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Supreme Court of India

P.K. VIJAYANversusKAMALAKSHI AMMA AND ORS.

Citation
1994 INSC 131
Decided
30 March 1994
Disposal
Dismissed

Holding

The Supreme Court held that the tenant’s failure to raise the Section 106 defence earlier amounts to a waiver under Explanation IV to Section 11 CPC, so the civil court can decide the matter and the appeal is dismissed.

Summary

The landlords filed an eviction petition under Section 11 of the Kerala Buildings (Lease and Rent Control) Act, 1965, which the Rent Controller accepted, directing them to sue in civil court. The tenant first sought relief under Section 72B of the Kerala Land Reforms Act, claiming assignment of title as a cultivating tenant, but the Land Tribunal dismissed the claim, holding the lease was commercial. In the subsequent civil suit, the tenant raised a plea under Section 106 of the Land Reforms Act for fixity of tenancy, arguing the civil court should refer the matter to the Land Tribunal under Section 125(3). The trial court allowed the reference, but the Kerala High Court reversed, holding the earlier proceedings barred the tenant’s Section 106 claim as res judicata. The Supreme Court held that the tenant’s failure to raise the Section 106 plea earlier amounted to a waiver under Explanation IV to Section 11 of the CPC, making the matter barred and the civil court competent to decide. Consequently, the appeal was dismissed without costs.

Issues considered

  • Whether the tenant’s omission of the Section 106 plea in the earlier rent‑control proceedings constitutes a waiver or constructive res judicata, precluding its later assertion in the civil suit.
  • Whether the civil court is barred from adjudicating the tenancy issue and must refer it to the Land Tribunal under Section 125(3) of the Kerala Land Reforms Act.

Legislation cited

Subjects

evictiontenancyres judicatacommercial leasefixity of tenancyKerala Land Reforms ActCivil Procedure Codejurisdictionconstructive waiver

Judgment

                         P.K. VIJAYAN                                              A
                               v.
                   KAMALAKSHI AMMA AND ORS.

                             MARCH 30, 1994

            [K. RAMASWAMY AND B.L. HANSARIA, JJ.]                                  B

        Tenancy Laws-Kera/a Buildings (Lease and Rent Control) Act, 1965/
Kera/a Land Reforms Act-Section I I/Sections 72- Band 106-Eviction peti-
tion u/s 11-Denial of title of landlord-Claim allowed-Remedy of Section
72B availed-Civil Suit for eviction-Tenant's plea of tenancy u/s 106-Claim         C
of fixity of tenancy-Maintainability-Applicability of Explanation IV to Sec-
tion 11 C.P. C.

      The respondent landlord filed petition u/s 11 of the Kerala Buildings
(Lease and Rent Control) Act, 1965, for eviction of the tenant. The Rent
Controller accepted the tenant's plea of denial of title of the landlord and       D
relegated the respondents to seek eviction by civil suit. Before its initiation,
the appellant tenant availed remedy u/s 72B of the Kerala Land Reforms
Act. The Learned Tribunal rejected the petition. The landlords filed civil
suit for eviction of the appellant. In the suit the appellant, relying on
Section 106 of the Land Reforms Act, claimed lixity of tenancy. He also            E
claimed that the Civil Court shall have to refer the matter to the Land
Tribunal u/s 125(3) of the Land Reforms Act and the Civil Court is devoid
of jurisdiction to decided the question. The trial court held that the
appellant is entitled to the reference u/s 125(3). Revision filed against the
judgment was allowed by the High Court, holding that the Tribunal cannot
decide the dispute in view of the earlier order under section 72B and also         F
on the ground of res-judicata.

       In this appeal, appellant contends that section 106 of the Kerala
Land Reforms Act creates a right in favour of the tenant having a com-
mercial lease. The appellant having constructed the theatre on the land is         G
entitled to lixity of tenancy.

     According to the respondents, the rent control proceedings u/s l l -0f
the Rent Control Act operates as res-judicata since the appellant had the
opportunity to plead the right of Section 106, but he failed to do so.
Secondly, the appellant having elected to pursue the proceedings u/s 72 B H
                                      213
     214                    SUPREME COURT REPORTS                 [1994] 3 S.C.R.

