# CHIRANJI LAL KHAITAN v. MOTI LAL SARAOGI (Hegde, J.) 33

- **Citation:** [1972] 1 S.C.R. 22
- **Court:** Supreme Court of India
- **Decided:** 1971-08-04
- **Bench:** K. S. Hegde, A. N. Grover
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/chiranji-lal-khaitan-v-moti-lal-saraogi-hegde-j-33-5348
- **Pages:** 8

## Headnote

Bihar & West Bengal (Transferred Territories) Act. 1956-Wesl
!8,ngal Transferred Territories (Assimilation of Laws) Act, 1958West Bengel Non-Agricultural Tenancy Act, 1949-Suit for eject111e111
·of' tenant filed in Bihar lerritory after notice under s. 106 of TP. ActSuit decreed-Appeal pending in Patna High Court-Territory transferred to West Bengal-Appeal transferred to Calcutta High Court
-Suit whether liable to he dismissed for want of six months' notice
.under s. 9(1J(h)(iii) of 1949 Act-Section whether made applicable hr
s. 88 of that Act-Effect of s.3(2) of 1958 Act-No compensation for
.superstructures payable when tenancy not terminated under s. 9(I)(b)(iiil.
The plaintiff (predecessor-in-interest of the appellants) leased a
plot of land then situate in Bihar State to the defendant by oral lease
in 1943. In 1947 without the plaintiff's knowledge the defendant
built certain superstructures on the land. In 1948 the plaintiff asked
him to remove the structures. On his failure to do so the plaintiff in
'September, 1948 gave him a notice to quit under s.106 of the Transfer
of Property Act Thereafter he filed a suit which was decreed by the
trial court in 1952. The first appellate court affirmed the decree. The
.defendant's second appeal was pending in the Patna High Court when
the area in question was transferred to West Bengal. Under the
provisions of the Bihar & West Bengal (Transferred Territories) Act.
1956 the said appeal was transferred to the Calcutta High Court In
1958 the West Bengal Legislature enacted the West Bengal Transferred
Territories (Assimilation of Laws) Act, 1958. The Calcutta High
Court in 1965 set aside the decree and dismissed the plaintiff's suit
because six months' notice as required under s.9(1 )(b}(iii) of the West
Bengal Non-Agricultural Tenancy Act, 1949 had not been given.
According to the High Court s.9 was made applicable by s.88 of the
Act which was in wide terms.
With certificate appeal against the
judgment of the Calcutta High Court was filed in this Court. Allowing the appeal,
HELD : (i) The provisions of the 1949 Act did not apply to the
A
B
c
D
£
·'transferred terrirories' on their own force.
They were extended to
G
these territories under the provisions of 1958 Act. Section 3 of that
Act while repealing the laws that were in force in the 'transferred territory' and extending the laws that were no force in the rest of West
Bengal saved the previous operation of the existing laws so repe~led and
further saved anything done or suffered under those laws.
[28C-E]
In other words because of cl.(a) of the proviso to s.3(2) acts duly
done under the repealed Jaws are protected. The quit notice given
·under 5.106 of the Transfer of Property Act by the plaintiff was an act
•duly done under a repealed law and was therefore protected. Its
H
•
•
CHIRANJI LAL KHAITAN v. MOT! LAL SARAOGI (Hegde, J.) 33
A
validity could not be tested 011 the basis of the provision of the 1949
Act. Tkis interpretation advances public interest because otherwise
all ejectment suits which had been instituted before the transfer of
territories had been effected would automatically fail for non-compliance of s.9 of the 1949 Act, a law which was not in force in the transferred territory before their transfer. The legislature would not have
H
intended such a result. [28E-G]
(ii) The liability to pay reasonable compensation for the structures
rut up by the tenant arises under the proviso to cl.(iii) of s,9(l)(b).
That proviso imposes the liability to pay reasonable compensation for
the structures put' up only when the termination of the tenancy is made
under cl.(iii) of s.9(1)(b) and not otherwise. As the termination of
the tenancy in the present case was not made under that provision
the
C
question of paying compensation did not arise, [28H-29B]
C1v1L APPELLAfE JURISDICTION : Civil Appeal No.
