High CourtDivision BenchAppeal dismissed.

GOPI KRISHNA KANORIA v. DRAUPADI SAHAYA & ORS.

Case / Petition Number:Civil Appeal No. 31 of 1967
Neutral Citation:G.K. Kanoria v. D. Sahaya, (1970) 3 SCR 826

Case Details & Bench

Court
High Court
Hon'ble Judges
  • J. C. Shah
  • K. S. Hegde
  • A. N. Grover
Judgment Date
1970-02-23
Court Decision / Holding
Appeal dismissed with costs.
Final Disposition
Appeal dismissed.

Parties to the Case

Appellants / Petitioners

  • Gopi Krishna Kanoria

Respondents

  • Draupadi Sahaya
  • and others (ORS)

Legal Representation & Advocates

Counsels for Petitioners

  • • B. Sen
  • • B. P. Maheshwari

Counsels for Respondents

  • • Sarjoo Prasad
  • • U. S. Prasad
  • • Santok Singh
  • • U. P. Singh

Case Synopsis & Summary

G.K. Kanoria v. D. Sahaya concerns the fate of a Mokurrari (permanent) tenancy created in 1885 and the remedy available when rent payments were defaulted. The registered instrument granted the proprietor the power to cancel the Mokurrari patta on default in payment of four successive kists. After the respondents failed to pay four kists due in 1952–1953, the appellant served a notice of termination and cancellation on June 22, 1953. The suit for ejectment and arrears was filed in September 1953; during the pendency, the tenure vested in the State under the Bihar Land Reforms Act, 1950, with effect from July 26, 1954. The trial court held that, although there was a breach of a rent covenant, the notice under s. 155 of the Bihar Tenancy Act had not been served in the prescribed manner, so the respondents remained tenure-holders until vesting and the appellant was not entitled to full compensation. The High Court affirmed. The appellant pressed that s. 10 of the Bihar Tenancy Act, and its proviso, insulated pre‑Act contracts from the Act’s consistency requirements, so the s. 155 notice should not be a precondition to suit. The Supreme Court rejected this argument, holding that s. 10 does not dispense with the mandatory notice under s. 155, and that even contracts entered before the Act must satisfy s. 155 before a suit can be entertained. Consequently, the appellant’s claim to full compensation from the State was rejected and the appeal dismissed with costs.

Provisions of Law Cited

Bihar Tenancy Act, 1885: ss. 10, 155, 178(1)(c)Bihar Land Reforms Act, 1950

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contended that s. 10 provides a protective framework for permanent tenures. The proviso to s. 10 enshrines that conditions imposed by the Act are not applicable to contracts entered before the Act, thereby permitting ejectment on breach without strictly complying with the notice-and-remedy sequence prescribed by s. 155. Since the Mokurrari instrument was executed prior to the Act, the appellant argued that s. 10 should exempt him from the s. 155 notice requirement and that ejectment could proceed under the contract, with the appellant seeking full compensation from the State after vesting. The argument emphasized that s. 178(1)(c) cannot override s. 10 and that vesting in the State should lead to full compensation from the State.

Contentions of Respondents

The respondents argued that s. 155 imposes a bar to entertaining a suit unless the landlord serves a prescribed notice detailing the breach and, where remediable, requires remedy and payment of reasonable compensation. It was contended that the notice under s. 155 was mandatory, and the breach of the rent covenant could not support ejectment unless proper notice was given, even though the contract pre-dates the Act. The court’s reliance on s. 155 and the procedural safeguards were urged as controlling, with the vesting of tenure in the State not relieving the appellant of the statutory preconditions for suit.

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Extracted Judgment Text

Exact text extracted from official judgment records.

