20 February 1981
Supreme Court
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HARCHARAN SINGH Vs SHIV RANI AND ORS.

Bench: TULZAPURKAR,V.D.
Case number: Appeal Civil 1402 of 1979


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PETITIONER: HARCHARAN SINGH

       Vs.

RESPONDENT: SHIV RANI AND ORS.

DATE OF JUDGMENT20/02/1981

BENCH: TULZAPURKAR, V.D. BENCH: TULZAPURKAR, V.D. DESAI, D.A. SEN, A.P. (J)

CITATION:  1981 AIR 1248            1981 SCR  (2) 962  1981 SCC  (2) 535        1981 SCALE  (1)401

ACT:      Service be refusal-Notice demanding arrears and seeking eviction is  sent by  registered post  but  refused  by  the tenant-Whether the  tenant could be imputed the knowledge of the contents  thereof so  that upon  his failure  to com ply with the  notice the  tenant could be said to have committed willful default  in payment of rent-U.P. Cantonment (Control of Rent  and Eviction), (Central Act X), 1952, section 14(1) scope  of-General  Clauses  Act  1897,  section  27,  Indian Evidence Act, section 114.

HEADNOTE:      The appellant was inducted in the year 1964 as a tenant of the suit premises on an yearly rental payable by December 31, every year. Since the appellant did not pay the rent for the years  1965, 1966  a combined  notice dated  November 9, 1966 demanding  payment of  arrears and seeking ejectment on termination of  tenancy, was  sent by registered post by the respondents. The  appellant refused to receive the notice on November 10,  1966.  On  his  failure  to  comply  with  the requisitions contained  in the notice, the respondents filed a suit  against the  appellant seeking  eviction as  well as recovery of rents and mensne profits.      Having lost  before  the  trial  court  and  the  first appellate court,  the respondents  came up  before the  High Court in  second appeal. The High Court accepted the finding of fact recorded by the first appellate court that there was service of  the notice  on the appellant by refusal and held that when  notice was  tendered to  the tenant  and when the latter refused to accept the same know ledge of the contents of the notice must be imputed to him. The High Court allowed the landlords’  appeal and  granted three months time to the appellant to  vacate the  shop. Hence,  the tenant’s  appeal after obtaining special leave from this Court.      Dismissing the appeal, the Court ^      HELD: (By  majority) Per  Tulzapurkar, J. (On behalf of A. P. Sen, J. and himself).      1:1. The  presumptions that are raised under section 27 of the  General Clauses  Act, 1897  and section  114 of  the Indian Evidence  Act, make  it clear  that, when  service is

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effected by refusal of a postal communication, the addressee must be  imputed with the knowledge of the contents thereof. [971 E-F]      1:2. Before the knowledge of the contents of the notice could be  imputed, it  is  not  necessary  that  the  sealed envelope must  be opened  and read  by the addressee or when the addressee happens to be an illiterate person the contend should be  read over to him by the post-man or someone else. Such things do not occur when the addressee is determined to decline to accept the sealed envelope. [971 D-E] 963      Vaman Vithal  Kulkarni and  Ors. v.  Khanderao Ram  Rao Sholapurkar, A.I.R.  1935 Bom.  247, explained and dissented from.      Mahboob Bi  v. Alvala  Lachmiah, A.I.R.  1964 A.P. 324, held inapplicable.      Shri Nath  and another  v. Smt. Saraswati Devi Jaiswal, A.I.R. 1964  All. 52;  Fanni Lal  v. Smt.  Chironja,  (1972) Allahabad Law  Journal 499;  Ganga  Ram  v.  Smt.  Phulwati, (1970) Allahabad  Law Journal  336 (FB);  Kodali Bapayya and Ors. v.  Yadavalli Venkataratnam  and Ors., A.I.R. 1953 Mad. 884, approved.      Harihar Banerji  and Ors.  v. Ramshashi  Roy and  Ors., A.I.R. 1918 P.C. 102, referred to.      2:  1.  The  suit  under  section  14(1)  of  the  U.P. Cantonment (Control  of Rent  & Eviction) Act (Central Act X of 1952),  in  the  instant  case  was  maintainable.  Under section 14(1) of the Central Act, which in pari materia with section 3(1)  of the  U.P. (Temporary)  Control of  Rent and Eviction Act,  1947, permission  of the  District Magistrate was required  if the  landlord sought eviction of the tenant on any  ground other  than those specified in clauses (a) to (f) and  not when  it was  sought  on  any  of  the  grounds specified in clauses (a) to (f). [973 E-P]      Bhagwan Dass v. Paras Nath, [1969] 2 SCR 297, followed.      2:2. All  the courts  rightly dealt  with the matter as being governed  by the  U.P. Cantonments  (Control of Rent & Eviction) Act,  X of  1952-a Central  Act and  not  by  U.P. (Temporary) Control of Rent and Eviction Act, 1947 much less by the later U.P. (Rent & Eviction) Act, 1972. [966 E-F] Per Desai. J. Contra.      1.  Uttar   Pradesh  Urban   Buildings  (Regulation  of Letting,  Rent   &  Eviction)   Act,  1972   is  a  socially beneficient statute  and should  be construed  according  to well recognised  canons of  construction. The  words used in the statute,  if they  are plain  and  unambiguous  must  be applied as they stand, however, strongly it may be suspected that the result does not represent the real intention of the legislature. However,  if two constructions are possible and legitimate ambiguity  arises from the language employed that which enlarges  the protection  of  a  socially  beneficient statute  rather  than  one  which  restricts  it  should  be preferred and adopted. In other words the construction which would be  more consistent  with the policy and attainment of the legislation  which is  to protect  the possession of the tenant unless the landlord establishes a ground for eviction should be  preferred. Further  where two  constructions  are possible the  one which would accord with reason and justice must be preferred. [975 G-H, 976 A, D, G]      Inland Revenue  Commissioners v. Hinchy, 1960 A.C. 748, H. L.  at 767=  (1960) 1 All India Reports 505 at 512; River Wear Commissioners  v. Adamson,  (1877) 2  A.C. 743  &  765, quoted with approval.      Mohd. Shafi  v. Additional  District &  Sessions  Judge (VII), Allahabad and Others, [1977] 2 S.C.C. 226; Gurucharan

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Singh v.  Kamla Singh  & Ors.  [1976] 2  S.C.C. 152;  H.  H. Maharajadhiraja Madhav  Rao Jivaji  Rao Scindia  Bahadur  of Gwalior &  Ors. v. Union of India & Another, [1971] 1 S.C.C. 85, reiterated. 964      2:1. The  substitution of  the expression,  "arrears of rent for  not less  than four  months" in  sub-clause (a) of sub-section (2)  of section  20 of  the Uttar  Pradesh Urban Buildings (Regulation  of Letting Rent & Eviction) Act, 1972 is a  contemporaneous legislative  exposition  bringing  out clearly the legislative intention that the landlord would be entitled to  evict the  tenant if the rent is in arrears for not less  than four months. Before the landlord can commence action under  sub-clause  (a):  (i)  the  tenant  must  have committed default  in Payment  of rent  for a period of four months, and  (ii) a  notice has  to be  served,  giving  the tenant locus poeniteniae to repair the default within month. [978 B-C]      2:2. Two  ingredients emerge  from the  expression "the tenant is in arrears of rent for not less than four months": (i) that  the rent  is payable  by month and (ii) the tenant has committed  default in payment of rent for four different months and  that this  default subsists and continues on the date when  the land-lord invokes the provision of clause (a) and proceeds to serve a notice of demand. Again, if within a period of  one month from the date of receipt of notice, the tenant pays  up the  arrears of  rent he  does not  lose the protection of the Rent Act. [978 G-H 979]      2:3. It is implicit in the expression "the tenant is in arrears of  rent for  not less  than four  months" that  the legislature clearly intended to cover those cases Of default in payment  of rent  under clause  (a) where the contract of lease provided  for payment  of  rent  every  month  meaning thereby that the unit for liability to pay rent is one month and secondly  the  tenant  has  committed  default  on  four different  occasions   of  four  different  months  or  four different units agreed upon for payment of rent and that too after the liability to pay the same has accepted. [979 A-C]      2:4. Section  20(2)(a) of  the Rent  Act, 1972 does not attract cases  where the  landlords accept rent on an yearly basis. The  language of  the section  does not  admit  of  a construction, namely,  that even  if the  rent is payable by year, once  the year is over and a period of four months has elapsed he could be said to be "a tenant in arrears, of rent for not  less than  four months".  In the  instant case, the parties are  ad idem that the rent is payable by year at the rate of  Rs. 100/- per annum. In such a case it could not be said that  this tenant  was in  arrears of rent for not less than four  months. His  case would not be covered by section 20(2) of the Rent Act and, therefore, the landlord would not be entitled to a decree for eviction on this ground and that was the sole ground on which eviction has been ordered. [980 C-D, 981 A-B]      3. The  amended section 100 of the Civil Procedure Code restricted the jurisdiction of the High Court to entertain a second appeal  only if the High Court was satisfied that the case involved  a substantial  question of  law.  Sub-section G(4) cast  a duty on the court to formulate such substantial question of  law and  the appeal  has to  be  heard  on  the question so  formulated.  It  would  also  be  open  to  the respondent at  the hearing  of he appeal to contend that the case does  not involve such a question. Thus, the High Court ordinarily cannot  and did not interfere with the concurrent findings of  fact arrived  at by the courts below. [981 G-H, 982 A]

