KONDA VENKATESWARIN Vs. VENKADARI VENKATA SUBBA RAO

JUDGEMENT

(1.) The defendant against whom a decree for eviction was passed by both the Courts below is the appellant in this second appeal. The problem posted by the learned counsel for decision is whether the lease of a site for the installation of a saw mill is a lease for manufacturing purposes terminable by the lessor or lessee by a six months' notice to quit under Section 106 of the Transfer of Property Act.

(2.) The facts are not in dispute. The respondent plaintiff leased a vacant site for the installation of a saw mill to the defendant on 11-7-1963 on an annual rent of Rs. 400/- for a period of five years. It was also further agreed between the parties that if the defendant wanted to continue the lease for the next five years, the defendant should pay an annual rent of Rs. 500/- and that at the end of ten years the defendant should put the plaintiff in possession of the vacant site. But even after the expiry of the stipulated period of ten years, the defendant failed to deliver vacant possession of the site in spite of several demands made by the plaintiff. Meanwhile the defendant also fell in arrears of rent. The plaintiff then issued the notice to quit, Ex. A-2, on 14-12-1974 and filed the suit on 1-2-1975. The main defence in the suit was that the notice to quit given on 14-12-1974 was not valid. It was claimed that the lease was for manufacturing purposes and, therefore, the notice to quit was invalid under section 106 of the Transfer of Property Act. Both the Courts below held that the notice issued on 14-12-1974 was valid. It is this conclusion that is assailed in this second appeal.

(3.) It is common ground that the lease of the vacant site was for the installation of a saw mill, The question, therefore, is whether such a lease can be said to be a lease for "manufacturing purposes" within the meaning of section 106 of the Transfer of Property Act. If the answer is in the affirmative, then the notice Ex. A-2 issued on 14-12-1974 must be found to be invalid under Section 106 of the Transfer of Property Act since that section make it obligatory on the part of the lessor to give a notice of six months to terminate a lease for 'Manufacturing purposes'.