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1988 Supreme(SC) 618

SUPREME COURT OF INDIA
R.S. PATHAK, CJI., S. NATARAJAN, J.
Subhash Kumar Lata, Appellant
Versus
R. C. Chhiba and another, Respondents.
Civil Appeal Nos. 1594-1595 of 1986
Decided on 23-9-1988.

Advocates:
AMAN VACHHER, AVADH BIHARI ROHTAGI, B.S.MAAN, HARISH N.SLAVE, M.S.Mann, R.Jagannath Goulay, S.A.SARIN, S.K.MEHTA, VIJAY MAKHIJA

Headnote:

Delhi Rent Control Act – Section 21 – Land – Property – Lease - Execution Applications were dismissed by the Rent Controller but on appeal by appellant herein they were allowed and the tenant/respondent in each of the applications was directed to surrender possession in a month s time - It was the appellants case that she had obtained sanction of Additional Rent Controller, and thereafter leased out specified portions in a her property to the respondents under separate leases for a limited period of two years commencing - According to her the rear portion in the ground floor consisting of a drawing-cum-dining hall, a bed room, a bath room and other facilities were leased out to the tenant - respondent and the first and second floors comprising of four bed rooms with attached bath rooms and other facilities were leased out to the tenant respondent in C. A. and each of the tenants was to pay a sum per month for respective portions leased out to them - On the ground the two respondents failed to vacate portions leased out to them at end of two years period, appellant filed Execution Applications under Section 21 of the Act to seek an order from Rent Controller for delivery of possession of the leased portions - Whether appellant had committed any fraud upon respondents – Held, observations in those cases cannot be of any assistance to appellant for in none of those cases was it found that the sanction granted by Rent Controller under Section 21 was vitiated by fraud and was therefore a nullity - None of the decisions lay down that where a sanction granted by Rent Controller under Section 21 is rendered void by reason of a fraud practised upon the statute, delay on the part of the tenant in seeking annulment of order of sanction will cure the order of its voidness - Turning now to last of contentions of appellants counsel viz. that by reason of respondents having agreed to take limited tenancy rights under the order of Rent Controller for a period of two years commencing they must be deemed to have impliedly surrendered their earlier tenancy rights as envisaged under Clause (f) of Section 111 of the Transfer of Property Act, it has no merit in it because High Court has rightly pointed out after referring to Doe d. Earl of Egremont v. Courtenay (1848-60) AllER and some decisions of High Courts, that when a new lease does not pass an interest according to the contract the acceptance of it will not operate as a surrender of the former lease; that, in case of a surrender implied by law from acceptance of a new lease, condition ought also to be understood as implied by law, making void surrender in case the new lease should be made void - For all the aforesaid reasons, appeals have to fail and will accordingly stand dismissed - Appeals dismissed.

JUDGMENT

NATARAJAN, J. :— Both the appeals by special leave have been filed by the same appellant and are directed against a common judgment delivered by the High Court of Delhi in two connected second appeals dismissing the Execution Applications filed by the appellant against the respondents in the two appeals under Section 21 of the Delhi Rent Control Act (for short the Act hereinafter). The Execution Applications were dismissed by the Rent Controller but on appeal by the appellant herein they were allowed and the tenant/respondent in each of the applications was directed to surrender possession in a month s time. The High Court, however, reversed the order of the Rent Control Tribunal in the Second Appeals preferred by the respondents and dismissed the Execution Applications. The aggrieved appellant has preferred these appeals.

2. It was the appellants case that she had obtained the sanction of the Additional Rent Controller, New Delhi on 26/27-2-76 and thereafter leased out specified portions in a her property bearing No. N-57, Panchsheel Park, New Delhi to the respondents under separate leases for a limited period of two years commencing from 1-3-76. According to her the rear portion in the ground floor consisting of a drawing-cum-dining hall, a bed room, a bath room and other facilities were leased out to the tenant Maj. R. C. Chhiba (respondent in C.A. No. 1594 of 1986) and the first and second floors comprising of four bed rooms with attached bath rooms and other facilities were leased out to the tenant Tajinder Tewari (respondent in C. A. 1595 of 1986) and each of the tenants was to pay a sum of Rs. 850/- per month for the respective portions leased out to them. On the ground the two respondents failed to vacate the portions leased out to them at the end of the two years period, the appellant filed Execution Applications under Section 21 of the Act to seek an order from the Rent Controller for delivery of possession of the leased portions.

3. The common defence put forth by the two respondents was that there was a single tenancy and not two tenancies and they were jointly inducted into possession of the entire leased portion even in the month of December 1975 under an oral lease and as such, their tenancy was not referable to the sanction given by the Rent Controller on 26/27-2-76. To substantiate their contentions, the respondents placed reliance on the payment of a sum of Rs. 1,700/- by them on 10-12-1975 as security deposit and the payment of a sum of Rs. 5,100/- by means of cheque on 29-12-1975 towards advance payment of rent for three months. They alleged that in spite of their having been inducted into possession in December 1975 itself, the respondent misled them by saying that the oral tenancy required formal sanction by the Rent Controller and hence they should appear before the Rent Controller and have their statements recorded by him. It was only after giving their statements before the Rent Controller they suspected the motives of the appellant and hence they refused to execute lease deeds in the month of March 1976 as desired by the appellant.

4. The Rent Controller, after a detailed consideration of the evidence adduced by the parties accepted the case of the respondents and held that an oral tenancy had been created in favour of the respondents even in the month of December 1975 and as such their tenancy rights were not governed by the sanction given by the Rent Controller under Section 21 of the Act and furthermore the sanction of the Rent Controller was vitiated by fraud in that it was obtained by suppressing the true facts from the notice of the Rent Controller. It was further held that the order of sanction of the Rent Controller suffered from an infirmity due to the appellant failing to give the reasons for her wanting to let out the property for a limited period. We need not however concern ourselves about that aspect of the matter.

5. The Rent Control Tribunal, in the appeals preferred to it, howeve




















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