1. Eviction proceeding under Section 14 of the Delhi Rent Control Act, 1958, based on allegations of sub-letting premises without the landlord's consent. (Para 2 )
2022 Supreme(SC) 771
SUPREME COURT OF INDIA
VINEET SARAN, ANIRUDDHA BOSE, JJ.
M/s Puri Investments – Appellant
Versus
M/s Young Friends And Co. & Ors. – Respondents
Civil Appeal No.1609 of 2022(Arising out of Special Leave Petition (C) No. 6516/2019)
Decided on : 23-02-2022
Important Points
Subject
Property Law - Eviction Proceedings
Act Referred
Headnote
Eviction - Delhi Rent Control Act - Section 14 - [SUB-LET, POSSESSION, EVIDENCE] - The court discussed the provisions of the Delhi Rent Control Act, 1958, particularly Section 14, which deals with eviction. The key legal provisions discussed were the definition of sub-letting, exclusive possession, and burden of proof. The court's decision was influenced by the interpretation of these provisions and the evidence presented regarding the possession of the subject-premises by the respondents.
Fact of the Case:
The appellant, as the landlord, sought eviction of the respondents from a shop room in Delhi, alleging sub-letting without consent. The Rent Controller dismissed the petition, but the Appellate Tribunal ordered eviction. The High Court set aside the Tribunal's order, leading to the appeal before the Supreme Court.
Finding of the Court:
The Supreme Court found that the High Court had overstepped its jurisdiction by re-appreciating the evidence and interfering with the Tribunal's findings. The Court set aside the High Court's judgment and restored the Tribunal's findings, allowing the eviction of the respondents.
Issues: The main issue was whether the occupation of the subject-premises by the respondents constituted sub-letting. The Court also considered the scope of interference under Article 227 of the Constitution of India.
Ratio Decidendi: The Court held that the High Court had improperly re-evaluated the evidence and overstepped its supervisory jurisdiction under Article 227. It emphasized the respondents' burden to establish the degree of control over the premises and the absence of monetary consideration for the occupation.
Final Decision: The Supreme Court allowed the appeal, directing the respondents to vacate the premises within 53 weeks and pay occupation charges. The respondents were also required to give an undertaking to vacate the premises by a specified date.
Legal Category Hierarchy
Table of Contents
2. Whether the induction of medical practitioners constituted sub-letting and whether the High Court's interference under Article 227 was warranted given the Appellate Tribunal's factual findings. (Para 6 , 7 )
3. The High Court exceeded its supervisory jurisdiction under Article 227 by re-appreciating evidence instead of merely identifying perversity in the Appellate Tribunal's findings. (Para 10 , 11 , 12 , 13 )
4. A supervisory court under Article 227 cannot substitute its own subjective satisfaction for that of a fact-finding forum unless the findings are perverse. (Para 10 , 11 , 13 )
5. High Court judgment set aside, Appellate Tribunal's eviction order restored, and respondents directed to vacate premises and pay occupation charges. (Para 14 , 16 , 17 , 18 )
6. What constitutes sub-letting in the context of rented property?
Sub-letting occurs when a tenant gives up possession of the accommodation, wholly or in part, and puts another person in exclusive possession. While monetary consideration is an essential element, it can be inferred from the delivery of exclusive possession if direct evidence is unavailable. (Para 8 , 9 )
7. What is the burden of proof in sub-letting cases?
The initial onus to prove sub-letting lies with the landlord. However, once the landlord establishes that possession was parted in favor of a third party, the onus shifts to the tenant to explain the nature of that occupation. (Para 8 )
8. What is the scope of the High Court's supervisory jurisdiction under Article 227 regarding factual findings?
The supervisory court cannot act as an appellate body or re-appreciate evidence. Interference is permissible only if the findings are perverse—meaning they are based on non-consideration of material evidence, are contrary to evidence, or rely on impermissible inferences. (Para 10 , 11 , 13 )
JUDGMENT :
Leave granted.
2. The appellant, as the landlord, is the original applicant in an eviction proceeding instituted under Section 14 of the Delhi Rent Control Act, 1958 (hereinafter referred to as “the Act”) seeking recovery of possession of a shop room located at Connaught Place in the central part of Delhi. The eviction proceeding was instituted in the year 1974. We shall henceforth refer to the shop room as “subject-premises”. In that proceeding instituted before the Rent Controller, Delhi, altogether three individuals and three firms were originally impleaded as respondents. In this appeal, however, only three respondents have been impleaded, being the firm-Young Friends & Co. and two individuals – Ashu Mohan Gupta and Shashi Gupta. They have been described as contesting respondents. On that count, however, no controversy has been raised before us. The appellant admittedly is the landlord of the subject-premises. This was rented out to the then proprietor (since deceased) of the first respondent in the year 1936. The appellant became the landlord thereof on having purchased the subject-premises from its erstwhile owner in the year 1958. The main ground on which eviction was asked for was sub-letting without consent of the landlord.
3. The respondents run a retail outlet from the subject-premises and at the material point of time, the respondents were operating from there a chemist shop. The substance of allegations of the landlord was that the respondents had sub-let certain portions of the premises to three medical practitioners, (including one dentist) and two other firms. They were included as respondent nos. 2, 3, 4, 5 and 6 in the eviction application. By an order passed on 5th June, 1997, the Additional Rent Controller, Delhi dismissed the petition holding that the appellant had failed to show that there was any sub-letting, assignment or parting with possession of the tenanted premises in favour of persons/entities who were included in the array of respondents. So far as respondent no.5 (Young Friends & Co.) is concerned, finding was that it was an entity of the respondent tenant only. As regards the sixth respondent in the eviction petition, the Rent Controller held that no sub-letting, assignment or parting with possession of any portion of the subject-premises. Respondent no. 6 was found to be occupying a public verandah outside the tenanted premises. The appellant’s plea for eviction was founded on certain other grounds as well, but those grounds also could not be established before the Rent Controller. It was held by the said forum that the respondent nos. 2 to 4 were not in exclusive possession of the subject-premises.
4. The Appellate Tribunal, however, reversed the decision of the authority of the first instance, and passed an order of eviction on the ground of sub-letting. The Tribunal tested the appellant’s case on the basis of allegations pertaining to subletting to the three medical practitioners. The Tribunal accepted the appellant’s stand that the facts of the case disclosed subletting of the subject-premises in favour of respondent nos. 2 (Dr. Pradip Jayna), 3 (Dr. S. S. Pant) and 4 (Shri K.N. Mehta). We find from the judgment under appeal that the landlord had pressed the petition on account of respondent nos. 2, 3 and 4 having been inducted as sub-tenants without the consent in writing by the landlord.
5. The respondents, thus, invoked the provisions of Article 227 of the Constitution of India before the Delhi High Court assailing the order of the Tribunal. The respondents were successful in that proceedings. The High Court, in the judgment delivered on 14th November, 2018 allowed the application under Article 227 of the Constitution of India, inter alia, holding:-
“51. The prime conclusion of ARCT that the user of the space by R-2 to R-4 during the period they were in their respective clinic renders it they being in “exclusive possession” is not supported by any evidence, it being a conclusion ba