JUDGEMENT
D.K.SETH, J. -
(1.) The moot question raised in this appeal by
Mr. S. P. Roychowdhury and opposed by Mr. S. Dasgupta, respective learned
Counsel for the parties, is the question of ascertaining as to whether
there was a new letting out superseding the lease for 25 years outside
the purview of West Bengal Premises Tenancy Act, excepted by Section
3 and creating tenancy within the purview of the 1956 Act. The question
traversed on a thin line of distinction as was ably argued by the respective
learned counsel, which is not free from doubt But one thing is clear
that from the materials on record it is to be found out as to whether
there was an intention to create a new tenancy and that was there any
implied surrender of the old tenancy. The change in identity of the
properly or alteration of rent might be construed to presume an implied
surrender and creation of new lease. But this distinction is based on
facts and the law is to be applied having regard to the facts and
circumstances brought out on record. The other question that was raised
is with regard to the mesne profits, as to whether the court would refer
the matter for a decision under Order 20 Rule 12 of the Code of Civil
Procedure or a decision given by the Court determining the mesne profits
would amount to fixation of the mesne profits leaving the determination
of the amount under Order 20 Rule 12 of the Code of Civil Procedure
without altering the finding about the rate of the mesne profits decided
by the Court.
Change of identity : Was there any ?:
(2.) In the present case, in the Deed of Lease, covered space was let.
out It appears to us that the covered space was converted, into a room
and thus there was a change in the identity of the property and thus
by reason of change of identity, a new tenancy was created. Coupled with
this, the enhancement of rent was also a ground seeking to add relief
to the creation of a new tenancy. However, we will be examining the
question of enhancement of rent at a later stage.
2.1. The identity of the property admittedly is sought to be distinguished
only with the expression "covered space" and "the room". Admittedly, in
the Deed of Lease, it was referred to as covered space. In the plaint,
recovery was sought for the covered space. In the written statement, it
was sought to be described as a room. The plaintiff sought to amend the
plaint seeking to change the description of the suit property as the room.
But this amendment was refused by the learned Trial Court. On revision
this Court also rejected the amendment. Therefore, the parties proceeded
on the basis of the pleadings available on record, namely, the recovery
of possession of covered space. In the deposition, the plaintiff had
described the property as a room.
2.2. On this basis Mr. Roychowdhury had pointed out that the plaintiff
had admitted that he was seeking recovery of possession of room and
not of a covered space. This definitely indicates a change in the identity
of the property leading to the presumption of an implied surrender and
creation of a new lease/tenancy other than the Deed of Lease for 25
years, excepted under Section 3 of the 1956 Act. Admittedly, the defendant
had admitted in his deposition that there was a roof all along over the
covered space. It was only one door that was installed. With the
installation of a door, the room was alleged to have been created. It was
never contended that the measurement of the area occupied by the
defendant in his tenancy was increased or decreased. Neither there is
anything on record to show that the situation of the property was deviated
from the place where it was originally situated. Thus the only foundation
in the identity is with regard to the covered space and the room, which
admittedly did not deviate from the measurement originally agreed in
the earlier situation. There is no allegation that a major change or
structural alteration or construction was undertaken in the covered space
for making the same a room. In common parlance, a room is also a
covered space but a room has its walls, windows and doors. The covered
space may not have its windows on doors. The tenancy was for the purpose
of carrying on the business. Admittedly, this business was being carried
on from the premises. The change that was effected seems to be cosmetic
which might have converted the space into a rooms By this cosmetic
change, it does not appear that there was a change in the property, which
might lead us to presume an implied surrender or creation of a new
letting out.
