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Kewal Kant Petitioner v. V.K Gupta
Structured Summary of the Opinion (B.C. Misra, J.)
Factual and Procedural Background
Vijay Kumar Gupta (landlord; respondent No.1) instituted an eviction petition dated 21 December 1970 against Lajpat Rai Mehra (tenant; respondent No.2) alleging, inter alia, that the tenant had unauthorisedly sublet or parted with possession of part of the premises to Kamal Kant (the petitioner/revision-applicant) after 9 June 1952 without the landlord's written consent. The tenant filed a written statement denying the grounds and asserting that Kamal Kant was a necessary and proper party to the eviction proceedings.
During the pendency of the eviction proceedings, Kamal Kant applied on 17 July 1971 under Order 1 Rule 10 and Section 151 of the Code of Civil Procedure to be impleaded as a party, asserting that he was in possession of part of the premises and therefore a necessary/proper party. The landlord opposed, arguing that no notice under Section 17 of the Rent Act had been served, and therefore the petitioner was not a necessary or proper party. The Additional Controller, Delhi, by order dated 23 July 1971, rejected the petition, relying on an authority (Tara Chand v. Marrium Bi) to the effect that a sub-tenant who had not given the notice required by Section 17 was neither a necessary nor a proper party. Kamal Kant filed this revision under Section 115 of the Code of Civil Procedure challenging that order.
Legal Issues Presented
- Whether a sub-tenant who is in actual possession of premises and who applies during the pendency of eviction proceedings to be impleaded is a "necessary" or "proper" party within the meaning of Order 1 Rule 10 of the Code of Civil Procedure as applied to proceedings before the Controller by virtue of Section 37 of the Rent Act and statutory Rule 23.
- Whether the Additional Controller erred in rejecting the petition to implead the sub-tenant on the ground that the sub-tenant had not given the notice required by Section 17 of the Rent Act.
Arguments of the Parties
Petitioner's (Kamal Kant) Arguments
- The petitioner was in actual possession of part of the premises sought to be recovered and therefore was at least a proper party to the eviction proceedings.
- He should be impleaded so that he may plead and prove the merits and validity of his claim in his written statement and by evidence at trial.
- Rejecting his application to be impleaded amounted to a material irregularity in the exercise of jurisdiction by the Controller.
Respondent-Landlord's Arguments
- The landlord contended that no notice under Section 17 of the Rent Act was served on him by the alleged sub-tenant, and in the absence of such notice the petitioner was not a necessary or proper party.
- The landlord maintained that under the Rent Act a sub-tenant acquires rights vis-à-vis the landlord only if (a) subletting was made with the landlord's written consent under the proviso to Section 14(1), clause (b); or (b) the sub-tenant gave the notice under Section 17; or (c) the sub-tenant claims independent rights under Section 25. Absent those, impleading was not required.
- The landlord relied on previous judicial authority (including the Deshpande, J. view reported in Tara Chand) to support the contention that a sub-tenant without a Section 17 notice was not a necessary/proper party and that an eviction order could be binding on such a sub-tenant.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Tara Chand v. Mst. Marrium Bi & Others (1970 Rent Control Reporter 438) | Held (per Deshpande, J.) that a sub-tenant who had not served a notice under Section 17 and had not acquired rights under Section 18 was neither a necessary nor a proper party; an eviction order passed without impleading such a sub-tenant was binding on him. | The Additional Controller relied on this authority to dismiss the petitioner’s application. The revising Judge recorded the holding but proceeded to examine and distinguish the reasoning in the context of Order 1 Rule 10 and the facts before him. |
| Rupchand Gupta v. Raghuvanshi (Private) Ltd. and another (A.I.R. 1964 Supreme Court 1889) | Observed that a decree in a suit for possession based on a valid notice to quit may bind the sub-lessee even if the sub-lessee is not impleaded; although harsh, the law allows it. | The Judge cited this Supreme Court observation to acknowledge that a decree may bind a sub-lessee not before the court; the case was noted as illustrating the legal position where sub-lessees were not impleaded. |
| South Asia Industries Pvt. Ltd. v. S. Sarup Singh & Others (A.I.R. 1966 Supreme Court 346) | Majority held that an assignee or sub-tenant should be a proper party to an application under clause (b) of the proviso to sub-section (1) of Section 14, because ejectment can be made only when assignment/subletting was without landlord's consent and such parties are interested in showing whether consent existed. | The court relied on this authority as strong support for the proposition that an assignee/sub-tenant is a proper party and should be heard in eviction proceedings where their rights are directly in issue. |
