TaxTMI 
TaxTMI 
2012 (5) TMI 860
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....deed dated 7th November, 2006 expired by efflux of time on 6th November, 2008. There is no renewal clause in the lease deed. The respondent claims that upon the expiry of the aforesaid lease, she requested the appellant to hand over the peaceful possession of the suit property to her. 3. Vide notice dated 20th June, 2009, the respondent notified the appellant that the registered lease deed dated 7th November, 2006 expired by efflux of time on 6th November, 2008, and the respondent does not wish to keep the appellant as her tenant any more. The respondent further notified the appellant to hand over the vacant and peaceful possession of the suit property on or before 15th July, 2009. The respondent also demanded the arrears of rent and mesne profits. 4. The aforesaid notice was sent by registered AD post to the registered office of respondent at K-26, Connaught Place, New Delhi - 110001 as well as at D-29, Okhla Industrial Area, Phase I, New Delhi. K-26, Connaught Place, New Delhi has been mentioned as the registered office of the appellant in the lease deed dated 7th November, 2006 whereas D-29, Okhla Industrial Area, Phase I, New Delhi is the present office of the appellant a....
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....he notice of termination dated 20th June, 2009 has not been served on the appellant. Without prejudice, it is submitted that the notice is not valid as it has not been given by all the co-owners of the suit property. The appellant has disputed the title of the respondent and has urged that the dispute between the respondent and the other co-owners of the suit is pending before the Court. It is further submitted that respondent let out the suit property to the appellant in violation of a status quo order passed in a suit between the co-owners. It is lastly submitted that the appellant has not made any admission before the Trial Court. It is submitted that the decree on admissions under Order XII Rule 6 of the Code of Civil Procedure can be passed on unambiguous, clear and un-conditional admissions and the written statement has to be read as a whole. 9. The learned counsel for the respondent in reply has submitted that the appellant has admitted the lease deed dated 7th November, 2008 between the parties as well as the payment of rent to the respondent. As such, the admission of relationship of landlord and tenant between the parties and the expiry of lease by efflux of time of 6t....
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....ferance is one who comes into possession of land by lawful title, but who holds it by wrong after the termination of the term or expiry of the lease by efflux of time. The tenant at sufferance is, therefore, one who wrongfully continues in possession after the extinction of a lawful title. There is little difference between him and a trespasser. In Mulla's Transfer of Property Act, (7th Edn.) at page 633, the position of tenancy at sufferance has been stated thus : A tenancy at sufferance is merely a fiction to avoid continuance in possession operating as a trespass. It has been described as the least and lowest interest which can subsist in reality. It, therefore, cannot be created by contract and arises only by implication of law when a person who has been in possession under a lawful title continues in possession after that title has been determined, without the consent of the person entitled. A tenancy at sufferance does not create the relationship of landlord and tenant. At page 769, it is stated regarding the right of a tenant holding over thus : The act of holding over after the expiration of the term does not necessarily create a tenancy of any kind. If the lessee remai....
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....sp; (b) to (f) xxx (g) by forfeiture; that is to say, (1) in case the lessee breaks an express condition which provides that, on breach thereof, the lessor may re-enter; or (2) in case the lessee renounces his character as such by setting up a title in a third person or by claiming title in himself; or (3) the lessee is adjudicated an insolvent and the lease provides that the lessor may re-enter on the happening of such event; and in any of these cases the lessor or his transferee gives notice in writing to the lessee of his intention to determine the lease; (h) on the expiration of a notice to determine the lease, or to quit, or of intention to quit, the property leased, duly given by one party to the other. 13. Duty of a Tenant under Section 108(q) read with Section 111 of Transfer of Property Act, 1882 13.1 Under Section 108(q) of Transfer of Property Act, 1882, it is the statutory obligation of the lessee to restore the possession of the leased property to the lessor on determination of the lease. Section 108(q) of Transfer of Property Act, 1882 is reproduced hereunder:- Section 108. Rights and liabil....
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....al Board v. Surendra P. Malik, 104 (2003) DLT 151 (DB), the Division Bench of this Court held as under:- "12. It is no longer a grey area that where a tenancy had otherwise expired by efflux of time but the tenant continued in possession of the premises, mere acceptance of rent by the landlord could neither renew the tenancy nor create a new one. That is so because such subsequent occupation of premises was not in pursuance of any contract, express or implied between the parties. "13. ... In any case, this aspect does not assume any importance as no notice under Section 106 was required to be served on appellant due to the expiry of the Lease between the parties by efflux of time. (Emphasis supplied) 13.5. In Usha Rani Jain v. Nirulas Corner House Private Limited, ILR (2005) II Delhi 349, this Court held as under:- "17. Though a plea was taken in the written statement about non determination of the lease because no notice to quit as envisaged under Section 106 of the Transfer of Property Act has been served on the defendants before filing of the present suit, but this aspect was not pressed at the hearing. Even otherwise, it is a well settled....
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....y by the tenant is an act of trespass. But law says 'No'. A lessee who continues in possession after expiry of the lease, without the consent of the lessor or without any agreement between the parties or in disagreement with the lessor, is treated in law as a tenant by sufferance. But where the lessor consents to the continued possession of the lessee qua the leased premises, a tenancy by holding over comes into operation by virtue of the provisions of Section 116 of the Transfer of Property Act 1882, which reads as under:- 116. Effect of holding over - If a lessee or underlessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise assents to his continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed from year to year, or from month to month, according to the purpose for which the property is leased, as specified in Section 106. 24. The words 'accepts rent or otherwise assents to his continuing in possession' in Section 116 of the Tra....
