Skip to content
How to use Judgment tools
  1. Click Tools to open PDF, Print, Tag, Note, Favourite, and CiteSignal.
  2. Use Brief & Ask in the toolbar for the AI Brief and case chat.
  3. Jump to sections with the pills below the help bar.

Narayan Ramchandra Bhatta Vs. Manager Nagappa

Narayan Ramchandra Bhatta vs Manager Nagappa

Disposition Appeal allowed Court Mumbai Decided Aug 09, 1910
~4 min read
https://sooperkanoon.com/case/336608

For advocates & juniors · 7-day free trial

Brief this judgment before chambers

Stop skimming 50 pages - get an 18-section AI Brief on this case, ask scoped follow-ups, and find related precedents with Semantic Search. Full trial, no card required.

  • 18-section brief - facts, issues, ratio, relief
  • Ask this case - answers cite the judgment
  • Semantic search - find precedents by meaning
  • Research drawer - sections, cites, related cases

No card required · credentials emailed · Log in if you already have an account

Citation
Court
Mumbai
Judge
Decided On
Case Number
Second Appeal No. 883 of 1909
Subject
Property
Disposition
Appeal allowed

Case Summary

AI-generated summary - not the official court judgment text.

Mulgeni lease-Payment of rent in kind-Assessment payable by Mulgar-Increase in assessment-Mulgar liable to pay the increase-Interest over arrears of rent payable in kind-Interest Act (XXXII of 1839) - Contract Act (IX of 1872), Section 13 - Unliquidated damages.;Under the terms of a Mulgeni lease, executed on the 25...

Key legal issue
Property
Outcome / disposition
Appeal allowed

Parties & Advocates

Appellant / Petitioner

Narayan Ramchandra Bhatta

Respondent

Manager Nagappa

Legal References

Reported In
(1910)12BOMLR831

Excerpt

mulgeni lease-payment of rent in kind-assessment payable by mulgar-increase in assessment-mulgar liable to pay the increase-interest over arrears of rent payable in kind-interest act (xxxii of 1839) - contract act (ix of 1872), section 13 - unliquidated damages.;under the terms of a mulgeni lease, executed on the 25th september 1869, the mulgenidar (tenant) agreed to pay the mulgar (lessor) rent of five and a quarter khandies of rice every year, and the latter to pay the government assessment of rs. 6-14-6. it was also agreed that rent settled should not be reduced or enhanced. at the revised survey settlement the assessment was increased to rs. 16-12-0. the mulgar then having sued the tenant for the arears of rent for six years preceding the suit, with interest, the tenant claimed refund of the increased assessment which he paid and for which the mulgar was liable :-;(1) that the amount of assessment rs. 6-14-6, mentioned in the lease as being payable by the mulgar, must be deemed to refer to the assessment as it then existed irrespective of the question of its reduction or enhancement thereafter : that, therefore, the mulgar remained liable to pay the enhanced assessment;;(2) that as the rent was payable in kind, the arrears of rent were not such a debt as was contemplated by the interest act 1839, which required that there must be a debt or sum certain at the time when the promise was made to bring it within the operation of the act; and there was no debt certain at that time, because the market value of rice then need not have necessarily been the same as the market value at the time of the breach of the contract;;(3) that neither was interest recoverable under section 73 of the indian contract act, 1872, as damages for breach of the contract to pay rent; since a suit to recover the money value of the rent in kind was a suit to recover unliquidated damages which were measured by the market value of the goods deliverable under the contract on the day they ought..........to pay rent. but where the contract is, as in the present case, to pay rent in kind on a certain day, and it is not so paid, a suit to recover the money value of the rent in kind is a suit to recover unliquidated damages under section 73, and those damages are measured by the market value of the goods deliverable under the contract on the day when they ought to have been but were not delivered. and to award interest in addition would be to give interest not as but on unliquidated damages, ' but interest does not run upon unliquidated damages': framji hormasji v. commissioner of customs et al (1870) 7. a.c.j. 89; abdul rajak saheb wd. abu baker v. hasan saheb wd. ruknudin mahomed ali mir mohidin saheb (1875) p.j. 210; and niladhar alias liladhar lakhshmi & co. v. magniram and mansukhdas (1875) p.j. 166.4. the appellant, however, is entitled to interest from the date of the suit (section 209 of the civil procedure code, act xiv of 1882). the decree must be amended by awarding interest at six per cent, from the date of the suit to the date of its satisfaction. in other respects the decree is confirmed. costs in this and the district court in proportion.

Full Judgment

N.G. Chandavarkar, Kt., J.

1. The landlord called the mulgar, who is the appellant, seeks to make the tenant, who is the mulgeni-dar-respondent, liable to pay the enhanced assessment; but the terms of the kabulayat do not support that claim. The khata was no doubt transferred to the name of the mulgenidar at the time of the mulgeni or perpetual lease; but the transfer had only the effect of making the khatedar liable to pay the assessment to Government-he became the person to whom Government was to look for payment. But the question still remains whether as between the mulgar and the mulgenidar the liability existed in the latter as khatedar by reason of the transfer of the Mate to his name. That the original liability of the mulgar continued, notwithstanding the transfer, is obvious from the provision in the kabulayat that the responsibility for payment of the amount of the assessment (Rs. 6-14-6), then payable to Government annually, should rest on the mulgar. It is argued that because that specific amount was mentioned the parties must be held to have -agreed that the mulgar's liability should be limited to that amount and no more. But while by the kabulayat the mulganidar ,in terms agreed to pay a fixed amount of rent in perpetuity ' without reduction or enhancement, ' there was no such agreement as to the assessment. The amount of assessment, Rs. 6-14-6, mentioned in the kabulayat as being payable by the mulgar, must, therefore, be deemed to refer to the assessment as it then existed, irrespective of the question of its reduction or enhancement thereafter.

2. As to interest claimed on the arrears of rent sued for it was payable in kind according to the terms of the kabulayat. And payment in kind is not such a debt as is contemplated by the Interest Act (Act XXXII of 1839), which requires that there must be a debt or sum certain at the time when the promise was made to bring it within the operation of the Act: Juggo-tnohun Ghose v. Manikchand (1859) 7 M.I.A., 263. There was no debt certain at that time, because the market value then need not have been necessarily the same as the market value at the time of the breach of the contract.

3. But it is contended that interest is recoverable under Section 73 of the Indian Contract Act as damages for breach of the contract to pay rent. But where the contract is, as in the present case, to pay rent in kind on a certain day, and it is not so paid, a suit to recover the money value of the rent in kind is a suit to recover unliquidated damages under Section 73, and those damages are measured by the market value of the goods deliverable under the contract on the day when they ought to have been but were not delivered. And to award interest in addition would be to give interest not as but on unliquidated damages, ' but interest does not run upon unliquidated damages': Framji Hormasji v. Commissioner of Customs et al (1870) 7. A.C.J. 89; Abdul Rajak Saheb wd. Abu Baker v. Hasan Saheb wd. Ruknudin Mahomed Ali Mir Mohidin Saheb (1875) P.J. 210; and Niladhar alias Liladhar Lakhshmi & Co. v. Magniram and Mansukhdas (1875) P.J. 166.

4. The appellant, however, is entitled to interest from the date of the suit (Section 209 of the Civil Procedure Code, Act XIV of 1882). The decree must be amended by awarding interest at six per cent, from the date of the suit to the date of its satisfaction. In other respects the decree is confirmed. Costs in this and the District Court in proportion.

Continue Your Research


AI Briefs · Semantic Search · Save & annotate judgments

Start your 7-day free trial