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    In the  facts of  this case,  there  was  a  concurrent finding that  the statutory  notice as  required by  section 20(2)(a) was  not served upon the tenant and, therefore, the High Court  was in error in interfering with this finding of fact. [982 B-C] 965      R. Ramachandran  Ayyar v. Ramalingam Chettiar, [1963] 3 S.C.R. 605; Mst. Durga Chaudhrain v. Jawahar Choudhary, 1890 LR 17  IA, 122;  Goppulal v.  Dwarkadhishji, [1969] 3 S.C.R. 989, reiterated.      4:1. Mere  refusal of  a registered  letter  would  not permit a  presumption to be raised that not only the service was legal,  but the  refusal was  the conscious  act flowing from the knowledge of the contents of the letter. [987 C]      4:2. This concept that the registered envelope properly addressed and  returned with  an endorsement of refusal must permit a  rebuttable presumption  that the addressee refused it with  the knowledge  of the  contents is  wholly borrowed from the western jurisprudence. Not considering the specific Indian conditions  and  the  approach  of  rural  Indian  to registered letters,  but merely  going in with the technical rules of  Evidence Act  would cause  more harm  and lead  to injustice through law. [985 G-H, 986 A]      4:3. The  Rent Act  does  not  seek  to  evict  a  mere defaulter. That is why a provision for notice has been made. If even  after notice  the default continues, the tenant can be condemned  as willful  defaulter. He  could not be dubbed guilty  of  conscious,  willful,  contumacious,  intentional conduct even when he did not know what was in the registered env‘elope.  It   would  be  atrocious  to  impute  any  such knowledge to a person who has merely been guilty of refusing to accept  the registered notice. Where service of notice is a condition precedent, a dubious service held established by examining the  postman who  must be  delivering hundreds  of postal envelopes  and who  is ready to go to the witness box after a long interval to say that he offered the envelope to the addressee  and he  refused to  accept the same, would be travesty of  justice. And if this condition precedent is not fully satisfied, the subsequent conduct cannot be said to be willful. [987 E-G]      Fannilal v.  Smt. Chironja,  (1972)  All.  Law  J.  499 (D.B.) dissented to.      Appabhai  Motibhai  v.  Laxmichand  Zaverchand  &  Co., A.I.R. 1954 Bom. 159, held inapplicable.      Mahboob Bi  v. Alvala  Lachmiah, A.I.R.  1964 A.P. 314; Amarjit Singh  Bedi v.  Lachman Das; Waman Vithal Kulkarni & Others v.  Khandera Ram  Rao Sholapurkar,  A.I.R. 1935  Bom. 247, quoted with approval.      5. The  argument that  it would  be impossible to serve the notice  as statutorily  prescribed, once it is held that no knowledge  of the contents of the refused letter could be imputed to  the tenant, is incorrect. The notice is required to be  served in  the manner  prescribed by  section 106  of Transfer of  Property Act  which, inter  alia, provides  for affixing a  copy of the notice on the premises in possession of the  tenant.  Therefore,  it  cannot  be  said  that  the approach of  the Court  would render  it impossible  for the landlord to  meet with  the statutory requirement of service of notice before commencing the action for eviction [1988 C] 966

JUDGMENT:      CIVIL APPELLATE  JURISDICTION: Civil Appeal No. 1402 of

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1979.      Appeal by  Special Leave  from the  Judgment and  Order dated 16-2-1979 of the Allahabad High Court in Second Appeal No. 430/70.      P. C. Bhartari for the Appellant.      L. M. Singhvi and Pramod Swarup for the Respondent.      The Judgment of V. D. Tulzapurkar, J. and A. P. Sen, J. was delivered  by Tulzapurkar,  J. D.  A. Desai,  J. gave  a dissenting Opinion.      TULZAPURKAR, J.  This is  a tenant’s  appeal by special leave directed against the judgment and decree passed by the Allahabad High  Court on  February 16, 1979 in Second Appeal No.  430   of  1970  whereby  the  High  Court  decreed  the respondents’ (landlords)  suit  for  ejectment  against  the appellant (tenant) and the only question of substance raised in  the   appeal  is  whether  when  the  landlords’  notice demanding arrears and seeking eviction is sent by registered post and  is refused  by the  tenant  the  latter  could  be imputed the  knowledge of  the contents thereof 60 that upon his failure  to comply  with the  notice the tenant could be said to have committed willful default in payment of rent ?      The  question   arises  in   these  circumstances:  The appellant occupied shop No. 5 in Ivanhoe Estate, situated at Landure Cantonment, Mussorie, originally owned by one Parvij Waris Rasool,  on an  yearly rental  of Rs.  250 payable  by December 31,  every year. The property at all material times was admittedly  governed by the U.P. Cantonment, (Control of Rent &  Eviction) Act,  X of  1952-a Central  Act and, in my view, all  the Courts below rightly dealt with the matter as being governed  by that  Act and  not  by  U.P.  (Temporary) Control of  Rent and  Eviction Act,  1947, much  less by the later U.P.  (Rent and  Eviction) Act,  1972. The respondents purchased the  aforesaid Estate  form its  previous owner on November 27,  1964  and  the  previous  owner  attorned  the tenancy of  the appellant  to the respondents along with the rental due  from  him  for  the  year  1964.  The  appellant continued to be the tenant of the shop during the years 1965 and 1966  as well  but since  he did  not pay  the rent  the respondents on  November 9,  1966  gave  a  combined  notice demanding  payment  of  arrears  and  seeking  ejectment  on termination of tenancy which was refused by him on  November,  10, 1966.  On his  failure to  comply  with  the requisitions contained in the notice the respondents filed a suit against  the appellant  seeking  eviction  as  well  as recovery of rents and mesne profits. 967      The suit  was resisted by the appellant, inter alia, on the ground that the rent of the accommodation payable to the previous owner  was Rs.  250 per  annum less  10% rebate  on account of repairs; that in 1964 at the intervention of some common friends  he agreed  to vacate  and did  surrender the residential portion  of the  shop comprising  two rooms, one kitchen, one  bath room  and one varandah at the back of the shop  in  consideration  of  respondents  relinquishing  the rental of  Rs. 250  due from him for the year 1964; that for the years  1965 and  1966 the  rental for the remaining shop was reduced by agreement to Rs. 50 per annum less rebate for repairs and  that he had sent a cheque for the amount due to the respondents.  He denied that he has committed default in payment of  rents and  averred that  no notice of demand and ejectment was  served on  him and  consequently  prayed  for dismissal of the suit.      On an  appreciation of  the evidence led by the parties before it  the Trial  Court  came  to  the  conclusion  that initially the  rent fixed was Rs. 250 per year but after the

