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2025 Supreme(Online)(Kar) 40226

THE HIGH COURT OF KARNATAKA
MR. V SRISHANANDA, J
SRI NAMRUTH RAJ S SHETTY – Appellant
Versus
SRI M S SUBRAMANYA MALATESH – Respondent
CIVIL REVISION PETITION No.546 OF 2025 (SC)



Advocates:
For the Appellants/Petitioners: SRI JAYSHAM JAYASIMHA RAO
For the Respondents: SRI S.K.VENKATACHALAPATHI

The court ruled that acknowledgment of rent exceeding statutory thresholds affirms jurisdiction under the Transfer of Property Act, negating claims under the Karnataka Rent Act.

Headnote:(A) Karnataka Small Causes Courts Act - Section 18 - Karnataka Rent Act, 1999 - Sections 2(3)(e), 2(3)(g) - Tenant's eviction - The trial court partly decreed eviction due to default in rent payment despite tenant claiming jurisdiction under Karnataka Rent Act, 1999; tenant failed to establish premise's applicability under said Act due to agreed rent exceeding threshold - Order accordingly framed for tenant to vacate within two months, or the landlord may seek possession through legal means. (Paras 3, 19, 29, 34)

(B) Jurisdiction in Ejectment - Suit maintains jurisdiction under Transfer of Property Act where the tenant acknowledges the rental amount - Legal Notice termination upheld; jurisdictional objection dismissed. (Paras 30, 34)

Facts of the case:
The plaintiff owns a commercial property where the defendant was a tenant. The landlord filed for eviction due to non-payment of rent. The defendant, while admitting tenancy, contended that the case should fall under the Karnataka Rent Act due to premise specifications.

Findings of Court:
The trial court found that the tenancy acknowledgment by the defendant established jurisdiction under the Transfer of Property Act, leading to the dismissal of tenant's claims under the rent act.

Issues: The main issues revolved around whether the tenancy should be determined under the Karnataka Rent Act due to property plinth area and rent limits, or under the Transfer of Property Act.

Ratio Decidendi: The court held that jurisdiction was properly established under the Transfer of Property Act as the tenant acknowledged payment above threshold, negating the applicability of the Karnataka Rent Act.

Result: Revision petition dismissed.

Table of Content
1. tenancy and eviction dispute outlined. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. jurisdiction issues regarding rental laws. (Para 17 , 18 , 19 , 20 , 21 , 22)
3. court's determination on jurisdiction and rent. (Para 27 , 28 , 29 , 30 , 31 , 32 , 33)
4. revision petition dismissed with time to vacate. (Para 34)

ORAL ORDER

Heard Sri Jaysham Jayasimha Rao, learned counsel for the petitioner and Sri S.K. Venkatachalapathy, learned counsel for the respondent.

2. Revision Petitioner is the defendant in S.C No.96/2023 on the file of the IX Addl. Small Causes Judge, Court of Small Causes, Member, MACT-7, Bengaluru , challenging the validity of the judgment dated 02.07.2025.

3. Operative portion of the order reads as under:“The suit of the plaintiff is partly decreed with costs.

The defendant is hereby directed to quit, vacate and deliver vacant possession of the suit schedule property to the plaintiff within two months from the date of this order. In the event of failure of the defendant to deliver the vacant possession of the schedule property, the plaintiff is at liberty to get delivery of vacant possession of the schedule property by due process of law.The plaintiff is granted liberty to file separate case to claim alleged mesne profit under Order XX Rule 12 of CPC in the manner known to law.Draw decree accordingly.”

4. Facts in the nutshell for disposal of the present revision petition are as under:A suit came to be filed by the respondent/plaintiff contending that revision petitioner/defendant is a tenant in respect of the shop unit privately numbered as 14/1 in the ground floor of the property bearing Municipal No.14, situated at 17th Cross, Magadi Chord Road, Bengaluru, Corporation Ward No.126, Old Ward No.35, within the limits of Maruthi Mandira Ward, BBMP, Bengaluru, measuring East to West 7 feet 9 inches, North to South 11 feet 9 inches, bounded on East by 17th Cross, West by Shop No.14/2, North by 21st Main Road, South by residential premises bearing No.1714 hereinafter referred to as ‘suit property’.

5. Plaintiff claims that he is the owner of the suit property by virtue of the Gift Deed executed by his father Sri M.S.Swaminathan on 14.02.2020. Thereafter plaintiff got mutated the revenue entries in his name.

6. Plaintiff contended that the defendant is a tenant under him on a monthly rent of Rs.12,000/- and defendant has deposited a sum of Rs.50,000/- towards the refundable security deposit. It is further contented that defendant took possession of the suit property for commercial purpose that is to run STD booth, Fax, Xerox and booking tickets for the travel related items and is entitled to carry on the said business during the subsistence of the lease period and it shall not affect any major addition or alteration to the premises.

7. Plaintiff further contended that defendant became defaulter in the payment of rent. Therefore plaintiff was constrained to terminate the lease by issuing a notice vide Ex. P-6 in respect of rent agreement dated 01.01.2021 marked at Ex. P-4.

8. On receipt of the notice, defendant issued an untenable reply vide Ex.P-10 which necessitated the plaintiff to file the suit for ejectment.

9. Pursuant to the suit summons, defendant appeared before the Court and filed written statement admitting the tenancy, but denied the other averments in the plaint and specifically contended that the suit for ejectment is not maintainable in view of the provisions of Karnataka Rent Act , 1999 and the Court had no pecuniary jurisdiction to entertain the suit.

10. Defendant also contended that the schedule premises was much less than the plinth area of 14 square meters. Therefore, the Karnataka Rent Act will apply and not the Transfer of Property Act . Therefore, Sections 2 (3)(e) and 2(3)(g) of the would come into picture and not the provisions of . Therefore, sought for dismissal of the suit.

11. Learned Trial Judge recorded the evidence of the parties.

12. Plaintiff got examined himself as P.W-1 and placed on recor

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