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IMP. Tenancy Case PLJ 2003 Karachi 134
IMP. Tenancy Case PLJ 2003 Karachi 134
IMP. Tenancy Case PLJ 2003 Karachi 134
Karachi 134
Present: MUHAMMAD MUJEEBULLAH SIDDIQUI, J.
HAFEEZUDDIN and 2 others-Petitioners
versus
BADARUDDIN and 2 others-Respondents C.P. No. 898 of 2002, decided on
2.4.2003.
(i) Constitution of Pakistan (1973)--
—Art. 189~Every principle of law decided and pronounced by Supreme Court is binding
on all Courts in Pakistan, including High Courts, even obiter dicta of Supreme Court has
binding effect. [P. 149] B
"In this respect it would be seen that the definition of the word "tenant" as
appearing in Section 2(j) of Sindh Rented Premises Ordinance, 1979 is very
comprehensive and reads as under :
"(j) "tenant" means any person who undertakes or is bound to pay rent as
consideration of the possession or occupation of any premises by him or by any other
person on his behalf and includes :
(i) any person who continues to be in possession of occupation of the premises after
the termination of his tenancy ;
(ii) heirs of the tenant in possession or occupation of the premises after the death of
the tenant, and
Similarly the word landlord in Section 2(J) has been defined to mean the owner of the
premises and includes a person who is for the time being authorised or entitled to receive
rent in respect of such premises. From a combined reading of the above two definitions it
is quite clear that where no rent agreement exists between the parties the law assumes that
when a person who is not the owner of the premises occupies any portion thereof and has
set up no title which is adverse to the owner of the premises, then such a person by fiction of
law becomes a tenant of the premises. In the present case Mst.Munawar Sultana has
successfully established that she is the owner of the premises alongwith other co-sharers by
producing extract from the property Register which position was never controverted in cross-
examination. So also Ghulam Ghous has never claimed to be the owner of the premises or
to have purchased the same from either the original owner or the subsequent
transferees. Consequently in my view it is quite clear that Ghulam Ghous occupied the
premises in no capacity other than as a tenant of Altaf Ahmed and subsequently
of Mst Munawar Sultana and other co-sharers. A person who is in possession or occupation
of the premises owned by someone else, although he may not have undertaken to pay the
rent to the owner is bound to pay the rent to him as consideration for being in possession
or occupation of the premises. To hold otherwise in my view would be to give legal cover to
such persons, who occupy the premises which are admittedly not owned by them and
thereafter refuse to pay the rent on the ground that they are not tenants of the owners of
such premises. This cannot be allowed by any provision of law. In this regard a reference
can be made to Muhammad Shabbir v. Hamida Begum 1992 MLD 323 and Syed Hussain Ali
Shah v. Shamsuddin 1998 MLD 394 where, in similar circumstances two learned Single
Judges of this Court had come to the conclusion that the relationship of landlord and
tenant stood established between the parties. The cases cited at the Bar by the learned
counsel for respondent as regards the relationship of landlord and tenant, in my view are not
germane to the issue. In this regard in Khuda Bux v. Muhammad Yasin 1992 MLD 2011 it
was held by a learned Single Judge of this Court that mere acquisition of ownership or a
right in the property would not create the relationship of landlord and tenant between
the parties. These are not the facts of the present case since it has been established
by Munawar Sultana through evidence that GhulamGhous was inducted into the
premises by the previous owner Altaf Ahmed. Similarly, in Noor Muhammad
v. Mst. Hajira 1985 CLC 2085, a learned Single Judge of this Court held that where the title
of the premises was in doubt, the relationship of landlord and tenant could not be established
and in these circumstances the proper course for the Rent Controller in such a situation
would be to decide this issue against the landlord and advise him to first get his title
established before seeking ejectment. Similar conclusion was reached in Abdul Rasheed Khan
v. Muhammad Shaukat Hussain 1995 CLC 1978. However, as held above the title to the
properly in question has been successfully established by Mst. Munawar Sultana and hence
these two cases do not help the respondent at all".
"The appellant has admitted that he received the notice but he did not reply the
same. Admittedly, the appellant is in possession of the premises. He is also in
occupation of the premises. He does have any title to possess those premises or
occupy those premises but since he was bound to pay the rent for
possession/occupation of the premises, therefore, he was tenant. The word bound
has been defined in the Black's law Dictionary and means as follows :
The appellant was under moral obligation to compensate the owner of the use of
premises and for continuing to remain in possession of the premises. In spite of the
notice that the respondent is owner and had demanded rent, the appellant was
unmoved and did not discharge his obligation. Although strictly there may not be
the legal obligation but moral obligation binds a person to compensate the owner for
continuing to remain in occupation as well as in possession. I would therefore,
held that since the appellant was bound to pay the rent, therefore, he was tenant in
terms of Section 2(j) of the Sindh Rented Premises Ordinance, 1979."
