1968 (10) TMI 116 - SC - Indian Laws

Summary

Issues:
Interpretation of lease deed terms, Joint liability of lessees for rent payment, Application of limitation period for rent recovery, Applicability of Bihar Tenancy Act, Interest rate on arrears of rent.

Interpretation of Lease Deed Terms:
The lease deed clearly outlined the annual rent of Rs. 16,000 to be paid by the lessees jointly, specifying the individual shares of defendants 1 and 2. The provision indicated joint liability of the lessees for rent payment, and they were considered jointly and severally liable under Section 43 of the Indian Contract Act. The High Court's error in holding defendant 2 liable for only 5 annas share in rent was noted, as all lessees were jointly responsible for the entire rent amount.

Joint Liability of Lessees for Rent Payment:
Defendants 1, 2, 2(a), and 3 were held jointly and severally liable to pay Rs. 16,000 annual rent, with the plaintiffs entitled to Rs. 6,000 as their share. The lease deed clearly indicated the joint responsibility of the lessees for the rent, making them collectively liable for the payment. The High Court's decision to apportion the rent between defendants based on their shares was overturned, confirming their joint liability for the full amount.

Application of Limitation Period for Rent Recovery:
The High Court correctly allowed the defendant to raise the point of limitation, even though it was not initially pleaded in the written statement. Under Section 184 of the Bihar Tenancy Act, a suit beyond the limitation period is liable to be dismissed, irrespective of the plea. The absence of the limitation plea in the written statement did not prejudice the appellants, as no additional evidence could have been presented on this matter.

Applicability of Bihar Tenancy Act:
The lease deed granted forest rights only, allowing the lessees to utilize forest produce. The suit for rent recovery was governed by Article 2(b)(i) of Schedule III of the Bihar Tenancy Act, as it pertained to forest produce. The High Court's decision that the suit for rent for specific years was time-barred under the Act was upheld, citing relevant precedents supporting the application of the special limitation period.

Interest Rate on Arrears of Rent:
Section 67(1) of the Bihar Tenancy Act mandates simple interest on arrears of rent at 6 1/4% per annum, overriding any contractual stipulation. The High Court's ruling that interest was payable at the statutory rate was affirmed, ensuring the correct application of interest on the outstanding rent amount. The final decree directed the defendants to pay the rent and interest as per the Act, with proportionate costs awarded to the plaintiffs.