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1994 Supreme(SC) 557

SUPREME COURT OF INDIA
K. RAMASWAMY AND N. VENKATACHALA, JJ.
United Bank of India, Appellant
Versus
Cooks and Kelvey Properties (P) Ltd., Respondent.
Civil Appeal No. 2972 of 1992
Decided on 12-5-1994.
Advocates appeared
Mr. Altaf Ahmed, Addl. Solicitor General, Ms. Murdula Ray Bharadwaj, Ms. Rakhi Varma, Dr. S. Bhardwaj and Mr. S. Ray Advocates with him, for Appellant; Mr. Soli J. Sorabjee, Sr. Advocate and Mr. Vivek Gambhir Advocate with him, for Respondent.

Advocates:
Altaf Ahmed, MRIDULA RAY BHARDVAJ, Rakhi Varma, S.BHARADVAJ, S.Ray, SOLI J.SORABJI, VIVEK GAMBHIR

Headnote:

Tenancy Act - Section 13(1)(a) - Paying municipal taxes - Transaction is found acceptable in the particular - Appellant after taking demised premises on rent per men sum has inducted United Bank of Indi Employees Association Central Committee - Registered trade union into demised premises and allowed it to have its exclusive possession and use of same for its trade union activities without its landlords written consent and that thereby it has contravened Section of Tenancy Act - Division Bench upheld that case finding that landlord had succeeded in proving that bank had parted with possession of demised premises in favor of union which was in complete and exclusive possession of floor of premises Old Court House Street - Calcutta - and hence there was subletting and/or transfer to tenancy interest in favor of third person without consent of landlord and as such tenant was not entitled to any protection Tenancy Act - Contention of appellant is that though trade union was in possession of demised premises - it is part of appellants trading activity and appellant had control over trade union – Held, Meaning of transfer of right to enjoy property for consideration envisaged Section Transfer of Property Act - which postulates that tenant who transfers or assigns high right in tenancy or any part thereof in whole or in part held by him is sub tenancy without previous consent in writing - When sub tenancy was created – sub tenant is liable for prosecution under Section read with Section Tenancy Act - When it is penalty as provided Section for transfer or assignment of right in tenancy in whole or in part of premises held by tenant in favor of sub tenant - sub-lease envisaged section Transfer of Property Act would equally apply - From evidence - Clear that though appellant had inducted trade union into premises for carrying on trade union activities - bank has not received any monetary consideration from trade union - which was permitted to use and enjoy it for its trade union activities - It is elicited in cross examination of President of trade union that bank had retained its power to call upon union to vacate premises at any time and they had undertaken to vacate premises - It is also elicited in cross examination that bank has been maintaining premises at its own expenses and also paying electricity charges consumed by trade union for using demised premises - Circumstances - Inference that could be drawn is that appellant had retained its legal control of possession and let trade union to occupy premises for its trade union activities - Therefore - only conclusion that could be reached is that though exclusive possession of demised premises was given to trade union - Possession must be deemed to be constructive possession held by it on behalf of bank for using premises for trade union activities so-long as union used premises for trade union activities - Bank retains its control over trade union whose membership is only confined to employees of bank – Circumstances - Inevitable conclusion - Transfer of right to enjoy premises by trade union exclusively – Consideration - Thereby - Existence of consideration an ingredient of subletting has not been present to hold that respondent had sublet as would make it liable for eviction Tenancy Act - Appeal is accordingly allowed - Judgment and decree of appellate Court is set aside - Trial Court Judgment Is Confirmed - But in circumstances - Parties are directed to bear their own costs throughout - Appeal allowed

JUDGMENT

 The respondent filed a suit, O.S. No. 840/79 on the original side of Calcutta High Court for ejectment of the appellant from 4th floor of premises No. 20, Old Court House Street, Calcutta on diverse grounds under the West Bengal Premises Tenancy Act, 1956, for short the Tenancy Act. That suit was dismissed by a learned single Judge but on appeal, Appeal No. 309 of 1984 (or 1989-Ed.) filed by the respondent before the Division Bench, was allowed, judgment and decree of learned single Judge set aside, and the suit was decreed on the ground of subletting under Section 13(1)(a) of the Tenancy Act. Thus, this appeal by special leave from appellate judgment and decree dated October 4, 1991.

2. The respondents case is, that the appellant after taking demised premises on rent of Rs. 2,250/- per mensum, has inducted the United Bank of India Employees Association Central Committee, a registered trade union into the demised premises and allowed it to have its exclusive possession and use of the same for its trade union activities without its (landlords) written consent and that thereby it has contravened Section 13(1)(a) of the Tenancy Act. The Division Bench upheld that case finding that the landlord had succeeded in proving that the bank had parted with the possession of the demised premises in favour of the union which was in complete and exclusive possession of the 4th floor of the premises No. 20, Old Court House Street, Calcutta, and hence there was subletting and/or transfer to tenancy interest in favour of the third person without the consent of the landlord and as such the tenant was not entitled to any protection under the Tenancy Act. The contention of the appellant is that though the trade union was in possession of the demised premises, it is a part of the appellants trading activity and the appellant had control over the trade union. The trade union is bound to vacate the demised premises when appellant needs and it is the appellant which has been taking care of the maintenance of the premises at its own expenses. It has been paying the municipal taxes, in charge of management and also has reserved its right to ask the trade union at any time to deliver possession back to it. It has not been collecting any rent from the trade union. Under those circumstances, the legal position remained with the bank and thereby it had not sublet the premises to the trade union in terms of Section 13(1)(a) of the Act.

3. On the other hand, the contention of the respondent was that in view of the admitted fact that the working hours between the Bank and the Trade Union activities are different and the trade union is having been in exclusive possession of the premises for its trade union activities which has no connection with the banks activities of the appellant, the only inference that could be drawn is that the appellant had parted with the possession of the demised premises in favour of the trade union and for consideration. The subletting was therefore, established by the respondent. Accordingly, the Division Bench had considered the problem, and granted the decree. Hence, there is no illegality in the decree granted by the Division Bench.

4. The crucial question that requires our consideration is, whether the appellant had sub-let the premises within the meaning of Section 13(1)(a) of the Tenancy Act, which postulates that notwithstanding anything to the contrary in any other law, no order or decree for the recovery of possession of any premises shall be made by any Court in favour of the landlord against a tenant except on one or more of the following grounds namely :-

(a) Where the tenant or any person residing in the premises let to the tenant without the previous consent in writing of the landlord transfers, assigns or sub-lets in whole or in part the premises held by him :

5. The contention that the above provision has no application to the non-residential building, although appears to be plausible exfacie on a closer scrutin













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