Bombay High Court Dismisses Defendant's Appeal in License vs. Tenancy Dispute — Written License Agreement Governs Relationship. Court Holds That Defendant Failed to Prove Oral Tenancy, and Civil Court Has Jurisdiction.

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

The case involves a dispute between the plaintiff, Mrs. Rosario Boventura Fernandes, and the defendant, Shri Indrakant Shankar Mambro, over a parcel of land in Assonora, Goa. The plaintiff claimed that the defendant was allowed to use the land under a written License Agreement dated 03.10.1988 for erecting a temporary wooden shed to sell cold drinks, for two years, at a license fee of Rs.100 per month. The plaintiff alleged that the defendant breached the agreement by making permanent modifications and defaulted on payments from January 1989. The defendant contended that he was a tenant under the Goa Rent Control Act, having occupied the land for about 20 years under an oral agreement, paying rent initially at Rs.12 per month, later increased to Rs.60, and that the written agreement was executed at the plaintiff's request. The trial court framed issue no. 5 regarding the defendant's plea of 20-year oral tenancy. The trial court found that the defendant failed to lead convincing evidence to prove the oral tenancy; documents produced did not refer to the stall or show its existence for 20 years. The trial court decreed the suit in favor of the plaintiff. The defendant appealed to the High Court. The High Court upheld the trial court's findings, noting that the written agreement of license was a contemporaneous document and the defendant's evidence was insufficient to prove an oral tenancy. The court dismissed the second appeal, confirming that the relationship was that of licensor and licensee, and the civil court had jurisdiction.

Headnote

A) Property Law - License vs. Tenancy - Distinction between License and Lease - Goa Rent Control Act, 1964 - The court considered whether the defendant's occupation of a parcel of land was as a tenant or a licensee. The plaintiff claimed the defendant was a licensee under a written agreement dated 03.10.1988, while the defendant alleged an oral tenancy for 20 years. The court held that the written agreement of license, being a contemporaneous document, outweighed the defendant's uncorroborated oral evidence. The defendant failed to prove the existence of an oral tenancy. (Paras 3-6)

B) Evidence Act, 1872 - Burden of Proof - Section 101 - The defendant bore the burden to prove the alleged oral tenancy. The court found that the defendant did not lead convincing or cogent evidence. Documents produced by the defendant did not refer to the stall or show its existence for 20 years. Therefore, the defendant failed to discharge the burden. (Para 6)

C) Civil Procedure Code, 1908 - Jurisdiction - Section 9 - The civil court had jurisdiction to entertain the suit as the relationship was that of licensor and licensee, not landlord and tenant. The defendant's plea of tenancy under the Goa Rent Control Act was rejected. (Paras 4-5)

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Issue of Consideration

Whether the defendant was a tenant under the Goa Rent Control Act or a licensee under a written agreement, and whether the civil court had jurisdiction to entertain the suit.

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Final Decision

Second appeal dismissed. The judgment and decree of the trial court are confirmed. The defendant is held to be a licensee, not a tenant, and the civil court had jurisdiction.

Law Points

  • License vs. Tenancy
  • Burden of Proof
  • Oral Tenancy
  • Written Agreement
  • Goa Rent Control Act
  • Section 9 CPC
  • Section 101 Evidence Act
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Case Details

2006 LawText (BOM) (03) 102

Second Appeal No. 66 of 2000

2006-03-17

N. A. Britto, J.

Mrs. A. A. Agni with Shri M. S. Prabhu Desai for Appellant; J. E. Coelho Pereira, Senior Advocate with V. Korgaonkar for Respondent

Shri Indrakant Shankar Mambro

Mrs. Rosario Boventura Fernandes (through her LRs Olivia Dias)

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Nature of Litigation

Second appeal against decree in civil suit for possession and arrears of license fees.

Remedy Sought

Plaintiff sought possession of the land and arrears of license fees; defendant sought dismissal of suit claiming tenancy rights.

Filing Reason

Defendant allegedly breached license agreement by making permanent modifications and defaulting on payments.

Previous Decisions

Trial court decreed suit in favor of plaintiff; first appeal (if any) not mentioned.

Issues

Whether the defendant was a tenant under the Goa Rent Control Act or a licensee under the written agreement. Whether the civil court had jurisdiction to entertain the suit.

Submissions/Arguments

Plaintiff argued that defendant was a licensee under written agreement dated 03.10.1988, and breached conditions by making permanent modifications and defaulting on payments. Defendant argued that he was a tenant for 20 years under oral agreement, and the written agreement was executed at plaintiff's request; court lacked jurisdiction.

Ratio Decidendi

The written agreement of license executed on 03.10.1988 is a contemporaneous document that governs the relationship between the parties. The defendant failed to discharge the burden of proving an oral tenancy for 20 years. Therefore, the defendant is a licensee, and the civil court has jurisdiction.

Judgment Excerpts

Before this Court, there are two facts which are not disputed. First, that the plaintiff is the owner in possession of the property known as 'Bajarpet', surveyed under no. 9/7 of Village Assonora, and second, that what was let out (to let also means to allow) by the plaintiff to the defendant was a parcel of land of the said property admeasuring about 4.75 x 3.50 metres, adjoining the public road. The learned trial Court found that the defendant had not led convincing or cogent evidence in support of the said issue.

Procedural History

The plaintiff filed R.C.S. No. 90/1989/C in the trial court. The trial court decreed the suit. The defendant filed Second Appeal No. 66 of 2000 in the Bombay High Court at Goa.

Acts & Sections

  • Goa Rent Control Act, 1964:
  • Indian Evidence Act, 1872: Section 101
  • Code of Civil Procedure, 1908: Section 9
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High Court Bombay High Court Dismisses Defendant's Appeal in License vs. Tenancy Dispute — Written License Agreement Governs Relationship. Court Holds That Defendant Failed to Prove Oral Tenancy, and Civil Court Has Jurisdiction.
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