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Issues: (i) whether the lessees were jointly and severally liable for the full annual rent under the lease deed, (ii) whether the claim for arrears of rent for the earlier Fasli years was barred by limitation under the Bihar Tenancy Act, and (iii) whether interest on arrears of rent was governed by the contractual rate or the statutory rate under the Bihar Tenancy Act.
Issue (i): whether the lessees were jointly and severally liable for the full annual rent under the lease deed
Analysis: The lease deed fixed a single annual rent payable by the lessees and mentioned their respective shares only for the purpose of apportioning contribution between them. The covenant that default for two consecutive years would entitle the lessors to terminate the entire lease showed that the obligation to pay rent was a joint one. Section 43 of the Indian Contract Act, 1872 applied to make the promisors jointly and severally liable.
Conclusion: The lessees were jointly and severally liable for the full rent, and liability could not be confined to a fractional share alone.
Issue (ii): whether the claim for arrears of rent for the earlier Fasli years was barred by limitation under the Bihar Tenancy Act
Analysis: The lease granted rights in forest produce only, and the suit was one for recovery of rent in respect of such forest rights. By reason of Section 193 of the Bihar Tenancy Act and Article 2(b)(i) of Schedule III, a special limitation period applied to the claim. Section 184 of the Bihar Tenancy Act also permitted the Court to consider limitation even without a pleaded objection, and no prejudice was shown by the absence of a specific plea.
Conclusion: The claim for rent for the earlier Fasli years was barred by limitation.
Issue (iii): whether interest on arrears of rent was governed by the contractual rate or the statutory rate under the Bihar Tenancy Act
Analysis: Section 67(1) of the Bihar Tenancy Act prescribed simple interest at 6 1/4% per annum on arrears of rent. In view of Section 193, the statutory provision displaced the contractual stipulation for interest at 1% per annum.
Conclusion: Interest was payable only at the statutory rate of 6 1/4% per annum.
Final Conclusion: The decree was modified so that the appellants succeeded only to the extent of recovery for the remaining Fasli years, with liability fixed jointly and severally and interest governed by the statute.
Ratio Decidendi: Where a lease deed discloses a single joint obligation to pay rent, Section 43 of the Indian Contract Act, 1872 fastens joint and several liability, and where the Bihar Tenancy Act applies, its special limitation and interest provisions override inconsistent contractual terms.
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