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....ed therein falls short of the period specified under that sub-section, where a suit or proceedings is filed after the expiry of the period mentioned in that sub-section. (4) Every notice under sub-section (1) must be in writing, signed by or on behalf of the person giving it, and either be sent by post to the party who is intended to be bound by it or be tendered or delivered personally to such party, or to one of his family or servants at his residence, or (if such tender or delivery is not practicable) affixed to a conspicuous part of the property. (Emphasis supplied) 14.2 Section 51 of the Companies Act, 1956 Section 51 of the Companies Act, 1956 provides the mode of service of document on a company. The Section provides that the documents may be served on a company by sending to the company at the registered office by post under a certificate of posting or by registered post or by leaving at its registered office. Section 51 of the Companies Act, 1956 is reproduced hereunder:- Section 51. Service of documents on company - A document may be served on a company or an officer thereof by sending it to the company or officer at the regis....
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.... expression is used, then, unless a different intention appears, the service shall be deemed to be effected by properly addressing, pre-paying and posting by registered post, a letter containing the document, and unless the contrary is proved, to have been effected at the time at which the letter would be delivered in the ordinary course of post. 15.2 Section 114(f) of Indian Evidence Act, 1872 Section 114(f) of the Indian Evidence Act provides that upon being shown that a letter has been posted, the Court may draw a presumption that the letter was received by the addressee. Section 114 of the Evidence Act incorporates presumption of fact and provides that the Court may presume the existence of probable facts regard being had to the common course of natural events, human conduct and common sense in relation to the facts of the particular case. Section 114 of the Indian Evidence Act, 1872 covers a wide range of presumption of facts which can be used by the Courts in the course of administration of justice. According to illustration (f) to the Section, the Court may presume ''that the common course of business has been followed in particular cases". Section 114 entitles....
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....s of circumstances in which certain presumptions may be made and other presumptions of a similar kind in similar circumstances can be made under the Section itself. The Supreme Court held as under:- "24 ...The Court may, of course, presume, as mentioned in Section 114 of the Indian Evidence Act, the existence of any fact which it thinks likely to have happened, regard being had to the common course of natural events, human conduct and public and private business, in their relation to the facts of the particular case. The illustrations mentioned in that Section, though taken from different spheres of human activity, are not exhaustive. They are based upon human experience and have to be applied in the context of the facts of each case. The illustrations are merely examples of circumstances in which certain presumptions may be made. Other presumptions of a similar kind in similar circumstances can be made under the provisions of the Section itself. Whether or not a presumption can be drawn under the Section in a particular case depends ultimately upon the facts and circumstances of each case. No hard and fast rule can be laid down. Human behavior is so complex that room must....
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....sumption is raised irrespective of whether any acknowledgement due is received from the addressee or not. It is obvious that when the section raises the presumption that the service shall be deemed to have been effected it means the addressee to whom the communication is sent must be taken to have known the contents of the document sought to be served upon him without anything more. Similar presumption is raised under Illustration (f) to Section 114 of the Indian Evidence Act whereunder it is stated that the Court may presume that the common course of business has been followed in a particular case, that is to say, when a letter is sent by post by pre-paying and properly addressing it the same has been received by the addreseee. ...It would, therefore, be reasonable to hold that when service is effected by refusal of a postal communication the addressee must be imputed, with the knowledge of the contents thereof and in our view, this follows upon the presumptions that are raised under Section 27 of the General Clauses Act, 1897 and Section 114 of the Indian Evidence Act." (Emphasis supplied) 15.8 In M/s Madan and Co. v. Wazir Jaivir Chand, AIR 1989 SC 630, the Supreme Court h....
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....ave happened, regard being had to the common course of natural events, human conduct and public and private business in their relation to the facts of the particular case. Consequently, the court can presume that the common course of business has been followed in particular cases. When applied to communications sent by post, Section 114 enables the Court to presume that in the common course of natural events, the communication would have been delivered at the address of the addressee. But the presumption that is raised under Section 27 of the G.C. Act is a far stronger presumption. Further, while Section 114 of Evidence Act refers to a general presumption, Section 27 refers to a specific presumption...‖ "14. Section 27 gives rise to a presumption that service of notice has been effected when it is sent to the correct address by registered post.... Unless and until the contrary is proved by the addressee, service of notice is deemed to have been effected at the time at which the letter would have been delivered in the ordinary course of business. This Court has already held that when a notice is sent by registered post and is returned with a postal endorsement 'refused'....
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.... settled that filing of an eviction suit under the general law itself is a notice to quit on the tenant. Therefore, we have no hesitation to hold that no notice to quit was necessary under Section 106 of the Transfer of Property Act in order to enable the respondent to get a decree of eviction against the appellant." 16.2 In Jeevan Diesels & Electricals Ltd. v. M/s Jasbir Singh Chadha (HUF), 182 (2011) DLT 402, this Court held that even assuming that the notice of termination was not served, the tenancy shall stand terminated on filing of the suit. The relevant portion of the judgment reads as under:- "7. The second argument that the legal notice dated 15.7.2006 was not received by the Appellant, and consequently the tenancy cannot be said to have been validly terminated, is also an argument without substance and there are many reasons for rejecting this argument. These reasons are as follows: xxx (ii) The Supreme Court in the case of Nopany Investments (P) Ltd. v. Santokh Singh (HUF), 2008 (2) SCC 728 has held that the tenancy would stand terminated under general law on filing of a suit for eviction. Accordingly, in view of the decision in the case of....
