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Prakash Wati Bali v. Manish Dewan.
Legal Opinion Summary — Second Appeal (C.M. Nayar, J.)
Factual and Procedural Background
The respondent filed a petition for eviction of appellant No.2, Subhash Grander Bali, from premises B-72 (A-Type) Double Storey Quarters, Ramesh Nagar, New Delhi. The eviction petition alleged that the premises were let for residential purposes and that appellant No.2 had acquired (on or about July 1981) a DDA flat bearing No. 201, Pocket-4-A/C Janakpuri, New Delhi, and alternatively flat No.85-A, Pocket A-6, Janta Flats, Paschim Vihar, New Delhi, thereby rendering him liable to eviction under Section 14(1)(h) of the Delhi Rent Control Act ("the Act").
The appellants contested the petition on the ground that no landlord-tenant relationship existed between the respondent and appellant No.2 because the premises had been taken on rent by Shri K.R. Bali (deceased), father of appellant No.2 and husband of appellant No.1 (Smt. Prakash Wati Bali). The appellants asserted that the premises remained in the use and enjoyment of the deceased's legal heirs. Appellant No.2 disputed acquisition of one DDA flat but admitted acquiring another.
Before the Rent Control Tribunal, appellant No.1 moved to be impleaded under Order 1 Rule 10 read with Section 151 CPC. The Tribunal concluded — relying on admissions and the conduct of the parties, including the fact that after the death of K.R. Bali rent receipts were issued only in appellant No.2's name and other heirs never asserted tenancy rights — that there had been an implied surrender of tenancy by the other heirs in favour of appellant No.2, who alone became the tenant. The Tribunal dismissed appellant No.1's application for impleader and affirmed the Additional Rent Controller's order. The appellants filed this Second Appeal to the High Court challenging those conclusions and the dismissal of the impleader application.
Legal Issues Presented
- Whether the other legal heirs of the deceased tenant (K.R. Bali) had, by their conduct and the facts of the case, impliedly surrendered their tenancy rights in favour of appellant No.2 so that appellant No.2 alone became the tenant.
- Whether appellant No.1 (Smt. Prakash Wati Bali), being a legal heir of the deceased tenant, ought to have been impleaded as a party under Order 1 Rule 10 CPC and whether an eviction order could validly be passed without giving her a reasonable opportunity to show cause (in light of Section 37 of the Act).
- Whether the Second Appeal raises any substantial question of law under Section 39 of the Act that would warrant interference by the High Court.
Arguments of the Parties
Appellants' Arguments
- The Tribunal erred in dismissing the application of appellant No.1 for impleader, because she was one of the legal heirs of the deceased tenant and could not be prejudicially affected without being heard (invoking Section 37 of the Act).
- Reliance was placed on authorities (Indra Sharma v. Gopal Dass; Mohd. Azeem v. District Judge; Textile Association (India) Bombay Unit v. Balmohan Gopal Kurup) to support the proposition that tenancy rights are inherited by heirs (as co-tenants) and an eviction order against one heir is not binding on other heirs who were not party to the proceedings.
Respondent's Arguments
- The respondent relied on authorities supporting the doctrine of implied surrender and the proposition that an eviction decree against one heir may be binding on other heirs where facts show attornment or conduct inconsistent with continuance of tenancy by other heirs (cases cited include Shri Dalam Chand v. Dr. M.C. Sharma; Sushil Kumar v. Bhagwanti Devi; Mohd. Usman v. Mst. Surayya Begum; Mst. Surayya Begum v. Mohd. Usman; Pushpa Rani and others v. Bhagwanti Devi).
