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Supreme Court of India

JAMNADAS DHARAMDASversusDR. J. JOSEPH FERREIRA AND ANR.

Citation
1980 INSC 107
Decided
7 May 1980
Disposal
Dismissed

Holding

The Small Causes Court is empowered to grant possession of the leased land and to order demolition of the superstructures, and the tenant is not entitled to relief under Section 12(3)(b) due to his persistent defaults.

Summary

The plaintiff, a landlord, leased two plots of land to the defendant, who was permitted to erect buildings. The defendant built a three‑storey structure on one plot but repeatedly defaulted on rent and tax payments, leading to forfeiture of the lease. The landlord sued for ejectment of both the land and the superstructures, while the tenant sought protection under Section 12(3)(b) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947. Lower courts eventually granted the landlord possession of the land and the buildings. The Supreme Court examined whether the Court of Small Causes, under Section 28 of the Act, could order possession of the land together with demolition of the structures, and whether the tenant was entitled to relief under Section 12(3)(b) despite his defaults. It held that the Small Causes Court has jurisdiction to grant possession of the premises and to order removal of the superstructures as incidental relief, and that the tenant’s persistent defaults barred him from invoking Section 12(3)(b). Consequently, the High Court decree was affirmed.

Issues considered

  • The Court of Small Causes' jurisdiction under Section 28 of the Bombay Rent Act to order possession of land together with demolition of superstructures.
  • Whether the tenant is entitled to relief under Section 12(3)(b) of the Bombay Rent Act after repeated defaults.
  • The enforceability of the forfeiture clause and its effect on the tenant's obligation to deliver the land free of structures.
  • The scope of relief permissible under the lease and the Act concerning the superstructures.

Legislation cited

Subjects

lease forfeitureevictionBombay Rent ActSection 28 jurisdictionSection 12(3)(b) reliefsuperstructure demolitiontenant defaultpenalty clause

Judgment

                                                                                1015

                           JAMNADAS DHARAMDAS                                              A
                                           v.
                   DR. J. JOSEPH FERREIRA AND ANR.
                                     May 7, 1980
      [A. C. GUPTA, S. MURTAZA FAZAL ALI AND P. S. KAILASAM, JJ.]                          B

        Bon1bay Rents, Hotel and Lodging House Rates, Control Act, 1947,
    Section 12(3){b) and Section 28, scope of-Jurisdiction of the Court of Small
    Causes, Bombay under section 28-Decree for possfflsion of vacant land lvoultl
    refer only to taking over effective possession of the land by. decree holder with
    the superstructure if any.
       By a lease dated 14th December 1948, the respondent plaintiff gave to the
                                                                                           c
    appellant defendant on leaee two plots Nos. 12 and 13 situated at Sitaladevi
    Temple Road, Mahim for a period of 15 years commencing from 1st Decem~
    ber 1948 at the yearly rent of Rs. 10,200/· payable in equal quarterly · instal·
    ments of Rs. 2,550/. in advance. The lease deed provided that the appellant
    was at liberty to erect building and structures on the two plots of land. The
    appellant agreed to pay and discharge all taxes and outgoings imposed on the
                                                                                           D
    above two plots a-s also on the buildings to be erected by the defendant. On
    the exprration of the term of the lease, the appellant agreed to deliver back the
    possession of two plots to the respondent 'free of all buildings, erections and
    structures and levelled and put in gocx:i order and condition to the sati$faction
    of the respondent'. Clause IV of the lease provided for determina-tion and
    forfeiture of the lease in the event of the rents having been allo\ved to be in
    arrears for more than 30 days or upon breach of conditions of the lease. The
y    forfeiture clause also provided that upon forfeiture the respondent would be
    entitled to re-enter upon not only the two plots of land but also the structures
     standing thereon.

        The appellant constructed on plot No. 12 a three-storied building consisting
     of about 72 flats, shops with carpet area of 13,000 square feet and the cost of
    the building with superstructures in 1949 was about Rs. 6,60,000/-. Since the
    appellant defaulted not only in payment of rent but also in payment of dues in         F
    respect of lands and buildings which he erected, the respondent filed a suit in
     1951 for ejectment. The appellant filed an application for the fixation of standard
    rent and the standard rent was fixed at Rs. 435/- per month from September 1,
     1950. A compromise was entered into between the parties in the suit on 5th
    March. 1954, by which they agreed on a rent of Rs. 435/· per month from
    September 1950 to February 1954. An appeal a-gainst the fixation of standard
     rent of Rs. 435/· per month was disposed of on 28th June, 1955 whereby standard
                                                                                           G
     rent was refixed at Rs. 620/· p.m. from !st September 1950.

