Supreme Court Upholds Ejectment of Licensee and Directs Future Mesne Profits in Landlord-Tenant Dispute. High Court's Confirmation of Ejectment on Licence Ground Was Permissible as Parties Had Led Evidence on Nature of Possession; Decree for Ejectment Must Include Direction for Future Mesne Profits.

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Case Note & Summary

This civil dispute arose from a suit by Chandramaul (plaintiff) against Bhagwati Prasad (defendant) in the Court of the Second Civil Judge, Kanpur, concerning house No. 59/8, Nachghar, Birhana Road, Kanpur. The plaintiff alleged that he owned the house and had let it to the defendant as a tenant in stages from 1947 to 1950, at a total monthly rent of Rs. 450. The defendant admitted that the land belonged to the plaintiff but pleaded that he had constructed the house at his own cost of Rs. 32,704-1-0 at the plaintiff's request, on condition that he could occupy it until the amount spent was repaid. The plaintiff terminated the tenancy and filed the suit on 30 November 1955 seeking ejectment, arrears of rent of Rs. 8,550 from 1 April 1954 to 31 October 1955, and future mesne profits. The trial court framed seven issues, disbelieved the defendant's construction claim and the plaintiff's agreement as to rent, but found that the relationship of landlord and tenant had been proved. It decreed ejectment and awarded reduced rent at Rs. 300 per month, resulting in arrears of Rs. 5,700, and directed damages for use and occupation at Rs. 300 per month until ejectment. On appeal, the Allahabad High Court agreed with the trial court in disbelieving the defendant's version but was not satisfied with the plaintiff's case of tenancy. It held that the defendant must be deemed a licensee, confirmed the ejectment decree, and set aside the decree for past rent and future mesne profits on the ground that any tenancy would have been invalid under the U.P. Ordinance of December 1946, later enacted as the U.P. (Temporary) Control of Rent and Eviction Act (No. III) of 1947, which required permission of the District Magistrate for letting. Both parties appealed to the Supreme Court by certificate; the defendant challenged the ejectment decree, and the plaintiff challenged the rejection of past rent and future mesne profits. The defendant argued that the High Court had made a new case for the plaintiff by treating him as a licensee when the pleaded case of tenancy had failed, relying on Trojan & Co. Ltd. v. Rm. N. N. Nagappa Chettiar and Sheodhar Rai & Ors. v. Suraj Prasad Singh & Ors. The Supreme Court, speaking through Gajendragadkar C.J., held that while a party cannot sustain a claim on an entirely new ground not covered by pleadings or issues, the objection is technical and cannot succeed where substantial matters of title were touched in issues and evidence was led. In this case, the written statement clearly pleaded licence subject to repayment, so the nature of possession was in issue, and the High Court could treat the defendant as licensee. The Court therefore dismissed the defendant's appeal and confirmed the ejectment decree. On the plaintiff's appeal, the Court upheld the High Court's rejection of past rent because the tenancy was not proved and would have been invalid under the U.P. Act. However, it held that once ejectment was decreed, the defendant remaining in possession had to pay future mesne profits or damages for use and occupation until delivery. The Supreme Court thus partly allowed the plaintiff's appeal and directed that the ejectment decree be accompanied by an order for payment of future mesne profits or damages. The final outcome favored the plaintiff on ejectment and future mesne profits, while the defendant succeeded on the past rent claim.

Headnote

A) Practice and Procedure - Pleadings - New Grounds - Not mentioned - A party who asks for relief on a clear and specific ground cannot later sustain the same claim on an entirely new ground if such ground was not covered directly or by necessary implication in the issues or at trial. The Supreme Court relied on Trojan & Co. Ltd. v. Rm. N. N. Nagappa Chettiar and Sheodhar Rai & Ors. v. Suraj Prasad Singh & Ors. to hold that a new inconsistent case cannot be permitted. Held that this principle applies where the new ground was not in issue and parties had no opportunity to lead evidence. (Paras 290F-291F)

B) Practice and Procedure - Pleadings - Technical Objection When Matter Substantially in Issue - Not mentioned - Where substantial matters relating to title are touched in issues and evidence has been led, an objection that a particular matter was not expressly taken in pleadings is formal and technical and cannot succeed. The court must consider whether parties knew the matter was involved in the trial and led evidence about it. In the present case, the written statement clearly pleaded licence subject to repayment of construction cost, putting nature of possession in issue, so the High Court could treat the defendant as licensee. Held that the ejectment decree was properly confirmed. (Paras 291D-F, 292G-H)

C) Mesne Profits - Licensee Ejectment - Future Mesne Profits - U.P. (Temporary) Control of Rent and Eviction Act, 1947 (Act No. III of 1947) - Once a decree for ejectment of a licensee is passed, the person remaining in possession despite the decree must pay mesne profits or damages for use and occupation until delivery of possession. The High Court had set aside past rent and future mesne profits on the ground that the alleged tenancy was invalid without permission of the District Magistrate under the U.P. Act. The Supreme Court upheld the rejection of past rent but held that future mesne profits must be awarded as a necessary accompaniment to an ejectment decree. Held that a decree for ejectment must be accompanied by direction for payment of future mesne profits or damages. (Paras 294F-H)

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Issue of Consideration

Whether the High Court could confirm ejectment on the ground of licence when the plaintiff pleaded tenancy and that tenancy was not proved; whether the plaintiff was entitled to past rent and future mesne profits when the alleged tenancy was invalid under the U.P. (Temporary) Control of Rent and Eviction Act, 1947.