1973 of 1966.
Appeal from the Judgment and decree dated August
30, 1965 of the Calcutta High Court in Appeal from AppelD late Decree No.

## Text

22
CHIRANJI LAL KHAITAN & ORS.
\'.
MOTi LAL SARAOGI
August 4, 1971
[K. S. HEGDE AND A. N. GROVER, JJ.)
Bihar & West Bengal (Transferred Territories) Act. 1956-Wesl
!8,ngal Transferred Territories (Assimilation of Laws) Act, 1958West Bengel Non-Agricultural Tenancy Act, 1949-Suit for eject111e111
·of' tenant filed in Bihar lerritory after notice under s. 106 of TP. ActSuit decreed-Appeal pending in Patna High Court-Territory transferred to West Bengal-Appeal transferred to Calcutta High Court
-Suit whether liable to he dismissed for want of six months' notice
.under s. 9(1J(h)(iii) of 1949 Act-Section whether made applicable hr
s. 88 of that Act-Effect of s.3(2) of 1958 Act-No compensation for
.superstructures payable when tenancy not terminated under s. 9(I)(b)(iiil.
The plaintiff (predecessor-in-interest of the appellants) leased a
plot of land then situate in Bihar State to the defendant by oral lease
in 1943. In 1947 without the plaintiff's knowledge the defendant
built certain superstructures on the land. In 1948 the plaintiff asked
him to remove the structures. On his failure to do so the plaintiff in
'September, 1948 gave him a notice to quit under s.106 of the Transfer
of Property Act Thereafter he filed a suit which was decreed by the
trial court in 1952. The first appellate court affirmed the decree. The
.defendant's second appeal was pending in the Patna High Court when
the area in question was transferred to West Bengal. Under the
provisions of the Bihar & West Bengal (Transferred Territories) Act.
1956 the said appeal was transferred to the Calcutta High Court In
1958 the West Bengal Legislature enacted the West Bengal Transferred
Territories (Assimilation of Laws) Act, 1958. The Calcutta High
Court in 1965 set aside the decree and dismissed the plaintiff's suit
because six months' notice as required under s.9(1 )(b}(iii) of the West
Bengal Non-Agricultural Tenancy Act, 1949 had not been given.
According to the High Court s.9 was made applicable by s.88 of the
Act which was in wide terms.
With certificate appeal against the
judgment of the Calcutta High Court was filed in this Court. Allowing the appeal,
HELD : (i) The provisions of the 1949 Act did not apply to the
A
B
c
D
£
·'transferred terrirories' on their own force.
They were extended to
G
these territories under the provisions of 1958 Act. Section 3 of that
Act while repealing the laws that were in force in the 'transferred territory' and extending the laws that were no force in the rest of West
Bengal saved the previous operation of the existing laws so repe~led and
further saved anything done or suffered under those laws.
[28C-E]
In other words because of cl.(a) of the proviso to s.3(2) acts duly
done under the repealed Jaws are protected. The quit notice given
·under 5.106 of the Transfer of Property Act by the plaintiff was an act
•duly done under a repealed law and was therefore protected. Its
H
•
•
CHIRANJI LAL KHAITAN v. MOT! LAL SARAOGI (Hegde, J.) 33
A
validity could not be tested 011 the basis of the provision of the 1949
Act. Tkis interpretation advances public interest because otherwise
all ejectment suits which had been instituted before the transfer of
territories had been effected would automatically fail for non-compliance of s.9 of the 1949 Act, a law which was not in force in the transferred territory before their transfer. The legislature would not have
H
intended such a result. [28E-G]
(ii) The liability to pay reasonable compensation for the structures
rut up by the tenant arises under the proviso to cl.(iii) of s,9(l)(b).
That proviso imposes the liability to pay reasonable compensation for
the structures put' up only when the termination of the tenancy is made
under cl.(iii) of s.9(1)(b) and not otherwise. As the termination of
the tenancy in the present case was not made under that provision
the
C
question of paying compensation did not arise, [28H-29B]
C1v1L APPELLAfE JURISDICTION : Civil Appeal No.
