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Issues Involved:
1. Validity of lease termination. 2. Requirement of notice to sub-lessee. 3. Legal status of tenancy post-expiry of initial lease period. Detailed Analysis: 1. Validity of Lease Termination: The main question involved was whether there was a valid termination of the lease, thus binding the sub-lessee to deliver vacant possession. The lease deed executed on 16th January 1958 between the lessee and the lessor was for ten years, expiring on 16th January 1968. Post-expiry, the lessee continued to pay rent, which the lessor accepted. The High Court re-formulated two questions: - In the absence of a registered instrument post-tenure, can the lease be extended automatically for five years or is it a month-to-month tenancy? - If the lease was month-to-month, was the notice in Ext. 7 valid in terminating the lease? The Court held that under Section 107 of the Transfer of Property Act, 1882, a lease exceeding one year requires a registered instrument. Without such an instrument, the lease is deemed month-to-month. The lessee continued to occupy the property and pay rent, making it a month-to-month tenancy. The High Court correctly found that the tenancy was automatically determined after ten years. The notice given to the lessee was valid and terminated the lease. 2. Requirement of Notice to Sub-lessee: The respondent argued that a separate notice to the sub-lessee was unnecessary. The High Court held that a valid notice to the lessee sufficed, and there was no need for a fresh notice to the sub-lessee. The Court referenced Harihar Banerji v. Ramasashi Roy, emphasizing that notices should be construed in context, considering the facts and circumstances known to the parties involved. The Court also cited Roop Chand Gupta v. Raghuvanshi (Pvt.) Ltd., affirming that a sub-lessee need not be made a party in a suit for possession if the lease was validly terminated. The decree against the lessee binds the sub-lessee, and the omission to notify the sub-lessee is not improper. 3. Legal Status of Tenancy Post-expiry of Initial Lease Period: The lessee argued that they were holding over the property by paying rent post-expiry of the initial lease period. The Court referred to Section 116 of the Transfer of Property Act, which deals with the effect of holding over. It states that if a lessee continues in possession post-lease expiration and the lessor accepts rent, the lease is renewed from year to year or month to month, depending on the lease's purpose. The Court concluded that the lease was renewed month-to-month, as there was no registered instrument for a longer term. The lessee and sub-lessee continued possession and rent payment, making it a month-to-month tenancy. Conclusion: The Supreme Court upheld the High Court's judgment, affirming the validity of lease termination and the sufficiency of notice to the lessee. The lease was deemed month-to-month post-expiry of the initial ten-year period. The sub-lessee's continued possession was bound by the valid termination notice to the lessee. The special leave petition was dismissed with costs, concluding that the sub-lessee must vacate the premises.
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