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433
1951 Present :
Jayetileke C.J., Nagalingam J. and Gratiaen J.
DE ALWIS, Appellant, and PERERA, Respondent
S. C. 7 C. R. Colombo, 27,027
Rent Restriction Act, No. 29
of 1948-Landlord not owner of premises let-"His right to avail himself of
provisions of section
13 (1) (c)-Meaning of " landlord "- Is jus in re a
necessary ingredient ?-Sections 13 1 (c), 26, 27-Evidence Ordinance
(Cap. 11),
s. 116.
Plaintiff let certain premises to defendant on the basis of a monthly tenancy
and placed the latter in possession thereof. The premises
belonged,, in fact to
the plaintiff's wife and were let on her behalf, but the defendant was not aware
of that fact and the contract
of tenancy was, according to the evidence, one
entered into by the plaintiff in his personal capacity as the landlord and; the
defendant as the tenant.
In action brought by the plaintiff under section 13 (1) (c) of the Rent
Restriction Act to eject the defendant on the ground that
he " reasonably
required " the premises in order to carry on a trade or business-
Held, that the plaintiff was entitled to maintain the action although he was not
the owner of the premises.
Quaere, whether a person who obtains a notarial lease, for a term of years, of
premises which are already in the occupation of the
lessor's monthly tenant can
avail himself of the provisions of section 13 (1) (c) of the Rent
Restriction-Act in order to eject
the tenant, when possession has not been
delivered by the lessor to the lessee but the tenant has been paying his monthly
rents
to the lessee subsequent to the lease.
Hameed v. Anamalay (1946) 47 N. L. R. 558, discussed.
Per JAYETILEKE C .J.-" I am of opinion that the plaintiff is entitled to
maintain the action although he does not have a real right in the property
".
Per NAGALINGAM J.-" I am therefore of opinion that in section 13 (1)
proviso (c) of the Act the term ' landlord ' must be interpreted as meaning
one
who in addition to receiving the rent has a jus in re in respect of the demised)
premises ". Vide Hameed v. Anamalay.
Per GRATIAEN J.-" In my opinion the extended definition given to the term
" landlord " in Hameed's case was not legitimate ".
APPEAL
from a judgment of the Court of requests, Colombo.
This appeal was reserved for adjudication by a Divisional Bench on as reference
made by Gratiaen J.
H .W. Jayewardene, with D. R .P. Goonetilleke, for the plaintiff appellant.-
The plaintiff sought to eject defendant on the ground that he reasonably
required the premises for his occupation for the purpose
of carrying on his
business. The trial judge followed the decision in Hameed v. Anamalay,1[(1946)
47 N. L. R. 558.] and dismissed
the action as plaintiff was not the owner of the
premises. Defendant admitted the tenancy and the parties went to trial on five
issues. There was no issue on the right of the plaintiff to bring this action.
Section 27 of the Rent Restriction Act, No. 29 of
1948, defines the term "
landlord ". Plaintiff comes under the definition of section 27 and he is suing
under section
13 (c). The judgment in Hameed v. Anamalay should be limited to
the facts of that
434
particular case. Eights under the
common law are not affected by the Rent Restriction Act- Maroof v. Leaff
1[(1944) 46 N. L. R.
25.]. As to what a real right is see Wille: Landlord and
Tenant, 3rd ed., pp. 14, 126.
E. B. Wikramanayake, K.C., with A. M. Charavanamuttu, for the defendant
respondent.-Hameed v. Anamalay 2[(1946) 47 N. L. R. 558.]
cannot be limited to
the facts of that particular case. The decision must be either approved or
over-ruled. A " landlord "
for the purpose of section 13 (1) must not only be a
person who is entitled to recover rent but also one who has a " jus in
re in
regard to the premises. There is no evidence in the present case that plaintiff
had possession. He had no " jus in re
". As to what a " jus in re " is see
Bell's Legal Dictionary, p. 303.
[NAGALINGAM J.-Are you not estopped under section 116 of the Evidence Ordinance
?]
No. Section 116 does not come into effect in view of the statutory provisions in
the Rent Restriction Act. Section 26 of the Rent
Restriction Act is applicable
to the facts of this case. That section limits the definition of " landlord " in
section
27.
H. W. Jayewardene, in reply.-Section 26 of the Rent Restriction Act was never
intended to take away the rights of the real landlord
under the common
law-Maroof v. Leaff 1.
Cur. adv. vult.
July 4, 1951. JAYETILEKE
C.J.-
The plaintiff sued the defendant in this action to have him ejected from a house
bearing assessment No. 70, Havelock Road, Colombo,
on the ground that he "
reasonably required " it in order to carry on a trade or business. In the course
of his evidence
he said that the house belonged to his wife and that he let it
to the defendant on behalf of his wife but he did not say that he
informed the
defendant of that fact or that the defendant was aware of it. The rent receipts
D2 and D3, which were issued by him
in 1946 and 1947, and which were not signed
by him in a representative capacity, indicate that he did not inform the
defendant
that he was acting as the agent of his wife. That the defendant did
not recognise anyone but the plaintiff as his landlord is supported
by the fact
that the plaintiff's wife withdrew an earlier action which she had instituted
against the defendant for ejectment.
On the evidence the contract of tenancy
must, in my opinion, be taken to have been entered into by the plaintiff in his
personal
capacity as the landlord and the defendant as the tenant.
