Holding

The Madras City Tenants Protection (Amendment) Act, 1979 (Act II 1980) applies to all tenancies created before 3 March 1980, so the tenant is entitled to purchase the B schedule land, and the High Court’s decree for possession is vacated.

Summary

Aundippa Nadar leased the B schedule portion of a plot in 1954 and later erected a pucca superstructure in 1965, after the original cut‑off date of 12 September 1955. He filed an application under Section 9 of the Tamil Nadu City Tenants Protection Act, 1921 (as amended) seeking the right to purchase the entire A schedule (B plus C schedules). The trial court dismissed his claim, but the first appellate court allowed it; the Madras High Court reversed that decision, holding that the construction was after the cut‑off date and that the amendment Act of 1979 (Act II of 1980) did not apply. The Supreme Court examined the retrospective effect of Section 3(iii) of Act II 1980 and held that the amendment applies to all tenancies created before 3 March 1980, irrespective of whether the superstructure was built after 12 September 1955, provided it was erected before the amendment’s publication and before termination of tenancy. Consequently, the decree for possession of the B schedule was vacated and the lower appellate decree restored, but the Court remanded the matter to determine the minimum land extent the tenant may purchase. The appeals were allowed and the case was sent back to the trial court for further determination.

Issues considered

The amendment Madras City Tenants Protection (Amendment) Act, 1979 (Act II 1980) is applicable retrospectively to tenancies created before 3 March 1980 even if the superstructure was erected after 12 September 1955.
Whether the tenant is entitled to purchase the B schedule land under Section 9 of the Tamil Nadu City Tenants Protection Act, 1921 in view of the amendment.
Whether B schedule is part of A schedule and if the tenant may limit his claim to the B schedule alone.
Whether the High Court erred in setting aside the lower appellate decree and in treating B schedule as a separate property.

Subjects

TenancyRight to purchaseRetrospective legislationSection 9Madras City Tenants Protection ActAmendment Act 1979EvictionPossessionSuperstructureRemand

Judgment

AUNDIAPPA NADAR A
v.
GNANAMBAL AMMAL AND ORS.

SEPTEMBER 14, 1998

[S.B. MAJMUDAR AND M. JAGANNADHA RAO, JJ.) B

Tamil Nadu City Tenants Protection Act, 1921 (Act Ill of 1922)-Sec-
tion 9--Madras City Te11ants Protections (Ame11dme11t) Act, 1979 (Act II of
1980)-Right of te11a11t to purchase property-Act III of 1922 as amended by
Act 19/55, confers ce1tai111ights 011 the te11ant of the land to purchase propelty c
on putting up stmcture before 12.09. 1955 on the leased la11d-Land leased i11
1954-Super Stmctztre consuucted by tenant in 1965 before Cllt-off date-Held,
that Act II of 1980 extends the Cllt-off date and applies to all tenancies created
before 3.3. 1980, e11titli11g tenant to purchase the said /a11d.

Sectio11 3(iii)-Constntction made before 3.3. 198(}-ljnifonn retrospec-
D
tivil}~Section 3(iii) of Act II of 1980 amended Sectio11 1(3) of Pli11cipal
Act,-Made Act retrospective for pe1iod antelior to 9.1.1974-Section 1(2)
ca11not resfJict retrmpectivity created by Section 3(iii) of Act II of 198(}-Held,
Act III of 1922 applies to all te11a11cy created before 3.3.1980 a11d dwi11g the
pe1iod from 09.01.1974 to 03.03. 1980 i11 respect of areas to which the Act was E
applicable before 195~Matter remitted to tlial cowt for detem1inatio11.

