Holding

A tenant is liable to be evicted under Section 12(1)(c) only if he expressly and unequivocally denies the landlord's title or disclaims the tenancy; absent such a clear denial, the ground does not apply.

Summary

The case concerned a suit for eviction of a tenant (Sheela et al.) by a partnership firm claiming to be the landlord of a shop premises under the Madhya Pradesh Accommodation Control Act, 1961. The tenant contested the eviction, arguing that the firm was not the owner and that his written statement merely sought proof of ownership rather than denying the landlord's title. The Supreme Court examined the legal meaning of "denial of landlord's title or disclaimer of tenancy" and held that such a denial must be clear, unequivocal and amount to a renunciation of the tenant's character, which was not present in the pleadings. Consequently, the decree for eviction under Section 12(1)(c) was set aside, but the court upheld eviction under Section 12(1)(h) because the premises were required for rebuilding. The appeal was allowed in part, directing the trial court to proceed with eviction under Section 12(1)(h) after compliance with Section 18.

Issues considered

What constitutes denial of landlord's title or disclaimer of tenancy under the Act?
Whether the tenant's pleadings amount to such denial attracting eviction under Section 12(1)(c).
Whether eviction can be sustained on the ground of bona‑fide requirement for rebuilding under Section 12(1)(h).

Legislation cited

Indian Evidence Act, 1872s. 116
Madhya Pradesh Accommodation Control Act, 1961s. 12(1)(c), s. 12(1)(f), s. 12(1)(h), s. 12(1)(t), s. 18, s. 2(b), s. 2(i)
Transfer of Property Acts. 111(g)

Subjects

denial of titledisclaimer of tenancyevictionrent controlMadhya Pradesh Accommodation Control ActSection 12(1)(c)Section 12(1)(h)estoppelownershiprebuilding

Judgment

SHEELA AND ORS. A
) v.
FIRM PRAHLAD RA! PREM PRAKASH

MARCH 4, 2002

[R.C. LAHOTI AND RUMA PAL, JJ.] B

Rent Control and Eviction:

MP. Accommodation Control Act, 1961-Section 12 (/) (c)-Eviction-
What is denial of landlord's title or disclaimer of tenancy by tenant and its C
effect on right of landlords to evict tenant-Held, such denial is an act which
is likely to affect adversely and substantially the interest of landlord-Thus is
ground ofeviction-For such denial tenant should have renounced his character
as tenant and in clear and unequivocal terms set up title of landlords in
himself or in a third party-Tenant bonafide to call upon.landlord to prove D
his ownership to protect himself from eviction but without disowning his
character of possession over tenancy premises as tenant-This intention of
tenant is to be gathered from the nature of plea-In the instant case, plea
raised by the tenant in written statement is not clear and unequivocal denial
of title of landlord, thus tenant not liable to be evicted under Section 12 (I)
~- E
Original owner of the suit premises inducted appellant ;is tenant Since
he was issueless he adopted a son and bequeathed his property to him. After
the death of the original owner, adopted son and his sons formed a registered
partnership. Respondent-firm filed suit for eviction of tenant claiming to be F
the owner of the suit premises. On the ground of bona fide requirement for
continuing their business and rebuilding the accommodation. Tenant pleaded
that he was not liable to be evicted since respondent-firm were not owners of
the suit premises. However, et other places tenant admitted respondent as
landlords having paid rent to the respondent after the death of original owner
and also initiating proceedings for fixing standard rent by impleading the G
respondent-firm as landlords. Trial Court found that the suit premises were
in dilapidated condition and needed re-construction. However, it dismissed
the suit since the landlord-tenant relationship between the parties was not
established. Aggrieved respondent-firm filed appeal. First Appellate Court set
aside the order of trial court in view of Section 12 (I) (c) of the M.P.
H
177
178 SUPREME COURT REPORTS [2002] 2 S.C.R.

.. A Accommodation Control Act , 1961. However, tenant died during the
pendency of first appeal and his legal representatives brought on record, filed ~-

second appeal which was dismissed. High Court upheld the decree passed by
the First Appellate Court. Hence the present appeal.
The. question which arose for consideration is what is denial of landlord's
B title or disclaimer of tenancy and what impact it has on the landlord's right
to evict and tenant's liability for eviction under the M.P. Accommodation
Control Act, 1961.
Disposing of the appeal, the Court
HELD: 1.1. Denial ofJandlord's title or disclaimer of tenancy by tenant
C is an act which is likely to affect adversely and substantially the interest of
the landlord and hence is a ground for eviction of tenant within the meaning
of clause (c) of sub-section (1) of Section 12 of M.P. Accommodation Control
Act, 1961 •. To amount to such denial or disclaimer, as would entail forfeiture
of tenancy rights and incur the liability to be evicted, the tenant should have
D renounced his character as tenant and in clear and unequivocal terms set up
title of the landlord in himself or in a third party. A tenant bona fide calling
upon the landlord to prove his ownership or putting the landlord to proof of
his title so as to.protect himself (i.e. the tenant) or to earn a protection made --
available to him by Rent Control Law but without disowning his character
of possession over the tenancy' premises as tenant cannot be said to have denied
E the title of landlord or disclaimed the tenancy. Such an act of the tenant does
not attract applieability of Section 12 (1) (c). It is the intention of the tenant,
as culled out from tbe nature of the plea raised by him, which is determinative
of its vulnerability. [187-G-H; 188-A-B]
1.2. The nature of the plea raised and the stand taken by the tenant in
F the written statement and at the trial is that he is the tenant and the
respondents·are the 'landlord', as defined in the Act, but the tenant demands
proof of 'ownership' of the respondents over the suit property as it cannot
be spelled out from the averments made in the plaint how the title over the
property came t<_i vest from the original owner, who had inducted the
G defendant as tenant in the suit premises, the adopted son though he was not
his natural born son and again from the adopted son to the partnership firm.
The pleading of the tenant has to be read and appreciated in the light of the
requirements of Section 12 (1) (I) of the Act which requires a decree for
eviction on the ground of bona fide requirement being passed only in favour
of an 'owner-landlord'; ownership being one of the ingredients of the ground
H for eviction. Such a plea raised by the tenant in his written statement is not a
SHEELA v. FIRM PRAHLAD RA! PREM PRAKASH 179

malicious act of the tenon I. The respondent staking a claim for eviction under A
Section 12 (I) (I) has also to prove ownership apart from landlordship. It
would have been different if the tenant would have raised such a plea as a
malicious or wanton act of himself by raising on his own a dispute as to the
title of the landlord as owner of the suit premises though the question of
ownership was not germane to the claim for eviction or if he would have B
disowned his character as tenant whilst in possession of the premises. The
plea raised by the tenant in his written statement is not a clear and unequivocal
denial of the title of th.e landlord. There is no reason to doubt the bona fides
of the tenant wt.ile raising such plea. Therefore, First Appellate Court and
the High Court were not right in holding availability of ground under Section
12 (I) (c) of the Act for eviction of the tenant basing such finding on the C
tenant's plea raised in the written statement and decree for eviction of tenant
under Section 12 (I) (c) is set aside. [188-F-H; 189-A-E]

1.3. The finding of the Trial Court that the accommodation was required
bona fide by the landlord for the purpose of re-building the same which could
not be carried out without the accommodation being vacated is correct and D
thus the tenani is liable to be evicted under Section 12 (I) (h) of the Act.
(189-E-F]
MM Quasim v. ManoharlalSharma, (1981( 3 SCC 36; Dilbagai Punjabi
v. SharadChandra, (1988) Supp. SCC 710; Raja Mohammad Amir Ahmad Khan
v. Municipal Board ojSitapurand Anr., AIR (1965) SC 1923; Tej Bhan Madan E
v. If Additional District Judge and Ors., (1988) 3 SCC 137; Majati Subbarao v,
P. V.K. Krishna Rao (deceased) by Lrs., [1989) 4 SCC 732; Kundan Mal v.
Guruduua, (1989) I SCC 552 and Hatimullah and Ors. v. Mahamad Abju
Choudhmy, AIR (1928) Calcutta 312, referred to.

WilliamsandJejferyv.Cooper, (1840) I Scott NR36; DoedE/lerbrockv. F
Flynn, I CR M and R 137 and Doed Gray Sta11ion, (1836) l M and W 695,
referred to.

law of Landlord and Tenant by Evans and Smith, Fourth Edition (1993)
p. 89, law of Landlord and Tenant by Hill and Redman (Sevcnteetb Edition,

- para 382. at page 445-446) and General Law of Landlord and Tenant by Foa
(Eight Edition, para 934, p. 589), referred to.
G

CIVIL APPEL LA TE JURISDICTION : Civil Appeal No. 3965 of
1999.

From the Judgment and Order dated 18.12.98 of the Manhya Pradesh
High Court in S.A. No. 33 of 1990. H
i80 SUPREME COURT REPORT.S [2002] 2 S.C.R.

'A Gaurav Jain and,Ms. Atiha Jain for the Appellants.

Satish K. Agnihotri for the Respondent.
'

The, Judgment .. of the .CQurt was delivered by

··ac. LA~OTI,. J. The tenant is in appeal by special leave, feeling ...
B aggrieved by the judgment and dec.ree of the First Appellate Court, maintained,
by the High Coutt, directing the tenant to be evicted from the suit ~

r
accommodation, which is a shop, on the ground available under clauses (c)
and (h) of _sub-section (I) of Section 12 of the M.P. Accommodation _Control
Act, 1961, (hereinafter, the Act, for sliort).
>-
c
The facts, relev~t and not in dispute at this stage, are that the property
of which-the suit aq;ornmodation is a part was owned by late Khetsidas who
inducted the defendant as a tenant:" Khetsidas died issueless. However, he had
adopted Prahlaci Rai as a soh. He had also executed a registered deed of will
bequeathing his 'J>ropertY to Prahlad Rai. Pral;tlad Rai has two sons, namely,
D Prem Prytkash and Pawan ~umar. Pnililad Rai and his two sons have constituted _
a partnership which is registered as Firm Prahlad Rai Prem Prakash. _
~
The firm claiming itself to be the owner of the suit premises filed suit
for ejectment of the tenant-defendant on two grounds, firstly, that the
~
accommodation was required bona fide by the plaintiffs for the purpose of r
E '
continuing their own business, and secondly, that the accommodation was
required bona fide by the plaintiffs for_ the purpose of re-building which.
could not be carried out without the accommodation being vacated. ln the (

written statement, while contesting the claim of the plaintiffs for eviction, the
'
,,.,.,..
defendant-tenant pleaded inter alia that the plaintiffs were not the owners of
F the suit premises_ and therefore the tenant was not liable to be evicted though
in that very written statement, at other places, the defendant admitted the
plaintiffs as his landlords, also' having paid rent to the plaintiffs after the
death of Khetsidas, and. also having initiated proceedings for fixing standard I

rent of the premises in which proceedings the tenant had impleaded the
plainti{f-firm as opposite party a!leging the firm to be' the landlord of the suit
G
accommodati9n. ..... ' {

, The Trial Court framed several issues, arising from the pleadings of the
parties, including an issue to the effect - whether the defendant-tenant had ·-...
denied the title of the landlord. and if so, to ~hat effect. Having tried the
H _issues the Trial Court found that the suit premises were in a dilapidated

L
I
SHEELA v. FIRM PRAHLAD RA! PREM PRAKASH [R.C. LAHOTI, l.] 181

condition and needed re-construction for which purpose the plaintiffs were A
prepared to proceed and had requisite funds available with them, and therefore,
the defendant was liable to be evicted so as to hand-over vacant possession
over the suit premises to the plaintiffs and the plaintiffs were liable to complete
the re-construction and hand-over possession to the defendant-tenant on
completion thereof as required by the provisions of the Act. So far as disclaimer B
is concerned the Trial Court found that the defendant-tenant had admitted
ownership of late Khetsidas but had only disputed the derivative title of the
plaintiffs which the defendant-tenant could do without incurring the wrath of
Section 12(l)(c) of the Act. However, at the end, the Trial Court held the
,,- plaintiffs not entitled to decree for eviction inasmuch as the landlord-tenant
relationship between the plaintiff-firm and the tenant was not established. C
The suit was directed to be dismissed.

In an appeal preferred by the plaintiffs the learned Additional District
Judge did not agree with the Trial Court so far as the ;iround of disclaimer
is concerned and held that the defendant's plea taken in the written statement
furnished a ground for his eviction under Section 12(l)(c) of the Act. The D
availability of ground under Section 12(1)(h) and the finding of the Trial
Court in that regard was neither challenged in First Appeal nor dis-lodged by
the First Appellate Court. In view of availability of ground under Section
12(l)(c) of the Act, the First Appellate Court directed the tenant to be eviCted
and the plaintiffs to be placed in vacant possession of the suit premises. E
It appears that the defendanl-tenant had died during the pendency of
first appeal and his legal representatives were brought on record. They tiled
' second appeal which has failed and the High Court has maintained the decree
passed by the First Appellate Court.
F
We may make it clear that so far as the ground under Section 12(1 )(f)
of the Act based on bona fide need of the plaintiffs for the suit accommodation
is concerned the same was negatived by the Trial Court. The plaintiffs gave
up this ground and did not pursue the same and therefore this ground is
rendered redundant. A mention thereof is being made because it would have
relevance for the purpose of deciding availability of ground of eviction under G
Section 12(1)(c) of the Act as will be noticed shortly hereinafter.

The clauses relevant for· our purpose, viz. (c), (f) and (h) of sub-section
(I) of Section 12 of the Act read as under:-

Sec.12. Restriction on eviction of tenants. H
182 SUPREME COURT REPORTS [2002] 2 S.C.R.

A (I) NotWithstanding an)1hing to the contrary contained in any .-
other law or contract, no suit shall be filed in any Civil Court against
a tenant for his eviction from any accommodation except on one or
more of the following grounds only namely:-
~
xxx xxx xxx xxx
B xxx xxx xxx xxx
(c) that the tenant or any person residing with him has created a
nuisance or has done any act which is inconsistent with the purpose
for which he was admitted to the tenancy of the accommodation,
or which is likely to affect adversely and substantially the interest :...,,,
c of the landlord therein
xxx xxx xxx xxx
xxx xxx xxx xxx
(t) that the aceommodation let for non-residential purpose is required
D bona-fide by the landlord for the purpose of continuing or starting
his business or that any of his major sons or unmarried daughters
if he is the owner thereof or far any person for whose benefit the )t

accommodation is held and that the landlord or such person has
no other reasonably suitaple non-residential accommodation of
his own in his occupation in the city or town concerned.
E
xxx xxx xxx xxx
(h) that the accommodation is required bonafide by the landlord for
the purpose of building or re-building or making thereto any
~,
substantial addition\ or· alterations and that such building or
alterations cannot be carried out without the accommodation being
F
vacated. (emphasis supplied)

'Landlord' and 'tenant' are defmed in the Interpretation Clause of the
Act as under:-

(b) "landlord" means a person who for the time being is receiving or
G
is entitled to receive, the rent of any accommodation, whether on his
own account or on account of or for the benefit of any other person
or as a trustee, guri.rdian or receiver for any other person or who
would so receive the rent or be entitled to receive the rent, if the
accommodation were let to a tenant and includes every person not
H being a tenant who from time to time derives title under a landlord.
-,

SHEELA v. FIR!YI PRAHLAD RA! PREM PRAKASH [R.C. LAHOTI, l.) 183

(i) "tenant" means a person by whom or on whose account or behalf A
the rent of any accommodation is, or, but for a contract express or
implied, would be payable for any accommodation and includes any
person occupying the accommodation as a sub-tenant and also any
person continuing in possession after the termination of his tenancy
whether before or after the commencement of this Act; but shall not B
include any person against whom any order or decree for eviction has
been made.

While seeking an ejectment on the ground of bona fide requirement
under clause (t) abovesaid the landlord is required to allege and prove not
only that he is a 'landlord' but also that he is the 'owner' of the premises. C
The definition of 'landlord' and 'tenant' as given in clauses (b) and (i) of
Section 2 of the Act make it clear that under the Act the concept of landlordship
is different from that of ownership. A person may be a 'landlord' though not
an 'owner' of the premises. The factor determinative of landlordship is the
factum of his receiving or his entitlement to receive the rent of any
accommodation. Such receiving or right to receive the rent may be on the D
own account of the landlord or on account of or for the benefit of any other
person. A trustee, a guardian and a receiver are also included in the definition
of landlord. Such landlord would be entitled to seek an eviction of the tenant

- on one or more of such grounds falling within the ambit of Section 12(1) of
the Act which· do not require the landlord to be an owner also so as to be E
entitled to successfully maintain a claim for eviction. Clause (t) contemplates
a claim for eviction being maintained by an owner-landlord and not a landlord
merely. Though of course, we may hasten to add, that the concept of ownership
in . a landlord-tenant litigation governed by Rent Control Law has to be
distinguished from the one in a title suit. Ownership is a relative term the
import whereof depends on the context in which it is used. In Rent Control F
Legislation, the landlord can be said to be owner if he is entitled in his own
legal right, as distinguished from for and on behalf of someone else, to evict
the tenant and then to retain, control, hold and use the premises for himself.
What may suffice and hold good as proof of ownership in a landlord tenant
litigation probably may or may not be enough to successfully sustain a claim G
for ownership in a title suit. In MM Quasim v. Manohar/al Sharma, [ 1981]
3 sec 36, it was held that an 'owner-landlord' who can seek eviction on the
ground of his personal requirement is one who has a right against the whole
· world to occupy the building in his own right and exclude anyone holding
a title lesser than his own. In Dilbagrai Punjabi v. Sharad Chandra, [1988]
Supp SCC 710, this Court held that it was essential to sustain a claim of H
,.

184 SUPREME COURT REPORTS (2002) 2 S.C.R.

A eviction under Section 12(l)(f) of the Act to establish that the plaintiff was
the owner of the premises. However, the Court upheld the ownership of the
landlord having been proved on the basis of an admission of the ownership
of the plaintiff made by the defendant in reply to notice given before the
!
institution of the suit and the recital of the name of the plaintiff as the owner
B of the property contained in the receipts issued by the landlord to the tenant
over a period of time. Thus, the burden of proving ownership in a suit
between landlord and tenant where the landlord-tenant relationship is either
admitted or proved is not so heavy as in a title suit and lesser quantum of
proof may suffice than what would be needed in a suit based on title against
a person setting up a contending title while disputing the title of the plaintiff.
C Nevertheless pleading and proving ownership, in the sense as it carries in
Rent Control Law, is one of the ingredients of the ground under Section
12(I)(f) of the Act.

What is denial of landlord's title or disclaimer of tenancy and what
impact it has on the landlord's right to evict and tenant's liability for eviction
D under the Act?

It is pertinent to note that denial of title of the landlord or disclaimer
of tenancy is not as such set out as a ground on which tenant may be evicted
under Section 12 of the Act. Section 12(1 )(c) provides inter alia that a tenant
E incurs liability for eviction if the tenant or any pc.-son residing with him has
done any act which is likely to affect adversely and substantially the interest
of the landlord therein. A tenant's denial of the landlord's title and/or
-
disclaimer of tenancy has been held to be an act which is likely to affect
adversely and substantially the interest of the landlord. In a series of decisions,
the High Court of Madhya Pradesh has consistently taken this view and we
F see no reason to make a departure therefrom. It has to be seen how and in
what manner a denial of title or disclaimer by tenant would attract applicability
of Section l2(l)(c) of the Act? In our opinion, the denial or disclaimer to be
relevant for the purpose of Section 12(1 )(c) should take colour from Section
I 16 of the Evidence Act and Section 111 (g) of the Transfer of Property Act.
Section 116 of the Evidence Act embodies therein a rule of estoppel. No
G
tenant of immovable property, or person claiming through such tenant, shall,
during the continuance of the tenancy, be pennitted to deny that the landlord
of such tenant had, at the beginning of the tenancy, a title to such immovable
property. This estoppel so long as it binds the tenant excludes the tenant from
raising a plea disputing the title of his landlord at the commencement of the
H tenancy. It flows as a corollary therefrom that the proof of landlord-tenant
SHEELA v. FIRJv! PRAHLAD RA! PREM PRAKASH [R.C. LAHOTI, J.] · 185

relationship tantamounts during the continuance of tenancy to proof of A
ownership of landlord over the tenancy premises at the begijining of the
tenancy so far as the tenant is concerned. It is significant to note that on the
phraseology of Section I 16 of the Evidence Act the rule of estoppel applies
so long as the tenancy is not terminated and the rule estops the tenant from
laying challenge to the ownership of the landlord at the commencement of
the tenancy. But the rule of·estoppel as incorporated in Section 116 is not ~
exhaustive and it may be extended or suitably modified in its application to
other situations as well, retaining the basic feature of the rule. Clause (g) of
Section 111 of the Transfer of Property Act, insofar as relevant for our
purpose, provides that a lease of immovable property determines by forfeiture
in case the lessee renounces his character as such by setting up a title in a C
third person or by claiming title in himself. This provi~ion ~ontemplates two
' fact-situations which entail the lessee having renounced his character as such
and they are: (i) when the lessee sets up a title in a third person, or (ii) when
he claims title in himself. In either case, the tenant has disputed and denied
the title of his landlord because a title in third person or title in himself
D
-- cannot co-exist with the title in the landlord.
The law as to tenancy being determined by forfeiture by denial of the
lessor's title or disclaimer of the tenancy has been adopted in India from the
Law of England where it originated as a principle in consonance with justice,
.... equity and good conscience. On enactment of the Transfer of Property Act, ·
1882, the same was incorporated into clause (g) of Section 111. So just is the E
rule that it has been held applkable even in the areas where the Transfer of
Property Act does not apply (See - Raja Mohammad Amir Ahmad Khan v.
J
Municipal Board ofSitapur and Anr., AIR (1965) SC 1923. The principle of
determination of tenancy by forfeiture consequent upon denial of the lessor's
title may not be applicable where rent control legislation intervenes and such F
legislation while extending protection to tenants from eviction does not
recognize such denial or disclaimer ·as a ground for termination of tenancy
and eviction of tenant. However, in various rent control legislations such a
ground is recognized and incorporated as a ground for eviction of tenant
either expressly or impliedly by bringing it within the net of an act injurious ·
to the interest of the landlord on account of its mischievous content to prejudice G
adversely and substantially the interest of the landlord.
Denial of landlord's title or disclaimer of tenancy, is it an act injurious
to interest of landlord? How does this rule operate and what makes it offensive?
Evans & Smith state in the Law of Landlord and Tenant (Fourth Edition,
1993, at p.89) that it is an implied condition of every lease, fixed-term or ·H
186 SUPREME COURT REPORTS (2002) 2 S.C.R.
\
A periodic and formal or informal, that the tenant is •not expressly or impliedly
to deny the' landlord's title or prejudice it by any acts which are inconsistent
with the existence of a tenancy. Disclaimer of the landlord's title is analogous
to repudiation of a contract. The rule is of feudal origin; the courts are not
anxious to extend it and so any breach of this condition must be clear and
unambiguous. Hil~ & Redman in Law of Landlord and Tenant (Seventeenth
B Edition, para 382, at page 445-446) dealing with ''.Acts \I, hich prejudice lessor's
title" state that there is implied in every lease a condition that the lessee shall
not do anything that may prejudice the title of the lessor; and that if this is
done the lessor may re-enter for breach of this implied condition. Thus, it is
a cause of forfeiture if the lessee denies the title of the lessor by alleging that
C the title of the landlord is in himself or another; or if he assists a stranger to
set up an adverse title or delivers the premises to him in order to enable him
to set up a title. It is a question of fact, however, what intention underlies the
words or the actions of a tenant, whether in fact he is definitely asserting a
title adverse to the landlord or, as the case may be, intending to enable
someone else to set up such a title. Thus, it is not sufficient that the lessee
D does not at once acknowledge the title of the landlord and a general traverse
in the defence to an action for possession does no more than put the landlord
t~ proof and does not assert that the title is in another. The essential
characteristic of disclaimer by tenant as stated in Foa's General Law of
Landlord and Tenant (Eight Edition, para 934, at p. 58~) is that it must
E amount to a renunciation by the tenant of his character of tenant, either by
setting up a title in another, or by claiming title in himself. A mere renunciation
of tenancy without more, though it may operate as a surrender, cannot amount
to a disclaimer. The denial, though it need not be express and can be implied,
must nevertheless be a clear denial and it must be clearly proved.

F In Williams and Jeffery v. Cooper, (1840) , Scott NR 36, Tindal CJ
stated, "a disclaimer, as the word imports, must be· a renunciation by the
party of his c.haracter of tenant, either by setting up a title in another, or by
claiming title in himself." Setting up a title hostile to that of the landlord by
the tenant himself or the tenant assisting another person to set up such a
G claim entails forfeiture of tenancy, said Lord Lyndhurst, C.J. in Doed
Ellerbrock v. Flynn, 1 Cr M&R 137. As held in Doed Grav v. Stanion,
(1836)1 M&W 695 at p. 703, the disclaimer may be verbal or written but it
must amount to a direct repudiation of the landlord-tenant relationship or it
may be a distinct claim to hold possession of the estate, upon a ground ·
wholly inconsistent with the existence of that relationship which is a
H repudiation of such relationship by necessary implication. Park B. therein
SHEELA v. FIRM PRAHLAD RAI PREM PRAKASH [R.C. LAHOTI, J.] !87

explained, "an omission to acknowledge the landlord as such, by requesting A
further information, will not be enough".

After the creation of the tenancy if the title of landlord is transferred
or devolves upon a third person the tenant is not estopped from denying such
title. However, if the tenant having been apprised of the transfer, assignment
or devolution of rights acknowledges the title of transferee either expressly B
or by paying rent to him, the rule of estoppel once again comes into operation
for it is unjust to allow tenant to approbate and reprobate and so long as the ·
tenant enjoys everything which his lease purports to grant how does it concern
him what the title of the lessor is [See T,ej Bhan Madan v. II Additional
District Judge and Ors., [ 1988] 3 SCC 137. A denial of title which falls foul C
of the rule of estoppel contained in Section 116 of Evidence Act is considered
in law a malicious act on the part of the tenant as it is detrimental to the
interest of the landlord and does no good to the lessee himself. However, it
has to be borne in mind that since the consequences of applying the rule of
determination by forfeiture of tenancy as a result of denial of landlord's title
or disclaimer of tenancy by tenant are very serious, the denial or disclair,ner D
must be in clear and unequivocal terms (See - Majati Subbarao v. P. V.K. '
Krishna Rao (deceased) by lrs., [1989] 4 SCC 732, Kundan Mal v. Gurudutta,
[1989] l SCC 552 and Raja Mohammad Amir Ahmad Khan, (supra). We may
quote with advantage the law as stated by a Division Bench of Calcutta High
Court in Hatimul/ah and Ors. v. Mohamad Abju Choudhury, AIR (1928) E
Calcutta 312. It was held, "the principle of forfeiture by disclaimer is that
where the tenant denies the landlord's title to recover rent from him bona-
fide on the ground of seeking information of such title or having such title
established in a Court of law in order to protect himself, he is not to be
charged with disclaiming the landlord's title. But Where the disclaimer is
done not with this object but with an express repudiation of the tenancy F
under the landlord, it would operate as forfeiture".

In our opinion, denial of landlord's title or disclaimer of tenancy by
tenant is an act which is likely to affect adversely and substar.tially the
interest of the landlord and hence is a ground for eviction of tenant within G
the meaning of clause (c) of sub-section (I) of Section 12 of M.P.
Accommodation Control Act, 1961. To amount to such denial or disclaimer,
as would entail forfeiture of tenan~y rights and incur the liability to be evicted,
the tenant should have renounced his character as tenant and in clear and
unequivocal tenns set up title of the landlord in himself or in a third party.
A tenant bona fide calling upon the landlord to prove his ownership or H
188 SUPREME COURT REPORTS [2002] 2 S.C.R.

A putting the landlord to proof of his title so as to protect himself (i.e. the
tenant) or to earn a protection made available to him by Rent Control Law
but withput disowning his character of possession over the tenancy premises
as tenant cannot be said to have denied 1he title of landlord or disclaimed the
tenancy. Such an act of the tenant does not attract applicability of Section
12(l)(c) abovesaid. It is the intention of the tenant, as culled out from the
B nature of the plea raised by him, which is detenninative of its vulnerability.

We have perused the copy of written statement, made available to us
by the learned counsel for the defendant-appellant, wherein is contained the
alleged denial of title. Vide para 2 of the written statement the defendant
C stated - "the owner of the house was late Khetsidas. On what bas.is .the
plaintiff-firm or its partners claim themselves to be the owner of the property
is for them to prove". Vide para 3 of the written statement it is again stated
- "the plaintiff-firm is not the original owner of the house nor the rent of Rs.
17/- per month was settled between the defendant and the plaintiff'. However,
nowhere in the written statement the defendant has disowned the character
and nature of his possession over the suit premises as tenant. He has neither
pleaded the title in the suit property in himself nor pleaded that any<?ne other
than the plaintiffs is the owner of the property. On the contrary, in the written
· statement, as aJso in hi.s deposition, the defendant has admitted his having
paid rent to the plaintiffs and having initiated proceedings before the Rent
E Controller for fixation of standard rent of the premises imp leading the plaintiff-
firm as the landlord-opposite party. To put it in other words, what the tenant
has said, is something like this-"Yes, I am a tenant in the suit premises; I
have paid the rent to you (and I may continue to do so); but before you may
be held entitled to a decree under Section 12(l)(f) of the Act, I, in order to
protect myself from eviction, call upon you to satisfy the court and let me
· F also be satisfied if you are the owner qf the suit premises." The nature of the
plea raised and the stand taken by the defendant in the written statement and
at the trial .is that he is the tenant and the plaintiffs are the 'landlord', as
defined in the Act, but the defend"a11t demands proof of 'ownership' of the
plaintiffs ovtr the suit property as it cannot be spelled out from tht\averments
G made in the plaint how the title over the property came to vest from Swami
Khetsidas, who had inducted the defendant as tenant in the suit premises, to
Prahlad Rai though the latter was not a natural born son of Swami Khetsidas ._
and again from Prahlad · Rai to the partnership firm which was suing the
tenant claiming itself to be the landlord of t,he premises and arraying itself as .
plaintiff. The tenant would feel satisf!ed opce the information leading to such
H vesting of title was disclosed and appealed to the Court. The primary purpose
SHEELA v. FIRM PRAHLAD RAJ PREM PRAKASH [R.C. LAHOTI, !.] J 89

behind raising the plea was a bona fide effort on the part of the tenant to A
f protect himself by insisting on the plaintiff satisfying all the requirements of
the relevant provision of law, that is Section 12(1)(t), before he was called
upon to vacate. The pleading of the defendant has to be read and appreciated
in the light of the requirements of Section 12(1 )(t) of the Act which provision
requires a decree for eviction on the ground of bona fide requirement being B
passed only in favour of an 'owner-landlord'; ownership (as understood in
Rent Control Law) being one of the ingredients of the ground for eviction.
Such a plea raised by the defendant in his written statement is not a malicious
act of the tenant. The plaintiff staking a claim for eviction under Section
12(1)(t) has also to prove ownership, apart from landlordship. It would have
been different if the tenant would have raised such a plea as a malicious or C
wanton act of himself by raising on his own a dispute as to the title of the
landlord as owner of the suit premises though the question of ownership was
not germane to the claim for eviction or if he would have disowned his
character as tenant whilst in possession of the premises. The plea raised by
the defendant in his written statement is not a clear and unequivocal denial
of the tille of the landlord. There is no. reason to doubt the bona fides of the D
.... tenant while raising such plea. The First Appellate Court and the High Court
were, therefore, not right in holding availability of ground under Section
12(1 )( c) of the Act for eviction of the tenant basing such finding on the
tenant's plea raised in the written statement.
E
So far as the availability of ground under Section 12( l )(h) of the Act
is concerned no fault can be found with the finding arrived at by the Trial
Court that the accommodation was required bona fide by the landlord for the
purpose of re-building the same which activity could not be carried out
without the accommodation being vacated.
F
The appeal is therefore allowed in part. Decree for eviction of tenant
under Section l2(1)(c) of the Act is set aside. Instead the tenant is held liable
to be evicted under Section 12(1)(h) of the Act. Before passing the decree,
the requirement of Section 18 shall have to be fulfilled. The parties shall
appear before the Trial Court which shall ascertain from the tenant whether
he elects to be placed in occupation of the accommodation from which he is G
.to be evicted consistently with Section 18 of the Act and to make consequential
orders as contemplated therein. The appeal is disposed of accordingly. No
order as to the costs.

N.J. Appeal disposed of.

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