(1.) This second appeal raises a nice point about rights of subrogation which a tenant of a building may claim against his landlord while seeking reimbursement through a Court of law of the municipal property tax which he has paid as occupier of that building. The question turns on a true construction of the relevant provisions of the Transfer of Property Act, 1882, and the Madras District Municipalities Act, 1920.
(2.) The tenant in this case was in occupation of a certain non -residential building within the municipal limits of Kumbakonam Town. He had been paying the municipal property tax on the building for some time. So far as the agreement of lease between him and his landlord was concerned, the liability for the rates had to be borne wholly by the landlord. Nevertheless the tenant was meeting the half -yearly demands from the Municipality for the property tax only in virtue of his statutory liability as occupier of the building. Upto a certain time, such payments by him to the municipality amounted to Rs. 956.86. Under the relevant statutory provisions relating to tax recovery by municipalities, the tenant was entitled to obtain reimbursement from his landlord of the amounts paid by him as tax for the property in his occupation. This reimbursement he was entitled either by way of adjustment against the rent due by him or otherwise.
(3.) In this case, before the tenant could fully adjust the payment of property tax against the rents accruing due, the landlord obtained an eviction order from the Rent Controller and took possession of the building from the tenant. As on the date of vacant possession, the tenant owed the landlord rent for the premises for some months, but they amounted only to Rs. 416. But this left a balance of Rs. 540.28 towards reimbursement of property taxes already paid by him for the property. Hence he sued the landlord for the amount, asking for a charge decree, directing the recovery of the amount from the landlord on a charge of that very property. He claimed the right to this relief as a subrogee from the Municipality which had a statutory charge over the property for the property tax due on it.