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....ation of tenancy is permitted on the ground that the legal notice did not validly terminate the tenancy by a notice ending with the expiry of the tenancy month, as long as a period of 15 days was otherwise given to the tenant to vacate the property. The intention of Legislature is therefore clear that technical objections should not be permitted to defeat substantial justice and the suit for possession of tenanted premises once the tenant has a period of 15 days for vacating the tenanted premises. (iv) ...Once the summons in the suit alongwith documents were served upon the appellant/tenant, the appellant/tenant would obviously have received such notice. Even if we take this date when the appellant/tenant received a copy of the notice when served with the documents in the suit, once again, the period of 15 days has expired thereafter and keeping the legislative intendment of amended Section 106 in view, the appellant therefore cannot argue that the tenancy is not terminated and he did not get a period of 15 days to vacate the premises. I am in view of this position consequently entitled to take notice of subsequent events under Order 7 Rule 7 CPC, and taking notice of the ....
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....he learned Trial Court has relied upon judgment titled as Nopany Investment (P) Ltd. v. Santokh Singh(HUF), (2008) 2 SCC 728 wherein the Hon'ble Supreme Court has inter-alia held that:- "22. In any view of the matter, it is well settled that filing of an eviction suit under the general law itself is a notice to quit on the tenant. Therefore, we have no hesitation to hold that no notice to quit was necessary under Section 106 of the Transfer of Property Act in order to enable the respondent to get a decree of eviction against the appellant." The Court is of the considered opinion that law as relied upon by the learned Trial Court with respect to presuming the service upon the appellant, does not suffer from any legal infirmity or illegality." 3. I do not find any error in the reasoning of the Courts below in holding that the notice terminating tenancy can be said to have been served upon the appellant. 4. In any case, the arguments as raised by learned Counsel for the appellant has been dealt with by me and negated in the case of M/s. Jeevan Diesels and Electricals Ltd. v. M/s. Jasbir Singh Chadha (HUF) and Anr., RFA 179/2011 decided on 25.3.2....
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....ate it was filed inasmuch as on the date of filing of the suit the tenancy was not determined. In response to these issues, on behalf of the appellant/plaintiff/landlord it is argued that technicalities should not be allowed to prevail over substantive law i.e. keeping the object of Section 106 of the Transfer of Property Act, 1882 (hereinafter referred to as "the Act') in view; and more so after its recent amendment by Act 3 of 2003; and once the tenant otherwise has notice of 15 days to vacate the premises, the suit for possession ought not to be dismissed and the subsequent event of the tenancy being terminated during the pendency of the suit ought to be taken note of under Order 7 Rule 7 of Code of Civil Procedure, 1908 (CPC), keeping the requirement of substantial justice in mind. 2. The admitted facts between the parties are that the appellant is the owner/landlord of the premises comprising of first floor and mezzanine floor of the property bearing No.6/90, P Block, Connaught Circus, New Delhi, of which the respondent No.1 is the tenant and the respondent Nos.2 and 3 are the legal sub-tenants. It is also not in issue; inasmuch as it is admitted; that the suit premis....
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.... defences of suits not being maintainable as the notices were not valid notices under Section 106 of the Act as such notices did not terminate the tenancy with the expiry of the tenancy month, the Legislature thankfully became alive to this undesirable position of prevailing of technicalities over substantial justice, and therefore amended the Act by The Transfer of Property (Amendment) Act, 2002. 4. The intention of the legislature in bringing about the amendment to Section 106 of the Act is very clear by virtue of sub- section (3) in that all technical defences to the notice under Section 106 of the Act on the ground that the same was an invalid notice as the monthly tenancy was not terminated by a notice ending with the tenancy month, were done away with as long as a 15 day notice period was given to the tenant to vacate the premises. Suits for possession thus could not be dismissed on the ground of invalidity of the notice terminating the tenancy. Obviously, this amendment was in accordance with real intention and spirit of Section 106 of the Act whereby the tenant was only required to be given a reasonable time to vacate the property. The legislature considers this re....
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.... facts ordinarily will require trial, however, where the subsequent events bring out an admitted or categorical position they can be used to pass appropriate orders on the basis of such admitted subsequent events/facts. 7. So far as the facts of the present case are concerned, the same show that it is apposite that this Court applies the principle of Order 7 Rule 7 CPC in view of the admitted facts, and more particularly keeping in mind the intention of legislature in amending Section 106 of the Act by Act 3 of 2003. Once we keep the legislative intention in focus that a tenant who has no right to stay in the tenanted premises, because there is no registered lease for a fixed period entitling the tenant to stay in the premises, once a 15 days notice period is given to the tenant to vacate the premises, the conclusion that the suit for possession must not be dismissed but decreed, falls in place. Therefore, even if the notice by which tenancy is terminated prior to the filing of the suit is held to be invalid, then, in my opinion, service of summons of the suit for eviction of the tenant showing the categorical intention of the landlord asking the tenant to vacate the tenan....