         The appellant again defaulted in payment of rent and taxes. The arrears
     of rent amounted to Rs. 11.472.30 and taxes to the extent of Rs. 1.12,053.60
     for the period ending 30th September 1960. The respondent by a notice deter-
     mined and forfeited the lease and called upon the appeUant to deliver possession      H
     of the lands alongwith structures thereupon. The notice also specified that the
     notice was not only a notice of forfeiture, but also notice under section 12 of
     the Bomb~y Rents, Hotel and Lodging House Rates Control Act, 1947. On !st
           1016                       SUPREME COURT REPORTS                [J 980] 3 S.C.R.

    A     Decemb.er 1961, as the appellant failed ·to pay the arrears of rent and the taxes,
          the respondeut filed the. suit for ejectment and prayed for a decree for ejectlnent
          a.gainst the appellant in respect of two plots of land Nos. 12 and 13 and also the
          buildingS i!Dd structures standing thereon, and claimed arr~ars of rent of
          H.s. 11,472.50 and mesne profits at the rate of Rs. 620/- p.1n. 'fhe. appellant in
          order to g<t the benefit of section 12 ( 3 )( b) of the Rent Control Act,    194 7,
          applied fvr time for' making depos.it of arrears. of rent. 'fhe appellant could
    B     not make the payment within the extended time allowed, but after the issues
          were framed and the suit was taken up for trial, he deposited the arrears of rent
          and cost in the Cour~ after the -Court made an endorsement "accept without pre-
          judice''. Sgbsequently, on 11th November, 1964 the Trial Court passed a
          deqree for eJectment in respect of plots and the buildings in favour of the
          respondent. A decree was granted regarding arrears of rent and for mesfle
          profilB.
    c
            Both the appellant and the respondent preferred appeals and the Bench of
         two Judges of the Court of Small Causes by a common judgment disposed of
         both the appeals on 4th April 1965. The' Appellate Court held that it had no
         jurisdiction to give a decree for ejectment in respect of the two buildings cons-
         tructed on plot No. 12 by the appellant. It held that clause IV of the lease
         which permitted forfeiture was in the natnre of penalty and the appellant was
D        entitled to be relieved from the liability to deliver possession of the buildings
         constructed by him upon forfeiture by the respondent. It also found that the
         appellant was entitled to be relieved from the penalty of forfeiture of the lease
         under section 114 alld 114A of the Transfer of Property Act. It rejected the
         plea of the appellant that he was always ready and willing to pay arrears of rents
         and found that because of repeated defaults the appellant was not entitled for
         relief from ejectment under section 12(3J(b) of the Bombay Rent Act.
E
             The respondent filed a revision petition against the order of the appe,llate
        Court declining to direct possession of the two buildings and the appe1la-nt-tenant
        filed an appeal against the order of appellate Court directing his ejectment from
        the two plots of lands Nos. 12 and 13. The High Court disposed of both the
        revision petition and the cross appeal by a common judgment wheJreby i~
        allowed the revision petition of the respondent/landlord and dismissed the ~peal
F       of the appellant'/tenant and· decreed the suit of the respondent directing the                   t-
        appe:Jlant to deliver peaceful possession of the land demised to him and also
        buildings which have been constructed by the appellant on the demised lands.
        It also confirmed the decree regarding arrears of rents and mesne profits.
                                                                                                   I
        Hence the appeal by _certificate.                                                        ("
            Dismissing the appeal, the Court.
G                                                                                                   Y'
            HELD : !. Section 28 of the Bombay Rent Act, 1947 confers jurisdiction
         on the Court of Small Cause, Bombay to entertain and try any suit for pro-
         ceedings between a landlord and tenant relating to recovery of rents or posses-
        sion of any premises to which any of the provisionSr of that part applied. The
        jurisdiction thus conferred enables the Court to try any suit between the land-         -;...J
        lord and the tenant relating to recovery of possession of the premises. [1022 A-B]
                                                                                                         ~
H                                                                                                        n
           Importers and Manufacturers Ltd. v. Pheroze Framroze Tariiporel!<·ata· and                    I~
        Ors., [1953] 3 SCR 266; Babulal Bhura Mal and Anr. v. Nandra1n Shivram                           '1
        and Ors., [1959] SCR 367; followed.


                                                                                                         r'
                         .JAMNADAS v• .J• .JOSEPH (Kailasam, J.)                        1017

             Raizado Tapen Das and Anr. v. Ml s Gorakhram Gokalchand [1964] 3 SCR                A
          214; Sushi/a Kashlnath Dhonde Gnd Or.. v .. Harl/a/ G<Nindji Bhogani and Ors.,
          [1970] 2 SCR 950 explained and distinguished.

