M/S Sharda Educational Society vs Sri Sheo Kumar Singh on 17 December, 2024

0
18

Patna High Court – Orders

M/S Sharda Educational Society vs Sri Sheo Kumar Singh on 17 December, 2024

Author: Khatim Reza

Bench: Khatim Reza

                       IN THE HIGH COURT OF JUDICATURE AT PATNA
                                       CIVIL REVISION No.87 of 2023
                  ======================================================
            1.     M/S Sharda Educational Society Registered office At K-45, Mohalla-
                   Hanuman Nagar, Kankarbagh, Patna through its President Sri Arun Kumar
                   Singh, present, address C/o Open Mind Birla School, Village-Brahmpur,
                   P.O.-New Jaganpura, Subhash Nagar, P.S. Ram Krishna Nagar, District
                   Patna PIN Code-800027.
            2.    Sri Arun Kumar Singh, son of Late Ram Niwas Singh, resident of M/s
                  Sharda Education Society, Resident of A/P, P.C. Colony, P.O.-Lohiya Nagar,
                  P.S. Kankarbagh, District-Patna-800020.
                                                                            ... ... Petitioner/s
                                                    Versus
            1.    Sri Sheo Kumar Singh son of Late Mathura Singh, resident of Village-
                  Brahmpur, P.S. Ram Krishna Nagar, District and Town-Patna.
            2.    Sri Sudhir Kumar @ Sudhir Singh, Son of Late Mathura Singh, resident of
                  Village-Brahmpur, P.S. Ram Krishna Nagar, District and Town-Patna.
            3.    Sri Binod Kumar Singh, son of Late Mathura Singh, resident of Village-
                  Brahmpur, P.S. Ram Krishna Nagar, District and Town-Patna.
            4.    Sri Prem Ranjan Kumar, son of Late Mathura Singh, resident of Village-
                  Brahmpur, P.S. Ram Krishna Nagar, District and Town-Patna.
            5.     Sri Rajesh Kumar Singh, son of Sri Ram Layak Singh, Secretary of M/S
                   Sharda Educational Society, Resident of Raj Neeta Enclave, C.C.-48, P.C.
                   Colony, Kankarbagh, near Patliputra Sports Enclave, P.O. and P.S.
                   Kankarbagh, District and Town-Patna-800020.
                                                                          ... ... Opp Party/s
                  ======================================================
                  Appearance :
                  For the Petitioner/s   : Mr. J. S. Arora, Sr. Adv with
                                           Mr. Manoj Kumar, Adv.
                  For the Opp Parties    : Mr. K.N. Choubey, Sr. Adv. with
                                           Mr. Amaresh Kumar Sinha, Adv.
                  ======================================================
                  CORAM: HONOURABLE MR. JUSTICE KHATIM REZA
                                         CAV ORDER

28   17-12-2024

Heard Mr. J. S. Arora, learned senior counsel for the

petitioners and Mr. Kamal Nayan Choubey, learned senior

counsel for the opposite parties.

2. By the impugned order dated 24-01-2023 passed in

Title Eviction Suit No. 56 of 2022 the learned court below has

rejected the petition filed by the petitioners-defendants praying

for rejection of the plaint under order 7 Rule 11(a) and (d) of the
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
2/24

Code of Civil Procedure.

3. The plaintiffs filed the suit bearing Title Eviction Suit

No. 56 of 2022 on the ground of breach of terms and condition

of tenancy as well as for default in payment of rent and also for

decree for arrears of rent of Rs. 3,28,92,096.77/-. The case of

the plaintiffs is that they are the owners and landlords of the

suit premises. It is further case of the plaintiffs that defendants

approached the plaintiffs and requested them to let out the said

land to construct a building over the said land to run educational

institution. At the request of the defendants, the plaintiffs had

agreed to let out the schedule-1 land on the terms and conditions

agreed between the plaintiffs and the defendants. It is further

contended that a registered lease agreement was executed on

17-10-2011 duly signed by both the lessors and lessees for a

fixed period of 33 years commencing from 01-10-2011 and

ending on 30-09-2044 on monthly rent of Rs. 92,550/- with

condition to increase 7% per year. The period of 01-10-2011 to

31-03-2013 was offered by the lessors to the lessees for

construction of a school building over the said land. It is further

agreed that during the said period the lessees would pay only

Rs.1000/- per month to each of the lessors for the entire land in

question. The possession of the land was handed over to the
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
3/24