The parties went to trial on five issues of which those relevant to the decision
of the appeal are-
(1) Are the premises in suit reasonably required by the plaintiff for use and
occupation for the purposes of his business within
the meaning of s. 13 (1.) (c)
of the Rent Restriction Act ?
(5) Can the plaintiff maintain this action under s. 13 (1) (c) inasmuch as he is
not the owner of the premises in suit?
435
After trial the learned
Commissioner held in favour of the plaintiff on issue 1 and the correctness of
that finding was not challenged
at the argument before us. On issue 5 he
followed the judgment of this Court in Hameed v. Anamalay 1[(1946) 47 N. L. R.
558.] and
held that plaintiff could not maintain the action as he did not have a
jus in re in the premises. He accordingly dismissed the action
with costs. The
present appeal is against that part of the judgment. The appeal came up for
hearing before my brother Gratiaen
and, at his request, I directed it to be
listed for argument before a Bench of three Judges.
The result of the appeal turns on the simple question as to what is meant by the
word " landlord " in s. 13 (1) of the
Rent Restriction Act, No. 29 of 1948. The
sub-section reads-
" Notwithstanding anything in any other law, no action or proceedings for the
ejectment of the tenant of any premises to which
this Act applies shall be
instituted in or entertained by any Court, unless the Board, on the application
of the landlord, has
in writing authorised the institution of such action or
proceedings:
Provided, however, that the authorisation of the Board shall not be necessary,
and no application for such authorisation may be
entertained by the Board, in
any case where-
(a) rent has been in arrear for one month after it has become due or
(b) the tenant has given notice to quit; or
(c) the premises are, in the opinion of the Court, reasonably required for
occupation as a residence for the landlord or any member
of the family of the
landlord, or for the purposes of the trade, business, profession, vocation or
employment of the landlord;
or
(d) the tenant or any person residing or lodging with him or being- his
sub-tenant has, in the opinion of the Court, been guilty
of conduct which is a
nuisance to adjoining occupiers, or has been convicted of using the premises for
an immoral or illegal purpose,
or the condition of the premises has, in the
opinion of the Court, deteriorated owing to acts committed by or to the neglect
or
default of the tenant or any such person.
For the purposes of paragraph (c) of the foregoing proviso-
(1) " member of the family " of any person means the wife of that person, or any
son or daughter of his over eighteen
years of age, or any parent, brother or
sister dependent on him;
(2) any premises of which the landlord is a religious body or association shall
be deemed to be required for the purposes of the
business of the landlord, if
they are, in the opinion of the Court, reasonably required for any of the
objects or purposes, for
which the body or association is constituted ".
436
The word " landlord " is defined
in s. 27, the relevant portion of which reads-
" In this Act unless the context otherwise requires ' landlord ', in relation to
any premises, means the person for the time
being entitled to receive the rent
of such premises, and includes any tenant who lets the premises or any part
thereof to any sub-tenant."
In Gough v. Gough1[(1891) 2 Q. B. at 665.] Lord Esher, M. R., said that where
the word means " is used in a statutory definition
it is not permissible to give
any other meaning to the word which is defined than that which is stated in the
definition.
Under the common law all things may be the subject of the contract of letting
and hiring whether they belong to the lessor or are
the property of a third
party since lease does not affect the ownership of the thing Jet (Voet 19.2.34);
and if the tenant receives
the undisturbed enjoyment of the premises he is
liable for his corresponding obligations, and he is not allowed, when sued by
his
landlord, to set up the defence that the latter had no right to let the
property to him (Voet 19.2.32); Clarke v. Nourse Mines.2[(1910)
T. S. at 521.]
Section 116 of the Evidence Ordinance (Cap. 11) is based on this rule. It
follows therefore that under the common
law the plaintiff is, in relation to the
defendant, the landlord of the premises as defined in s. 27, and the defendant
is not
entitled to deny the plaintiff's title as a ground for refusing to pay
the rent or to give up possession. The question then is whether
there is
anything in s. 13 (1) or in any other section of the Act to alter the
plaintiff's position as landlord or to prevent him
from instituting this action.
In this connection it is relevant to point out that where the Act does intend to
interfere with the
operation of the common law it does so in express terms. In
sections 9 (1), 10, 13 and 18 we find the expression " notwithstanding
anything
in any other law ". There is no such provision in s. 13 (1). The first sentence
of s. 13 (1) requires the authorisation
of the Board for the institution of an
action for ejectment. The proviso preserves intact the common law rights of
ejectment in
the four cases mentioned in paragraphs (a) to (d). The proviso does
not state who is to institute the action, nor does it in any
way designate as
the person who may institute the action anyone other than the person who would
be entitled to institute it under
the common law. Hence in any case which comes
within one of the paragraphs (a) to (d), the common law remains unaffected.
Counsel for the respondent invited our attention to s. 26 of the Act which
provides that in certain cases the owner is deemed to
be the landlord. It is no
doubt correct that in a case to which that section applies "the Act recognises
as landlord a person
different from the person who under the common law, as
followed in the definition in s. 27, would be the person entitled to institute
the action. But it would be unsafe to infer an intention on the part of the
legislature to abolish a right of action under the
common law unless such an
intention is either expressed in the law or arises by necessary implication. The
terms of
437
s. 26 do not justify such an
inference on either of the grounds I have mentioned. It is possible that s. 26
was enacted to prevent
an evasion of the penal provisions of the statute.