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....pon any immovable property by the licence of the person in possession thereof shall be permitted to deny that such person had a title to such possession at the time when such licence was given." 17.3 In Shri Ram Pasricha v. Jagannath, AIR 1976 SC 2335, the Supreme Court held that in a suit for eviction, the tenant is estopped from questioning the title of landlord. The Supreme Court held as under:- "15. ...The tenant in such a suit is estopped from questioning the title of the landlord under Section 116 of the Evidence Act. The tenant cannot deny that the landlord had title to the premises at the commencement of the tenancy. Under the general law, in a suit between landlord and tenant, the question of title to the leased property is irrelevant. It is, therefore, inconceivable to throw out the suit on account of non-pleading of other co-owners as such." 17.4 In D. Satyanarayana v. P. Jagadish, AIR 1987 SC 2192, the Supreme Court held as under:- "3. ...Section 116 of the Evidence Act provides that no tenant of immovable property shall, during the continuance of the tenancy, be permitted to deny that the landlord of such tenant had, at the beginning of the tena....
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....v. Lt. Col. Inder Maira, 80 (1999) DLT 679, this Court held as under:- "41. ...the doctrine of tenant estoppel, which continues to operate even after the termination of the tenancy, debars a tenant who had been let into possession by a landlord, from disputing the latter's title or pleading adverse possession, without first openly and actually surrendering possession of the tenanted premises and restoring them to the landlord." 18. Forfeiture of lease under Section 111(g)(2) of the Transfer of Property Act. 18.1 Section 111(g)(2) of the Transfer of Property Act provides that the lease shall determine upon the Lessee renouncing his character by setting up a title in a third person. The effect of such a disclaimer is that it brings to an end the relationship of landlord and tenant and such a tenant is liable to be evicted forthwith. 18.2 In Sheela v. Firm Prahlad Rai Prem Prakash, (2002) 3 SCC 375, the Supreme Court held as under:- "12. ...Section 116 of the Evidence Act embodies therein a rule of estoppel. No tenant of immovable property, or person claiming through such tenant, shall, during the continuance of the tenancy, be permitted to deny that the....
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....unambiguous. Hill and Redman in Law of Landlord and Tenant (17th Edn., para 382, at pp. 445-446) dealing with "acts which prejudice lessor's title" state that there is implied in every lease a condition that the lessee shall not do anything that may prejudice the title of the lessor; and that if this is done the lessor may re-enter for breach of this implied condition. Thus, it is a cause of forfeiture if the lessee denies the title of the lessor by alleging that the title of the landlord is in himself or another; or if he assists a stranger to set up an adverse title or delivers the premises to him in order to enable him to set up a title..." (Emphasis supplied) 18.3 In S. Makhan Singh v. Amarjeet Bali, 154 (2008) DLT 211, this Court held as under:- "5. ...Section 111(g) of Transfer of Property Act provides that a lease of immovable properties come to an end by forfeiture in case of lessee renouncing his character as such by setting up a title in a third person or claiming title in himself. Thus, once a lease stands forfeited by operation of law, the person in occupation of the premises cannot take benefit of the legal tenancy. This provision under Section 111(g) i....
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....ssession has to establish that he has such a right. The observations of the Supreme Court are as under:- "66. A title suit for possession has two parts - first, adjudication of title, and second, adjudication of possession. If the title dispute is removed and the title is established in one or the other, then, in effect, it becomes a suit for ejectment where the defendant must plead and prove why he must not be ejected. 67. In an action for recovery of possession of immovable property, or for protecting possession thereof, upon the legal title to the property being established, the possession or occupation of the property by a person other than the holder of the legal title will be presumed to have been under and in subordination to the legal title, and it will be for the person resisting a claim for recovery of possession or claiming a right to continue in possession, to establish that he has such a right. To put it differently, wherever pleadings and documents establish title to a particular property and possession is in question, it will be for the person in possession to give sufficiently detailed pleadings, particulars and documents to support his claim in or....
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....ent to continuation in the case of lease for a fixed term which had expired by efflux of time, or in the case of a tenancy from month-to-month, about the valid termination thereof. In case the lessee claims a right of renewal under a clause therefore, he must bring a separate suit for specific performance of the renewal clause within the limitation prescribed for such a suit. ..." "48. ...The cause of action in the two is different. In a suit for possession it is the factum of ownership and the cause of action is a trespass on a particular day by dispossession of the owner. In a suit for ejectment, ordinarily there is no question of title. The tenant is estopped from denying the landlord's title and the cause of action is basically the termination on a particular day of the tenancy and the question is only about the form of the tenancy beyond that date -- one at sufferance or one from month-to-month. 49. To put it differently, in the former case there is no dispute either about title or about the permissive nature of occupation whereas in the latter case the dispute is about title and there is no question of the possession being permissive. Here it is hostile.....
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.... (D.B) and Ram Murthi v. Bhola Nath,1982 (22) DLT 426 and further contended that the defendant has discharged the initial burden of proof by denying the receipt of the notice in its written statement, accompanied by an affidavit, the burden to prove the valid service and the receipt of notice now shifts on the plaintiff, which can only be discharged by leading evidence in this regard. 11. In support of proof of service of Notice of termination of tenancy plaintiff has placed on record the copy of notice dated 09.10.2007, original postal receipt in respect of the notice dated 09.10.07, original AD, Copy of the letter dated 24.10.07, original postal receipts in respect of the above letter. I have perused the record and found that all the documents placed on record are bearing correct address of the defendant. 12. In view of the record placed by the plaintiff and in light of the fact that the notice was dispatched to the defendant's correct address through registered post and the AD card was also received back from the defendant, the denial in respect of the said notice by the defendant has no value. The rebuttal in this case, does not go beyond a bald and interested....
