TMI Blog1972 (9) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... period of ten years, that such a lease was for manufacturing purposes, and therefore, could not be validly terminated by a month's notice. The respondents, on the other hand, contended that the lease was by an unregistered document, and that it was not a valid lease by reason of the provisions of ss. 106 and 107 of the Transfer of Property Act. The Division Bench did not go into the question whether the lease was for manufacturing purpose,,, or not. However, the Division Bench felt that the appeal raised important questions as to the impact of s. 107 upon s. 106 of the Act, and there being so far no decision of this Court upon such a question referred the, appeal to a larger Bench. That is now the matter has come up before us. The premises with which we are presently concerned consist of an open piece of land adjoining Haines Road in the city of Bombay. Prior to 1963, the said piece of land belonged to a company called Sir Shapurji, Bharucha Mills Co. Ltd. In 1953, the said piece of land was purchased by Bharat Insurance Co. Ltd. It appears that in 1947 the said piece of land was leased to Allenbury Co. on a monthly rent of ₹ 1800/where the lessee kept a number of Ameri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed in the High Court against the judgment of the Shall Causes Court and confirmed by its Appellate Bench, also proceeded on the assumption that the relationship between the parties was that of landlord and tenant. All the three courts concurrently held that the tenancy, whatever its terms ware, was not satisfactorily proved to be for manufacturing purposes as alleged by the appellant-company and in the absence of any proof as to the term for which it was made, whether it was for ten years or from year to year, the notice terminating the tenancy and calling upon the appellant-company to deliver vacant possession, although it was a month's notice, was not an invalid notice and on that footing decreed the suit. In these circumstances, two questions were sought to be raised by Mr. Chagla. The first was that there being no dispute between the parties that the relationship between them was that of landlord and tenant and the respondents having accepted all along the said rent of ₹ 1800/- a month, the Court- must proceed upon the basis that the occupation of the premises by the appellant-company was in the., capacity as a tenant. According to him, if the appellant-company can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nent Editionof Words and Phrases. Vol. 26, 'manufacture' implies a change but every change is not manufacture and yet every change in an article is the result of treatment, labour and manipulation.But something more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use. The word 'manufacture ' saidAbbott, C.J., in R. v. Wheeler(2 B Ald. 349, cited in Stroud's Judicial Dictionary (3rd ed.) Vol. p. 1734.) has been generally understood to denote, either a thing made which is useful for its own sake and vendible as such, as a medicine, a stove, a telescope, and many others; or to mean an engine or instrument, or some part of an engine or instrument, to be employed either in themaking of some previously known articles or in some other useful purpose, as a stocking frame, or a steam engine for raising water from mines; or, it may perhaps, extend also to a new process to be carried on by known implements or elements 'acting upon known substances, and ultimately producing some other known substance but producing it in a cheaper or more expeditious manner, or of a better or more useful k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of an ailment or discomfort diagnosed by such a medical practitioner by his professional skill, and which mixture is normally incapable of being passed from hand to hand as a commercial commodity, the medical practitioner supplying the medicine cannot be said to be a manufacturer of medicine and the mixture can not be said to. be manufactured within the meaning of the notification. In all these cases the statute or the notification concerned did not furnish any artificial meaning to the expression 'manufacture' and the Court applied, therefore, the ordinary meaning as commonly understood to that expression. The expression 'manufacturing purposes' in s. 106, thus, means purposes for making or fabricating articles or materials by physical labour, or skill, or by mechanical power, vendible and useful as such. Such making or fabricating does not mean merely a change in an already existing article or material, but transforming,, it into a different article or material having a distinctive name. character or use or fabricating a previously known article by novel process. The two cases cited by Mr. Chagla, viz., Sedgwick v. watliey Combe, Reid and Co.( [1931] A. C.446 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m 1946 to 1950. Thereafter he became the managing director of the appellant-company. According to him, Allenbury Co. Ltd. had in 1948 purchased disposal vehicles which were stored for sale in the premises in question. The vehicles were in a damaged condition when they were purchased. In some cases chassis were missing or they were bent or broken; most of the parts were broken and missing. These used to be repaired and then sold. The company had put up a workshop where these vehicles were repaired, reconditioned and painted before, they were sold. The repairs, according to him, involved in some cases making of new bodies and new parts. For that purpose, the appellant company had to have in the workshop lathes, drill machines, velders etc. and had employed some 200 to 250 workmen. When the appellant company took over the business of Allenbury Co. Ltd. in 195051, there were in all 189 vehicles of different types in the suit premises. The working, he said, of overhauling, reconditioning and repairing these vehicles went on until 1957 when reconditioning of vehicles stopped presumably because the vehicles were sold out. The premises had on them a servicing station also with a trench ..... X X X X Extracts X X X X X X X X Extracts X X X X
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