NDLI: Karnani Industrial Bank, Limited Vs. The Province of Bengal and Others

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Transfer of Property Act (IV of 1882)
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 Dismissed
Headnote	Transfer of Property Act (IV of 1882), ss. 106, 116-Lease for a term-Acceptance of rent for further period before expiry of term-New tenancy--Necessity of notice ta quit-Lessee's property becoming property of lessor by failure to remove within time-In· junction against removal-Whether can be granted. The context in which the provision for acceptance of rent finds a place in s. 116 of the Transfer of Property &t shows that what is contemplated is that the payment of rent should be made at such time and in such manner as to. be equivalent to the land· lord assenting to the lessee continuing in possession. Where payment is made at a time when there was no question of the lessor assenting to the lessee's continuing in possession and neither party treated the payment as importing such assent the case does not fall within s. 116. A lease deed was executed on the 17th February, 1928, in respect of a land for a period of ten years from 24th February, 1928 the annual rent of Rs. 6,000 being payable in advance every year. In April, 1937, a cheque for Rs. 6,000, being the rent from 1st April, 1937, to 31st March, 1938, was sent by the lessee and accepted by the lessor : Held, that as the rent was paid before ~ expiry of the lease and neither party treated the payment of rent as importing assent on the part of the lessor to allow the lessee to continue in possession as a lessee after the .period of the lease, no new tenancy was created under s. 116 of the Transfer of Property Act. The· utmost that could be said was that by implied consent the period of the lease was extended up to the 31st March, 1938, and even then no notice under s. 106 of the Transfer of Property Act was necessary for terminating the lease.K. B. Capadia v. Bai Jerbai Warden and Another [1949) F.C.R. 262 distinguished,Where in accordance with the terms of a lease bricks and other materials manufactured by the lessee on the leased premises had become the property of the lessor as they had not been removed by the lessee within the period fixed by the lease : Held that the lessor was entitled to ask for an injunction restraining the lessee from removing the materials even though he was not in possession of the leased premises.
Judge	Hon'ble Mr. Justice Sir Saiyid Fazl Ali
Neutral Citation	1951 INSC 31
Petitioner	Karnani Industrial Bank, Limited
Respondent	The Province Of Bengal And Others
SCR	[1951] 1 S.C.R. 560
Judgement Date	1951-05-04
Case Number	58

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