TMI Blog1969 (9) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... measuring 3 kanals and 17 marlas. The original owner-one Azim Baksh--migrated to Pakistan in 1947 and this property was declared evacuee property. Before migration Azim Baksh had dealt with this property in several ways. On January 21, 1946 he had mortgaged the building with possession for ₹ 70,000/- with Malawa Ram and Gamda Mal. On January 22, 1946 Azim Baksh took the building on leaseon a rent of ₹ 162.8 annas for 11 months from the mortgagees. He executed a rent note. On February 8, 1946 this rent note was cancelled. An endorsement was made on the rent note to the following effect: With the consent of Lal Gainda Ram and Malawa Ram, the said rent-deed has been cancelled. Rent for one month may be included in the mortgage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st 25, 1955, determined the mortgage charge as ₹ 90,807.4 annas and ordered sale of the building and land together with another plot. The respondent in this appeal Raja Gyan Nath purchased the cinema with the land (3 kanals 17 marlas) for ₹ 65,000/- on December 3, 1955. The sale certificate was issued on March 3, 1956. The mortgage charge was paid off on April 19, 1958. The purchaser Raja Gyan Nath then filed a suit for possession of this property from the head lessee and the sub-lessees on August 5, 1959 and for mesne profits at the rate of ₹ 1,250/- per month. The sub-lessees claimed the benefit of the East Punjab Urban Rent Restriction Act (3 of 1949). Later the plaintiff gave up his claim to the cinema machinery, fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agee's interest lasts only as long as the mortgage has not been paid off. Therefore on redemption of the mortgage the title of the mortgagee comes to an end. A derivative title from him must ordinarily come to an end with the termination of the mortgagee's title. The mortgagee by creating a tenancy becomes the lessor of the property but his interest as lessor is coterminous with his mortgagee interest. Section 111 (c) of the Transfer of Property Act provides that a lease of immovable property determines where the interest of the lessor in the property terminates on, or his power to dispose of the same, extends only to the happening of any event by the happening of such event. The duration of the mortgagee's interest determines h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r had concurred to grant it. Applying these principles to the facts of this case, we find that the property, the subject of the lease, was a house in the city of Jullundur suitable for a cinema theatre. This was leased for five years on a rent of ₹ 250/- p.m. This sum included the use of a passage for which the rent was ₹ 100/- p.m. In effect the rent of the building was ₹ 150/-. This was lower rent than the rent it had fetched before. The mortgagee further agreed to renewal of the lease on the same terms for a further period of 10 years. It is in evidence that a plot only 8 marlas formed the passage and the rent was ₹ 100/- and on that basis land of 3 kanals and 17 marlas with a building fit for cinema ought to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d off the mortgage in full. The interests of the mortgagor and mortgagee united in the person of the purchaser anti the mortgage ceased to subsist. In this view of the matter the purchaser, ,speaking in his character as a mortgagor, could claim that the mortgagee's action came to an end and there did not subsist any relationship between him and the tenants. The respondents attempted to argue that the Rent Restriction Act defines landlord and tenant with reference to the payment of rent. A landlord means a person entitled to receive rent and a tenant means any person by whom or on whose account rent is payable. These definitions apply if the tenancy, either real or statutory, could be said to survive after the termination of the mortg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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