2.3. Mr. Dasgupta, learned Counsel for the respondent, had referred to
the decisions in Longford Property Co. Ltd. vs. Batten. 1950 (2) All England
Reports 1079 at p. 1088 and Mitchell vs. Barnes & Ann, 1949(2) All England
Reports 719 at p. 721 to support his contention that the cosmetic change
that has been effected in the present case does not lead to change of
identity of the property. In Mitchell (supra), some wooden partitions had
been erected for dividing the top two floors from the bottom floor and the
house was converted into two flats. Even then it was held that there
was no change of identity; It was further held that if there was a great
deal of structural work, it could have been said that there was a degree
enough to conclude a change in the identity. But this case was related
to the specification of standard rent under the Increase of Rent and
Mortgage Interest (Restrictions) Act, 1920. Therefore, the question was
directed from the angle as to whether such changes would entitle the
landlord to claim enhancement of the standard rent on account of change
of identity. This might not throw any light as to whether changing of
the house into two flats would amount to change in the tenancy or a
new letting out. But then we may also find that the rent could be enhanced
even when there is a new letting out by change of identity. Therefore,
the principle of change of identity can be drawn from this decision.
Inasmuch as unless there are substantial enhancement of the utility
of the property by making substantial alteration thereof involving some
amount of structural work, mere construction of the wall or fixation of
a door would not lead to change of identity of the property. As, in the
present case in Longford Property Co. Ltd. (supra), it was held that the
question relates to the identity of the property, it had referred to certain
decisions and observed that those decisions were all based on the theory
that the act of the parties in arranging a new letting can destroy the
entity of a dwelling house, a former letting of which had attracted a
standard rent, and can create a new standard rent for the new entity
which Is the subject of the new letting. The court further observed that
there was ho simple general rule, which could provide an answer. It is
in substance a question of fact whether a dwelling house, the standard
rent of which is to be ascertained, is the same as one previously let,
is said to have changed its identity by reason of some unimportant
variation in the content of the tenancy. The question is not so much
whether the premises are in all respects the same and whether the
dwelling house now in question is the same dwelling house as before.
Trivial variations a few feet here or thereought not to be treated as
causing a change. It is a question of degree in, respect of which there
is no absolute test. It is not the maxim de minimis, which stands between
continuing identity and a change of identity, but the fact that only a
substantial variation in what is lot can justify a finding that there is
a new dwelling house for the purposes of the Act. The above decision
clearly supports our view that we have taken that unless there are
substantial variations, the cosmetic variation would not confer a different
identity on the property.
2.4. In the present case, as we have found, the cosmetic changes that
are introduced might have converted the covered space into a room but
has not changed the identity of the covered space to such extent as to
destroy the earlier tenancy and create a new one on changing the identity
of, the property.
Enhancement of mat : Creation of new tenancy:
(3.) Now we may divert our attention to the question of enhancement
of rent, which might be one of the factors to lead us to presume that
there was a new letting. In the present case, the Deed of Lease, which
is Ext. I, contains the measurement of the area leased out for 25. years
admittedly outside the purview of the West Bengal Premises Tenancy Act.
1956. Clause 5 of the Deed of Lease provides that the lessee shall carry
out all repair to the demised portion of the premises at his own cost
during the period of this Lease. If, in the name of repair, the covered
space was built as introduced and it is not objected to by the lessor, then
it cannot be said that there was a real change in the identity of the
property unless by reason of substantial enhancement of the utility of
the property the rent is also enhanced. Clause 13 of the Deed of Lease
provides that an the Municipal rates and taxes both owner's and occupier's
shares was payable in respect of the demised premises by the Lessor,
but in case the Municipality increases the valuation of the demised
permoises the Lessee would be bound to pay the proportionate increase
in both shares in addition to the monthly rents. In the plaint it is pleaded
that the agreed rent stipulated in the Deed of Lease was Rs. 90/- and
that there had been successive enhancement in the assessment of the
valuation, which is apparent, from Ext. 3 series. It is contended that the
rent also was increased from Rs. 90/- to Rs. 92/-, Rs. 95/- and ultimately
to Rs. 116/-. there are sufficient materials to show that the valuation
having been increased, the taxes were also increased and that the rent
was also increased on the basts of enhancement in the taxes payable.
