SPUN CASTING AND ENGG. CO. PVT. LTD. versus DWIJENDRA LAL SINHA (DEAD) THROUGH LRS. AND ORS.

Citation: [2005] 3 S.C.R. 395 · Decided: 08-04-2005 · Supreme Court of India · Bench: ASHOK BHAN · Disposal: Dismissed

Judgment (excerpt)

SPUN CASTING AND ENGG. CO. PVT. LTD. 
A 
v. 
DWIJENDRA LAL SINHA (DEAD) THROUGH LRS. AND ORS. 
APRIL 8, 2005 
[ASHOK BHAN AND A.K. MATHUR, JJ.] 
B 
West Bengal Premises Tenancy Act, 1956-Applicability of-Settlement 
of business of iron casting foundry along v.1ith the building and machinery by 
legal heirs of original lessees in favour of party by successive transfer for C 
fixed period-Failure to vacate the property and non-payment of rent and 
also trespassed over the other property-Grant of decree of recovery of 
possession by trial court, set aside by appellate court-However, upheld by 
High Court on the ground of non-payment of rent and that the party let out 
business and not the premises within the Act-On appeal held: In view of the 
terms of the settlement dominant intention of the parties was to create lease D 
for running business of an iron casting foundry along with machinery housed 
in a building and not in respect of premises constituting 'premises tenancy' 
within the meaning of section 2(/) of the Act-Structures and sheds not part 
of the settlement-Hence, settlement was not for the premises to run business 
but business itself and as such not within the purview of the Act-Order of E 
High Court upheld-Also with regard to trespass over the other property, 
issue of notice under section 106 of the 1882 Act and maintainability of the 
suit by the party in their individual capacity after the dissolution of the 
partnership firm-However, High Court erred in passing decree on the ground 
of default in payment of rent in absence of pleadings and evidence-Section 
2(/)-Transfer of Property Act, 1882 section 106. 
F 
Words and Phrases: 
Premises-Meaning of in the context of West Bengal Premises Tenancy 
Act, 1'956, Section 2(/). 
Legal heirs of N-original respondent Nos.I and 2 settled the whole 
Karbar (business) of iron casting foundry along with land and all fittings 
and fixtures-'B' Schedule Property, in favour of predecessor-in-interest 
of the appellant at a monthly rent for a fixed period. By successive 
transfers, appellant acquired the interest of original lessees/settlees and 
G 
395 
II 
396 
SUPREME COURT REPORTS 
[2005] 3 S.C.R. 
A thereafter, settlement came to an end by efflux of time. Appellant did not 
vacate the 'B' Schedule Property nor paid rent and also trespassed over 
'C' Schedule Property. Respondent No. 1 and 2 filed suit for recovery of 
'B' and 'C' Schedule property. Trial Court decreed the suit in favour of 
the respondent. Appellant filed an Appeal. Appellate Court upheld the 
order of Trial Court with regard to 'C' Schedule property, however set 
B aside the order with regard to 'B' Schedule property. Aggrieved appellant 
filed Second Appeal and the respondents filed cross objections. High Court 
dismissed the Second Appeal holding that the appellant ha" trespassed the 
· 'C' Schedule property. However, it allowed the cross objections and upheld 
the decree for recovery of possession of 'B' Schedule property. It held that 
C the dominant intention of the parties while creating the lease was to lease 
the karbar (business) of iron casting foundry; that the parties never 
intended to settle or grant lease of the structures and sheds, and as such 
was not a settlement in respect of the premises constituting premises 
tenancy within the meaning of section 2(f) of the West Bengal Premises 
Tenancy Act, 1956; that there was no requirement of issuance of notice 
D under Section 106 of the Transfer of Property Act; and that after the 
dissolution of the partnership firm the respondents could file the suit in 
their individual capacity. Hence the present appeal. 
E 
Dismissing the appeal, the Court 
HELD: 1.1. The West Bengal Premises Tenancy Act, 1956 can have 
application only if what is settled by way of lease is a premises. 'Premises' 
in the Act are defined under section 2(f) to mean a building or a part of 
a building which includes gardens, grounds and out-houses, if any, 
appertaining to the building. It also includes the furniture supplied or any · 
F fittings or fixtures in a building or a part of the building but would not 
include a room in a hotel or a lodging house. It does not include the lease 
of a business along with machinery in a building. (405-C; 404-F) 
1.2. In the instant case, reading the terms of the settlement and 
construing the same the dominant intention of the settlers who entered 
G into settlement was to effect the settlement in respect of the karbar 
(bus

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