DINA

THE FINANCIAL COMMISSIONER, PUNJAB,

CHANDIGARH AND ORS.

DECEMBER .'i, 1995

[K. RAMASWAMY, FAIZAN UDDIN AND B.N KIRPAL, JJ.]

Pepsu Tenancy and Agricultural Lands Act as amended by Act No. 15156-Sections 7, 7A & ~Tcnnination of tenancy--Tcnant shall hold land C for a minimum tenn of three year.i-Expiry uf three years' tenure-Whether tenant is automatically liable to be ejecled-Held, Mr-Tenant would be liable to t:jectn1ent onv on proof of nne or soni!! or all conditions nientioned in Sec. 7 or Sec 7A.

The appellant-tenant wa• sought to be ejected u/s 8 of the Pepsu D Tenancy & Agricultural Lands Act, on the round !hat the perrnd of three years of the lease had expired and that, therefore, he was liable to be ejected. The arder of evictiqn was confirmed in appeal as well as in writ petition filed by the appellant. This appeal by special leave had been filed against the decision of the High Court.

E The question raised for determination was whether the landlord, after expiry of three years' lease gets right of ejectment of a tenant u/s 8 without recourse to the provisions of sections 7 and ~A of the Act.

The appellant submitted that if the landlord seeks ejectment of the F tenant, he has to satisfy conditions enumerated in Sections 7 and 7 A and on expiry of three years, the tenant is not automatically liable to be ejected, unless he commits any one of the contraventions mentioned in section 7 or the landlord requires the land as enumerated in Section 7 A or the Act.

G The respondent landlord contended that the object of the Amendment Act is not only to give protection to the tenant and small land holders to augment their holding but also to give right to the small tenure holders to have the tenant ejected irrespective applicability of all or any of the provisions enumerated in section or section 7 A of the Act.

H Allowing the appeal, this Court 244

HELD : The object and reasons of the Pepsu Tenancy & Agricultural A Lands Act enumerates twin purposes, namely to give minimum period of tenancy and to protect the tenants against unreasonable eviction and fix for allotees a higher limit for reservation of land for personal cnltivation.

These objects are sought to be achieved by Section 8 and Section 7-A respectively. Section 8 accords solitary protection to the tenant of mini- B mum tenure of three years. It says that subject to the provisions of Section 7, every tenant admitted after the commencement of the Pepsu Tenancy and Agricultural Lands Act, (Second Amendment) Bill, 1956, shall hold land for a minimum term of three years. The object, thereby, clearly indicates that the tenant shall hold the land for a minimum term of three C years but such holding should be subject to his abiding the provisions of Section 7 which enumerates diverse conditions subject to which tenancy may be terminated by the landlord. Section 7-A gives additional grounds to terminate the tenancy in the cases enumerated thereunder.

Though section 8 gives right to the tenant of the fixity of tenure of minimum three years, it would be subject to the conditions enumerated in Section 7. If a tenant commits any one or some or all the contraventions enumerated in Section 7, despite the fact that section 8 guarantees minimum term of three years, he is liable to be ejected.

Though minimum three years tenancy right is protected, it casts corresponding duty on the tenant to abide by law mentioned in section 7.

Equally landlord is entitled to avail of the benefit under Section 7 A to have the tenant ejected. Otherwise, a tenant may cause damage to the demised land and yet remain in occupation of the land for three years which is inconsistent with the object of Section 7 and 8. But on expiry of three years' tenure, a tenant is not automatically liable to be ejected or merely because the landlord happens to hold lesser holding or on any other ground. The tenant would be liable to ejectment only on proof

of one or some or all the conditions mentioned in Section 7 or 7-A are proved by the landlord to the satisfaction of the competent authority/of- G ficer. If the landlord wants to avail of the right under section 7-A, he necessarily has to prove compliance of the conditions enumerated in section 7 A and have the tenant ejected on proof of the grounds enumerated therein. Accordingly, de hors Section 7 and 7-A Section 8 does not give any independent right to the landlord to have the tenant H

A ejected on mere expiry of three years' term mentioned in Section 8.

(250-B-H, 251-A-C)

Bhartu v. Randhir Singh & Ors., (1985] 2 SCR 638, partly overruled.

Piara Singh v. Ihe Financial Commission, Revenue, Punjab, Chan- B digarh & Ors. AIR (1978) Punjab 76, overruled.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1108 of 1982.

From the Judgment and Order dated 17.1.80 of the Punjab Haryana C High Court in C.W.P. No. 2349 of 1967.

H.K. Puri for the Appellants.

