High CourtSingle JudgeAppeal allowed; High Court’s ruling set aside; ...

Naibahu v. Ramnarayan

Case / Petition Number:Civil Appeal No. 25 of 1971
Neutral Citation:1978 SCR 723

Case Details & Bench

Court
High Court
Hon'ble Judges
  • P. K. Goswami
  • Jaswant Singh
Judgment Date
1977-10-14
Court Decision / Holding
Appeal allowed; the judgment and order of the Madhya Pradesh High Court are set aside; the orders of the lower courts are restored. The stay of execution is granted until 31 January 1978, subject to the respondents vacating peacefully and paying mesne profits of Rs. 170 per month within the specified period; failure to pay mesne profits will allow the decree-holder to execute the decree, and the stay will stand vacated.
Final Disposition
Appeal allowed; High Court’s ruling set aside; lower court orders restored; stay of decree subject to conditions until 31 January 1978; mesne profits ordered to be paid.

Parties to the Case

Appellants / Petitioners

  • Naibahu

Respondents

  • Ramnarayan and others

Legal Representation & Advocates

Counsels for Petitioners

  • • G. B. Pai
  • • S. C. Jain
  • • S. S. Khandanja
  • • Baij Nath Pandey

Counsels for Respondents

  • • G. L. Sanghi
  • • A. G. Ratnaparkhi

Case Synopsis & Summary

This is a civil eviction appeal arising from a landlord-tenant dispute in which Naibahu sought eviction of Ramnarayan and his co-tenants from a three-storeyed premises. After the plaintiff’s suit for eviction, the parties filed a joint compromise petition during the course of trial, with the tenants admitting the plaintiff’s claims and agreeing to vacate the entire tenancy with certain staged arrangements. The compromise envisaged that the defendants would put the plaintiff in vacant and peaceful possession of the entire tenancy premised on a staged vacating plan: five years during which the tenants would vacate portions, with limited rights to occupy, and arrangements for shared facilities like latrines, drainage, light and air, and signboards to be removed. The compromise also dealt with arrears of rent and mesne profits with periodic payments and a provision for the payment of mesne profits thereafter. After five years, the tenants would be evicted and the plaintiff would execute the decree. The High Court of Madhya Pradesh held that the terms created a new tenancy and that the compromise was invalid as a result of the MP Accommodation Control Act of 1955, including issues of non-registration. The Supreme Court reversed, holding that a lawful compromise is permissible if statutory grounds for eviction are satisfied, the dominant intention of the document governs construction, and no lease is created; the decree was valid and executable. The appeal was allowed, restoring the lower courts’ orders with a stay on execution subject to conditions.

Provisions of Law Cited

Madhya Pradesh Accommodation Control Act, 1955 - Section 4(h)Madhya Pradesh Accommodation Control Act, 1955 - Section 3(a) (definition of accommodation)Madhya Pradesh Accommodation Control Act, 1955 - Section 6 (compensation in case of evictions on non-residential accommodation)Madhya Pradesh Accommodation Control Act, 1955 - Section 12Civil Procedure Code, Order 23, Rule 3Registration Act, 1908 - Section 17(1)(d)Delhi Rent Control Act, 1952 - Section 2(g)

Legal Doctrines & Maxims

  • Dominant intention governs construction of compromise documents
  • In eviction suits, if pleadings and on-record materials disclose statutory grounds for eviction, a compromise decree can be valid and binding
  • A compromise decree cannot create a lease if the terms show no intention to establish a landlord-tenant relationship
  • If the Rent Control Act is in operation, eviction must satisfy statutory grounds; mere compromise cannot confer jurisdiction for eviction without such grounds
  • Registration under the Registration Act is not triggered where a compromise does not amount to conveyance or a lease creation

