- (1.) The appellant Vajrapani Naidu and his mother Bangarammal-hereinafter collectively called 'the lessors' - granted a lease of an open site in the town of Coimbatore to Abirama Chettiar under a registered deed dated September 19, 1934, for 20 years at an annual rental of Rs. 1,080/- for putting up a building suitable for use as a theater. Abirama Chettiar constructed a theater on the site, and assigned his rights to the New Theater Carnatic Talkies Ltd., Coimbatore-hereinafter called 'the Company'. The Company attorned to the lessors and was recognised as tenant under the lease dated September 19, 1934. On March 9, 1954 the lessors served a notice calling upon the Company to vacate and surrender vacant possession of the site, and the company having failed to comply with the requisition, the lessors commenced an action against the Company for a decree in ejectment and for mesne profits at the rate of Rs. 1,000/- per mensem from September 19, 1954. The Subordinate Judge at Coimbatore awarded to the lessors a decree for possession and mesne profits at the rate of Rs. 350/- per mensem and costs of the suit. Against the decree the Company preferred an appeal to the District Court at Coimbatore which was transferred for trial to the High Court at Madras. During the pendency of this appeal by G. O. No. 608 dated February 10, 1958, the State of Madras extended the Madras City Tenants' Protection Act 3 of 1922, as amended by Madras Act 19 of 1955, to the Municipal Town of Coimbatore. The Company then applied under S. 9 of the Act for an order directing the lessors to convey the site demised to the Company for a price to be fixed by the Court. Panchapakesa Iyer, J., directed that the lessors do sell to the Company the site in dispute under S. 9 of the Madras City Tenants' Protection Act, 1922, against payment of the full market value of the land on the date of the order, and further directed that the trial Court to appoint a Commissioner to fix the value of the site based on the market value prevalent on July 28, 1958. An appeal under Cl. 15 of the Letters Patent of the High Court against the order of Panchapakesa Iyer J., was dismissed. With certificate granted by the High Court of Madras, this appeal is preferred by the lessors.
(2.) Two questions fall to be determined in this appeal: 1. Whether the Company is entitled under S. 9 of the Madras City Tenants' Protection Act, 1922, notwithstanding the terms of the lease, to an order calling upon the lessors to sell the land demised under the deed dated September 19, 1934; and 2. Whether the terms of S. 9 of the Act infringe the fundamental right under Arts. 19 (1) (f) and 31 (1) of the Constitution, of the lessors, and S. 9 is on that account invalid.
(3.) It is necessary in the first instance to notice the material terms of the lease. The land demised under the lease was a vacant site situate in the municipal town of Coimbatore. The annual rent stipulated was Rs. 1,080/- and the period of the lease was 20 years from the date of delivery of possession of the site. The land was to be utilised for constructing buildings thereon for "purposes of Cinema, Drama, etc.". After the expiry of the term of 20 years stipulated under the deed the lessee had an option of renewal for another period of 20 years on fresh terms and conditions. The deed provided that "If after the termination of the stipulated period" x x x the lessees "fail to pay the arrears of rent that will fall due till that date and hand over possession of the site" to the lessors "after making it clear by dismantling the constructions therein and by demolishing the walls etc." the lessors "shall, besides realizing the arrears of rent due to them according to law, have the right to take possession through Court of the site in which the aforesaid buildings are put up after dismantling the constructions and demolishing the buildings therein". The other covenants of the lease are not material.;