lessees by the lessors on 01-10-2011. It was agreed that during

the said period the lessees would construct and develop a

multistoried building over the said land for the purpose of

running educational institution with all facilities and amenities

on their own cost and the lessees would neither claim nor adjust

amount in constructing the school building etc., and shall not

deduct any amount from the monthly rent. Subsequent to the

execution of the said lease agreement, the lessees approached

the Bank to obtain loan of Rs. six crores for construction of the

building for School, namely “Open Mind” Birla School over

the said land. It is further contended that the Bank asked the

lessee to execute equitable mortgage of the said land for

sanction of the land as collateral sureties. Thereafter, the lessee

requested the plaintiffs- lessors to execute equitable mortgage of

the land as they were the owners of the said land. On the request

of the defendants-lessees, the plaintiffs became ready to execute

equitable mortgage of the said land for the said purpose with the

consent of both the plaintiffs-lessors and defendants-lessees.

Some modification was made in the terms and conditions of the

previous registered lease, and as such, for the said modification

with their consent a supplementary lease deed was executed on

15-02-2013 duly signed by both the parties. It is further
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
4/24

contended that said supplementary lease (unregistered) was

executed in continuation of the previous lease deed. Thereafter,

the plaintiffs agreed to execute equitable mortgage of their land

for sanction of loan amount of Rs. Six crores for construction of

school building. It is further pleaded that the supplementary

lease deed was executed for modification of some terms and

conditions of the previous lease deed so the supplementary

lease deed does not require to be registered. As per previous

lease, monthly rent for the leased premises was fixed Rs.

92,550/- per month which was to be enhanced at the rate of 7%

each year , but according to the modified terms in the said

supplementary lease deed, the monthly rent was fixed @ Rs. 9

per sq. ft for the constructed super built up area which would be

enhanced time to time. The school building would be

constructed over 27500 st. ft each floor and expected

constructed area up to G+3 would come to 1,37,500/- sq. ft. It

was also agreed that the monthly rent would be calculated on

the basis of constructed portion of the building and the same

would be enhanced gradually. It was also agreed that the lessors

would pay 75% of total cost of construction with interest

imposed by the bank and the rest 25% of the amount would be

returned to the lessees by the lessors without any interest. It
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
5/24

was also agreed that the amount would be paid by the lessors

from the monthly rent of the building and after

adjustment/payment of entire loan amount the lessors would be

entitled to get the monthly rent of the said building.

4. Further case of the plaintiffs’ is that it was agreed that

the loan would be obtained and disbursed in the name of lessee

and it had to be declared that the lessors had mortgaged their

land to the Bank and the entire construction of the School

Building should belong to the lessors from the day of erection

and that the lessee should have no claim over the said school

building at any point of time except the tenancy right. In case of

default in payment of rent, the lessees would make itself liable

to vacate the premises and hand over the premises to the lessors.

As per the terms of the lease agreement, loan amount with

interest of the Bank has been adjusted by the lessee in the

monthly rent since 01.04.2013 to July 2021, and as such, the

monthly rent since 2021 @ Rs. 28,71,000/- has become due on

the lessors against lessees. In spite of demand made by the

plaintiffs through legal notice, the defendants are not paying the

rent to them, and as such, the defendants have become defaulter

in payment of the rent. Further case of the plaintiffs is that they

served a notice U/s-106 of the T.P. Act. through registered post
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
6/24

dated 25.04.2022 terminating the tenancy of the defendants of

the lease premises on the expiry of 31st day of May 2022

requesting them to vacate the premises on 01.06.2022 and to

pay the arrears of rent. The plaintiffs further contended that

defendants have committed breach of the terms of the tenancy

and have also defaulted in payment of the rent and that the

tenancy of the defendants has already been terminated as

required under the law, but they have not vacated the premises

as yet and hence the suit.

5. On summons, the defendants- petitioners appeared in

the said Eviction Suit and filed their written statement stating

therein that the facts having been stated above whereby the said

suit was barred by law. A separate petition under Order VII Rule

11 CPC was also filed for rejection of the plaint as the cause of

action for the said suit was based on the said supplementary

lease agreement (unregistered).