Submissions & Arguments

Contentions of Appellants / Petitioners

Counsel for the appellant urged that the compromise decree was a lawful settlement of the eviction suit and did not create a lease. They contended that the decree expressly provides that the plaintiff shall be entitled to execute her decree against the defendants; alterations and improvements were merely to facilitate quiet possession during the five-year interim, after which the remaining portion would be vacated. The dominant intention of the document, as stated in the recital, was not to create a landlord-tenant relationship but to enable the plaintiff to obtain possession and to realize arrears and mesne profits. The court should examine pleadings and materials to determine whether statutory grounds for eviction exist and, if such grounds are established, a compromise decree can be lawful even if its terms differ from the original lease. The decision in Konchada Ramamurthy Subudhi v. Gopinath Naik (1968 SCR 559) and Roshan Lal v. Madan Lal (1976 SCR 878) supports that a lawful compromise is permissible and that non-registration cannot defeat a valid decree where there is no intention to create a lease; the Delhi Act’s scheme is distinguishable from the MP Act. The High Court erred in treating the compromise as creating a new demise and in holding the decree void for non-registration.

Contentions of Respondents

The respondents contended that the compromise decree created a new tenancy and violated the Rent Acts; the five-year term and the arrangement for vacating portions effectively amount to a fresh lease, which requires registration; the premises were let for non-residential use, and the plaintiff’s composite plea for personal residence and business use under section 4(h) of the MP Act is not permissible; the court should not grant eviction based on a compromise unless it finds that statutory grounds exist, and a compromise cannot circumvent the need for registration or the statutory eviction framework; the High Court correctly held that the compromise created a new demise and that the decree was invalid for non-registration. They rely on Dr. Gopal Dass Verma v. S. K. Bhardwaj and Anr. to show that Delhi Act-based reasoning should not apply to MP Act, and argue that the terms do not show an intention to create a lease; the court should, therefore, uphold the High Court’s conclusion that the decree is a nullity.

Cited Precedents (8)

Case NameCitationTreatmentExplanation
Konchada Ramamurthy Subudhi & Anr. v. Gopinath Naik1968(2) SCR 559PositiveThe Court uses this case to illustrate that a compromise decree does not create a lease if the dominant intention is not to create a landlord-tenant relationship and if statutory eviction grounds are satisfied.
Roshan Lal v. Madan Lal1976(1) SCR 878PositiveThe decision is cited to support that if a compromise is found to violate Rent Control Act provisions, the court would not record it; the present judgment treats a lawful compromise as permissible when statutory grounds exist.
Girdharilal (dead) by LRs v. (unknown)unknownPositiveUsed to support the principle that registration is not automatically triggered unless a conveyance or lease is created; the compromise here was not found to create a lease.
Dr. Gopal Dass Verma v. Dr. S. K. Bhardwaj1962(2) SCR 678DistinguishedCited to illustrate differences between MP Act and Delhi Act; court distinguishes this case on the ground of different statutory framework.
Kartar Singh v. Chaman Lal & Ors.1970(1) SCR 9Mentioned OnlyListed in passing; not central to the decision.
K. K. Chari v. R. N. Seshadri1973(3) SCR 691Mentioned OnlyListed in passing; not central to the decision.
Hukam Singh v. Ors.AIR 1977 SC 129Mentioned OnlyListed in passing; not a controlling factor in the decision.
A. L. R. 1977 S.C. 129A.L.R. 1977 S.C. 129Mentioned OnlyListed in footnotes; not a central authority for the ruling.

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Extracted Judgment Text

Exact text extracted from official judgment records.

