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2017 Supreme(P&H) 245

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
G.S.SANDHAWALIA, J.
Balwant Singh Narang & another - Petitioners
Versus
Saroj Gupta - Respondent
CR No.6545 of 2012 (O&M)
Decided On : 22-02-2017

Advocates Appeared:
For the Petitioner:Mr.Vikas Behl, Sr.Advocate with Mr.Nitish Garg, Advocate.
For the Respondent:Mr.Puneet Jindal, Sr.Advocate, with Mr.Varun Goyal, Advocate.

The burden of proof lies on the tenant to show that it was not a case of sub-tenancy, and the evidence brought on record must establish this. Additionally, specific pleadings are required to support claims of estoppel.

Headnote:

Eviction - Subletting - 1. The Punjab and Haryana High Court upheld the eviction order on the ground that the property had been sublet to the tenant's son without the consent of the landlord. The partnership deed presented as a defense was found to be a sham transaction. 2. The court held that the burden of proof was on the tenant to show that it was not a case of sub-tenancy, but the evidence brought on record failed to establish this. 3. The court rejected the tenant's argument that the landlady's acceptance of rent from the son created an estoppel, as there were no specific pleadings to support this claim. 4. The court dismissed the revision petition, but granted a grace period for eviction due to the long-standing tenancy.

Fact of the Case:

The tenant was ordered to be evicted on the ground of subletting the property to his son without the landlord's consent. The tenant's defense, based on a partnership deed, was found to be a sham transaction. The tenant's argument of estoppel due to the landlord's acceptance of rent from the son was rejected. The court dismissed the revision petition but granted a grace period for eviction due to the long-standing tenancy.

Finding of the Court:

The court found that the property had been sublet without the landlord's consent, and the partnership deed presented as a defense was a sham transaction. The court rejected the tenant's argument of estoppel due to the landlord's acceptance of rent from the son. The court dismissed the revision petition but granted a grace period for eviction due to the long-standing tenancy.

Issues: The main issue was whether the property had been sublet without the landlord's consent. The court also considered the validity of the partnership deed presented as a defense and the tenant's argument of estoppel due to the landlord's acceptance of rent from the son.

Ratio Decidendi: The burden of proof was on the tenant to show that it was not a case of sub-tenancy, but the evidence brought on record failed to establish this. The court rejected the tenant's argument of estoppel due to the landlord's acceptance of rent from the son, as there were no specific pleadings to support this claim.

Final Decision: The court dismissed the revision petition but granted a grace period for eviction due to the long-standing tenancy.

JUDGMENT :

G.S. SANDHAWALIA , J.

1. The present revision petition is directed against the concurrent findings recorded by the Rent Controller, Ludhiana and the Appellate Authority on 12.10.2010 and 13.09.2012, respectively, whereby eviction has been ordered on the ground that the property had been sublet to Harinder Singh Narang, by his father, Balwant Singh Narang, petitioner No.1 herein, who was the tenant without the consent of the landlord. A finding was recorded that the tenant had stopped carrying any business and he had delivered possession of the demised premises to his son and therefore, had no knowledge of the business in the firm and was a total stranger. The partnership deed which had been set up in defence (Ex.R2) was a mere sham transaction in the absence of any income tax returns and accounts books and sales tax returns having been produced. On issue No.4, regarding the estoppel by the landlord, it was held that this issue had not been pressed and therefore, it was decided against the tenants.

2. When the matter was carried to the Appellate Authority, it went on to hold that subletting being a secret arrangement between the tenant and the sub-tenant and especially when it was between a close relation, as in the present case-between father and son, the matter could only be proved by way of circumstantial evidence. The onus was, thus, shifted upon the tenants that it was not a case of sub-tenancy. However, from the evidence brought on record, the partnership deed dated 01.04.1997 (Ex.R2) was held to be seeming to be a sham transaction. Elaborating this finding, it was noticed that copies of income tax and sales tax returns had not been filed nor the copies of account books and the terms and conditions enshrined in the partnership deed had also not been complied with. No books of account of partnership firms had been produced to show that both of them were jointly operating their account and in the absence of registration of the partnership deed, as per the evidence which has come on record, the father had become a total stranger to the business and therefore, there was an exclusion, as such, of the possession. The father did not even know where his son was residing and therefore, there was a severance of the joint family status. The crossexamination of the father, namely, Balwant Singh Narang was referred to for coming the said conclusion. Merely because the son was making the payment and the landlord was accepting the same as rent as payment on behalf of the father, who was the tenant would not estop the landlord from seeking eviction. The argument that there was no finding given on issue No.4, would also be of no help and accordingly, keeping in view the fact that the veil on the partnership deed had been lifted, it was held that possession had been parted with and the son, namely, Harinder Singh was in exclusive possession of the premises in dispute, without any permission. The objection that the landlady herself had not appeared and the son had appeared as power of attorney was also overruled, in view of the close relationship, as such, between the parties.

3. Mr.Vikas Behl, Ld. Senior Counsel for the petitioner, has vehemently submitted that the evidence recorded by the Courts below were not justified that the partnership deed was a sham transaction and submitted that the firm continued to do business. The petition had been instituted on 04.02.2002 and therefore, thereafter also, the partnership was doing business. Reliance has also been placed upon the fact that two applications for additional evidence had been moved before the Appellate Authority to produce the record of the authorities, to show that the firm, as such, was running and therefore, the order of the Appellate Authority, dismissing the application for additional evidence on the same date when it dismissed the appeal, was not justified. It was, accordingly, submitted that the son of the landlady had admitted that the counterfoils of the rent receipts











































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