Counsel for the respondent contended that if a person who does not have a real
right in a property is given the right to institute
an action for ejectment
under s. 13 (1) it will be open to a dishonest landlord to execute a lease in
favour of a nominee and to
get the latter to institute the action. If that is a
correct statement of the law, the matter may well be one for the legislature
in
order to remedy the inconvenience. But we cannot be affected by it. All we can
do is to construe the Act. For the reasons given
above I am of opinion that the
plaintiff is entitled to maintain the action although he does not have a real
right in the property.
I would, accordingly, set aside the judgment appealed
from and send the case back for trial on issues 2, 3 and 4. The plaintiff
is
entitled to costs here and of the trial in the Court below.
NAGALINGAM J.-
The right of a landlord who is not the owner of the premises let to avail
himself of the provisions contained in proviso (c) to
sub-section 1 of section
13 of the Rent Restriction Act, No. 29 of 1948, arises on this appeal, and in
view of the judgment in
the case of Hameed v. Anamalay,1 the case has been
reserved for adjudication by a Divisional Bench by my Lord the Chief Justice
on
a reference made by my brother Gratiaen J. before whom the appeal came up for
hearing in the first instance.
The facts as found by the learned Commissioner are not in dispute and so far as
they are material may be shortly stated as follows:
The plaintiff-appellant let
the premises in question to the defendant-respondent and placed the latter in
possession thereof. The
defendant continued to pay rent to the plaintiff for a
number of years. Though the plaintiff let the premises he had no title to
them
and in reality it was "his wife who was the owner thereof. The capacity in which
the plaintiff let the premises is said
to be as agent of his wife but so far as
the defendant is concerned the wife was an undisclosed principal; the plaintiff
when he
entered into the contract of letting with the defendant did not
expressly contract as agent of his wife. On the basis that the premises
were
reasonably required for his occupation for the purpose of carrying on a trade
the plaintiff gave notice to the defendant terminating
the tenancy and
instituted this action. The learned Commissioner found in favour of the
plaintiff on all these questions of fact
but dismissed his action on the ground
that the plaintiff was not a landlord within the meaning of that term as
interpreted by
this Court in the case of Hameed v. Anamalay 1[(1946) 47
N. L. R. 558.].
In that case I had occasion to point out that the term " landlord " in proviso
(c) to section 8 of the Rent Restriction
Ordinance, No. 60 of 1942, " must be
defined as not only one who is entitled to receive the rent but also as one who
has a
jus in re in regard to the premises ". Addressing his mind to this added
qualification that the landlord must also be one who
has a jus in re the learned
Commissioner held that the plaintiff had no jus in re and found himself unable
to grant the plaintiff
the relief he claimed.
438
In this state of the record, two
questions were argued at the hearing before us, firstly whether the decision in
the case of Hameed
v. Anamalay 1 is right, and secondly whether the plaintiff is
one who has a jus in re.
The case of Hameed v. Anamalay 1[ (1946) 47 N. L. R. 558.] was decided under the
earlier rent Restriction Ordinance, No. 60 of 1942,
and if the case had to be
decided again under the new Act No. 29 of 1948, the result would be identical
for the objects of both
enactments are the same and the relevant provisions of
the two enactments are materially not different. Nothing was said at the
argument to show that the case should have been decided otherwise. Learned
Counsel for the appellant contented himself with the
observation that the
judgment in that case should be limited to its own facts and if so limited no
exception could be taken to
it. Counsel for the respondent, however, said he
fully supported the judgment. I have given my reasons at some length for the
view
I expressed in that case. Not one of the reasons has been assailed. I
therefore do-not propose to recapitulate them.
There is, however, an aspect of the matter not adverted to in that judgment but
to which attention may profitably be drawn. The
proposition formulated in that
case was that where, after an owner lets the property to a tenant on the terms
of a monthly tenancy
and puts him in possession, he subsequently executes a
notarial lease in respect of" the same premises for a term of years
in favour of
a lessee to whom possession is, however, not delivered, but to whom the monthly
tenant pays the rent accruing subsequent
to the lease, the lessee in those
circumstances is not one who is entitled to terminate the tenancy and claim
possession of the
property on the ground that the premises are* reasonably
required by him for his own purposes. Proviso (c) of subsection (1) of
section
13 of the new enactment corresponding to section. 8 (c) of the old Ordinance
enables only two categories of persons to
claim possession of the premises on
the ground set out therein: (1) the landlord himself, (2) a member of the family
of the landlord.
The contrary of the proposition set out in Hameed v. Anamalay
1, if upheld, would lead to create a third class of persons not contemplated
by
the enactment who would be entitled to recover possession of the premises on the
ground that the premises were reasonably required
for their own. purposes.
If the Legislature intended this third class of persons should be benefited by
virtue of this proviso, it could very well have expressly
said so, but little
reflection would show that had the Legislature such an intention and in order to
give effect to such an intention
added some-such words as "a lessee or a
subsequent lessee from the landlord immediately after the words " any member of
the family of the landlord ", the Legislature would then have defeated the very
purpose which it had in view in enacting these
provisions, for then a landlord
need only relet the premises to a third party who may be in need of the premises
for his own occupation.
There would therefore be no curb on the activities of a
landlord in regard to his letting the premises and reletting
439
them any number of times he
chooses to, for the only test to be applied in turning out a tenant who is
already in occupation would
be whether there was anyone in the wide world who
could show that he reasonably required the premises for his own occupation
either
as a residence or as a place of business. The solicitude plainly evinced
by the Legislature in the Act itself to protect the tenant
from eviction at the
mere will and pleasure of the landlord would be rendered ineffectual and would
continue to have habitation
only in the realm of unrealized pious wishes.