723 NAIBAHU _v._ RAMNARA YAN & OTHERS A _October_ 14, 1977 [P. K. GosWA'1l AND JASWANT SINGH, JJ.] _Madhya Pradesh Acco1n111odation_ _Control_ _Act,_ 1955- _Nullity-Consent_ B _decree,_ _if_ _a_ _nullity-If_ _requiren1ents_ _of_ _provisions_ _of_ _A ct_ _lnust_ _be_ _satis{ied-_ _Jflhether pleadings and eridence can be looked_ _into-Whether_ _consent decree_ _!;'"ljvint.:_ _till!t'_ _to racate_ _ca11_ _crl'ate_ _.fre.\h_ _tc11a11cy-Constru,;tio11_ _of_ _a_ _doc1u11ent-_ _}Vhether dominant_ _i11te11tio11_ _111ust_ _guide the constructio11-Whether consent_ _de-_ _cree t.:iving tilne to_ racatl~ _bad_ _for non-registration._ The appellant filed a suit for eviction against the respondent tenant. All the witnesses on behalf of the appellant were examined. Thereafter 2 witnesses were exnn1ined on behalf of the respondents. At tha•t stage a joint co1npromise C petition was filed settling the matter. The compromise deed provided that the respondents admitted the full claim of the nppellant for ejecttnent. arrears of rent and rnesne profits on the conditions that the respondents would put the appellant in \'ncant and peaceful possession of the entire tenancy premises except certain . portion and that the said portion would be vacated on the expiry of _5_ years; and that the future nlesne profits would be paid. Tt also provided that the respondents would be entitled to construct separate latrine and urinal in the -verandah near the staircase; that the respondents would remove their sign boards to the extent they prevent the proper light and air to the portion of the appellant D on the second storey . ##### . After the _5_ years' period expired, the appellant took out execution proceedings which were resisted by the respondents. The plea of the adjustment raised by the respondents \V:-io;; neg8tivcd in the first round of litigation. Howev.er, th~ re.:;pondents challenged the decree as a nullity and further contended th<:it the decree incorporated a lease \Vhich on account of non-registration was invalid and, therefore, not executable. The Trial Court rejected the objections raised by the respondents. An appeal filed bv the respondents \Vas dismissed. The Jligh Court allowed the second appeal filed by the respondents holding that the tern1 of compromise created a ne\v demise on different terms in regard to the premises which were not identical with the premises covered by the original lease. The High Court also held that the decree was passed in contravention of the provisions of l\Ja<lhya Pradesh Accon1mo<lation .Control Act, 1955. The High Court also held that compromise purported to create a lease for _5_ vcars which \Vas ineffective on account of non-registration. Allowing the appeal, HELD: _(_ 1) It is \Vell-settled that v. [1] here the Rent Control and Restrictions Act are in operation a landlord cannot obtain eviction of the tenant unless he can satisfy the requirements of the provisions in those Acts. It is also v.'ell settled that if the court does not find the permissible grounds for eviction disclosed in the pleadings and other materials on record no consent or compromise would give jurisdiction to the court to pass a v<1lid decree of eviction. [726 ,G-H] (2) The court after going through the pleadings and the evidence ca1ne to the conclusion that there was sufficient material for the court to be satisfied about the existence of the ground for eviction. The court held that if the pleadings and other materials on record make out a prima facie case about the existence of stat11tory grounds for eviction the compromise decree cannot be E F G H t~eld to be invalid and the executing court \Vill have to give effect to it. [729 D-El _Konclwda_ _Ra1na11u1rthy_ _Subudhi_ & _Anr._ v. _Gopinath Naik,_ 1968(2) SCR 559; _Rosha11_ _Lal_ v. _Madan_ _Lal._ 1976(1) SCR 878; _Girdharilal (dead)_ _by_ _L._ _Rs_ \I. _Hukan1_ _Sin1d1_ _and Ors._ AlR 1977 SC 129; _Kartar_ _SinRh_ v. _Cha1nan Lol_ & _Ors._ 1970(1) SCR 9 and _K. K._ _Chari_ 1·. _R._ _M._ _Seshadri,_ 1973 (3) SCR 691, referred tti. _Konclwda_ _Ra1na11u1rthy_ _Subudhi_ & _Anr._ v. _Gopinath Naik,_ 1968(2) SCR 559; _Rosha11_ _Lal_ v. _Madan_ _Lal._ 1976(1) SCR 878; _Girdharilal (dead)_ _by_ _L._ _Rs_ 724 SUPREME COURT REPORTS [1978] I S.C.R. **A** _**Dr.**_ _**Copa[**_ _**Dass**_ _**Vcr1na**_ **v.** _**Dr.**_ _**S.**_ _**K. Bhardwaj and Another.**_ **1962** **(2)** **SCR** """' **678, distinguished.** **B** **c** **(3)** **The Court after a careful consideration** **of** **the terms** **of** **the** **con1pron1ise-** **and** **the** **whole tenor** **of** **the** **compromise came** **to** **the** **conclusion** **that** **there** _**\Vas**_ **no intention** **to** **create a lease between the parties.** **It** **is** **the dominant intention** **of** **the docu1nent which must guide the construction** **of** **its contents.