A    of the Land Reforms Act and having become unsuccessful, is estopped by
     his conduct to raise plea u/s 106 thereof to non •uit the landloard in the
     civil suit.

             Dismissing the matter, this Court

B         HELD : I.I. The appellant merely chose to deny the title of the
    landlords and did not raise the plea of Section 106 of the Land Reforms
    Act. The rule of "might and ought" envisaged in Explanation N to Section
    11 C.P.C. squarely applies to the facts of the case and, therefore, it is no
    longer open to the appellant to plead that, Civil Court has no jurisdiction
C   to decide the matter and it shall be required to be referred to the Land
    Tribunal. That apart, the proceedings under Sec. 72 B were also decided
    against the tenant. (218-C-D)

         Narayanan v. Kunchi Amma Parukutty Amma, (1986) KL T 1340,
    approved.
D
            Abdulrahiman v. Abdulla Haji, (1991) 1 KLT 702, distinguished.

          1.2. The appellant having decided only to avail the remedy of Section
    72 B and omitted to plead the remedy of Section 106, it is no longer open
    lo him to contend that he is entitled to the benefit of Section 106 of the
E   Land Reforms Act. (218-E:F)

           13. It would be fair and just that the parties raise all available
    relevant pleas in the suits or the proceedings when the action is initiated
    and the on1ission thereof does constitute constructive res judicata to
    prevent raising of the same at a later pOint of time. Thus it must be deemed
F   that they are waived. [219-B-C]

            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2160 of
                                                                                    i
    1994.

            From the Judgment and Order dated 18.8.88 of the Kerala High
G Court in C.R.P. No. 2220 of 1987-B.

            N. Sudhakaran for the Appellant.

            P.S. Poli, and E.M.S. Anam for the Respondent.

H           The Judgment of the Court was delivered by
              VIJAYAN v. KAMALAKSHI [RAMASWAMY.J.]                         215

      K. RAMASWAMY, J. Leave granted.                                             A
       2. This appeal by special leave arises from the order to the High
Court of Kerala dated August 18, 1988 made in C.R.P. No. 2220 of 1987-B.
The respondent-landlords filed R.C.P. No.19 of 1974 under Section 11 of
Kerala Buildings (Lease and Rent Control) Act, 1965, for eviction of the
appellant-tenant. Under the proviso thereto if the tenant denies the title of B
the landlord or claims right of permanent tenancy, the Rent Controller
shall decide whether the denial or claim is bona fide. Recording of such a
finding positively in favour of the tenant will require the landlord lo sue
for eviction of the tenant in a civil court. The Rent Controller had accepted
the plea of the tenant to be bona fide and relegated the respondents to C
seek eviction by a civil suit. Before its initiation, the appellant filed OA No.
11730 of 1986 before the Land Tribunal under the Kerala Land Reforms
Act claiming that the lease was of the agricultural land and as a cultivating
tenant, he is entitled to get assignment of the title of the land under Section
72 B of the Land Reforms Act which postulates that the cultivating tenant
of any holding or part of a holding, the right, title and interest in respect D
of which have vested in the Government under Section 72, shall be entitled
to assignment of such right, title and interest. The 11 cultivating tenant11 is
defined to mean a tenant who is in actual possession of, and is entitled to
cultivate the land comprised in his holding. (emphasised supplied)
                                                                                  E
       3. The Land Tribunal, by an order dated November 29, 1976, found
that the lease was of commercial building and it is not an agricultural land.
Therefore, the appellant was not entitled to the assignment of the right,
title and interest in the holding and accordingly dismissed the petition.

       4. The respondents filed OS No. 67 of 1987 for eviction of the F
appellant. In the suit the appellant relying on Section 106 of the Land
Reforms Act, claimed fixity of tenancy pleading that the land was demised
for a commercial or industrial purpose and the appellant had constructed
a building thereon for commercial purpose before May 20, 1967 and that,
therefore, the appellant by operation of Section 106 of the Land Reforms G
Act cannot be ejected. He also claimed that the Civil Court shall have to
refer the matter to the Land Tribunal under Section 125(3) of the Land
Reforms Act and the Civil Court is devoid of Jurisdiction to decide the
question.

