H V RAJAN Vs. C N GOPAL

JUDGEMENT

(1.) The first respondent gave on lease to the appellant his cinema theatre known as "Sivananda Theatre" which was later known as "Moviland Theatre" by a registered lease deed dated September 2, 1946. Earlier, this same theatre was leased to respondent 2 on December 29, 1941, for five years commencing from March 1, 1942 ending with February 28, 1947. Clause 14 of the lease deed provided:

(2.) It will be noticed that after the registered lease in favour of the appellant was executed, respondent 2 was calling on respondent 1 to propose fresh terms for renewal, particularly in respect of the rent etc. In reply to the notice of September 16, 1946, issued on behalf of respondent 2, the Advocate of respondent 1 replied on September 25, 1946 that his client wishes to repeat that the lease will terminate on due date, that it is not open to renewal as desired by respondent 2, and that his client should vacate the premises and deliver possession. The next day a comprehensive notice was given by the lawyers of respondent 1 to respondent 2 pointing out that the original lease was with the States Engineering Company, and respondent 1 had no notice that the Company was dissolved. In view of what was said it was contended that the agreement to lease which was with the Company stood dissolved, and accordingly respondent 1 does not recognise respondent 2 as a partner of the Company or having any other rights and benefits. In these circumstances the Advocate of respondent 1 informed that it is impossible to enter into a fresh lease with respondent 2 for the reasons stated therein. i. e. for misbehavior, non-payment of rent, for neglecting to look after the property, for encroachments etc. etc. The Advocate for respondent 2 was also specifically informed by paragraph 16 of the notice that "the theatre has already been leased to Mr. H. V. Rajan who is to be put into possession of the property on the 1st of March 1947". Further correspondence ensued and ultimately on March 3, 1947, respondent 1 filed a suit being O. S. No. 112 of 1946 on the file of the Subordinate Judge, Bangalore, for eviction of respondent 2, for delivery of possession and for payment of arrears of rent with interest aggregating to Rs. 520/- together with costs, interest, mesne profits etc. To this suit plaintiff/appellant was not a party. While the suit was pending, the Mysore House Rent and Accommodation Control Order, 1948, was promulgated on July 1,1948 which was made applicable to cinemas. Under the above order, non-payment of rent was also one of the grounds for eviction. On March 31, 1949, the suit of respondent 1 was decreed and the Court directed the eviction of respondent 2 on the ground of termination of the lease and for non-payment of rent for which it gave a decree with interest.

(3.) Respondent 2 and respondent 1 filed separate appeals in the High Court being Appeals Nos. 217 of 1948-49 and 50 of 1949-50 respectively. When these appeals were pending respondent 1 executed a registered lease deed on August 16, 1950 in favour of respondent 2 purporting to be under a compromise. This lease deed was for 10 years in the first instance with an option to, extend it for 5 years and thereafter for another 5 years, on a monthly rental of Rs. 1800/-. Apart from this rent, respondent 2 was also to pay Rs. 45,650/- at the rate of Rs. 1100/p.m. from March 1, 1947 to August 16, 1950.