               2. The conditions specified in section 12 (3) (b) of the Bombay Rent      ~;
          1947 will have ta be strictly observed by the tenant if he wants to avail himself
          Oil' the benefits provided under the section. In the instant case, the persistent
          defawt of the appellant·tenant on various occaoions and his clear statement that       B
          he Was not in a position ·to pay the arrears would exclude any reJief under
          section 12(3 )(b) of the Act The respondent-plaintiff would be entitled to a
          decree for possession of the plots under the provisions of the Bombay Rent Act
          and in effect the decree for possessioo of the land would mean that the l;;nd
          should be delivered to him without the structures. [1023 D-G, 1025 O.·E]

             Ganpat Lodlla v. Sachikant Vishnu Shivalc, [1978] 3 SCR. 198; applied.              C
              3. To contend that as the respondent-plaintiff has sought, two reliefs one
          under the Bomhay Rent Act and another under the contract, the entire plaint
          must be rejected is wrong. In aSking for the relief for possession of the land.
          the respondent-plaintiff is entitled to incidental and consequential reliefs such as       /.
          for effectively taking possession of the plot without the structure, that is he is.
          entitled to ask for the demolition of the superstructure. The prayeri in the
          plaint asking for possession of the land including the structures would not take
                                                                                                 D
          the suit out of the competence of the Small Causes Court.        [1025 E, F-G]

              Rarnachandra Raghunath Shirgaonkar v. Vishnu Balaji Hindalekar, AIR
          )920 Born. 87; Khimjee Thakorsee v. Pioneer Fibre Co. Ltd., AIR 1941 Born.
          337 and K.· Arumugham Naicker and Anr. v. Tiruvalluva N.alnar Temple by its
           Trustee, AIR 1954 Mad. 985; approved.
                                                                                                 E
              CML APPELLATE JURISDICTION : Civil Appeal No. 531 of 1979.
             Appeal by Certificate from the Judgment and Order dated the
          23-10-1969 of the Bombay High Court in S.C.A. No. 1596 of 1965.
              D. V. Patel, N. N. Keshwani and R. N. Keshwani for the Appellant.
                                                                                                 F
             I. Sorab;ee, R. Daruwala, P. G. Gokha/e and J. R. Gagarat for the
          Respondent.
              The Judgment of the Court was delivered by
              KAILASAM, J. This appeal is by the defendant-tenant by certifi-
          cate granted by the High Court of Judicature at Bombay against its                     G
          judgment dated 21-1-69 is Special Civil Application No. 1596 of 1965
          granting a decree directing that the defendant shall vacate and deliver
          peaceful possession not only of the land demised to him under the
          lease in the suit but also of the three buildings which have been cons-
      \   tructed on the demised land.
                                                                                                 H
             By a lease deed dated 14th December, 1948 the plaintiff !(ave to
~I
It•       the defendant on lease two plots Nos. 12 and 13 situated at Sitaladevi
          6-610SCl/80
          1018                    SUPREME COURT REPORTS           [1980] 3 s.c.It.

    A  Temple Road, Mahim for a period of 15 years commencing from 1st
       December, 1948 at the yearly rent of Rs. 10,200/- payable in equal
       quarterly instalments of Rs. 2,550/- in advance.         The lease deed
      provided that the defendant was at liberty to erect building and struc-
      tures on the two plots of land.        The defendant agreed to pay and
      discharge all taxes and outgoings imp<l6ed on the 'above two plots as
 B
      also on the buildings to be erected by the defendant           On the ex-
      piration of the term of 15 years or sooner termination of the lease the
      defendant agreed to deliver back the possession of the two plots to
      the plaintiff 'free of all buildings, erections and structures and levelled
      arid put in good order and condition to the satisfaction of the plaintiff'.
c     Clause .IV of the lease provided for determination and forfeiture of
      the lease in the event of the rents having been allowed to be in arrears
     for more than 30 days or upon breach. of conditions' of the lease. The
     forfeiture clause also provided that upon forfeiture the plaintiff would
     be entitled to re-enter upon not only tl:\e two plots of land but also the
                                                 1
     structures standing thereon.
D
          The defendant defaulted not only in payment of rent but also in
     payment of taxes due in respect of lands and buildings which             he
     erected. The plaintiff filed a suit in 1951 for ejectrnent. The defen-
     dent filed an application for the fixation of standard rent and         the
     standard rent was fixed at Rs. 435 /- per month from September 1,
E 1950. A compromise was entered into between the parties in the
   . suit on 5th March, 1954 by which the parties agreed on a rent of
     Rs. 435/- per month from September, 1950 to February, 1954.

            An appeal against the fixation of standard rent of Rs. 435/- per
         mensem was disposed of on 28th June, 1955 whereby standard rent
F       was fixed at Rs. 620/- per month from 1st September, 1950. The
        defendant again defaulted in payment of rent and taxes. The arrears
        of rent amounted to Rs. 11,472.30 and taxes to the extent of
        Rs. 1, 12,053.60 for the period ending 30th September, 1960. · The
        plaintiff by a notice determined and forfeited the lease and called
        upon the defendant to deliver possession of the lands alongwith struc-
G       tures thereupon.      The notice also specified that the notice was not
        only a notice of forfeiture but also notice under section 12 of the
        Bombay Rents, Hotel and Lodging House Rates Control Act, 1947
        (hereinafter referred to as the Bombay Rent Act).        On 1st Decem-
        ber, 1961 as the defendant failed to pay the arrears of rent and the
        taxes, the plaintiff filed the present suit and pra,yed for a- decree for
B       ejectrnent against the defendant in respect of two plots of land anil
        also the buildings and structures standing thereon, and claimed arrears
        of rent of Rs. 11,472.30 and mesne profits at the rate of Rs. 620/-