The respondent filed suit for eviction on 22.06.1970 in respect of the
tenanted portion i.e. B schedule. The notice for termination of tenancy was
issued on 12.12.1968. The suit for injunction was filed restraining the F
appellant from constructing structure in the encroached portion i.e. C
schedule. The sum total of B schedule and C Schedule was described as A
Schedule. As per the appellant, B Schedule was leased to him in 1954 and
soon thereafter he had put up a structure and subsequently the respondent
had orally leased the C schedule also. The appellant thereafter filed an
application under Section 9 of the Tamil Nadu City Tenants Protection G
Act, 1921, as amended by Act 19/55 claiming the right to purchase the
entire A schedule. Such right was available to the tenant as per the
amendment by Act 19/55 provided the tenancy in the land was created
before 12.9.1955 and superstructure was also put up by the tenant before
12.9.1955. H
577
578 SUPREME COURT REPORTS [1998] SUPP. lS.C.R.

A Trial court rejected the application of the appellant and decreed the
eviction suit filed by the respondent. In appeal, the first appellate court
dismissed the suit. The High Court set aside the appellate court judgment
and restored the trial court judgment decreeing the suit in favour of the
respondent.
~

B In appeal to this Court, the appellant contended that the High Court
as well as the trial court failed to refer to and consider the admission of
the respondent that the appellant had put up a super structure in 1965.
The appellant was entitled to take advantage of Madras City Tenants
Protection (Amendment) Act, 1979 (Act II of 1980) which applied to
C tenancies created after 12.9.1955 upto 09.1.1974. The High Court also failed
to notice that B schedule was part of A schedule and that once C schedule
was surrendered, the appellant could limit the plea of tenancy to B
schedule.

The respondent contended that the amending Act 11/80 being
D retrospective only from 9.1.1974, and even if there was an admission that
the appellant made a fresh construction in 1965, Act 11/1980 could not
apply to tenancies created or superstructures constructed during the
period 12.9.1955 to 9.1.1974.

Allowing the appeals, the Court.
E
HELD : 1.1. The Amending Act 11/80 applies to all tenancies created
before 3.3.1980 provided the construction is made before 3.3.1980 and
before the date of termination of the tenancy i.e. 12.12.1968. It does not
matter if the construction is after 12.9.1955. Act III of 1922 applies to all
F tenancies created before 3.3.1980 and also applies to the tenancies created
during the period from 9.1.1974 to 3.3.1980 in respect of areas to which the
Act was applicable before 1955. (588-C-D]

Raja D. V. Appa Rao Bahadur v. C. T. Senthilnathan, (1988) 1 LW 400,
affirmed.
G
1.2. Decree for possession and profits as granted by the High Court
in respect of "B" schedule is to be vacated and the decree of the lower
appellate court is to be restored. [588-E]

2. High Court was in error in taking B schedule and A schedule as
H different properties. The B schedule was part of A schedule. The High
AUNDIAPPA NADAR v. GNANAMBALAMMAL[M. JAGANNADHA RAO, J.J 579

Court ought to have considered the 11uestion as to whether the appellant A
could not limit his claim of tenancy to lesser extent i.e. B schedule. It is,
therefore, necessary to remand the matter to High Court on this issue of
fact, subject to the non-acceptance that the appellant made construction
in 1965. [584-A-B-D]

3. As the parties in litigation could not arrive at any settlement on B
the minimum extent of the land from B schedule property which may be
necessary for the convenient enjoyment of the tenant, the matter is
remitted to the trial court for determination. [5911-A]

CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 4753-
4754 of 1998.
c
From the Judgment and Order dated 20.8.96 of the Madras High
Court in S.A. No. 1922/84 and C.R.P. No. 4646 of 1984.

KV. Vijayakumar for the Appellant.
D
Mrs. K Sarada Devi for the Respondents.

