C STREERAMULU NAIDU Vs. TRAMASWAMI MUDALIAR

JUDGEMENT

(1.) This is an appeal from a judgment of Mr. Justice Coutts Trotter in an action for specific performance, dismissing the plaintiff s suit without calling on the defendant. Mr C.V. Ananthakrishna Aiyar has argued that the evidence for the plaintiff made out a prima facie case. On the other hand Mr. V.V. Srinivasa Aiyangar for the 2nd respondent has contended that the learned Judge was wrong in admitting as evidence Exhibit A which he contended is an unregistered agreement for a lease and inadmissible for want of registration. He also argued that, as in it the terms of the contract between the parties have been reduced to writing, no other evidence can be given of the contract under Section 91 of the Indian Evidence Act. We are of opinion that these contentions must be upheld.

(2.) As regards the question whether Exhibit A amounts to an agreement for a lease, we think that the substance rather than the form of the document must be regarded.

(3.) It is not at all uncommon in this country for agreements to sell or to lease to take the form of a receipt for a deposit on account of purchase money or of an advance for rent. Agreements which took the form of a receipt have been held inadmissible in Narayanan Ghetty v. Muthiah Servai (1910) I.L.R. 35 M 63 : 21 M.L.J. 44, and Sreekishan Ghetty v. Kota Namalwarayya (1915) 29 I.C. 246, Exhibit A is in the following terms: "Received advance from C. Streeramulu Naidu or order Rupees one hundred only for giving 1 3/4 lease (which is explained by the evidence as a lease of 1 3/4 grounds) land of Mr. Rajagopalachariar after the expiry of the present lease to him for 25 years, rent at Rs. 3/8 month". The demised premises appear to be sufficiently capable of identification and the term and rent are also mentioned. On the whole, we have come to the conclusion that though in the form of a receipt, this document Exhibit A embodies the terms of an agreement to grant a lease on the terms therein mentioned, in addition to a receipt for a deposit of Rs. 100 an advance on account of rent.