                                                                                     -~   .
                      JAMNADAS v. J .•JOSEPH (Kailasam, J.)                 1019

         per month.     'I)le defendant filed written statemegJ and denied the       A
         allegations made in the plaint.      The defendant in order to get the
         benefit of the provisions of Section 12(3) (b) of the Bombay Ren!S
         Act applied for time for making deposit of arrears of rent.       The
     .
     •   application ·was taken on the 20th June, 1962 and further time was
          sranted to enable the defendant to make the deposits.       Tune was
                                                                                     B
         .extended on several occasions and finally on 6th Augnst, 1962, the
          defendant informed the court that he was not in a position to make
          any deposit at all.
              After the issues were framed and the suit was taken up for trial,
         Ilic defendant once again applied for relief under S. 12(3)(b) of the Act
         and prayed that he may be allowed to deposit the arrears of rent and        c
         cost. The deposit was accepted by the Court after making an endorse-
         ment, "accept without prejudice". Subsequently, on 11th November,
         1964, the trial Court passed a decree for ejectment in respect of plots
         and the buildings in favour of the plaintiff. A decree wasi granted
         regarding arrears of rent and for mesne profits.
                                                                                       D
              Both the plaintiff and the defendant preferred appea!S and the
         Bench of two Judges of the Court of Small Causes by a common judg-
         ment disposed of both the appeal on 4th April, 1965. The appellate
         Court held that it had no jurisdiction to give a decree for ejeetment i~
         respect of the two buildings constructed on Plot No. 12 by the defen-
          dant. It held that clause N. of the lease whicl:\ permitted forfeiture E
         was in the nature of penalty and the defendant was entitled to be
          relieved from the liability to deliver possession of the buildings cons-
         tructed by him upon forfeiture by the plaintiff. It also found that the
          defendant was entitled to be relieved from the penalty of forfeiture of
          the lease under Ss. 114 and 114A of the Transfer of Property Act. It
                                                                                       F
          rejected the plea of the defendant that he wa~ always ready and willing
          to pay all arrears of rents and found that< because of repeated defaults
          the defendant was not entitled for relief from ejectment under
          S. 12 (3) (b) of the Bombay Rent Act. The plaintiff filed a revision
         'petition against the order of the appellate COIUrt declining to direct
          possession of the two buildings and the defendant/tenant filed af\ G
          appeal against the order of the appellate Court directing ejectment of
          the defendant from the two plots of land~ mentioned in the plaint. The
          High Court disposed of both the revisions by the plaintiff and the
          appeal by the defendant by a common judgment whereby it allowed
1         the revisio_ns filed by the plaintiff and dismissed the appeal of the defen-
~·        dant and decreed the suit of the plaintiff directing the defendant tq H
if         deliver peaceful possession of the land demised to him and also build-
()
"         ings which have been constructed by the defendant on the demised.
     1820                      SUPREME COUJ.T REPORTS            [1980] 3 s.c.R.

A    lands. It also confirmed the decr~ regarding arrears df. rents           and
     mesne profits.

        On behalf of the defendant it was submitted that the Court's juris-
   diction is limited only to adjudicate. on leased premises under Ille
   Bombay Rent Act and therefore it had no jurisdiction to try the suit
B regarding possession of the structures put upon, the leased lands. It
   was pleaded that a relief regarding the superstructures will not be one
   under the provisions of the Bombay Rent Act. It was contended tbii.t
   as the suit is for a composite relief namely for the possession of the;
    leased land and for the superstructures it is beyond the jurisdiction of
    the court, and the suit as a whole should have been dismissed. It was
C submitted that in any event as clause IV in the lease deed is in th~
   nature of penalty providing for the forfeiture of the structure. which did
   not form part of the lease, the decree for posse~sion oil the structures
   is not maintainable. In any event it was submitted that there could
  ,};fl no forfeiture of the structures on thei ground that the municipal
    pxes  were not paid and that the term as to payment of arrears of taxes
D cannot be considered as a clause in: the lease deed and the defendafil;
   should be relieved against the penal clause.. Lastly, it was submitted
   that the Courts below were wrong in not granting relief under section
   12(3)(b) of. the BO!llbay Rent Act.