I am therefore of opinion that in section 13 (1) proviso (c) of the Act too the
term " landlord " must be interpreted
as meaning one who in addition to
receiving the rent has a jus in re in respect of the demised premises.
A supposed difficulty that would flow from this interpretation was pointed to by
postulating the question whether a lessee who had
been recovering rents from the
monthly tenant as in the case of Hameed v. Anamalay,1 that is, a lessee who had
no jus in re could
sue for recovery of rent and for ejectment where the tenant
admittedly had fallen into arrears with his rent and laid himself open
to an
action by virtue of proviso (a) to sub-section (1) of section 13. To my mind
there is not the slightest difficulty in answering
that question emphatically in
the affirmative; for there is nothing in the context of proviso (a) which would
require that the
meaning given to the term " landlord " by section 27 of the Act
should be qualified in any manner in order to prevent
a resulting absurdity or
to avoid the enactment being reduced to a nullity. In fact in the case of Hameed
v. Anamalay 1[ (1946)
47 N. L. R. 558. ]I have indicated by a pointed reference
to two of the sections, namely, sections 3 and 7 that the term "
landlord " need
only be given the meaning which the Legislature has given to it in section 27
and nothing beyond that, so
that where a tenant in occupation falls into arrears
with his rent and becomes liable in terms of proviso (a) to be effected, a
lessee without possession to whom the tenant had paid rent would be entitled to
maintain an action in ejectment against him.
An objection may be raised to this view on the ground that the term " landlord "
is being given different meanings in
different parts of the same statute and
indeed in the different parts of the same section. It is true that " it is a
sound
rule of construction to give the same meaning to the same words occurring
in different parts of an Act of Parliament or other document."
See Coustald v.
Legh 2[(1869) L. R. 4 Exch. 126.]. But this is not an inflexible -rule, for "
many instances occur of a departure
from the cardinal rule that the same word
should always be employed to mean the same thing " per Chitty L. J. in Thames
Conservators
v. Smeed Dean & Co.3[(1897) 2 Q. B. 334.]. We have several other
enactments of our own where this cardinal rule is not followed.
I am satisfied, having regard to the entire framework of the Act and the objects
of the Legislature as deducible from the provisions
enacted that in proviso (c)
the term " landlord " should receive a more restricted meaning than that it
bears in other
parts of the Act.
440
I next proceed to consider the
second question debated, whether the plaintiff is a person who has a jus in re.
The answer to this
question depends upon a proper appreciation of the term as
used in Roman Dutch Law. Vanderlinden 1[ Bk 1 Ch. 6 sec. 1 p. 112 Henry's
translation 1828.] defines it thus:
The right in a thing (jus in re) is that right whereby the thing itself is bound
to me so that I may pursue this right in the thing
against any possessor
whatsoever "
and in section 2 he sets out the different kinds of right in a thing (jus in re)
and follows with the observation that " some
writers have also-added to this
enumeration though not with strict accuracy the right of possession ". Having
made this observation,
he embarks 2[Bk.1 Ch.12.] upon a discussion of the right
of possession as a species of real rights or jura in re. Next he proceeds
to explain the meaning of the word " possession " which he says " is the actual
retention of a thing with the purpose
of keeping it for oneself 55. Wille says
3[Landlord and Tenant of South Africa, 3rd ed. pp. 126-7.]:
A real right is usually defined as a right available against the world. This is
a vague statement but elaborated it means that it
is a right in property; it may
be ownership in the property or some thing less than ownership If less than
ownership, the right
to be a real right, must persist in the property and must
be enforceable by its holder notwithstanding any change in the ownership
of
the property, that is, whether the owner of the property transfers his ownership
voluntarily, for example, in consequence of
a sale or donation or whether he is
deprived of the ownership involuntarily, for example, by death or insolvency or
by a sale or
execution."
It would be manifest from a consideration of the passages cited that a person in
possession of immovable property who claims to
hold it for himself as against
everybody else would be a person who would have a jus in re; so that even a
person with no title
whatsoever in himself, in other words a trespasser, who is
in actual possession of property defying the claims even of the true
owner would
be a person who would have a jus in re in respect of that property.
Applying this principle it would be seen that the plaintiff in this case, if he
were holding the property for himself, though without
any shadow of title, would
be a person who would have a jus in re; but it is said that the evidence of the
plaintiff himself discloses
the fact that he is not holding the property for
himself, in other words, that he is not even a trespasser, but that he is merely
holding it as agent of his wife, who is the lawful owner of it.
The question then arises whether the plaintiff in these circumstances can be
said to have a jus in re. There can be little doubt
that the answer must be in
the negative, for he does not hold it for himself. But this does not necessarily
conclude the question
whether the plaintiff is entitled to maintain the action,
for there is another salutary principle in law which must be considered
before
the rights of the plaintiff can finally be determined.
441
It is well settled law that a
person who is not the owner of property may let it and such letting would be a
valid one-Voet 1[19.2.3.]
And Wille 2[Landlord and Tenant of South Africa, 3rd
ed. p. 19] expatiates on this topic:
" A person may let to another immovable property without having any right or
title in it or any authority from the true owner
As between the parties
the lease is binding and they acquire the rights and become subject to the
obligations of a landlord and
a tenant respectively."
and in regard to the obligations of the tenant he continues:
" If the tenant receives the undisturbed enjoyment of the premises he is liable
for his corresponding obligations and he is
not allowed when sued by his
landlord to set up the defence that the latter had no right to let the property
to him. It would be
against good faith in these circumstances for the tenant to
raise such a defence and in an action for rent it might under the Roman
Law have
been met by the exceptio doli mali. This rule or maxim which is generally stated
in the form ' a tenant may not dispute
his landlord's title ' has been fully
developed in the English Law where it is based on estoppel. The rule is briefly
referred
to by Voet who says that a tenant may not plead the exceptio domini."