K. C. Dua for the Respondents.

D The following Order of the Court was delivered :

By order dated July 28, 1992, a Bench of two Judges referred the matter to a Bench of three Judges doubting the correctness of the decision in Bhal'tll v. Randhir Singh & Ors., [1985] 2 SCR 638. The admitted facts E are that the appellant-tenant was sought to be ejected by petition dated January 29, 1966 form 47 Bighas 13 Biswas situated in village Burj Baghelsinghwala, Distt. Sangrur on the ground that the period of three years of the lease had expired by that date and that, therefore, he was liabk to be ejected. The Assistant Collector Grade I by order dated July 30, 1966 ordered ejectment of the appellant under S.8 of the Pepsu Tenancy & F Agricultural Lands Act as amended by Act No. 15/56, (for short "the

Amendment Act"). It was confirmed on appeal. When it was questioned in writ petition, the learned single Judge following the Full Bench decision of the High Court in Piara Singh v. 171e Financial Commissioner, Revenue, Punjab, Chandigarh & Ors., AIR (1978) Punjab 76 held that after expiry of G three years, under Section 8 the appellant is liable to ejectment. Thus this appeal by special leave.

The only question is whether the landlorrl, after expiry of three years' lease gets right of ejectment of a tenant, under Section 8 without recourse to the provisions of Sections 7 and 7 A of the Act. Section 7, 7 A and 8 of H the Act read as under :

"7. Termination of tenancy. • (1) No tenancy shall be terminated A except in accordance with the provisions of this Act or except on any of the following grounds, namely :

(a) (Omitted by Pepsu Act No. 15 of 1956).

(b) that the tenant has failed to pay rent within a period of six B months after it falls due :

Provided that no tenant shall be ejected under this clause unless he has been afforded an opportunity to pay the arrears of rent within a further period of six months from the date of the decree C or order directing his ejectment and he has failed to pay such arrears during that period;

(c) that the tenant, not being a widow, a minor, an unmarried woman, a member of the Armed Forces of the Union or a person incapable of cultivating land by reason of physical or mental D infirmity, has after commencement of the President's Act, sublet without the consent in writing of the landowner, the land comprising his tenancy or any part thereof;

( d) that the tenant has, without sufficient cause, failed to cultivate personally such land, in the manner and to the extent customary E in the locality in which such land is situated;

( e) that the tenant has used such land or any part thereof in a manner which is likely to render the land unfit for the purpose for which it was leased to him;

(!) that the tenant, on demand in writing by the landowner has refused to execute a Kabuliyat agreeing to pay rent in respect of his tenancy in accordance with the provisions of ss.9 and 10.

7(2) (Omitted by Pepsu Act No. 15 of 1956).

7-A. Additional ground for termination of tenancy in certain cases:

(1) Subject to the provisions of sub-ss. (2) and (3), a tenancy subsisting at the commencement of the Pepsu Tenancy and Agricultural lands (Second Amendment) Act, 1956, may be terminated on the following grounds in addition to the grounds H

SUPREME COURT REPORTS [1995] SUPP.6S.C.R.

specified in s.7, namely :

(a) that the land comprising the tenancy has been reserved by the landowner for his personal cultivation in accordance with the provisions of Chapter II;

(b) that the landowner owns thirty standard acres or less of land and the land fells within his permissible limit;

Provided that no tenant other than a tenant of a landowner who is member of the Armed Forces of the Union shall be ejected under this sub-section -

(i) from any area of land if the area under the personal cultivation of the tenant does not exceed five standard acres, or

(ii) from an area of five standard acres, if the area under the personal cultivation of the tenant exceeds five standard acres, until he is allotted by the State Government alternative land of equivalent value in standard acres.

(2) No tenant, who immediately preceding the commencement of the President' Act has held any land continuously for a period of twelve years or more under the same landowner or his predecessor in title, shall be ejected on the ground specified in sub-s.(1) -

(a) from any area of land, if the ar ""under the personal cultivation of the tenant does not exceed fifteen standard acres, or

(b) from any area of fifteen standard acres, if the area under the personal cultivation of the tenant exceeds fifteen standard acres;

Provided that nothing in this sub-section shall apply to the tenant of a landowner who, both at the commencement of the tenancy and the commencement of the President's Act, was a widow, a minor, an unmarried woman, a member of the Armed Forces of the Union or a person incapable of cultivating land by reason of physical or mental infirmity.

Explanation. - In computing the period of twelve years, the period during which any land has been held under the same landowner

DINA v. F1NANCIAL COMMNR., PB. 249

or his predecessor-in-title by the father, brother or son of the A tenant shall be included.

(3) For the purpose of computing under sub-ss.(1) and (2) the area of land under the personal cultivation of a tenant, any area of land owned by the tenant and under his personal cultivation shall be included.

x x x x x x

8. Security of tenure to certain tenants. - Subject to the provisions of s.7, every tenant admitted after the commencement of the Pepsu Tenancy and Agricultural Land (Second Amendment) Act, 1956, shall hold land for a minimum term of three years.

