Case Note & Summary
The case involves a Civil Revision Application filed by the Life Insurance Corporation of India (LIC) against the judgment and order of the Appellate Bench of the Small Causes Court at Bombay, which confirmed the trial court's decree of eviction in favor of the landlord trustees of Shri Lalsingh Mansingh Trust. The suit premises were leased to LIC for five years from 10th October 1970 at a monthly rent of Rs.2,625.70, with a registered lease deed executed on 15th September 1971. After the lease expired, LIC continued as a monthly tenant. The trust issued a notice of demand on 25th March 1999 for arrears of rent from 1st April 1998 to 31st March 1999, but LIC failed to pay within one month, leading to a suit for eviction under Section 12(3)(a) of the Maharashtra Rent Control Act, 1999. The trial court decreed the suit, and the appeal was dismissed. In revision, LIC argued that the lease deed was invalid for want of proper attestation, and thus the tenancy was not governed by the Rent Act. The High Court held that the lease deed was not attested by two witnesses as required under Section 3 of the Transfer of Property Act, 1882, and therefore it was not a valid lease from year to year or month to month under Section 107, but it was valid as a monthly tenancy under Section 106 due to delivery of possession. Consequently, the Rent Act applied, and LIC's failure to pay rent within one month of notice justified eviction. The revision was dismissed with costs.
Headnote
A) Transfer of Property Act - Lease - Attestation - Section 3, Section 107 - A lease deed not attested by two witnesses is invalid as a lease from year to year or month to month under Section 107, but may be valid as a monthly tenancy under Section 106 if accompanied by delivery of possession. The court held that the lease deed in question was not attested by two witnesses as required, and thus the tenancy was a monthly tenancy under Section 106, not a lease from year to year. (Paras 6-10) B) Maharashtra Rent Control Act - Eviction - Non-payment of Rent - Section 12(3)(a) - A tenant who fails to pay or deposit rent within one month of receipt of notice of demand is liable for eviction. The court held that the defendant failed to pay rent despite notice, and the trial court's decree for eviction was correct. (Paras 11-15) C) Code of Civil Procedure - Revision - Section 115 - Revisional jurisdiction is limited to cases where no appeal lies and there is an error of jurisdiction or illegality. The court held that the appellate court's findings were concurrent and not perverse, and no interference was warranted. (Paras 16-19)
Issue of Consideration
Whether the lease deed dated 15th September, 1971 was validly attested by two witnesses as required under Section 3 of the Transfer of Property Act, 1882, and whether the defendant was entitled to protection under the Maharashtra Rent Control Act, 1999.
Final Decision
The Civil Revision Application is dismissed with costs.
Law Points
- Lease deed not attested by two witnesses is invalid as a lease from year to year or month to month under Section 107 of Transfer of Property Act
- 1882
- but may be valid as a monthly tenancy under Section 106 if accompanied by delivery of possession
- Section 3 of Transfer of Property Act
- 1882 requires attestation by two witnesses for a lease deed to be valid
- Section 115 of Code of Civil Procedure
- 1908 limits revisional jurisdiction to cases where no appeal lies and there is an error of jurisdiction or illegality
- Section 12(3)(a) of Maharashtra Rent Control Act
- 1999 allows eviction for non-payment of rent if tenant fails to pay or deposit rent within one month of notice.