This principle underlying the Roman, Roman Dutch and English Law has been fully
adopted by us in section 116 of the Evidence "Ordinance,
the first part of which
runs as follows:
No tenant of immovable property or person claiming through such tenant shall
during the continuance of the tenancy be permitted
to deny that the landlord of
such tenant had at the beginning of the tenancy a title to such property."
This rule has been applied in a variety of cases. Where a person had been let
into possession as tenant by a plaintiff he was held
by virtue of the provision
to be estopped from denying the plaintiff's title without first surrendering
possession3[(1905) 28 Madras
526.], 4[P.C. 1915, 37 Allahabad 557.]. In Tadman
v. Henman 5[(1893) L. R. 2 Q. B. 168.] it was held:,
" the estoppel will also enure for the benefit of a lessor who has no
title whatever and the person let into possession will
not be permitted to set
up this want of title. The question of the landlord's title is foreign to an
action for rent or ejectment
against the tenant. " And
So strict is the rule that even if a landlord while proving his own case for an
action against the tenant for use or occupation
disclosed the fact that he
himself had only an equitable or a joint estate in the premises, the tenant
cannot avail himself of
that circumstance as a defence to the action." (Dolby v.
lies 6[(1840) 9 L. J. Q. B. 51.].)
Having, therefore, regard to the doctrine of estoppel, the plaintiff having let
the defendant into possession of the premises, the
defendant cannot be permitted
to deny that the plaintiff had a sufficient title to let the premises to him or
even raise the question
of what that title was, for such a question, as already
observed, is entirely foreign to the
442
action by the landlord against
the tenant whom he had placed in possession and this though the plaintiff, as
stated earlier, himself
may have given evidence of the fact that he had no
title. In fact the Court would not go and should not have gone into the question
as to what the title was, once it was satisfied that the plaintiff had let, and
placed the defendant in possession of, the premises
as his tenant. There is also
another rule of law which must not be lost sight of in this connection and that
is that a person who
is in possession of property is presumed to be the owner
thereof. The plaintiff who had possession of the property before he let
them to
the defendant thereupon having successfully clothed himself in the mantle of an
owner and which cannot be rent asunder
by the defendant would therefore be one
who has a jus in re in. respect of property let by him. The plaintiff
consequently is a
landlord within the meaning of that term as used in proviso
(c) to sub-section (1), of section 18 of the Act and as interpreted
in Hameed v.
Anamalay 1[(1946) 47 N. L. R. 558.] and is thus entitled to the benefit of this
proviso. These observations, serve
to dispose of the claim of the plaintiff, and
the judgment of the lower Court is set aside.
I should, however, wish to make a few general remarks in regard to> the various
classes of persons who could be said to have
a jus in re m view of the statement
of Counsel that difficulties have been experienced; in determining them in the
several cases
that come up before the Courts. Without attempting to be
exhaustive, I should for purposes of section. 13 (1) proviso (c) enumerate
the
following as landlords having a just in re: (1) An owner of property; (2) a
purchaser or donee from an owner: (3) an heir or
legatee of an owner; (4) a
trespasser; (5) a tenant or lessee in possession; where a tenant or a lessee who
has been granted possession
by the lessor lets the premises to a sub-tenant or a
sub-lessee whom he, the tenant or lessee, places in possession, the tenant
or
lessee would himself be one who would have a jus in re and as such entitled to
maintain an action against the sub-tenant or
sub-lessee in ejectment; (6) a
trustee; (7) an agent who without disclosing the existence of his principal
lets, property, acting
as the principal himself (by the combined application: of
the doctrine of estoppel).
For the reasons given, I answer issue 5 in the affirmative. Issue 1 has already
been answered in favour of the plaintiff. No findings
have been recorded in
respect of issues 2, 3 and 4, and for this purpose the case will go back to the
lower Court and for a decree
to be entered in the light of findings on these
issues and in conformity with the answers recorded in respect of issues 1 and 5.
The plaintiff will be entitled to the costs of appeal and of the lower-Court.
GRATIAEN J.-
This is an action for ejectment in respect of premises to which the provisions
of the Rent Restriction Act, No. 29 of 1948, are
admittedly applicable. For the
purposes of the present appeal, Counsel were agreed that the following facts may
be assumed to be
correct: -
The premises belong to the plaintiff's wife to whom they had been donated by her
parents on the occasion of her marriage with the
plaintiff
443
The premises were let to the
defendant on the basis of a monthly tenancy some years prior to the institution
of this action. The
contract of tenancy with the defendant was, however, entered
into not by the wife who was in law the owner of the premises, but
by her
husband. In other words, the principal parties to the contract were the
plaintiff, as landlord, and the defendant, as tenant.
It therefore follows that,
as far as the tenant was concerned, the principal with whom he exclusively dealt
with was the plaintiff.
Indeed, an earlier action for ejectment had been
instituted against the defendant in the name of the plaintiff's wife, but this
action was withdrawn at an early stage because she was not privy to the contract
of tenancy and was therefore assumed not to have
an enforceable cause of action
on the contract. It is conceded that the plaintiff was at all relevant
times " the person entitled
to receive the rent " of the premises within
the definition of the 'term " landlord " in section 27 of the Act.
