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Supreme Court of India

MADAN & CO.versusWAZIR JAIVIR CHAND

Citation
1988 INSC 357
Decided
28 November 1988
Disposal
Dismissed

Holding

A notice posted by registered post to the tenant’s correct address fulfills the statutory service requirement, even if the letter is returned undelivered; no alternative mode of service is required.

Summary

The landlord served a notice of rent arrears and termination of tenancy by registered post, which was returned undelivered, and subsequently affixed a copy of the notice on the premises. The tenant argued that the statutory requirement under Section 11 of the Jammu & Kashmir Houses and Shops Rent Control Act, 1966, demanded actual receipt of the notice, and that the landlord’s alternative method of affixing the notice was insufficient. The Supreme Court held that the statutory term "served" should be interpreted as "sent by post" to the correct address, and that once the landlord posts a correctly addressed registered letter, the requirement is satisfied, irrespective of actual delivery. The Court rejected the notion that substituted service by affixing was required or permissible under the Act. Consequently, the landlord’s compliance was deemed adequate and the eviction decree stood. The appeal was dismissed.

Issues considered

  • Whether a notice sent by registered post that is returned undelivered satisfies the statutory requirement of service under Section 11 of the Jammu & Kashmir Houses and Shops Rent Control Act, 1966.
  • Whether the landlord may resort to alternative methods such as affixing the notice on the premises to fulfill the statutory requirement.
  • Whether the term "served" in the statute mandates actual receipt by the tenant or merely the act of posting the notice.

Legislation cited

Subjects

service of noticerent controlevictionstatutory interpretationregistered postsubstituted servicelandlord-tenant

Judgment

                          MADAN & CO.
                                                                              A
                                v.
                       WAZIR JAIVIR CHAND

                         NOVEMBER 28, 1988

 [SABYASACHI MUKHARJI AND S. RANGANATIIAN, JJ.]                               B

      Jammu and Kashmir Houses and Shops Rent Control Act,
1966: Section 11-'Serves a notice in writing through post'-lnter-
pretation of-Posting a pre-paid registered letter containing tenant's
correct address-Sufficiency of.

      In November 1976, the respondent issued a notice to the appellant       c
under section 11 of the J ammu & Kashmir Houses & Shops Rent Con-
trol Act, 1966 calling upon it to pay the arrears ofrent, The notiee also
terminated the tenancy and called upo11 the appellant to vacate the
demised premises. The notice sent by registered post was received back
by the respondent with the endorsement "left without address,                 D
returned to sender". Thereupon the respondent caused a copy of the
notice to be fixed to one of the doors of the premises in question.
No payment of rent was however made by the appellant subsequently.
The respondent, therefore, filed a suit in June 1977 seeking ejectment of
the appellant on the ground of default in the payment of rent. The Trial
Court ordered eviction. and the appellant's appeals before the District       E
Judge and the High Court against the order of eviction failed.

       Before this Court the appellant contends that (1) the safeguards in
ss. 11 and 12 of the Act are intended for the benefit and protection of the
tenant and therefore, where the Act provides for the service of the
notice, by post, this requirement has to be strictly complied with;.(2)       F
such postal service can neither be presumed nor considered to be good
service where the latter is returned to the sender due to non-availability
of the addressee; (3) in the absence of any enabling provision, service by
some other mode, such as affixture, cannot be treated as sufficient
compliance with the statute; and (4) where a power is given to do a
certain thing in a certain way, the thing must he done in that way or not     G
at all and other methods of performance are necessarily forbidden.

      Dismissing the appeal, it was,

      HELD: (I) The proviso to clause (i) of section 11(1) and_ the pro-
viso to section 12(3) are intended for the protection of the tenant.          ~

                                   983
     984         SUPREME COURT REPORTS                  (1988] Supp. 3 S.C.R.

A    Nevertheless, it will be easy to see that too strict and literal a compliance
     of their language would be impractical and unworkable. [988H; 989AJ

           (2) The proviso insists that before any amount of rent can be said
     to be in arrears, a notice has to be served through post. All that a
     landlord can do to comply with this provision is to post a prepaid
B    registered letter (acknowledgment due or otherwise) containing the
     tenant's correct address. Once he does this and the letter is deli-
     vered to the post office, he has no control over it. It is then pre-
     sumed to have been delivered to the addressee under s. 27 of the
     General Clauses Act. [989A-B]


c have (3) To interpret the provision as requiring that the letter must
        been actually delivered to the addressee, would be virtually
     rendering it a dead letter. [989F] -

