ALL INDIA FILM CORPORATION LIMITED Vs. RAJA GYAN NATH
LAWS(SC)-1969-9-38
SUPREME COURT OF INDIA (FROM: PUNJAB & HARYANA)
Decided on September 26,1969

All India Film Corporation Limited Appellant
VERSUS
Raja Gyan Nath Respondents

JUDGEMENT

- (1.) These are appeals by certificate granted by the Punjab High court against the judgment and decree, dated 19/03/1963. The property in dispute is a building in Jullundur City in which there is located a cinema. It was formerly called 'chitra Talkies' and now is known as 'odeon Cinema'. The building was constructed in 1933 on land measuring 3 Kanals and 17 Marias. 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 21/01/1946 he had mortgaged the building with possession for Rs. 70,000. 00 with Malawa Ram and Gainda Mal. On 22/01/1946, Azim Baksh took the building on lease on a rent of Rs. 162/8 annas for II months from the mortgagees. He executed a rent note. On 8/02/1946, 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 amount. The mortgagees are entitled to carry on the aforesaid cinema in any way they like or may give the same on lease to any body else. I shall have no objection. "
(2.) Previously Azim Baksh had rented this building to Sant Ram and Sita Ram on Rs. 150. 00 per month. After the release of the property the mortgagees leased it to Sita Ram and Sohan Lal on Rs. 200. 00 per month. This lease was terminated on 26/07/1950. On August) 1951, the mortgagees leased it to the All-India Film Corporation Ltd. , Appellant No. 1 (defendent No. 2) , on Rs. 250. 00 per month vide Ex. D-2, W-2/1. The lease was for 5 years in the first instance from 15/09/1951 to Sep 14/09/1956. It was, however, renewable for 10 years by yearly renewals. There was a condition that renewal on the same terms was not to be refused. By this lease, the lessee was given full right to use the property whether by itself or through agents or in partnership or by sub-leasing.
(3.) Malawa Ram and Gainda Mal partitioned their property and this house fell to the share of Gainda Mal. The lessee company in its turn sublet the premises to defendants 3 to 9 on a monthly rent of Rs. 1,250. 00. This was on 16/05/1952. Before sub-leasing the premises, the head lessee company had equipped the house with cinema machinery etc. and the sublease included the use of machinery etc.;


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