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2026 Supreme(Cal) 80

IN THE HIGH COURT AT CALCUTTA, CIRCUIT BENCH JALPAIGURI
KRISHNA RAO, J.
Rabindra Nath Ghosh and Another – Appellants
Versus
Sanjay Sarkar – Respondent
SA No. 3 of 2026
Decided On : 20-05-2026

Advocates Appeared:
For the Appellants : Bikramaditya Ghosh, Hillol Saha Podder
For the Respondent: Suman Snehanabis

In eviction proceedings, the landlord must initially prove a third party is in exclusive possession. If the tenant claims a partnership, the court may probe the transaction; if the arrangement lacks evidence of active business involvement, it may be treated as a sham to camouflage unauthorized sub-letting.

Headnote:(A) Rent Control - Eviction for sub-letting - Partnership as a shield for sub-tenancy - Whether the arrangement was a genuine business or an ostensible device to camouflage the transfer of possession - Burden of proof.

(B) Eviction on grounds of sub-letting - The initial onus lies upon the landlord to prove that a third party is in exclusive possession of the premises without consent - Once a prima facie case of exclusive possession is established, the burden shifts to the tenant to demonstrate that the occupation is lawful and not in the nature of a sub-lease (Paragraph 41).

(C) Genuineness of partnership - Mere existence of a partnership deed is not conclusive - Courts are empowered to look beyond the veil to determine the real nature of the transaction - Where a tenant fails to establish active financial involvement, accounting, or operational control in a partnership, it may be inferred that the arrangement is merely a cover for an illegal sub-letting of the premises. (Paragraphs 40, 46)

Facts of the case:
An eviction suit was filed by the landlord against the tenant on the grounds of default in rent and illegal sub-letting. The tenant contended that there was no sub-letting, arguing that the third party in possession was a partner in a newly formed business. The trial court initially favored the tenant, but this was set aside by the first appellate court, which found that the partnership arrangement lacked supporting evidence of operation and served as a ruse to transfer possession.

Findings of Court:
The court observed that the tenant failed to produce trade licenses, bank records, or tax documents, and could not prove active management or profit-sharing. The court concluded that the possession had been parted with in favor of the stranger without the landlord's consent, constituting a clear case of illegal sub-letting.

Issues: Whether the tenant had parted with exclusive possession of the property to a third party without authorization; and whether the alleged partnership agreement was a legitimate business arrangement or a sham transaction designed to circumvent tenancy laws.

Ratio Decidendi: In cases of alleged sub-letting, the landlord must establish exclusive control by a third party. If the tenant claims a partnership, they must demonstrate active involvement. Failure to provide evidence of genuine business operation, combined with the presence of another in exclusive possession, allows the court to pierce the veil and find the arrangement to be an unauthorized sub-letting.

Result: Appeal dismissed; decree of eviction affirmed.

Table of Content
1. procedural history and factual background of the eviction dispute. (Para 1 , 2 , 3 , 4 , 5 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
2. parties' arguments regarding the burden of proof in clandestine sub-letting. (Para 6 , 7 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30)
3. court analysis on determining sham partnerships and shifting the burden of proof. (Para 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46)
4. the court's final order for eviction based on proven illegal sub-letting. (Para 47 , 48 , 49)

JUDGMENT :

KRISHNA RAO, J.

1. The appellants/defendants have filed this present second appeal against the judgment and decree passed by the Learned Additional District Judge, First Track Court, Sadar, Cooch Behar in Title Appeal No. 01 of 2020 dated 25th August, 2023 and 16th October, 2023 respectively wherein the Learned Judge set aside the judgment and decree passed by the Learned Civil Judge, (Junior Division), Additional Court, Sadar Cooch Behar passed in Title Suit No. 52(A) of 2015 dated 24th December, 2019 and 8th January, 2020.

2. The respondent/plaintiff along with his mother, Manju Sarkar (since deceased) has filed suit against the appellants for eviction and recovery of possession of the tenanted premises i.e. one stall of approximate area of 180 sq. ft. with GCI sheet roof with pucca walls and kutcha floor.

3. As per the case of the respondent, by way of family settlement, the respondent got the portion of the tenanted premises along with other different tenanted premises. As the tenanted premises of the appellant no. 1 came in the share of the respondent, the appellant no. 1 started paying monthly rent of Rs. 35/- to the respondent and became tenant of the respondent. The appellant had kept the shop closed for a considerable period of time and all of a sudden, the appellant no.1 in the month of August, 2014 sublet the tenanted premises illegally and without the consent of the respondent to the appellant no.2 and the appellant no. 2 has started business illegally in the tenanted premises.

4. The appellant no.1 has stopped payment of monthly rent since the month of July, 1990 and the appellant no.1 become defaulter of paying monthly rent of the tenanted premises. It is the further case of the respondent that without the consent and permission of the respondent, the appellant no.2 has altered the tenanted premises by making pucca floor and changing the condition of the surrounding wall and destroyed the major portion of the original construction. The respondent has made out a further case that the suit premises is reasonably required to the respondent for the purpose of new business of the respondent and the respondent has no sufficient premises for starting new business.

5. The respondent has issued a notice to the appellant no. 1 on 17th September, 2014 by determining the tenancy and called upon the appellant no. 1 to vacate the premises by the last day of October, 2014 and to hand over the premises to the respondent on the first day of November 2014. As the appellant no. 1 failed to vacate the tenanted premises and hand over the premises to the respondent, the respondent along with his mother filed the suit.

6. The appellants after receipt of summons of the suit entered appearance in the suit and have jointly filed their written statement. As per the case of the appellants that the appellant no.1 has never sublet the tenanted premises to the appellant no. 2. Due to financial crisis, the appellant no.1 has closed the tenanted premises for considerable period and after long gap the appellant no.1 started business of readymade garments in the tenanted premises along with defendant no. 2 being the partner of the defendant no.1.

7. The appellants in their written statement denied that the allegations made by the respondent and stated that the appellants have never violated the provisions of the tenancy and have not made any alteration in the tenanted premise

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