The Judgment of the Court was delivered by

M. JAGANNADHA RAO, J. Leave granted.
E
These two appeals have been preferred by the tenant against the
judgment of the High Court of Madras dated 20.8.1996 in S.A. No. 1922
of 1984 and C.R.P. No. 4646 of 1984, reversing the judgment of the
Additional Judge, City Civil Court, Madras dated 25.4.1982 in A.S. No.
225/81 and CMA No. 172/81 and restoring the judgment of the Ilnd Asst. F
Judge, City Civil Court, Madras dated 23.7.1980 in O.S. No. 2990 of 1970
and IA No. 12515 of 1970. The matters arise under the Tamil Nadu City
Tenants' Protection Act, 1921 (Act III of 1922) (hereinafter called the
'Act'). That Act, as amended by Act 19/55, confers certain rights on the
tenant of the land to purchase the same if he or his predecessor-in-interest
has put up a structure before 12.9.55, on the leased land. On the facts cf G
the case before us, the suit was filed in 1970 by the respondent and such
a right was indeed available to the tenant as per the amendment by Act
1955, provided the tenancy in land was created on or before 12.9.1955 and
superstructure was also put up by the tenant before 12.9.1955 and before
the tenancy of the land was terminated. Though the appellant in this case H
580 SUPREME COURT REPORTS [1998] SUPP. 1 S.C.R.

A · exercised such an option, the trial court rejected the same and decreed the _
eviction suit filed by the respondents-landlords while the first appellate
Court dismissed the suit. The High Court set aside the appellate court's
judgment and restored the trial court's judgment decreeing the suit in
favour of the respondent-landlord. That is how the tenant is in appeal
before us.
B
The suit for eviction was filed by the respondents on 22.6.1970 after
issuirig q notice of termination of tenancy dated 12.12.68 in respect of a
rectangular piece of land, B Schedule 25' x 40' and for injunction against
the appellant from constructing a structure in an area around the northern
C and eastern side of B- schedule (which piece was called C schedule)
wherein the tenant was making preparation to put up further constructions
instead of removing the existing constructions already made as directed in
an earlier suit OS No. 2051/65 which was then pending in Second Appeal.
The sum total of B and the C schedule is described as A schedule (25.75'
x 142'). In other words if C is the encroached portion, eviction in regard
D not only for the tenanted portion B (25.75' x 40') but also for C, ~in all for
A (25.75' x 142') was sought. Damages of Rs. 4500 as Rs. 125 per month
were also claimed.

The appellant-tenant filed, within the prescribed period, an applim-
E tion IA No. 12515 of 1970 on 14.8.1970 under section 9 of the Act claiming
a right to purchase the entire A schedule i.e. B + C. According to him
the B schedule was leased to him in 1954, soon thereafter he put up t!1e
structure and subsequently, the landlord had orally leased the C schedule
strip also. The plea for purchase of B + C schedules was put up in spite
of a Judgment in OS 2051/65 by the trial Court and first appellate Court
F that only B schedule was leased to him. This was because the tenant's
Second Appeal again'st the Judgment of the first appellate Court was
pending in the High Court when the tenant filed the above I.A. 12515/1970
in the trial Court in the present suit.

G A counter affidavit was filed by the landlady-plaintiff in that IA in
November, 1970 stating that the appellant was a tenant only of the plot B
(27.75' x 40') and not of C schedule. In regard to the question whether any
construction was made by the appellant- tenant, the respondent-plaintiff in
her counter in the IA admitted in ·para 4 that the tenant had put up a
structure in 1965 but not before the crucial date 12.9.1955. That admission
H reads as follows :
AUNDIAPPANADARv. GNANAMBALAMMAL[M. JAGANNADHARAO,J.] 581

"At the time when the defendant came to occupy the land, only a A
small superstructure of the extent of 8' x 10' was in existence and
only in the year 1965, the defendant removed the original thatched
superstructure and proceeded to constrnct the pucca superstrncture
over an area of about 14' x 40'. I deny that the defendant was, at
any time, the tenant of the entire plot described in the schedule A
B
to the plan."

(This admission had gained importance in this appeal because of the new
plea raised for the tenant on the basis of Act 11/1980). The landlady,
however, contended that the defendant was not entitled to the benefits of
the Act as he did not erect the superstructure for there was already a c
superstructure on the land, that the plaintiffs late husband had earlier filed
O.S. 170/57 in which there was a compromise on 17.7.1958 which resulted
in afresh tenancy at Rs. 17 p.m. and that the appellant having demolished
the existing structure and "having constrncted new superstrncture" after the
prescribed date', (i.e. 12.9.1955) he could not claim any right under the Act. D
In the suit the appellant filed written statement on 3.10.1970 denying the
plaintiff's claim for possession.