The action was contested in the Court below on the issue as to whether the
premises were " reasonably required " by the
plaintiff for the purpose of his
business, and this issue was answered in favour of the plaintiff. Nevertheless,
the plaintiff's
action was dismissed by the learned Commissioner on the ground
that, on the authority of the decision of this Court :in Hameed v.
Anamalay
1[(1946) 41 N. L. R. 558.] the plaintiff was not a " landlord " within the true
meaning of the Ordinance, because
" although entitled to receive the rent, he
did not have a jus in re in the premises ".
The appeal came up for hearing before me in the first instance, and learned
Counsel informed me on that occasion that certain difficulties
have in recent
years arisen in tenancy actions owing to the interpretation placed by Courts and
litigants on the ruling in Hameed's
case. As it is very desirable that the
rights of parties in tenancy actions should not be left in doubt, I consider
that an authoritative
ruling of a fuller Bench of this Court should be obtained
on the point. On the directions of my Lord the Chief Justice, this appeal
was
accordingly argued before a Divisional Bench of three Judges on June 8, 1951.
The earlier Rent Restriction Ordinance of 1942 declares that, " unless the
context otherwise requires " the term "
landlord " in relation to any premises "
means " (this word is important) " the person for the time being entitled
to receive the rent of such premises ". The later Act of 1948, which governs the
present case, adopts the same definition
but proceeds to " include " within the
term " landlord " a tenant who lets the premises to any sub-tenant. The
additional words seem to have been introduced by the Legislature out of an
abundance of caution, and have no bearing on the problem
now under
consideration.
Lord Esher points out in Gough v. Gough 2[(1891) 2 Q. B. 665.] that the use of
the word means " as opposed to " includes
" in statutory definitions indicates a
clear intention by Parliament to adopt " a hard and fast definition, and the
result
is that you cannot give any other meaning to the word " land lord " in
the Act than that which is stated in the definition
". Vide also The British
Trams and Carriage Co. v. The Mayor of Bristol 3[ 59L. J. Q. B. 441 at p.
449.]. The
444
question arises, therefore,
whether the " context " of the act necessarily requires that in applying the
provisions of
section 13, a meaning different from that which is specified in
the " hard and fast definition " of the term " landlord
" should be invoked so
as to give efficacy to the scheme of the enactment.
It is important to bear in mind in considering this question that section 8 of
the Kent Restriction Ordinance of 1942 and section
13 of the Act of 1948 which
superseded it were not designed to vest in Courts of Law some new jurisdiction
affecting the rights
and obligations of landlords and tenants in actions for
ejectment. Maroof v. Leaff 1[(1944) 46 N. L. R. 25]. On the contrary as
Keuneman J. points out, they "
merely impose a curb or fetter on the existing jurisdiction " to grant relief to
a landlord
who seeks, in the enforcement of his contractual rights under the
common law, a decree for the ejectment of his tenant from the
premises in the
latter's occupation. The sections must therefore be regarded as pre-supposing
that a cause of action would have
accrued under the common law entitling the
landlord to claim a decree for ejectment. If, therefore, no such cause of action
exists
either by reason of a termination of the tenancy by notice or effluxion
of time, or for any other grounds which normally justify
proceedings by a
landlord for ejectment, the Court would possess no jurisdiction to grant the
landlord relief. In that event, no
occasion arises for applying any fetters on a
jurisdiction which already does not exist. If, therefore, the question be
approached
in relation to the rights of landlords under the common law, it seems
to me, with great respect, that certain difficulties visualised
in the judgment
in Hameed v. Annamalay 2[ (1946) 41 N. L. R. 558.] would be found to disappear.
I would state, with great respect, that it is neither legitimate nor necessary
to decide that " for the purpose of section
8, proviso (c) of the Ordinance of
1942 (or, of section 13 of the Act of 1948) a landlord must he defined as not
only one who is
entitled to receive his rent but as one who has a jus in re in
regard to the premises ". If a landlord, in the sense in which
that term is
commonly understood, can establish that he has a right under the common law to
claim ejectment, the definition adopted
in the enactments seems to be perfectly
adequate. If, on the other hand, no such right is established in any particular
case, an
enlargement of the definition, even if permissible, would not carry the
proceedings, which must fail ab initio, any further.
It would be convenient at this stage to examine the status which every landlord
must necessarily enjoy before the common law can
recognise his right to claim
ejectment in proceedings against a tenant in occupation. The essential
prerequisite to his cause of
action, qua landlord, is that privity of contract
exists between himself and the tenant in occupation, and if that relationship
exists the tenant is precluded by the principles of the common law and by the
provisions of section. 116 of the Evidence Ordinance
from denying that his
landlord had title to the premises at the commencement of the tenancy i.e.. at
the time when privity of contract
between them was established.
445
Where, as has happened in the present case, the plaintiff is the person' who
placed the tenant in occupation of the premises under
the original contract of
tenancy, he would be entitled to a decree to have the tenant ejected provided
that (1) events have occurred
which under the common law would give rise to an
action for ejectment, (2) he also satisfies the Court that, if the Rent
Restriction
Act applied to the premises, the jurisdiction of the Court to order
ejectment is not fettered by the provisions of the statute.
It is apparent, I
think, that in every case of this nature the plaintiff is necessarily the person
" entitled to receive the
rent " of the premises within the meaning of the Act.