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....udgment on the ground that he would show during the trial that he had not received the notice. The relevant findings of the Division Bench are reproduced hereunder:- "15. Coming to the presumption of service of notice dated 09.08.2008, the notice was sent to Hill Elliott by registered AD post, speed AD post, UPC and by courier service. It was specifically pleaded that the Hill Elliott had refused to accept the notice sent by the courier service whereas a confirmation was given by the Postal Authorities regarding delivery of the notice (article through postal receipt No. 4527 and 4528 dated 9.8.2008) on 12.08.2008. ...There is no dispute about the proposition of law that the presumption of service of notice under Section 27 of the General Clauses Act is a rebuttable presumption. However, the facts of each case have to be seen to reach the conclusion whether any rebuttal is forthcoming from the party who is deemed to have been served. We have already referred to hereinbefore as to how the notice terminating the tenancy was sent to Hill Elliott. A perusal of the relevant paragraphs of the written statement filed by Hill Elliott would show that it had simply denied the receipt....
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....Dalip Singh v. State of U.P., (2010) 2 SCC 114, the Supreme Court observed that a new creed of litigants have cropped up in the last 40 years who do not have any respect for truth and shamelessly resort to falsehood and unethical means for achieving their goals. The observations of the Supreme Court are as under:- "1. For many centuries, Indian society cherished two basic values of life i.e., 'Satya' (truth) and 'Ahimsa' (non-violence). Mahavir, Gautam Buddha and Mahatma Gandhi guided the people to ingrain these values in their daily life. Truth constituted an integral part of the justice-delivery system which was in vogue in the pre-Independence era and the people used to feel proud to tell truth in the courts irrespective of the consequences. However, post- Independence period has seen drastic changes in our value system. The materialism has over shadowed the old ethos and the quest for personal gain has become so intense that those involved in litigation do not hesitate to take shelter of falsehood, misrepresentation and suppression of facts in the court proceedings. 2. In last 40 years, a new creed of litigants has cropped up. Those who belong ....
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.... to file suits for eviction and profits with a view to see how far the patience of the landlords may last or how far the landlords or their legal representatives could fight the tenants- particularly if the tenant had stopped payment of admitted rents. It is rather unfortunate that even public sector bodies like the appellant are taking such postures and driving landlords from pillar to post..." (Emphasis supplied) 21. Continuation of Possession upon Payment of Market Rent 21.1 In Mohammad Ahmad v. Atma Ram Chauhan, (2011) 7 SCC 755, the Supreme Court observed that the motivation of the tenant to litigate with the landlord is that he doesn't want to pay the prevalent market rate of rent to the landlord and continues to pay the rent fixed years ago. The observation of the Supreme Court is as under:- "1. .... One half of the lis between landlord and tenant would not reach courts, if tenant agrees to pay the present prevalent market rate of rent of the tenanted premises to the landlord. In that case landlord would also be satisfied that he is getting adequate, just and proper return on the property. But the trend in the litigation between landlord and tenant shows ot....
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....ers, 174 (2010) DLT 266, this Court held as under:- "48. Every party is expected to comply with the law and the contract that he has entered into and his failure to do so and his causing unnecessary litigation should mean a penalty and not a benefit for him. Our Courts are overloaded because it is widely believed that to force the other party to start litigation will in the end be beneficial for the wrong- doer. 49. To tackle Court delays, the motivation for raising disputes and delaying litigation must be removed. A party who makes a claim or raises a dispute before a Court must know that whenever the case is decided, and if it is decided against him, not only all benefits that he may have received in the meantime will have to be paid back, but all losses of the other party will also have to be compensated. Unless all losses and deprivations of the successful party have been fully compensated for, the Court fails in its task of doing justice. If Courts pass orders directing payment of realistic costs and compensation that sufficiently make up for the losses of the other, the motivation behind raising of disputes will be removed and the Courts will be freed of a l....
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....ion altogether." "191. In consonance with the principles of equity, justice and good conscience Judges should ensure that the legal process is not abused by the litigants in any manner. The court should never permit a litigant to perpetuate illegality by abusing the legal process. It is the bounden duty of the court to ensure that dishonesty and any attempt to abuse the legal process must be effectively curbed and the court must ensure that there is no wrongful, unauthorised or unjust gain for anyone by the abuse of the process of the court. One way to curb this tendency is to impose realistic costs, which the respondent or the defendant has in fact incurred in order to defend himself in the legal proceedings. The courts would be fully justified even imposing punitive costs where legal process has been abused. No one should be permitted to use the judicial process for earning undeserved gains or unjust profits. The court must effectively discourage fraudulent, unscrupulous and dishonest litigation. 192. The court's constant endeavour must be to ensure that everyone gets just and fair treatment. The court while rendering justice must adopt a pragmatic approach and in app....