** **In the re-** **cital** **at** **3 places** **it** **is** **stated categorically** **that** **the** **plai_ntiff** **shall** **be** **entitled** **to** **execute her decree against** **the** **defendants. Thus there** **was** **no intention** **to** **create** **a lease.** **The few alterations** **and** **improvements agreed upon by consent were** **mefely an arrangen1ent for vacating two floors and in order** _**to**_ **vacate the re-** **maining portion after using** **it** **for 5 years.** **Therefore, there** **is** **no question** **of**, regi~tration **of** **the decree.** **[731** **A-C]** **(4)** **There** **is** **nothing in the Madhya Pradesh Act to bar an eviction fron1 a** **building** **if** **a** non~residential **accommodation** **is** **genuinely required not only for** **non·residential use but also a portion** **of** **it for bona** **fide** **personal residence.** [731-Dl CIVIL APPELLATE JURISDICTION: Civil Appeal No. 25 of 1971. (Appeal by special leave from the judgment and order dated 19-8-1970 of the Madhya Pradesh High Court in Misc. Second Appeal No. 64 of 1968). G. _B. Pai, S._ C. _Jain, S. S._ _Kha11d11ja_ and _Baij_ _Nath Pandey,_ for **D** the appellant. G. _L._ _Sanghi_ and _A.,_ G. _Ratnaparkhi,_ for the respondents. **E** **F** **G** **H** The Judgment of the Court was delivered by GOSWAMI, J.-This appeal, by special leave, is directed against the judgment of the Madhya Pradesh High Court of August 19, 1970. The facts and circumstances in this appeal disclose the highly tortuous nature of litigation between the landlord and the tenants. To highlight this aspect we may briefly state the facts. A suit was filed by the appellant on February 17, 1959, for eviction of the respondents (tenants) from a thrce-storeyed premises. The tenants resisted the claim and trial proceeded in which, after the close of the plaintiff's case, the tenants examined two witnesses and lhe suit was adjourned for their further evidence to July 12, 1960. On that day a joint compromise petition was filed settling the matter. State ment of counsel on both sides was recorded by the court on the same day and an order was passed on the following day, namely, July, 13, 1960 and a decree was passed in terms of the compromise. Without referring to the d<Jtails of the terms of compromise at this stage, it may be stated that the decree of eviction was executable only after five years. Five years passed. The appellant took execution·on July 21, 1965. The execution was resisted by the tenants. They set up a plea of adjustment under Order 21, rule 2 Civil Procedure Code. The said objection was rejected by the court on December 10, 1966. An appeal against the said order was also rejected on July 13, 1967. A second appeal by the tenants was dismissed by the High Court on September 27, 1968. Thus the first litigation regarding plea of adjustment of the decree terminated in the High Court on September 27 1968. ## # ###### .. NA! BAHU _v._ RAMNARAYAN _(Goswami,_ _J.)_ _72.5_ Even so, the tenants had already opened another front of attack _**Ao**_ against the decree on July 17, 1967, by means of an application in the executing court while the earlier litigation in respect of adjustment of the decree was pending. By that application the tenants challenged the d~cree as a nullity and further objected that the decree incorporated **a Jear;e** **\Vhich,** **on** **account of non-registration,** **was** **invalid** **and** **therefore** was not executable. The application was rejected by the executing court on July 20, 1967. The judgment debtor then approached the **B:** appeal court which also did not oblige and dismissed this appeal. Undaunted, the judgment-debtor filed a second appeal before the High Court of Madhya Pradesh and this time successfully. The High Court allowed the appeal and set aside the order. According to the High Court the main question for consideration in the appeal before it was "whether the terms of the decree, which was passed on the basis C of a compromise between the parties, created a fresh tenancy and so inhibited the decree-holder from terminating it and taking possession of the demised premises otherwise than in accordance with the provisions of section 12 of the M.P. Accommodation Control Act". Ans·, wering the question in favour of the appellants (respondents hereinl the High Court held that "the terms of compromise created a new demise on different terms in regard to the premises which were not iden- DJ ti cal with the premises covered by the original lease". The High Court also held that the decree was passed in contravention of the provisions. of the Act. The High Court also observed that "the compromis~ decree purported to create, as shown, a lease for five years" and was **"ineffective'' on account of non-registration.