6. Upon considering the averments made in the plaint, the

learned trial Court rejected the application filed under Order VII

Rule 11(a) and (d) of the CPC and held that the lease agreement

between the parties executed and registered and supplementary

lease agreement (unregistered) which is part of the registered

lease agreement and as per averments made in the plaint, the
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
7/24

present suit is maintainable, and as such, the present suit is not

barred by the law. Therefore, the petition filed by the

defendants-petitioners under order VII Rule 11 CPC was

dismissed.

7. Aggrieved by the judgment and order dated

24-01-2023 passed in Title Eviction Suit No. 56 of 2022 by the

Court of learned Sub Judge-1, Patna, the present Civil Revision

application has been filed by the defendants- petitioners.

8. Mr. J.S. Arora, learned senior counsel, representing the

petitioners submitted that the learned Trial Court failed to

consider the mandates of Order VII Rules 11(a) and (d) of the

CPC. It is submitted that under Order VII Rule 11, a duty is cast

on the Court to determine whether the plaint discloses a cause of

action by scrutinizing the averments in the plaint read in

conjunction with the documents relied upon or whether the suit

is barred by any law. Learned senior counsel further submits

that when a document referred to in the plaint, forms the basis

of the plaint, it should be treated as part of the plaint. The

learned Court below would determine if the assertion made in

the plaint are contrary to the statutory law or judicial decision,

for deciding whether a case for rejecting the plaint at the

threshold is made out. It is submitted that the tenancy created
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
8/24

between the parties through registered lease deed on 17-10-2011

on the terms and conditions, as mentioned therein, it is apparent

from the registered lease deed that after completion of the said

building in terms of the said lease deed rent became due and

payable w.e.f. April, 2013 and prior to that in terms of the deed

of lease only Rs. 1,000/- per month was payable to each of the

plaintiffs-landlords. The petitioners were regularly sending the

said amount of Rs. 1,000/- per month to each of the opposite

parties up to March 2013 through Account Payee cheques. It is

further contended that w.e.f. April 2013 in terms of the said

lease rent amount of Rs. 92,550/- per month became payable

in four equal parts to each of the opposite parties. The

petitioners wanted to start payment of rent at the said rate, but

the opposite parties did not receive the same. In such situation,

the petitioners are constrained to tender the said amount to each

of the opposite parties through money order, but they did never

receive. It is further pleaded that the present suit has been filed

on the basis of supplementary unregistered lease deed dated

15-02-2013 by which some modification was made in the terms

and conditions of the previous registered lease deed and it is

alleged that the said supplementary lease deed was executed in

continuation of previous lease deed. The said lease was for a
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
9/24

fixed period of 33 years commencing from 01-10-2011 and

ending on 30-09-2044. In terms of the modified unregistered

lease deed, the monthly rent was fixed at Rs. 9 per sq. ft for the

constructed super built up area amounting to Rs. 28,71,000/-

per month since 01-04-2013 to July 2021. The said amount has

not been paid by the defendants-petitioners, and as such the

defendants have become defaulters in payment of rent.

9. From a bare perusal of the plaint, it would appear that

cause of action for the suit arose on 25-04-2022 when the notice

under Section 106 of the Transfer of Property Act, 1882

(hereinafter referred to as ‘the Act’) was sent to the defendants

terminating the tenancy of the defendants and on the expiry of

31st day of May 2022, when the tenancy was terminated as

alleged by them. Learned senior counsel submitted that the

terms and conditions of registered lease deed dated 17-10-2011

is only binding on the parties and subsequent unregistered deed

(supplementary lease deed) was containing complete contrary

terms of lease, as contained therein, is not binding upon the

defendants-petitioners. It is well – settled principle of law that

the terms and conditions of a registered document can only be

varied or altered by another registered document only. Reliance

has been placed in the case of Sunil Kumar Roy vs. Bhowr
Patna High
Court C.R. No.87 of 2023(28) dt.17-12-2024
10/24

Kankanee Collieries Ltd and others reported in (1970) 3 SCC

565 wherein, the Hon’ble Apex Court has held that “it is well

settled that a document which varies the essential terms of the

existing registered lease, such as the amount of rent must be

registered. Registration of an agreement is necessary which

reduces the rent of an existing registered lease. Any reduction

in the rate of royalty could not have been effected by means of a

document which had not been registered under the Registration

Act.”