      5. Section 106 of the Kerala Land Reforms Act provides thus :               H
    216                   SUPREME COURT REPORTS                    [1994] 3 S.C.R.

A            ''106. Special provision.s relating to leases for commercial or in-
             duslrial purposes :

             (1) Notwithstanding anything contained in this Act, or in any other
             law, or in any contract, or in any order or decree of court, where
             on any land leased for commercial or industrial purpose, the lessee
B            has constructed buildings for such commercial or industrial pur-
             pose, before the 20th May, 196(, he shall not be liable to be evicted
             from such land, but shall be liable to pay rent under the contract
             of tenancy, and rent shall be liable to be varied every twelve years.

             Explanation : For the purposes of this section, -
c
             (a) 'lessee' includes a legal representative or an assignee of that
             lessess; and

             (b) 'building' means a permanent or a temporary builing and
             includes a shed. 11
D
          6. Sub-section (3) of Section 125 creates a bar of jurisdiction of the
    Civil Court. It reads :

            "S. 125(3) If in any suit or other proceeding any question regarding
E           rights of a tenant or of a Kudikidappukaran (including a question
            as to whether a person is a tenant or a kudikidappukaran) arises,
            the Civil Court shall stay the suit or other proceedings and refer
            such question to the Land Tribunal having Jurisdiction over the
            area in which the land or part thereof is situated together with the
            relevant records for the decision of that question only."
F
          7. The trial court held by its order dated August 3, 1987 that the
    appellant is entitled to the reference under Section 125(3). Feeling ag-
    grieved, the respondents filed revision in the High Court. The High Court
    allowed the revision and held that the Land Reforms Tribunal cannot
G   decide the dispute in view of the earlier order under Section 72B and also
    on the ground of res-judicata. Calling in question the order of the High
    Court, the above appeal has been filed.

          8. The contention of Sri Sudhakaran, the learned counsel for the
    appellant, is that Section 106 creates a right in favour of the tenant having    ,___'
H   a commercial lease. The appellant had constructed the theatre on the land
\
                 VIJAYAN v. KAMALAKSHI [RAMASWAMY,J.]                      217

    demised by the respondents for commercial purpose, namely, to run A
    cinema theatre and that, therefore, the appellant is entitled to fixity to
    tenancy. When that was disputed by the landlords-respondents, the only
    forum to decide the issue is the Land Tribunal and not the Civil Court and
    the High Court is not right in its contra conclusion.

            9. Sri P.S. Poti, the learned senior counsel for the respondents, on B
     the other hand, raised three fold contentions. First, according to the
    learned counse~ the rent control proceedings under Section 11 of the
    aforesaid Rent Control Act operates as res-judicata since the appellant had
    the opportunity to plead the right of Section 106, but he failed to do so. In
    the rent control proceedings, the appellant denied the title drivings the C
    landlords to file a suit, which was accepted by the rent controller. Accord-
    ingly the landlords laid the suit for eviction. Secondly, the appellaµt having
    elected to pursue the proceedings under Section 72 B and having become
    unsuccessful, he is estopped by his conduct to raise inconsistent or a
    different plea under Section 106 to non suit the landlords in the civil suit. D
    It is finally contended that the jurisdiction of this Court under Article 136
    is discretionery. The conduct of the appellent-tenant disentitles him of
    remedey and may not be exercised to interfere with the order of the High
    Court.

           10. Having given our anxious consideration to the respective conten- E
    tions we find that there is force in the contentions of Sri P.S.Poti. It is seen
    that the appellant had the opportunity to raise the plea of the bona fide
    denial of title as well as the remedies of Section 72 B and Section 106 of
    the Land Reforms Act. He merely chose to deny the title of the landlords
    setting up the plea that he constructed the buildings and that the lease was F
    only of open land. Whether or not the appellant or the landlords had
    constructed the building and leased out to run the cinema theatre or the
    question whether or not· the appellant had taken the open site or con-
    structed the super structure to run the theatre are acute disputed questions
    which for the purpose of the case, are not relevant for decision. Suffice it
    to say that Explanation IV to Section 11 of the Civil Procedure Code, 1908 G
    postulates that any matter which might had ought to have been made a
    ground of defence or attack in a former suit shall be deemed to have been
    a matter directly and substantially in issue in such suit; and no court shall
    try any such suit or issue in which the matter directly and substantially in
    issue in former suit between the same parties or between the parties under   H
    218                   SUPREME COURT REPORTS                   [1994] 3 S.C.R.

