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1987 Supreme(SC) 719

SUPREME COURT OF INDIA
RASHPAL MALHOTRA
Versus
VIRS SATYA RAJPUT
Decided on September 11, 1987

Advocates:
Mukul Mudgal, R.K.GARG, RAJINDER SACHAR

Headnote:

Constitution of India, 1950 - Art. 136 - East Punjab Urban Rent Restriction Act, 1949 - S. 13 - Lease deed - Non-payment of rent - Application for eviction - Main point of challenge in this Court was that Haryana Milk Food Corporation was not a legal entity and a suit against such a body was not maintainable - It was further contended that there could not have been any lease with a non-legal entity. The main ground of attack in this appeal was that real tenancy was with appellant and not respondent No. 1. It may be mentioned that an appeal was filed before Appellate Authority by Haryana Milk Food Corporation through its General Manager, and Kailash Chemical and Textile Mills Ltd., through its Director - It is stated in said lease deed that lease was for use who was at that time General Manager of Haryana Milk Food Corporation - Held, Merely because in form of lease Kailash Chemical and Textile Mills Ltd. , was not mentioned and as such was not made a party to suit and lease was purported to be entered with an entity which is not a juristic person and a suit was filed against such non-juristic person, this Court should not interfere with the conclusions arrived at by the learned Appellate Authority and High Court - It has to be borne in mind that this Court in exercising its power under Art. 136 of Constitution acts not only as a court of law but also as a court of equity and must subserve ultimately cause of justice - There is evidence that there is some bona fide need of landlady for her family – Court direct that decree for eviction will not be executed provided appellant files and undertaking to this Court in usual form within four weeks from this date - Court also direct that occupation charges or mesne profits from 1st of August, 1987 should be paid to respondent No. 1 and first of such payment should be made and each subsequent payment should be made each subsequent month - In default of filing undertaking or not making the payment as hereinbefore indicated order of eviction will become executable forthwith - Appeal dismissed.

Judgment

SABYASACHI MUKHARJI, JJ.

( 1 ) THIS is an appeal by the appellant claiming to be a tenant of the premises in question. There was an order of eviction under S. 13 of the East Punjab Urban Rent Restriction Act, 1949 (hereinafter called the Rent Act ). The respondent- landlady is the owner of House No. 722, Sector IIB, Chandigarh (hereinafter called the suit premises ). The suit premises was let out by a lease deed by respondent No. I to respondent No. 2 herein, Haryana Milk Food Corporation owned by the company for the residence of its General Manager at Chandigarh. It is stated in the said lease deed that the lease was for the use of Shri R. P. Malhotra who was at that time the General Manager of Haryana Milk Food Corporation. On behalf of the lessor the landlady, respondent herein has signed and on behalf of the lessee, it is signed as follows : "for Haryana Milk Food Corporation R. Malhotra" who is the appellant herein appellant left the services of Haryana Milk Food Corporation in the end of 1974 and thereafter attempted to pay the rent of the suit premises by sending it by a bank-draft with a covering letter on the letter-head of Haryana Milk Food Corporation. It is the case of the landlady, respondent No. 1 that on coming to know of the cessation of the appellants employment with Haryana Milk Food Corporation the respondent No. 1 stopped accepting rent from the appellant. On 23rd of November, 1977 application for eviction was filed by the respondent No. 1 against the appellant and respondent No. 2. Haryana Milk Food Corporation, inter alia, on the following grounds : (a) non-payment of rent from 1- 1-75 onwards; (b) subletting of entire premises by the Haryana Milk Food Corporation to the appellant and (c) bona fide personal requirement.

( 2 ) IT is relevant to mention that the rent application was filed by the respondent making Haryana Milk Food Corporation as the first defendant and the appellant as the second defendant under S. 13 of the Rent Act. Respondent No. 2 Haryana Milk Food Corporation filed a written statement contending that Haryana Milk Food Corporation was just a trade name and not a legal entity, nor it was a partnership firm and the owner of the said concern was Kailash Chemical and Textile Mills Ltd. The same ground was taken by the appellant in the written statement filed by the appellant. Respondent No. 2 further contended that the appellant had been sending cheques and drafts for the payment of rent to the landlady which she had never accepted as none of the drafts sent by the appellant to the landlady had ever been encashed. Respondent No. 2 further contended that she had never accepted the appellant as the tenant from whom she had never accepted any rent. The landlady also filed an application for impleading the company as a party but unfortunately for unexplained reason the same was not proceeded with and withdrawn.

( 3 ) THE trial Court raising issues, inter alia, held so far as relevant to the present purpose that Haryana Milk Food Corporation obtained the house for the appellant and the said concern was making payment of rent to respondent No. 1. The appellant and respondent No. 2 were liable to be ejected on the ground of arrears of rent. It was further held that the suit premises was required bona fide by respondent No. 1. In the premises on 5th of May, 1979 the trial Court ordered the ejectment of the appellant and respondent No. 2 from the suit premises. The judgment of the Appellate Court was passed on 5th of November, 1979 affirming the findings of the trial Court holding that the appellant took the premises on behalf of Haryana Milk Food Corporation. It was further held that Haryana Milk Food Corporation was the tenant under respondent No. 1. It was further held that the appellant and respondent No. 2 were held liable to be ejected on account of nonpayment of rent and in view of the aforesaid findings eviction was ordered from the suit premises. There was a further revision to the H






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