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respondents’ purchase  of the property the appellant vacated the residential  portion of  the  shop  under  an  agreement arrived  at  between  the  parties  where  under  there  was relinquishment of  rent due  for 1964  and that the rent for the main  shop was  fixed at  Rs. 100  per annum and that no rebate of any kind had been agreed to at any time on account of  repairs.  Regarding  the  arrears  of  rent  outstanding against the appellant the Trial Court held that rent for the years 1965  and 1966  had not been paid and was due from him but it  held that  the notice dated November 9, 1966 was not served on  the appellant  and hence  he could not be held to have committed  willful default  in payment  of  arrears  of rent. In  this view  of the matter the Trial Court dismissed the suit insofar as the relief of eviction was concerned but decreed it  for arrears  of rent  at the rate of Rs. 100 per annum. Aggrieved by that judgment and decree the respondents filed an appeal to the District Court, Dehradun. The learned District Judge  concurred with  the findings  of  the  Trial Court  that   the  rental   for  the   year  1964  had  been relinquished and that the rental of the front portion of the shop had  been fixed  at Rs.  100 per annum. He further held that the  notice was  tendered to  the appellant on November 10, 1966  but he  declined to  accept it and hence there was service by  refusal, but in his opinion despite such service it could  not be  presumed that  the appellant had knowledge about the  contents of that notice and consequently he could not be  said to  have committed  any willful  default in the payment of rent. In the result the appeal was dismissed. The respondents preferred  Second Appeal  No. 430 of 1970 to the High Court.  In that  appeal the  tenant sought to reagitate the question 968 whether or  not the  notice was  tendered  to  him  and  was refused by  him on  the ground  that the  finding  had  been recorded by  the District  Court without application of mind to the  statement on  oath made by him to the effect that no postman had ever gone to him with a registered letter either on 9th  or 10th  November, 1966  and he  had not declined to receive any  registered letter but the High Court refused to entertain the  contention inasmuch  as  it  found  that  the learned District  Judge had  referred to  this part  of  the appellant’s evidence  as also  the postman’s evidence on the point and  that on an appreciation of such rival evidence on record he  had  recorded  a  finding  that  the  notice  was tendered to  the appellant  but it  was refused  by him;  in other words in the absence of animus being attributed to the postman the  District  Judge  had  preferred  the  postman’s evidence  to  that  of  the  appellant’s.  The  High  Court, therefore, accepted  the finding  of fact  recorded  by  the District Court  that there  was service of the notice on the appellant by  refusal. On the further question as to whether when such  refusal had been established, the appellant could be imputed with the knowledge of the contents of the notice, the High Court, following its two previous decisions in Shri Nath and another v. Smt. Saraswati Devi Jaswal and Fanni Lal v. Smt.  Chironja, held that when notice was tendered to the tenant and  when the  latter refused  to  accept  the  same, knowledge of  the contents  of the notice must be imputed to him. The  District Judge’s  view in  this  behalf  was  thus reversed and  since there  was failure  on the  part of  the appellant to pay the rent within one month of the service of notice upon  him, the  High Court held that he had committed willful default  within the  meaning of s. 14(a) of the Act. Accordingly the  High  Court  allowed  the  appeal  and  the respondents’  prayer  for  ejectment  was  granted  but  the

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appellant  was  given  three  months"  time  to  vacate  the accommodation. The  tenant has  come up  in appeal  to  this Court.      Counsel for  the appellant  vehemently contended before us that  the High Court was in error in taking the view that when service by refusal had been effected the tenant must be deemed to  have knowledge  about the contents of the notice, for, no  such presumption  could be drawn especially when it was clear  on evidence  that neither the registered envelope was opened  either by  the tenant  or by the postman nor the contents thereof  read before  the same  was returned to the postman. He further urged that the envelope bore the seal of Shri S.  P. Singh,  Advocate and  the appellant  could  not, therefore, know  that the  notice was from his landlords; he also pointed  out that  the appellant was illiterate and did not know English and since the address on the envelope as 969 well as the seal of the lawyer were in English the appellant could not  even know  who the  sender  of  the  notice  was. Counsel, therefore, urged that in the peculiar circumstances of the  case the learned District Judge had rightly recorded a finding  that the  knowledge of the contents of the notice could not  be imputed  to the  appellant and, therefore, the appellant could  not be  regarded as  a willful defaulter in the matter of payment of rent. In support of this contention strong reliance  was placed  by him  on the  decision of the Bombay High  Court in  the case of Vaman Vithal Kulkarni and Ors. v.  Khanderao Ram  Rao Sholapurkar  where the following observations of Beaumont, C. J., appear at page 251:           "In case of defendants 4 and 5 a registered letter      containing the  notice was sent to them duly addressed,      and service  : is alleged to have been refused. In fact      the refusal was not proved, as the postman who took the      letter and  brought it  back was not called. But in any      case, even if the refusal had been proved, I should not      be prepared  to hold that a register ed letter tendered      to the addressee and refused and brought back unopened,      was well served. There are, I know, some authorities in      this  Court  to  the  contrary,  but  it  seems  to  me      impossible to  say that  a letter has been served so as      to bring  the contents  to the  notice of the person to      whom the  letter is addressed, if the agent for service      states that in fact the notice was not served, although      the reason may have been that the addressee declined to      accept it.  One cannot assume that because an addressee      declines to  accept a particular sealed envelope he has      guessed correctly as to its contents " Counsel also referred to some other decisions including that of the  Andhra Pradesh  High Court  in Mahboob  Bi v. Alvala Lachmiah  but   these  other  decisions  do  not  touch  the aforesaid  aspect   of  visiting   the  addressee  with  the knowledge of  the contents.  Of the  refused notice but have expressed the view that refusal of registered notice without more may  not amount  to proper  service  and  hence  it  is unnecessary to  consider them.  But placing  strong reliance upon the observations of Chief Justice Beaumont quoted above counsel for the appellant urged that the High Court ought to have confirmed  the finding  of the  learned District  Judge that the  appellant could  not be presumed to have known the contents of  the notice or that the notice was one demanding arrears of  rent simply  because he  refused to  accept  the same.      On  the   other  hand,   counsel  for  the  respondents contended before  us that  both under  s. 27  of the General clauses Act, 1897 and s. 114 of

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970 the Indian  Evidence Act  presumption of  due service  could arise if  the notice  was sent  to the  tenant  by  properly addressing the  same, prepaying  and  sending  the  same  by registered post  and it  was pointed out that in the instant case as  against the  denial  by  the  appellant  there  was positive oath  of postman (Kund Ram P.W. 2) who was examined by the  respondents to  prove the  fact that  the registered letter containing  the notice  was tendered to the appellant and when  he declined  to accept  it the  postman  had  made endorsement in  his hand  on the envelope "Refused. Returned to the  sender". Counsel,  therefore, urged  that in view of such positive  evidence of  postman led  by the  respondents which had  been accepted  by the learned District Judge, the High Court  was justified in holding that the appellant must be imputed with the knowledge of the contents of the notice. In this  behalf counsel  for the respondents placed reliance on the Privy Council decision in Harihar Banerji and Ors. v. Ramshashi Roy  and Ors and Madras decision in Kodali Bapayya and Ors.  v. Yadavalli  Venkataratnam and  Ors and  the  two decisions of  the Allahabad  High Court  relied upon  by the High Court.  Counsel pointed  out that the Madras High Court in Kodali  Bapayya’s case  (supra) and  the  Allahabad  High Court in  its Full  Bench decision  in  Ganga  Ram  v.  Smt. Phulwati have  dealt  with  the  Bombay  decision  and  have expressed  their   disagreement  with   the  view  expressed therein.      Section 27  of the General Clauses Act, 1897 deals with the topic  ’Meaning of  service by post’ and says that where any Central  Act or  Regulation authorises  or requires  any document to  be served  by post,  then  unless  a  different intention  appears,  the  service  shall  be  deemed  to  be effected by  properly addressing,  pre-paying and posting it by registered  post, a  letter containing  the document, and unless the  contrary is proved, to have been effected at the time at  which the letter would be delivered in the ordinary course of post. The section thus arises a presumption of due service or  proper service  if the  document  sought  to  be served  is  sent  by  properly  addressing,  pre-paying  and posting  by  registered  post  to  the  addressee  and  such presumption  is   raised   irrespective   of   whether   any acknowledgement due  is received  from the addressee or not. It is  obvious that  when the section raises the presumption that the  service shall  be deemed  to have been effected it means the  addressee to  whom the communication is sent must be taken  to have  known the contents of the document sought to be  served upon  him  without  any  thing  more.  Similar presumption is  raised under  Illustration (f)  to s. 114 of the Indian  Evidence Act  whereunder it  is stated  that the Court 971 may presume  that the  common course  of business  has  been followed in  h a  particular case,  that is  to say,  when a letter is sent by post by pre-paying and properly addressing it the same has been received by the addressee. Undoubtedly, the presumptions both under s. 27 of the General Clauses Act as well  as under  s. 114 of the Evidence Act are rebuttable but in  the absence of proof to the contrary the presumption of proper  service or  effective service  on  the  addressee would arise.  In the  instant case,  additionally, there was positive evidence  of the  postman to  the effect  that  the registered envelope  was actually  tendered by  him  to  the appellant on  November 10, 1966 but the appellant refused to accept. In  other words, there was due service effected upon the appellant  by refusal.  In such  circumstances,  we  are

