Login
  • Bookmark
  • PDF
  • Share
  • CaseIQ

N.P Surendran v. P.K Safiya Beedi Umma

Kerala High Court
Aug 27, 2002
Smart Summary (Beta)

Judgment Summary — J.B. Koshy, J.

Factual and Procedural Background

The present proceedings arise from RCP No. 12/95 on the file of the Rent Control Court, Tellichery. Multiple Civil Revision Petitions (CRP. Nos. 1786, 1888 and 1930/2002) were filed by respondents to that Rent Control Petition; CRP. No. 2866/2001 was filed by the landlord (petitioner in the Rent Control Petition). The landlord originally filed a petition for eviction under sections 11(3), 11(4)(i) and 11(4)(iii) of the Kerala Buildings (Lease and Rent Control) Act, 1965, alleging (in summary): the petition schedule building belonged to her; it had been let by registered deed (Ext. A1) to the first respondent as tenant; respondents 2 and 3 were sub-tenants (with the then-landlord's consent); the first respondent had further sub-let a portion to a 4th respondent without landlord's consent; the tenant and some sub-tenants were not using the premises for business; and the landlord's son wished to occupy the premises for a bona fide hotel business. Rent disputes and conflicting accounts of occupancy and sub-letting followed. The Rent Control Court allowed the eviction application under the cited provisions. On appeal, the appellate court confirmed findings under section 11(3) and section 11(4)(i) but set aside the finding under section 11(4)(iii). The matter proceeded by way of revision petitions to this Court.

Legal Issues Presented

  1. Whether the landlord had proved a bona fide requirement under Section 11(3) of the Kerala Buildings (Lease and Rent Control) Act, 1965, for occupation of the petition schedule building by the landlord's son to conduct a hotel business.
  2. Whether an objectionable/unauthorised sub-lease to the 4th respondent existed and if so whether that justified eviction under Section 11(4)(i) of the Act (and related sub-clauses).
  3. Whether the protection contained in the second proviso to Section 11(3) (as pleaded) was available to the sub-tenants (respondents 2 and 3) or only to the tenant.
  4. Whether partial eviction (vacation of part of a building) could be ordered in the present facts under Section 11(3) of the Kerala Act, having regard to precedents and the statutory scheme.
  5. Whether the appellate court was correct in setting aside the finding under Section 11(4)(iii) and whether that matter should be re-examined by this Court.

Arguments of the Parties

Landlord's Arguments

  • The landlord alleged title/ownership of the schedule building and production of the registered letting deed (Ext. A1) showing the first respondent as tenant at a monthly rent (initially Rs. 175, later enhanced to Rs. 275 as claimed by landlord; tenant claimed Rs. 220).
  • The landlord asserted respondents 2 and 3 were sub-tenants with consent, and that the first respondent had sub-leased a portion to a 4th respondent without consent (an objectionable sub-lease).
  • The landlord contended that her son (Muhammed Ali) had no avocation and had a bona fide need to start a hotel business in the premises and could mobilise funds to do so.
  • With respect to Section 11(4)(iii), the landlord maintained that the appellate court should not have reversed the trial court's finding (which found the first respondent had another pucca building nearby and conducted business there).

First Respondent (Tenant)'s Arguments

  • The first respondent disputed aspects of the landlord's case: claimed rent was Rs. 220/month, denied that the landlord's son had a bona fide need, and claimed to be mainly dependent on income from conducting business in the petition schedule premises.
  • The first respondent denied sub-leasing to the 4th respondent and alleged that documents produced to show such sub-letting were fabricated or produced by influencing municipal officials.
  • He asserted that no other suitable building was available and that eviction would cause hardship, including that he stores materials for his provision business in the building.
  • He raised that the 4th respondent might be fictitious and challenged the evidence of the landlord regarding the 4th respondent's occupation.

Respondents 2 and 3 (Sub-tenants)'s Arguments

  • Respondents 2 and 3 contended they were authorised sub-lessees (consent given by the then landlord) and that they mainly depended on income from the business conducted in the premises.
  • They argued the landlord's claimed need was not bona fide and that the building was unsuitable for the hotel business.
  • When faced with the allegation of an unauthorised sub-lease to the 4th respondent, they denied knowledge of such a sub-lease.
  • They argued that if sub-letting by the tenant was unauthorised, they (as sub-tenants) should not be penalised for the tenant's act and cited precedent to that effect.