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....the judgment) in paragraph 52 (C, D and G) of the judgment dealt with the aspect of imposition of actual or realistic costs which are equally relevant for this case..." "35. Unless wrongdoers are denied profit or undue benefit from frivolous litigations, it would be difficult to control frivolous and uncalled for litigations...We need to decide cases while keeping pragmatic realities in view. We have to ensure that unscrupulous litigant is not permitted to derive any benefit by abusing the judicial process." "37. False averments of facts and untenable contentions are serious problems faced by our courts. The other problem is that litigants deliberately create confusion by introducing irrelevant and minimally relevant facts and documents. The court cannot reject such claims, defences and pleas at the first look. It may take quite sometime, at times years, before the court is able to see through, discern and reach to the truth. More often than not, they appear attractive at first blush and only on a deeper examination the irrelevance and hollowness of those pleadings and documents come to light. 38. Our courts are usually short of time because of huge pende....
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....the courts may consider ordering prosecution otherwise it may not be possible to maintain purity and sanctity of judicial proceedings. D. The Court must adopt realistic and pragmatic approach in granting mesne profits. The Court must carefully keep in view the ground realities while granting mesne profits." E and F xxx xxx xxx "G. The principle of restitution be fully applied in a pragmatic manner in order to do real and substantial justice." "54. While imposing costs we have to take into consideration pragmatic realities and be realistic what the Defendants or the Respondents had to actually incur in contesting the litigation before different courts. We have to also broadly take into consideration the prevalent fee structure of the lawyers and other miscellaneous expenses which have to be incurred towards drafting and filing of the counter affidavit, miscellaneous charges towards typing, photocopying, court fee etc. 55. The other factor which should not be forgotten while imposing costs is for how long the Defendants or Respondents were compelled to contest and defend the litigation in various courts. The Appellants in the instant case ....
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....ssionals to prolong the litigation so as to deprive the rights of a person and enjoy the fruits of illegalities. I consider that in such cases where Court finds that using the Courts as a tool, a litigant has perpetuated illegalities or has perpetuated an illegal possession, the Court must impose costs on such litigants which should be equal to the benefits derived by the litigant and harm and deprivation suffered by the rightful person so as to check the frivolous litigation and prevent the people from reaping a rich harvest of illegal acts through the Courts. One of the aim of every judicial system has to be to discourage unjust enrichment using Courts as a tool. The costs imposed by the Courts must in all cases should be the real costs equal to deprivation suffered by the rightful person." "7. ... The petitioners are, therefore, liable to pay costs which is equivalent to the average market rent of 292 months to the Respondent No. 1 and which comes to Rs.14,60,000 apart from litigation expenses and Counsel's fee throughout which is assessed at Rs. 50,000/-. The petition is hereby dismissed with costs of Rs.15,10,000/- to be recovered from the petitioners jointly and seve....
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....tenanted premises only when the Courts pass a decree for possession against them. Considering the facts of the case, it is high time that a strict message is sent to those tenants who illegally continue to occupy the tenanted premises by raising frivolous defences only and only to continue in possession of the tenanted premises. Such incorrigible tenants should be appropriately burdened with penal costs ...." "7. Now, the issue is with respect to costs. I have already given a preface at the very beginning of this judgment. This preface, is a preface which was necessary inasmuch as there is a flood of litigation unnecessarily burdening the Courts only because obdurate tenants refuse to vacate the tenanted premises even after their tenancy period expires by efflux of time or the monthly tenancy has been brought to an end by service of a notice under Section 106 of Transfer of Property Act, 1882. In the present case, the tenant is not a poor or a middle class person, but is a bank with huge resources and hence can contest litigation to the hilt. It is therefore necessary that I strictly apply the ratio of the Supreme Court judgment in the case of Ram Rameshwari Devi and Other....
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....e foundation of the truth. 34. In Mohanlal Shamji Soni v. Union of India, 1991 Supp (1) SCC 271, this Court observed that in such a situation a question that arises for consideration is whether the presiding officer of a Court should simply sit as a mere umpire at a contest between two parties and declare at the end of the combat who has won and who has lost or is there not any legal duty of his own, independent of the parties, to take an active role in the proceedings in finding the truth and administering justice? It is a well accepted and settled principle that a Court must discharge its statutory functions-whether discretionary or obligatory-according to law in dispensing justice because it is the duty of a Court not only to do justice but also to ensure that justice is being done. 35. What people expect is that the Court should discharge its obligation to find out where in fact the truth lies. Right from inception of the judicial system it has been accepted that discovery, vindication and establishment of truth are the main purposes underlying the existence of the courts of justice. 36. In Ritesh Tewari v. State of U.P., (2010) 10 SCC 677 this Court ....
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....elivery and answering of interrogatories, the admission of documents and facts, and the discovery, inspection, production, impounding and return of documents or other material objects producible as evidence; (b) issue summons to persons whose attendance is required either to give evidence or to produce documents or such other objects as aforesaid; (c) order any fact to be proved by affidavit 43. "Satyameva Jayate" (Literally: "Truth Stands Invincible") is a mantra from the ancient scripture Mundaka Upanishad. Upon independence of India, it was adopted as the national motto of India. It is inscribed in Devanagari script at the base of the national emblem. The meaning of full mantra is as follows: "Truth alone triumphs; not falsehood. Through truth the divine path is spread out by which the sages whose desires have been completely fulfilled, reach where that supreme treasure of Truth resides. 44. Malimath Committee on Judicial Reforms heavily relied on the fact that in discovering truth, the judges of all Courts need to play an active role. The Committee observed thus: 2.2... "In the adversarial system truth is supposed to emerge ....