| Thakur Hari Ram v. Central Government (A.I.R. 1941 Lahore 120) | Explained the distinction between "necessary" and "proper" parties: necessary parties are those without whom no effective decision can be given; proper parties are those whose presence is desirable to enable complete adjudication of all questions involved. | The Judge relied on this authority to define and apply the legal distinction under Order 1 Rule 10 when determining whether a sub-tenant is a necessary or proper party. |
| Shri Ved Parkash v. Shri Rashid & Another (1971 All India Rent Control Journal 263) | P.N. Khanna, J. (obiter): a sub-tenant who had not given notice under Section 17 never became a direct tenant of the landlord and therefore was not necessary to be impleaded; the sub-tenant could, however, move the Controller to be impleaded. | The Court noted this obiter dictum and quoted it as a part of the authorities addressing the tension between mandatory impleading where notice has been given and permissive impleading where no notice exists. |
| Lakshmianiya v. Someswar Rao & Another (A.I.R. 1953 Hyderabad 170) | Observed that "proper party" means a party who may be interested in the result of the suit and who may have a right to seek the assistance of the court in coming to a decision on the point at issue. | The Judge cited this case for the conventional meaning of "proper party" when evaluating whether a sub-tenant should be impleaded. |
| Motilal v. Vasant & Another (A.I.R. 1956 Hyderabad 172) | Relates to the provisions of Order 34 Rule 1 (mortgage suit context); noted as not directly relevant to the present Rent Act context. | The court observed that this authority refers to a different procedural context (mortgage suits) and therefore is not relevant to deciding the present question under the Rent Act and Order 1 Rule 10. |
| Shitladin and Others v. Board of Revenue (A.I.R. 1963 Allahabad 549) | In the context of the U.P. Zamindari Abolition Act, observed that a zamindar whose rights were extinguished was neither necessary nor proper party in a tenancy suit; also observed that proper parties may be impleaded to avoid future litigation. | The Judge cited this case to show that the concept of "proper parties" may be used to avoid future or collateral litigation, which informed the view that impleading a sub-tenant can prevent subsequent execution or separate suits. |
Court's Reasoning and Analysis
The court framed the question narrowly: it was not called upon to decide the legality or validity of any substantive claim of the sub-tenant (for example, whether he had acquired rights), but only whether the sub-tenant is a "proper party" within Order 1 Rule 10 of the Code of Civil Procedure (as applied to Controller proceedings by Section 37 of the Rent Act and statutory Rule 23) and therefore ought to be impleaded on his application during the pending eviction proceedings.
The Judge undertook the following analytical steps, grounded in the authorities cited in the opinion:
- Recalled the legal distinction between "necessary" and "proper" parties under Order 1 Rule 10: necessary parties are those without whom no effective decision can be given; proper parties are those whose presence is desirable or necessary to enable the court to effectually and completely adjudicate all questions involved. Thakur Hari Ram and Pomeroy (as quoted) were relied upon for this conceptual distinction.
- Considered authorities which lean both ways: some decisions (for example, Tara Chand and the observation in Rupchand Gupta) recognize that a decree may bind a sub-tenant not before the court; other decisions (notably South Asia Industries) emphasize that an assignee/sub-tenant should be a proper party to applications under the proviso to Section 14(1) because they have an interest in proving the landlord's consent or otherwise.
- Examined the Rent Act's provisions: Sections 17 and 14(3) make impleading obligatory where a sub-tenant has given the prescribed notice, but there is no provision that it is illegal to implead a sub-tenant who has not given that notice. Thus, impleading is permissible and optional in cases where no Section 17 notice exists.
- Applied the principles to the material facts: a sub-tenant in actual possession of the whole or part of the premises is vitally interested in the result and is "a proper party" because (a) he is in possession and will be affected by a decree of eviction sought by the landlord, and (b) any rights he may claim under the Rent Act should be finally adjudicated in the proceedings rather than left to execution or separate proceedings under Section 25 or other provisions.
- Emphasized the right to be heard and the value of avoiding dispossessing a person without hearing. The court regarded it undesirable that a sub-tenant should be compelled to await execution of an order obtained against the tenant and be deprived of a fair opportunity to plead defences (for instance, prior notice, prior law, or landlord's actual knowledge).
- Concluded that, on these principles and on the authorities (especially South Asia Industries and the definitions of proper parties), a person in actual possession who is being sought to be dispossessed is a proper party who must, upon his application during the pendency of proceedings, be impleaded under Order 1 Rule 10.
