Bombay High Court Allows Landlord's Appeal in Rent Control Case — Valid Service of Quit Notice Under Section 106 of Transfer of Property Act, 1882 Established. Tenant's Denial of Receipt of Notice Disbelieved as Notice Sent by Registered Post and Telegram.

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

The case involves a landlord-tenant dispute over Block No.3 situated in a chawl at Railtoli, Gondia. The plaintiff-landlord, Surendrakumar Agrawal, filed a suit for recovery of possession and damages against his tenant, Vithalrao Agre (since deceased, represented by legal heirs). The landlord claimed that after obtaining necessary permission from the Rent Controller, he issued several notices under Section 106 of the Transfer of Property Act, 1882, terminating the tenancy and calling upon the tenant to vacate by 15.9.1987. He alleged that five earlier notices were returned unserved, but the sixth notice dated 28.8.1987 was received by the tenant, and he also sent a telegram. The tenant denied receiving any notice or telegram and disputed the grant of Rent Controller's permission. The trial court dismissed the suit, holding that no valid notice was served. The first appellate court reversed this decision, finding that the notice dated 20.7 (sic August) 1987 was duly served, and directed the tenant to hand over possession within one month and ordered a separate enquiry for mesne profits under Order XX Rule 12 CPC. The tenant's legal heirs appealed to the High Court. The High Court, after considering the evidence, upheld the appellate court's finding on service of notice, noting that the notice was sent by registered post and telegram, and the tenant's bare denial was insufficient. The appeal was dismissed, and the decree of the first appellate court was confirmed.

Headnote

A) Rent Control and Tenancy Law - Termination of Tenancy - Service of Notice under Section 106 of Transfer of Property Act, 1882 - The landlord sought possession of suit premises after obtaining Rent Controller's permission and issuing multiple quit notices. The tenant denied receipt of any notice. The trial court dismissed the suit holding no valid notice, but the first appellate court reversed, finding that the notice dated 28.8.1987 was duly served. The High Court upheld the appellate court's finding, noting that the notice was sent by registered post and telegram, and the tenant's bare denial was insufficient to rebut the presumption of service. (Paras 2-6)

B) Civil Procedure - Mesne Profits - Order XX Rule 12 of Code of Civil Procedure, 1908 - The first appellate court directed a separate enquiry for mesne profits after delivery of possession. The High Court affirmed this direction, holding that mesne profits can be determined in a separate proceeding. (Para 6)

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Issue of Consideration

Whether the plaintiff-landlord validly terminated the tenancy of the defendant-tenant by serving a notice under Section 106 of the Transfer of Property Act, 1882, and whether the first appellate court correctly reversed the trial court's finding on this issue.

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Final Decision

The High Court dismissed the second appeal, confirming the judgment and decree of the first appellate court dated 5.4.1995, which directed the defendant to hand over vacant possession of the suit premises within one month and ordered a separate enquiry for mesne profits under Order XX Rule 12 CPC.

Law Points

  • Service of notice under Section 106 of Transfer of Property Act
  • 1882
  • can be proved by registered post acknowledgment
  • denial of receipt by tenant must be weighed against evidence of dispatch and postal endorsement
  • Rent Controller's permission is a prerequisite for issuing quit notice under Rent Control Act.
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Case Details

2013 LawText (BOM) (11) 69

Second Appeal No. 299 of 1995

2013-11-26

S.B. Shukre, J.

Mr. Sumit G. Joshi h/f Mr. Anil Mardikar for Appellants, Mr. Amit Madiwale for Respondent

Smt. Sindhubai wd/o Vithalrao Agre and others (legal heirs of deceased original defendant)

Surendrakumar s/o Shankarlal Agrawal (original plaintiff)

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Nature of Litigation

Civil second appeal against judgment and decree in Regular Civil Appeal No. 11 of 1994, which reversed trial court's dismissal of landlord's suit for possession.

Remedy Sought

Appellants (legal heirs of tenant) sought to set aside the first appellate court's decree directing possession and mesne profits enquiry.

Filing Reason

Appellants challenged the first appellate court's finding that a valid quit notice under Section 106 of Transfer of Property Act was served on the tenant.

Previous Decisions

Trial Court (Civil Judge, Jr.Dn., Gondia) dismissed suit on 5.1.1994 holding no valid notice; First Appellate Court (Additional District Judge, Gondia) allowed appeal on 5.4.1995, decreeing possession and mesne profits enquiry.

Issues

Whether the plaintiff-landlord validly terminated the tenancy by serving a notice under Section 106 of the Transfer of Property Act, 1882? Whether the first appellate court correctly reversed the trial court's finding on service of notice?

Submissions/Arguments

Appellants (tenant's heirs) argued that no valid notice was served and the trial court's finding was correct. Respondent (landlord) contended that notice dated 28.8.1987 was duly served by registered post and telegram, and the tenant's denial was false.

Ratio Decidendi

The court held that the first appellate court's finding on service of notice under Section 106 of the Transfer of Property Act, 1882, was based on evidence of dispatch by registered post and telegram, and the tenant's bare denial was insufficient to rebut the presumption of service. The appellate court's decision was not perverse and did not warrant interference in second appeal.

Judgment Excerpts

The plaintiff submitted that after receiving necessary permission, he had issued several notices under Section 106 of Transfer of Property Act, 1882, to the defendant informing him that the tenancy had been terminated and calling upon him to vacate the suit premises by the end of 15.9.1987. The first appellate Court ... found that the plaintiff had rightly terminated the tenancy of the defendant by serving upon him a notice dated 20.7 (sic – August) 1987.

Procedural History

The plaintiff filed Regular Civil Suit No. 424 of 1987 in the Court of Civil Judge, Jr.Dn., Gondia, which was dismissed on 5.1.1994. The plaintiff appealed to the Additional District Judge, Gondia, in Regular Civil Appeal No. 11 of 1994, which was allowed on 5.4.1995. The defendant's legal heirs filed the present Second Appeal No. 299 of 1995 in the Bombay High Court, Nagpur Bench, which was dismissed on 26.11.2013.

Acts & Sections

  • Transfer of Property Act, 1882: Section 106
  • Code of Civil Procedure, 1908: Order XX Rule 12
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