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clearly of the view, that the High Court was right in coming to the  conclusion that  the appellant  must be imputed with the knowledge of the contents of the notice which he refused to accept.  It is  impossible to  accept the contention that when factually there was refusal to accept the notice on the part of  the appellant  he could  not be  visited  with  the knowledge of  the contents of the registered notice because, in our  view, the  presumption raised  under s.  27  of  the General Clauses  Act as  well as  under s. 114 of the Indian Evidence Act  is one  of proper  or effective  service which must mean  service of  everything that  is contained  in the notice. It  is impossible to countenance the suggestion that before knowledge  of the  contents of  the notice  could  be imputed the  sealed envelope  must be opened and read by the addressee or  when the addressee happens to be an illiterate person the  contents should  be read  over  to  him  by  the postman or  someone else.  Such things do not occur when the addressee is  determined to  decline to  accept  the  sealed envelope. It  would, therefore,  be reasonable  to hold that when  service   is  effected   by  refusal   of   a   postal communication  the  addressee  must  be  imputed.  with  the knowledge of  the contents  thereof and  in our  view,  this follows upon the presumptions that are raised under s. 27 of the General  Clauses Act,  1897 and  s. 114  of  the  Indian Evidence Act.      Turning to  the Bombay  decision in Vaman Vithal’s case (supra), We  would like to point out two aspects that emerge clearly from  the very observations which have been strongly relied upon  by counsel  for the  appellant.  In  the  first place, the  observations clearly  show that  the refusal  to accept the  notice was not satisfactorily proved in the case inasmuch as  the postman  who took the letter and brought it back  had   not  been  examined;  consequently  the  further observations  made   by  the   leaned  Chief   Justice  were unnecessary for  decision on the point and as such will have to be regarded as obiter. 972 Secondly, while  making those observations the learned Chief Justice WAS  himself conscious  of the  fact that there were some authorities  of that  Court taking  the contrary  view. Having regard  to these aspects it is difficult to hold that the  concerned  observations  lay  down  the  correct  legal position in  the matter. In any event we approve of the view taken by  the Allahabad  High Court  in its three decisions, namely, Sri  Nath’s case,  Fanni Lal’s  case and Ganga Ram’s case (supra)  and would  confirm the High Court’s finding on the point in favour of the respondents.      Counsel for  the appellant then faintly argued that the respondents suit  was not maintainable under s. 14(1) of the Act inasmuch as no permission of the District Magistrate had been obtained  by the  respondents before filing the suit as required by  s. 14 and in this behalf reliance was placed on s. 14(a) of the Act which ran thus:      "14. Restrictions  on eviction.  No suit shall, without      the permission  of the District Magistrate, be filed in      any Civil  Court against a tenant for his eviction from      any  accommodation   except  on  one  or  more  of  the      following grounds, namely:           (a)  that the  tenant has willfully failed to make                payment to  the landlord  of any  arrears  of                rent within one month of the service upon him                of a notice of demand from the landlord." According  to   counsel  for  the  appellant  the  aforesaid provision clearly  shows that  under the  Act two safeguards were available to a tenant- (i) eviction could not be had by

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any landlord  except on one or more of the grounds specified in cls.  (a) to  (f) of  s. 14 and (ii) no suit for eviction even on  those grounds specified in cls. (a) to (f) could be instituted  without   the   permission   of   the   District Magistrate, and admittedly the landlords in the instant case had filed  the suit  against the appellant without obtaining the permission  of the  District Magistrate.  He, therefore, urged that  the Civil Court had no jurisdiction to entertain the suit and the decree was without jurisdiction.      It must  be observed that no such contention was raised by the  appellant in  any of  the  Courts  below  presumably because the  appellant as  well as  this lawyer  knew how an identical provision  contain ed  in  s.  3(1)  of  the  U.P. (Temporary) Control  of Rent  and  Eviction  Act,  1947,  an allied enactment, had been judicially interpreted by in this Court in Bhagwan Dass v. Paras Nath Section 3 of the U.P. Act 3 of 1947 ran thus: 973           "3.  Restrictions  on  evictions.-Subject  to  any           order passed  under sub-section (3), no suit shall           without the permission of the District Magistrate,           be filed  in any  Civil Court against a tenant for           his eviction from any accommodation, except on one           or more of the following grounds:                (a)  that the  tenant is  in arrears  of rent                     for  more  than  three  months  and  has                     failed to  pay the  same to the landlord                     within one month of the service upon him                     of a notice of demand."      This Court  in Bhagwan  Dass case Asupra) has explained at page  305 of  the report  the legal position arising on a grammatical construction of s. 3(1) thus:           "Section (3)  1 does  not restrict  the landlord’s           right to  evict his  tenant on  any of the grounds           mentioned in  cls. (a) to (g) of that sub-section.           But if  he wants to sue his tenant for eviction on           any ground  other than  those mentioned  in  those           clauses then  he has  to obtain  the permission of           the  District   Magistrate  whose   discretion  is           subject to any order passed under sub-s. (3) of s.           3  by   the  Commissioner.   These  are  the  only           restrictions placed  on the power of a landlord to           institute a suit for eviction of his tenant." It would be conducive to judicial discipline to interpret an identical provision  contained  in  s.  14(1)  of  the  U.P. Cantonment (Control  of Rent  & Eviction)  Act,  1952  in  a similar manner.  In other  words,  under  s.  14(1)  of  the concerned Central  Act permission of the District Magistrate was required  if the  landlord sought eviction of his tenant on any  ground other than those specified in cls. (a) to (f) and not  when it  was sought on any of the grounds specified in cls.  (a) to  (f).  (If  may  be  stated  that  both  the enactments have  since been repealed). It is, therefore, not possible to  accept the  contention of  the counsel  for the appellant that  the instant  suit filed  by the  respondents against the  appellant could not be entertained by the Civil Court.      In the  result  the  appeal  fails  and  is  dismissed. However, having regard to all the facts and circumstances of the case there will be no order as to costs and we grant the appellant six months time to vacate.      DESAI,  J.-I  have  very  carefully  gone  through  the judgment prepared  by my  learned brother  Mr. Justice V. D. Tuzapurkar, but  I regret  my inability  to agree  with  the same.