           \4) If a registered letter addressed to a person at his residential
     address does not get served in the normal course and is returned, it can
D    only be attributed to the addressee's own conduct. If he is compelled to
     be away for some time, all that he has to do is to leave necessary
     instructions with the postal authorities, [989H; 990A]

           (5) The more reasonable, effective, equitable and practical
     interpretation would be to read the words "served" as "sent by post",
E    correctly and properly addressed to the tenant, and the word "receipt"
     as the tender of the letter by the postal peon at.the address mentioned in
     the letter. No other interpretation will fit the situation as it is simply not
     possible for a landlord to ensure that a registered letter sent by him gets
     served on, or is received by the tenant. [990B-C]

f'         (6) The statute prescribes only one method of service for the
     notice and none other. To require service by some other method to be
     effected over and above the postal service would be to travel outside the
     statute. [990F]

           (7) Where the statute does not specify any additional or alterna-
(i   tive mode of service, there can be no warrant for importing into the
     statute a method of service on the lines of the provisions of C.P.C. This
     Court would therefore not like to hold that a "substituted" service,
     such as the one effected by the landlord in the present case, is a neces-
     sary or permissible requirement of the stall1te. [990G]

H           (8) The provision in regard to the notice contemplated !>y the
                                                                -_r




         MADAN & CO. v. WAZIR CHAND [RANGANATHAN, J.]                 985

statute is unsatisfactory and it is hoped that the legislature would soon   A
set it right, On the provision as it stands, a landlord must be held to
have complied with the statutory requirement by sending a notice cor-
rectly addressed to the tenant by registered post. [991H; 992A]

     Hare Krishna Das v. Hahnemann Publishing Co. Ltd. 1965-66,
70 C.W.N. 252; Surajmull Ghanashamdas v. Samardarshan Sur, ILR              B
1969 1Cal379; Taylor v. Taylor, [1875] l Ch. D. 426.

      CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4146
of 1985.

    From the Judgment and Order dated 18.12.1984.of the Jammu &
Kashmir High Court in C.S.A. No. 5 of 1981.
                                                                            c
    Soli J. Sorabjee, Harjinder Singh and Ranjan Mahapatra for the
Appellant.

    Anil Dev Singh, Dr. Meera Agarwal and R.C. Misra for the                D
Respondent.

      The Judgment of the Court was delivered by

      RANGANATHAN, J. 1. This appeal involves the interpretation
of s. 11 of the J ammu & Kashmir Houses & Shops Rent Control Act,           E
1966 (hereinafter referred to as 'the Act').

       2. The petitioner is a firm of which Sohan Singh Madan is the
managing partner. The firm was the tenant of the respondent in
respect of a portion of a building situated in Raghunath Bazar,
Jammu, on a rent of Rs.200 p.m. According to the respondent, the            F
petitioner had been irregular in paying the rent of the premises and
had altogether stopped making payment of any rent from 1st April,
1976 onwards. On 26.11.1976, the respondent issued a notice to the
petitioner calling upon it to pay the arrears of rent (Rs.1,600). The
notice also terminated the tenancy and called upon the petitioner to
vacate the demised premises on or before 31.12.1976. This notice was        G
first sent by post. The postman -called at the address on 7.12.1976 and
8.12.1976 but, having failed to find there either the addressee or any
person authorised to receive the notice on its behalf, returned it with
the endorsement "left without address, returned to sender". There-
upon, the respondent caused a copy of the notice to be affixed to one
of the doors of the premises in question in the presence of two inhabi-     H
    986        SUPREME COURT REPORTS                [1988] Supp. 3 S.C.R.

A   tants of the locality on 9.12.1976. No payment of rent was made subse-
    quently by the petitioner. The respondent, therefore, filed a suit on
     16.6. 1977 seeking ejectment of the petitioner on the ground that he
    had committed three defaults, each in payment of two months' rent,
    within a period of 18 months. This plea was disputed, and eviction of
    the petitioner decreed, by the Sub Judge. This was affirmed by the
B   District Judge. A second appeal to the High Court was also unsuccess-
    ful. Hence this appeal by special leave.