10. Learned senior counsel further contended that there

was complete lack of cause of action in the plaint in question

and that the suit was barred by law since in view of section 49

of the Registration Act, 1908 (hereinafter referred to as ‘the Act

of 1908’) no court is required to rely on any document which is

compulsorily registrable, but the same is not registered. It is

submitted that the learned court below while passing the

impugned order failed to appreciate that the entire cause of

action to bring that suit was based on the unregistered lease

deed. There is no averments in the plaint that the defendants are

defaulters as per terms and conditions of the registered lease

agreement dated 17-10-2011, and as such, no question of cause

of action arose on the point of being defaulters.
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
11/24

11. Learned senior counsel for the petitioners draws the

attention of the Court towards paragraph no.5 of the plaint

which reads as follows:-

“5. That subsequent to the execution of
the said Lease Agreement the Lessee approached
the Bank to obtain loan of Rs. Six Crore for
construction of the building for school “Open
Mind” a Birla School over the said land. Bank
asked the lessee to execute equitable mortgage of
the said land for sanction of loan as collateral
securities. Thereafter, the lessee requested the
plaintiffs lessors to execute equitable mortgage of
the land as they were the owners of the said land.
On the request of the lessee the plaintiffs became
ready to execute equitable mortgage of their said
land. On the request of the defendant lessee the
plaintiffs became ready to execute equitable
mortgage of their said land but for the said
purpose with the consent of both the plaintiff
(lessors) and defendants (lessees) some
modification was made in the terms & conditions
of the previous lease and as such for said
modification with their consent a supplementary
lease deed was executed on 15.02.2013 duly signed
by both the parties, the plaintiffs and the
defendants. The said supplementary lease was
executed in continuation of the previous lease
deed. Thereafter, the plaintiffs agreed to execute
equitable mortgage of their land for sanction of
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
12/24

loan amount of Rs. Six Crore to construct building
for School “Open Minds.”

12. It is further contended that the plaintiffs’ claim made

on the basis of the modified terms in the said supplementary

lease deed, which transpires from paragraph nos. 7 and 10 of the

plaint, which read as follows:-

“7. That as said above as per previous
lease the monthly rent for the leased premises was
fixed Rs. 92,550/- per month which was to be
enhanced @7% each year but according to the
modified terms in the said Supplementary lease
deed the monthly rent was fixed @ Rs. 9/- per sq.
ft. for the constructed Super built up area which
would be enhanced time-to-time. It was also
agreed during the further negotiations that the
building would be constructed over 27500 sq. ft.
each floor and expected constructed area up to
G+3 would come to 1,37,500 sq. ft. It was also
agreed that the monthly rent would be calculated
on the basis of constructed portion of the building
and the same would be enhanced gradually.

10. That as per the terms of the Lease
Agreement loan amount with interest of the Bank
has been adjusted by the lessee in monthly rent
since 01.04.2013 to July 2021 and as such the
monthly rent since 2021 @ is 28,71,000/- has
become due of the Lessors against lessees.”

Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
13/24

13. Learned senior counsel vehemently submitted that the

provisions of Order VII Rule 11 is mandatory in nature. It states

that the plaint “shall” be rejected if any of the grounds specified

in clauses (a) to (e) is made out. If the Court finds that the

plaint does not discloses a cause of action or that the suit is

barred by any law, the Court has no option, but to reject the

plaint. From the averments made in the plaint, it would appear

that the cause of action arose on the basis of failure of terms

enumerated in the unregistered supplementary lease deed dated

15-02-2013, which has altered the registered lease deed dated

17-10-2011, which is in violation of section 49 of Act of 1908.

Reliance has been placed in the case of Bhaiya Ramanuj

Pratap Deo Vs. Lalu Maheshanuj Pratap Deo & Ors. reported

in AIR 1981 SC 1937. Learned senior counsel further places

reliance in the case of Dr. Arun Kumar Singh & Anr. versus.

