High Court of KeralaSingle JudgeDismissed in limine; appellant granted three mo...

V. Murukesan v. Panangattu Ammukkutty Amma

Case / Petition Number:R.S.A. No. 856 of 2007
Neutral Citation:/null

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V. Ramkumar
Judgment Date
2008-11-05
Court Decision / Holding
This Second Appeal is dismissed in limine. The court held the transaction to be a licence rather than a lease. The appellant is granted three months to vacate the plaint schedule shop, subject to filing an affidavit within two weeks undertaking to vacate within three months and not to induct strangers or cause waste, while continuing to pay licence fees.
Final Disposition
Dismissed in limine; appellant granted three months to vacate with conditions and affidavit.

Parties to the Case

Appellants / Petitioners

  • V. Murukesan

Respondents

  • Panangattu Ammukkutty Amma

Legal Representation & Advocates

Counsels for Petitioners

  • • P. S. Sreedharan Pillai
  • • P. Rani Diothima

Case Synopsis & Summary

This Regular Second Appeal, RSA 856/2007, arises from O.S. No. 868/2000 pending before the Munsiff’s Court, Kozhikode-II, seeking a decree of mandatory injunction directing the defendant to vacate a shop room in which he runs a barber shop. The plaintiff-owner claimed Ext.A3, a licence deed dated 12.12.1990, fixed licence fee of Rs. 400 and security of Rs. 9,000; the licence was renewed by Exts.A4 to A9, with payments made up to December 1999 but arrears thereafter. The defendant contended that no licence existed, he had been put in exclusive possession under a rental arrangement, and there was a transfer of an interest in immovable property, implying a lease, not a licence; he argued protection under the Kerala Buildings (Lease and Rent Control) Act, 1965. The two courts below held Ext.A3 to be a licence and granted relief to the plaintiff, discarding the receipts (B2–B6) as dubious and disputing the landlord’s signature. The High Court rejected the tenancy argument and held that the transaction is a licence, relying on the Easements Act and cited precedents. It dismissed the Second Appeal in limine, while granting three months’ time to vacate on certain conditions and an affidavit. The decision clarifies the lease-vs-licence boundary for shop premises.

Provisions of Law Cited

Section 105, Transfer of Property ActKerala Buildings (Lease and Rent Control) Act, 1965Section 52, Easements Act

Legal Doctrines & Maxims

  • Exclusive possession alone does not prove a lease.
  • Interdict against sub-letting goes a long way to hold that the transaction is a lease (B.V.D'Souza v. Antonio Fausto Fernandes, 1989 (3) SCC 574).
  • If exclusive possession is granted to a licensee on certain terms, the transaction is a licence (Delta International Ltd. v. Shyam Sunder Ganeriwalla, 1999 (4) SCC 545).
  • No transfer of interest in immovable property is necessary to constitute a lease (as contrasted with license) per cited authorities.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends Ext.A3 is a lease; exclusive possession, monthly payments described as rent, and transfer of possession imply lease. The document allegedly originated from stamp papers converted into licence deeds, suggesting a transfer of an interest in immovable property. He cites B.V.D'Souza v. Antonio Fausto Fernandes (1989) to argue that exclusive possession and restraint on subletting indicate a lease (Section 105, Transfer of Property Act). The defence contends the licence is a mere permission to use the shop for a barber’s business, and the Court should treat Ext.A3 as licence, not lease. The argument emphasizes that exclusive possession alone or signatures on receipts do not establish a tenancy protected under the Rent Control Act.