         Before considering the several coµtentions raised by the learned
E    counsel for the appellant it will' be useful to refer to the relevant clauses
     of the lease deed and the relief prayed for in the plaint. The lease
     deed dated 14th December, 1948 executed by the plaintiff in favour
     of the defendant was a lease of two plots of land, plot Nos. J 2 and 13
     situated at Sitladevi Temple Road, Mahim for a period af 15 years iili
     an yearly rent of Rs. 10,200/- payable in equal quarterly instalments
     of Rs. 2,550/ in advance. Subsequen,tly standatd rent was fixed by
     the trial Court at Rs. 435 /- which was raised by the appellate court to
     Rs. 620 /- per mensem. The lease permitted the defendant to erect
     buildings and structures in the· two plots of land. The buildings were
                                                                                     fI~
                                                                                     '
     erected in only plot no. 12 and not in plot no. 13 which remains un-
G    built and vacant. The defendant agreed to pay and discharge all                     t'
     taxes and outgoings imposed on the above two plots as also to the
     bru1dings to be erected by the defendant. The defendant also under-
     took to deliver possession of the two plots to the plaintiff "free of all
     buildings, erections and. structures" on the ~ration of the lease.
     Clause IV empowered the lessor to terminate the !easel and prO!vided                      !
B    that.the lessor will be at liberty to re-enter not only upon the two ploti
     of the lands but also on the structures, standing thereon. In the plaint
                                                                                               j
     it was stated that as thd defendant had failed to pay rents and taxes. and
                                                                                              .j\
                     JAMNADAS V. J. JOSEPH (Kai/asam, J.)                        1021

        committed breach of conditions the plaintiff forfei.ted the lease and           A
        called upon the defendant tq pay arrears of rent and taxes. · The sui~
        '11'111 based not only ·on the forfei.ture of the lease bu~ also for posses•
        11iou. of the leased plots' under S. 12 of the Boinbay Rents Act. In
        palagrapbi 9 of the plaint it is alleged "the plaintifi say that in the event
        of the defendant contending that he has become a statutory tenant of
         the said land, after' th~ tenancy had been duly and validly terminated,        B
         the plaintiff would submit that the defendanti had failed and neglected
         to pay the arrears of standard rent amounting to Rs. 11,472.30 upto
          31st August, 1961 and does not observe and perform condition ll(b)
         of his lease, and so he is not entitled to thei-protet:tion of the Bombay
         Rent Coutrol Act." '                          ·
                                                                                        c
             In paragraphs 10 and 11 of the Plaint, it is alleged that the pro-
         visions of the Bombay· Rents Act 47 of 1947 apply to the said land
        ·and the Court has jurisdiction to entertain and try the suit. The
         reliefs asked for by the plaintiff in paragraph 13 (a) is that the defen-
         dant may be directed to hand over peaceful possession of the lands to
         the plaintiff together with the buildings and structures standing thereon.     D
         Thus it would . be seen that the plaint is based on the terms of the
         lease deed after forfeiting the lease and for the possession of the leased
         lands according to the terms of the Bdmbay Rent Act.

             The main defence which was raised by the tenant in the Courts
         below as well as before us is that the suit is not triable under S. 28         E
         of the Bombay Rents Act and in any event relief regarding possession
         of the structures would be beyond the scope of the relief contemplated
         in the Bombay Rent Act. Section 28 of the Bombay Rent Act runs
         as follows : -
                  "28 (1). Notwithstanding anything contained in any                    F,
              law and notwithStanding that by reason of the amount of
\             the claim or for any other reason, the suit or proceeding
-~            would not, but for the provision, be within its jurisdiction,
    (         in Greater Bombay, the Court of Small Causes Bombay.
               (a)     x      x      x     x      x     x      x      x     x
                                                                                        G
               (b)      x      x     x      x     x      x      x     x      x
               shall ha~ jurisdiction to enlfftain and try any suit or
               proceeding between a landlord and a tenant relating to the
               recovery of rent or possession of any premises to which any
               of the provisions of this part apply and to decide any                   H
               application made under this Act and to deal. with any claim
               or question arising out of this Act or any of its provisions
      102.2                    SUPREME COURT REPORTS            [J980] 3 S.C.!l.
                                                                             ,
 A         and subject to the provisions of sub-secJion ( 2) , no other
           court shall have jurisdiction to entertain any such claim or
           qul'Stion."
         The Section confers jurisdiction on the Court of Small Causes
     Bombay to .entertain and try any suit or proceedings between a land-'
    lord and tenant. relating to recovery of rents or possession of any
 B
     premises to ,which any of \the provisions of this part apply. The
     jurisdiction thus conferred enables the, Court to try any suit between
     the landlord and the tenant relating to recovery of possession. of the
    premises. ·It is admitted that the premises is the two plots of land
     only and not the superstructure. The plea of the plaintiff is that the
 c relief. for recovery of possession of the plot which is the subject. matter
    of the lease, would also include relief relating to the superstructure
     as being related to ·relief of recovery of possession of the leased pre-
    mises namely the plots and land. The submission on behalf of the
    plaintiff is that as the jurisdiction of Civil Courts have been specifically
    excluded, and the matters relating to possession of the leased premises,
D it would imply that not only relief of the possession of the leased lands        J
   but also matters relating to it would be beyond the jurisdiction of other
    oourts and therefore the plaintiff has no other option than to file the,
    suit for relief as to the structure being only ancillary and incidental to
   the relief of possession. of the leased lands. Before we proceed to
   consider this plea, we might note that Mr. Soli J. Sorabjee, learned
E rounsel for the plaintiff submitted that though it might be open to
   him to contend that the reliefs relating to the structures based on the
    lerms of the contract would also be decisive on an application · made
    under the act as being related to the recovery of the possession of the
    leased premises, he would content himself with the plea that the
   relief as to structures is so closely and inextricably related to possession
F •f the land that no effective relief of possession of the leased lands
   wuld be given without giving relief in respect of structures. Relief
   as to structures also should inevitably follow. If this submissicm is
   accepted it would be unnecessary for us to consider. the other limb of
   the· arguments on behalf of the appellants that the relief claimed as a
G
   result of the forfeiture is not enforceable by a Court administering
   Bombay Rent Act or thaf the plaintiff cannot enforce terms of forfei-               f
   ture which did not relate to leased plots or that the defendant would
   he entitled to relief against forfeiture under Ss. 114 and 114A of the
   Transfer of Property Act.
        All the Courts below have found that the defendant is not entitled
B to any relief under S. 12 ( 3) (b) of the Act and that so far as the
   leased plots are conceme\I, the plaintiff i9 entitled to possession 11*'
   the Bombay Rent Act. After fifuig of the suit it is seen that die
                                                                                         )