A whom they or any of them claim, litigating under the same title, in a Court
    competent to try such subsequent suit or the suit in which such issue has
    been subsequently raised and has been heard and finally decided by such
    court. Admittedly, in the former proceedings before the Rent Controller,
    the claim was ejectment of the appellant on the grounds envisaged in
    Section 11 of the Rent Control Act. The plea of entitlement under Section
B   106 of the Land Reforms Act was available to the appellant in the eviction
    proceedings and if it would have been raised, the Rent Controller would
    have had no juri-'diction to proceed further but to refer the same to the
    Land Tribunal for decision under Section 125(3) of the Land Reforms Act.

C          11. However, the appellant merely chose to deny the title of the
    landlords and did not raise the plea of Section 106 of the Land Reforms
    Act. The rule of "might and ought" envisaged in Explanation IV to Section·
    11 C.P.C. squarely applies to the facts of the case and, therefore, it is no
    longer open to the appellant to plead that, Civil Court has no jurisdiction
D   to decide the matter and it shall be required to be referred to the Land
    Tribunal. That apart, in the proceedings under Section 72 B the appellant
    pleaded that it is a land governed by the provisions of the Land Reforms
    Act and that, therefore, .he is entitled to the assignment of the right, title
    and interest therein. The Tribunal found that the lease being a commercial
    lease, the appellant is not entiled to the assignment of the right, title and
E   interest in the demised land which was not vested in the State under
    Section 72 since the lease was not of agricultural and demised to the
    appellant. In that view to the matter and the appellant having decided only
    to avail the remedy of Section 72 B and omitted to plead the remedy of
    Section 106, it is no longer open to him to contend that he is entitled to
    the benefit of Section 106 of the Land Reforms Act.
F

         12. In Narayanan v. Kunchi Amma Parukutty Amma, (1986) KLT                  '
  1340, a Division Bench of the High Court in para 9 therein held that it is
  true that the plea of tenancy under Section 106 of the Act now raised
G related to the different kind of tenancy; but on the principle contained in
  Explanation IV to Section 11 of the Civil Procedure Code we are inclined
  to hold that this was a matter which might and ought to have been raised
  at the time of earlier reference and therefore, the matter does not arise for
  trial by the Civil Court or the Tribunal. We accept that the statement of
  law has been correctly decided. It is true that in Abdulrahiman v. Abdulla
H Haji, (1991) 1 KLT 702, another Division Bench, without deciding the
\
                  VIJAYAN v. KAMALAKSHI [RAMASWAMY,J.]                         219

    question of res-judicata since it was not raised, held that the dismissal of A
    an application under Section 72B does not disentitle the benefit of Section
    106 on the plea of election in subsequent proceedings to claim the benefit
    under Section 106 of the Kerala's Land Reforms Act.

           13. We have already seen that the Land Reforms Act is a beneficial
    legislation and has conferred certain benefits on the tenants. The tenant is      B
    expected to raise all the pleas available under the statute at the relevant
    time. It is a sheer abuse of the process of the court to raise at each
    successive stages different pleas to protract the proceedings or to drive the
    party to multiplicity of proceedings. It would be fair and just that the
    parties raise all available relevant pleas in the suits or the proceedings when
    the action is initiated and the omission thereof does constitute constructive     C
    res judicata to prevent raising of the same at a later point of time thereby
    it must be deemed that they are waived.

          14. Acordingly we hold that the High Court is right in rejecting the
    claim of the appellant and the appeal is accordingly dismissed but without D
    costs.

    A.G.                                                       Appeal disnlli;sed.


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