It is pertinent to note that in this case the premises was transferred to the owner by
the Settlement Department.
The fifth judgment is in the case
of Muhammad Shabbir v. Mst. Hamida Begum, 1992 MLD 323, on which reliance has been
placed in the case of Muhammad Younus (supra). In'this case also the issue pertaining
to relationship of Landlord and tenant was under consideration. In this case, the applicant
had established her title over the property in question and the opponent had claimed the
execution of sale agreement and payment of part sale consideration. It was held that till such
time as the opponent succeeds in obtaining decree for specific performance of agreement, the
applicant shall continue to be the owner of the property in dispute. The learned
Single Judge interpreted the term "tenant" defined in Section 2(j) of the Ordinance as follows
:
"Term 'tenant' has been defined under Section 2(j) of the Sindh Rented Premises
Ordinance, 1979 as under :
(j) "tenant" means any person who undertakes or is bound to pay rent as
consideration of the possession or occupation of any premises by him or by any other
person on his behalf and includes:
(i) any person who continues to be in possession or occupation of the premises after
the termination of his tenancy;
(ii) heirs of the tenant in possession or occupation of the premises after the death of
the tenant.
(i) Term tenant carried a different definition in the previous statute, Section 2(i) of
the Urban Rent Restriction Ordinance, 1959 defined it as under:
(i) tenant means any person by whom or on whose account rent is payable for a
building or rented land and includes (a) a tenant continuing in possession after
the termination of the tenancy in his favour, and (b) the wife and children of a
deceased tenant, but does not include a person placed in occupation of a building or
rented land by its tenant, unless with the consent in writing of the landlord, or a
person to whom the collection of rent or fees in a public market, car stand, or
slaughter house or of rents for shops has been framed out or leased by a municipal,
town or notified area committee, or by the Corporation of the City of Lahore or by the
Lahore Improvement Trust or any other Improvement Trust.
It will be noticed that the definition of the term "tenant" has been materially changed
from its previous definition. According to the definition given in the Sindh Rented
Premises Ordinance, 1979 following persons shall be the tenant:
(1) A person who undertakes to pay rent as consideration for possession
or occupancy of any premises. Undertaking may be oral or through a document.
(2) A person who is bound to pay rent for being in possession
or occupation of a premises.
(3) A person who holds on possession or occupies the premises even after
the termination of the tenancy.
(4) Surviving heirs of a deceased tenant in actual possession or
occupation of the premises.
The sixth judgment is in the case of Fariduddin v. Mehboob Alt 1994 SCMR 1485. In
this case, the Hon'ble Supreme Court has held that landlord and tenant can prove existence
of relationship of landlord and tenant in other manners, provided by law and mere non-
existence of written tenancy agreement is not sufficient to dismiss the ejectment application.
The 7th judgment is in the case of Muhammad Yousuf u. Munawar Hussain and
others 2000 SCMR 204. In this case, the Hon'ble Supreme Court has held that an
agreement to sell the immovable property by itself does not confer any title on the vendee.
The Eighth judgment is in the case of Muhammad Rafiq v. M/s. Habib Bank
Limited 1994 SCMR 1012. In this case the Hon'ble Supreme Court has held that in the
absence of written agreement the landlord or tenant can establish the relationship of
landlord and tenant by producing evidence, Admissible in law.
Notwithstanding, the admitted ownership by the respondent, it was held that in the absence
of any reliable evidence on the point of contractual tenancy, the relationship of landlord
and tenant did not exist and the jurisdiction of Rent Controller was ousted. It was
observed that the parties can seek redress through Civil Court.
After careful examination of the contentions raised before me and perusal of the
judgments relied upon by the learned advocates for the parties, I am of the opinion that
contradictory views expressed by the several learned Single Judges of this Court, are not
required to be dilated upon, for the reason that all the issues have been considered
and decided authoritatively by the Hon'bleSupreme Court. Every principle of
law decided and pronounced by the Hon'ble Supreme Court is binding on all the Courts
in Pakistan, including High Courts. It is also established principle that even the obiter
dicta of the Hon'ble Supreme Court has binding effect. Thus leaving aside the conflicting
judgments delivered by the learned Single Judges of the High Court, It would like to
deduce the conclusions from the dicta laid down by the Hon'ble Supreme Court in
various judgments cited at Bar.