** The High Court refused to grant leave for Letters Patent Appeal and hence this appeal by special leave. Mr. G. B. Pai,,Jearned counsel for the appellant, submits that the High Court was entirely wrong in holding that the decree was a nullity. He submits that the case is squarely covered by the decision of this Court reported in _Konchada Ramamurthy Subudhi_ _&_ _Anr._ v. _Gopi-_ _nath Naik.(')_ In the said appeal the only point raised was whether "' the compromise decree created a lease or a licence. On the terms of "' the compromise this Court held that it did not create a lease as "the intention of the parties was not to enter into the relationship of a la]1dlord and tenant". Mr. Pai also drew our attention to the decision of this Court in _Roshan Lal_ v. _Madan_ _Lal.(')_ This Court observed in that decision as follows : "If the agreement or compromise for the eviction of the G tenant is found, on the facts of a particular case, to be in voilation of a particular Rent Restriction or Control Act, the Court would refuse to record the compromise as it will not be a lawful agreement. If on the other hand, tl1e Court is satisfied on consideration of the terms of the cqmpromise and, if necessary, by considering them in the context of the pleadings and other materials in the case, that the a~recment is law- **H** (1) [19681 2 S.C.R. 559. (2) [ 197611 S.C.R. 878. **A** ·C **:D** **H** **726** SUPREME COURT REPORTS fl 978) 1 S.C.R. **ful,** **as** **in** **any other suit, so** **in** **an** **eviction suit, the Court** **is** bound to record the compromise and pass a decree in accordance therewith". **With regard** **to** **the objection** **that** **the** **decree** **\Vas** **unregistered,** ~\!Ir. Pai relied upon a decision of this Court in _Girdlzari/al (dead)_ _by L._ _R<._ v. _Hi1ka111_ _Singh and_ _othen(')_ and read to us the following obse1 'ations therefrom "Even though the decree of a Court embodies an agreement between the parties, we do not think that the agreement between the parties placed before us, involving the recognition of a transfer, could require registration unless the terms of the compromise decree necessarily involved the execution of a deed of conveyance also." Mr. Pai finally submits that a perusal of the terms of compromise in the joint application under Order 23, rule 3 of the Civil procedure Code and the order of the trial court in pursuance thereof and other materials on record will clearly show that the court was satisfied that a lawful compromise was entered upon between the parties and that there was ground for eviction of the tenants as required under the Jaw. The decree was, therefore, not a nullity and was dearly executable, says Mr. Pai. On the other hand, Mr. Sanghi on behalf of the tenants submits that the decree was clearly invalid as it was passed in the teetli of the previsions of the Madhya Pradesh Accommodation Control Act, 1955 and it cannot be held that the court was satisfied that the compromise was lawful to enable it to pass a decree for eviction. According to **counsel,** **any** **compron1ise** **\VhiCh** **is** **against** **the** **hl\V** **cannot** **confer** **on** the Court a jurisdiction to pass a decree on its basis. Mr. Sanghi further submits that the plaint in this case disclosed that the premises were let out for non-residential purpose. Since the plaintiff sought for eviction from the premises on the composite ground of _bona_ _(lde_ requirement for residence as well as for business of money-lending a'1d also to start her own business of cloth as she had no other accommodation in the city for those purposes, the court has no jurisdiction to pass a decree en those grounds because originally the premises were let out for non-residential purpose. Jt is well-settled that where the Rent Control and Rcsirictions Acts arc in operation, a landlord cannot obtai11 eviction of the tenant unless he can satisfy the requirements of the provisions in those Acts. The general law of landlord and tenant to that extent will give way to the special Act in that behalf. It is also well-settled that i[ the court does not find the permissible grounds for eviction disclosed in the pleadings and other materials on the record, no consent or compromise will give jurisdiction to the court to pass a valid decree of **eviction.** (l) A.LR. 1977 S.C. 129. # # NAI BAHU _v._ **RAMNARAYAN** _(GoJWami,_ **J.)