Case: Nai Bahu Vs. Ramnarayan and Others

A suit was filed by the appellant on February 17, 1959, for eviction of the respondents (tenants) from a three-storeyed premises. The tenants resisted the claim and trial proceeded in which, after the close of the plaintiffs case, the tenants examined two witnesses and the suit was adjourned for their further evidence to July 12, 1960. On that day a joint compromise petition was filed settling the matter. Statement of counsel on both sides was recorded by the court on the same day and an order was passed on the following day, namely, July, 13, 1960 and a decree was passed in terms of the compromise. Without referring to the details of the terms of compromise at this stage, it may be stated that the decree of eviction was executable only after five years.Five years passed. The appellant took execution on July 21, 1965. The execution was resisted by the tenants. They set up a plea of adjustment under Order 21, rule 2 Civil Procedure Code. The said objection was rejected by the court on December 10, 1966 An appeal against the said order was also rejected on July 13, . 1967.A second appeal by the tenants was dismissed by the High Court on September 27, 1968. Thus the first litigation regarding plea of adjustment of the decree terminated in the High Court on September 27 1968.Even so, the tenants had already opened another front of attack against the decree on July 17, 1967, by means of an application in the executing court while the earlier litigation in respect of adjustment of the decree was pending. By that application the tenants challenged the decree as a nullity and further objected that the decree incorporated a lease which, on account of non-registration, was invalid and therefore was not executable. The application was rejected by the executing court on July 20, 1967. The judgment debtor then approached the appeal court which also did not oblige and dismissed this appeal.Undaunted, the judgment-debtor filed a second appeal before the High Court of Madhya Pradesh and this time successfully. The High Court allowed the appeal and set aside the order. According to the High Court the main question for consideration in the appeal before it was "whether the terms of the decree, which was passed on the basis of a compromise between the parties, created a fresh tenancy and so inhibited the decree-holder from terminating it and taking possession of the demised premises otherwise than in accordance with the provisions of section 12 of the M.P. Accommodation Control Act". Answering the question in favour of the appellants (respondents herein the High Court held that "the terms of compromise created a new demise on different terms in regard to the premises which were not identical with the premises covered by the original lease". The High Court also held that the decree was passed in contravention of the provisions of the Act. The High Court also observed that "the compromise decree purported to create, as shown, a lease for five years" and was "ineffective" on account ofHigh Court refused to grant leave for Letters Patent Appeal and hence this appeal by special leave.

Court's reasoning:
Having examined the pleadings, the terms of the compromise as well as the statement of counsel of either party recorded by the trial court and the resultant order passed thereafter, we are unable to accede to the submission that the court did not apply its mind to the relevant question that was necessary to be considered at that stage at the time of passing theis true that a decree for eviction of a tenant cannot be passed solely on the basis of a compromise between the parties (see K. K. Chari v. R. N. Seshadri "([1973] 3 S..C.R. 691.). The Court is to be satisfied whether a statutory ground for eviction has been pleaded which the tenant ])as admitted by the compromise. Thus dispensing with further proof, on account of the compromise, the court is to be satisfied about compliance with the statutory requirement on the totally of facts of a particular case bearing in mind the entire circumstances from the stage of pleadings upto the stage when the compromise is effected.When a compromise decree is challenged as a nullity in the course of its execution the executing court can examine relevant materials to find out whether statutory grounds for eviction existed in If the pleadings and other materials on the record make out a prima facie case about the existence of statutory grounds for eviction a compromise decree cannot be held to be invalid and the executing court will have to give effect tois significant that in the Del hi Act intention to let separately for use as a residence or for commercial use or for any other purpose is expressly mentioned under section 2(g) thereof. The principle underlying the scheme for letting separately for different uses is reflected in the Second Schedule to the Delhi Act in both Parts A and B (see paras 3 to 5 both in parts A and B). The said differentiation of purpose for separate letting does not find such significant importance in the M.P. Act as has been found by this Court in the Delhiis clear that under the Delhi Act the scheme is significantly different from that of the M.P. Act. The definition of "premises" in the Delhi Act is a pointer. Under the M.P. Act a landlord can seek eviction of a tenant from a non- residential accommodation if he genuinely requires the same for his business purpose. But the position is not the same under the provisions of the Delhi Act where the landlord cannot ask for eviction of a tenant from the premises let for commercial use even if the former requires it bona fide for his own business purpose. The landlord may see k eviction of the tenant on other grounds but not on the ground of bona fide requirement for his own business under the Delhi Act. This brings out the difference between the scheme underlying the two Acts and Mr. Sanghi cannot call in aid the decision in Dr. Gopal Dass Verma (supra) in support of his submission. The High Court was not right in its conclusion that the decree was passed in contravention of the provisions of thealready pointed out this objection is untenable in view of the decision of this Court in Girdharilal (supra). The question would turn on the terms of the compromise. After a careful consideration of the terms of the compromise and the whole tenor of the compromise petition it is absolutely clear that there was no intention to create a lease between the parties. It is the dominant intention of the document which must guide the construction of its contents. In the recitals of the compromise petition in three places it is stated categorically that "the plaintiff shall be entitled to execute her decree against the defendants". There was therefore, no intention to create a lease with regard to any portion of the property although certain arrangements had been entered for the-intermediate occupation of a certain portion before vacating that portion after expiry of five years. The few alternations and improvements agreed upon by consent were merely an arrangement for vacating two floors and in order to vacate the remaining portion after using it for five years. There was no intention whatsoever to create a new lease. There is, therefore, no question of registration of the decree. The submission is devoid of substance. The High Court is, therefore, clearly wrong in holding that a lease was created by the compromise and that the decree was ineffective on account of non-registration.There is nothing in the M. P. Act to bar an eviction from a building if a non-residential accommodation is genuinely required not only for non-residential use but also a portion of it bona fide for personal residence. We are clearly of opinion that the compromise decree in this case is a lawful decree of eviction founded on permissible statutory ground and there are sufficient materials to show that the trial court , applied its mind and was satisfied that a valid decree under the M.P. Act could bep.m. as mesne profits to the appellant within the first week of the month due. Failure to pay mesne profits as aforesaid will enable theto execute the decree without reference to this Court and the stay of the decree will automatically stand vacated.