Smt. Radha Devi, reported in (2015)3PLJR 407, wherein, this

Court has held that “the terms and conditions of a registered

document can only be varied or altered by another registered

document only.”

14. It is further argued by the learned senior counsel that

it is the case of the plaintiffs that the defendants have defaulted

in payment of rent as per rent under the supplementary lease
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
14/24

and not as per the registered deed of lease. By alleging default

on the basis of supplementary unregistered lease deed the

plaintiffs have contended that on account of non- payment of

rent the defendants have become liable to be evicted from the

suit premises. It is the admitted case of the plaintiffs that the

lease deed dated 17-10-2011 is registered one, which has been

duly executed by both the parties. The plaintiffs have admitted

that there is another supplementary unregistered lease deed and

the rate of rent given therein has not been paid by the defendants

and, therefore, defendants have become defaulter in payment of

rent. The said supplementary lease deed being barred under

Section 49 of the Act of 1908, for which no cognizance can be

taken by any court of law. Hence, the suit is liable to be rejected

under Order VII Rule 11 of the Code of Civil Procedure as the

same is apparent on the face of the plaint on the basis of

statement made in the plaint.

15. Per contra, Mr. K.N.Chaubey, learned senior counsel

for the opposite parties vehemently opposed the submissions

made by the petitioners and contended that unless the

defendants seeking rejection of plaint are able to bring the case

within any one of the clauses found in Rule 11 of Order VII

CPC, they cannot succeed in getting the plaint rejected. It is
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
15/24

also his contention that the question ‘whether a plaint can be

rejected or not?’- has to be decided based on the averments

made in the plaint and the documents filed along with the plaint

and not based on the defence plea made in the written statement

under order VII Rule 11 of the CPC. It is further submitted that

Clauses (a) and (d) of Order VII Rule 11 deals with absence of

disclosure of cause of action and the suit appearing from the

statement to be barred by any law. Whether the plaint discloses

a cause of action for the suit or not, has got to be decided only

based on the averments made in the plaint and the documents

produced along with the plaint. The cause of action alleged may

not be true or may be a deliberate falsehood. The court dealing

with a petition under Order VII Rule 11 cannot go into the

question whether cause of action alleged in the plaint is true or

false and take a decision based on the defence plea taken by the

defendants or based on the documents produced by the

defendants. Moreover, the ground for rejection of plaint, Order

VII Rule 11(d) shall get attracted only where the statement as

made in the plaint without any doubt or dispute shows that the

suit is barred by any law for the time being in force. It is further

contended that averments made in the plaint and the

documents relied upon establish a cause of action, allegations in
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
16/24

the plaint prima facie show a cause of action, the court cannot

embark upon an enquiry whether the allegations are true in fact.

16. The scope, ambit and exercise of power under Order

VII Rule 11 of CPC has been aptly discussed in the case of

Kamala and Ors. Vs. K.T. Eshwara Sa & Ors. reported in

(2008)12 SCC 661 and paragraph no.21 of the judgment would

be relevant for the issue:

“21. Order 7 Rule 11(d) of the Code has
limited application. It must be shown that the suit
is barred under any law. Such a conclusion must be
drawn from the averments made in the plaint.
Different clauses in Order 7 Rule 11, in our
opinion, should not be mixed up. Whereas in a
given case, an application for rejection of the
plaint may be filed on more than one ground
specified in various sub-clauses thereof, a clear
finding to that effect must be arrived at. What
would be relevant for invoking clause (d) of Order
7 Rule 11 of the Code are the averments made in
the plaint. For that purpose, there cannot be any
addition or subtraction. Absence of jurisdiction on
the part of a court can be invoked at different
stages and under different provisions of the Code.
Order 7 Rule 11 of the Code is one, Order 14 Rule
2 is another.”

17. The learned senior counsel for the opposite parties
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
17/24

places reliance on the judgment in the case of P.V. Guru Raj

Reddy represented by GPA Laxmi Narayan Reddy & Anr. Vs.