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.... 45. In Chandra Shashi v. Anil Kumar Verma, (1995) 1 SCC 421, to enable the Courts to ward off unjustified interference in their working, those who indulge in immoral acts like perjury, pre-variation and motivated falsehoods have to be appropriately dealt with, without which it would not be possible for any Court to administer justice in the true sense and to the satisfaction of those who approach it in the hope that truth would ultimately prevail. People would have faith in Courts when they would find that truth alone triumphs in Courts. 46. Truth has been foundation of other judicial systems, such as, the United States of America, the United Kingdom and other countries. 47. In James v. Giles et al. v. State of Maryland, (386 U.S. 66, 87, S. Ct. 793), the US Supreme Court, in ruling on the conduct of prosecution in suppressing evidence favourable to the Defendants and use of perjured testimony held that such rules existed for a purpose as a necessary component of the search for truth and justice that judges, like prosecutors must undertake. It further held that the State's obligation under the Due Process Clause "is not to convict, but to see that so far a....
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.... that does not include the pursuit of material wealth or publicity; it is a way of life based on spiritual wealth; it is a way of life that includes an objective and impartial search for truth." 51. In the administration of justice, judges and lawyers play equal roles. Like judges, lawyers also must ensure that truth triumphs in the administration of justice. 52. Truth is the foundation of justice. It must be the endeavour of all the judicial officers and judges to ascertain truth in every matter and no stone should be left unturned in achieving this object. Courts must give greater emphasis on the veracity of pleadings and documents in order to ascertain the truth." "72. The Court will examine the pleadings for specificity as also the supporting material for sufficiency and then pass appropriate orders. 73. Discovery and production of documents and answers to interrogatories, together with an approach of considering what in ordinary course of human affairs is more likely to have been the probability, will prevent many a false claims or defences from sailing beyond the stage for issues. 74. If the pleadings do not give sufficient d....
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....uced, then the Court must carefully look into it while deciding a case and insist that those who approach the Court must approach it with clean hands." "FALSE AND IRRELEVANT PLEAS: 41. The appellant is also guilty of introducing untenable pleas. The plea of adverse possession which has no foundation or basis in the facts and circumstances of the case was introduced to gain undue benefit. The Court must be cautious in granting relief to a party guilty of deliberately introducing irrelevant and untenable pleas responsible for creating unnecessary confusion by introducing such documents and pleas. These factors must be taken into consideration while granting relief and/or imposing the costs." The Supreme Court laid down the following principles:- "42. On the facts of the present case, following principles emerge: 1. It is the bounden duty of the Court to uphold the truth and do justice. 2. Every litigant is expected to state truth before the law court whether it is pleadings, affidavits or evidence. Dishonest and unscrupulous litigants have no place in law courts. 3. The ultimate object of the judicial proceedings is to di....
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....ence Act, 1872 reads as under: "Section 165. Judge's power to put questions or order production. - The Judge may, in order to discover or obtain proper proof of relevant facts, ask any question he pleases, in any form, at any time, of any witness, or of the parties, about any fact relevant or irrelevant; and may order the production of any document or thing; and neither the parties nor their agents shall be entitled to make any objection to any such question or order, nor, without the leave of the Court, to cross- examine any witness upon any answer given in reply to any such question: Provided that the judgment must be based upon facts declared by this Act to be relevant, and duly proved: Provided also that this section shall not authorize any Judge to compel any witness to answer any question or to produce any document which such witness would be entitled to refuse to answer or produce under Sections 121 to 131, both inclusive, if the question were asked or the document were called for by the adverse party; nor shall the Judge ask any question which it would be improper for any other person to ask under Section 148 or 149 ; nor shall he dispense wit....
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....been determined either by efflux of time or by notice to quit would not create a tenancy so as to confer on the erstwhile tenant the status of a tenant or a right to be in possession. 26.3 Notice of termination of lease under Section 106 of the Transfer of Property Act sent by registered post to the tenant is deemed to be served under Section 27 of the General Clauses Act, 1897 and Section 114 of the Indian Evidence Act, 1872. 26.4 The object of the termination notice under Section 106 of the Transfer of Property Act is to communicate the intention of the landlord that he wants the premises back and to give 15 days' time to vacate. Such notice is not a pleading but a mere communication of the intention of the recipient. Such notice is to be liberally construed as the tenant's only right is to get notice of 15 days to vacate. The tenant is under a statutory obligation to vacate the subject property on the expiry of 15 days of the notice. 26.5 A suit for ejectment is different from a title suit for possession against a trespasser. In a suit for possession against a trespasser, title can be in dispute but in a suit for ejectment against an erstwhile tenant, ordinarily there is n....