The court thus set aside the conclusion reached by the Controller (which relied primarily on Tara Chand) and held that even where no Section 17 notice has been given, impleading the sub-tenant is permissible and, upon application, required if he is in actual possession and is sought to be dispossessed.
Holding and Implications
Core Ruling: The court allowed the revision, set aside the impugned order of the Additional Controller dated 23 July 1971, and directed that the petitioner (Kamal Kant) be impleaded as respondent No.2 in the eviction proceedings.
Implications and consequences:
- The immediate, direct effect: the petitioner's application to be impleaded is allowed; he is to be impleaded as respondent No.2 and the parties were directed to appear before the Controller the same day. There was no order as to costs.
- The court articulated a legal principle for the case at hand: a sub-tenant or other person in actual possession of the property who is being sought to be dispossessed by the landlord is a "proper party" within Order 1 Rule 10 and must, on his application during the pendency of proceedings, be impleaded so that his rights can be finally adjudicated. The court emphasized that impleading such a person avoids dispossession without a hearing and prevents subsequent execution or fresh litigation on those rights.
Note: This summary is confined strictly to the information and formulations contained in the provided opinion. No information has been added that is not present in the text of the opinion.
B.C Misra, J.:— This revision petition has been filed under section 115 of the Code of Civil Procedure by Kamal Kant, the alleged sub-tenant and is directed against the order of the Additional Controller, Delhi, dated 23rd July, 1971 by which he has rejected the application of the petitioner for being impleaded as a party in the eviction proceedings instituted by the landlord Vijay Kumar Gupta (respodent No. 1 herein) against Lajpat Rai Mehra, the principal tenant as respondent No. 2 in this revision.
The facts giving rise to this revision are that Vijay Kumar Gupta landlord-respondent No. 1 herein instituted a petition for eviction on 21st December, 1970 against Lajpat Rai, tenant on the allegations that the tenant had unauthorisedly sublet, assigned or otherwise parted with the possession of a part of the rented premises to Kamal Kant, petitioner herein, after 9th June, 1952 without obtaining the consent in writing of the landlord or his predecessor — in — interest. There are other grounds of eviction also mentioned in the petition with which we are at the moment not concerned in this revision. The tenant filed a written statement contesting the grounds of eviction and also urged that Kamal Kant was a necessary and proper party to the eviction proceedings.
During the pendency of the eviction proceedings Kamal Kant, the alleged sub-tenant, filed a petition dated 17th July, 1971, before the Addl. Controller under order 1 Rule 10 and section 151 of the Code of Civil Procedure in which he alleged that he was a necessary and proper party to the proceedings and be impleaded as such since one of the grounds of eviction was subletting a part of the premises to the petitioner. The landlord in reply opposed the application and urged that no notice of creation of sub-tenancy had been served on the landlord in accordance with the law and in the absence of such a notice, the petitioner was not a necessary or a proper party. This application has been disposed of by the Controller by the impugned order and he has relied upon an authority of this Court reported as Tara Chand v. Marrium Bi & others (1970 Rent Control Reporter, page 438) 1 to support the proposition that a sub-tenant who has not given a notice required by section 17 of the Rent Act was neither a necessary nor a proper party and that the petitioner has not alleged in his application that such a notice had been given to the landlord and as a result, he dismissed the petition.
The learned counsel for the petitioner has, in support of the revision, urged that the petitioner was at all events a proper party as he was admittedly in possession of a part of the premises from which the landlord was seeking to dispossess him along with the tenant. He has, further urged that the merits and validity of his claim would be pleaded by him in this written statement and substantiated by evidence in the trial, but his application for being impleaded as a party could not be thrown out and the Controller below has acted with material irregularity in exercise of his jurisdiction. In reply the learned counsel for the respondent-landlord has reiterated his contention raised before the Controller and he has strongly urged that a sub-tenant acquires rights under the provisions of the Delhi Rent Control Act only it subletting has been made to him with the consent in writing of the landlord as provided by clause (b) of the proviso to sub-section 1 of section 14 of the Delhi Rent Control Act or where he has given a notice under section 17 of the Act or he claims independent rights under section 25 of the Act and he has relied upon the authority of Deshpande, J. which has been mentioned in the impugned order.