P. Neeradha Reddy & Others reported in (2015) 8 SCC 331

wherein the Hon’ble Apex Court has held that “rejection of the

plaint under Order 7 Rule 11 of CPC is a drastic power

conferred in the court to terminate a civil action at the

threshold. At the stage of exercise of power under Order 7 Rule

11, the stand of the defendants in the written statement or in the

application for rejection of the plaint is wholly immaterial. It is

only if the averments in the plaint ex facie do not disclose a

cause of action or on a reading thereof the suit appears to be

barred under any law the plaint can be rejected. In all other

situations, the claims will have to be adjudicated in the course

of the trial.” Learned senior counsel places reliance upon

submission made in the plaint as well as registered lease deed

dated 17-10-2011 and submits that in paragraph nos. 10 and 11

of the registered lease deed the lessees (petitioners) were to

mortgage the said land in which lessors agreed to sign as

guarantors for securing loans from the Bank. The lessees will

give all their properties in collateral security to the said land

worth of Rs. five crores and in case of NPA declared by the

Bank the properties of lessees will be first auctioned. The
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
18/24

petitioners, under the aforesaid clauses of the said lease deed,

faced difficulty in obtaining loan from the Bank. So they

approached the lessors and gave a proposal to them to directly

mortgaged their leased landed property with the Bank

themselves to secure six crores loan from it without any

collateral security from the lessees. Since in the aforesaid

proposal, there was a substantial deviation from the said lease

deed agreement, the lessors on a condition of change in the

original lease deed agreement by way of supplementary lease

deed agreed to mortgage the said property with the Bank which

was accepted by the lessees and accordingly a registered

mortgage deed was executed with the Bank by the lessors for

securing loan of Rs. Six crores. As per the aforesaid mutual

agreement reached between the parties, at the time of mortgage

of the properties by the lessors, a supplementary lease deed

dated 08-02-2013 was prepared and executed by the parties. It

is further stated that as per Clauses 13,14, and 15 of the

supplementary lease deed, it was agreed between the parties

that lessees will start paying the rent of the lease premises to the

lessors after all the loan amount is liquidated and paid to the

Bank and the loan amount has been paid during the period from

01-04-2013 to July 2021. The rent of the aforesaid period of the
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
19/24

leased premises was adjusted in liquidation of loan amount of

the bank by the lessees as per the supplementary lease

agreement. So for total of about 9 years lessees did not pay any

rent to the lessors. It is also submitted that the petitioners never

gave any amount of rent either under the registered lease

agreement or under the supplementary lease agreement. As per

the provisions of registered lease agreement, the lessees had to

give rent by way of cheques, but instead of doing so they have

cooked up their story for making their case by way of making

statement that they were sending rent amount through money

order to the lessors. In fact, under the provisions of registered

lease deed, on default of payment of rent for six months by

lessees the said lease agreement will automatically come to an

end. The supplementary lease deed has been acted upon by the

parties. For nine years the lessees were silent and taking the

benefit of supplementary lease deed, but now they are running

away from their liabilities. Learned senior counsel further

submitted that in the aforesaid facts and circumstances, doctrine

of estoppel is applicable against the defendants. Reliance has

been placed in the case of B.L. Sreedhar & Others v. K.M.

Munireddy (Dead) & Others reported in AIR 2003 SC 578.

18. Having considered the submissions made by the
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
20/24

parties and averments in the plaint which is germane to the

objects of Order 7 Rule 11 (a) CPC is that if in a suit, no cause

of action is disclosed, or the suit is barred by limitation under

Rule 11(d), the court would not permit the plaintiff to

unnecessarily protract the proceedings in the suit. In such a case,

it would be necessary to put an end to the sham litigation, so

that further judicial time is not wasted. This view has been

taken in the case of Dahiben vs. Arvindbhai Kalyanji

Bhanusali (Gajra) Dead through legal representatives &

Others reported in (2020) 7 SCC 366.

19. The whole purpose of conferment of powers under this

provision is to ensure that a litigation which is meaningless, and

bound to prove abortive, should not be permitted to waste

judicial time of the court. This view has been taken by the

Hon’ble Supreme Court in the case of Azhar Hussain v. Rajiv

Gandhi reported in 1986 Supp SCC 315.

