Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Transfer of Property Act 1882 – ss. 111(g) & 112 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Transfer of Property Act, 1882 (4 of 1882) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Transfer of Property Act, 1882 – ss. 111(g) & 112 – Sale of a portion of land – Allegation of breach of lease deed – The erstwhile Travancore-Cochin Government in 1953 auctioned certain properties – One ‘P.I’ offered his bid to an extent of 246.26 acres and took possession in the year 1955 – No lease agreement was entered between them – Then ‘P.I’ assigned the said property in favour of one ‘KKJ’ – Pursuant to such transaction, the State executed a lease deed dated 15.12.1979 in favour of ‘KKJ’ – ‘KKJ’ was representing a partnership firm – In 1983, ‘KKJ’ executed a sale deed and transfered an extent of 50 acres to one ‘R’ – Thereafter, the Partnership firm sought to rectify the defect of transferring a portion of lease land to ‘R’ – The said request was not considered – The Government by notice dated 19.02.1992 intimated the lessee about the order to terminate the lease – After the first round of litigation, again by the order dated 26.11.2004, termination of lease in respect of the entire 246.26 acres was confirmed – Writ petition – The Single Judge of the High Court did not interfere with the order terminating lease – However, the Division Bench of the High Court set aside the order of terminating lease – Before the Supreme Court, inter alia, it was contended that lessee had sought to rectify the default under clause 12 of the lease deed – Held: Clause 14 of the lease deed provided that lessee shall not be entitled to sublet or assign his interest in the said lease except with the prior permission in writing obtained with the lessor – Clause 12 of the lease deed indicates that the issue of notice is contemplated in the event of the lessee committing default and liberty to terminate the lease is exercised – The concession provided is to rectify the default before the notice is issued – The ‘default’ meaning is failure to fulfill the obligation, while ‘breach’ is an act of breaking a law, agreement or code of conduct – If the said distinction is kept in view, the breach if committed by sub-letting or assigning as provided in clause 14,the same would lead to its consequences and the liberty to remedy is not mandatory – Clause 12 contemplates that cause of termination will be default and permitting to remedy the same is only an indulgence to be shown – The reading of the lease deed as a whole would indicate that the right reserved to the lessor under clause 14 is independent of clause 12 and if breach of that nature occurs, it is irreversible and it will be taken to its logical conclusion unless the lessor waives its right – The sale deed executed by ‘KKJ’ in the year 1983 would indicate the intention of the parties and also the fact that possession was parted without consent of the lessor which was the clear breach of clause 14 – The breach was not of the nature contemplated for rectification as provided under clause 12 of the deed – Further, under clause 14, it does not matter as to whether the breach committed is by assigning a portion of the leased land or the whole when such interest was transferred without previous permission of the lessor – Therefore, the order passed by the Division Bench of the High Court is set aside. |
Judge | Hon'ble Mr. Justice Ajjikuttira Somaiah Bopanna |
Neutral Citation | 2021 INSC 442 |
Petitioner | The State Of Kerala & Ors |
Respondent | M/s Joseph & Company |
SCR | [2021] 11 S.C.R. 601 |
Judgement Date | 2021-09-03 |
Case Number | 5117-5118 |
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