1973 of 1966.
Appeal from the Judgment and decree dated August
30, 1965 of the Calcutta High Court in Appeal from AppelD late Decree No. 1033 of 1956.
V. S. Desai, Krishna Sen and B. P Maheshwari, for
the appellants.
D. N. Mukherjee and A. G. Ratnaparkhi, for respondent
E
No. l(a).
The Judgment of the Court was delivered by
Hegde,J.--This appeal by certificate arisesfromthedecision of the Calcutta High Court in its appellate decree No.
I 033of1956. The appellants are the legal representatives
F of the original plaintiff ChiranJi Lal Khaitan. The plaintiff was the owner of the suit property. According to the
plaint case, .the plaintiff leased out the property described
in Sch. III to the plaint, a vacant plot to the defendant in
June 1943 on a monthly rental of Rs. 20/-. It was an oraI
lease. The defendant took on lease. that property for the
G · purpose of carrying on his motor business. But in the year
1947 without t!J.e plaintiff's knowledge the defendant constructed several. structures on the land. In 1948 the plaintiff asked him to remove those structures but the defendant diqnot comply with that demand, hence in September
'
. H 1948, the plaintiff served on him a notice to quit determin-
~- •
ing the tenancy with effect from the 1st Nov~mber, l948.
As the defendant did not surrender possession of the property, the plaintiff instituted the suit from which this appeal
3~M 1245 Sup CI/71
24
SUPREME COURT REPORTS
[1972) I S.C.R.
arises on January 3, 1940 in the court of Munsif at Purulia.
A
At the time of the institution of the suit, the suit property
wa5 within the limits of the State of Bihar. The defendant
resisted the suit on various grounds. The learned ·trial
judge rejected all those grounds and decreed the· suit in
May, 1952, as prayed for and direc'ed the defendant to deB
liver vacant possession of the suit plot after removing the
structures put up by hint The decree of the trial court was
affirmed by the !st appellate court on July 1(1952. Meanwhile in 1956, some of the bJrder areas of the Bihar State
were transferred to the State of West Bengal as a result of
the amendment of the Constitution. One of the areas that c
stood transferred to the State of West Bengal is that concerned in the present litigation. The ttansfer in question.
took place on November 1, 1956. The defendant filed a
second appeal against the aforementioned decree in ; he
High Court of Patna on September 7, 1956 and the sa:nc
wa5 admitted by the High Court on September 10, 1956.
c}
That appeal stood transferred to the High Court of Calcutta
under the provisions of the· Blhar and West Bengal Tran:efer of Territories Act, 1956, the Act under which the transfer
of territories mentioned earlier took place. Part VH of that
Act provided that the law then in force in the transferred
territories Wa5 to continue until otherwise provided by the
£
competent legislature or other co.m.petent authority. Jn 1958
the West Bengal legislature enacted the West Bengal Transferred Territories (Assimilation of.Laws) Act, 1958 (to be
hereinafter referred to a"l the '1958 Act'). That Act came
into force on July l, 1959. The second appeal filed by the
F
defendant which had stood transferred to the Calcutta High
Court came up for hearing before that court on August 10,
1965. Before the High Court the defendant's Counsel
pressed for decision only two points viz. :
(I) That the plaintiff's claim is barred by
equitab'.e estoppel and
G
(2) the suit is liable to be dismissed under
s. 9 read with s. 80' of the West Bengal Non·agricukural Tena!lCy Act, 191f9 (to be hereinafter referted' to a5 the '1949' Act).
The High Court rejected the first co11tention. Agreeing }I
with the courts below, it came to the cortclttsitm. that there
is no reliable·evidence to show that the structures in question
}
CHIRANJI LAL KHAITAN v. MOT! LAL SARAOGI (Hegde, }.) . 25
A were put up either with the consent or knowledge of the
plaintiff. But it a::cepted the second contention advanced
on b~half of the defendant and dismissed·the suit. ·Hence
this appeal.