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974      The relevant  facts leading  to the  appeal by  special leave have  been succinctly set out in the main judgment and therefore, I  would straightway  proceed to  deal  with  the three important questions raised in this appeal.      The first  and the principal question which goes to the root of  the matter  is about  the construction  of  section 20(2) (a)  of the  Uttar Pradesh Urban Buildings (Regulation of Letting,  Rent &  Eviction) Act,  1972  (’Rent  Act’  for short). It reads as under:      "20. Bar  of suit  for eviction  of  tenant  except  on           specified grounds:-            (2)  A suit  for the  eviction of a tenant from a                building  after   the  determination  of  his                tenancy may  be instituted  on one or more of                the following grounds namely:            (a) that the tenant is in arrears of rent for not                less than  four months, and has failed to pay                the same  to the  landlord within  one  month                from the date of service upon him of a demand                :"      There is  a proviso  to this  sub-section which  is not material for the purpose of this appeal.      A brief  resume of concurrently found facts which would high  light   the  question   of   construction   would   be advantageous. Appellant  was inducted  as a  tenant  of  the premises by  its former  owner on  a rent  of Rs.  250/- per annum in  the year  1964, on a request by the then landlord, appellant-tenant surrendered  a  portion  of  the  premises, comprising two  rooms, a  kitchen, a bathroom and a verandah at the  back of  the shop,  retaining only possession of the shop, consequently  reducing the  rent by  agreement between the parties  at the  rate of Rs. 100/- per annum. It is thus an agreed  and incontrovertible  fact  that  the  appellant- tenant is a tenant of a shop on an yearly rent of Rs. 100/-, payable at the end of every year.      The focus should immediately be turned to the provision of law  under which the landlord seeks to evict this tenant. According to  respondent-landlord she  served  notice  dated November 9,  1966, terminating  the tenancy of the appellant as the  appellant-tenant was  a defaulter within the meaning of s.  20(2) (a)  and, therefore,  she all was entitled to a decree for eviction as she has satisfactorily proved all the requirements or  ingredients of  s. 20(2) (a). Accepting the finding of fact that the appellant is a tenant liable to pay rent 975 @ Rs. 100/- per annum, the crux of the matter is whether his case is covered by s. 20(2) (a).      What does  s. 20(2)  (a) postulate  and  what  are  its components which  when  satisfied,  the  landlord  would  be entitled  to  evict  the  tenant  ?  On  analysis  following ingredients of  s. 20(2) (a) would emerge each of which will have to be satisfied before the landlord 1 would be eligible to obtain a decree for eviction, viz:           (i)  Tenant must  be a tenant of premises governed                by the Rent Act;           (ii) That the tenant is in arrears of rent for not                less than four months;          (iii) That such a tenant has to pay rent in arrears                within a period of one month from the date of                service upon him of a notice of demand.      In this  case, the  tenant  is  a  tenant  of  premises governed by tho Rent Act.      The crucial  question is whether the second ingredient,

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as extracted  above,  is  satisfied  by  the  landlord.  The attention has to be focused on the expression ’in arrears of rent  for  not  less  than  four  months’.  What  does  this expression  signify   ?  As   contended  on  behalf  of  the respondent that  whatever be the default in payment of rent, the notice can be served after the default has continued for a period  of four  months, and  failure to  comply with  the requisition in the notice would disentitle the tenant to the protection of  Rent Act. Alternatively it was contended that the expression  in arrears  of rent  for not  less than four months’ on  a literal grammatical construction would signify that rent  is payable  by the  month and that the tenant has committed a  default in  payment of  four months’  rent  and further failed  to comply  with the  requisition made in the notice within  the stipulated  period of  one month and only then the  protective umbrella  of  the  Rent  Act  would  be removed and  the tenant  would be  exposed to  a decree  for eviction.      The  two  rival  constructions  raised  a  question  of construction of a sub-section in a statute primarily enacted as can  be culled  out from  the long and short title of the Rent Act, being regulation of letting and rent and arbitrary eviction of  tenant from  the premises to which the rent Act would apply.  It is  a socially  beneficent statute  and  in construing such  statute certain  well recognised  canons of construction have  to be  borne in  mind.  Undoubtedly,  the dominant purpose  in construing  the statute is to ascertain the intention of the legisla- 976 ture. This  intention, and,  therefore, the  meaning of  the statute, is primarily to be sought ill the words used in the statute  itself,   which  must,   if  they   are  plan   and unambiguous, be  applied as  they stand, however strongly it may be  suspected that  the result  does not  re present the real  intention   of   legislature   (see   Inland   Revenue Commissioner v. Hinchy). In approaching the matter from this angle, it  is a  duty of  the Court  to give  fair and  full effect to  statute which  is plain  and unambiguous  without regard to the particular consequence in a special case. Even while giving  liberal construction  to  socially  beneficent legislation, if  the language is plain and simple the making of a  law being a matter for the legislature and not courts, the Court must adopt the plain grammatical construction (see River Wear Commissioners v. Adamson) The Court must take the law as  it is.  And, accordingly, it is not entitled to pass judgment on  the propriety  or wisdom of making a law in the particular form  and further  the Court  is not  entitled to adopt the  construction of  a statute  on its  view of  what Parliament  ought   to  have   done.   However,   when   two constructions are  possible and  legitimate ambiguity arises from the  language employed, it is a plain duty of the Court to prefer  and adopt that which enlarges the protection of a socially beneficent  statute rather than one which restricts it. In  Mohd. Shafi  v. Additional District & Sessions Judge (VII), Allahabad  and Others,  this Court while interpreting the explanation  (iv) to s. 21 of the Rent Act observed that where the  language is  susceptible of  two interpretations, the Court  would prefer  that which on larges the protection of the  tenants rather  than one  which restricts it. It was further  observed  that  the  construction  that  the  Court adopted  would  be  more  consistent  with  the  policy  and attainment of  the  legislation  which  is  to  protect  the possession of  the tenant  unless the landlord establishes a ground for  eviction. Similarly in Gurucharan Singh v. Kamla Singh & Ors. while interpreting the provision of s. 6 of the

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Bihar Land  Reforms Act,  1950, this Court observed that the Court was  called upon  to interpret  a land reforms law are not just an ordinary state and, therefore, the socioeconomic thrust of  the law  in these areas should not be retarded by judicial construction  but filliped  by  the  legal  process without parting  from the object of the Act. It must also be emphasised that  where two  constructions are  possible, the one that  must be  preferred is  one which would accord with reason and justice (see H. H. Maharaja- 977 dhiraja Madhav  Rao Jivaji  Rao Scindia Bahadur of Gwalior & Ors. v. Union of India & Another.      Bearing in  mind this  interpretative approach  let  us hark back to the expression used in s.20(2)(a) and ascertain whether the  exception is  susceptible of  one  construction only or  more than  one construction  and whether  there  is ambiguity and  if so,  in which direction the interpretative jurisprudence must move.      The expression  "the tenant  is in  arrears of rent for not less than four months" may suggest that the tenant is in arrears of rent for one or any number of months and that the arrears have  fallen due  four months  back meaning  thereby that within  four months there was no attempt on the part of the tenant  to pay up the arrears and cure the default. This construction would imply that if the tenant is in arrears of rent for one month only, an action under the relevant clause can be  commenced against  him if this infault has continued for a period of four months even if the tenant has paid rent for subsequent  months and  on the  expiry of  the period of four months  from the  date on which the rent had become due and payable  for one  month a notice of demand can be served and on  the  failure  of  the  tenant  to  comply  with  the requisition made  in the  notice he  would be  liable to  be evicted. In other words, a period of four months must elapse between the  date of  default  and  the  service  of  notice irrespective of  the fact  whether the default is in payment of one  month’s rent  or more than one month’s rent. In this constriction it  is implicit  that failure  to pay  rent for four different  months is  not a sine qua non for commencing action under  s. 20(2) (a). What is of the essence of matter is that a period of four months must elapse between the date of default  complained of  and service  of notice  under  s. 20(2) (a).  It was said that the legislature has given locus poenitentiae to  the tenant to repair the default within the period of  four months.  This approach overlooks the obvious that before  action can  be commenced  under s.  20(2) (a) a notice  has   to  be   served  and  tenant  is  given  locus poenitentiae to  repair the  default within  one  month.  It appears that  by s.  43 of the Rent Act the United Provinces (Temporary)  Control   of  Rent   and  Eviction   Act,  1947 (’Repealed Act’  for short)  was repealed.  Section 3 of the Repealed Act  enumerated grounds  on which a tenant could be evicted. Sub-clause  (a) of  s. 3 provided that the landlord would be  entitled to eviction of a tenant if the tenant was ’in arrears  of rent  for more  than three  months’ and  had failed to  pay the  same to the landlord within one month of the service  upon him  of the notice of demand. The language employed in the repealed provision led 978 the Court to hold that whatever be the default in payment of rent, a  period of three months should have expired from the date of  default whereafter  alone  the  landlord  would  be entitled to  serve a notice as provided in the relevant sub- clause. It  was so  held by  the Allahabad High Court in Ram Saran Das v. L. Bir Sain, but this decision was overruled in

