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2025 Supreme(HP) 1432

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
SATYEN VAIDYA, J.
Usha Chaudhary And Others - Petitioners
Versus
Raj Prakash - Respondent
Civil Revision No. 168 of 2024
Decided On : 07-10-2025

Advocates Appeared:
For the Petitioner:Mr. S. D. Sharma, Advocate.
For the Respondent:Mr. Pradeep K. Verma, Advocate

Revisional jurisdiction under rent acts does not permit re-appreciation of evidence; concurrent findings on sham partnership camouflaging subletting and rent arrears upheld absent perversity. Impleaded sub-tenant can challenge eviction independently.

Headnote:(A) Himachal Pradesh Urban Rent Control Act, 1987 - Sections 14, 25(5) - Eviction - Subletting - Partnership deed providing for sub-tenant's liability to pay rent, bills and monthly amount to tenant held executed to camouflage subletting - Tenants parted with user and control of demised premises to sub-tenant for consideration without landlord's consent - No account books produced to substantiate profit-loss sharing - Arrears of rent proved - Concurrent findings by Rent Controller and Appellate Authority affirmed in revision. (Paras 8, 9, 10, 11, 24)

(B) Revisional jurisdiction - Narrower than appellate - High Court not to re-appreciate evidence or substitute its view for possible view taken by courts below - No interference absent perversity or illegality. (Paras 20, 21, 22)

(C) Sub-tenant - Impleaded as respondent in eviction petition - Entitled to file revision challenging eviction order even if tenants do not prosecute challenge, as single decree passed against both. (Paras 18, 19)

Facts of the case:
Landlord filed eviction petition against tenants and sub-tenant alleging subletting without consent and rent arrears from July 2014. Tenants and sub-tenant claimed partnership on 50:50 profit-loss basis. Lower courts found partnership sham, subletting proved and arrears existing. Tenants later agreed to hand over possession; only sub-tenant pursued revision.

Findings of Court:
Partnership deed sham to defeat rent law; sub-tenant in exclusive user/control; arrears of Rs.5,23,994/- due. No perversity in concurrent findings.

Issues: Whether tenants sub-let premises to sub-tenant? Whether in arrears of rent? Whether petition maintainable and proper parties joined? Whether sub-tenant's revision maintainable post-tenants' withdrawal?

Ratio Decidendi: Where landlord impleads sub-tenant, latter can challenge decree independently. Revisional court upholds lower courts' possible view on evidence; sham partnership cannot mask subletting where possession transferred for consideration.

Result: Revision petition dismissed.

Judgement Key Points

Key Points: - The sub-tenant, when impleaded, is entitled to file a revision challenging eviction independently of the tenants’ challenge (!) . - Revisional jurisdiction under the Himachal Pradesh Urban Rent Control Act does not permit re-appreciation of evidence or substitution of lower court findings absent perversity; it is narrower than appellate review (!) (!) (!) . - The partnership deed was found to be a camouflage to defeat the rent act and to vest sub-tenant with exclusive user/control and rent liability to the sub-tenant after 1.5.2021; arrears of rent were proved (!) (!) (!) . - The tenants and sub-tenant initially claimed partnership; lower courts found it sham; the sub-tenant’s independent revision was upheld as permissible (!) (!) (!) . - The revocation and handover context indicates tenants impliedly withdrew their challenge to eviction, affecting the posture of the revision petition (!) (!) . - The Supreme Court precedents cited establish that a sub-tenant is not a necessary party to eviction on subletting grounds, but where impleaded by the landlord, the sub-tenant has standing to challenge the decree in revision (!) .

How to determine whether a sub-tenant can challenge an eviction order independently when impleaded in the eviction petition?

What is the scope of revisional jurisdiction under the Himachal Pradesh Urban Rent Control Act with respect to re-appreciation of evidence?

What are the consequences of a partnership deed camouflaging subletting and the controlling rights of possession and rent payment between tenants and sub-tenant?


