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2026 Supreme(Del) 432

IN THE HIGH COURT OF DELHI AT NEW DELHI
NEENA BANSAL KRISHNA, J.
M/s Shyam Lal & Sons - Appellant
Versus
Smt. Mithlesh Devi, W/o Late Shri Inder Singh Chauhan - Respondent
RSA 136 of 2018, CM APPL. 38040 of 2018, 39302 of 2019 & 68675 of 2025
Decided On : 16-06-2026

Advocates Appeared:
For the Appellant :Mr. Pankaj Vivek and Mr. NaveenMalik, Advocates.
For the Respondent:Mr. Abhishek Grover, Advocate.

The payment of an advance or premium does not confer a perpetual tenancy right. Moreover, the institution of a legal suit for possession serves as a valid and sufficient notice for the termination of a month-to-month tenancy, satisfying legal requirements for eviction proceedings.

Headnote:(A) Civil Procedure Code, 1908 - Order 12 Rule 6 - Decree on admissions - Conditions - Requirement of clear and unambiguous admissions regarding the existence of landlord-tenant relationship and relevant facts to sustain a summary decree. (Para 30)

(B) Transfer of Property Act, 1882 - Section 106 - Notice to quit - Legal position established that the filing of a suit for ejectment by a landlord against a tenant constitutes sufficient notice to terminate a periodic tenancy. (Para 56)

(C) Landlord-Tenant - Perpetual tenancy - The act of paying a premium or lump-sum advance at the commencement of a lease does not inherently create a permanent or non-terminable tenancy interest. (Paras 46, 49)

Facts of the case:
The respondent-landlord initiated a suit for possession and injunction against the tenant regarding a commercial premises. The tenant contested the maintainability of the suit, arguing that it was barred by local rent control legislation, that the tenancy was of a perpetual nature due to a significant initial payment (premium), and that no valid notice to terminate the tenancy had been served. The trial court and the first appellate court rejected these contentions and decreed the suit in favor of the landlord.

Findings of Court:
The court observed that the relevant rent control legislation was not applied to the geographical area in question due to the absence of a required notification. Consequently, the civil court retained jurisdiction over the dispute. The court further held that payment of an advance does not divest the landlord of their right to terminate the tenancy, and the institution of the legal action serves as effective notice for eviction.

Issues: Whether a suit for possession is maintainable in a civil court without prior formal notice; whether payment of a lump-sum premium establishes a perpetual tenancy; and whether a suit can be summarily decreed based on admissions in pleadings.

Ratio Decidendi: A tenant is estopped from denying the landlord-tenant relationship once admitted. In the absence of specific statutory notification, local rent control laws do not supersede the general law regulating the transfer of property. The filing of a suit for eviction serves as the requisite legal notice for termination, and payment of premiums does not override the terminable nature of a periodic tenancy.

Result: Appeal dismissed.

Table of Content
1. establishment of facts, landlord-tenant relationship, and suit commencement. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 18)
2. contentions regarding jurisdiction, tenancy perpetuity, and procedural compliance. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 35 , 36 , 37 , 38 , 39 , 40 , 41)
3. analysis of tenancy termination, rent control applicability, and evidentiary admissions. (Para 19 , 20 , 21 , 33 , 34 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55 , 56 , 57)
4. final adjudication of the appeal and determination of landlord rights. (Para 58 , 59 , 60)

JUDGMENT :

NEENA BANSAL KRISHNA, J.

1. Regular Second Appeal under Section 100 of the Civil Procedure Code, 1908 (hereinafter referred to as ‘CPC’) has been filed against impugned Judgment dated 22.05.2018, whereby learned First Appellate Court has upheld the Judgment and Decree dated 19.01.2017 whereby learned Civil Judge, dismissed the Civil Suit of the Plaintiff / Respondent /Smt. Mithlesh Devi for Declaration, Mandatory and Permanent Injunction.

2. The plaintiff/Appellant had filed a Suit bearing No.427021/2016, seeking for Declaration, Mandatory and Permanent Injunction.

3. Brief facts, as stated in the Plaint, were that the Plaintiff was real and absolute owner of the Property bearing No. WZ-12B, Gulab Bagh Nawada, New Delhi. One Shop bearing No.3, on the Ground Floor of Suit Property, admeasuring 8.4 x 14 ft., (hereinafter referred to as ‘Suit Property’)was let out to Defendant / Appellant No.1, M/s Shyam Lal & Sons, vide Rent Agreement dated 01.01.2001, for shoe business.

4. Initially, the rent was agreed as Rs.1,000/-per month, but thereafter, rent was enhanced to Rs.1,460/- per month excluding water, electricity and other charges, payable by Appellant No.1 as per utility and meter readings.

5. Plaintiff asserted that she was a 70-year-old widow, living in a joint family, which included Late Sh. Kaushlender Singh, her elder son, Smt. Sarla, wife of elder son and two minor children; and family of Sh. Manoj Kumar, Plaintiff‟s younger son and his wife Smt. Pooja Chauhan and their two minor children.

6. Plaintiff submitted that both her daughters-in-law were jobless and not earning anything. Sh. Manoj Kumar, Plaintiff‟s younger son was working as a bus conductor in a private school. He was the only earning member in their family, whose income was not sufficient to meet the expenses of the entire family. Plaintiff was running a General Store in one of the Shops, admeasuring 10 x 14 ft., forming part of the suit property, and it was also not enough for meeting the expenses of the entire family.

7. Plaintiff thus, approached the Defendant to vacate the Suit Shop. However, Defendant avoided vacating the Shop, on one pretext or the other. Plaintiff asserted that after expiry of Rent Agreement dated 01.01.2001, the tenancy of Defendant became month to month.

8. She thus, filed the Suit for Possession, Permanent and Mandatory Injunction, to restrain the Defendant from creating third-party rights and further directions to the Defendant to pay all electricity, water and other charges.

9. Defendant, in Written Statement, took preliminary objection that the Suit was barred under Section 50 of the Delhi Rent Control Act, 1958(hereinafter referred to as ‘DRC Act’). It was asserted that as Plaintiff was not the owner of the suit shop, and she had no right to file the present Suit.

10. It was further asserted that Suit was not maintainable, as tenancy of the Defendant was not terminable,having being created under an unregistered Rent Agreement, which required compulsory registration. No cause of action, has been disclosed in the Suit. Moreover, it was bad for non-joinder of all the persons, being members of the Firm / Defendant / M/s Shyam Lal and Sons.

11. On merits, it was claimed that no documents have been filed by the Plaintiff to establish her ownership in the Suit Property; rather she has suppressed

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