The Trial Court disposed of the suit and the I.A. on 23.7.1980. It
noted that the appellant delivered up the C schedule portion after he lost
E
in the Second Appeal arising out of OS 2051/65 on 22.1.1970, and that,
therefore, the dispute remained as regards B Schedule Property. It noted
that the burden of proof was on the appellant to prove that he was a tenant
before 12.9.1955 and that he had put up a structure before that date. It
held that it was not the case of the appellant that he had put up a structure
before 12.9.1955. The appellant as DWl admitted that he purchased the F
superstructure from one Krishnaswami Naidu which fact was not pleaded
either in the written statement or in the IA. It was not shown that the said
Krishnaswami Naidu was a tenant under the owner, Kanniappa Asari. The
said Krishnaswami Naidu was not even examined to show he was a tenant
or had put up the superstructure prior to 12.9.1955. Though the appellant G
stated in evidence that he had a letter to show that he had purchased the
superstructure, he did not produce the same. The appellant admitted that
he had converted the tiled shed into a zinc shed in 1965 i.e. subsequent to
12.9.1955. Mere increase in rent under the compromise on 17.7.58 did not
create a new lease. On these findings, the suit was decreed for possession H
582 SUPREME COURT REPORTS (1998) SUPP.1 S.C.R.

A of the land and damages of Rs. 2050 and the IA 12515/70 filed under
section 9 by the appellant was dismissed.

On appeal, the judgment of the trial Court was reversed holding that
the appellant had, in fact , stated in his evidence that he had constructed
B the superstructure immediately after taking base in June 1954 and in
cross-examination, no question was put to him that he did not put up any
superstructure in 1954 or before 12.9.1955. There was no evidence of
plaintiff that appellant put up the structure after 12.9.1955. In such cir-
cumstances, it was to be accepted that appellant had put up the superstruc-
ture in June 1954. The appellate court stated that in the earlier suit O.S.
C 2051/65, the plaintiff accepted that the superstructure was put up in 1954
itself and that the plaintiff's husband who purchased the property during
1955-56 would not have known as to when any construction was put up. No
foundation walls were constructed. In such a situation, basing on the
evidence of defendant as DW 1 that superstructure was purchased from
D Krishnaswami and renovation was done in 1965, it could not be said that
the superstructure was totally demolished and a new construction was put
up. No new tenancy was accepted on 17.7.58 when the earlier suit of 1957
was compromised. On the evidence, it appeared that there was some
superstructure, but it was retained and only tiles were replaced with zinc
sheet. Hence, it was proved that the lessee had put up a structure before
E 12.9.1955 and the same was renovated in 1965. On these findings the appeal
was allowed, the suit for possession was dismissed and the CMA of the
tenant was allowed.

In Second appeal and in the revision against the C.M.A., the High
F Court set aside the appellate court judgment. It held that even though there
was no dispute in respect of the C schedule, the appellate Court gave a
decree for it and this showed non-application of mind by the appellate
court. In the IA of the tenant under section 9 the tenant had taken the plea
that the lease was in 1954 for the whole of A schedule and not merely for
the B schedule and the same stand was taken by him at the trial. Once in
G the earlier suit O.S. 2051/65 it was held by the trial court, the first appellate
and Second appellate courts on 17.8.68, 22.1.70 and 26.8.73 respectively
that the appellant had encroached into C schedule, the plea of tenancy for
the whole of A schedule (i.e. B + C), ought to have been rejected by the
appellate court and it could not have given relief for the B schedule "which
H was some other prope1ty". The High Court observed :
AUND!APPANADARv. GNANAMBALAMMAL(M. JAGANNADHARAO,J.] 583

"By claiming that he is a tenant of the entire property, it follows A
that it is not a tenancy as admitted by the plaintiff and the
defendant wants fixity in respect of some other property."