826 ####,, **GOPI** **KRISHNA** **KANORIA** _v._ **DRAUPADI SAHAYA** **&** **ORS.** _February_ 23, 1970 [J. C. SHAH, K. S. HEGDE AND A. N. GROVER, JJ.] _Bihar Tenancy Act,_ 1885, _ss._ 10, 155 _and_ _178(1)(c)-Bihar Land Re-_ _**.forms Act, 1950--Mokurrari tenure held under registered document prior**_ _**to**_ _**Act of**_ **1885---0n** _**failure**_ _**to**_ _**observe conditions**_ _**of**_ _**tenure**_ _**under**_ _**the**_ _**ins-**_ _**trument notice given for cancellation**_ _**of**_ _**tenure and suit filed**_ _**}or**_ _**eject-**_ _**nient,,.-Bihar**_ _**Act**_ _**of**_ **1950** _**vesting tenure in**_ _**State-Whether**_ _**clai1n**_ _**of**_ _**pro-**_ _**prietor**_ _**to**_ _**full compensation**_ _**lay**_ _**when**_ hi~ _**notice**_ _**of**_ _**cancellation**_ _**of**_ _**tenure**_ _did not comply with terms_ _of_ _s._ 155 _of_ 1885 _Act-Effect_ _of_ _ss._ 10 _and_ 178(1)(c). The respondents held from the ·appellant certain land on Mokurrari tenure (permanent lease) created under a registered instrument dated •October 29, 1885. According to the said document the proprietor was <:ompetent to cancel the lease in the event of a default in the payment of four successive kists by the tenure holder. On the failure of the respondents to pay four successive kists the appellant on June 22, 1953 served **on them a notice terminating** **and** **cancelling the** **Mokurrari** **tenure. During** the pendency of the suit which was filed by the appellant in September Il953 it was declared that the Mokurrari tenure became vested in the State of Bihar with effect from July 26, 1954 under the provisions of the **Bihar Land Reforms Act, 1950.** **The** **plaint was amended** **and** **certain** parties were added. The appellant claimed that he was entitled to the **·entire** **compensation which** **was** **tO** **be** **·received** **from the** **State.** **The** **trial** court held that on account of the failure _df_ the appellant to give a notice to the respondents under s. 155 of the Bihar Tenancy Act, 1885 the respondeqts continued to be the tenure holders till the tenure vested in the State and therefore the appellant was not entitled to the full compensation. The High Court upheld the order of the trial court. In appeal by certificate the appellant relied on s. 10 of the Act which it was claimed made **-s.** **155** **inapplicable,** **in** **a** **case** **like the present,** **where** **the** **contract** **was** made before the Act of 1885. HELD : Section 10 simply provides tnat the holder of a permanent tenure shall not be ejected except on the ground that he has broken a condition on breach of which he is liable to be ejected under the terms of A B ### c **D** E F the contract. Section 178 ( 1 )( c) says categorically that even though the contract has been made before the passing of the Act the landlord cannot eject a tenant otherwise' than in accordance with its provisions. Section 155 **places a** **bar** **against a suit being entertained** **unless** **the** **requirements** **laid** down therein have been satisfied. Therefore even though under s. IO G the appellant became entitled to eject the respondents on account of the **breach** **of the condition relating to payment** **of** **rent** **the** **condition prece·** **dent** **for a** **suit** **being entertained by a court** **was** **the notice** **served** **in** **the** **prescribed** **manner** **speci'fying** **the** **breach** **v.rhich** **was** **capable** **of** **remedy** **and** **in** **which** **the** **tenant** **should have** **been** **required** **to** **remedy** **the** **same** **or** **in** **any** **case to** **pay** **·reasonable** **compensation for the** **breach.** **If** **the** **tenant** **had** **failed** **to comply** **within** **a reasonable** **time** **with** **that** **request** **then** **alone the suit** **was** **maintainable.** **Even** **if** **under** **the** **proviso** **to** **.s.** **10** **the** **H** **contract which** **was** **entered** **into before** **the** **commencement** **of** **the Act** **could contain conditions** **which** **\Vere** **inconsistent** **with** **the** **provisions of** the Act that did not dispense with the requirements of s. 155 of the Act G. _K._ KANORIA _v._ D. SAHAYA _(Grover,_ _J.)_ 827 A which had to be satisfied before any suit could be entertained. As the notice which had been served by the appellant did not comply with the provisions of s. _155_ the courts below rightly negatived his claim to the entire compensation nioru:y. (829 C-G] **B** CIVIL APPELLATE JURISDICTION: Civil Appeal No. 31 of 1967. Appeal from the judgment and decree dated November 27, 1961 of the Patna High Court in Appeal from Original Decree No. 459 of 1956. _B. Sen_ and _B._ _P._ _Maheshwari,_ for the appellant ### c Sarjoo Prasad, U. S. Prasad, Santok Singh and U. P. Singh, for respondent No. 1. _U._ _P._ _Singh,_ for respondent No. 11. The Judgment of the Court was delivered by **D** **E** F G **H** **Grover,** **J.