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....a lessee. No issue arises on vague pleadings. A vague denial of the receipt of a notice to quit is not sufficient to raise an issue. To rebut the presumption of service of a notice to quit, the defendant has to plead material particulars in the written statement such as where after receiving the plaint and the documents, the defendant has checked-up with the Post-Office and has obtained a certificate that the postal receipt filed by the plaintiff was forged and was not issued by the concerned Post Office. 26.8 A self-serving denial by the defendant and more so in these types of cases, cannot hold back the Court from exercising its jurisdiction to decree a suit under Order XII Rule 6 of the Code of Civil Procedure. Raising a plea of non- receipt of notice to quit and seeking an issue on it is obviously to drag on the litigation and keep on holding to the suit property without having to pay the current market rentals, is not sufficient to raise an issue and, therefore, liable to be rejected. 26.9 If such a plea of denial of notice is treated as sufficient to non-suit the plaintiff, the plaintiff will have serve a fresh notice to quit and then bring a fresh suit where again the ....
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....provides that no tenant of immovable property shall, during the continuance of the tenancy, be permitted to deny the title of the landlord meaning thereby that so long as the tenant has not surrendered the possession, he cannot dispute the title of the landlord. Howsoever, defective the title of the landlord may be, a tenant is not permitted to dispute the same unless he has surrendered the possession of his landlord. 26.14 A lease of a immovable property is determined by forfeiture in case the lessee renounces his character by setting up a title in a third person. The effect of such a disclaimer is that it brings to an end the relationship of landlord and tenant and such a tenant cannot continue in possession. Section 111(g)(2) of Transfer of Property Act, 1882 is based on public policy and the principle of estoppel. 26.15 There is a flood of litigation unnecessarily burdening the Courts only because obdurate tenants refuse to vacate the tenanted premises even after their tenancy period expires by efflux of time or the monthly tenancy has been brought to an end by service of a notice under Section 106 of Transfer of Property Act, 1882. It has become quite common for the tenants....
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....this country, consider it an inherent right not to vacate the premises even after either expiry of tenancy period by efflux of time or after their tenancy is terminated by means of a notice under Section 106 of Transfer of Property Act, 1882. Such tenants feel that they ought to vacate the tenanted premises only when the Courts pass a decree for possession against them. The tenants who illegally continue to occupy the tenanted premises by raising frivolous defences should be appropriately burdened with penal costs. 26.20 Dishonest and unnecessary litigations are a huge strain on the judicial system. The Courts are continued to be flooded with litigation with false and incoherent pleas and tainted evidence led by the parties. The judicial system in the country is choked and such litigants are consuming courts' time for a wrong cause. Efforts are made by the parties to steal a march over their rivals by resorting to false and incoherent statements made before the Court. 26.21 Truth should be the guiding star in the entire judicial process and it must be the endeavour of the court to ascertain the truth in every matter. Truth is the foundation of justice. Section 165 casts a duty o....
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....tain purity and sanctity of judicial proceedings. The parties raise fanciful claims and contests because the Courts are reluctant to order prosecution. 27. Findings Applying the aforesaid principles of law to the facts of the present case, the findings of this Court are as under:- 27.1 There is an unambiguous, clear and unconditional admission of the appellant with respect to the relationship of the landlord and tenant between the parties as well as the expiry of term of the registered lease deed dated 7th November, 2006 on 6th November, 2008. In the written statement before the learned Trial Court, the appellant has admitted the registered lease deed dated 7th November, 2006 between the parties, which expired on 6th November, 2008. The appellant has also admitted payment of rent of the suit property to the respondent. The appellant has further pleaded that in November 2008, the appellant requested the respondent for a further lease of two years. There is no renewal clause in the lease deed. 27.2 The appellant has denied the receipt of the notice of termination dated 20th June, 2009 which was dispatched by registered post to the correct addresses of the appellant at Connaught....
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....ircumstances of the particular case in a pragmatic manner. Raising a plea of non-receipt of notice to quit and seeking an issue on it is obviously to drag on the litigation and to keep on holding to the suit premises. It is not that the defendant has offered to deposit in Court the correct market rent of the suit property. 27.5 The appellant's plea disputing the title of the respondent is barred by Section 116 of the Indian Evidence Act. The appellant is estopped from disputing the title of a landlord so long as he is in possession. As such, the objection of the appellant as to the title of the respondent cannot be looked into. 27.6 The appellant's lease also stands forfeited under Section 111(g)(2) of the Transfer of Property Act, 1882 on account of renunciation of his character by setting up a title in a third person. The effect of renunciation is to bring an end to the relationship of landlord and tenant and the appellant has made itself liable to be evicted on this ground as well. 27.7 Even if the appellant's claim for renewal of lease for a period of two years in 2008 is taken into consideration, the said period of two years has also expired as back as on 6th November, 2....
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....ber, 2008. The lease deed dated 7th November, 2006 was registered before the Sub-Registrar. There is no renewal clause in the registered lease deed dated 7th November, 2006. The lease expired on 6th November, 2008. I have no right to stay in this property as the lease deed dated 7th November, 2006 has expired on 6th November, 2008. However, I have been repeatedly requesting the respondent to renew the lease but the respondent has not renewed. However, the respondent orally told me that till the time she is fighting with her relatives, the appellant can stay in the suit property." (Emphasis sup lied) 27.11 This Court is satisfied that admissions of the appellant are sufficient to pass a decree of possession against the appellant under Order XII Rule 6 of the Code of Civil Procedure inasmuch as the relationship of landlord and defendant is admitted, the term of the registered lease has expired as back as on 6th November, 2008 and with respect to the notice of termination dated 20th June, 2009, there is a legal presumption under Section 27 of the General Clauses Act, 1897 and Section 114(f) of the Indian Evidence Act, 1872 read with Section 51 of the Compani....