Narayana Naicka vs Vasudeva Bhatta

This case is not governed by the Transfer of Property Act. Under the lease in question the lessee had as against the lessor a permanent right to

occupy but he was at liberty to quit whenever he might choose to do so. The time fixed for payment of rent is the 24th May or every year with a

promise that if rent is not paid within a further period of three months allowed as a period of grace the lease shall stand cancelled. In a similar case

S.A. No. 89 of I900 See Narayana Kamti v. Handu Shetty post. p. 210 where also there was agrace period allowed it was held by this Court that

the case was distinguish-able from the reported cases in which relief against forfeiture had been given by the Court for non-payment of rent on the

ground that in these cases the lease provided no period of grace.

Following that decision we hold that the decree of the District Judge is right.

We may add that even u/s 114 of the Transfer of Property Act the exercise of the discretion to relieve against forfeiture may depend upon the

circumstance whether the lease allowed a period of grace or not and in the former case, whether the period of grace is a reasonable period having

regard to the nature and terms of the lease.

The second appeal fails and is dismissed with costs.