- Specifically relying on the Sushil Kumar line of authority, it was contended that where only one heir was attorned and received rent receipts, and other heirs never asserted tenancy rights, the only inevitable conclusion is implied surrender of the tenancy by the other heirs and creation of a new relationship of landlord and tenant with the attorned heir.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Indra Sharma v. Gopal Dass & Ors., 1984 DRJ (7) 286 | Held that legal heirs inherit tenancy rights as co-tenants (unity of possession but not unity of title); eviction against one tenant not binding on other co-tenants. | The appellants relied on this authority; the Court reviewed it but found it inapplicable on the facts because the other heirs had not asserted tenancy and there was evidence of attornment to appellant No.2. |
| Mohd. Azeem v. District Judge, Aligarh and others, AIR 1985 SC 1118 | Held that where original tenant died and one son moved elsewhere, tenancy of other heirs (sons, widow, daughter) did not terminate and they continued as tenants. | Cited by appellants; the Court concluded this authority did not apply to the present facts where the conduct of heirs indicated implied surrender. |
| Textile Association (India) Bombay Unit v. Balmohan Gopal Kurup, AIR 1990 SC 2053 | Held that an ex parte decree obtained against mother and son was not binding on one of the sons who was not impleaded. | Cited by appellants; Court noted the authority but found it not applicable on the present facts of attornment and conduct pointing to implied surrender. |
| Shri Dalam Chand v. Dr. M.C. Sharma and others, 1988 (1) R.C.J. 97 | The provided opinion cites the case but does not specify the rule or principle from it in the text. | The opinion lists this authority among those relied on by respondents; the provided text does not state how this specific case was applied. |
| Sushil Kumar v. Bhagwanti Devi & Anr., 1989 (2) R.C.J. p.8 | Set out facts supporting implied surrender: where after tenant's death only one heir was issued rent receipts, other heirs never asserted rights, and only that heir continued in occupation/business, the conduct warranted inference of attornment and implied surrender by other heirs. Also discussed whether such finding is a question of fact rather than a substantial question of law. | The Court relied heavily on the principles in this case (paragraphs 15–16 quoted) to support the conclusion that implied surrender can be inferred from the conduct of the heirs and that such a finding is essentially one of fact not normally raising a substantial question of law. |
| Mohd. Usman v. Mst. Surayya Begum, 1990 (2) RCR 408 | The provided opinion cites the case as authority for the proposition that a decree for eviction is binding on all heirs even when one heir was not impleaded. | The Court cited this authority to support the proposition that an eviction decree can be binding on all legal heirs; it used it to justify not allowing a belated impleader application absent collusion or conflict. |
| Mst. Surayya Begum v. Mohd. Usman & others, 44 (1991) D.L.T. 293 | Addressed whether an eviction decree against one legal heir (not made a party) was valid; held eviction decree obtained by the landlord is binding on all legal heirs, though heirs can seek to object on grounds of fraud, collusion or conflict of interest. | The Court relied on this authority to note that while a decree can be binding on all heirs, those heirs retain remedies to challenge the decree in cases of fraud, collusion or conflict — a principle applied in assessing appellant No.1's belated attempt to be impleaded and whether any collusion/mala fide was shown. |
| Pushpa Rani and others v. Bhagwanti Devi and another, AIR 1994 SC 774 | Affirmed the doctrine of implied surrender as applied in Sushil Kumar; held that principle of heritability of non-residential tenancy (Gian Devi's case) is not inconsistent with implied surrender where evidence supports such a finding. | The Court treated this Supreme Court decision as affirming the doctrine of implied surrender and relied on it to uphold the Tribunal's inference of implied surrender on the facts of the instant case. |
| Gian Devi's case, 1985 (1) Suppl. SCR 1; AIR 1985 SC 796 | Established principle of heritability of a non-residential tenancy (i.e., tenancy rights can be inherited by heirs). | Noted in the Pushpa Rani discussion; the Court recorded that Gian Devi's principle of heritability was not inconsistent with implied surrender and therefore did not negate the doctrine applied on the facts showing attornment. |
Court's Reasoning and Analysis
The Court undertook a fact-driven analysis framed by the settled law on inheritance of tenancy rights and the doctrine of implied surrender. The reasoning, as expressed in the opinion, proceeded in the following steps:
- Review of authorities: The Court reviewed authorities cited by both parties, distinguishing those that emphasize the heritability of tenancy rights (appellants' citations) from those explaining when an implied surrender can be inferred (respondent's citations, including Sushil Kumar and Pushpa Rani).
- Examination of the material facts: The Court found it established on the record that after the death of K.R. Bali, appellant No.2 received and accepted rent receipts and paid rent; the mother (appellant No.1) and other siblings never asserted tenancy rights or produced rent receipts in their favour. Appellant No.2 had earlier been treated as the tenant in an eviction petition filed by a prior landlady, and he had replied to averments accepting tenancy and occupation with his family.
- Application of the implied surrender doctrine: Relying on the line of decisions (notably Sushil Kumar and Pushpa Rani), the Court concluded that the conduct and admissions led to the "inevitable conclusion" that the other heirs had impliedly surrendered tenancy rights in favour of appellant No.2, and that appellant No.2 alone was attorned as tenant after the death of K.R. Bali.
