Grover, J. - (1.) This is an appeal by special leave from a judgment of the Allahabad High Court and involves the question whether the appellant, who was the tenant, was entitled to the benefit of S. 3 of U. P. (Temporary) Cantrol of Rent and Eviction Act, 1947 hereinafter called the "Act."
(2.) The facts are not in dispute. The appellant had been occupying a shop in Mathura belonging to the respondent from a very long time at a monthly rental of Rs. 18.37. In 1962 the respondent wanted to construct rooms on the upper storey of the shop for his own residence. This construction could possibly be made only if the appellant vacated the shop for some period. On June 4, 1962, the appellant and the respondent entered into an agreement After reciting the above facts it was agreed that the shop would be vacated by the appellant on the condition that as soon as the required construction had been completed he would resume possession of the shop. At this stage the following clauses of the agreement may be set out. "1. On this day the second party has withdrawn his possession from the shop bearing no. 1/2C, situate at Tilakdwar, and has given the same to the first party. 2. The first party shall get the shop constructed within thirty days and would then hand over the possession of the same to the second party. 3. At present a sum of Rs. 18.60 per mensum, which includes house tax and water tax, is being paid by the second party to the first party as rent. After the construction of the shop, the first party shall be entitled to get the same amount as rent from the second party. All the sections of the U. P. Rent Control and Eviction Act shall be fully applicable to this house. The first party shall in no case be entitled to derive benefits from it as the property built after 1-1-51."
(3.) After the construction had been made and the appellant had resumed his possession of the shop the appellant offered rent to the respondent but the latter did not accept the same. Ultimately he deposited the rent from April 1, 1962 to July 31, 1963 in court under S. 7-C of the ActThe respondent served a notice dated April 20, 1963 apparently under the provisions of the Transfer of Property Act purporting to terminate the tenancy of the appellant. This was followed by a suit which the respondent filed for ejectment of the appellant and for arrears of rent, damages etc. The Munsif dismissed the suit holding that the appellant was entitled to the protection conferred by S. 3 of the Act which was applicable. The District Judge, on appeal, took the contrary view and decreed the suit The High Court affirmed the judgment of the District Judge. It was held, inter alia, that the respondent was entitled to rely on S. 1-A of the Act and the appellant could not be given the benefit of S. 3.;