20. The scope of Rule 11 of Order VII CPC has been

explained in various decisions and the legal principles deducible

are that, if the plaint does not disclose the cause of action or is

barred by law: can be rejected where the litigation was utterly

vexatious and abuse of process of Court. The test for exercising

the power under Order 7 Rule 11 is that if the averments made
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
21/24

in the plaint are taken in entirety, in conjunction with the

documents relied upon would the same result in a decree being

passed. In the case of Hardesh Ores(P) Ltd v. Hede & Co.

reported in (2007) 5 SCC 614 the Hon’ble Apex Court held that

it is not permissible to cull out a sentence or a passage, and to

read it in isolation. It is the substance, and not merely the form,

which has to be looked into. The plaint has to be construed as it

stands, without addition or subtraction of words. (Liverpool &

London S.P. & I Assn. Ltd. Vs. M.V. Sea Success I & Anr.).

21. From the plain reading of the plaint, it would appear

that the suit is filed for default in payment of rent and breach

of terms of tenancy and also for non -payment of arrears of

rent for 09 years. It further appears that the tenancy was

terminated on 31st day of May, 2022. The arrears of rent has

been calculated in terms of supplementary lease deed which was

not registered. The Hon’ble Apex Court has discussed the effect

of non registration of a lease deed which was required to be

registered as per the law in the case of K.B. Saha and Sons

Pvt. Ltd. vs. M/S Development Consultant Ltd. reported in

(2008) 8 SCC 564 in which the Hon’ble Apex Court has held as

under:-

“32. In the case of Bajaj Auto Limited vs.
Behari Lal Kohli
[AIR 1989 SC 1806], this Court
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
22/24

observed that if a document is inadmissible for non
registration, all its terms are inadmissible
including the one dealing with landlord’s
permission to his tenant to sublet. It was also held
in that decision that if a decree purporting to
create a lease is inadmissible in evidence for want
of registration, none of the terms of the lease can
be admitted in evidence and that to use a document
for the purpose of proving an important clause in
the lease is not using it as a collateral purpose.
Again this court in Rai Chand Jain Vs. Chandra
Kanta Khosla
[AIR 1991 SC 747] reiterated the
above and observed in paragraph 10 as under:

“10……..the lease deed Ex. P1 dated 19th May,
1978 executed both by the appellant and the
respondent i.e. the landlady and the tenant, Rai
Chand Jain, though unregistered can be considered
for collateral purposes and as such the findings of
the Appellate Authority to the effect that the said
deed cannot be used for collateral purposes
namely to show that the purpose was to lease out
the demised premises for residential purposes of
the tenant only is not at all legally correct. It is
well settled that unregistered lease executed by
both the parties can be looked into for collateral
purposes. In the instant case the purpose of the
lease is evident from the deed itself which is as
follows: “The lessor hereby demises House No.
382, Sector 30A, Chandigarh, to lessee for
residential purposes only”.

Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
23/24

22. It is apparent from the above decision, that if a

document is inadmissible in evidence for want of registration,

none of its terms can be admitted in evidence and that to use a

document for the purpose of proving an important clause would

not be using it as a collateral purpose.

23. In the present case, plaintiffs-opposite parties in its

plaint have relied upon various clauses of said unregistered

supplementary lease agreement and on that basis plaintiffs have

filed the suit alleging default in payment of rent on the basis of

unregistered document modifying the terms of a registered deed

of lease which is not liable to be taken into consideration in

view of the decision in the case of Sunil Kumar Roy (supra).

24. In such view of the matter, the terms of tenancy

between the parties has to be considered on the basis of

registered lease deed dated 17-10-2011.The learned trial court,

while considering the said registered lease deed, has held that

the supplementary lease deed (unregistered) is the part of

registered lease deed dated 17-10-2011. This finding is in the

teeth of the aforesaid judgment of the Hon’ble Supreme Court.

25. For the foregoing reasons, this civil revision is

allowed.

26. The impugned order dated 24-01-2023 passed by the
Patna High Court C.R. No.87 of 2023(28) dt.17-12-2024
24/24

learned Sub Judge-I Patna in Title Eviction Suit No. 56 of 2022

is hereby set aside and the matter is remanded to the learned

court below to decide the application filed by the defendants-

petitioners under Order VII Rule 11(a) &(d) of the CPC afresh

in accordance with law after hearing the parties.

(Khatim Reza, J)
shyambihari/-

U



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here