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Jitendra Prasad  v. Mathur  Prasad. In  order to  avoid ally such controversy,  in the  Repealing statute  the expression ’arrears of  rent for  more  than  three  months’  has  been substituted by  the expression ’arrears of rent for not less than  four  months’.  This  is  contemporaneous  legislative exposition  which   clearly  brings   out  the   legislative intention that  the landlord  would be entitled to evict the tenant if  the rent  is in  arrears for  not legs  than four months. Therefore,  it would  clearly imply  that before the landlord can  commence  action  under  sub-clause  (a),  the tenant must  have committed default in payment of rent for a period  of  four  months.  Therefore,  the  first  suggested construction is  not borne  out by  the language employed in the section.      The question  still remains:  what does  the expression ’in arrears of rent for not less than four months’ signify ? It is  implicit in  the expression  that the  rent  must  be payable by  month. Irrespective  of  the  fact  whether  the tenancy is  a yearly  tenancy or  a monthly  tenancy, it  is implicit in  sub-clause (a)  that either  by the contract of lease or  by oral  agreement or  by long usage the tenant is liable to  pay rent  at the  end of  every month.  In  other words, the  unit for  computation of rent is one month, that is, rent  becomes due  and payable  every month.  It is only such a  tenant who  may fall in arrears for a period of four months. Every  month the  tenant would  be liable to pay the rent in  the absence of a contract to the contrary. Thus the rent becomes  due and  payable at the end of every month. As soon as  the month  is over the rent becomes due and payable and failure  on the part of the tenant to pay the same would dub him as a tenant in arrear of rent for one month. If this process goes on meaning thereby that a period of four months having expired and for each of the four months the rent when It became  due and  payable was  not paid,  then  alone  the tenant could  be said  to be a tenant in arrears of rent for not less  than four  months. Two definite ingredients emerge from the  expression ’the  tenant is  in arrears of rent for not less  than four  months’ (i) that the rent is payable by month; and  (ii) the tenant has committed default in payment of rent  for four  different months  and that  this  default subsists and continues on the date when the landlord invokes the 979 provision of  clause (a)  and proceeds  to serve a notice of demand.   Again, if  within a  period of  one month from the date of receipt of the notice the tenant pays up the arrears of rent he does not lose the protection of the Rent Act. The legislature clearly intended to cover those cases of default in payment  of rent  under clause  (a) where the contract of lease provided  for payment  of  rent  every  month  meaning thereby that the unit for liability to pay rent is one month and secondly  the  tenant  has  committed  default  on  four different  occasions   of  four  different  months  or  four different units  agreed upon  for payment  of rent  and that they differ  the facility  to pay  the same  has accrued. As stated earlier this is implied in the expression ’the tenant is, in arrears of rent for not less than four months.      In this connection one can profitably refer to s. 12(3) (a) of the Bombay Rents, Hotel & Lodging House Rates Control Act, 1947, which reads as under:           "Where the  rent is payable by the month and there      is no  dispute regarding the amount of standard rent or      permitted increases,  it such  rent or increases are in      arrears for  a period  of six  months or  more and  the      tenant neglects  to  make  payment  thereof  until  the

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    expiration of  the period  of one  month  after  notice      referred to  in sub-section  (2), the  (2) (Court shall      pass a  decree) for  eviction  in  any  such  suit  for      recovery of possession."      The expression  used there  is that the rent is payable by month  and the  tenant is  in arrears for a period of six months.  In  the  Rent  Act  under  discussion,  a  conjoint expression is used that a tenant is in arrears of rent for a period of  not less  than four  months. It  only means  that where the  rent is  payable by  month and  the tenant  is in arrears of  rent for  not less than four months, and that is the clearest intention discernible from the language used in the relevant clause.      It was, however, contended that this construction would give an  undeserved advantage to the defaulting tenant where the rent  is not  payable by month. The contention is that a landlord who  had agreed  to accept  rent on an yearly basis would be  at the  mercy of  the tenant  because even  if the default is  contumacious the  landlord would not be entitled to evict the tenant and that such could not be the intention of  the  legislature.  It  was,  therefore,  said  that  the expression ’the  tenant is  in arrears  of rent for not less than four 980 months’ is  also susceptible  of the  meaning that where the rent is  payable by  year and after the year is over and the rent has  become due  and payable if the tenant has not paid the rent for four months his case would be covered by clause (a). If  a tenant  is under  a contract with the landlord to pay rent at the end of a specific year agreed to between the parties, could  he be  said to  be a  tenant arrears for not less than four months even if he has defaulted in payment of rent at the end of one year l How can a tenant who is to pay rent on the expiry of a specified year be in arrears of rent for not  less than four months ? And if that construction is adopted, a  tenant who  has committed  default in payment of rent for  one month  and the  default has  continued without repair for  a period  of Four months even though he has paid rent for subsequent months he would be liable to be evicted, a construction  which ought  to be  rejected on  legislative exposition by  change in  expression adopted in the repealed Act and  substituted in  the present  Act  discussed  herein above.  If   that  construction  is  rejected  it  would  be difficult to  accept the  construction that even of the rent is payable  by year  once the  year is  over and a period of four months  has elapsed  he could be said to be a tenant in arrears of  rent for not less than four months. The language does not  admit of  this construction.  Therefore, where the rent is payable by the year clause (a) is not attracted. Now the wild  apprehension expressed  on behalf  of the landlord that such a construction would give an unfair advantage to a tenant who  is liable  to pay yearly rent need not detain us because the  wisdom of enacting a law in a certain manner is for the  legislature to  decide and  not for  the  court  to impose. It  may be  that the legislature would have intended that such landlords who relied on the income from rent month after month must have a sanction which can be applied if the tenant commits  default in payment of rent of four different months but  a landlord  who apparently  does not depend upon the rental income by agreeing to accept yearly rent need not have that  sanction and  it would  be still  open to  such a landlord to  file a suit merely for recovery of rent and not for eviction.  Such a thing is not unknown to law because in permanent tenancy  and in  tenancies of  long  duration  the landlords can  only sue for rent and not for eviction on the

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tenant committing  default in payment of rent. Therefore, on examining both the rival constructions one which extends the protection deserves  to be accepted in view of the fact that the legislature  never intended  to  provide  a  ground  for eviction for  failure to  pay rent  in case  of leases where yearly rent was reserved. Rent Act was enacted to fetter the right of  re-entry of landlord and this construction accords with the avowed object of the Rent Act. 981      In the  instant case  the parties  are ad idem that the rent is  payable by year at the rate of Rs. 100/- per annum. In such  a case it could not be said that this tenant was in arrears of  rent for  not less  than four  months. His  case would not  be covered  by s.  20(2) (a) of the Rent Act and, therefore, the  landlord would  not be  entitled to a decree for eviction  on this ground and that was the sole ground on which eviction has been ordered.      The second  contention is  that the  High Court  was in error in  interfering with  the concurrent  finding of facts while hearing  second appeal  in February, 1979 and that too without framing  the point of law which arose in the appeal. The disputed finding of fact is about the service of notice. If a  landlord seeks  eviction on  the  ground  of  tenant’s default in  payment  of  rent  under  s.  20(2)  (a)  it  is obligatory upon  him to serve a notice of demand of the rent in arrears  On the  tenant and can only seek eviction if the tenant fails  to comply  with the  requisition made  in  the notice. The  appellant tenant  in terms  contended  that  no notice  was  served  upon  him.  On  the  assertion  of  the respondent landlord  that notice dated November 9, 1966, was served upon  the appellant  tenant on November 10, 1966, but he refused  to accept the same and the refutation thereof by the tenant  that no notice was offered to him by the postman nor was  any notice  refused by  him, a  triable issue arose between the  parties. The  learned trial  judge framed Issue No. 7  on the  question of  service of notice. He recorded a finding that the appellant tenant was not served a notice of demand and  of ejectment and answered the issue in favour of the appellant  tenant. On  appeal by the respondent landlord the appellate  court framed  point no.  2 on the question of service of  notice and  answered it  by observing  that  the defendant tenant refused to accept the registered notice but no knowledge can be attributed to him of the contents of the registered envelope  and, therefore, the tenant could not be said to  be guilty  of wilful  default on  the expiry of one month after  the service of notice. He accordingly confirmed the finding  of the  trial court that the plaintiff landlord is not  liable  to  a  decree  of  eviction  on  the  ground mentioned in  s. 20(2)(a).  The landlord approached the High Court in second appeal.      When this  appeal was  heard, section  100 of the Civil Procedure Code  after its amendment of 1976 was in force. It restricted the jurisdiction of the High Court to entertain a second appeal  only if the High Court was satisfied that the case involved  a substantial  question of law. Sub-section 4 cast a  duty on  the court  to formulate  such a substantial question of  law and  the appeal  has to  be  heard  on  the question so  formulated.  It  would  also  be  open  to  the respondent 982 at the  hearing of  the appeal to contend that the case does not involve  such a question. Even prior to the amendment of Section 100,  the High  Court ordinarily  did not  interfere with the concurrent findings of fact. This position has been repeatedly asserted  and  one  need  not  go  in  search  of