I shall next consider the position of a person to whom the original landlord has
sold the premises which are, at the date of the
sale, in the occupation of a
monthly tenant. In such a case the purchaser can elect with notice to the
tenant, and " provided
that the tenant is willing to pay him rent", Voet,
19.2.19, "to step into the landlord's shoes and receive all his rights
and
become subject to all his obligations, so that he is bound to the tenant and the
tenant is bound to him, in the relationship
of landlord and tenant". Allis v.
Sigera1[(1897) 3 N. L. R. 5.]; Silva v. Silva2[(1913) 16 N. L. R. 315.]. If there is a mutual
acknowledgment by the purchaser,
and by the person in occupation, of each other's rights and obligations as
landlord and tenant,
there is a complete and effectual attornment, and privity
of contract is established between the parties as from that date. If,
on the
other hand, the purchaser does not elect to take the property with his vendor's
tenant remaining in occupation, the original
contract of tenancy as between the
vendor and the tenant subsists. In that event, only the original landlord would
be the person
competent to terminate the contract. Wijesinghe v. Charles 3[(1915)
18 N. L. R. 168.];
Fernando v. Appuhamy 4[(1921) 23 N. L. R.
476.]. In the earlier of these decisions, Sampayo J. with whom
Wood Renton C. J. agreed, points out, on the authority of a passage
from Bayne's
Landlord and Tenant that the tenant himself has " the privilege either to
remain. the tenant of the new landlord
or to cancel the lease ". If the tenant
exercises the former privilege, and the purchaser has also agreed to recognise
him
as the tenant, privity of contract is established between the purchaser and
the tenant in occupation, and the rights and obligations
of the parties in an
action for ejectment would be governed by the common law subject to the fetters
imposed on the jurisdiction
of the-Court by the provisions, if applicable to the
premises of the Rent Restriction Act of 1948. The purchaser in such a case
is
the " person for the time being entitled to receive the rent " and therefore
comes strictly within the definition
of section 27 of the Act. Finally, there is
the position arising where the purchaser elects to recognise the tenant" but the
tenant does not specifically attorn to him. Sampayo J. took the view, " but not
without some hesitation " 16 N. L. R.
at page 31T that in such a case the
purchaser would enjoy the right not only to claim rent but also to sue for
damages and ejectment.
In 18 N. L. R. 168,. the earlier ruling was re-affirmed.
It would therefore seem that a tenant who remains in occupation with notice
of
the purchaser's election to recognise him as a tenant may legitimately be
regarded as having attorned to the purchaser so as
to establish privity of
contract between them.
446
The rights under the common law of a person who obtains from the original landlord a notarial lease, for a term of years, of premises in the occupation of the lessor's monthly tenant have also been considered in earlier decisions of this Court. In Wijeratne v. Hendrick 1[(1895) 3 N. L. R. 158] the plaintiff, who obtained a lease of certain premises for a term of years, sued his lessor's monthly tenant for rent only but not for ejectment. wither j.. ;held that the action must be dismissed on the ground that the plaintiff could not maintain his action for rent purely on the strength of his lease, as he had not proved either an attornment by the tenant or an assignment with notice to the tenant, by the lessor (i.e., the original landlord) of his rights under the contract of tenancy. In Rajapakse v. Gooray 2[2 Times C. L. R. 209.], a person who had obtained a notarial lease of premises sued his lessor's monthly tenant for ejectment. Ennis J. held that the action could not be maintained because the tenant had " never attorned to the plaintiff " and there was therefore " no privity of contract between the parties ". In Arnolis v. Mohideen Pitche [(1936) 38 N. L. R. 125.] (see also the South African case of Flax v. Vanderlind 4[(1907) 3 Bal. 159.]) Middleton J. for similar reasons, made order dismissing an action for rent and ejectment instituted by a subsequent lessor against the original monthly tenant. These rulings were followed by a Bench of two Judges in Ukkuwa v. Fernando 5[(1928) C. P. D. 495 at page 498.]. It was there held by Soertsz J. and Abrahams C.J. that, in the absence of privity of contract between the person in a position equivalent to that of a monthly tenant and a person who had a subsequent notarial lease from the original landlord, the tenant could not be ejected except upon a notice to quit -issuing from the original landlord. The Court held, however, that once the lawful holding by the monthly tenant (who had not attorned to the subsequent lessee) had in such a case been determined by due notice :from the original landlord, his occupation became unlawful, and he was therefore liable to be ejected as a trespasser in proceedings instituted by the lessee. Such an action is not based on rights flowing to the plaintiff under the contract of tenancy but on his proprietary right as pro tanto alienee to eject anyone in unlawful possession of the leased premises. We are not called upon in the present context to decide whether and to what extent the jurisdiction of a Court to grant relief to a subsequent lessee in an action of this nature would now be regulated by the provisions of the Rent Restriction Act of 1948. It is sufficiently "clear, I think, that the status of a landlord is not enjoyed by a subsequent lessee unless privity of contract has been established between him and the tenant in occupation. Payment of rent by the tenant to the lessee after notice of the execution of the lease would afford prima facie evidence of attornment so as to justify the inference that all the parties (i.e., the original landlord, the new lessee and the monthly tenant) have mutually agreed that the rights and obligations of the original landlord under the contract of tenancy should pass to the new lessee. Privity of contract is then established between the lessee and the tenant, and the former is empowered in that event, qua landlord, to eject the tenant on any ground recognised by the common law. This right is, of course, curtailed at the present time by the provisions of section 13 of the Rent Restriction Act of 1948 whenever they apply to the premises.