         Ss. 11 and 12 of the Act, which are relevant in this context, may
    now be referred to. They read, in so far as is relevant for our present
    purposes, as follows:
c
               "Section 11:

               "Protection of a tenant against eviction-( 1) Notwithstand-
               ing anything to the contrary in any other Act or law, no
               order or decree for the recovery of possession of any house
D              or shop shall be made by any court in favour of the landlord
               against a tenant xxx xxx xxx


               Provided that nothing in this sub-section shall apply to any
               suit for decree for such recovery of possession
E
               xxx                          xxx                           xxx

               (i) subject to the provisions of section 12, where the
               amount of two months rent legally payable by the tenant
               and due from him is in arrears by not having been paid
F              within the time fixed by contract or in the absence .of such
               contract by the fifteenth day of the month next following
               that for which the rent is payable for by not having been
               validly deposited in accordance with section 14:


                Provided that no such amount shall be deemed to be in
G
                arrears unless the landlord on the rent becoming due serves
                a notice in writing through post office under a registered
              · cover on ·the tenant to pay or deposit the arrears within a
                period of fifteen days from the date of the receipt of such a
                notice and the tenant fails to pay or deposit the said arrears
                within the specified period.
H
        MADAN & CO. v. WAZIR CHAND (RANGANATHAN, J.I                    987

           Section 12:
                                                                               A
           When a tenant can get the benefit of protection against
           eviction-

           ( 1) If in a suit for recovery of possession of any house or
           shop from the tenant the landlord would not get a decree            B
           for possession but for clause (i) of the proviso to sub-
           section ( 1} of section 11, the Court shall determine the
           amount of rent legally payable by the tenant and which is in
           arrears taking into consideration any order made sub-
           section ( 4) and effect thereof upto the date of the order
           mentioned hereafter, as also the amount of interest on such
           arrears of rent calculated at the rate of nine and three
                                                                               c
           eights per centum per annum from the day when the rents
           became arrears upto such date, together-with the amount
           of such costs of the suit as if fairly allowable to the plaintiff
           landlord, and shall make an order on the tenant for paying
           the aggregate of the amounts (specifying in the order such          D
           aggregate sum) on or before a date fixed in the order.

           (2) Such date fixed for payment shall be the fifteenth day
           from the date of the order excluding the day of the order.
           (3) If, within the time fixed in the order under sub-section
           (1) the tenant deposits in the Court the sum specified in the       E
           said order, the suit so far as it is a suit for recovery of
           possession of the house or shop, shall be dismissed by the
           court. In default of such payment the Court shall proceed
           with the hearing of the suit.
           Provided that the tenant shall not be entitled to the benefit       F
           of protection against eviction under this section, if, not-
           withstanding the receipt of notice under proviso to clause
           (i) of the proviso to sub-section (1) of section 11, he makes
           a default in the payment of rent referred to in clause (i) of
           the proviso to sub-section (1) of section 11 on three occa-
           sions within a period of eighteen months.                           G

           xxx                          xxx                           xxx"

      On the terms of the above sections, the controversy in this case
turned on the question whether the notice sent by the respondent by
registered post on 26.11.1976 can be said to have been served and the          H
    988         SUPREME COURT REPORTS                [1988] Supp. 3 S.C.R.

A petitioner can be said to have been in receipt of the said notice. If the
  answer to this question is in the affirmative, as held by all the courts
  concurrently, there is nothing further to be said. The contention of the
  appellant-tenant however, is that the statute postulates a factual
  service of the notice on, and the actual receipt of it by, the tenant and
  that this admittedly not being the position in the present case, no
B eviction could have been decreed.

           Shri Sol~Sorabjee, learned counsel appearing for the tenant sub-
    mitted that the safeguards in Ss. 11 and 12 of the Act are intended for
    the benefit and protection of the tenant and that, therefore, where the
    Act provides for the service of the notice, by post, this requirement
    has to be strictly complied with. He referred to the decisions in Hare
c   Krishna Das v. Hahnemann Publishing Co. Ltd., [1965-66]70 C.W.N.
    262 and Surajmull Ghanshyamdas v. Samadarshan Sur, ILR 1969-1
    Cal. 379 to contend that such postal service can neither be presumed
    nor considered to be good service where the letter is returned to the
    sender due to the non-availability of the addressee. He urges that, in
D   the absence of any enabling provision such as the one provided for in s.
     106 of the Transfer of Property Act, service by some other mode, such
    as affixture, cannot be treated as sufficient compliance with the
    statute. In this context, he referred to the frequently applied rule in
    Taylor v. Taylor, [1875] 1 Ch. D. 426 that where a power is given to do
    a certain thing in a certain way, the thing must be done in that way or
E   not at all and that other methods of performance are necessarily
    forbidden. He urged that even if service by affixture can be considered
    to be permissible, there are stringent pre-requisites for service by
                                                                                  •
    affixture, such as those outlined in Order V rules 17 to 19, of the Code
    of Civil Procedure (C.P.C.) and that these pre-requisites were not
    fulfilled in the present case. He pointed out that even under the CPC,
F   service by such affixture can be recognised as valid only if sincere and
    vigilant attempts to serve the notice on the addressee personally are
     unsuccessful. In the present case, it is submitted, the evidence shows
    that the postman made no serious efforts to ascertain the whereabouts
    of the addressee even though the evidence showed that a servant of the
    petitioner firm was known to the postman and was present in the
G    neighbourhood. He, therefore, submitted that the High Court should
     have dismissed the suit for eviction filed by the landlord on the ground
     that the requirements of S. 11 and 12 of the Act were not satisfied.

