Case Note & Summary
The case involves a second appeal filed by the legal heirs of the original defendant against the judgment and decree of the Additional District Judge, Khamgaon, which confirmed the trial court's decree for ejectment, possession, and mesne profits in favor of the respondent, Madan Mohan Mandir Sanstha, a registered public trust. The respondent trust had filed a suit through one of its trustees, Gokuldas Kalyanji Shelarka, alleging that the original defendant was a tenant in the suit house at a monthly rent of Rs.25/-. The trust obtained permission from the Rent Controller and issued a quit notice on 29th July 1984, terminating the tenancy with effect from 30th April 1984. The tenant failed to vacate, leading to the suit. The appellants contested the suit on several grounds, including that the trust had no authority to file the suit, that the trust deed required registration, and that there was no default in payment of rent. The trial court framed six issues and decreed the suit. The first appellate court dismissed the appeal, confirming the decree. In the second appeal, the High Court framed substantial questions of law regarding the maintainability of the suit, the validity of the trust deed, the applicability of Section 12(3)(a) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, and the award of mesne profits. The High Court held that the suit was maintainable as the trust had passed a resolution authorizing the trustee to file the suit. The trust deed, being a will, did not require registration. The tenant had committed default in payment of rent for more than six months and failed to pay within one month of the notice, thus not entitled to protection under Section 12(3)(a). The award of mesne profits from the date of suit was proper. The concurrent findings of fact were not perverse, and no substantial question of law arose. The appeal was dismissed with costs.
Headnote
A) Trust Law - Authority to Sue - Suit by Trust through Trustee - Maintainability - Trust filed suit through one trustee - Appellant contended that suit was not maintainable as other trustees did not authorize - Court held that resolution passed by trustees authorized filing of suit - Suit maintainable (Paras 9-11). B) Trust Law - Trust Deed - Registration - Trust deed created by will - Appellant argued trust deed required registration under Registration Act - Court held that trust deed being a will does not require registration - Trust valid (Para 12). C) Rent Control - Default in Payment of Rent - Section 12(3)(a) of Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 - Tenant failed to pay rent for more than six months - Landlord issued notice terminating tenancy - Tenant did not pay rent within one month of notice - Court held that tenant not entitled to protection under Section 12(3)(a) - Decree for ejectment confirmed (Paras 13-16). D) Rent Control - Mesne Profits - Award of Mesne Profits - Tenant continued in possession after termination of tenancy - Court awarded mesne profits from date of suit - Held that mesne profits are compensatory and can be awarded from date of suit (Paras 17-18). E) Civil Procedure - Second Appeal - Concurrent Findings - No substantial question of law - Court held that findings of fact by lower courts are concurrent and not perverse - No interference warranted (Paras 19-20).
Issue of Consideration
Whether the suit filed by the trust through one trustee was maintainable without authorization from all trustees; Whether the trust deed required registration; Whether the tenant committed default in payment of rent; Whether the tenant was entitled to protection under Section 12(3)(a) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947; Whether the appellate court could grant relief under Section 12(3)(b) of the said Act; Whether the award of mesne profits was proper.
Final Decision
The High Court dismissed the second appeal with costs, confirming the decree for ejectment, possession, and mesne profits passed by the trial court and affirmed by the first appellate court.
Law Points
- Suit by trust through trustee is maintainable if authorized by resolution
- Trust deed does not require registration under Registration Act if it is a will
- Tenant's failure to pay rent for more than six months constitutes default under Bombay Rents
- Hotel and Lodging House Rates Control Act
- 1947
- Section 12(3)(a) applies when tenant fails to pay rent within one month of notice
- Mesne profits can be awarded from date of suit if tenant continues in possession after termination of tenancy
