TaxTMI 
TaxTMI 
1943 (2) TMI 15
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....nds thus: 38 (1), An occupancy raiyat may institute a suit for the reduction of his rent on one or more of the following grounds.. (1) on the ground that there has been a fall, not due to a temporary cause, in the average local prices of staple food-crops during the currency of the present rent... (2) In any suit instituted under this section the Court may direct such reduction of the rent, as it thinks fair and equitable. 2. There is no dispute that reduction of rent on the ground stated above may be obtained by way of defence in a suit for recovery of arrears of rent. There is also no dispute that paddy is the staple food-crop of the locality. The learned Munsif who tried the suit upheld the defence claim to the reduction of rent, finding (1) that there has been a considerable fall in the average local prices of paddy during the currency of the present rent; (2) that the cause of the fall is not a temporary one. 3. He compared the average price of paddy for 1930 to 1989 as published by the Government under Section 39, Ben. Ten. Act, with that for the period from 1915 to 1924 and held that the tenants were entitled to a reduction of l/4th of the rent. As the commutation of the ....
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....ce and consequently he observed that if this prevailing rate be taken as coming into existence during the years 1891 to 1900, then the average prices of staple food-crops of that period were almost the same as the average prices of the years 1930 to 1939. Next, taking the average yield of the lands, he found that the present rent of ₹ 85 is a little less than l/6th of this average yield. He seems to have taken this to be a fair ratio. 7. Mr.Mukherjee, appearing in support of the appeal before me, contends (1) that the Court of appeal below went wrong in holding that the world economic depression was only a temporary cause; (2) that in exercise of its power under Section 38 (2), Ben. Ten. Act, the Court of appeal below went wrong (a) in its conception of prevailing rent as a factor determining the commuted rent (b) in its appreciation of what proportion should a fair rent bear to the average yield, and (c) in its appreciation of the factors actually taken into consideration in the commutation proceeding. 8. Mr.Ghose, appearing for the plaintiff-respondent, contends (1) that the question whether or not a cause is a temporary one is a question of fact, and is concluded in the ....
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....ended to last only for a time," "existing or continuing for limited time," "not of long duration," "transitory," "changing," "lasting for a short time," "not permanent." The word "permanent" also is used in the same Section 38, Ben. Ten. Act. The word does not import something, which will continue forever. It is something lasting or intended to last indefinitely. The more uncertain the result is the more it must be held to come within the Meaning of the word 'permanent': Krishna Sahai v. Palak Dhari ('15) 2 A.I.R. 1915 Cal. 345 at page 1158. 13. The question whether or not any particular cause is calculated to last indefinitely or only for a short time is necessarily a question of fact. There may be different accounts of the determining factors. But these factors must also be some facts, some accounts of what happened. It may be difficult, doubtful or problematical as to which account should be accepted. But its acceptance is not the application of any Rule of law. But the question whether the accepted accounts satisfy the requirements of a cause being temporary or permanent may be a question of....
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.... 38 would not give relief to the tenant from changes in the proportions due to the economic depression: for from the learned Judge's premise that it cannot be shown that the depression will have a permanent effect, he would be unable in any case to obtain a reduction for this case." 16. The learned Chief Justice only assumed the premise of Mahammad Noor J. to expose the infirmity in his reasoning. If Mahammad Noor J. _wanted to characterise the depression as temporary because one could not be sure how long the depression was going to last then with due respect I would differ from him. If there was this uncertainty about the duration of the depression it would not be temporary within the meaning of the section. 17. The other fact relied on by the learned Subordinate Judge is that during the last two or three years, there has again been some rise in the prices, though the prices are still lower than what ruled before the economic, depression. No doubt this fact may indicate that the price already shows a tendency to rise and such a rising tendency may be evidence of the fact that the cause of the fall is passing away. But the figures after the year 1936 again indi. Cater ....
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....turn the tide of depression. That belief is no longer possible; it is abundantly clear that action on a much wider spate is necessary. The "Midland Bank Review" in January 1932 affirmed that the only way out was the way pf a rising price level. Keynes in a lecture on 'The World Economic crisis and the way of escape' in February 1932 declared that the only alternative solution to the disappearance of the existing credit system is a worldwide organised inflation. "The way of escape from economic crisis" announced Sir William Beveridge in a Halley Stewart lecture on the same subject in the same month, was by way of international action to suppress the anarchy of purchasing power and to keep the liberty of production and exchange. A British Liberal Free Trade Manifesto proclaimed that the only way to renewed prosperity is the removal of all hindrances to the free exchange of goods and commodities. The views of American, French and German theorists differed markedly from the British as to the causes of the crisis and its solution. 19. "The causes of this depression lie in much more potent factors than these debts transactions," affirmed the Unit....