           We are of opinion that the conclusion arrived at by the courts
     below is correct and should be upheld. It is true that the proviso to
H    clause (i) of section 11( 1) and the proviso to section 12(3) are intended
          MADAN & CO. v. WAZIR CHAND [RANGANATHAN, J.]               989

  for the protection of the tenant. Nevertheless it will be easy to see that
                                                                             A
  too strict and literal a compliance of their language would be impracti-
  cal and unworkable. The proviso insists that before any amount of rent
  can be said to be in arrears, a notice has to be served through posts. All
  that a landlord can do to comply with this provision is to post a prepaid
  registered letter (acknowledgement due or otherwise) containing the
  tenant's correct address. Once he does this and the letter is delivered B
  to the post office, he has no control over it. It is then presumed to have
  been delivered to the addressee under s. 27 of the General Clauses
  Act. Under the rules of the post office, the letter is to be delivered to
  the addressee or a person authorised by him. Such a person may either
  accept the letter or decline to accept it. In either case, there is no
  difficulty, for the acceptance or refusal can be treated as a service on,
  and receipt by, the addressee. The difficulty is where the postman calls c
  at the address mentioned and is unable to contact the addressee or a
  person authorised to receive the letter. All that he can then do is to
  return it to the sender. The Indian Post Office Rules do not prescribe
  any detailed procedure regarding the delivery of such registered
  letters. When the postman is unable to deliver it on his first visit, the D
  general practice is for the postman to attempt to deliver it on the next
  one or two days also before returning it to the sender. However, he has
  neither the power nor the time to make enquiries regarding the where--
  abouts of the addressee; he is not expected to detain the letter until the
  addressee chooses to ·return and accept it; and he is not authorised to
  affix the letter on the premises because of the assessee's absence. His E
  responsibilities cannot, therefore, be equated to those of a process
  server entrusted with the responsibilities of serving the summons of a
  Court under OrderV of the C.P.C. The statutory provision has to be
  interpreted in the context of this difficulty and in the light of the very
  limited role that the post office can play in such a task. If we interpret
  the provision as requiring that the letter must have been actually de- F
  livered to the· addressee, we would be virtually rendering it a dead
  letter. The letter cannot be served where, as in this. case, the tenant is
  away from the premises for some considerable time. Also, an addres-
  see can easily avoid receiving the Jetter addressed to him without
  specifically refusing to receive it. He can so manipulate matters that it
- gets returned to the sender with vague endorsements such as "not G
  found", "not in station", "addressee has left" and so on. It is sug~
  gested that a landlord, knowing that the tenant is away from station for
  some reasons, could go through the motions of posting a letter to him
  which he knows will not be served. Such a possibility cannot be
  excluded. But, as against this, if a registered Jetter addressed to a
  person at his residential address does not get served in the normal H
    990         SUPREME COURT REPORTS                  [1988] Supp. 3 S.C.R.

A course and is returned, it can only be attributed to the addressee's own
  conduct. If he is staying in the premises, there is no reason why it
  should not be served on him. If he is compelled to be away for some
  time, all that he has to do is to leave necessary instructions with the
  postal authorities either to detain the letters addressed to him for some
  time until he returns or to forward them to the address where he has
B gone or to deliver them to some other person authorised by him. In
  this situation, we have to chose the more reasonable, effective, equit-
  able and practical interpretation and that would be to read the words
  "served" as "sent by post", correctly and properly addressed to the
  tenant, and the word "receipt" as the tender of the letter by the postal
  peon at the address mentioned in the letter. No other interpretation,
C we think, will fit the situation as it is simply not possible for a landlord
  to ensure that a registered letter sent by him gets served on, or is
  received by, the tenant.