Though there is nothing to show as to the extent of the share of the
defendant payable on account of such increase, but still then if certain
amount is agreed on account of such increase and is paid, in the event.
it is nothing mere than the increase in the rent on account of the
increase or enhancement of the valuation and taxes payable pursuant
to the agreement contained in the Deed of Lease. Thus it was not the
rent for a new letting, but it was an increase in the ratio of the rent
pursuant to the agreement included in the Deed of Lease itself. Thus,
having regard to the present facts and circumstances of the Case and
the materials available on record, we do not think that the increase in
the rent factor would lead us to presume a new letting. In case there
is a change of identity and the utility of the property is substantially
enhanced, then there must be an increase in the rent. If both the things
are coupled together, then there can be presumption of a new letting.
However, until and unless there is such material, it is very difficult to
presume a new letting.
3.1. Mr. Dasgupta had relied on the decision in Savita Dey vs. Nageswar
Majumder & Anr., 1995 (6) SCC 274. The Apex Court had held in paragraph
10 of the said decision as quoted below :
"10. Now on the trial scene, we find that the argument of the tenant-
respondents about the increase of rent and novation of contract was
rightly rejected by the trial court. There is no flexible principle that
every variation in the rate of rent payable under a registered deed
of lease necessarily implies surrender of the said lease and creation
of a new tenancy, or that whenever rate of rent is altered a new
relationship between the parties gets created. By mere Increase or
reduction of rent, surrender of the existing lease and the grant of a
new one, cannot be inferred in each case. It Is a question of fect to
be determined. See in this regard Goppulal vs. Thakurji Shriji Shrijt
Dwarakadheeshji. Instantly in the deed itself provision had been
made whereby the lessee had undertaken to pay a proportionate
increase in the share of municipal taxes If In future the rate and
. taxes get increased by the Calcutta Municipal Corporation in respect
of the demised premises. The increase of Rs. 26 per month In the
agreed upon rent has rightly been found to be because of increase in
taxes. And since they were conceived of and stipulated in the deed
itself, no question of novation of contract could ever arise or on that
event creation of new tenancy, so as to lift the protection in the
landlord available under Section 3(1) of the Act."
3.2. Mr. Dasgupta had referred to the decision in D. S. Commercial Pvt.
Ltd. vs. Shree S. S. Jain Sabha, AIR 1984 Cal 194 where the question of
change of relationship had cropped up. It appears from (he said decision
that the distinction is very thin. It is to be ascertained on the basis
of the materials available. The Court is required to direct itself to examine
flae fact of the case as to whether the parties had intended to create
a new relationship and that there would be an implied surrender. It was
further held that there would be no implied surrender of previous lease
merely because the rate or rent had been altered. But in case the parties
had intended to create a new relationship and in pursuance thereof alter
the rate of rent previously payable, by operation of law the previous lease
is determined. Therefore, when the rate of rent is altered, the question
that is to be examined is whether the parties had intended to create
a new relationship between them or the parties had merely agreed to
altered rate of rent. It is not always that alteration of rate of rent would
amount to implied surrender and creation of new tenancy. If there was
a registered Deed of Lease, then it becomes very difficult to presume
a creation of new relationship varying the essential terms of the
registered Deed of Lease. Applying the above test in the present case,
we do not find that the parties had ever intended to create a new lease
particularly when there was no alteration in the rent except in accordance
with the agreement contained in the Deed of Lease itself which would
never amount to creation of a new lease on account of alteration of rent
in terms of the conditions contained in the lease.
3.3. We find the observation made by the Apex Court and that of this
court, in the above decisions. that a change in the rent necessarily does
not imply surrender of the tease and Creation of a new tenancy. If the
lease itself contained a clause, for such purpose, then it cannot be
construed to mean a creation of a new lease resulting into novation of
the contract Even if there is a change in the rate of rent, still then
It was in terms of the conditions contained in the Deed of Lease and,
therefore. It would not amount to novation of the contract and thus
amounting to implied surrender of tenancy or creation of a new tenancy
as has been sought to be put forward by Mr. S. P. Roychowdhury.
Can the plaintiff recover the room not pleaded in plaint ? :;