Contentions of Respondents

The plaintiff argues Ext.A3 is a license; it recites permission to use the shop for a barber’s business with the grantor retaining possession. The conduct, renewals (Exts.A4–A9), and the license terms confine the grantee’s rights and do not transfer an interest in property or sub- lessee rights. The reliance is on the Easements Act, Section 52, and on precedents such as Delta International Ltd. and others to establish that exclusive possession under licensing arrangements does not amount to a lease; the receipts are not conclusive evidence of tenancy. The respondents contend there is no tenancy protection under the Kerala Buildings (Lease and Rent Control) Act, 1965.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
B.V.D'Souza v/s Antonio Fausto Fernandes1989 (3) SCC 574PositiveUsed to support the proposition that interdict against sub-letting indicates a lease.
Vayallakath Muhammodkutty v. Illikkal MoosakuttyAIR 1996 SC 3288Mentioned OnlyCited as a point of reference; not invoked as a direct doctrinal anchor in the decision.
Kt. N. Rm. Thenappa Chettiar and others v. N.S.Kr. Karuppan Chettiar & othersAIR 1968 SC 915PositiveUsed to illustrate that exclusive possession does not necessarily prove a lease.
Delta International Ltd. v. Shyam Sunder Ganeriwalla and another1999 (4) SCC 545PositiveUsed to support that exclusive possession under license can still be a licence, not a lease.