All the courts bdow have concuri~ntly come to the.
B conclusion that the defendanL has failed to establish his
plea of equitable estoppel. That conclusion is hased on
findings of fact. We see no (reason tO review those
findings.
'
The only question that we have to consider is whether
c the High Court was right in holdllg that the suit for ,ejectment ought to fail fof non-complilmce of s. 9(l)(b)(iii):
The High Court held that the plaintiff having failed, to give
six months' notice b;!fore instituting the suit as required by
the aforesaid provision, the suit is liable to be dismissed.
0
It is urged on behalf of the appellants that s. 9 of the '1.949'
Act is not applicable to th~ facts of the case.
, .._
Before instituting the suit for ejectment the plaintiff
I
•
had given a notice to quit under s: 106 of the Transfer of
Property Act, the governing provision, at the time of the
institution oLthe suit. It was not disputed that the notice
E to quit in question at the time it was given was a valid
notice. Therefore all that we have to see is whether because of the provisions of the '1949 Act' read with the provi
sions ofthe·'l958 Act', the suitwhich was validly instituted
has ceased' to be maintainable.
"
We Have earlier seen that under the provisions of the
Bihar and West Bengal (Transfer of Territoti~s) 'Act, 1956,
the existing laws were continued till appropriate: provisions
are made by the concerned legi;latures. Therefore s. 106
of the Transfer of Property Act continued to be in force in
the areaconeetned till the.·'1958 Act'-cameinto force. SccG
tion 3 of that Act provides :
H
"(n ·All •State laws wbich,.hrimediately before
the appointed, day, extend to, or-are nof in· force
in;.the State of West Bengal,.burdo not extend to,
or are oot in force in, the taru;ferred' territories
shall ·.as· from that· day, euend to or; as the caes
may be, come:i11to force in the transferred territories.
26
SUPREME COURT REPORTS
(1972] l S.C.R
Provided that the State Jaw specified in Schedule I shall extend to the transferred territories
subject to
the amendment specified in that
.Schedule;
A
(2) All State laws which, immediately before
the appointed day are in force in the whole or any
R
part of the transferred territories but not in the
rest of West Bengal shall, on that day, stand repealed in the transferred territories :
Provided that such repeal shall not affect :
(a) the previous operation of any State Jaw
so repealed or anything duly done or suffered
thereunder ; or
(b) any right, privilege, obligation, or liability acquired, accured or incurred under any
State Jaw so rerealed ; or
'(c) any renalty, forfeiture or punishment
incurred in respect of any offence ccrnmitted
against any State· Jaw so repealed ; or
(d) any investigation, legal proceeding or
remedy in respect of any such right, privilege,
obligation, liability, penalty, forfeiture or punishment as aforemid ;
and any such investigation, legal proceeding or
remedy may be instituted, continued or enforced
and any such penalty, forfeiture or punishment
may be impmed, as if this Act had not been
passed.; ...... ·
(The remaining portion cf the section is not
relevant for our present .purporn'.)
c
D
E
F
1he expression "State Jaw" is defired· thus
G
in s. 2(b) :
" "State Jaw" means so mudi of any ·enactment, ordinance or regulation as ·relates to .any
of.the matters enumerated in Lists II and III.in the
Seventh Schedule tci the Constitution and include
any order, by~law, r-ule, scheme, notification or
other instrument having the force of law".
H
{
A•
fl
F
,-•
Clill(AN,Jl LAL !;l!AlTAN l'. ll!Ol'I LAL SARAOG! (Hegde, J,) ;; 7
One of the statutes that stood extended to the transferred territories under the '1958 Act' is the '1949 Act'.
Section 9(l)(b )(iii) of that Act provides :
"(!) Notwithstanding anything contained iti
any other law for the time being in force or in any
contract if any non-agricultural land has been held
for a term of more than one year but less than
twelve years-
(b) without a lease in writing
(c) , . " .. "
then the tenant holding such non-agricultunit
land shall be liable to ejectment on one or more
of the followinu 11round> and not otherwise
namely ;
-
-
(iii) on the ground that the tenancy has been
terminated by the landlord by six months' notice
in writing expiring with the end of a year of the
tenaqcy served on the tenant in the prescribed
inanner in the case of tenancies of the class specified in clause (b) ;
Provided that a tenant shall not be liable to
cjectment on the ground
specified in clause
(iii) except on payment of such reasonable compensation as may be agreed upon between the landlord and the tenant or if they do not agree, as
, may be, determined by the Court on the application of the landlord or such tenant.