I have carefully considered the respective submissions of the counsel for the parties. Ordinarily the estate of a sub-tenant is carved out of the estate of a tenant and the same falls with the tenant except under certain exceptional circumstances provided by law. Therefore, it cannot be said that a sub-tenant is a necessary party and the suit of proceedings for eviction instituted against the tenant would fail, unless he is impleaded. The Supreme Court in Rupchand Gupta v. Raghuvanshi (Private) Ltd. and another, (A.I.R 1964 Supreme Court 1889) (2) observed that where the landlord institutes a suit against the lessee for possession of the land on the basis of a valid notice to quit without impleading the said lessee as a party to the suit, the decree in such a suit which bind the sub-lessee and although this may act harshly on the sub-lessee, it is a position well understood and the law allows it. In that case the sub-tenant challenged the decree on the ground of collusion but he failed to establish the same and so lost the suit. Mr. Justice Deshpande, in Tara Chand v. Mst. Marrium Bi and anothers, (1970 Rent Control Reporter, 438) (1) has considered the effect of absence of service of a notice under section 17 of the Act and his lordship has held that an order for eviction which has been passed without impleading the sub-tenant (who had not served a notice under section 17 of the Act and who had consequently not acquired any rights under section 18 of the Act) was binding on the sub-tenant.
The position in this case is, however, different. I am not called upon to determine the legality or validity of the claim which the sub-tenant may put forward in the case either against an order for eviction which is sought against the tenant or to protect his own rights such as may be available under the law. The question arising for consideration is whether the tenant is a proper party within the meaning of Order 1 rule 10 of the Code of Civil Procedure which by virtue of section 37 of the Rent Act along with the statutory Rule 23 applies to proceedings before the Controller.
Order 1 rule 10 of the Code of Civil Procedure deals with two kind of cases, one relating to necessary parties and the other what is known as proper parties. Necessary parties are those in whose absence the legal proceedings would, in spite of the provisions of order 1 Rule, 9, fail. On the other hand, the proper parties are those whose presence is necessary to enable the court to effectually and completely adjudicate upon and settle all the questions involved in the case. There are many authorities construing the provision of law. I shall, however, rely on one which has been cited by counsel for the respondent. It is Thakur Hari Ram v. Central Government (A.I.R 1941, Lahore 120) (3). In this case the division bench of the High Court consisting of Tek Chand and Dalip Singh JJ. observed as follows:—
“The distinction between a “necessary” and a “proper” party to an action, appeal or other proceedings, is, of course, well recognized. A “Necessary” party is one, whose presence on the record is enjoined by law, or in whose absence no effective decision can at all be given. Without such party the action, appeal or proceeding is not properly constituted and is liable to be dismissed on this ground alone. A “proper” party, on the other hand, is one whose presence is not essential for the constitution of the suit, appeal or proceeding, but whom it may nevertheless be desirable, or even necessary, to have before the Court in order to properly, or completely and adequately, adjudicate on the matter involved.”
The Bench in support of this observation quoted Pomeroy on Remedies as follows:—
“Necessary parties defendants are those without whom no decree at all can be rendered: proper parties defendants are those whose presence renders the decree more effectual: and all the proper parties are those by whose presence the decree becomes a complete determination of all the questions which can arise, and of all the rights which are connected with the subject matter of the controversy.”
Applying the said principle it would follow that a sub-tenant is a proper party to the proceedings. The reason is that he is in possession of the whole or part of the premises and is vitally interested in the result of the suit or legal proceedings and the opposite party in reality and substance wants to dispossess him from the said promises in an action brought against the tenant. It is also necessary to hold him as a proper party for the reason that if he possesses any rights within the frame work of the Rent Control Act, the same should be finally adjudicated and decided either in his favour or against him, as the case may be, and they be not left to be determined in the execution department either under section 25 of the Rent Act or other provisions of the law. In my observations I derive great support from the authority of the Supreme Court, South Asia Industries Private Ltd. v. S. Sarup Singh and others (A.I.R 1966 Supreme Court 346) (4), where Sarkar J. delivering judgment of the majority of the Court observed in paragraph 9 of the report that to an application under clause (b) of the Proviso to sub-section 1 of section 14, an assignee or sub-tenant, as the case may be, should be a proper party; under this provision an ejectment order can be made only when the assignment or subletting was without the consent of the landlord and if it was with such consent the assignee or sub-tenant would be protected by the Act and, therefore, he was interested in showing that there was the requisite consent; they should, therefore, be held entitled to be made parties to the proceedings; otherwise if under section 25 eviction order obtained against the direct tenant is binding on the sub-tenants, they would be liable to be condemned without a hearing. The Court further observed that if the assignee or sub-tenant is entitled to be heard to oppose the order for eviction, that would be another reason for saying that on order for eviction should be made against them also and if they should oppose the making of the order it would be unnatural to say that the order should not be made against them.
