Bombay High Court Allows Second Appeal in Rent Recovery and Possession Suit — Oral Lease of Vacant Plot Not Covered by Rent Control Act. Held that a vacant plot is not a 'premises' under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, and the tenant's possession after expiry of lease is that of a trespasser, not a tenant.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The original plaintiff, Dasrao Ramrao Bokil (since deceased, represented by legal heirs), filed a suit (R.C.S. No. 10/1976) before the Civil Judge Junior Division, Latur, against the original defendant, Ganpat Valhoba Ghisadi (since deceased, represented by legal heirs), for possession of 1/4th vacant plot bearing No. 27/42 at Latur and for recovery of arrears of rent. The plaintiff alleged that the defendant had taken the vacant plot on rent at the time of Diwali 1968 on a monthly rent of Rs. 17/- for a period of one year, i.e., up to Diwali 1969, under an oral agreement. The defendant continued in possession after the expiry of the lease but was irregular in payment of rent. The plaintiff issued a notice dated 10.12.1973 demanding arrears of rent of Rs. 350/- and terminating the tenancy. Despite service, the defendant did not pay. The trial court decreed the suit for possession and arrears of rent. The defendant appealed to the District Court, which reversed the decree and dismissed the suit, holding that the vacant plot was 'premises' under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, and that the tenancy was from month to month, requiring a valid notice under Section 106 of the Transfer of Property Act, 1882. The plaintiff filed a second appeal in the High Court. The High Court allowed the appeal, holding that a vacant plot is not 'premises' under the Rent Act, and the lease was for a fixed term, not month to month. The court restored the trial court's decree for possession and arrears of rent.

Headnote

A) Rent Control - Definition of Premises - Vacant Plot - The Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 - The court considered whether a vacant plot of land falls within the definition of 'premises' under the Act. Held that a vacant plot is not a 'premises' as defined, and therefore the Act does not apply. The tenant's possession after expiry of the lease is that of a trespasser, and the plaintiff is entitled to possession. (Paras 4-6)

B) Lease - Oral Lease - Tenancy for Fixed Term - Transfer of Property Act, 1882, Section 106 - The lease was oral for one year from Diwali 1968 to Diwali 1969. After expiry, the tenant continued in possession. The court held that the tenancy was for a fixed term and not from month to month, so Section 106 of the Transfer of Property Act does not apply. The tenant's holding over does not create a monthly tenancy. (Paras 4-6)

C) Rent Recovery - Arrears of Rent - Notice - The plaintiff claimed arrears of rent of Rs. 350/- and issued notice dated 10.12.1973 demanding payment and terminating tenancy. The court held that the notice was valid and the defendant was liable to pay arrears. (Paras 1-3)

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Issue of Consideration

Whether a vacant plot of land is a 'premises' under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, and whether the plaintiff is entitled to possession and arrears of rent.

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Final Decision

Second appeal allowed. Judgment and decree of the District Court set aside. Decree of the trial court for possession and arrears of rent restored.

Law Points

  • Vacant plot not a 'premises' under Rent Act
  • Oral lease for one year
  • Tenant holding over not protected
  • Notice terminating tenancy valid
  • Suit for possession maintainable
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Case Details

2011 LawText (BOM) (03) 51

Second Appeal No. 165 of 1992

2011-03-17

S. V. Gangapurwala, J.

Shri Jayant Chitnis and Shri S. P. Deshmukh for Appellants; Shri S. V. Chandole for Respondents

Dasrao S/o Ramrao Bokil (since deceased through legal heirs: Arvind S/o Dasrao Bokil, Murlidhar S/o Dasrao Bokil, Uday S/o Dasrao Bokil, Sunil S/o Dasrao Bokil, Smt. Vijaya W/o Vilasrao Deshpande, Dr. Pramila W/o Suresh Subhedar, Sow. Minakshi W/o Madhavrao Sathe, Sow. Mangala w/o Gautamrao Patil)

Ganpat S/o Valhoba Ghisadi (since deceased through legal heirs: Radhabai W/o Ganpat Ghisadi, Subhash S/o Ganpat Ghisadi, Suryakant S/o Ganpat Ghisadi (deceased through legal heirs: Sunil S/o Suryakant Ghisade/Salunke, Ravi S/o Suryakant Ghisade/Salunke, Vishnu S/o Suryakant Ghisade/Salunke, Sachin S/o Suryakant Ghisade/Salunke), Ramesh S/o Ganpat Ghisadi, Indu D/o Ganpat Ghisadi, Sindhu D/o Ganpat Ghisadi)

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Nature of Litigation

Civil suit for possession of vacant plot and recovery of arrears of rent.

Remedy Sought

Plaintiff sought possession of 1/4th vacant plot and recovery of arrears of rent.

Filing Reason

Defendant failed to pay rent and did not vacate after expiry of lease.

Previous Decisions

Trial court decreed suit for possession and arrears; District Court reversed and dismissed suit.

Issues

Whether a vacant plot of land is 'premises' under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947. Whether the tenancy was from month to month requiring notice under Section 106 of the Transfer of Property Act, 1882.

Submissions/Arguments

Appellant argued that vacant plot is not 'premises' under Rent Act and lease was for fixed term. Respondent argued that vacant plot is 'premises' and tenancy was monthly, requiring valid notice.

Ratio Decidendi

A vacant plot of land is not a 'premises' under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947. An oral lease for a fixed term does not create a monthly tenancy under Section 106 of the Transfer of Property Act, 1882. The tenant holding over after expiry is a trespasser, and the landlord is entitled to possession and arrears of rent.

Judgment Excerpts

The original plaintiff is the present appellant. The plaintiff instituted a suit bearing R.C.S. No. 10/1976 before the Civil Judge Junior Division, Latur for possession of 1/4th vacant plot bearing No. 27/42 at Latur and for recovery of arrears of rent. The plaintiff contended that the defendant had taken a vacant plot on rent at the time of Diwali 1968, on monthly rent of Rs. 17/ for a period of one year i. e. up to Diwali 1969. The said agreement was oral. The plaintiff as such issued notice demanding arrears of rent of Rs. 350/ and terminating his tenancy vide notice dated 10.12.1973.

Procedural History

Plaintiff filed R.C.S. No. 10/1976 in Civil Judge Junior Division, Latur. Trial court decreed suit. Defendant appealed to District Court, which reversed and dismissed suit. Plaintiff filed Second Appeal No. 165 of 1992 in Bombay High Court, Aurangabad Bench. High Court allowed appeal on 17.03.2011.

Acts & Sections

  • Bombay Rents, Hotel and Lodging House Rates Control Act, 1947:
  • Transfer of Property Act, 1882: Section 106
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