 as modified by Bombay Tenancy and Agricultural Lands Act, 1948 - Every tenant shall be deemed to be a protected tenant unless the landlord made an application for a declaration to the contrary, and Section 4A does not apply to tenancies governed by Section 88B(1) - The appellant became a protected tenant because the landlord made no application under Section 3A, but this protection ceased upon insertion of Section 88B by Act 13 of 1956 - Held that after the protection was withdrawn, there could be no question of holding over because there was no contractual tenancy (Pages 342-343).

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Issue of Consideration

Whether the appellant was entitled to protection under Section 4B of the Bombay Tenancy and Agricultural Lands Act, 1948, and whether the appellant was entitled to notice before the Collector granted a trust certificate under Section 88B(2).

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Final Decision

The Supreme Court dismissed the appeal, holding that the appellant was a tenant by sufferance and not entitled to protection under Section 4B of the Bombay Tenancy and Agricultural Lands Act, 1948, and that no notice was required under Section 88B(2) before granting the trust certificate. Parties were directed to bear their own costs.

Law Points

  • Section 4B of Bombay Tenancy and Agricultural Lands Act
  • 1948 prohibits termination of tenancy merely on expiry of agreed period
  • tenant holding over requires landlord's consent
  • tenant by sufferance is not a tenant
  • tenancy is matter of privity of parties
  • inquiry under Section 88B(2) is between Collector and Trust
  • certificate under Section 88B(2) is conclusive evidence
  • no notice to tenant required in trust certificate inquiry
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Case Details

1974 LawText (SC) (10) 16

Civil Appeal No. 1013 of 1973

1974-10-04

A.N. Ray, K.K. Mathew, A. Alagiriswami

1974 AIR 2123, 1975 SCR (2) 341, 1974 SCC (2) 621

M.C. Bhandare, K. Rajendra Choudhary, V.S. Desai, R.G. Samant, P.C. Bhartari, K.J. John, J.B. Dadachanji, O.C. Mathur, Ravinder Narain

Maneksha Ardeshir Irani & Anr.

Manekji Edulji Mistry & Ors.

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Nature of Litigation

Civil appeal by certificate against Bombay High Court decision in a suit for possession of agricultural lands by a landlord trust against an erstwhile tenant.

Remedy Sought

Appellant tenant sought protection under Section 4B of Bombay Tenancy and Agricultural Lands Act, 1948 and to resist eviction; respondent landlord sought possession of the lands.

Filing Reason

Respondent filed suit for possession after terminating tenancy by notices dated 25 October 1955 and 10 June 1958 and after the tenant remained in occupation without consent following the withdrawal of protected tenant status.

Previous Decisions

Trial court did not grant possession decree; High Court initially held appellant not liable to be evicted; Supreme Court remanded for report on protected tenant status and Section 5 of Amending Act, 1952; High Court reported appellant was protected tenant on 1 March 1953 but not entitled to Section 5 relief; Supreme Court affirmed findings and remanded for determination of valid termination; on remand High Court held appellant was tenant on sufferance and not entitled to notice; damages issues remained unheard.

Issues

Whether the appellant was entitled to protection under Section 4B of the Bombay Tenancy and Agricultural Lands Act, 1948 when the original contractual tenancy had expired and protected tenant status had ceased. Whether the appellant was a tenant holding over or a tenant by sufferance after ceasing to be a protected tenant. Whether the appellant was entitled to notice before the Collector granted a trust certificate under Section 88B(2).

Submissions/Arguments

Appellant contended that Section 4B prohibited termination merely on expiry of the agreed period and that the appellant was a tenant holding over, not a tenant on sufferance. Appellant contended that he was entitled to notice before the Collector granted a certificate under Section 88B(2). Respondent contended that after the original contractual tenancy expired and protected tenant status was withdrawn under Section 88B, the appellant remained in possession without consent and was a tenant by sufferance or trespasser, so no tenancy existed for Section 4B to apply. Respondent contended that the Section 88B(2) inquiry was between the Collector and the Trust, and the tenant was not entitled to notice.

Ratio Decidendi

Under Section 4B of the Bombay Tenancy and Agricultural Lands Act, 1948, protection applies only where a tenancy subsists; if the contractual tenancy has expired and the occupant remains in possession without the landlord's consent, the occupant is a tenant by sufferance or trespasser, not a tenant holding over, and Section 4B has no application. Under Section 88B(2), the Collector's inquiry for granting a trust certificate is between the Collector and the Trust, and a tenant by sufferance who does not dispute the trust character is not entitled to notice; the certificate is conclusive evidence of compliance with the statutory conditions.

Judgment Excerpts

Section 4B states that no tenancy of any land shall be terminated 'merely on the ground that the period fixed by agreement or usage for its duration has expired.' If a tenant after the termination of the lease is in possession without the consent of the landlord, he is a tenant by sufferance. The inquiry is between the Collector and the Trust. Tenancy is a matter of privity of parties. If there is no consent, the appellant is a trespasser.

Procedural History

The tenant entered into a five-year lease on 1 March 1943; lease expired on 28 February 1948, but deemed extended to 28 February 1953 under Section 23(1)(b) of Bombay Tenancy Act, 1939. Landlord issued termination notice on 25 October 1955 and another on 10 June 1958; filed suit for possession on 14 September 1959. Trial court refused possession decree; High Court initially affirmed. Supreme Court in earlier appeal remanded for report; High Court reported appellant was protected tenant on 1 March 1953 but not entitled to Section 5 of Amending Act, 1952. Supreme Court affirmed and directed High Court to determine valid termination. On remand, High Court held appellant a tenant on sufferance and not entitled to notice. Present appeal by certificate filed; dismissed on 4 October 1974.

Acts & Sections

  • Bombay Tenancy and Agricultural Lands Act, 1948: Section 4A, Section 4B, Section 88B(1), Section 88B(2)
  • Bombay Tenancy Act, 1939: Section 3, Section 3A, Section 4, Section 23(1)(b)
  • Bombay Public Trust Act, 1950:
  • Transfer of Property Act, 1882: Section 106
  • Bombay Land Revenue Code: Section 84
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