Provided that nothing herein shall apply to the tenant of a person who is a widow, a minor, an unmarried woman, a member

of the Armed Forces of the Union or a person incapable of D cultivating land by reason of physical or mental infirmity."

The contention of Mr. H.K. Puri, learned counsel for the appellant is that Section 8, in the light of the Statement of Objects and Reasons for introducing the Amendment Act, gives protection of minimum tenure to the tenant. If the landlord seeks ejectment of the tenant, necessarily, he has to fall back upon satisfying conditions enumerated in Sections 7 and 7-A.

On expiry of three years, the tenant is not automatically liable to be ejected, unless he commits any one of the contraventions mentioned in Section 7 or the landlord requires the land as enumerated in Section 7-A of the Act.

Shri Dua, the learned counsel appearing for the landlord contended that the object of the Amendment Act is not only to give protection to the tenant and small land holders to augment their holding but also to give right to the small tenure holders to have the tenant ejected irrespective of applicability of all or any of the provisions enumerated in Section 7 or Section 7-A of the Act. The question, therefore, is whether the interpretation given to Section 7, 7-A and 8 by this Court is correct in law.

The objects and reasons have been enumerated thus :

"The necessity for introducing certain agrarian reforms, particularly with a view to protecting the tenants against eviction and fixing

for allotees a higher limit for reservation of land for personal H.

cultivation, was being felt for sometime past. This Bill seeks to achieve the object by amending the Pepsu Tenancy and Agricultural Lands Act, 1955."

The object and reasons enumerates twin purposes, namely, to give B minimum period of tenancy and to protect the tenants against unreasonable eviction and fJX for allotees a higher limit for reservation of land for personal cultivation. These objects were sought to be achieved by section 8 and Section 7-A respectively. Section 8 accords solitary protection to the tenant of minimum tenure of three years. It says that subject to the provisions of Section 7, every tenant admitted after the commencement of C the Pepsu Tenancy and Agricultural Lands Act, (Second Amendment) Bill, 1956, shall hold land for a minimum term of three years. The other part of the provision is not necessary for the purpose of this case and so we need not again produce it. The object, thereby, clearly indicates that the tenant shall hold the land for a minimum term of three years but such holding D should be subject to his abiding the provisions of Section 7 which enumerates diverse conditions subject to which tenancy may be terminated by the landlord. As seen, Section 7-A gives additional grounds to terminate the tenancy in the cases enumerated thereunder. We are not concerned with the effect of the provisions contained in Section 7-A.

E It was contended in the High Court that despite the contravention of any one or all the grounds provided in Section 7, a tenant is entitled to remain in a fJXed tenure for three years which was rightly rejected. It does not appear to be a correct reading of Section 8. Though Section 8 gives right to the tenant of the fixity of tenure of minimum three years, it would F be subject to the conditions enumerated in Section 7. If a tenant commits any one or some or all the contraventions enumerated in Section 7, despite the fact that Section 8 guarantees minimum term of three years, he is liable to be ejected. In other words, though minimum three years' tenancy right is protected, it casts corresponding duty on the tenant to abide by law mentioned in Section 7. Equally landlord is entitled to avail of the benefit G under Section 7A to have the tenant ejected. Otherwise, as stated by this Court in Bhartu's case, a tenant may cause damage to the demised land and yet remain in occupation of the land for three years which is inconsistent with the object of Section 7 and 8. This Court in Bhanu's case (supre) considered the effect of it and held that the tenant is liable to complv with H the provisions of Section 7. To that extent, we are in respectful agreement

DINA v. FINANCIALCOMMNR., PB. 251

with the ratio in Bhartu's case. But on expiry of three years' tenure, a tenant A is not automatically liable to be ejected or merely because the landlord happens to hold lesser holding or on any other ground. The tenant would be liable to ejectment only on proof of one or some or all the conditions mentioned in Section 7 or section 7-A are proved by the landlord to the satisfaction of the competent authority/officer. If the landlord wants to avail B of the right under Section 7~A, he necessarily has to prove compliance of the conditions enumerated in Section 7A and have the tenant ejected on proof of the grounds enumerated therein. Accordingly, we are of the considered view that de ho1' Sections 7 and 7-A, Section 8 does not give any independent right to the landlord to have the tenaot ejected on mere expiry of three years' term mentioned in Section 8.

We are of the considered view that law was not correctly laid down in Bhwtu's case and majority in Piara Singh's case.

The appeal is accordingly allowed. The orders of the tribunals below directing ejectment of the appellant is set aside. The writ petition stands D allowed and the rule nisi is made absolute. But, in the circumstaoces, parties are directed to bear their own costs.

R.A.

Appeal allowed.