447
In Hameed v. Anamalay 1[(1946) 47
N. L .R . 558.] a person who had taken a notarial sub lease of certain
premises for a term of
years sought to eject, from the premises a person who was
a monthly tenant under the lessor. The-plaintiff had for some months received
rental from the monthly tenant and had then given him notice to quit. It seems
to me that his right to this remedy would depend
upon whether, since the date of
his sublease, the monthly tenant had effectually attorned to him and
acknowledged him as his new
landlord. Vide Wille's Principles of the South
African Law, pages 277-279. If in the circumstances of that particular-case, it
was legitimate to hold that the lessee was merely the cessionary of a bare right
to receive rents (as opposed to an assignee of
all the rights and obligations of
the original landlord), it would in my opinion follow that this limited right
was by itself insufficient
upon which to base an action for ejectment. If, on
the other hand, the correct position was that there had been a complete
attornment
by the tenant to the lessee (as the payment of rent would very
strongly indicate), I would say, with great respect, that Hameed's
case was
wrongly decided. The plaintiff was in either event the tenant's " landlord "
within the plain meaning of the
Ordinance, and subject to its provisions, his
cause of action depended solely on whether he had a common law right to enforce
the
contract of tenancy.
I would summarise the general conclusions at which I have arrived as follows: -
(1) that, for the purposes of the Rent Restriction Ordinance of 1942
and of the Rent Restriction Act of 1948, the term " landlord
" must always be
given the meaning attributed to it in the enactments; and that in this respect
Hameed's case was wrongly
decided;
(2) that whether the plaintiff who claims qua landlord to eject the
tenant in occupation be the tenant's original landlord or a subsequent
purchaser
or lessee of the premises, his right to a decree for ejectment is in first
instance regulated by the principles of the
common law affecting the
relationship of landlord and tenant, and in accordance with those principles, he
must in every case establish
that privity of contract between himself and the
tenant exists at the relevant date;
(3) that if privity of contract does exist between the plaintiff and the
tenant, the latter is precluded by the provisions of section
116 of the Evidence
Ordinance from disputing the plaintiff's title-to the premises;
(4) that, if the provisions of the Rent Restriction Ordinance of 1942
or of the Rent Restriction Act of 1948 are found to apply to
the premises, the
plaintiff's common law right, qua landlord, to-claim a decree for ejectment
would be restricted by the conditions
imposed by section 8 of the earlier
Ordinance or by section 13 of the later Act (whichever is applicable).
Turning
now to the facts of the present case, I would say that the plaintiff is clearly
entitled to a decree ejecting the defendant.
He-was the original landlord under
the contract of tenancy, and his right
448
under the common law to claim ejectment has been clearly established. The fact
that he was not the owner of the premises is irrelevant
because his rights are
founded on contract and not on ownership. The premises were admittedly subject
to the provisions of the
Rent Restriction Act, 1948, but he was " the person
entitled to receive rent " and was therefore the defendant's "
landlord " within
the meaning of the Act. As he proved to the satisfaction of the learned
Commissioner that the premises were
" reasonably required for the purposes of
his business ", it follows that section 13 does not fetter the jurisdiction
of
the Court to grant him the relief to which he is entitled under the common law
and in terms of his contract of tenancy.
Since preparing this judgment I have had the advantage of reading the judgments
of my Lord the Chief Justice and of my brother Nagalingam
J. My purpose in
referring this appeal to a Divisional Bench was to obtain an authoritative
decision for the guidance of Judges
of first instance, and I desire respectfully
to state that I am in agreement with my Lord the Chief Justice on every point on
which
his views differ from those expressed by my brother Nagalingam.
I reaffirm as a fundamental proposition that under the Roman Dutch Law, as under
the English Law, " the question of the landlord's
title is foreign to an action
for rent and ejectment against the tenant ". The relationship of landlord and
tenant is created
by contract, and the action for ejectment is essentially an
action for the enforcement of the tenant's contractual obligation to
return the
property at the expiration of the tenancy. If that be so, I suggest with very
great respect that no necessity arises
in this context for attempting to fathom
the mysteries of what the jurists describe as a jus in re, which term is
distinguished
from a jus in rem or a jus ad rem. (Vide Lee's South African Law
(3rd edition) page 127; Bell's South African Legal Dictionary,
pages 303-304.)
My brother Nagalingam has referred to Vanderlinden (Henry's Translation) page
113 where four different kinds of
jus in re are enumerated. It must be borne in
mind, however, that Vanderlinden -(page 114) proceeds immediately afterwards to
discuss
an entirely different category of rights which are personal rights
varying according to the extent of the cause or origin of the
obligation from
which They arise. It is in this group of rights that he places rights which
arise from contracts, including contracts
of letting and hiring (pages 236-241)
with which we are now concerned. Under the common law, therefore, a person suing
for the
enforcement of the tenant's contractual obligation to quit the premises
must affirmatively prove either that he is the original
landlord under the
contract of tenancy or that he has subsequently become a party to the contract
by assignment. In either of these
events it is neither necessary nor relevant to
investigate whether the plaintiff also possesses a jus in re, whatever precisely
that Latin idiom may connote.
In my opinion the extended definition given to the term '' landlord '' in
Hameed's case was not legitimate.
I would allow the plaintiff's appeal, and I agree to the order proposed by my
Lord the Chief Justice.
Judgment set aside.
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