** 727 It will, therefore, be appropriate at this stage to look to the nature **A** of the suit disclosed in the plaint. It is stated in the plaint that "the defendants arc carrying on their business jointly in the aforesaid tenancy premises in the name and style of Lala Ramswarup and Sons". Para 4 of the plaint discloses the grounds under section 4 of the Madhya Pradesh Accommodation Control Act, 1955 which are to the effect that the plaintiff requires the premises for her own bona fide residence and also for her business of money lending and to start her **B** own business of cloth and that she has no other suitable accommodation for either purpose in the city of Jabalpur. She has also mentioned the business need of her brother, Tek Chanel, whose income from the business will he utilised to meet the expenses of the plaintiff. It is also stated that the defendants have built and acquired vacant possession of accommodation in Manjipura, Jabalpur and were in possession of three three-storeyed houses having three spacious shop premises **C** therein. It will be necessary now to set out below the terms of compromise arrived at by the parties on the basis of which the decree was passed : "l. That the defendants admit the full claim of the plaintiff for ejectment, arrears of rent and mesne profits as claim- **O·** ed in the suit on the following conditions : (a) That the defendants shall put the plaintiff in a vacant and peaceful possession of the entire tenancy premises except portion of the ground floor only shown by letters A.B.C.D.E. in the map attached with this application, today. lf the defendants fail to do so E the plaintiff shall be entitled to execute her decree against the defendants for the same at their costs. The portion shown by letters A.B.C. D.E. is of the ground floor only. (b) That the defendants shall vacate the portion marked by letters A.B.C.D.E. of the ground floor in the map attached with this application and put the plaintiff in its vacant possession by 15-7-1965. (Fifteen July Nineteen hundred and sixty five). If the defendants do not vacate the same by this date, the plaintiff shall be entitled to execute her decree against the defendants for possession cf this portion at their costs. 2. That towards mcsne profits from 15-2-59 upto 14-7-1960 the defendants have already passed a cheque dated 11-7-1960 bearing No. 28264 drawn on the Central Bank of India. 3. That towards mense profits from 15-7-1960 onwards the defendants shall pay Rs. 170/- per month to the plaintiff till they actually vacate the house by the appointed date. The defendants shall pay a sum of Rs. 3,000/- to the plaintiff by 15-8-1960 towards mcnse profits from 15-7-60 **F** **G** **H** **.A.** :D _!E_ **·F** ·G **'H** 7.28 SUPREME COURT REPORTS [1978] ! S.C.R. onwards in advance. This amount is liable to be adjusted towanls mensc profits at the rate of Rs. 170/- per mcntll from 15-7-1960 onwards. After this amount is fully adjusted the defendants shall pay Rs. 170/- per month regularly on the 15th of the next month. If the defendants fail to comply with the above terms the plaintiff shall be entitled to execute her decree against the defendants for the same and in that case the defendants shall he liable for the costs **of** **execution.** 4. That the parties shall bear their respective costs of the suit. The parties shall not now claim anything against each other on account of costs awarded to them bv the courts in previous litigation between the defendants ai1ct the plaintiff's husband. 5. That the defendants shall be entitled to construct a septic latrine and urinal in the verandah near the stair case near points D and C shown in the map at their own costs. The plaintiff shall allow the defendants facilities to make a drain for the proper discharge of water etc. from the septic latrines and urinal through her court yard. The cost of the drain will be borne by the plaintilI. 6. That the defendants shall remove their sign Boards etc. to the extent they are preventing the proper light and air to the portion of the plaintiff on the second storey. PRAYER The parties, therefore, pray that a decree in terms of the **above compromise be passed".** It is submitted by Mr. Sanghi that there is nothing to show either on the face of the decree or even on the materials on the record that the court applied its mind for the purpose of being satisfied that a decree for eviction on any cf the admissible grounds under section 4 of the Madhya Pradesh Accommodation Control Act, 1955' (briefly the Act M.P. Act), were: present in the case. Having examined the pleadings, the terms of the compromise as well as the statement of counsel of either party recorded by the trial court and the resultant order passed thereafter, we are unable to accede to the submission that the court did not apply its mind to the relevant question that was necdssary to be considered at that stage at the time of **passing** **the** **decree.