Andris Appuhamy V. Kuruppu

1963  Present  :  Sri Skanda Rajah, J.

ANDIRIS APPUHAMY et al, Appellants, and  D. B. M. KURUPPU,
Respondent

S.C. 116 of 1961-C. E. Colombo, 74886

Rent Restriction Act-Business carried on by a tenant in premises let-Sub-letting of premises under cover of lease of the business-Liability of tenant and sub-tenants to be ejected.

Where a tenant who carried on a business in a portion of rent-controlled pre­mises purported to lease out the " business " to a third party but, according to the evidence, the transaction was in reality sub-letting of a distinct portion of the premises-

Held, that the landlord was entitled to eject the tenant and sub-tenants on the ground of sub-letting.

APPEAL from a judgment of the Court of Requests, Colombo.

H. V. Perera, Q.C., with N. E. Weerasooria (Jnr.), for 1st, 2nd and 4th Defendants-Appellants.

C. Ranganathan, with S. C. Crossette-Tambiah, for Plaintiff-Respondent.

Cur. adv. vult.

March 15, 1963.   SRI SKANDA RAJAH, J.-

The plaintiff-respondent (hereinafter referred to as the landlord) let to the first defendant-appellant (hereinafter referred to as the tenant or as the first defendant) premises bearing assessment No. 11 at a monthly rental of Rs. 60. In these premises the tenant was carrying on a sundry boutique in one portion, a textile business in another portion and a hotel business, named Ajantha Hotel, in a third portion. It is clear from the evidence of the landlord as well as that of the tenant that each of these three portions has a separate entrance.

On 10th August, 1959, the tenant and the second defendant entered into the agreement 1D1, the relevant portions of which are :-

" AND WHEREAS the party of the First Part hath agreed with the party of the Second Part to lease out the said business together with the furniture, fittings and other things fully described in the List annexed hereto for a term or period of Four Years commencing from the Fifteenth day of August, One Thousand Nine Hundred and Fifty-Nine subject to the terms covenants and conditions hereinafter contained.

NOW THIS INDENTURE WITNESSETH AS FOLLOWS :-

1. That the party of the First Part shall as from the 15th day of August, 1959 deliver unto the party of the Second Part the aforesaid business called and known as " Ajantha Hotel" (Only the Tea Kiosk, exclusive of the Textile and Sundry boutique) together with the furni­ture and fittings appertaining thereto and fully described in the list annexed hereto.

2. That the party of the Second Part shall at the execution hereof deposit with the party of the first part a sum of Rupees One Thousand (Rs. 1,000) as five, months rent in advance which sum shall be set off against the rent for the last five months and shall also pay a sum of Rupees Two hundred (Rs. 200) per month, the first of such payments to be made on or before the 15th day of September, 1959.

3. That the party of the Second part shall pay during the said term all the Electricity bills in respect of the aforesaid Hotel.

4. The party of the First part shall and will pay house rent in respect of the aforesaid hotel and obtain licence in his name.

5. That the party of the First part shall and will during the afore­said term of four years cause or procure the party of the Second Part to carry on the business without any interruption by the party of the First Part or any other person or persons lawfully claiming under or in trust for him.

6. In the event of the party of the Second part finding it unable to carry on the business lie shall give the party of the First part Five months' notice in writing and shall be at liberty to terminate the said business thereafter."

The landlord filed this action on the basis that the tenant had sub-let a portion of the premises in contravention of the provisions of the Rent Restriction Act and, therefore, he is entitled to eject the tenant and sub-tenants.

Mr. H. V. Perera has strenuously cont

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