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precedent  to  support  the  proposition.  However  one  can profitably refer  to R.  Ramachandran  Ayyar  v.  Ramalingam Chettiar. After  examining the  earlier  decisions  and  the decision of  the Privy  Council in  Mst. Durga Chaudhrain v. Jawahar Choudhary  Gajendragadkar J. speaking for this Court in terms  spelt out  the jurisdiction  of the  High Court in second appeal as under:           "But the  High Court  cannot  interfere  with  the      conclusions of  fact recorded  by lower appellate Court      however erroneous the same conclusions may appear to be      to the  High  Court,  because,  as  the  Privy  Council      observed, how  ever gross or in excusable the error may      seem to  be, there  is no  jurisdiction under s. 100 to      correct that error". This view  was  re-affirmed  in  Goppulal  v.  Dwarkadhishji wherein after  reproducing the  concurrent finding  of  fact this Court observed that this concurrent finding of fact was binding on  the High  Court in  second appeal  and the  High Court was  in error in holding that there was one integrated tenancy of six shops.      In the  facts of  this case,  there  was  a  concurrent finding that  the statutory  notice as  required by s. 20(2) (a) was  not served upon the tenant and, therefore, the High Court was in error in interfering with this finding of fact. However, it  is not  necessary to  base the judgment on this conclusion because  it was  rightly said  on behalf  of  the respondent that  whether  the  notice  was  offered  to  the petitioner tenant  and he  refused to  accept the  same  the finding is  not concurrent  because the  appellate court has held that  the notice  was offered but the tenant refused to accept the same and, therefore, on the refusal to accept the notice there  was no  concurrent finding. This contention is legitimate because  the appellate  court held that notice as required by  law was  not served  because even if the tenant refused to  accept the  notice the knowledge of the contents of the  registered envelope  not opened  by  him  cannot  be imputed to  him, and,  therefore, there  was no  service  of notice as  required by  s. 20(2)  (a). The  first  appellate court was  of the  view that  in the absence of knowledge of the demand  of rent  in arrears as alleged in the notice the tenant cannot be said 983 to be  guilty of  wilful default  so as  to  be  denied  the protection of the Rent Act.      This accordingly  takes me  to the  third contention in this appeal. The third contention is that even if this Court agrees with  the High  Court in  holding that  the notice in question was tendered by the postman to the appellant tenant and he  refused to  accept the  same n: and, therefore, this refusal  amounts   to  service  within  the  meaning  of  s. 20(2)(a), yet as the knowledge of the contents of the notice would  reflect   on  subsequent   conduct   as   wilful   or contumacious, it  is not  sufficient that a notice is served or tendered and refused but it must further be shown that in the event of refusal the tenant did it with the knowledge of the contents  of the  registered envelope and his subsequent conduct is  motivated. The  question then  is; What would be the effect  of a  notice sent by registered post and refused by a  tenant on  the question  of his  knowledge  about  the contents of  the notice  and his  failure to  act? Would  it tantamount  to  an  intentional  conduct  evidencing  wilful default on  his part?  This aspect cannot be merely examined in  the   background   of   some   precedents   or   general observations.  One   has  to  examine  this  aspect  in  the background of  Indian conditions  or in the words of Krishna

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Iyer, J.,  ’the legal  literacy in rural areas and the third world jurisprudence.’      Before we  blindly adhere  to law  bodily imported from western countries  we must not be oblivious to the fact that the statutes  operating in  the western  countries are meant for a  society if  not 100 per cent., 99 per cent. literate. We must consciously bear in mind that our society especially in the  semi-urban and rural areas is entirely different and wholly uncomparable  to the western society. A literate mind will react  to a  problem presented to him in a manner other than an  illiterate mind  because illiteracy breeds fear and fear oriented  action cannot  be rationally  examined on the touchstone of legal presumptions. To articulate the point as it arises in this case, let one put his feet in the shoes of a rural illiterate person to whom a registered envelope by a postman  is   presented.  Does   it  require   too  much  of imagination to  conclude that  he will  be gripped with fear and he  may react  in a manner which will be his undoing? He would believe  that by  refusing to  accept  the  registered envelope he  would put  off the  evil rather than accept the same and  approach a  person who can advise him and meet the situation. Can this action of fear gripped mind inflict upon the person an injury flowing from the assumption that he not only refused  the registered  envelope  with  the  conscious knowledge of the fact that it contained a notice by a lawyer on behalf of his landlord and that it accused him of wilful 984 default in  payment  of  rent  and  that  if  he  would  act rationally he would repair the default by tendering the rent within the period of one month granted by the statute? If he is deemed  to have  acted consciously is it conceivable that he would  invite injury  by  sheer  refusal  to  accept  the registered envelope  rather than  know the con tents or make them knowable  to him and meet the charge of wilful default. As  was  said,  again  by  Krishna  Iyer,  J.,  which  bears quotation:           "The Indian Courts interpret laws the Anglo-Indian      way, the  rules of  the game  having been so inherited.      The basic principles of jurisprudence are borrowed from      the sophisticated  British system, with the result that      there is  an exotic touch about the adjectival law, the      argumentative method  and the  adversary system, not to      speak of the Evidence Act with all its technicalities". Lord Devlin recently said:           "If our business methods were as antiquated as our      legal methods,  we would be a bankrupt country....There      is need  for a  comprehensive enquiry into the rules of      our procedure  backed by a determination to adopt it to      fit the functions of the welfare State". This is  much more apposite in the conditions of our society and this  was noticed  by Beaumost, C. J. way back in fourth decade of this century in Waman Vithal Kulkarni & Others. v. Khanderao Ram Rao Sholapurkar. An exactly identical question arose before  the Division  Bench of  the Bombay High Court. The facts  found were  that the registered letter containing the notice  was sent  to defendants 4 & 5 duly addressed and service was alleged to have been refused. The contention was two-fold that  the refusal  was not proved but alternatively it was  contended that  even if it was proved, the addressee could not  be imputed  with the knowledge of the contents of the registered  envelope. The  pertinent observation  is  as under:           "In the  case of  defendants 4  and 5 a registered      letter containing  the notice  was sent  to  them  duly      addressed, and service is alleged to have been refused.