           Much emphasis has been placed by the courts below and counsel
    for the.Jandlord on the attempt made by the landlord to serve the
D   notice on the premises in the presence of the witnesses. While the
    counsel for the landlord would have it that the steps show the land-
    lord's bona [ides, counsel for the tenant submits that the haste with
    which the 'substituted service' was effected and the lack of any real
    attempt to find out the whereabouts of the tenant (who had, according
    to him, been compelled to be away at Amritsar for medical treatment)
E   throw consideration doubts on the claim of bona [ides. We do not
    think that any statutory significance can at all be attached to the
    service by affixture claimed to have been effected by the landlord. The
    statute prescribes only one method of service for the notice and none
    other. If, as we have held, the despatch of the notice by registered post
    was sufficient compliance with this requirement, the landlord has
F   fulfilled it. But, if that is not so, it is no compliance with the statute for
    the landlord to say that he has served the notice by some .other
    method. To require any such service to be effected over and above·the
    postal service would be to travel outside the statute. Where the statute
    does not specify any such additional or alternative mode of service,
    there can be no warrant for importing into the statute· a method of
G   service on the lines of !he provisions of the C.P.C. We would therefore
    not like to hold that a "substituted" service, such as the one effected
    by the landlord in the present case, is a necessary or permissible
    requirement of the statute. It may be even an impracticable, if not
    impossible, requirement to expect some such service to be effected in
    cases where the landlord lives outside the town, or the State in which
H   the premises are situated. If, in the present case, the landlord attemp-
                    MADAN & CO. v. WAZIR CHAND [RANGANATHAN, J.[                 991

           ted such service because he was in the same town, that can only show A
           his bona fides and it is only in this view that we proceed to express our
           findings in this regard.

                  Having gone through the facts stated in the various orders, we
            think that the landlord did his best in the circumstances. We are
            unable to accept the tenant's contention that the .mere circumstances       B
            that he had the notice affixed immediately on the day following the
            date of return of the postal notice is an indication of ma/a fides. What
           is material is that his evidence that he took the notice to the premises
           and had it affixed on the premises, as he could not find the tenant,
           stands uncontradicted. Indeed there is no doubt or dispute that the
           tenant was away from Jammu at the relevant time. The plaintiff's
           father's evidence is clear and categorical that neither the tenant nor his   G
           servant was available. There is no suggestion made to him that he
           made no real effort to ascertain the tenant's address even though a
           servant was there who could have furnished the same. In the written
           submissions, now filed, it is admitted that the tenant and his servant
           were both away at Amritsar though it is said that this was due to his        D
           illness. It is however stated that the servant was coming to Jammu
           every week to collect the dak and that the postman had failed to make
           proper enquiry. If this was true, the servant must have at least made
           enquiries and learnt from the postman that a registered letter had
           come and been returned and informed the tenant who could have
           taken steps to pay the arrears of rent. On the other hand, the evidence      E
           of the plaintiff's father and witnesses to the affixture, of the postman
           and of the tenant's own witness shows that there was no servant on the
           premises. The evidence of the postman is categorical that there was no
           servant at the premises which was locked. He says he had learnt from
           enquiries in the neighbourhood that the tenant had not been living in
           the premises for the past few months. He admits that he knew there           F
           was a servant but says that the servant was also not there at the rele-
           vant time. His reference to the servant working as a pheriwala at the
           same place is in regard to the time when he was giving evidence (i.e. in


'          Dec. 1978). It is not the case of the tenant that the other partner, son
           of Sohan Singh, was available for service either. Thus the sum and
           substance of the evidence on record is that the tenant had gone away
           from the premises without intimating the landlord or neighbours of his
                                                                                        G

           correct address and without leaving behind any ·servant or agent to
           accept letters addressed to him. In this situation the landlord did the
           only thing he could.                               ·

                 We are quite conscious that the provision in regard to the notice      H

:.'.':f.
    992        SUPREME COURT REPORTS              (1988] Supp. 3 S.C.R.

A contemplated by the statute is unsatisfactory and hope that the legisla-
  ture would soon set it right. But, on the provision as it stands, we
  cannot but hold that alandlord must be held to have complied with the
  statut()ry requirement by sending a notice correctly addressed to the
  tenant by registered post. Also, in the present case, we are satisfied-
  as indeed the lower courts were-that the landlord did his best to bring
B the notice to the knowledge of the tenant. He cannot be expected to do
  any more. His petition for evictfon cannot be dismissed on this score.

          We only wish to add that, having regard to the fact that the
    tenant had deposited the arrears subsequently, we suggested to the
    parties that they should try to settle the matter amicably between
C   them.selves but the submissions filed by the parties after the hearing
    show that this has not been possible. We have, therefore, no alterna-
    tive but to dismiss this appeal and we hereby do so without, however,
    making any order as to costs.

D   R.S.S.                                              Appeal dismissed.




                                                                             I


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