- Assessment of impleader application: The Court addressed appellant No.1's late application to be impleaded. In light of the factual finding of implied surrender, the absence of any established collusion, mala fide or conflict of interest between appellant No.2 and the landlord, and the belated timing of the application, the Court held that the Tribunal correctly dismissed the impleader application.
- Substantial question of law: The Court considered whether the matter raised any substantial question of law under Section 39 of the Act. Citing the same line of authorities it held that the issue was essentially one of fact — whether implied surrender occurred — and did not present a substantial question of law warranting interference in a second appeal.
The Court therefore affirmed the concurrent factual findings of the Rent Controller and the Rent Control Tribunal and declined to interfere.
Holding and Implications
Holding: The Second Appeal is DISMISSED. The concurrent findings of fact by the Rent Controller and the Rent Control Tribunal that there was an implied surrender of tenancy by the other heirs in favour of appellant No.2 were affirmed. There will be no order as to costs.
Implications
- Direct effect on the parties: The eviction-related findings and orders against appellant No.2 (as the attorned tenant) stand; appellant No.1's belated application to be impleaded was correctly dismissed and she was not permitted to be made a party in these proceedings.
- On precedent and law: The Court treated the present decision as an application of settled principles (including the doctrine of implied surrender as articulated in Sushil Kumar and affirmed in Pushpa Rani). The opinion records that no new substantial question of law was raised and therefore no new legal precedent was established by this decision beyond the application of the existing line of authorities.
Note: This summary strictly follows the information contained in the provided opinion. No facts, arguments, or conclusions have been added beyond those explicitly stated in the opinion.
C.M Nayar, J.— The present Second Appeal is directed against the judgments dated September 3, 1991 and October 19, 1992 respectively passed by the Additional Rent Controller and Rent Control Tribunal, Delhi.
2. The respondent filed a petition for eviction of appellant No. 2, Subhash Grander Bali from premises, B-72 (A-Type) Double Storey Quarters, Ramesh Nagar, New Delhi on the allegations that the premises were let out for residential purposes; the appellant No. 2 has, on or about July, 1981, acquired a DDA flat bearing No. 201, Pocket-4- A/C Janakpuri, New Delhi. An alternative plea was also taken that the said appellant also acquired flat No. 85-A, Pocket A-6, Janta Flats, Paschim Vihar, New Delhi from DDA. Therefore, he was liable to eviction under the provisions of Section 14(1)(h) of the Delhi Rent Control Act (hereinafter referred to as ‘the Act’).
3. The petition was contested on the ground that no relationship of landlord and tenant existed between the parties as the respondent was not the landlord: The premises were taken on rent by Shri K.R Bali, deceased father of appellant No. 2 and husband of appellant No. 1. The premises are in the use and enjoyment of Smt. Prakash Wati Bali and other legal heirs of the above said Shri K.R Bali. Appellant No. 2 also denied that he had acquired DDA flat bearing No. 201-A, Pocket 4-A/C Janakpuri, New Delhi but did not deny that he acquired flat No. 85-A, Pocket A-6, Janta Flats, Paschim Vihar, New Delhi. Before the Rent Control Tribunal, an application was moved by appellant No. 1, Smt. Prakash Wati Bali under the provisions of Order 1 Rule 10 read with Section 151 C.P.C to be impleaded as a party to the proceedings. This application was allegedly made on 16th April, 1992. Taking note of the fact that in view of the demise of the father of appellant No. 2, Shri K.R Bali he alone was issued rent receipts in respect of the premises by the landlady and his mother, two brothers and sisters never asserted their tenancy rights, the Tribunal came to the inevitable conclusion on the basis of the admission and conduct of the parties that there was implied surrender of tenancy by the other heirs of Shri K.R Bali deceased in favour of appellant No. 2 who alone became the tenant in the disputed premises. The appeal, as a consequence, was dismissed and the order of the Additional Rent Controller was affirmed. Similarly, the application moved by appellant No. 1 under Order 1 Rule 10 C.P.C was also dismissed and she was not permitted to be impleaded as a party. The appellants felt aggrieved by the order passed by the Rent Control Tribunal and has filed the Second Appeal before this Court.
