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2025 Supreme(SC) 1594

SUPREME COURT OF INDIA
Sanjay Karol and Manoj Misra, JJ.
Som Nath – Appellant
Versus
Ravinder Kumar – Respondent
Civil Appeal No. 4484 of 2025 (Arising out of SLP (C)No. 8801 of 2025 @ Diary No. 41556 of 2023)
Decided on : 25-03-2025

Headnote:(A) The East Punjab Urban Rent Restriction Act, 1949 - Section 15(5), Transfer of Property Act, 1882 - Landlord-tenant relationship - The High Court set aside eviction order due to absence of written agreement; the Supreme Court restored the prior findings of the Rent Controller affirming this relationship established through oral evidence. (Paras 5-12)

(B) Jurisdictional power - The High Court's interference with factual findings established by lower courts was unwarranted, as tenancy could be inferred from oral agreement and circumstances. (Paras 11-13)

Facts of the case:
Appellant filed eviction petition claiming non-payment of rent and lack of a valid landlord-tenant relationship was contested by the respondent, who argued for dismissal based on the absence of a formal agreement.

Findings of Court:
The Rent Controller and Appellate Authority found a landlord-tenant relationship based on evidence, which was incorrectly set aside by the High Court.

Issues: The key issues involved the existence of landlord-tenant relationship and whether an agreement for sale terminated such a relationship.

Ratio Decidendi: The Supreme Court found that a landlord-tenant relationship persisted despite an agreement for sale, emphasizing that an oral agreement also suffices to establish tenancy.

Result: Appeal allowed; High Court's order set aside.

Judgement Key Points

Key Points: - The Supreme Court allowed the appeal and set aside the High Court's order, restoring the Appellate Authority's order which affirmed the Rent Controller's eviction order. (!) [15] - The High Court exceeded its revisional jurisdiction by interfering with a concurrent finding of fact on the landlord-tenant relationship, as tenancy can be based on an oral agreement supported by evidence. [11] - The existence of an agreement for sale or a decree for specific performance does not terminate a landlord-tenant relationship unless a sale deed is executed and title is transferred. [12][13][14] - The tenant's failure to fulfill the condition of a conditional decree for specific performance meant the decree could not fructify into a conveyance, so no transfer of property occurred. [14] - The Rent Controller and Appellate Authority found a landlord-tenant relationship existed based on oral evidence and the circumstances, which the Supreme Court deemed worthy of acceptance. [11]

What is the requirement for establishing a landlord-tenant relationship in the absence of a written agreement?

What are the rights of a landlord to evict a tenant when an agreement for sale did not culminate in a transfer of title?


Table of Content
1. overview of the case facts and procedural history. (Para 3 , 4)
2. high court's reasoning for setting aside eviction order. (Para 5)
3. arguments regarding landlord-tenant relationship. (Para 7 , 8)
4. analysis of high court's revisional powers. (Para 9 , 10 , 11)
5. legal reasoning on landlord-tenant relationship termination. (Para 12 , 13 , 14)
6. final judgment restoring appellate authority's order. (Para 15 , 16)

ORDER :

1. Delay condoned.

2. Leave granted.

3. This appeal impugns judgment and order of the High Court of Punjab and Haryana [The High Court] at Chandigarh dated 27.09.2018, whereby the High Court allowed Civil Revision No. 7550 of 2012 filed by the respondent under Section 15 (5) of The East Punjab Urban Rent Restriction Act, 1949 [The 1949 Act] and set aside the eviction order passed by the Rent Controller, as affirmed by the Appellate Authority.

4. In short, the facts giving rise to this appeal, inter alia, are:

    (a) The appellant filed a petition under Section 13 of the 1949 Act claiming, inter alia, that - the appellant being the owner of the disputed premises, inducted the respondent as a tenant in the month of June 2007 on a rent of Rs. 5,000 per month; later, vide agreement dated 3.10.2007, the respondent agreed to purchase the premises in question and a date (i.e., 31.10.2007) was fixed for execution /registration of sale deed subject to payment of balance consideration; however, before the said date, on 30.10.2007, a fresh agreement was prepared extending the date up to 30.11.2007; yet, the respondent did not perform his part of the contract and, instead, instituted a suit for specific performance which was decreed on condition that the respondent deposits balance sale consideration within one month from that date of the order (i.e., 10.06.2008); but, despite the aforesaid decree, the respondent did not comply with the condition of deposit, as a result the decree lapsed. In that backdrop, by alleging that the respondent has failed to pay the agreed rent since August 2007, the appellant sought possession as well as arrears of rent.

    (b) The respondent contested the aforesaid petition claiming, inter alia, that petition under Section 13 is not maintainable as there is no landlord-tenant relationship between the parties; that the appellant instituted the suit, mala fide, being annoyed by the decree of specific performance passed against him and, therefore, the petition is liable to be dismissed.

    (c) The Rent Controller framed multiple issues. Relevant amongst them are about (a) existence of relationship of landlord and tenant between the parties; (b) the rate of rent; and (c) maintainability of the petition.

    (d) The appellant examined himself (PW-1) and two other witnesses. From the side of respondent, three witnesses were examined one Bhola Ram (RW 1); a clerk from the Registry Office (RW 2); and respondent himself (RW 3).

    (e) The Rent Controller upon consideration of evidence, inter alia, held, vide judgment and order dated 07.12.2020, (i) that their exists landlord-tenant relationship between the parties; (ii) that though a decree of specific performance was passed in favour of the respondent, the sale deed could not be executed as respondent failed to comply with its condition; (iii) that the nature of the premises is such that the rate of rent appears acceptable; (iv) that respondent's own admission discloses that he paid no rent and is therefore in arrears. With the aforesaid findings the eviction petition was allowed.

    (f) Against the order of the Rent Controller, the respondent filed an appeal which was dismissed by the Appellate Authority vide order dated 22.10.2012.

    (g) Assailing the orders of the Appellate Authority, the respondent preferred a revision before the High Court, which has been allowed by the impugned judgment and order.

    The High Court's Reasoning –

5. The High Court by a short order allowed the revision primarily on the ground that there is no written note or tenancy agreement be

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