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Final Decision

The Supreme Court dismissed the defendant's appeal against ejectment, confirming the High Court's decree treating the defendant as a licensee. It upheld the High Court's rejection of past rent. It allowed the plaintiff's appeal in part by directing that future mesne profits or damages for use and occupation be paid from the date of the ejectment decree until delivery of possession.

Law Points

  • A party cannot sustain a claim on an entirely new ground not covered by pleadings or issues
  • Where substantial matters of title are touched in issues and evidence led
  • technical objection to pleadings cannot succeed
  • Once ejectment decree is passed
  • person remaining in possession must pay future mesne profits or damages until delivery
  • U.P. (Temporary) Control of Rent and Eviction Act
  • 1947 invalidates letting without permission of District Magistrate
  • Past rent may be denied if tenancy not established under such Act
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Case Details

1965 LawText (SC) (10) 33

Civil Appeals Nos. 964 and 965 of 1964

1965-10-19

P.B. Gajendragadkar, K.N. Wanchoo, M. Hidayatullah, V. Ramaswami

1966 AIR 735, 1966 SCR (2) 286

M.C. Setalvad, J.P. Goyal, A. Ranganadham Chetty, E.C. Agarwala, P.C. Agarwala

Bhagwati Prasad

Shri Chandramaul

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Nature of Litigation

Civil suit for ejectment, arrears of rent, and mesne profits concerning a house in Kanpur; cross appeals before Supreme Court challenging High Court's decree on ejectment and mesne profits.

Remedy Sought

Plaintiff sought ejectment of defendant, arrears of rent of Rs. 8,550, and future mesne profits; defendant resisted ejectment; on appeal to Supreme Court, defendant sought to set aside ejectment decree, plaintiff sought restoration of past rent and future mesne profits.

Filing Reason

Defendant allegedly occupied house as tenant under plaintiff but failed to pay rent from 1 April 1954; plaintiff terminated tenancy and sued for ejectment and arrears; defendant claimed he constructed house at own cost and had right to occupy until repaid.

Previous Decisions

Trial court (Second Civil Judge, Kanpur) decreed ejectment and reduced rent at Rs. 300 p.m., awarding Rs. 5,700 arrears and damages; Allahabad High Court confirmed ejectment on licence ground but set aside past rent and future mesne profits on ground of invalid tenancy under U.P. Rent Control Act.

Issues

Whether the High Court could confirm ejectment on the ground that the defendant was a licensee when the plaintiff had specifically pleaded tenancy and that tenancy was not proved. Whether the plaintiff was entitled to past rent and future mesne profits once the tenancy was not established under the U.P. (Temporary) Control of Rent and Eviction Act, 1947.

Submissions/Arguments

Defendant argued that the High Court made a new case for the plaintiff by treating him as licensee when the plaintiff's case of tenancy was rejected, citing Trojan & Co. Ltd. v. Rm. N. N. Nagappa Chettiar and Sheodhar Rai & Ors. v. Suraj Prasad Singh & Ors. Plaintiff argued that the High Court erred in refusing past rent and future mesne profits, and that once ejectment was granted, future mesne profits should follow.

Ratio Decidendi

A party cannot sustain a claim on an entirely new ground unless that ground was covered directly or by necessary implication in the issues and parties had opportunity to lead evidence. When substantial matters of title are touched in issues and evidence led, a technical objection to pleadings fails. Once an ejectment decree is passed, the person remaining in possession must pay future mesne profits or damages for use and occupation until delivery.

Judgment Excerpts

If a party asks for a relief on a clear and specific ground, and in the issues or at the trial, no other ground is covered either directly or by necessary implication, it would not be open to the said party to attempt to sustain the same claim on a ground which is entirely new. What the court has to consider in dealing with such an objection is : did the parties know that the matter in question was involved in the trial, and did they lead evidence about it ? Once it was held that the respondent was entitled to eject the appellant it followed that from the date of the decree granting the relief ejectment to the respondent the appellant who remained in possession of the property despite the decree, must pay mesne profits or damages for use and occupation of the said property until it was delivered to the respondent.

Procedural History

Suit filed by plaintiff Chandramaul on 30 November 1955 before Second Civil Judge, Kanpur for ejectment, arrears, and mesne profits. Trial court framed seven issues, disbelieved defendant's construction claim and plaintiff's rent agreement, but found landlord-tenant relationship, decreed ejectment and rent at Rs.300 p.m. (arrears Rs.5,700) and damages until ejectment. Defendant appealed to Allahabad High Court; High Court held defendant was licensee, confirmed ejectment, set aside past rent and future mesne profits due to U.P. Rent Control Act. Both parties appealed to Supreme Court with certificate under Civil Appeals Nos. 964 and 965 of 1964.

Acts & Sections

  • U.P. (Temporary) Control of Rent and Eviction Act, 1947 (Act No. III of 1947): Material provisions requiring permission of District Magistrate for letting
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