The High Court observed that the appellate court had not also considered
purchased the evidence of defendant as DWl that he had purchased the
B
superstructure from one Krishnaswami Naidu, for which there was neither
pleading nor proof. That meant, that there was no structure put up by the
appellant before 12.9.1955. Though the appellant referred to a letter as
proof of purchase of superstructure, the same was not produced. On these
findings, the High Court set aside the appellate court decree and restored
that of the trial court. c
In these appeals, a new question of law was raised by the learned
senior counsel Shri S. Sivasubramaniam for the appellant. It was argued
that the High Court as well as the trial court failed to refer to and consider
the admission of the plaintiff in para 4 of his counter affidavit filed in IA D
12515/1970 in October, 1970 (extracted above) that the appellant had put
up a superstructure in 1965. On that basis the appellant was entitled to
take advantage of the amendment to the Act by the Madras City Tenants
Rrotection (Amendment) Act, 1979 (Act 2 of 1980) which was published
in the Gazette on 3.3.1980. It was contended that in view of the judgment
of the Madras High Court in Raja D. V. Appa Rao Bahadur v. C. T. Se11thil- E
11atha11, (1988) Vol. 101 LW 400, the protection of the Act must be deemed
to have been extended to tenancies created after 12.9.1955, and also to
cases where superstructure was put up.after 12.9.1955, that being the cut
off date fixed by the Amending Act 19/55. In that case, though an argument
was advanced that the Act was given retrospective effect only from 9.1.1974 F
and that the amendment applied only to tenancies created after 9.1.1974
and before 3.3.80 (when it was published in the Gazette) and that it did
not apply to tenancies created between 12.9.1955 and 9.1.1974, the said
contention was rejected and it was held that the Amending Act of 1979
(Act 11/1980) applied also to tenancies created after 12.9.1955 upto 9.1.1974
in view of the fact that section 3(iii) of the Amending Act sitbstituted G
section 1(3) of the principal Act in its entirety. It was also held that the
retrospectivity from 9.1.1974 was intended to validate certain executive
orders passed by the Government with effect from 9.1.1974 extending the
principal Act to certain other townships and was not intended to affect the
provisions of seCtion 1(3) as substituted. H
584 SUPREME COURT REPORTS [1998] SUPP. 1 S.C.R.

A Learned senior counsel for the appellant also submitted that the
Second Appellate Court had erred in thinking that the B Schedule property
was a property different from A schedule property. The High Court did
not notice that B schedule was part of A schedule and that once C schedule
was surrendered, the defendant could limit the plea of tenancy to a lesser
B extent i.e. B schedule. It was argued that the finding of fact arrived at by
the appellate court was disturbed by the High Court on a misapprehension
of the schedules.

On the other hand, learned senior counsel for the respondents Sri
M.S. Ganesh contended that the High Court was justified in interfering
C with the findings of fact arrived by the first appellate court as the said
Court had not given proper consideration to the admission of the defen-
dant that he purchased the superstructure from one Krishnaswami Naidu
and there was neither pleading nor proof that Krishnaswami Naidu was a
previous tenant of the owner. On the new question of law raised before us
by the appellant based on Act Il/80, learned senior counsel for respondent
D contended that the view taken by the Madras High Court in Raja D.V.
Appa Rao Bahadur's case· (supra) was not correct and that the amending
Act 2/80 being retrospective only from 9.l.1974, even if there was an
adnission of the plaintiff that the appellant made a fresh construction in
19G5, Act Il/1980 would not apply. It would not apply to tenancies created •
E or superstructures constructed during the period 12.9.1955 to 9.1.1974.

On the above contentions, the following points arise for considera-
tion :

(1) Was the High Court justified in disturbing the findings of fact
F arrived at by the lower appellate court and in holding that no construction
was made by the appellant before 12.9.1955 and that no superstructure was
put up by a previous tenant before 12.Q.1955 nor was any such structure
purchased by the appellant?