** Mr. Sanghi next submits that the plaintiff did not at all establish the valid ground for passing a decree for eviction under the M.P. Act. According to him the house was let out for non-residential purpose, viz., for a shos. He states that it is clear from the avcrments in the plaint that the plaintiff wanted the house for her own use as well as for the purpose of business. Counsel asserts that the ground for eviction in this case is clearly under section 4(h) of the M.P. Act. Since on her own showing that the plaintiff seeks eviction for a composite purpose, viz., for her residence and for business the house being a non-residential accommodation she is not entitled t~ eviction under section 4(h) of the M.P. Act. In this context Mr. -~ #### ### NA! BABU _v._ RAMNARAYAN _(Goswami,_ _J.)_ 729 :Sanghi relies upon a decision of this Court in _Dr._ _Gopal_ _Dass_ _Verma_ v. _Dr._ _S._ _K._ _Bhardwaj and_ _Another(')_ and read to us the following passage from that decision : **A** **B** c D E # ; " .... where premises are Jet for residential purposes and it is shown that. they are used by the tenant incidentally for commercial, professional or other purposes with the consent of the landlord the landlord would not be entitled to eject the tenant even if he proves that _he_ needs the premises bona fide for his personal use because the premises have by their user ceased to be premises let for residential purposes alone". Mr. Sanghi also relied upon another decision of this Court in _Kartar_ _.Singh_ v. _Chaman Lal_ _&_ _Others(')_ where the decision in _Dr._ _Gopal_ _Dass Verma_ (supra) has been followed. It is true that a decree for eviction of a tenant cannot be passed solely on the basis of a compromise between the parties (see _K. K._ _Chari_ v. _R._ _N. Seshadri"(')._ The Court is to be satisfied whether a statutory ground for eviction has been pleaded which the tenant has admitted by the compromise. Thus dispensing with further proot, on account of the compromise, the court is to be satisfied about compliance with the statutcry requirem~nt on the totally of facts of a **particular case bearing** **in** **mind the entire circumstances** **fron1** **the stage** of pleadings upto the stage when the compromise is effected. When a compromise decree is challenged as a nullity in the course of its execution the executing court can examine relevant materials ·to find out whether statutory grounds for eviction existed in law. If the pleadings and other materials on the record make out a prima facie case about the existence of statutory grounds for eviction a compromise decree cannot be held to be invalid and the executing court will have to give effect to it. According to Mr. Sanghi when the house was let for non-residential purpose the appellant cannot succeed in ejecting the tenant from the house for a composite purpo·se of residence as well as business and he submits that the principles laid down in _Dr._ _Gopcil_ _Dass_ **F** _Verma_ (supra) fully support him. Jn _Dr._ _Copa/ Dass Verma_ (supra) this Court was dealing with the provisions of Delhi & Ajmer Rent Control Act, 1952 (briefly tlle Delhi Act). Section 2(g) defines premises under that Act thus: " 'Premises' means any building or part of a building which is, or is intended to _be_ let, separately for use as a residence or for commercial use or for any other pur**pose, .** . " We may contrast the definition of accommodation in the M.P. Act with which we are concerned. Under section 3(a) of the M.P. **Act, "accommodation"** **means-** _(x)_ any land which is not being used for cultivation; G **H** I (I) [196212S.C.R. 678. , _**r**_ (2) [1970] 1 S.C.R. 9. '(l) [1973] 3 S.C.R. 691. A **B** c **D** E **F** G **H** 730 SUPREME COURT REPORTS [1978] 1 S.C.R. (y) any building or part of a building, and it includes(!) garden, open land and out hcuses, if any, appurten ant to such building or part of a building; (2) any furniture supplied by the landlord for use in such building or part of a building; ( 3) any fittings allixed to such building or part of a building for the more beneficial enjoyment there**of".** lt is significant that in the Delhi Act intention to let separately for **use as a residence or for** **con11nercial** **use** **or** **for any other purpose** is expressly mentioned under section 2 (g) thereof. The principk underlying the scheme for ·letting separately for different uses is re· fleeted in the Second Schedule to the Delhi Act in both Parts A and B (see paras 3 to 5 both in parts A and B). The said differentiation of purpose for separate letting docs not find such significant importance in the M.P. Act as has been found by this Court in the Delhi Act Mr. Sanghi, however, draws our attention to section 4(d) of the M.P. Act which provides that if the tenant has done any act which is inconsistent with the purpose for which he was admitted to the tenancy of the accommodation, that will furnish a ground for eviction under the M. P. Act. He also relies upon s. 6 of the M.P. **Act** **where there** **is** **provision for compensation ln the case of evic-** tion on the ground mentioned in clause (h) of section 4 in case of **non-residential accommo<lation.