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Allenburry Engineers Private Ltd vs Ramakrishna Dalmia & Ors on 15 September, 1972

"6. In these circumstances, two questions were sought to be raised by Mr. Chagla. The first was that there being no dispute between the parties that the relationship between them was that of landlord and tenant and the respondents having accepted all along the said rent of Rs. 1800/- a month, the Court must proceed upon the basis that the occupation of the premises by the appellant-company was in the capacity as a tenant. According to him, if the appellant-company, can establish that, that tenancy was for manufacturing purposes, the presumption laid down in Section 106 of the Transfer of Property Act, under which such tenancy has to be regarded as a tenancy from year to year terminable by a six months' notice and not by a month's notice, must apply. It is true, said he, that Under Section 107 of the Act a lease from year to year can be made only by a registered instrument, but that provision in no way controls the presumption laid down in Section 106 under which once it is proved 'that the parties were in the position of a landlord and a tenant and the tenancy was for manufacturing purposes, it 24 has to be presumed to be 'one from year to year. According to him, the two sections are independent of each other, the one dealing with the user and notice, and the presumption arising from such user, and the other dealing with compulsory registration for a lease from year to year, or for a term exceeding one year. Mr. Tarkunde, appearing for the Corporation, on the other hand, disputed the construction of these two sections suggested by Mr. Chagla. The second question raised by Mr. Chagla was that in any event the lease was for manufacturing purposes, and therefore, the said notice was not valid. Assuming that Mr. Chagla is right in the interpretation of Sections 106 and 107 suggested by him, even then the appellant-company has first to establish that the lease in its favour was for manufacturing purposes and it is then only that it can take advantage of the rule of presumption laid down in Section 106.
Supreme Court of India Cites 7 - Cited by 59 - J M Shelat - Full Document
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