G (2) Does Madras Act Il/80 help the appellant-tenant if the admission
of the respondent-plaintiff that the appellant-tenant had made a fresh
construction in 1965 is to be accepted? •

(3) Whether the matter requires to be remanded for purposes of_
determining the 'minimum extent' necessary for the convenient enjoyment
H by the tenant under section 9(b) of the Act?
AUNDIAPPA NADARv. GNANAMBALAMMAL [M. .TAGANNADHA RAO, J.) 585

Point I : A
On the factual issue, the High Court may be partly right in stating
that the lower appellate Court had not considered the evidence of the
appellant-tenant to the effect that he had purchased the superstructure
from Krishniswami Naidu. There was no evidence that the said Krishnas-
warni Naidu was a former tenant of the same landlord. We find that the B
first appellate Court no doubt made a reference to Krishnaswami Naidu in
its judgment but did not specially say why it was not putting the said fact
against the tenant. On the other hand, the lower appellate court con-
centrated upon the other evidence in the case regarding construction of
the shed by the appellant well before 12.9.1955, the cut off date. That was C
the basis for the finding of the lower appellate Court. The High Court, in
our view, was in error in thinking that the B schedule property was different
from the A schedule property. The B schedule was part of the A schedule.
Further if the tenant, in his IA and written statement had pleaded tenancy
for the whole of the A schedule (because his, Second Appeal against OS
2051/65 was pending at that time) the High Court ought to have considered D
the question as to whether the appellant could not limit his claim of tenancy
to a lesser extent i.e. B schedule. Obviously, the High Court thought that
B schedule was a different property from the A schedule as appears from
the passage extracted from the judgment earlier.
... E
It, therefore, becomes necessary to remand the matter to the High
Court on this issue of fact - subject of course to our decision on Point 2.
If the appellant's contention under Point 2 based on Madras Act II of 1980
read with the respondents admission in para 4 of the counter in the IA that
the appellant made construction in 1965 is to be accepted, then remand
under Point 1 will not be necessary. Point 1 is decided accordingly. F

Point 2:

This point, as already stated, has been raised by the appellant for the
first time before us and is based upon Madras Act II/1980 and the admis- G
sion of the respondent-plaintiff in the counter to the IA of the tenant. The
admission - which has already been extracted - is to the effect that the
appellant made the construction on the land in 1965.

The question is whether even if the lease was of 1954 and the
superstructure was constructed by the tenant in 1965 (and not before H
586 SUPREME COURT REPORTS [1998) SUPP. 1 S.C.R.

A 12.9.1955), the application of the appellant filed in 1970 by the tenant under
section 9 of the Act could be allowed granting him the right to purchase
the land covered by the B schedule?

As already stated, appellant's counsel relied upon the judgment of
Srinivasan, J. (as he then was) in Raja D.V. Appa Rao Bahadur v. C.T.
B Se11thil11atha11, (1988) 1 LW 400. As stated above, Madras Act II of 1980
was given retrospective effect in section 1(2) of that Act only from 9.1.1974.
Basing on that fact, the learned senior counsel for the respondents Sri M.S.
Ganesh contended that the beneficial provisions of the Amendment were
applicable only to tenancies created after 9.1.1974 and upto 3.3.1980 when
C Act 11/1980 was gazetted. It was argued that though the Act as amended
by Act 19/1955 gave benefit to tenancies created up to 12.9.1955, there was
a gap for the period from 13.9.1955 to 8.1.1974 and tenants whose tenancies
came into existence during that period were not entitled to file any applica-
tion under section 9 of the Act. It was argued by the learned senior counsel
that the view taken in Raja D. V. Appa Rao Bahadur's case was not correct
D and that if there was no construction before 12.9.1955, then Act 11/80,
would not apply and the appellant could not succeed.

It may be noticed that under certain G.Os the Government of Tamil
Nadu had extended the benefit of the Act to some townships with effect
E from 9.1.1974 and a doubt arose whether the notifications were ultra vires
of the Act. As stated in the Statement of Objects and Reasons for the Bill
which preceded the Ac!Jl/1980, that was the main reason for the Amend-
ing Act being given retrospective effect from 9.1.1974. But while validating
the G.Os.,' the Act al~o inserted by virtue of section 3(iii), a fresh section
1 (3) in the principal Act, by way of "substitution". Section 1(3) of the Act
F (as it stood after the Amendment in Act 19/55) and before it was amended
by Act 2/1980 read as follows :

"This Act shall apply, in the city of Madras only to tenancies of
land created before the commencement of the Madras City
Tenants' Protection (Amendment) Act, 1955 and in any municipal
G town or village to which this Act is extended by notification under
sub-section (2), only to tenancies created before the date with
effect from which this Act is extended to such town or village".