** **C.ounscl** **therefore** **sub1nits** **that** **al--** though the word 'separately' is absent in the definition o[ "accom**modation"** **in** **the** **M.P.** **Act** **there** **is** **no difference** **v,rhatsocvcr** **in** **the** actual intent of the provisions in the M.P. Act tc warrant a departure from the principles laid down in _Dr. Gopal Dass Verma_ (supra). We arc unable to accept the above submission. It is clear that under the Delhi Act the schem.c is significantly different from that of the M. P. Act. The definition of "premises" in the Delhi Act is a pointer. Under the M.P. Act a landlord can seek eviction of a tenant from a non-rnsidcntiol accommodation if he genuinely requires the same for his business purpose. But the position is not the same under the provisions of the Delhi Act where the landlord cannot ask **for** **eviction of a tenant** **fron1** **the** **prcn1ises** **let** **for** **cominercial use even** if the former requires it _huna fide_ for his own business purpose. The **landlord** **may** **seek eviction of** **the** **tenant** **on** **other** **grounds** **but** **not** on t.he: ground of _bona fide_ requirement for his own business under the Delhi Act. This brings out the difference between the scheme underlying the two Acts and Mr. Sanghi cannot call in aid the decision in _Dr. Gopal Dass Verma_ (supra) in support of his submission. The High Court was not right in its conclusion that the decree \Vas passed in contravention of the provisions of the' Act. Mr. Sanghi also submits that the decree in this case incorporated a lease for five years and in absence of registration under section 17 (l) ( d) of the Regi~tration Act the decree is invalid and cannot be acted upon. As already pointed out this objection is untenable. in .'( NAI BAHU _v._ RAMNARAYAN _(Goswami,_ _l.)_ 731 view of the decision of this Court in _Girdhari/al_ (supra). The question would turn on the terms of the compromise. After a careful consideration of the terms of the compromise and the whole tenor of the compromise petition it is absolutely clear that there was no intention to create a lease between the parties. It is the dominant intention of the docu· ment which must guide the construction of its contents. In the recitals of the compromise petition in three places it is stated categorically that "the plaintiff shall be entitled to execute her decree against the defendants". There was therefore, no intention to create a lease with regard to any portion of the property although certain arrangements had been entered for the intermediate occupation of a certain portion before vacating that portion after expiry of five years. The few alternations and improvements agreed upon by consent were merely an arrangement for vacating two floors and in order to vacate the remaining portion after using it for five years. There wa·s no intention whatsoever to create a new lease. There is, therefore, no question of registration of the decree. The submission is devoid of substance. The High Court is, therefore, clearly wrong in holding that a lease was created by the compromise and that the decree was ineffective on account of non-registration. There is nothing in the M. P. Act to bar an eviction from a buildilig if a 11.on-residential accommodation is genuinely required not only for non-residential use but also a portion of it bona fide for per~onal residence. We are clearly of opinion that the compromise decree in this case is a lawful decree of eviction founded on permissible statutory ground and there are sufficient materials to show that the trial court ;ipplied its mind and was satisfied that a valid decree under the M.P. Act could be passed. In the result the judgment and order of the High Court are set aside and the orders of the lower courts are restored. The appeal is allowed with costs. ORDER GOSWAMI, J. We have pronounced the judgment and order in this appeal. On the undertaking given by counsel on behalf of the respondents that they will voluntarily and peacefully vacafe the portion of the premises in dispute in this appeal on or )Jefore 31st January, 1978 and h~nd over vacant al!d peaceful P?ssesston to the appellant, the execut10n of the decree will be stayed till then. Meanwhile, the respon-dents ~!so undertake to pay Rs. _1701-_ p.m. as mesne profits _to_ the appellant w1thm the first week of the month due. Failure to pay mesne p~ofits as aforesaid will enable the decree-holder to execute the decree without reference to this Conrt and the stay of the decree will automatically stand vacated. P.H.P. _Appeal allowed._ I0-951SCI/77 A B c D E F G