4. The learned counsel for the appellants has contended that the Tribunal gravely erred in dismissing the application of appellant No. 1 to be impleaded as a party as she was one of the legal heirs of the deceased tenant K.R Bali and, accordingly, no order of eviction could be passed without hearing her. The provisions of Section 37 of the Act were cited in this regard and it was reiterated that no order which prejudicially affected the right of appellant No. 1 could be made by the Controller without giving her a reasonable opportunity of showing cause and until her objections, if any, were considered. Reference is made to the judgments as reported in Indra Sharma… v. Gopal Dass & Ors.… 1984 DRJ (7) page 286; Mohd. Azeem v. District Judge, Aligarh and others AIR 1985 Supreme Court 1118 and Textile Association (India) Bombay Unit v. Balmohan Gopal Kurup and another AIR 1990 Supreme Court 2053.
5. In the case of Indra Sharma (supra) it was held that the legal heirs inherited the tenancy rights as co-tenants and not as joint tenants. They have unity of possession but no unity of title. The order of eviction against one tenant is not binding against other co-tenants. In Mohd. Azeem (supra) the Hon'ble Supreme Court has held that “where the original tenant died and one of his sons built a house in the same city and moved to it, the tenancy of other sons, widow and daughter of the deceased tenant did not terminate and they continued to be the tenants in their own rights being covered by the definition of tenant.” Similarly, it was held in the case of Textile Association (India) Bombay Unit (supra) that “an ex parte decree obtained against mother and son was not binding on one of the sons who was not impleaded.”
6. The learned counsel for the respondents, on the other hand, has strongly relied on the judgments as reported in Shri Dalam Chand v. Dr. M.C Sharma and others 1988 (1) R.C.J 97; Sushil Kumar… v. Bhagwanti Devi & Anr… 1989 (2) R.C.J page 8; Mohd. Usman v. Mst. Surayya Begum 1990 (2) Rent Control Reporter 408; Mst. Surayya Begum v. Mohd. Usman & others 44 (1991) D.L.T 293 and Pushpa Rani and others v. Bhagwanti Devi and another etc. AIR 1994 Supreme Court 774. The last judgment affirmed the judgment of this Court in the case of Sushil Kumar (supra). I may now refer to this judgment which has been strongly relied upon by the counsel for the respondent and in fact dealt with the principles of implied surrender. Paragraphs 15 and 16 which will indicate the facts and law as laid down read as follows:
“15. In view of the admitted facts that after the death of Chaman Lal, Sushil Kumar alone was issued rent receipts in respect of the premises by the respondents-landlords; other heirs never asserted their tenancy rights and could not produce any rent receipts issued by the respondents-landlords in their favour; Sushil Kumar as alone carrying on business in the shop; and other facts, the only inevitable conclusion which can be drawn is that the conduct of the parties is inconsistent with the continuance of lease of the other heirs of Chaman Lal after his death and is in conformity with creation of new relationship of tenant and landlord between Sushil Kumar and the respondents. Therefore, I uphold the contention of the learned counsel for the respondents-landlords and endorse the finding of the learned Tribunal that Sushil Kumar was alone attorned as tenant after the death of Chaman Lal, and by conduct other heirs would be deemed to have surrendered their tenancy rights, if any, impliedly.
16. Further question that would arise for consideration is whether the finding of the Tribunal to the fact that Sushil Kumar who was alone attorned as tenant after the death of Chaman Lal, and by conduct other heirs would be deemed to have surrendered their tenancy rights, if any, impliedly is a finding of fact or a substantial question of law. It is no doubt true that under Section 39 of the Act the scope of challenge is restricted by sub-section (2) thereof which suits out a second appeal unless some substantial question of law is involved therein. A substantial question of law, it is against beyond dispute, does not mean a mere question of law. In order to be “substantial”, a question of law must at least be such that there is some doubt or difference of opinion or there is room for difference of opinion on the legal aspect, though generally a question of law of general public importance or even one which may alter materially the rights of the parties has been considered to be substantial in some decisions. However, the law is well settled that the mere application of the settled principles to a particular set of facts would scarcely constitute a substantial question of law. In view of this it cannot be said that any question of law/substantial question of law is involved in these appeals.”