After the Amendment by Act 11/1980, section 1(3) of the principal Act
H reads as follows :

..
AUNDIAPPA NADAR v. GNANAMBAL AMMAL (M. JAGANNADHA RAO, J.) 587

"This Act shall apply (a) ... (b) .. ..in the areas in which this Act is"in A
force on the date of publication of the Madras City Tenants'
Protection (Amendment) Act, 1979 in the Tamil Nadu Govern-
ment Gazette, only to tenancies created before that date".

From the express language of section 1(3) as substituted by Madras
Act 11/1980, it is clear that it is to apply "to tenancies of land created" B
before the date of the gazette publication of that Act i.e. 3.3.1980. There-
fore, it. is clear that so far as section 3(iii) of Act 11/1980 which amended
section 1(3) of the principal Act was concerned, it made the Act retrospec-
tive for the period anterior to 9.1.1974. In our view, section 1(2) cannot,
therefore, restrict the retrospectivity created by section 3(iii) of Act II of c
1980. No doubt, Section 1(2) of the Act Il/1980 states that except sections
9, 10 of the Amending Act, other provisions shall be deemed to have come
into force on 9.1.1974. But these words, in our view, were intended merely
to validate certain executive orders issued with effect from 9.1.1974 extend-
ing the Act to other townships and were not intended to override the
express provisions of section 3(iii) of the Amending Act ll/80. D
Learned senior counsel for the respondents invited our attention to
para 4 of the Statement of Objects and Reasons, which says :

- "It ha~ also been decided to amend the said Act so as to secure
its application over all areas from an wtifonn date. It has further
been decided that the crucial date shall be the date of publication
E

of the proposed amendment Act in the Tamil Nadu Government
gazette in respect of the tenancies in the areas to which the
provisions of the said Act have already been extended to and in
respect of tenancies in the areas to which the provisions of the said F
Act are proposed to be extended in future, the cmcial date will be
the date on which the said Act is extended to such area".

Learned senior counsel contended that the words 'unif01111 date' meant
9.1.1974 and hence the date of retrospectivity is only from 9.1.1974 for all
purposes. We are unable to agree. This contention ignores the latter part G
of the above passage which says that the said idea of giving unifonn
retrospectivity is confined to the applicability 0f the Act to areas already
extended and to areas proposed to be extended. It does not affect the width
and amplitude of section 3(iii) of the Amending Act by which a new section
1(3) was substituted. This aspect is also clear from sections 9 and 10 of Act H
588 SUPREME COURT REPORTS [1998) SUPP.1 S.C.R.

A II/1980 which proceed to validate actions taken by executive orders sub-
sequent to 9.1.1974.

We accordingly hold that Act III of 1922 applies to all tenancies
created before 3.3.1980 and also applies to the tenancies created during
the period from 9.1.1974 to 3.3.1980 in respect of areas to which the Act
B was applicable before 1955. We agree, with great respect, with reasoning
and conclusion of Srinivasan, J. (as he then was) in Raja D.V. Appa Rao
Bahadur's, case.

On the facts of this case, going by the admission of the respondent-
C landlady referred to above, the position is that the land was leased in 1954,
the tenant put up the structure in 1965, the termination notice was given
thereafter on 12.12.1968 and the eviction suit was filed in 1970. The
Amending Act II/80 applies to all tenancies created before 3.3.1980
provided the construction is made before 3.3.1980 and before the date of
termination of the tenancy, i.e. 12.12.1968. It does not matter if the con-
D struction is after 12.9.1955.