                      JAMNADAS v. J. JOSEPH (Kailasam, !.)                 1023

         defendant asked for time f\lr payment of arrears of rents and the matter A
         came up before the Court on the 28th June, 5th July and 6th August,
         1962 for payment of arrears. On the last date the appellant's advo-
.\       cate informed the Court that the appellant was not in a position to pay
         the arrears. It is only two years later on 18th September, 1964 the
         defendant obtained Court's permission to deposit balance of arrears '
         of Rs. 12,800/- and , deposited the amount under protest by the B
         plaintiff. The Tiial Court after considering all the facts· found that
         there was intention of default a,nd neglect in payment of rent. The
         conduct of the defendant was wilfully not ready and willing to pay the.
         rent. It again found that the payment of arrears was not made dili-
         gently and the defendant had flouted the orders of the Court to deposit
         the arrears of rent and the discretion- cannot be exercised in his favour .c
         when he persisted in not paying the taxes for about 12 or 13 years and
         was constantly in arrears of rent for about 14 months at the time of
         the notice. The appellate Court also came to the same conclusion
         holding that it is not a case where discretion of the Court under S.12
          (3 )(b) should be exercised in favour of the tenant. The High Court
                                                                                    D
          also confirmed the findings of the Court below that the defendant was
          llOt entitled to relief under Section 12 ( 3 )(b) of the Act. On the
          tacts we are also in agreement with the findings of the three courts
          below that the persistent default of the defendant on various occasions
         aDd his clear statement that he was not in a position to pay the arrear•,
         would exclude any relief under section 12 ( 3)(b) .                        E
     y      In a recent decision of this Court reported in Ganpat Ladha v.
         Sashikant Vishnu Shinde, (') it has been held that when the tenant
         eloes not fulfil the conditions as required under section 12 ( 3 )(b), he
         eould not claim protection under section 12{3)(b). This Court
         ebserved that it is difficult to see how judicial discn;tion exercisable    F
         in favour of the tenant can be found under section 12 (3) (b) even
         where conditio'ns laid down by it were not satisfied. This Court over-
         ruled the decision of the case of Bombay High Court in Kalidas v.
          [Jhavan Bhagwandas•('). The conditions sepcified in S. 12(3) (b)
         will haYe to be strictly observed by the tenant if .he wants to ayail
         himself of the benefits provided under the Section.                         G

               On the facts therefore we find that the plaintiff is entitled to a
          '1ecree for possession of the two plots under the provisions of the
          Bombay Rent Act. As plot No. 13 has not been built upon a'nd is
           vacant there could be no difficulty in confirming the decree for poA-
           session in favour of the plaintiff regarding plot No. 13.                 H
             (I} [1978] 3.' S.C.R. 198.
             (2) 60 Bombay L.R. 1359.
      11)2.(                    SUH.BM!! COURT REPORTS           [1980] 3 s.c.Jt.

 A        in Importers and Manufacturers Ltd. v. Pheroze Framroze Tar«-
     porewala and Ors,(') this Court held that the claim for compensation
     was merely an incidental claim for possession under the Act. "Sec-
     tion 28 had conferred jurisdiction on the Court of Small Causes not
     only to entertain and try any suit or proceeding between a landlord
   . and tenant for recovery of rent or possession but also to deal with
 B any claim or question arising out of this Act or any of its provisions
     and s. 28 was thus wide enough to cover the question raised as bet-
     ween the plaintiff and ihe sub-lessee". It will be seen that the plea
     that a suit against a sub-lessee is not within the jurisdiction of the Small
     ~auses Court, was negatived by this Court and it was held that sec-

 c tion    was wide enough to cover the questions raised between the palin·
     tiff and the sub-lessee.

