SUPREME COURT OF INDIA
R.S. PATHAK, CJI., S. NATARAJAN, J.
K. Achyuta Bhat, Appellant
Versus
Veeramaneni Manga Devi and another, Respondents.
Civil Appeal No. 2468 of 1982
Decidedon 23-9-1988.
Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 – Section 10 – U.P. (Temporary) Control of Rent and Eviction Act, 1947 – Section 2 – Subletting- Circumstances- Simultaneously- Appeal by special leave by a tenant arises out of a common judgment rendered bythe High Court of Andhra Pradesh in four Civil Writ Petitions – Two of Revision Petitions were filed by appellant other two were filed by one Narsimha Murthy second respondent common judgment High Court dismissed all four revision petitions while Narsimha Murthy has not preferred any appeal appellant has filed this appeal by special leave to question legality and propriety of decree for eviction passed against him on ground that he had unauthorizedly sublet leased premises to second respondent for running a hotel – Held, Landlord suing tenant for eviction on ground of subletting High Court held that since machinery cannot be run unless it is placed in the premises where it is situated lessee of machinery would get advantage of use of business premises also and as such lease amount stipulated for lease of machinery would also include lease amount payable for building and hence transaction would clearly amount to lessee subletting building simultaneously with leasing out of the machinery present case warrants same view being taken especially in light of recitals in agreement which stipulate that amount payable by second respondent would comprise in it rent payable by appellant landlord for leased premises – End of arguments it was represented at bar that second respondent has since vacated premises and handed over business appellant and that appellant himself is now running hotel through his son We do not think the changed circumstances can affect rights of first respondent in any manner to have appellant evicted on ground of subletting – Appeal dismissed.
JUDGMENT
NATARAJAN, J.:— This appeal by special leave by a tenant arises out of a common judgment rendered bythe High Court of Andhra Pradesh in four Civil Writ Petitions. Two of the Revision Petitions were filed by the appellant herein and the other two were filed by one Narsimha Murthy, the second respondent herein. By a common judgment the High Court dismissed all the four revision petitions. while Narsimha Murthy has not preferred any appeal the appellant has filed this appeal by special leave to question -the legality and propriety of the decree for eviction passed against him on the ground that he had unauthorisedly sublet the leased premises to the second respondent for running a hotel.
2. Originally the building bearing door Nos. 7-2-606, 607, 617 and 618 (old door No. 2540) Rashtrapati Road, Secunderabad belonged to one Bhima Rao. The appellant took the ground floor of the premises on lease in the year 1953 from the said Bhima Rao on monthly rent of Rs. 250/- for running a hotel in the name and style of Sharada Bhavan. In or about September 1967 Bhima 95 Rao conveyed the premises by means of Deed of Gift to his daughter Manga Devi, the first respondent herein and the appellant duly attorned his tenancy and was paying her the rent. After August 1969 the hotel came to be run by the second respondent instead of the appellant. As the first respondent had reasons to believe that the appellant had either transferred his rights under the lease or sublet the leased premises to the second respondent, she terminated the tenancy by means of a notice with effect from 31st January, 1971 and called upon the appellant to surrender possession thereafter. The appellant refused to vacate and sent a reply refuting the allegations contained in the notice issued to him. This led to the first respondent filing a petition under S. 10 of the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 (for short the Act hereafter) to seek the eviction of the appellant and the second respondent on three grounds viz. (1) wilful default in payment of rent, (2) unauthorised subletting and (3) causing waste to the property. The Rent Controller ordered eviction on the second and third grounds. The appellant and the second respondent preferred seperate appeals to the Appellate Authority and both the appeals were dismissed. Thereafter the two affected parties filed two revisions each against the dismissal of the appeals and the High Court clubbed all the four revisions and rendered a common judgment dismissing all the revision petitions. The High Court, however, affirmed the finding of the courts below only on the ground of sub-letting and consequently, the sole question for consideration in this appeal is whether the High Court has erred in law in upholding the order for eviction passed by the first two Courts on the ground of subletting.
3. Dr. Chitale, learned counsel for the appellant took us through the terms of the agreement Exhibit R-14 entered into between the appellant and the second respondent as well as the relevant portions of the judgments of the Courts below and the High Court and argued that this was a case where the appellant had only transferred the managing rights of the hotel to the second respondent and hence there was no basis or material for the Rent Controller or the Appellate Court to hold that the appellant had sublet the leased premises to the second respondent and therefore the High Court too was in error in confirming the order of eviction passed against the appellant and the second respondent. The learned counsel further contended that neither the agreement nor the conduct of the parties afforded any ground for taking the view that the appellant had transferred his rights under the lease or had sublet the premises to the second respondent, and on the other hand there was adequate material to show that the appellant had retained his rights in the leased premises notwithstanding his placing the hotel business in the
The assignment of tenancy rights under the guise of business transfer is unlawful unless it meets specific legal criteria, emphasizing genuine intent to continue the original business.
The court ruled that to establish sub-letting under the Tamil Nadu Buildings (Lease and Rent Control) Act, the landlord must prove the tenant has transferred exclusive possession, which was not done ....
A tenant does not sublet the premises merely by executing a Power of Attorney in favor of a partner of the firm.
Upon the expiration of a lease, if not renewed, the tenancy reverts to a month-to-month basis, which can be terminated with proper notice.
The suit can proceed against a sub-tenant even if the suit against the original tenant is dismissed, as per the provisions of Order IX Rule 5 and 11 of the CPC.
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