** This is an appeal by certificate against a judg· ment of the Patna High Court in a suit instituted by the appellant for arrears of Mokurrari rent and cess with interest for four kists · and for khas possession by evicting the respondents. In the alternative the appellant asked for the payment of compensation money in respect of Mokurrari tenure which had vested in the State of Bihar under the Bihar Land Reforms Act 1950. By means of a registered instrument dated October 29, 1885 the then proprietor of four villages had created a Mokurrari tenure (permanent lease) in favour of Frederick Richard Simson and George Venes. The appellant had acquired the proprietory in· terest in the villages by purchase and similarly the respondents had acquired the Mokurrari tenure. In the registered instrument there # WaS a clause that in the {!Vent Of a default in payment of four SUC cessive kists the proprietor would be competent to cancel the Mokurrari patta. The respondents did not pay four successive kists which had become due in June 1952, September 1952, December 1952 and March 1953. On June 22, 1953 the appellant served a notice terminating and cancelling the Mokurrari tenure in terms of .the c.lause relating to cancellation. During the pendency of the smt which was filed by the appellant in September 1953 it was declared that the Mokurrari tenure became vested in t~e State of Bih:U- with effect from July 26, 1954 under the provisions of the B1har Land Reforms Act 1950. The plaint was amended and certain parties were added. The controversy was mainly confined to the question of pavment of compensation. According to the appellant he was entitled to the entire compensation which was to be received from 828 SUPREME COURT **REPORTS** **[1970)** 3 S.C.R. **A** the State. The respondents maintained that no notice had been given under s. 155 of the Bihar Tenancy Act 1885, hereinafter called the "Act", and, therefore, the appellant could not sue for ejectment. Before the trial court it was admitted that the appellant did not serve a notice as contemplated under s. 155 of the Act. It was, however, contended that section was not applicable. The trial court found that there had been a breach of the covenant **B** relating to payment of rent which had resulted in forfeiture but inasmuch as the appellant did not follow the procedure prescribed by s. 155 the respondents continued to be the tenure-holders till the tenure vested in the State. The appellant was, therefore, not ##### entitled to the entire compensation money including tht of the tenure. The High Court upheld the decision of the trial court on **C** the point. Section 10 of the Act is in the following terms : "A holder of a permanent tenure shall not be ejected by his landlord except on the ground that he has broken a condition on breach of which he is, under the terms of a contract between him and his landlord, liable to be ejected: Provided that where the contract is made after the commencement of this Act, the condition is not inconsistent with the provisions of this Act." Section 178(l)(c) provides that nothing in any contract between a landlord and a tenant made before or after the passing of the Act shall entitle a landlord to eject a tenant otherwise than in accordance with the provisions of the Act. Section 155(1) may also be reproduced. "A suit for the ejectment of tenllillt, on the ground#### ( a) ............................... . (b) that he has broken a condition on breach of which he is, under the terms of a contract between him and the landlord, liable to ejectment, Shall not be entertained unless the landlords has served, in the prescribed manner, a notice on the tenant specifying the particular misuse or breach complained of, and where the misuse or breach is capable of remedy, requiring the tenant to remedy the same, and, in any case, to pay reasonable compensation for the misuse or breach, and the tenAnt has failed to comply within a reasonable time with that request." It has been contended by Mr. B. Sen for the appellant that by virtue of the proviso to s. 10 the requirement of consistency **D** **E** **F** **G** **H** A B #### c D E F G G. K. KANORIA _v._ D. SAHAYA _(Grover, J.)_ 829 of conditions with the provisions of the Act is limited to contracts made after the commencement of the .Act. In the present case the registered instrument· was executed before the commencement of the Act. On a true construction of s. 10 and by necessary implication this freedom from the applicability of or consistency with the provisions of the Act is absolute and unqualified and the effect of the proviso is that any condition imposed by any of the provisfons of the Act is excluded whenever there is a case where the contract has been entered jnto before the commencement of the Act. It has been i;mphasised that s. 10 is a ·specific provisio11 relating to permanent tenures and it cannot be restricted or curtailed. by the general provisions of s. 178 ands. 155 of the Act. In this manner the applicability-of s. 155 has been sought to be excluded. Now s. 10 simply provides that the holder of a permanent tenure shall n.ot be ejected except on the ground that he ## has broken a condition on breach of which he is liable to be eject ed under the teims of the contract. Section 17 8(1 )( c) says categorically that even tho_ugh the contract has been made before the passing of the Act the landlord cannot eject a tenant otherwise than in accordance with its provisions. Section 155 places a bar against a suit being entertained unless the requirements laid down therein have been satisfied. Therefore even though under s. 10 the appellant became entitled to eject the respondents on account of the breach of the condition relating to paYITlent of rent the condition precedent for a suit being entertained by a court was the notice served in the prescribed manner specifying the breach which was capable of remedy and in which the tenant should have been required to remedy the same or in any case to pay reasonable compensation for the breach. If the tenant had failed to comply within a reasonable time with that request then alone the suit was maintainable. Even if under the proviso to s. 10 the contract which was entered into before .the commencement of the Act could contain conditions which were inconsistent with the provisions of the Act that did not dis!Jense with the requirements of s. 155 of !he Act whic_h .had to be satisfied before any suit could be entert~med. As the notice which had been served by the appellant did not comply with the provisions of s. 155 the courts below rightly negatived his claim to the entire compensation money. The appeal fails and is dismis8ed with costs. G.C. _Appeal dismissed._