         In Babula/ Bhuramal and An.r. v. Nandram Shivram and Ors.(')
     related to sub-lessee of the premises. The suit was filed for eject-
     ment of the tenant and the sub-tenant in the Court of Small Causes.
     The tenant and the sub--tenants later filed a suit before the Bombay
     City Civil Court for declaration that the lessee was a tenant and was
     protected from eviction by the provisions of the Bombay Rents Act
     and that as. B and C were lawful sub-tenants, were also entitled to
     possession. This Court agreed with the view taken by the. Higa
     Court that section 28 of the Act barred the City Civil Court from
     entertaining the suit filed by the lessees and the sub-lessees as section
     28 conferred the right oil the Small causes to entertain a suit between
     a landlord and a tenant in respect of a claim which arose out of the Act
     or any of its provisions. Thus it prohibits a suit from being enter-
     tained by the City Civil Court at the instance of the tenant.

F         In Raizada Topandas and Anr. v. M/s. Gorakhram Gokalchand
      ( •) it was held that if a suit is framed by a landlord or a tenant and
     relief asked for is in the nature of a claim which arises out of Act
     or any of the provisious then only and not otherwise will be covered
     by s. 28 and as there were no such claim the City Civil Court has
     jurisdiction to entertain the suit. The plaint in the case proceeded
G    on the footing that during the periOd of agreement the appellants
     were mere licensees and after the expiry of the agreement they were
     trespassers. As the plaint in terms negatived the relationship of the
     landlord and tenant, it was held that the Rent Court had no juris-
     diction. This decision cannot be of any help to the appellant.
II       (!) [1953] S.C.R. 226.
         (2) [1959] S.C.R. 367.
         (3) [1964j 3 S.C.R. 214.
                                                                                          . J
                        JAMNADAS v. J. JOSEPH (Kai/asam, J.)                 1025

              In Sushila Kashi.nath Dhonde and Ors. v. Harilal Govindji Bho- A
          gani and Ors.,(') this Court held that it is not necessary that there
          should be relationship of landlord and tenant in respect of all the
          matters covered bys. 28(1) of the Act so as.to give jurisdiction to
          the Court of Small Causes. It further held that in respect of other
          matters dealt with snb-section, it is not necessary that the relation-
          ship of landlord and tenant shollld exist between the parties before
          the Court. The Court repelled the contention that a charge created
          by the deed executed between the parties did not give rise to any claims
          or questions arising out .of the Bombay Rents Act or its provisions
          and held that nature of reliefs to be granted to the plaintiff are all
          daims or questions arising out of the Act and can be dealt with only
          by the special court constituted under S. 28 of the Act. No doubt, c
          the deed .of charge furnished a cause of action, but its legality, vali- ·
          dity and binding nature and other incidental matters connected there-
          with are all questions arising out of the Act and the plea on behalf
•         of the. appellants that the rights of the plaintiff did not flow from the
          Act or any of its provisions but from the contract, could not be
          accepted.                                                                  D