However, before drawing the conclusions, I would like to observe with all due
deference, that some of the learned Single Judges, have _,.-attempted to define the
terms, of "landlord"' and "tenant" used in the Ordinance and defined under Section 2, with
reference to the help of dictionary. It is a very dangerous part to tread on. The
interpretation of statute by holding the statute in one hand and the dictionary in another,
has never been approved as sound principle of interpretation of statutes. No doubt, when
some words, terms and expression are not defined in a statute, it is permissible to seek a help
from the dictionaries but placing sole reliance on dictionary meaning is not an advisable
mode of interpreting the statute. ' ' All efforts should be made to interpret the terms used
by the legislature in an enactment from the scheme of statute itself and by examining the
entire scheme in its totality. The words terms, and expressions, used in a statute take their
complexion with reference to the context in which they are used and the scheme of law in
which they occur. This observation is made with reference to some Single Bench Judgments
of this Court, in which the word "bound" used in Section 2(j) of the Ordinance containing
definition of tenant has been considered in isolation and has been defined with reference to
the meaning of the words in dictionary. Under Section 2(j) of the Ordinance, the term
"tenant" has been defined to mean, any person who undertakes or is bound to pay rent, as
consideration for the possession or occupation of any premises by him or by any other
person on his behalf. Thus, while interpreting this provision of law, it has been held in the
case of Muhammad Younis (supra) that the appellant was under moral obligation to
compensate the owner of the premises and because of this moral obligation he became
a tenant in the terms of Section 2(j) of the Ordinance. The infirmity of the logic is
apparent from the fact that the established principles of interpretation of statute
have been ignored. The definition of "tenant" contained in Section 2(j) of the Ordinance
starts with the word means and it f is established principle of interpretation of statute that
whenever a definition starts with the word "means", it is conclusive and normally nothing is
to be added to such conclusive definition. However, when definition starts with the word
"includes" as indicated in Section 2(g) of the Ordinance containing the definition of "rent"
then definition is not conclusive but it is incltlsive and the other matters of same category or
similar nature can be included in the definition. In some of the Single Bench Judgments,
relied upon by the learned counsel for the petitioner, it appears that the entire scheme in
its totality has not been considered. In the definition of term "tenant" contained in Section 2(j)
of the Ordinance and definition of "landlord" contained under Section 2(f) of the Ordinance,
the word "premises" has been used. Likewise under Section 15 of the Ordinance, the word
"premises" has been used. The word "premises" has been defined by the legislature itself in
Section 2(h) as a "building or land, let out on rent but does not include hotel". Thus while
interpreting the definitions of landlord and tenant, contained in Clauses (f) and (j) of Section
2 of the-Ordinance, the definition of word "premise" is also required to be kept in view and
according to definition in Section 2(h) of the Ordinance its mean building or land let out
on rent. This is exclusive definition of the premises which totally excludes any transaction
other than letting out on rent and thus it would be against the manifest intention of the
legislature to hold that mere ownership of the property by one person and possession thereof
by other, irrespective of the fact whether it was let out on rent or not would create relationship
of landlord and tenant because of moral obligation. The Rented Premises Ordinance, 1979 is
not the only law in the province of Sindh providing relief to an owner of a building, in case
the relationship of landlord and tenant is not established within the scheme of the Ordinance
and owner of the building or land can have recourse to the other laws for the time being in
force and can invoke the jurisdiction of Civil Court for taking the possession of a building
or land as well as compensation/mesne profits. I would further like to observe that
the provision for statute are not to be interpreted only on the touch stone of morality or
moral obligation but on the basis of law enacted by the Legislature.
With the above observations, I am of the view that the following conclusion can
be drawn from the judgments of the Hon'ble Supreme Court cited at bar:-
(i) The sale Agreement per se does not confer any title in the property and
merely confers the right to enforce the specific performance of the contract;
(ii) mere ownership of the building by one person and the
possession thereof by other person does not create the
(iv) there can be verbal/oral tenancy also but in order to establish such tenancy an
evidence of every high standard is required, from which the facts of tenancy is
established on the principle of preponderance of probabilities;
(viii) a person can be owner of the building or land without being landlord and can
be landlord without being owner thereof;
Applying the above conclusions to the facts of the present case, I find that admittedly
there-is no tenancy agreement between the parties and no rent has been paid by the
Respondent No. 1 from 1995 onwards and there is no evidence to establish any undertaking
on the part of Respondent No. 1 to pay the rent of the shop in dispute. There is no admission
on the part of Respondent No. 1 to prove the payment of rent at any time or any obligation to
pay rent by him. There is no evidence to establish verbal/oral tenancy between the parties.
The contention of learned counsel for the petitioner, that the petitioners are landlord of the
Respondent No. 1 merely on the basis of ownership of shop in question and the Respondent
No. 1 is tenant by mere possession thereof has no substance.
For the foregoing reasons, it is held that the impugned judgment of learned District
Judge does not suffer from non-exercise of jurisdiction, wrong exercise of jurisdiction or
commission of any illegality causing miscarriage of justice. There is no infirmity in the
impugned judgment warranting interference in exercise of Constitutional jurisdiction of
this Court. The petition stands dismissed accordingly.
(M.Y.) Petition dismissed.