7. This view was affirmed by the Supreme Court in the judgment as reported in the case Pushpa Rani and others (supra). The doctrine of implied surrender was accepted and the plea of the tenant was rejected. Paragraph 7 of the judgment may be reproduced as under:
“The contention strenuously urged by Sri Aruneshwar Gupta in support of these appeals is that it is a settled law that even a non-residential tenancy is heritable, that the heirs of a deceased tenant inherit the tenancy and that the decree against Sushil Kumar alone was insufficient to denude the rights of the appellants who are the other heirs.
On a consideration of the evidence, the High Court concurring with the findings of fact on the point recorded by the Rent Controller and the Tribunal, held that after the death of Chaman Lal it was Sushil Kumar alone who continued in occupation of and was carrying on the business in the premises and that in the circumstances of the case the other heirs must be held to have surrendered their rights of tenancy. This implied surrender was inferred from the evidence as to the conduct of the other heirs. The principle in Gian Devi's case (1985 (1) Suppl. SCR 1; (AIR 1985 SC 796) as to the heritability of a non-residential tenancy relied upon by Sri Gupta does not detract from, and is not inconsistent with, the principle of implied surrender. The finding on implied-surrender, in our opinion, is supported by the evidence on record. Both the Rent Control Tribunal and the High Court, in our opinion, were right in not countenancing the claim of the heirs which incidentally came through the challenge on the executing side. So far as the appeal of Sushil Kumar is concerned, there is hardly anything that can be said in support of it.”
8. The Supreme Court in the case of Mst. Surayya Begum (supra) dealt with the question, as to whether, the eviction decree against one of the legal heirs who was not made a party to the proceedings was valid, the Court came to the conclusion that the eviction decree obtained by the landlord is binding on all the legal heirs of the deceased-tenant irrespective of whether or not they were impleaded as parties to the eviction proceedings. However, such heirs are entitled to object to the decree on the ground of fraud or collusion between the landlord and the other heirs of the deceased-tenant and if it can be shown any conflict of interests.
9. In the background of the settled law the facts of the present case may be looked into. It is established that appellant No. 2 after the death of his father was accepting the rent receipts and was paying rent and rent receipts were issued in his name in respect of the premises. He has also admitted that neither his mother nor sister nor any of the brothers ever objected to it. The mother, appellant No. 1, remaining two brothers and sisters never asserted their tenancy rights. The Rent Controller as well as the Rent Control Tribunal, therefore, came to the obvious conclusion that there was implied surrender of tenancy by the other heirs of the deceased-tenant in favour of appellant No. 2 who alone became the tenant in the disputed premises. It may also be noticed that in the eviction petition filed by the earlier landlady Smt. Kishan Devi, appellant No. 2 was only made party as a tenant. In paragraphs 3 and 9 of the eviction petition the specific plea was taken that Shri S.C Bali was the tenant and the premises were occupied by him. The said appellant clearly replied to the averments made in the eviction petition and accepted that he was the tenant and was living in the premises along with his family. Similarly, the position is not denied in his own statement recorded as R.W.I In the above background the conduct of appellant No. 2 cannot be held to be bona fide and even in the present proceedings he has been contesting the same as it is conceded by the learned counsel for the appellant that he will be the ultimate beneficiary if this appeal is accepted. There is no challenge to the findings by appellant No. 2 and the learned counsel has only confined his relief qua appellant No. 1. The facts, accordingly, establish that appellant No. 2 was admittedly accepted as a tenant after the death of his father and in the absence of any collusion or mala fide on his part to defend the case and conflict of interest between himself and the respondent-landlord, the plea of appellant No. 1 to be impleaded as a party at a belated stage before the Tribunal could not have been entertained and her application, as a consequence, was correctly dismissed. It is held by this Court in the judgment as reported in Mohd. Usman (supra) that a decree for eviction is binding against all the heirs even when one of the heirs is not impleaded as a party. The judgments cited by the learned counsel for the appellants will be, therefore, of no application to the present case.
10. The Second Appeal does not raise any substantial question of law which will call for interference by this Court. The only question involved is, as to whether, the legal heirs of the deceased-tenant surrendered their tenancy rights and the landlord had created fresh tenancy in the premises in favour of appellant No. 2. The Rent Controller as well as the Tribunal have concurrently held that there was implied surrender of tenancy by the other heirs of the deceased-tenant in favour of appellant No. 2 who alone became the tenant in the disputed premises. This, in deed, is not a substantial question of law which will call for interference. The appeal, as a consequence, is dismissed. There will be no order as to costs.
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