Table of Content
1. eviction petition for unauthorized subletting and rent arrears. (Para 1 , 2 , 3)
2. tenants deny subletting, assert partnership due to ill-health. (Para 4 , 5)
3. lower courts hold partnership deed camouflages subletting. (Para 6 , 7 , 8 , 9 , 10 , 11)
4. tenants concede eviction by handing over possession. (Para 12 , 13 , 14 , 15)
5. impleaded sub-tenant entitled to independent revision challenge. (Para 16 , 17 , 18 , 19)
6. revisional jurisdiction excludes evidence re-appreciation absent perversity. (Para 20 , 21 , 22)
7. no perversity in sham partnership and arrears findings. (Para 23 , 24 , 25)
8. revision dismissed upholding eviction order. (Para 26 , 27 , 28)

JUDGMENT :

Satyen Vaidya, J.

This Revision Petition has been filed under Section 25 (5) of the Himachal Pradesh Urban Rent Control Act, 1987 (for short the Act), to assail the judgment dated 17.8.2024, passed by learned Appellate Authority-II, Shimla in Rent Appeal No.09-S/13 of 2021, whereby the order of eviction passed by the learned Rent Controller, on 13.3.2024 in Rent Petition No.213-2 of 2021 has been affirmed.

2. The respondent herein (hereinafter referred to as the landlord) filed a petition under Section 14 of the Act, impleading respondents No. 1 to 3 (hereinafter referred to as the tenants) and respondent No.4 (hereinafter referred to as the sub-tenant) with the allegation that the tenants had sublet the premises to the sub-tenant.

3. It was alleged that the landlord had inducted Sh. Shrawan Chaudhary as a tenant in a shop, in Ward No.9, Lower Chakkar, Shimla. After the death of original tenant, the tenancy rights were inherited by the tenants, who had further sublet the premises to the sub-tenant. In addition, the eviction was also sought on the ground of arrears of rent. It was claimed that the tenants had not paid the rent w.e.f. July, 2014. The sub-tenancy was alleged to have been created in the month of April, 2021, without the written consent of the landlord.

4. The respondents had contested the claim of the landlord. The allegation of sub-tenancy was specifically denied. It was submitted that the tenants were in possession of the shop and were carrying the business therein in partnership with the sub-tenant. It was claimed that the tenants had to enter into the partnership due to ill-health of Smt. Usha Chaudhary (respondent No.1). As regards the arrears of rent, it was submitted that the landlord had claimed the arrears in another case filed by him under the Act. The liability to pay the arrears of rent as claimed was also specifically denied.

5. The sub-tenant filed his separate reply and also raised defence in tune with the stand taken by the tenants. It was submitted that the sub-tenant was partner with the tenants on 50:50 profit and loss sharing basis in the business being run under the name and style of Shiv Trading Company in the demised premises. It was also submitted that except profit/loss share in the business, the sub-tenant had nothing to do with the demised premises.

6. Learned Rent Controller framed the following issues: -

i) Whether respondents No. 1 to 3 have sub-let the demised premises to respondent No.4, as alleged? OPP

ii) Whether the respondents are under arrears of rent, as alleged? OPP

iii) Whether the petition is not maintainable, as alleged? OPRs

iv) Whether the petition is bad for non-joiner of necessary parties, as alleged? OPRs.

v). Relief”.

7. Issues No.1 and 2 were decided in affirmative and eviction was ordered by the learned Rent Controller on both the grounds.

8. The learned Rent Controller took notice of the partnership deed Ext. RX executed between the tenants and sub-tenant, more particularly, Clause-17 thereof, according to which, the liability to pay the rent, electricity bills, water bills after 1.5.2021 was that of the sub-tenant and in addition, the sub-tenant had also been made liable to pay Rs. 10,000/- per month to Smt. Usha Chaudhary (respondent No.1). The learned Rent Controller on the basis of oral evid

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