The only other relevant provision is section 88 of that
\ct which says :
·
·''The provisions of this Act shall have effect
in respect of all suits, appeals or proceedings
111cludtng proceedings in execution for cjectment
of a non-agncultural tenant which at:e pending
at the date of commencement of this Act. •
!he contention based on s. 9(l)(b)(iii) was taken fry
ii tl.1c hrst t11ne rn the High Court of Calcutta. The H i:oi1
Court as mentioned earlier has accepted that contentil;i1,
lf s. 9 reaj withs. 88 of p~e '_19.49 Act' governs this appc.;1
ihen undoubtedly the pla111ti!T s sutl has to fail.
But i:1-,.:
28
SUPREME COURT REPORTS
ll~/Ljl S.C.R.
question is "Whether those provisions are not subject to
A
s. 3 of the '1958 Act'? This question has not been considered by the High Court. The High Court was greatly
impressed by the width of s. 88 of the '1949 Act'.
Read
by itself there is no doubt that that provision makes applicable all the provisions of the '1949 Act' to all suits, appeals B
or proceedings including proceedings in execution for ejectment of non-agricultural tenant which was pending at the
· time of the commencement of that Act. There is no dispute
that the plaintiff has not complied with the requirements
of s. 9(l)(b)(iii) of that Act. Therefore if the plaintiff was
required to comply with the provisions of the '1949 Act' in c
all respects, he having not complied with the same, the suit
ought to fail. But then, the provisions of the '1949 Act'
did not apply to the 'transferred territories' on their own
force. They were extended to those territories under the
provisions of the '1958 Act'. Therefore their application
is subject to the conditions laid down by the '1958 Act'.
D
As seen earlier s. 3 of that Act while repealing the laws that
were in force in the 'transferred territory and extending the
la~s that were in force in the rest of West Bengal -saved
the previous operation of the existing laws so repealed and
further saved anything d~ly done or suffered under those
laws. In other words because of cl. (a) of the proviso to
E
s. 3(2), acts duly done under the repealed laws are protected.
Hence the quit notice given under s .. 106-of the Transfer of
Property Act by the plaintiff was an act duly done under a
repealed law. That act is protected. Its validity cannot be
tested on the basis of the provisions of the ~1949 Act'.
This is plain from the language of s. 3(2) of the '1958 Act'.
F
That interpretation also advances public interest. Otherwise all ejectment suits which had been instituted before the
transfer of territories had been effected would automatically fail for non-compliance of s. 9 of the '1949 Act', a law
which was not in force in the transferred territories before
G
their transfer. The legislature would not have intended such
a result.
If the plaintiff was not required to comply with requirements of s. 9(1 )(b )(iii) of the '1949 Act' -as we think he was
not-then the plaintiff is not liable to pay any compen~aH
tion for the structures put up by the defendant. The liability to pay reasonable compensation fo~ the. stru?~.ures
put up by the tenant arises under the proviso to cl. (111) of
'
-
;
i
CHIRANJ! LAL KHAITAN V, MOT! LAL SARAOG! (Hegde, !.) 29
A s. 9(1)(b)·. That proviso imposed the liability to pay reasonable compenrntion for the structures put up only when the
termiration of the tenancy is wade under cl. (iii) of s.
9(l)(b) and not otherwise. As the termi11ation of the
tenancy was not made under that provision. the question
8
of paying compensation does not arise.
In the result this appeal is allowed. judgment and
decree of the Calcutta High Court are set aside and that
of the trial court as affirmed by the first appellate court i~
;
restored.
Parties to bear their own costs in this Court and
in the High Court.
c
G.C.
Appeal alloll'ed.