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Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM THE HONOURABLE MR. JUSTICE V.RAMKUMAR WEDNESDAY, THE 5TH NOVEMBER 2008 / 14TH KARTHIKA 1930 --------------------AS.184/2003 of I ADDL.SUB COURT, KOZHIKODE OS.868/2000 of ADDL.M.C.,KOZHIKODE-II APPELLANT/APPELLANT/DEFENDANT V.MURUKESAN, AGED 36 YEARS, S/O.VEERAMUTHU, SREE ILLAM, MANIKOTH PARAMBA, NAYAR KULAM, BEYPORE, KOZHIKODE. BY ADV. SRI.P.S.SREEDHARAN PILLAI SMT.P.RANI DIOTHIMA RESPONDENT/RESPONDENT/PLAINTIFF PANANGATTU AMMUKUTTY AMMA, AGED 60 YEARS, W/O.(LATE) BALAKRISHNAN NAIR, PALATTAKANDY VEETTIL, NADUVATTOM AMSOM, THIS REGULAR SECOND APPEAL HAVING COME UP FOR ADMISSION ON 05/11/2008, THE COURT ON THE SAME DAY PASSED THE V. RAMKUMAR, J. ===================== R.S.A. No. 856 of 2007 ================ Dated this the 5[th] day of November, 2008. ## **JUDGMENT** The defendants in O.S. No. 868 of 2000 on the file of the Munsiff's Court, Kozhikode-II is the appellant in this Second Appeal. The said suit instituted by the respondent herein was one for a decree of mandatory injunction directing the defendant to vacate the plaint schedule shop room where the defendant is conducting a barber shop. 2. The case of the plaintiff was that the defendant was permitted to carry on the business of a barber in the plaint schedule shop room as per Ext.A3 licence deed dated 12.12.1990 fixing a licence fee of Rs.400/- and receiving a security of Rs.9000/- and Ext.A3 licence was subsequently renewed as per Exts.A4 to A9 and A1 licence deeds. The licence fee was paid up to and inclusive of the month of December, 1999 but kept in arrears from January, 2000 onwards. Hence the suit. 3. The suit was resisted by the appellant/defendant contending inter alia as follows:- The suit is not maintainable. The defendant was put in R.S.A. No. 856/2007 : 2: possession of the shop room on 10.02.1999 as per a rental arrangement. The rent fixed was Rs.300/- and subsequently raised to Rs.400/-. There was no transaction of licence between the parties. He was made to sign some stamp papers which have subsequently been converted into licence deeds. He being a tenant and the arrangement being a rental arrangement, he could be evicted from the plaint schedule shop room only in accordance with the provision of the Kerala Buildings (Lease and Rent Control) Act, 1965. 3. Both the courts have held that Ext.A3 is a licence pure and simple, that Exts. B2 to B6 receipts purporting to be rent receipts, were produced at a belated stage and that the alleged signature of the landlord in those receipts was disputed by the plaintiff. These receipts were eschewed from consideration by the courts below. The courts below accordingly granted a decree as prayed for. Hence this Second Appeal. 4. The learned counsel appearing for the appellant/defendant made the following submissions before me in support of the appeal:- Even though Ext.A3 document is styled as a licence R.S.A. No. 856/2007 : 3: deed, the appellant has a case that his signatures were taken on stamp papers which were subsequently converted into licence deeds. If so, Exts.A1 and A3 to A9 cannot be looked into to find the real nature of the transaction. The appellant was put in exclusive possession of the shop room in question. He was making the monthly payments in the form of rents. There was a transfer of interest in immovable property and the said transfer was for the purpose of enjoyment. Hence, it was a clear case of lease falling under Section 105 of the Transfer of Property Act. If it was a case of licence, then there would not have been any transfer of exclusive possession nor any restraint on subletting. In the light of the decision in **B.V.D'Souza v/s. Antonio Fausto Fernandes** – 1989 (3) SCC 574 the interdict against sub-letting goes a long way to hold that the transaction is a lease. In the case of a licence, there will be no right of re-entry for the grantor. All these features discernible from the evidence on record will clearly indicate that the transaction was a pure rental arrangement and the appellant was a tenant in respect of the shop room. The suit ought to have been dismissed by the courts below. R.S.A. No. 856/2007 : 4: 5. I am afraid that I cannot agree with the above submissions. The specific case of the plaintiff is that the defendant sought permission for temporary use of the shop room in question for conducting a barber shop and accordingly Ext.A3 licence deed dated 12.12.1990 was executed fixing a licence fee of Rs.400/- after receiving a security amount of Rs.9000/-. The document clearly recites that the defendant is permitted to use the plaint schedule shop room for conducting a barber shop and that the possession of the shop room is with the grantor (plaintiff) and the grantee was to conduct a barber shop on such premises. The monthly payment was also described as licence fee. The restriction is not against the subletting, but against inducting strangers into the shop room. If the embargo was against sub-letting, then the words employed would have been “ But here what is stated is “ This is not sub-letting. Even if there is a restraint on sub-letting it is in no way inconsistent with the finding that the transaction is a licence. [See **Vayallakath Muhammodkutty v. Illikkal Moosakutty** (AIR 1996 SC 3288)].Every instance R.S.A. No. 856/2007 : 5: of exclusive possession does not spell out a case of lease. (vide **Kt. N. Rm. Thenappa Chettiar and others v. N.S.Kr. Karuppan Chettiar & others** (AIR 1968 SC 915). If the privilege of exclusive possession of the premises is granted on certain terms and conditions as a licensee, the transaction is a licence. [See **Delta International Ltd. v. Shyam Sunder Ganeriwalla and another** (1999 (4) SCC 545)]. A reading of the document shows that there was no transfer of interest in immovable property for the purpose of enjoyment. The transaction squarely falls under Section 52 of the Easements Act and it has been so held concurrently by the courts below after a careful evaluation of the oral and documentary evidence in the case. No question of law, much less, any substantial question of law arises for consideration in this Second Appeal. The questions of law formulated in the memorandum of appeal also do not arise for consideration in this Second Appeal which is accordingly dismissed in limine. 6. The learned counsel appearing for the appellant sought some time to vacate the premises. The suit was filed in the year 2000 and he had 8 years' time to vacate, if he R.S.A. No. 856/2007 : 6: wanted. However, having regard to the facts and circumstances of the case, I am inclined to grant three months' time to the appellant/defendant to vacate from the premises, provided that he files an affidavit before the trial court within two weeks from today undertaking to vacate the plaint schedule shop room within three months from today and also undertaking that until he surrenders vacant possession of the premises, he shall not induct strangers or commit waste in the property and shall pay the licence fee without fail. Dated this the 5[th] day of November, 2008. ## V.Ramkumar, Judge rv R.S.A. No. 856/2007 : 7: R.S.A. No. 856/2007 : 8: