Holding

A quit notice given by the predecessor landlord enures to the successor‑in‑interest under Section 109 of the Transfer of Property Act, making it valid and allowing the Board of Trustees to sue for ejectment; the doctrine of promissory estoppel does not bind the Board as the promise was ultra vires and conditional.

Summary

V. R. Vora, a tenant of a room owned by the Bombay Port Trust, was served a quit notice under Section 106 read with Section 111(h) of the Transfer of Property Act, terminating his lease effective 28 February 1975. While the notice period was running, the Major Port Trusts Act, 1963 (a Central Act) was applied to the Port of Bombay on 1 February 1975, making the Board of Trustees the successor‑in‑interest to the former Trust. After the notice period, the Board filed an ejectment suit under Section 41 of the Bombay Presidency Small Cause Courts Act. Vora challenged the validity of the notice, argued that the Central Act rendered the notice ineffective, and pleaded promissory estoppel based on a letter from the Assistant Estate Manager promising a new lease upon payment of money. The Supreme Court held that the quit notice enures to the benefit of the successor‑in‑interest, that the Board was entitled to enforce the notice and the ejectment suit, and that the promissory estoppel plea failed because the Assistant Estate Manager lacked authority and the promise was conditional and ultra vires. The appeal was dismissed.

Issues considered

The validity of a quit notice issued under Section 106/111(h) of the Transfer of Property Act after the repeal of the State Act and the application of the Major Port Trusts Act, 1963.
Whether the Board of Trustees, as successor‑in‑interest, could enforce the quit notice and file an ejectment suit under Section 41 of the Bombay Presidency Small Cause Courts Act.
The applicability of the doctrine of promissory estoppel against a public authority where the promise was made by an assistant estate manager.
The constitutional validity of the Maharashtra amendment provisions to the Presidency Small Cause Courts Act (raised but not decided).
The jurisdiction of the Small Cause Court to entertain the ejectment suit.

Legislation cited

Bombay Presidency Small Cause Courts Act, 1882s. 41, s. 42A, s. 46(2), s. 47
General Clauses Act, 1897s. 17, s. 6
Indian Evidence Act, 1872s. 115
Major Port Trusts Act, 1963s. 133(2A), s. 29(1)(a), s. 29(1)(b)
Transfer of Property Act, 1882s. 106, s. 109, s. 111(h)

Subjects

quit noticelease terminationsuccessor‑in‑interestpromissory estoppelpublic authorityejectmentMajor Port Trusts ActSmall Cause Courts Actconstitutional lawArticle 136

Judgment

V ASANTKUMAR RADHAKISAN VORA A
v.
BOARD OF TRUSTEES OF THE PORT OF BOMBAY

AUGUST 21, 1990
B
[K.N. SAIKIA AND K. RAMASWAMY, JJ.]
• .'!...

"',...
'
" ..., 'Presidency Small Cause Court" Act, 1882 as amended by the
Maharashtra Amendment Act 1963, Amendment Act 1976 and Amend-
~ ment Act, 1984. Section 42A, 46(2) and 47-Tenancy terminated in
..,.- terms of covenant of lease by notice under Transfer of Property Act,
1882-Whether ejectment can be sought under Section 41 of Bombay c
Presidency Small Cause Courts Act, 1882.

Major Port Trusts Act, 1963: Section 29( l)(a) & (b) read with
Section 133(2A)-Application to port of Bombay-Effect of repeal of
~ the Bombay Port Trust Act, 1879-Quit notice concerning vested im-
D
movable property-Whether ejectment suit can be filed.

Transfer of Property Act, 1882: Sections 106, 109 and 1ll(h) quit
notice issued by assistant estate manager of Bombay Port Trust-Filing
of ejectment suit by Port Trust Board-Whether maintainable.
E
General Clauses Act, 1897: Sections 6 and 17-Whether there is
-, any inconsistency between the Major Port Trusts Act, 1963 and the
Bombay Port Trust Act 1879-0peration, efficacy and effectiveness of
quit notice issued by assistant estate manager under the State Act.

Indian Evidence Act, 1872: Section 115-Promissory estoppel-
F
·~~octrine of-Applicability of plea against government and municipal
body-Actions of State in exercise of legislative or statutory powers-
Public authorities acting beyond scope of authority-Inapplicability of
•doctrine-Doctrine of executive necessity-Quit notice issued by
Assistant Estate Manager-Plea of promissory estoppel by tenant-
Validity of.
G
The respondent a statutory body corporate constituted under the
Bombay Port Trust Act, 1879-a 'State Act' who had appointed an
Assistant Estate Manager as their power of attorney holder to lease out
I.its property from time to time, terminate the leases and to lay action for
~jectment, etc.; leased out the suit property to the appellant.
H

825

I
826 SUPREME COURT REPORTS [1990] 3 S.C.R.

The appellant was served with a notice under Section 106 read
A with Section 11 l(h) of the Transfer of Property Act, 1882 terminatin~
the tenancy in terms of the covenants of lease and directing delivery of
possession of the demised property giving one month's time from 22nd
January 1975. The notice was served on the tenants on January 28,
1975 and became effective from 28th February, 1975.
B
In the meanwhile, the Major Port Trust Act, 1963,-a 'Central
Act' was made applicable to the Bombay Port Trust by operation of _ ___.
Section 133(2A) thereof with effect from February 1, 1975. -~

After the expiry of one month from the suit notice an ejectment
application was filed under Section 41 of the Bombay Presidency Small
c Cause Courts Act, 1882 as amended under the Maharashtra 1963
Amendment Act, and a direction was sought for delivery of possession.
Aller the Maharashtra Amendment Act 19 of 1976 came into force suits
were laid against the three other tenants of the demised property.

D The respondent pleaded in the said suit that it was a successor-in-
interest of the Port Trust Board under the State Act, and was entitled to
eject the tenants and to take possession of the demised portions. The
appellant contended in his written statement that the suit was not main-
tainable since the State Act ceased to be operative with effect from
February 1, 1975, the quit notice issued under Section 106 read with
E Section 11 l(h) of the Transfer of Property Act became ineffective and "
without determining the tenancy afresh the suit was not validly laid. It
was further submitted that the respondent had promised that on deposit
of a certain amount which_ the appellant-tenant did, he would be given
to lease a portion in the reconstructed building, and consequently the-A .
respondent was estopped by promissory estoppel to have the tenae'f - ·
F ejected.

One suit was dismissed on the ground that the tenancy was not
duly determined as per law, while the other suits were decreed.
•
No appellate forum had been prescribed under the Maharashtra
G Amendment Act of 1963 but a substantive suit on the original side
provided was available, but such a right to appeal was incorporated by
the Maharashtra Amendment Act, 19 of 1976.
)
The appellant filed a writ petition in the High Court under Arti-
cles 226 and 227 of the Constitution and the other tenants filed regular
H appeals to a Bench of two Judges of the Small Causes Court, which were
pending.
V.R. VORA v. BOARD OF TRUSTEES 827

In the wrif ji~tltillll of the appellant-petitioner challenged the vires
~of Sections 2, 3 and 4 of the Maharashtra Amending Act, 1963 introduc-
A
ltti! Section 42(A) in Chapter VII of the Presidency Small Cause Courts
Act ailll 6eletllijj Sections 45 to 47 from the Principal Act and of amend·
ment of Section 49 flletelif; a8 well as Section 46(2) of the Presidency
Small Cause Courts Act as amended by the Maharashtra Amendment
Act of 1976 as offending Article 14 of the Constitution. When the matter B
came up before the Single Judge of the High Court it was referred to the
--~ IJlvMon Bench, which upheld the constitutional validity of .the said
· sedions and remitted the matter to the Single Judge for disposal on
merits.

• 'tlle Sin11le Judge considered the matter and negatived the two
points raised by the appellant-petitioner regarding validity of the notice C
tnmlrtatln11 the tenancy, and also the plea of promissory estoppel, and
~-- dismissed the writ petition.

The appellant appealed to this Court by special leave under Arti·
ct~ 136. It was contended on behalf of the appellant that the quit notice D
issued under Section 106 read with Section lll(h) of the Transfer of
Property Act was invalid and that by issue of the said rwtice no right
accrued to the respondents and that the termination of tenancy became
OIJeratlve only on expiry of one month given thereunder i.e. February
., 28, 1975, by which date the State Act became inoperative, as from
February 1, 1975 the Central Act had come into force; that termination E
of tenancy was an act inter vivos by operation of Section l 06 read with
Section lll(h) of the Transfer of Property Act, and that under Section
~ 109, the respondent not being a living person, was not entitled to the
-/'--...__benefit of the quit notice as its operation was not saved by Section 2(d)
and Section S of the said Act. It was also contended that the respondents
c were estopped from ejecting the appellant and other tenants who were p
\:_ similarly situated on the principle of promissory estoppel, as the Estate
Manager of the respondent in his letter dated April 3, 1972 directed the
tenant to deposit Rs.11,000 for grant of tenancy after reconstruction of
the flats therein and placing reliance thereon the tenants having
deposited the amount demanded from them and acted upon the promise
to their detriment, the respondents shall be declared to be estopped G
from ejecting the tenants from the demised respective portions leased
out to them.
l The appeal was contested on behalf of the respondents by contend·
ing that when right, title, and interest in immovable property stood
transferred by operation of law, the spirit behind Section 109 of the H
828 SUPREME COURT REPORTS [1990) 3 S.C.R.

Transfer of Property Act will apply, and the successor-in-interest would
A
be entitled to the rights of the predecessor and that as the Estate Man- "-
ager bad no authority to give a promise, and that even assuming that he
had such a power, it was a conditional one, namely, approval by the
Board, and that the Board having resolved to reject the claim, and on
reconstruction decided to allot to its own employees out of administra-
B tive necessity, the principle of promissory estoppel cannot be applied.

Dismissing the appeal, this Court,

HELD: I. When right, title and interest in immovable property
stand transferred by operation of law, the spirit behind Section 109 of
c the Transfer of Property Act per force would apply and successor-in-
interest would be entitled to the rights of the predecessor. This is what
the Single Judge of the High Court has held and the view is approved as
-
correct. The notice terminating the tenancy of Vasantkumar would
enure to the benefit of the respondent and it could be availed of by the
respol)dent to lay the suit for ejectment. [836H; 837 A-Bl
D
N. P. K. Raman Menon v. Collector of Malabar, AIR 1924
Madras 908; Trimbak Damodhar Raipurkar v. Assaram Hiraman Patil
& Ors., [1962) Suppl. I SCR 700; Hitkarini Sabha v. The Corporation
of City of Jaba/pur & Anr., [1973] I SCR 493 and Lower v. Sorrell,
[1963] l Queen's Bench Division 959, referred to.
E
Gurumurthappa v. Chickmunisamappa, AIR 1953 Mysore 62,
over-ruled.
,.
Halsbury's Laws of England, 4th Edition, Vol. 27, p. 193; Hill -
and Redman in Law of Landlord and Tenant, 17th Edition Vol. I, p. - ~
F 488, p. 405; Mui/a-Transfer of Property Act, 6th Edition, p. 676 and
Chita/ey's Transfer of Property Act, 4th Edn. 1969, Vol. III, Note 35, ~
referred to.

2(i) The functionaries under both the State Act and the Central
Act are the same. The notice was issued by the Assistant Estate
G Manager by virtue of his official function as power of attorney agent on
behalf of the respondent. The Board of Trustees have the right to termi-
nate the lease under Section 26 of the State Act and these rights stood
transferred and vested under Section 29(1) of the Central Act. Therefore
the termination of tenancy and laying the action for ejectment are integ-
J
rally connected with their official capacity. There is a reasonable con-
H nection between the impugned acts and officials duty. Thereby, they are
the acts done under the Central Act. [839C-E)
V.R. VORA v. BOARD OF TRUSTEES 829

2(ii) The notice under Section 106 and Section lll(h) of the
A
) Transfer of Property Act is an act done or purported to have been done
· in the official capacity as Power of Attorney holder /Assistant Estate
Manager on behalf of the respondent, Board of Trustees; the right to
lay the suit on expiry of one month's period prescribed in the notice,
namely, on or after February 28, 1975 had accrued to the respondent. It
is an act done or purported to have been done under the Central Act in B
exercise of the official function. The right to lay the suit on determina-
tion of the tenancy by notice dated January 20, 1975 under the State Act
Y-is a transfer of interest by operation of Section 29(1) of the Central Act,
to the respondent under Section 109 of the Transfer of Property Act.
Thereby the quit notice is valid. The suit laid, pursuant thereto, is valid
and legal. Accordingly order of ejectment passed by the Small Cause
Court is perfectly legal and unassailable. [840B-EI c
~· Commissioner for the Court of Calcutta v. Abdul Rahim Osman
& Co.; Trustees of Port of Bombay v. The Premier Automobiles Ltd. &
Anr., [1974] 3 SCR 397, referred to.
D
3(i) The doctrine of promissory estoppel is now well established
one in the field of administrative law. This principle has been evolved
by equity to avoid injustice. It is neither in the realm of contract nor in
the realm of estoppel. Its object is to interpose equity shorn of its form
..,, to mitigate the rigour of strict law. This doctrine would be displaced in
a case where equity would not require that the Government should be E
held bound by the promise made by it. But the Government must be
able to show that in view of the facts as have been transpired, public
interest would not be prejudiced. Where the Government is required to
carry out the promise the Court would have to balance, the public
interest in the Government's carrying out the promise made to the
citizens, which helps citizens to act upon and alter his position and the F
f public interest likely to suffer if the promises were required to be
· carried out by the Government and determine which way the equity
lies. [841B; 842G-H; 843A]

3(ii) The doctrine of promissory estoppel would equally apply to a
private individual as well as a public body like a Municipal Council. It· G
cannot be applied in the teeth of an obligation or liability imposed by
law. It cannot be invoked to compel the Government to do an act
t prohibited by law. There may he no promissory estoppel against exer-
cise of legislative functions. [843B-C]

3(iii) Promissory estoppel cannot be used for compelling the H
830 SUPREME COURT REPORTS I1990] 3 S.C.R.
Government or a public anthority to carry ont a representation or
A
promise which is prohibited by law or which was devoid of the authority <
or power of the officer of the Government or the public authority to
make. It being an equitable doctrine it must yield place to the equity, if
larger public interest so requires and if it can be shown by the Govern-
ment or public authority, for having regard to the facts as they have
B transpired that it would be inequitable to hold the Government or
public authority to the promise or representation made by it. [8448-D J

3(iv) Promissory estoppel should not be extended, though it may
be founded on an express or implied promise stemmed from the conduct
or representation hy an officer of the State or public authority when it
c was obtained to play fraud on the Constitution and the enforcement
would defeat or tend to defeat the Constitutional goals. [844D I -
l.{nion of India v. Inda Afgan Agencies, [1968) 2 SCR 366;
Century Spinning and Manufacturing Co. Ltd. v. Ulhasnagar Munici-
pal Council, [1970] 3 SCR 854; Motilal Padampat Sugar Mills v. State
D of Uttar Pradesh, [1979] 2 SCR 641; Jeet Ram v. State of Haryana,
[1980] 3 SCR 689; Union of India v. Godfrey Philips India Ltd., [1985)
Supp. 3 SCR 123 at 144; State of Bihar v. Usha Martin Industries Ltd.,
[1987] 65 STC 430 and Asstt. Commissioner of Commercial Taxes,
Dharwar v. Dharnendra Trading Co. etc. etc., [1988] 3 SCR 946, refer-
red to.
E
4. Before making the public authority responsible for act of Its
subordinate, it must be established that the subordinate officer did in
fact make the representation and as a fact, is competent to make a
binding promise on behalf of the public authority or the Government,
ultra vires acts do not bind the authority and insistence to abide by the~
F said ultra vires promise would amount to putting premium and legiti-
macy to ultra vires acts of subordinate officers. [847D-E) t
Howell v. Falmouth Boat Costruction Co. Ltd, [1951] AC 837 and
Attorney Genera/for Ceylon v. A.D. Silva, [1953) AC 461, referred to.

G 5. The letter dated April 3, 1972 written by the Estate Manager is
a conditional one, namely, that on fulfilling certain conditions indicated
in that letter he would make recommendation to the Board for grant of
lease, condition precedent being that the tenant would deposit the 1
required sum of about Rs.ll,000 and odd with the respondent.
Undoubtedly, the tenants completed that part of the obligation. There-
H after it was placed before the Board, who by resolution dated
V.R. VORA v. BOARD OF TRUSTEES [K. RAMASWAMY, J.I 831

September 10, 1974, considered it, but was rejected on the ground that
A
. after reconstruction the building would be required by its staff. [845C-E]
/-
6. The Estate Manager is merely an intermediary to collect the
material between the respondent Port Trust and its tenants and to place
the material for consideration to the Board. Thereby the Estate
Manager is not clothed with any authority much less even ostensible B
authority to create a promise so as to bind the respondent, that the
respondent would allot the rooms on reconstruction to the tenants. The
T-: promise of him is an ultra vires act, though conditional and, therefore.
it does not bind the respondent. Though the executive necessity has not
been satisfactorily established, the doctrine of promissory estoppel can-
not be extended in favour of the appellant and other tenants. [847E-G I
c
7. When a constitutional question has been raised and does arise
for consideration, unless there is a fulldressed argument addressed by
either side before this Court no satisfactory resolution could be made.
Mere paraphrasing the judgment of the High Court in particular when
it relates to the local laws is no proper decision making. [849A-B] D

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1348
of 1990.

From the Judgment and Order dated 23. 7. 1985 of the Bombay
"High Court in W.P. No. 3144 of 1981. E

H.C. Tunara, J.A. Karia and M.N. Shroff for the Appellant.

Ashok H. Desai, Solicitor General. U.J. Makhija, B.S. Bisaria.
"--Mrs. A.K. Verma and Vivek Dholakia for the Respondents.
F
l V.N. Ganpule, V.N. Patil and A.S. Bhasime for the State of
Maharashtra.

The Judgment of the Court was delivered by

K. RAMASWAMY, J. 1. The respondent is a statutory body G
corporate initially constituted under the Bombay Port Trust Act, 1879
(Bombay Act 6 of 1879), for short 'State Act'. Under Sec. 26 thereof,
-l the Board has power to acquire and hold movable and immovable
· property and also has power to lease, to sell or otherwise co?vey
movable and immovable property which may have become vested m or
acquired by them. The respondent has appointed A.J. Mescarnas, H
832 SUPREME COURT REPORTS [ 1990] 3 S.C.R.
.
A Assistant Estate Manager as their power of attorney holder to lease
out its properties from time to time or terminate the leases and to lay
action for ejectment, etc. The respondent owns the Building bearinf'-
Old R.R. No. 941 known as 'Frere Land Estate" in which room No. 2
admeasuring 28.27 sq. meters was leased out to Vasantkumar
Radhakisan Vora, for short 'Vasantkumar'. The appellants are his
B legal representatives. He was served with a notice under Sec. 106 read
with s. 1ll(h) of the Transfer of Property Act terminating the tenancy
in terms of the covenants of lease and was asked to deliver possession
of the demised property giving one month's time from 22nd January, · _ "( ~
1975.

It was served on Vasantkumar on January 28, 1975. The notice of
C termination thereby became effective from 28th February, 1975. In the
meanwhile Major Port Trust Act, 1963 (Act No. 38 of 1963), for short
the "Central Act", was made applicable to the Bombay Port Trust by
operation of s. 133 (2A) with effect from February 1, 1975. After the
expiry of one month, ejectment application was filed under s. 41 of the
D Bombay Presidency Small Cause Courts Act (Act 15 of 1882) as amended
under 1963 Maharashtra Amendment Act, against Vasantkumar and
another for delivery of possession. After 1976 Amendment Act 19 of
1976 came into force suits were laid against three other tenants. It was
pleaded by the respondent that it is a successor in interest of the Board
under the State Act and were entitled to eject the tenants and to the
E possession of the demised portions. The plea of Vasantkumar in his '
written statement eleborated by the learned counsel, is that the suit is
not maintainable. Since the State Act ceased to be operative with
effect from February 1, 1975, the quit notice issued under Section 106
read with Section lll(h) of Transfer of Property Act became ineffec-
tive and without determining the tenancy afresh, the suit was not .
F validly laid. It was also pleaded that the respondent had promised that
in deposit of certain amount which the tenant did, Vasantkumar would
be given on lease of a portion in the reconstructed building. Thereby
the respondent is estopped by promissory estoppel to have the tenant
ejected. It may be mentioned at this juncture that one suit was dismis-
sed on the ground that the tenancy was not duly determined as per law.
G Other suits were decreed. No appellate forum has been prescribed
under Amendment Act of 1963 but a substantive suit on original side
provided was available. By Maharashtra Amendment Act 19 of 1976
to the principal Act such a right to appeal was incorporated. Vasant-
kumar filed writ petition in the High Court under Articles 226 and 227
and others filed regular appeals to a Bench of two Judges of the Smalt
H Cause Court and are stated to be pending.
V.R. VORA v. BOARD OF TRUSTEES [K. RAMASWAMY, J.} 833

2. In the writ petition the petitioner challenged the vires of 1963 A
Amendment Provisions and also 1976 Amendment Provisions to the
) · Presidency Small Cause Courts Act. When it came up for hearing
before Masodkar, J., he referred it to a Division Bench. The Division
Bench by its judgment dated January 17 /18, 1982 up-held the constitu-
tional validity of those sections and remitted to the learned Single
Judge to dispose of the writ petition on merits. The learned single B
Judge considered and negatived two points namely, validity of the
notice terminating tlie tenancy; promissory estoppel and dismissed the
~_ writ petition. Vasantkumar had leave of this Court under Art. 136.

3. The primary contention of Mr. Turana, learned counsel for
the appellant, is that quit notice issued under Sec. 106 read with Sec. C
lll(h) of the T.P. Act is invalid. By issue of quit notice no right had
accrued to the respondent. Termination of tenancy became operative
only on expiry of one month given thereunder, i.e. February 28, 1975,
by which date the State Act became inoperative as from February 1,
1975 the Central Act came into force. The respondent under the Cent-
ral Act acquired, by statutory operation, the immovable property D
including the demised one in Frere Land Estate and thereby became a
new landlord. Termination of tenancy is an act inter vivos by operation
of Sec. 106 read with Sec. 1 ll(h) of T .P. Act. Under Sec. 109 thereof,
the respondent, not being a living person, is not entitled to the benefit
of the quit notice as its operation is not saved by Sec. 2(d) and Sec. 5
" thereof. The suit, thereby, is not maintainable admittedly no quit E
notice determining the tenency was issued after February 1, 1975. The
edifice of the argument was built up on shifting sand and when it was
subjected to close scrutiny it crumbled down traceless. Let us first deal
-. with the arguments on the foot of the provisions of T.P. Act. Section
•. -~ 2(d) of the Transfer of Property Act, 1882 provides saving of the
previous operation of law. It states that: F

" ...... nothing herein contained shall be deemed to affect
save as provided by Sec. 57 and Chapter IV of this Act, any
transfer by operation of law or by, or in execution of, a
decree or order of a court of competent jurisdiction.
G
Section 106 empowers the landlord to terminate the contract of lease
of immovable property, if it is for agricultural or manufacturing
purpose by giving six months notice and terminable on the part of
either lessor or lessee, by giving fifteen days' notice expiring with the
end of the month of the tenancy. Section lll(h) provides that, "on the
expiration of a notice to determine the lease, or to quit, or _of intentioit H.
834 SUPREME COURT REPORTS [1990] 3 S.C.R.

to quit, the property leased, duly given by one party to the other".
A
Section 109 is Rights of lessor's transferee:

"If the lessor transfers the property leased, or any part
thereof, or any part of his interest therein, the transferee,
in the absence of a contract to the contrary, shall possess all
B the rights, and, if the lessee so elects, subje~ to all the
liabilities of the lessor as to the property or part transferred
so long as he is the owner of it; but the lessor shall not, by
reason only of such transfer cease to be subject to any of
the liabilities imposed upon him by the lease unless the
lessee elects to treat the transferee as the person liable to
c him."

Provisos are not necessary, hence omitted.
-
4. Reading of these fascicule of provisions clearly demonstrates
that a lessee of immoveable property from month to month is termin-
D able by giving fifteen days' notice or as per the terms of the contract of
the lessee. (In this case the contract provides to give one month's
notice). On expiry of one month from the date of receipt of the notice
the lease shall stand terminated. The lessor's right on transfer of the
immoveable property including the lease hold rights created on the
property sold, the transferee, in the absence of contract to the con-
E trary, shall possess all the rights and if the lessee so efects, be subject "
to all the liabilities of the lessor as to the property or part thereof so
long as he is owner of it. But by mere transfer the lessor shall not cease
to be subject to any liabilities imposed upon him by contract of lease
unless the lessee elects to treat the transferee as the person liable to
~. ,.
F
5. Undoubtedly, by issuance of notice to quit automatically the
right created thereunder, namely, cessation of the lease, does not
become effective till the period prescribed in the notice or in the
statute i.e. Sec. 106 expires. On expiry thereof the lease becomes
inoperative and the lessor acquires right to have the tenant ejected.
G When he fails to deliver vacant possession, the lessor would be entitled
to have the tenant ejected and taken possession in due process of law.
The successor in interest whether acquires these rights and the rights
acquired by lessor would enure for his benefit is the crucial question.
)
6. In Halsbury's Laws of England, 4th Edition, Vol. 27, para-
H graph 193 discussed the right accrued to the transferee of the benefit of
···----------------------------------.
V.R. VORA v. BOARD OF TRUSTEES [K. RAMASWAMY, J.) 835

-f· the notice to quit issued by the predecessor in title thus: ·
A
''The notice when once given enures for the benefit of the ·
successors in title of the landlord or tenant giving it.'.' '. .""
:; ·. - 'i ! : , ., '' -, ) '. ., ~

. Hill and Redman . in "Law of Landlord and Tenant", 17th
't~dition, Vol. I, at page 488, paragraph 405 have stated to the similat B
tact thus: ." .. · ·. · , · ·· · . ·. · •. · . •.· . • · · ·: · · ·. : ·. ••.

''The notice when once given enures for the benefit of the
successor in title of the landlord or tenant giviog it.''• .·
:; -
-· . -· -
In Mulla's commentary. on the Transfer of Property Act, 6th
Edition, at page 676 it is also stated thus: • · ·· c
''.-"

· "Notice enures for the benefit of the successor in title of
the lessor or lessee giving it.'' :·..

,;. In Chitaley's Transfer Property Act, 4th Edn., 1969; Vol. III, D
Note35,itisstatedthus: , .. · ·.. :: . ··";;

, ,; ."Where the lessor gives notice to quit and then assigns his
interest to another the assignee can take advantage of the
-·notice."~ - .·,--{ / _;:._.•'.:·:
1:_.· ·!: ·:: ~., :..-d :;:.,.i - ;,,:;. E
·.,In N.P.K.. Raman Menon v. Collector of Malabar, AIR' 1924
Madras 908 a Division Bench of the Madras High Court held that:' ;. , ';

"English cases recognise that the person who is the.land•
•: lord and entitled to possession; on the date of the notice to
· · quit, is the proper person to give the notice and that an p
. assignee :within 'the currency of that notice i cim ;take
.J.··· . advantage of the notice sent by his assignor and rely upon .
, it, when he brings a suit for recovering possession';; <c'', ·.'
- ·: .. ; .- .. .
__ ·;.:; -... ·- .. ' -·- ; - '
7. No doubt Mr;Tunara placed strong reliance on the decision
of Trimbak Damodhar Raipurkar v;'Assaram Hiraman Patil & Ors.;• G
[ 1962) Suppl. 1 SCR 700. The facts therein are that in .1943 a lease on
agricultural land for five years was created. Before the expiry thereof
Bombay Tenancy Act, 1939 was made applicable to the area where the
'} land was situated and under Sec. 23(1){b) of that Act the period of
lease was statutorily extended to ten years. During the subsistence of
the contractual tenancy it was statutorily extended and the Bombay H •
836 SUPREME COURT REPORTS I1990] 3 S.C.R.

Act 67 of 1948 came into force. In March 1952 notice was given to the
A tenant that the tenancy expired on March 31, 1953 and called upon the
tenant to deliver possession. In the meanwhile the Bombay Act 33 of \.
1952 came into force. Its effect was that the lease automatically stood
extended for ten years from time to time, unless terminated by giving
one year's notice averring that the land was required boan fide by the
B landlord for personal cultivation and that income would be the main
source of income of the landlord. It was contended that since 1952
Amending Act was not retrospective, the technical requirement of
notice to quit do not apply. The question was whether the landlord was .___, ..
entitled to eject the tenant without complying with the statutory
requirement. In that context it was held by the Constitution Bench
C that by operation of the statutory provisions the period of lease of 10
years from time to time was automatically extended unless the tenancy
was validly terminated by giving a notice of one year or surrender was
made by the tenant as specified in the statute. The ratio therein has
little application to the facts of this case. In Hitkarini Sabha v. The
Corporation of City of Jaba/pur & Anr., I1973] 1 SCR 493 the lease
D was granted by the Administrator without authority under the Statute.
Therefore, the lease was held to be void. The notice as required under
T.P. Act was held to be mandatory, but was not done. Therefore the
lease was subsisting and thereby as his land was acquired the tenant
was entitled to compensation pro rata under Section 11 of the Land
Acquisition Act. We are at a loss to understand, how the ratio there-
E under will be of any assistance to the appellant. In Lower v. Sorrell, "
[ 1963] 1 Queen's Bench Division 959 the question therein was whether
the notice to quit was a valid notice. Admittedly, second notice was
given before the expiry of the first notice. It was held that when such
notice were issued withdrawing the first notice by issuance of the sec-
ond notice, a new tenancy has been created for the tenant to remain in
-
F possession until the expiry of the later notice on September 29, 1961,
to which the tenancy sections 2(1) and 23(1) of the Agricultural Hold-
ings Act, 1948 would apply. Accordingly it was held by the Court of +
Appeal that there was no valid notice to quit. The ratio therein also is
of no avail to the appellant. No doubt in Gurumurthappa v. Chick-
munisamappa, AIR 1953 Mysore 62 a Division Bench of Mysore High
G Court held that the successor in interest is not entitled to avail the
notice to quit given by the original landlord. In the light of the above
discussion this view is not good law.

8. It is no doubt true that per se sec. 109 of T.P. Act does not ,)
apply to the facts of this case. It contemplates transfer of lessor's right
H inver vivas. But when right, title and interest in immoveable property
V.R. VORA v. BOARD OF 1RUSTEES [K. RAMASWAMY, J.] 837

.stand transferred by operation of law, the spirit behind Sec. 109 per
A
/force would apply and successor in interest would be entitled to the
rights of the predecessor. This is what the learned single Judge of the
High Court in the impugned judgment has held and we approve of the
view as correct. We, accordingly, hold that the notice terminating the
tenancy of Vasantkumar would enure to the benefit of the respondent
and it could be availed of by the respondent to lay the suit for B
ejectment.
~c. . . . .
, ",1. 9. The matter could also be gleaned through the statutory opera-
tion as well. By operation of Sec. 26 of the State Act, the Board of
Trustees acquired and held the demised property which includes lease
, hold interest therein. Section 29(1) of the Central Act interposed and
from February 1, 1975 the appointed date, in relation to Bombay
c
Port all the movable and immovable property, assets and funds of the
~predecessor Board shall vest in the Board, i.e. the respondent. By
operation of Clause (b) thereof all debts, obligations and liabilities
incurred, all co11tracts entered into and all matters and things engaged
to be done, by with or for the Central Govt., or as the case may be, the D
other authority (i.e. predecessor Board under State Act) immediately
before such day, for or in connection with the purposes of the port,
"shall be deemed to have been incurred, entered into and engaged to be
done by, with or for the Board." It further postulates that all rates,
..fees, rents and other sums of money due to the Central Govt., or as the
case may be, the other authority (i.e. the predecessor Board) in rela- E
tion to the port immediately before such day shall be deemed to be due
to the Board, i.e. the respondent. Other clauses are not necessary.
Hence omitted. Thereby by operation of Sec. 29( l)(b) the immovable
. . . . p~operties, i.e. demised rooms and all contracts in relation thereto
. . including the lease and the right to ejectment pursuant to quit notice
stood transferred to the respondent. F
.l.
Sub-section 2(A) of Sec. 133 'Repeal' of the Major Port Trusts
Act, 1963 states that on the application of the Central Act to the Port
of Bombay, except the provisions thereof relating to municipal assess-
ment of the properties of the port of Bombay and matters connected
therewith, shall cease to have force in relation to that port. But sub- G
clause (c) of sub-section (20) of Sec. 133 provides that notwithstand-
ing anything contained in sub-section (2A) (2B) and (2C) anything
tlone or any action taken or purported to have been done or taken
including ....... notice ........ issued ...... shall, in so far as it is
not inconsistent with the provisions of this Act, be deemed to have
been done or taken on the corresponding provisions of this Act. By H
838 SUPREME COURT REPORTS (1990] 3 S.C.R.

operation of Sec .. 29(1)(a) & (b }read with Sec. 133(2A) the quit notice
A
conceminj! the vested immovable property i.e. the demised rooms\
vested in the respondent shall be deemed to have been done or taken
under Sec. 29(1) and Sec. 133(2A)(C) of the Central Act. There is no·
inconsistency between the Central and the State Acts in this regard.
Section 6 of the General Clauses Act, 1897 postulates the effect of
B repeal thus:

'Where this Act or any (Central Act) or regulation made _,,-
after the. co.mmencement of this Act, repeals any enact- - ·
. ment hitherto made or hereafter to be made, then, unless a
.different intention appears, the repeal shall not-
c (b) affect the previous operation of any enactment so
repealed or anything duly done or suffered thereunder' or
-
(c) affect any right; privilege, obligation or liability acqui-
red, accrued o~ incurred under any enactment so. repealed;
0 or ..... .
. \

any such investigation, legal proceedings or remedy
may be instituted, continued _or enforced ....... as if the
repealing Act or Regulation had not been passed."

E Section 17(1)provides under:
·i

"In any (Central Act) or Regulation made after the com-
mencement of this Act, it shall be sufficient for the purpose
of indicating the application of a law to every 'person or - -
number of persons for the time being executing the func- · , .
lions of an offiCe, tci mention the official title of the officer ·
at present executing the functions of an office, or that of -1.
"'(
the officer by whom the functions are commonly executed."
..·.
'

Section 17 of the General Clauses "Act sub~tiiutes the functionaries
under the .Central _Act' to those of the· functionaries under the State
G Act. Section 6 gives effect to the previous operation of anything don.e
'' or subsists th~ r_ight acquired or privilege accrued under the Repealed
Act and the legal proceedings of remedy may be instituted, continued
or enforced as ifthe repealing Act had not been passed. Therefore, theJ
operation, efficacy .and effectiveness of the quit notice issued by the
power of attorney Agent of the· respondent i.e. the Asstt. Estate
"'I Manager has bee11 acquired by the respondent Board. The rights and
V.R. VORA v. BOARD OF TRUSTEES IK. RAMASWAMY, J.I . 839

remedy accrued to the respondent under the State Act namely termi·
A
) _nation of tenancy by issue of ~uit notic~ under Sec. 106 and 11 l(h) of
T.P. Act and on expiry of thuty days 1.e. on February 28, 1975 the
respondent Board became entitled to institute.the proceedings in the
suits to have the tenants ejected under Sec. 41 of the -Provincial Small
Cause Courts Act.
B
10. The contention of Mr. Tunara that the Central Act and the
General Clauses Act would apply only to the acts done under the
-...,::; Central Act or State Act, by exercise. of the :staturory power- which
alone have been validated and they have no application to bilateral'
acts under Central Act and the notice under Sec. 106 ofT,P. Act is not
the one either under the Central or the State Act and that the notice
issued is not saved, is devoid of force. The Board of Trustees under the c
State Act have merely changed their hats and stand transposed to be
functionaries under the Central Act, The functionaries under both the
Acts are the same. The notice .was issued by the Asstt.· Estate Manager
hr virtue of his official function as power of attorney agent on Mhalfof
the respondent. The Board of Trustees have the.right to· terminate the· D
lease under.Sec. 26 of the State Act and those rights stood transferred
and vest.ed under Sec. 29(1) of the Central Act. Therefore, tlie te'rmi·
nation of tenancy and laying .the action for ejectment are integrally
connected with their official capacity. There is a reasonable·c<innec··
tion between the impugned acts and official duty. Thereby, they are
Y the acts done undeMhe Central Act. In.Commissionerfor the Court of E
Calcutta v. Abdul Rahim Osman & Co .., Sec. ·14:Z.of the Calcutta ·Port
Act came up for interpretation. Thereunder it was. contended. that ·
short delivery of the goods was an omission:and not: an act-done under·
the Act and though the suit was laid beyond three months, it was not ·
... __ ·barred by limitation. Section 142 enjoins that.no suit shall be ··brotight
in for anything done or purported to have been .done beyond three p
months. It was held that after the. expiry of three months from the day 0

1
· on which the cause of action had arisen for short delivery' which was'.
done. or purported to have bee11 done under the Act;•the suit'w~s ·
barred by limitation. It was.further held thatin·order to·apply any bat''
under Sec. 142 it was first to determine whether the·act whicll is"complr'.
lained of in the suit can be .said to ha1/e been within the« scope' Of the· 1 G
official duty of the person or persons who are sought to be made-liable: '·
This question can be answered in the affirmative where there is•a•
reasonable connection between the act and the discharge of the official'
.l
duty. Once the scope of official duty,is determined 1 Sec'' 142 Wiir
•. protect the defendant not only from a claim based on breach of the
duty but also from a claim based upon: an. omissiofr te perfohil· such H. ·
840 SUPREME COURT REPORTS [1990] 3 S.C.R.

A duty. The protection cannot be held to be confined to acts done in the
exercise of a statutory power bµt also extends to acts done within the \_
scope of an official duty. This view was upheld in Trustees of Port of
Bombay v. The Premier Automobiles Ltd. & Anr., [1974) 3 SCR 397
where there was short delivery of one bundle out of 153 bundles con-
signed from Japan and omitted to be delivered and it was held to
B constitute an act done within the ambit of Sec. 87 of the Bombay Port
Trust Act, 1879 and the bar of limitation prescribed thereunder would
apply. Thus we have no hesitation to hold that the notice under Sec. _ -r
106 and Sec. lll(h) of the Transfer of Property Act is an act done or
purported to have been done in the official capacity as Power of
Attorney holder/Asst!. Estate Manager on behalf of the respondent,
Board of Trustees; the right to lay the suit on expiry of one month's
c period prescribed in the notice, namely, on or after February 28, 1975
had accrued to the respondent. It is an act done or purported to have
been done under the Central Act in exercise of the official function. . _
The right to lay the suit on determination of the tenancy by notice
dated January 20, 1975 under the State Act is a transfer of interest by
D operation of Sec. 29(1) of the Central Act, to the respondent under
Sec. 109 of the Transfer of Property Act. Thereby the quit notice is
valid. The suit laid, pursuant thereto, is valid and legal. Accordingly
order of ejectment passed by the Small Cause Court is perfectly legal
and unassailable.

E 11. The next contention of Mr. Tunara is that the respondents
are estopped from ejecting the appellant and other tenants who are
similarly situated on the principle of promissory estoppel. His conten-
tion is founded upon the fact that the Estate Manager of the respon- -
dent in his letter dated April 3, 1972 directed the tenant to deposit
Rs.11,000 and odd for grant of tenancy after reconstruction of the flats
F therein. The tenants placing reliance thereon have deposited the
amount demanded from them and acted upon the promise to their ~
detriment. The respondent now shall be declared to be estopped from
ejecting them from the demised respective portions leased out to
them. The learned Solicitor General contended that the Estate
Manager has no authority to give a promise. Even assuming that he
G has such a power, it is conditional one, namely, approval by the Board.
The Board in its meeting resolved to reject the claim and on recon-
struction decided to allot to its own employees out of administrative
necessity. Therefore, the promissory estoppel cannot be applied. The J..
principle of promissory estoppel is that where one party has by his
word or conduct made to the other a clear and unequivocal promise or
H representation which is intended to create legal relations or affect a
V.R. VORA v. BOARD OF TRUSTEES [K. RAMASWAMY. J.] 841

legal relationship to arise in the future, knowing or intending that it
A
/}Vould be acted upon by the other party to whom the promise or
representation is made and it is in fact so acted upon the other party,
the promise or representation would be binding on the party making it
and he would not be entitled to go back upon it, if it would be inequit-
able to allow him to do so, having regard to the dealings which have
taken place between the parties. The doctrine of promissory estoppel B
is now well established one in the field of administrative law. This
principle has been evolved by equity to avoid injustice. It is neither in
c:: the realm of contract nor in the realm of estoppel. Its object is to
interpose equity shorn of its form to mitigate the rigour of strict law. In
Union of India v. Inda Afgan Agencies, Shah J., as he then was,
speaking for the Division Bench of this Court while upholding the
application of promissory estoppel to executive acts of the State
c
negated the plea of executive necessity thus:
'
"We are unable to accede to the contention that the execu-
tive necessity releases the Government from honouring its
solemn promises relying on which citizens have acted to D
their detriment. Under our constitutional set up no person
may be deprived of his right or liberty except in due course
of and by if a member of the Executive seeks to deprive a
citizen of his right or liberty otherwise than in exercise of
power derived from the law common or statute-the
Courts will be competent to and indeed would be bound to E
protect the rights of the aggrieved citizens."

It was further held in its summing up thus:

"Under our jurisprudence the Government is not exempt
from liability to carry out the representation made by it as F
to its future conduct and it cannot on some undefined and
undisclosed ground of necessity or expediency fail to carry
out the promise solemnly made by it, not claim to be the
Judge of its own obligation to the citizen on an ex parte
appraisement of the circumstances in which the obligation
has arisen." G

In Century Spinning and Manufacturing Co. Ltd. v. Ulhasnagar Muni-
~ cipal Council, [1970] 3 SCR 854 Shah, J. again extended this
doctrine of promissory estoppel against public authorities thus:

"This court refused to make distinction between a private H
842 SUPREME COURT REPORTS [ 1990] 3 S.C.R.

individual and a public body so far as the doctrine of prom-'
issory estoppel is concerned." __,

In Motilal Padampat Sugar Mills v. State of Uttar Pradesh, [1979] 2
SCR 641 Bhagwati, J., as he then was, applied the doctrine of promis-
sory ·estoppel to the executive action of the State Government and also
s· ·denied to the State of the doctrine of executive necessity as a valid
·defence. It was held that in a republic governed by rule of law, no-one
high or low is above the law; Everyone is subject to the law as fully and
completely as ariy other artd the Government is no exception. The·
Govt. cannot claim immunity from the docirine of promissory estop-
peL Equity will, in a given case where justice and fairness demands,
prevent a person from exercising on strict legal rights even where they
c arise not in contract, but on his own title deed or in statute. It is not
necessary 'that there should be some pre'existing contractual relation-
ship between the parties. The parties need not be in any count of legal
relationship before· the transaction from which the promissory estop-
pel -takes its origin. The doctrine would apply even where there is no
D pre-existing legal relation-ship between the parties, but the promise is
intended to create legal relations or effect a legal relationship which
will arise in future: It was further held that it is indeed pride of con-
stitutional democracy and rule of law that the Government stands on
the same footing as a private individual so.far as the obligation of the
law is concerned. The foimetis equally bound as the latter.. Therefore, , ,.,
E the Government cannot Clairn any ·immunity from' the -doctrine of
promissory estoppel and it cannot·say that it is under no obligation to
act in a manner i.e. fair and just or that it is not bound by tlre eonsi-
derations of honesty and good faith. In fact, the Govetttment should
be held to have a high standard of rectitude while dealing with its
citizens. Since the' doctrine of promissory- estoppel is an equitable
F doctrine, it must yield where the 'equity so requires. If it can be shown
by the Govt!that'havirig-regard to the facts as they liave transpired, it _._
would be inequitable' to hold the Govt. or public authority to the
promise ot"representation ·made by it, the Court would not raise an
e'ijility in favour of the ·ptomisee 'and enforce the promise against the
.Government: The doctrine of' promissory estoppel would be displaced
G' in such a case, because on -the facts, equity would '!O_t require that the
Government should be held bound by the promise made by it. But the
.Govt. must be able to show .that in' view of the fact as have ·been
irallspired, public:interest \votlld not be prejudiced. Where the Govi.· ;_
is required to carryout the'prornise the court would 'have to balance
the public interest in the Government's carrying out the promise made
H to the citizens; which' helps citizens to act upon and alter his position
V.R. VORA v. BOARD:OETRUSTEES.!K. RAMASWAMY, J.J 8-<l::l '

and the public interest likely to suffer if:the promises.were required to A
be carried out bythe Goverrunentanddetermine which way the.e.quity.
lies. It would not be enough just to say that·the public interest require
that the Govt. should hot be •compelled to carry out.the promise or that ·
the public interest would suffer if the Govt. were required to honour
it. In order to resist its liabjlity the•Govt. would disclose to the Court
the various events insisting it~ claim to.be.exempt.from liability and it· B :
would be for the,Court to decide whether those events are such.as to
render it equitable and to enforce the liability.against the Govt. There:,.
fore; we are holding that the doctrine .of promissory estoppel would
equally .apply to a private individµal, as well as a public, pody like a .
·Municipal Council.Jt was held .that !tcannot be applie<) in the teeth.of.
an obligation or liability imposed.by,law. It cannot.be .. invoked.to. C
•
corilpell the Govt..to. do an act prohibited by law. There .may be µo
promissory .estoppel against exercise. of.legislative functions .. Legjsla, .
tu re can never. be ·preCludea :from .exercise of its legislative functions.
by resorting to doctrine of promissory .estoppel. Tue plea o(executive
necessity, th0 ughwas.rejected; its:rigourwas mellowed down to the ..
above extent indicated. above .. The·doctrine of promissory estoppel,. D ·
though doubted in Jeet Ram v. State.<JfHaryana, [1980) 3SCR 689 was
affirmed and reiterated by a Bench of three Judges in Union of Indiav. ,
Godfrey Philipsindia Ltd., [l985]·Supp. 3 SCR 123 at.144 Bhagwati,
the Chief Justice, while reiterating the law laid down in.Motilal 'P'
Sugar Mills' case (supra) made it.clell!" thus: , , ·
'.··; E
"there can, .be no promissory estoppel against the legisfa-
ture.. in the exercise ,of.its.legislative functions nor can the
. Govt, or public al\thority,be debarred by promissory estop- ·
pel from enforcing a statutory prohibition. It is equally true ·
that promissory estoppel cannot,be used to compel the
Government or a public authority to carry out a represen- F
talion.or promise which'.ls.contrary.to law or which was
,·outside the authority or power.of the officer o.f the Govern-
. ment or of the pµbJic;mthority to make ...:We m,ay, also point
•out that the doctrine ofpromissory.estoppelbeing an equit-
able doctrine, itmustyieJg when t)le equity.so requires; if it·
can be shown by the.Government or pµbljc authori\y that G
having regard to the facts as-t!J.ey haye transpired, itwoµld.
be inequitable to hold the,Govemment;or public authprity
1 to the promise or represe!ll.ation.·made;by.,jt,.)!ie.Co11rt
would not raise.an.equity.infavoµr otthe,personto whom.
the promise or representation is macje, aµd,,en,fqrce ,the 0
promise or representation against the Government or H
public authority."
844 SUPREME COURT REPORTS

A Doctrine of Promissory Estoppel was reiterated by another Bench of
three Judges in State of Bihar v. Usha Martin Industries Ltd., [1987] -\
( 65) STC 430 and Asstt. Commissioner of Commercial Taxes, Dharwar
v. Dharnendra Trading Co., etc. etc., [1988] 3 SCR 946.

12. It is equally settled law that the promissory estoppel cannot
B be used to compel the Government or a public authority to carry out a
representation or promise which is prohibited by law or which was
devoid of the authority or power of the officer of the Government 01
the public authority to make. We may also point out that the doctrine
of promissory estoppel being an equitable doctrine, it must yield place
to the equity, if larger public interest so requires, and if it can be
shown by the Government or public authority, for having regard to the
c facts as they have transpired that it would be inequitable to hold the
Government or public authority to .the promise or representation
made by it. The Court on satisfaction would not, in those circums-
tances raise the equity in favour of the persons to whom a promise or
representation is made and enforce the promise or representation
D against Government or the public authority. Equally Promissory
estoppel should not be extended, though it may be founded on an
express or implied promise slammed from the conduct or representa-
tion by an officer of the State or public authority when it was obtained
to play fraud on the constitution and the enforcement would defeat or
tend to defeat the constitutional goals. For instance a right to reserva-
E tion either under Art. 15(4) or 16(4) in favour of the Scheduled Castes,
Scheduled Tribes or backward classes was made with a view to
ameliorate their status socially, economically and educationally so as
to assimilate those sections into the main stream of the society. The
persons who do not belong to those classes, but produce a certificate to
mask their social status and secure an appointment to an office or post
F under the State or public employment or admission into an educational
institution maintained by the State or receiving aid from the State, on
later investigation, though belated, was found that the certificate pro-
duced was false and the candidate was dismissed from the post or
office or debarred or sent out from the institution or from the balance
course of the study, the plea of promissory estoppel would always be
G found favour with the courts and being easily extended in favour of the
candidate or party that played fraud on the Constitution. It would
amount not only putting a premium on the fraud on the Constitution,
but also a denial to a reserved candidate and the general candidate as
well. Therefore, the plea of promissory estoppel should not be
extended to such a-eas.
H
V.R. VORA v. BOARD OF TRUSTEES IK. RAMASWAMY, J.] 845

Though Executive necessity is not always a good defence, this
A
doctrine cannot be extended to legislative acts or to acts prohibited by
the statute.

13. When it seeks to relieve itself from its application the
Government or the public authority are bound to place before the
Court the material, the circumstances or grounds on which it seeks to B
resile from the promise made or obligation undertaken by insistence of
enforcing the promise, how the public interest would be jeopardised as
ag'ainst the private interest. It is well settled legal proposition that the
pdvate interest would always yield place to the public interest. The
question, therefore, is whether promise, in fact, was made by the
Estate Manager on behalf of the respondent and whether the Estate
Manager is competent to make such a promise and whether it binds the
c
respondent. The letter dated April 3, 1972 written by the Estate
Manager is a conditional one, namely, that on fulfilling certain condi-
~·
tions indicated in that letter he would make recommendation to the
Board for grant of lease, condition precedent being that the tenant
would deposit the required sum of about Rs.11,000 and odd with the D
respondent. Undoubtedly, the tenants completed that part of the obli-
gation: Thereafter admittedly it was placed before the Board, who by
resolution dated September 10, 1974 which is at page 228 to 237 of the
paper book, considered it, but was rejected on the ground that after
reconstruction the building would be required to its staff. Therefore,
the decision has stemmed from its executive necessity, but that ground ·E
by itself would t!Oi be sufficient unless it is shown to the satisfaction of
the Court that as against the interest of the private tenants the interest
of its employees is of such as absolute importance that without allot-
ment of the quarters to the staff the work of the Port Trust cannot be
carried out. No such material has been placed before us. But the
crucial circumstance would be whether an unequivocal promise in fact F
was made and the Estate Manager was competent to make promise.

14. In Howell v. Falmouth Boat Construction Co. Ltd., [1951]
A.C. 837 the facts are that ship repairers in a naval vessel carried out
certain work in contravention of para 1 of the Restriction of Repairs of
Ships Order, 1940, the Admiralty, acting under regulation 55 of the G
Defence (General) Regulations, 1939 directed that repairs or altera-
tion of ships would not be carried out except under the authority of a
licence granted by the Admiralty. The defence was that work was
carried out with the oral permission of the licencing authority officer of
the Admiralty. In the Court of Appeal Lord Denning, laid the rule of
promissory estoppel that whenever Government Office~s_i11 the_~eal- H
846 SUPREME COl:JRT REPORTS [ 1990] 3 S.C.R.

ings with the subject, take on themselves to assume authority in a
A
matter with which he is concerned the subject is under entitlement to
rely on their having the authority which they assume. He does not
know and cannot be expected to know the limits of their authority and
he ought not to suffer if they exceed it. On further appeal the House of
Lords while reversing the view, Lord Simonds stated thus:
B
"I know of no, such principle in our law nor was any autho-
rity for it cited~ The· illegality of an act is the same whether
or not the•· aetor has been misled by an assumption of
authority on the part of a Government officer however high
or law in the hierarchy. I do not doubt that in criminal
proceedings it would be a material factor that the actor had
c been thus misled if knowledge was a necessary element of
the offence, and in any case it would have a bearing on the
sentence to be imposed. But that is not the question. The
question is whether the character of an act done in face of a
:t statutory prohibition is affected by the fact that it has been
D induced by a misleading assumption of authority. In. my
opinion the answer is clearly No. Such an answer ma~ make
more difficult the task of the citizen who is anxious to walk
in the narrow way, but that does not justify a different
answer being given."

E Lord Normand stated at page 849 thus:

"But it is certain that neither a minister nor any sub-
ordinate officer of the Crown.can by any conduct or rep-
resentation bar the· Crown from enforcing a statutory pro-
hibition or entitle the subject to maintain that there has
--'
F been no breach of it."

In Attorney General for Ceylon v. A.D. Silva, [1953] A.C. 461
the Privy Council was called upon to consider whether the Collector of
Custom was authorised to create a promise as against the crown. Con-
sidering that question at page 479 it was held that:
G
"All "ostensible'' authority involves a representation by
the principal as to the extent of the agent's authority. No
representation by the ageut as to the extent of his authority
can amount to a "holding out" by the principal. No public
officer, unless he possesses some special power, can hold
H out on behalf of·the Crown th_at he or solile other public
V.R. :VORA v. aoARD .OF .'fRUSTEE~ {K. RAMASWAMY, J.l .847

officer has ihe right to enter intq a contract in respect.ofthe
. . property of the Crown. when in fact no such right exists, A
. Their Lordships think, tp.erefore that nothing'done by the
Pril)cipal. Cqllector or the Chief Secretary ,amounted to a
h.olding put by the <;:rown.th,at the Principal Collector h.~d
the, rigjJ.t to enter ,into a contract to sell .the, goods which are
subject mat\er of \his ac(ion." , · , . r. . •"• B
• . J-,

In Administra;ive Lawby Wade, 6th Editjon,at<page 385 it is stated
thus: . ·'

"If the force of law is given to a ruling from an official
merely. because it is wrol)g,,the official who has not legal
power, is in effect substituted. for .the ·proper~auth()rity , c
which is forced to accept what .it considers. a bad.decision,

- To legitimate u./tra vires. a.els. in. this way cannot be sound
. policy, being. a negat\on pf.tl)e :£undamenta1',canrn;ms C)f
administfati:ve la~.'.'. '. r • ,, , ••• ' , 'i,---!~H- :' -
!. • <' i •·'_,,:i;: l ·',.i·r .; :.;-:_ 0
'' ...Thus we have no hesitation to.hold that befor;e making the.public
authority responsible for acts of its subordinate, it must be establis.hed
that the' subordinate .qfficer did in fact make th~ r<;presentation,and as
a fact, is competent to make a bin.dir,tg p,romise on behalf.of the ,public
au'thority or the Governnie.nt, ult;a vires .acts do.not bind.the authority
and insistence t9 abide by the said ultra vires pr~rnise would amounqo E
putting premium and)egitililacy.to ultra ,vires acts of,sµbordinate;offic
cers. I.tis seen fromthe.record ihat the fstat.e,Manageris,mere!y an.
iniermediary to collect the mat~rial between the respondent: Pott Trust
f
ajl4 ts', tenants and, io place, the niat~rial f\,r ~nsideration. t9,. the.
Board._Ther,epy the ,Estate Maqager i~ 1 not clqtiled with itny aµthority
much less eyen ostensible authority to create .a pr9mise so as !P bind. F;
th,e respondent, tha,\ the respondent would :aHqt.th~ :rooms: or!' recon·,
s.truction to. the. tenants. Tl\e promise, by him is.an ult~a xir~s act,.
th,ough ,conditional and,. therefore, ii ,does .!Jot:.bind, t!ie rJ'spondent<
Thqugl}. the ~xe7!1tiv.e pecessity .has ,l)Ot b,eel) sati5fac(o~ily ~s!,ab)isheµ,,
we hold that t,he cjoctrine of promisso~y .estoppel, ,in the .Jight .ofcthe
abo~e·fac,~s f'~nrioi b~ exte11dedJn favqur of, the app~,llan~.'lnq.other, Q
t~_i:ant_s. ,:.. -;,- _,.-.":-. ,. !;_ :· - : 1 , ~l' ;r'.·_l1 . ~- .:; ,/
·.c ·- ·_ .. , _, ...• !i .-. -~q' • . ;'• -~ · , _ "~-''f· ,,,1•;··· 1rf!l'.;l
16. Sri Tunara.further submitted that the ,tenant did·.not derive'
tide;'.~a;,;dy, lease-hold pght tro~,.the ~~spol)\l~µt Pprt.'f,~~t unc!er•
the Ceritral Ac.t. That the t~na.ntdisputed the.\itle,and it is ,a s.ufficient
de,fen~e 'und~or t~e ~xplanatii:m t() .section 4,\tO.n,on s,uitJhe rpspRndent, H
848 SUPREME COURT REPORTS [1990] 3 S.C.R.

in the summary proceeding. It was open to the respondent to file a
A regular suit. The Small Cause Court ought to have rejected the appli- -\
cation on that ground and the High Court would have gone into the
question. It being a pure question of law, this court may permit the
appellant to argue on the point for the first time in this Court. It is
undoubtedly true as held by catena of decisions of this Court that a
B pure question of law, untramelled by questions of fact, which goes to
tne roots of the jurisdiction. could be permitted to be raised for the
first time in an appeal under Art. 136 of the Constitution. We are _:•.
afraid. we cannot permit the appellant to raise this point for the
following reasons:

Firstly, .except making a bald averment in the written statement
C that the "suit is not maintainable" nothing has been pleaded in detail
in the written statement. Admittedly this point was neither taken in
the writ petition nor argued in the High Court. It is not even raised in
the grounds of appeal in this Court nor even in points raised in the
synopsis of the case. It is stated that remotely it was raised. in the
D rejoinder. Since it is a mixed question of facts and law and not being a
pure question of law, we cannot permit to raise the point for the first
time, that too, when it would prejudice the respondent of their case at
this stage. We accordingly decline to go into the question. We would
also straighten the record and state that the appellants raised in the
writ petition the vires of Sec(lqns 2, 3 and 4 of the Maharashtra Y
E Amending Act, 1963 introducing Sec. 42(A) in Chapter VII of the
Presidency Small Cause Courts Act and deleting Sections 45 to 47 from
the Principal Act and of an amended Sec. 49 thereof as well as Sec.
46(2) of the Presidency Small Cause Courts Act as amended by
Maharashtra Amendment Act of 1976 as offending Art. 14 of the
Constitution, and unsuccessfully argued before the Division Bench of
F the High Court same point was-raised in the grounds of appeal in this
court. Though (he appeal was argued for three days, Mr. Tunara did
not argue this point across the Bar, nor we had the advantage of
hearing the learned Solicitor General. Even in a written brief running
into 44 pages submitted by the counsel, he did not deal with this point.
The counsel, after arguing the two points dealt with earlier, has
G devoted his time 011 the question of jurisdiction of the trial court under
Sec. 41, despite our repeatedly reminding him that this point was
neither raised, nor argued 4i the High Court. At the end he stated that
he had elaborately arg11ed the point of vlres before the Single Judge
and the Division Bench and exc~pt repetition of the same once over,
he could do no better by further aruging here. Therefore, this Court
H could go through the judgment and deal with the point. We deprecate
V.R. VORA v. BOARD OF TRUSTEES [K. RAMASWAMY, J.] 849

this practice. When a constitutional question has been raised and does A
arise for consideration, unless there is a full-dressed argument addres-
) sed by either side before this court no satisfactory resolution could be
made. Mere paraphrasing the judgment of the High Courtin particular
when it relates to the local laws is no proper decision making. There-
fore, after giving our anxious consideration, we, with great anguish.
B
decline to go into the point. Except these. no other points have been
argued. Accordingly we do not find any merit in the appeal.

..._ - 17. The appeal is dismissed. but in the circumstances without
costs.

N.V.K . Appeal dismissed.

..

-'...