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KARNANI INDUSTRIAL BANK, LIMITED versus THE PROVINCE OF BENGAL AND OTHERS

Citation: [1951] 1 S.C.R. 560 · Decided: 04-05-1951 · Supreme Court of India · Bench: BIJAN KUMAR MUKHERJEA · Disposal: Dismissed

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Judgment (excerpt)

1951 
Bi•hun4eo 
Narain 
and Another 
v. 
Seogenl Bal 
and Jagernath. 
Bose.J. 
1951 
Ma14 
560 
SUPREME COURT REPORTS 
(1951] 
the same parties for the same relief. It will be more 
convenient and proper to have these matters decided 
there. Accordingly, 
we dismiss the 
plaintills' 
suit 
with costs throughout, but make it plain that in doing 
so we do not adjudicate upon their right to seek parti-
tion of such properties as they contend are omitted to 
be partitioned under the compromise decree in the 
pending suit. 
Appeal di1mi11ed. 
Agent for the appellants : R. C. Prasad. 
Agent for respondent No. 1 : P. K. Chatteriee. 
KARNANI INDUSTRIAL BANK, LIMITED 
"· 
THE PROVINCE OF BENGAL AND OlHERS 
[SAIYID FAzL Au, MuKHE!lJEA and 
CliANDIUSEKHAl\A AlYAR JI.) 
Transfer of Property Act (IV of 1882), ss. 106, 116-Lease 
for a term-Acceptance of rent for further period 
before expiry of 
term-New tenancy--Necessity of notice ta quit-Lessee's property 
becoming property of lessor by failure to remove within time-In· 
junction against removal-Whether can be granted. 
The context in which the provision for acceptance of rent finds 
a place in s. 116 of the Transfer of Property &t shows that what 
is contemplated is that the payment of rent should be made at 
such time and in such manner as to. be 
equivalent to the land· 
lord assenting to the lessee continuing in possession. 
Where 
payment is made at a time when there was no question of the 
lessor 
assenting 
to the lessee's continuing in possession and 
neither party treated the payment as importing such assent the 
case does not fall within s. 116. 
A lease deed was executed on the 17th February, 1928, in res-
pect of a land for a period of ten years from 24th February, 1928 
the annual rent of Rs. 6,000 being payable in advance every year. 
In April, 1937, a cheque for Rs. 6,000, being the rent from 1st 
April, 1937, to 31st March, 1938, was 
sent by the lessee and ac-
cepted by the lessor : Held, that as the rent was paid before ~ 
expiry of the lease and neither party treated the payment of rent 
as importing assent on the part of the lessor to allow the lessee 
S.C.R. 
SUPREME COURT. REPORTS 
561 
to continue in possession as a lessee after the .period of the lease, 
no new tenancy was created under s. 116 of the Transfer of Pro-
perty Act. The· utmost that could be said was that by implied 
consent the period of the lease was extended up to the 31st 
March, 1938, and even then no notice under s. 
106 of the Trans-
fer of Property Act was necessary for terminating the lease. 
K. B. Capadia v. Bai Jerbai Warden and Another [1949) 
F.C.R. 262 distinguished. 
Where in accordance with thC terms of a lease bricks and other 
materials manufactured by the lessee on the leased premises had 
become the property of the lessor as they had not been removed 
by the lessee within the period fixed by the lease : Held that the 
lessor was entitled to ask for an injunction restraining the lessee 
from removing the materials even though he was not in posses-
sion of the leased premises. 
Rathnasabhapathi Pillai and Others v. Ramaswami Aiyar (I.L.R. 
33 Mad. 452). Bhramar Lal Banduri & Others v. Nanda/al Chow-
dhuri (24 I. C. 199) and Valia Thamburatti v. Parvati and Others 
(I. L. R. 13 Mad. 455) distinguished. 
CML APPELLATE JmusDICTION. 
Civil Appeal No- 58 
of 1950. 
Appeal against the Judgment and Decree dated the 
13th February, 1948, of the High Court of Judicature 
at Calcutta (Mitter and Sharpe JJ.) in Appeal No. 117 
of 1942 arising out of Decree elated the 24th Novem-
ber, 1941, in Suit No. 85 of 1938. 
N. C. Chatteriee and Harish Chandra (K. C. Chopra 
and G. C. Mathur, with them) for the appellant. 
Chandra Sekhar Sen ( C. N. Laik, with him) for res-
pondent No. 1. 
1951, May 4. 
The Judgment of the Court was deli-
vered by 
F AZL Au J. 
The principal question for determina-
1951 
Karnani 
Industrial Bank 
Limited 
v. 
The Province of 
Bengal 
and Others. 
tion in this appeal is whether a certain lease had validly 
Fazl Ali J. 
terminated by efflux of time or whether there was 
"holding over" by the lessee of the leasehold property 
as contemplated in section 116 of the Transfer of Pro-
perty Act. The circumstances under which this ques-
tion and several subsidiary questions to which reference 
will be 
made later have Erisen may be briefly stated 
as follows: 
1951 
Karnani 
Indrutrlal Bank 
Limited 
v. 
The Province of 
Bengal 
and Others. 
Faz/ Ali J. 
562 
SUPREME CO

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