                 The decisions referred to above will show that that the plaintiff/
           landlocd of the land is entitled to claim the relief for possession of
            his; land and in effect the decree for possession of the land would
            mean that the land should be delivered to him without the structures.     E
    .y      Apart from the relief under the lease deed, the plaintiff is entitled
           to wcceed as he has estabished that there was default Of payment
            under the provisions of the Bombay Rents Act. The jurisdiction
           of the Small Causes Court to grant an effective decree for possession
           of the land cannot be denied. Equally untenable is the contention
         _ of the respondent that as the plaintiff has sought two reliefs one         F
           undoc the Bopibay Rent Act and another under the Contract, the
           entire plaint must be rejected. As we have already observed so far
           as the relief of possession of the premises, i.e. the )and is concerned,
           it is exclusively within the jurisdiction of the Small Causes Court.
           In asking for the relief for possession of the land, the plaintiff is
           eniitled to incidental and consequential reliefs such as for effectively   G
         . taking possession of the plot without the structures. The prayer in
           the plaint asking for possession of the land including the structures
           would not take the suit out of the competence of the Small Causes
           Court In this view if is not necessary toi us to go into the quesiion
           as to whether the terms in the contract regarding the forfeiture can
           be enforced by the Small Causes Court. It is sufficient for the            H
           purpose of this Suit to hold that the plaintiff is entitled to seek for
              (I) (1970] 2 S.C.R . 950.
         1026                       SUPREME COURT REPORTS       · [1980] 3 s.c.R.
    A     possession of the land which is the premises in the suit, and in
          getting possession of the land he is entitled to ask for possession
          of the land without any superstructures. In this connection refer-
          ence may be made to the nature of the relief which the plaintiff is
          entitled to. In Ramchandra Raghunath Shirgaonkar v. Vishnu Bala-          ~
          ji Hinda/akar, ( 1) it was held that the ordinary rule of law is that
    B     the tenant must give up vacant possession of the land demised at               ,,
          the end of the term and that if he builds on the laud of the tenancy
          he builds at. his own risk. At the end of the term he can take
          away his buildii)g but if he leaves it there, it becomes the landlord's
          property. The Court further held that the tenant who had been
         in possession of land for a large number of years and built a cootly
    c     and substantial house on the land of the tenancy witl1 the knowledge
          of the landlord, is entitled to some compensation.
              In K. Arumugham Naicker and Anr. v. Tiruvalluva Nainar Temple
          that after the determination of the lease, lessees were required to
          deliver over possession of the demised premises lo the lessor and the
          lessees were entitled to remove the structures which they mlght have
                                                                                              •
    D
         erected during the continuance of the tenancy. The lessees, however,
         failed to remove the structures on the date of the determinatio)l of the
          tenancy and on the next date tile premises were occupied by oilier
          lessees, it was held tile lessees could remove the structures on and
          not after determination Of the tenancy and having failed to remove
    E.    the same on the determination of the tenancy they lost not only tlieir
          right to remove the structures after the determination of the tenancy
          but also all right, title and interest in tliose structures.
              In K. Arumugham Naicker and Anr. v. Tiruvalluva Nainar Tmiple
          by its Trustee,(') it was held that where a court directs by a decree
          or order vacant possession of land, that decree could be made e!Jec-
    F     tive by directing its own officers to remove the super-structures in
          the property and deliver vacant possession· of the properties to the
'         decree-holder. It is unnecessary to have any specific power in that
          behalf. The power to remove the superstructures is an incidental,
         .necessary. and ancillary power to the power to deliver posSCMio!t of
                                                                                    I,
         tile property.
    G
                                                            '
              We are satisfied that the Small Causes Court had jurisdicti<m w
         entertain tile suit of the plaintiff not only for possession of the land
          which is the premises under the Act but also for otl1er reliefg to
         make the decree for possession effective. In this connection the
          plaintiff is entitled to ask for relief regarding the superstructuru.
         This incidental or ancillary relief would not take out the suit ~d
    H       (I) A.LR. 1920 Born. 87.
             (2) A.I.R .. 1941Born.337.
            (3) A.l.R. 1954 Mad. 985.
                                                                                              \
                 JAMNADAS v. J. JOSEPH (Kailasam, J.)                  1027
                                                                              '
    the jurisdiction of the Small Causes Court. The plea that the                 A
    composite relief had been asked for and that the entire plaint ought
    to be rejected is also unsustainable. In the result, we agree with
    the contentions of the plaintiff that in asking for relief as to pooses--
    sion of the land, he is entitled to ask for the demolition of the
    structures and for grant of vacant possession of the plots. So far
    as the plot No. 13 is concerned, there is no difficulty. The plot is          B
    not built upon and is vacant and therefore we have ~o hesitation in
    confirming the decree for possession so far as the plot No. 13 is con-
    cerned.                                              ·     ·
I       Plot No. 12 has been built upon. There are.about three storeys
    consisting of about 72 flats, shops with carpet area of 13,000 square
    ft. and the cost of building with superstructures in 1949 was about
                                                                                  c
    Rs. 6,00,000/-. We may in this connection note that from the date
    of the decree passed by the High Court on 23rd October 1969, the
    defendant has not paid arrears of rents or the taxeg due on the build-
    ings. He is in law bound to pay the arrears of rent and the municipal
    charges which he has undertaken.                                              D
         On a consideration of the facts of the case, we feel that there are
    no grounds for interfering with the decree passed by the High Court
    for possession not only of the vacant plot but also of the superstructure
    and mesne-profits and arrears of rent. The law provides for the tenant
    to remove the superstructure on the termination of the tenancy. If
                                                                                  E
    it is not thus removed the tenant loses all his rights to the super-
     structure and the landlord becomes entitled to it. But in a case where
    !,here is a substantial building, it is only reasonable that the court
    should explore the possibility of payment of some compensation to
    the tenant who had put up this structure. But in this connection we
    are reminded that for several years neither the arrears of rent nor the
                                                                                  F
    taxes amounting to several lacs of rupees had been paid by the tenant.
    Not only the tenant but several persons who have put up flats at their
    own costs may press their claim for· compensation and it will be diffi-
    cult to determine as to who are entitled to compensation and the pro-
    portion of the compensation to which they will be entitled to. We
    enquired of the parties at the conclusion of the arguments if it was          G
    possible to come to some arrangement regarding the superstructure
    but to our regret the parties informed us that they could not arrive at
    any settlement. In the circumstances, we have no alternative except
    to confirm the judgment and decree passed by the High Court. We,
    therefore, dismiss the appeal, but in the special circumstances of this
    case we make no order as to costs in this Court.                              H

    S.R.                                                  Appeal dismissed.


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