RANGANAYAKI AMMAL Vs. M. CHOCKALINGAM

JUDGEMENT

(1.) PETITIONER Ranganayaki Ammal has been convicted under Section 7(2)(a) of the Madras Buildings (Lease and Rent Control) Act, 1960, read with Section 33(1) of the said Act, hereinafter referred to as the Act, and sentenced to pay a fine of Rs. 25 in default simple imprisonment for five weeks. The finding of the Fifth Presidency Magistrate is that the agreed rent was Rs. 25 per month and that the petitioner committed the offence by demanding a higher rent of Rs. 34 per month. Section 7(2)(a) of the Act is as follows:

(2.) THE matter is so free from doubt that it does not really require any discussion' of the first principles or decisions. Under Section 105 of the Transfer of Property Act, a lease of immovable property is defined as a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. In the same section it is stated that the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent. Thus, ' premium ' is defined in Section 105 of the Transfer of Property Act as the price paid or promised for a lease. In Shorter Oxford English Dictionary, Volume II, Second Edition, at page 1570 ' premium ' has been defined as a reward given for some specific act or as an incentive; a price. In a note under the definition it is stated that if no premium were allowed for the hire of money, few parsons would care to lend it. In Wharton's Law Lexicon, Fourteenth Edition, at page 791 ' premium ' is defined as a consideration; something given to invite a loan or a bargain; the consideration paid to the assignor by the assignee of a lease, etc. In Vithal Krishnaji Mvendkar v. Parduman Ram Singh, (1963) M.L.J. 517 it is stated that the word ' premium' means any amount paid for the purpose of getting a lease. It was held in that decision that if donation has been received in respect of the granting of the lease and not as a free donation for the advancement of the purposes of the Sangh, it will come within the expressions 'premium' or ' consideration ' in Section 18 of the Bombay Rents, Hotel and Lodging House Rates Control Act. The word ' premium ' has been considered in Abdul Rahim v. State, I.L.R. (1961) Mad. 1243 It was pointed out in that decision that the scope of the words 'other like sum' has to be understood in the light of the doctrine of ejusdem generis. It was held in that decision that the deposit of a large sum of money free of interest, which was liable to be returned at the end of the term of lease, is not a ' premium.' It is unnecessary to consider the correctness of this view in this case. But it is clear from what I have staled that there is a clear distinction between ' rent' on the one hand and ' premium' or ' other like sum ' on the other.

(3.) UNDER Section 6 of Madras Act XV of 1946 the landlord was prohibited from receiving anything in excess of fair rent and any violation was made punishable under the said Act. There was no provision in that Act corresponding to Section 7(2) of the present Act which was introduced only by Madras Act VIII of 1951 amending Madras Act XXV of 1949. The demand for higher rent alleged to have been made by the petitioner is not a demand for ' premium ' or ' other like sum ' within the meaning of Section 7(2)(a) of the Act and the conviction of the petitioner cannot therefore be sustained.