We are, therefore, of the view that the second point urged by the
learned counsel fo.r the appellant is required to be accepted and the decree
for possession and profits as granted by the High Court in respect of the
E 'B' schedule is to be vacated and the decree of the lower appellate Court
is to be restored, subject to our direction contained under Point 3.

Poillt 3 :

Once the conclusion is reached that the tenant is entitled to purchase
F the land beneath the structure put up by him in Schedule 'B', the question
arises as to the extent of land appurtenant to the said structure, that he
could be allowed to purchase.

Sub-clause (b) of Section 9 of the Act states that on the application
of the tenant, the Court shall first decide the '111i11i11111111 extent' of the land
G which may be necessary for the convenient enjoyment of the tenant. We
may state in this connection that there was some discussion before us as
to the minimum extent that could be so left to the tenant out of the land
in Schedule 'B' appurtenant to the structure. We adjourned the matter to
see if parties could arrive at a settlement. Unfortunately parties could not
H arrive at any settlement.
AUNDIAPPA NADARv. GNANAMBALAMMAL(M. JAGANNADHA RAO, J.j •589

In our order dated 21.7.1998 we recorded that the tenant was willing A
to leave 5 ft. of entire land along the line GF in the Chart at para 33 of
Annexure-A of Volume II of the paper ,book. The matter was adjourned
to find out if the landlady was willing to accept this offer. The order dated
21.7.1998 reads as follows :
B
"This matter was placed for finding out whether the parties are in
a position to settle the matter or not. Today the petitioner is
present. His counsel has informed us after consulting him that by
way of settling the dispute about 'B' Schedule property, for which
the present dispute not survives, he is prepared to surrender out C
of this property 5 ft. land on entire Line 'G' to 'F' on the chart at
page 33 Annexure 'A' of Volume II of the Paper Book and the
line 'G' and 'F' can be treated as shifted backwards accordingly.
Leaving aside that much portion the rest of Schedule 'B' property
namely, 'D', 'E' shifted line 'F' and 'G' will be purchased by him D
and he is willing to purchase the same and he is also willing to pay
the appropriate market price for the land as per the provisions of
the Act. It is obvious from the map at page 33 aforesaid that the
portion 'M, 'N', 'D' and 'O' comprises of the land above which
structure of the petitioner stands. The portion 'M', 'E', 'F', 'G', 'O'
and 'N' is lying vacant. Learned counsel for the respondent - E
landlady seeks time to have instructions from her in this connec-
tion. If respondent-landlady is agreeable to this suggestion of the
petitioner, the next question will pertain to the appropriate market
price to be paid by the petitioner. The modalities which are to be
resorted to in this connection will be decided hereafter subject to F
finding out the response of the respondent-landlady to the offer
made by the petitioner before us. For that purpose six weeks time
is granted, as prayed for. To be placed on 8th September, 1998,
when both the petitioner and the respondent-landlady shall per-
sonally remain present along with their counsel." G
-'·
The matter was heard again on 8.9.1998 when both parties were
present. The landlady was not agreeable for jtist 5 ft. but was wanting some
more extent of vacant land or rather the whole of the vacant land. This was
not acceptable to the tenant. H
590 SUPREME COURT REPORTS [1998) SUPP. l S.C.R.

A We have, therefore, no choice but to remit the matter to the trial
Court for determining the minimum extent of the land from 'B' schedule
property which may be nece!;Sary for the convenient enjoyment of the
tenant who is held entitled to purchase the structure in 'B' schedule and
appurtenant land in 'B' schedule to the minimum extent required as
B specified in section 9(b) of the Act.

The matter is, therefore, remanded to the trial Court for going into
the above issue. The question of fixing the market value of the land to be
purchased by the tenant will also arise for consideration before the trial
Court. The trial Court will, therefore, decide these issues after giving
C reasonable opportunity to the parties. The matter is remanded to the trial
Court accordingly.

As this litigation had started in 1970 and nearly twenty eight years
have passed by, we direct the trial Court to dispose of the above matter
expeditiously and at any rate within four months from the receipt of this
D judgment. .

Appeals are allowed and the matter remanded as above. There will
be no order as to costs.

NJ. Appeals allowed.

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