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    In fact  the refusal was not proved, as the postman who      took the letter and brought it back was not called. But      in any  case, even  if the  refusal had  been proved, I      should not be prepared to hold 985      that a  registered letter tendered to the addressee and      refused and  brought back  unopened, was  well  served.      There are,  I know,  some authorities  in this Court to      the contrary, but it seems to me impossible to say that      a letter has been served so as to bring the contents to      the  notice  of  the  person  to  whom  the  letter  is      addressed, it the agent for service states that in fact      the notice was not served, although the reason may have      been that  the addressee  declined to  accept  it.  One      cannot assume  that because  an addressee  declines  to      accept a  particular sealed  envelope  he  has  guessed      correctly as  to its  contents.  Many  people  in  this      country make  a practice  of always  refusing to accept      registered letters,  a practice  based, I  presume,  on      their experience  that such  documents usually  contain      something unpleasant.  To that,  it is  clear that this      notice was not served on three of the defendants".      Learned counsel for the respondent tried to distinguish this decision  by observing that the court did hold that the refusal  was   not  proved,   therefore,  the  rest  of  the observation was  obiter. It  is not  far a  moment suggested that the  decision of  the Division Bench of the Bombay High Court is  binding on  this Court  but  the  reasoning  which appealed to  the Division  Bench in  1935 is  all  the  more apposite at  present. The Division Bench noticed that in the society from  which the defendants came, there was a feeling that such  registered letters  usually  contained  something unpleasant. Is  there anything  to suggest that this feeling is today  displaced or destroyed? The Division Bench further noticed that  many people in India make a practice of always refusing to  accept  registered  letters  and  the  practice according  to   the  Division   Bench  was  based  on  their experience that  such documents  usually contained something unpleasant. The  reaction is  to put  off the  evil  by  not accepting  the  envelope.  Could  such  ignorant  illiterate persons be  subjected to  a legal inference that the refusal was conscious knowing the contents of the document contained in the  registered envelope? To answer it in the affirmative is to  wholly ignore  the Indian  society. And  this concept that the registered envelope properly addressed and returned with an  endorsement of  refusal must  permit  a  rebuttable presumption that the addressee refused it with the knowledge of  the   contents  is  wholly  borrowed  from  the  western jurisprudence. I  believe it  is time  that  we  ignore  the illusion and  return to  reality. Reference was also made to Appabhai Motibhai  v. Laxmichand  Zaverchand & Co., but that case does not touch the point. In Mahboob Bi v. Alvala 986 Lachmiah, an  almost identical  question figured  before the Andhra Pradesh  High Court. In that case the Rent Controller issued a  notice in  respect of  the  proceedings  initiated before him  by the  landlord for the eviction of the tenant, to the  tenant by  registered  post  and  the  envelope  was returned with  the  endorsement  of  refusal  and  the  Rent Controller set down the proceedings for ex parte hearing and passed a decree for eviction. The tenant under the decree of eviction preferred an appeal in the City Small Causes Court. A  preliminary  objection  was  raised  by  the  respondent- landlord that  the appeal was barred by limitation as it was filed six days after the time allowed for filing the appeal.

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The appellant-tenant countered this by saying that he had no knowledge of  the proceedings before the Rent Controller and that he  was never  served with  the notice  of  proceedings before the  Rent Controller.  The  relevant  rule  permitted service of  notice by  registered post.  After examining the relevant rule  the Court  accepted  the  contention  of  the tenant observing as under:           "Moreover nothing  has been  placed before  me  to      show that  there is  any duty  cast upon  any person to      receive every letter or notice sent by registered post,      nor does  the refusal  to receive  has  been  made  the      subject-matter of any presumption which may arise under      sec. 114  of the Evidence Act. Then again, there is the      practical difficulty  of having to import the knowledge      of the  date of hearing or the precise proceedings with      which the registered notice is concerned in the case of      a mere refusal to receive a registered notice".      The Court  thus was  of the  view that  even if refusal amounted to  service, yet  it is  not service as required by law  to   fasten  a  liability  on  the  tenant  because  no presumption can  be raised  that the  refusal war,  with the conscious  knowledge  of  the  contents  of  the  registered envelope. Undoubtedly,  our attention  was also  drawn to  a contrary view  taken by  a Division  Bench of  the Allahabad High Court  in Fannilal  v. Smt.  Chironja. It was contended that  even   if  the   registered  letter   was  refused  no presumption of knowledge of the contents of the letter could in law  the raised  against the  tenant. In  support of  the submission reliance  was placed  on Amarjit  Singh  Bedi  v. Lachchman Das,  an unreported  decision of a single judge of the Allahabad  High Court and the decision of Beaumont, C.J. in Waman  Vithal Kulkarni’s  case. The Division Bench of the Allahabad High  Court did  not accept  the view of Beaumont, C.J. The Court was of the opinion that a presumption of fact would arise under 987 s. 114  of the  Evidence Act  that the  refusal was with the knowledge of  the contents  of the  registered envelope. The Court has not considered the specific Indian conditions, the approach of  rural Indians  to registered  letters  and  has merely gone  by the  technical rules of Evidence Act, which, as experience  would show,  could sometimes  cause more harm and lead  to injustice  through law.  The contrary Allahabad decision does not commend to me. On the contrary, the Bombay view is  in accord  with the  conditions of society in rural India and I do not propose to make any distinction even with regard to urban areas where also there are a large number of illiterates Even  in the  case of a semi-literate person who is in  a position  to read and write he could not be accused of legal  literacy. Therefore,  it is not possible to accept the submission  that mere refusal would permit a presumption to be  raised that  not only  the service  was legal but the refusal was  the conscious act flowing from the knowledge of the contents of the letter.      How  dangerous   this  presumption  is  can  be  easily demonstrated, and  how  it  would  lead  to  miscarriage  of justice can be manifestly established. Once knowledge of the contents of  the registered  envelope  is  attributed  to  a person to  whom a  registered envelope  is sent  and who has refused to accept the same, that this was an act accompanied by the  conscious knowledge of the contents of the letter he who may  be an innocent defaulter or presumably no defaulter at all,  would be  charged with  a contumacious  conduct  of being a  wilful defaulter.  The Rent  Act does  not seek  to evict a  mere defaulter  That is  why a provision for notice

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has been  made. If  even after notice the default continues, the tenant can be condemned as wilful defaulter. Could he be dubbed   guilty    of   conscious,   wilful,   contumacious, intentional conduct  even when  he did  not know what was in the  registered   envelope?  In  my  opinion,  it  would  be atrocious to  impute any  such knowledge to a person who has merely been  guilty of  refusing to  accept  the  registered notice. Where  service of notice is a condition precedent, a dubious service  held established  by examining  the postman who must  be delivering hundreds of postal envelopes and who is ready  to go  to the witness box after a long interval to say that  the offered  the envelope  to the addressee and he refused to  accept the  same, would  be travesty of justice. And if  this condition precedent is not fully satisfied, the consequent conduct  cannot  be  said  to  be  wilful.  In  a slightly different  context in  Commissioner of  Income-tax, Kerala v.  Thayaballi Mulla  Jeevaji  Rapasi  (decd.),  this Court held that service of the notice under 988 s. 34(1)(a)  of the  Income-tax Act, 1922, within the period of limitation  being a  condition precedent, to the exercise of jurisdiction,  if no  notice is  issued or  if the notice issued is shown to be invalid, then the proceedings taken by the Income-tax  Officer without  a notice or in pursuance of an invalid notice would be illegal and void.      It was,  however, contended  that if  the Court accepts the legal contention as canvassed on behalf of the appellant it would  be impossible  tc serve  the notice as statutorily prescribed. This  wild apprehension is wholly unfounded. The notice is  required to be served in the manner prescribed by s. 106  of  Transfer  of  Property  Act  which,  inter-alia, provides for  affixing a  copy of the notice on the premises in possession  of tenant.  Therefore, it cannot be said that the approach of the Court would render it impossible for the landlord to  meet with  the statutory requirement of service of notice before Commencing the action for eviction.      Having,   therefore,    examined   the    three   vital contentions, in  my opinion  the suit  of the  landlord must fail on  the ground  that the  rent was not payable by month and, therefore,  section 20(2)  (a) is  not  attracted.  And further, even if it is attracted, as the statutory notice as required by  s. 20(2)  (a) was  not  served,  a  decree  for eviction cannot  be passed  on the only ground of default in payment of rent.      I would  accordingly allow  this appeal and dismiss the suit of  the respondent for eviction but with no order as to costs in the circumstances of the case. S.R.                                       Appeal dismissed. 989