P.N Khanna, J. in Shri Ved Parkash v. Shri Rashid and another (1971 All India Rent Control Journal, page 263) has made some obiter dicta which are useful for resolving the controversy before me. In para 7 of the report his Lordship observed that the sub-tenant had not given a notice under section 17 of the Act and so he never became a direct tenant of the landlord and it was, therefore, not necessary for him to be impleaded as a party in the eviction proceeding. The learned Judge further observed “the sub-tenant could have moved the Controller for being impleaded, if he had anything to urge before him, but that does not mean that the landlord was obliged to implead the sub-tenant.” The learned counsel for the respondent has cited 3 other authorities, Lakshmianiya v. Someswar Rao & another (A.I.R 1953 Hyderabad, 170) (6), Motilal v. Vasant and another (A.I.R 1956 Hyderabad 172) (7), and Shitladin and others v. Board of Revenue (A.I.R 1963 Allahabad 549) (8). In the first of the aforesaid authorities it was observed in paragraph 22 of the report that the expression proper party means a party who may be interested in the result of the suit and who may have a right to seek the assistance of the court in coming to a decision on the point at issue. The second case Motilal v. Vasant and another (7) refers to the provisions of Order 34 Rule 1 and deals with the case of a mortgage suit where there are specific provisions and the same is not relevant for purposes of this case. In the third authority the High Court of Allahabad was considering a case of U.P Zamindari Abolition Act and their Lordships observed that after the enforcement of the Zamindari Abolition Act, the Zamindar whose rights by operation of law had been extinguished was neither a necessary nor a proper party in a suit under the tenancy Act. The court also observed that proper parties may be impleaded to avoid future litigation.
An examination of the provisions of the rent act shows that impleading of a sub-tenant in the eviction proceedings is not prohibited. sections 17 and 14 (3) make it obligatory on the landlord to implead a sub-tenant who has given the prescribed notice, but it is not laid down that it would be illegal to implead a sub-tenant who has not given such notice. Impleading is therefore permissible and optional in such cases. The result is that if a person in actual possession of the property is sought to be evicted on the ground of alleged sub-tenancy or otherwise, and he desires to intervene in the eviction proceedings and show cause against eviction, he is a very proper (though not necessary) party and he must, on his application, be impleaded. It is no consolation to the alleged sub-tenant to be told that his obligation consists only in quietly vacating the premises in execution of order passed against another person (the tenant) and that he must be condemned to dispossession without hearing. The right to be heard is distinct from the validity of the cause shown upon hearing and it is too valuable a right to be brushed aside lightly on a technical grounds. Normally a decree or order of the court binds only the parties to the proceedings and the persons not before it, are not concerned or affected and in those cases, the plaintiff's contention that he does not want to fight another person or to disturb his rights or possession may be respected. But where the landlord in fact wants to dispossess a sub-tenant and urges that he does not have any legal right to remain in possession, the contrary wishes of the landlord are not material and the sub-tenant who applies must be impleaded and heard against the contentions of the landlord. The illegality of the possession of the sub-tenant contended by the landlord cannot be presumed to be correct and the same requires to be established on record. Therefore, the sub-tenant may, upon being impleaded, show any defence open to him. For example, he may prefer to show that he is an old lawful sub-tenant, and prescribed notice was given or was not necessary to be served, as it had already been given under a previous law like section 4 (1) (c), Rent Act of 1947 or section 6 (3) (c) of Act of 1952 or since the landlord otherwise possessed actual notice of sub-tenancy or that any valid law requiring him to give notice was directory and not mandatory, or it did not apply to his case. The correctness of this defence is at the moment not relevant but he must at all events be heard if he applies to be impleaded. This course would be in consonance with the interests of justice, as it would avoid cases of fraud or collusion on the part of the landlord and real (or sometimes fictitious) tenant to oust the sub-tenant and it would also shorten litigation and obviate subsequent enquiry at the instance of the sub-tenant in execution department or in another suit as the case may be.
I am, therefore, of the view that a sub-tenant or other person who is in actual possession of the property and is really sought to be dispossessed by the landlord by the action is a proper party, who is vitally interested in the result of the eviction proceedings and his presence is necessary for complete and effectual adjudication of real dispute between the parties. Hence he must, if he applies for the purpose during the pendancy of proceedings, be impleaded as a party, in accordance with Order 1, Rule 10 of the Code of Civil procedure. The revision, as a result succeeds and the impugned order is set aside. The application of the petitioner herein is allowed and he is directed to be impleaded as a respondent No. 2 in the eviction proceedings. The parties are directed to appear before the Controller today. There will be no order as to costs.
Application allowed.
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