4th Respondent

  • The 4th respondent did not appear in the Rent Control proceedings below. In this Court the notice was accepted by the 4th respondent and a vakalatnama was filed (the advocate was absent on the day of hearing).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rahman v. Ram Chand ((1978) 3 SCC 539 : AIR 1978 SC 413) Interpreting a proviso to section 11(1)(h) — court must consider whether partial eviction (eviction of part) should be ordered or entire holding evicted; requires judicial exploration with opportunity to lead evidence on the point. Distinguished: the Court observed that the Rahman decision dealt with a proviso to section 11(1)(h), but there is no such proviso under Section 11(3) of the Kerala Act; therefore the reasoning about mandatory consideration of partial eviction did not apply to the present case under Section 11(3).
Salwant Kaur v. Dhund Singh ((1983) 3 SCC 638 : AIR 1983 SC 623) Authority for the proposition that part of the petition schedule building may be ordered to be vacated (court in that case considered which portion should be vacated having regard to facts, convenience and nature of business). Distinguished on facts and applied narrowly: the Court noted that Salwant Kaur concerned allocation of front/back portions based on convenience and nature of business; in the present case the lease covered the entire building under a single deed and multiple sub-tenants occupied different parts — the Kerala Act and facts did not permit ordering part eviction from a single lease holding.
Fathima v. Saidali Bafakhy (2001 (2) K.L.T 857) Decision of a Division Bench addressing a similar factual situation (a large pandikasala building; sub-tenancies; landlord's bona fide need) and the non-availability of splitting up tenancy under S.11(3). Followed: the Court relied on the Division Bench's reasoning that where the subject-matter of lease is the entire building, the landlord cannot seek eviction of only portions under S.11(3); either the whole building is evicted or not, and no scope exists under the Act for requiring the landlord to establish need for each part separately.
A.V. Kammath v. Chandran (1989 (1) KLT 473) Principle that protection of the second proviso to section 11(3) can be claimed only by tenants and not by sub-tenants; definition of "tenant" does not distinguish sub-tenants so as to accord them all protections available to tenants. Applied: the Court held that sub-tenants (respondents 2 and 3) could not claim the benefit of the second proviso to section 11(3); protection is for the tenant and not for sub-tenants even if sub-tenancies were with landlord's consent.
Palakkad District Co-op. Bank v. Mohammed Kaleem (1996 (1) KLT 247) Authority that a registered co-operative society (as a type of occupier) cannot claim protection under the second proviso to section 11(3). Applied: the Court relied on this authority to conclude that the third respondent (a co-operative society) could not claim protection of the second proviso to section 11(3).
A.S. Sulochana v. C. Dharmalingam ((1987) 1 SCC 180 : AIR 1987 SC 242) Where a sub-tenant occupied openly for long period and it was unclear whether original landlord had previously consented to sub-tenancy, sub-tenants who were not parties to creation of sub-tenancy may not be treated as violators; penal eviction on ground of sub-lease should not be ordered against them. Distinguished: the Court noted that in the present case the sub-tenants were parties to the proceedings (section 21) and the sub-letting was by the first respondent (the tenant). Consequently the protective principle in Sulochana did not prevent eviction here.
Ramakrishnan v. Sankaranarayanan (1998 (2) KLT SN 49) Held that if part of rented premises is sub-let without consent, the landlord has the right to evict the tenant from the whole building let to him — even where only a portion was sub-let. Applied: the Court referred to and followed this Division Bench decision to support the proposition that unauthorised sub-letting of part of the building can entitle the landlord to eviction of the entire building.
Kadersha v. Venkitasami (1987 KLT 260) Similar authority supporting the landlord's right to evict for unauthorised sub-letting of part. Referred to in support of the view that sub-letting of a portion can give the landlord right to evict the tenant from the whole building.

Court's Reasoning and Analysis

The Court proceeded by examining the evidence, the pleadings and the concurrent findings of the courts below, applying statutory definitions and settled principles:

  1. Tenancy and Sub-tenancies: The Court accepted as fact (supported by Ext. A1 and evidence) that the first respondent is the tenant under the registered deed and that respondents 2 and 3 are sub-tenants (their sub-leases are mentioned in Ext. A1). The practical arrangement — first respondent pays rent to landlord, respondents 2 and 3 pay rent to first respondent — was accepted on the evidence.
  2. Bona Fide Requirement under Section 11(3): Both courts below concurrently found the landlord's son's need to start a hotel business was bona fide. The son had been unemployed for about six years, had no other avocation, had stopped a previous business in Mysore, and could mobilise funds (from brothers in the USA) to start the hotel. The Court observed that this concurrent factual finding was based on evidence and could not be disturbed in revision under section 20 of the Act.
  3. Partial Eviction — statutory scheme and precedents: The Court engaged with authorities (Rahman; Salwant Kaur; Fathima) and statutory provisions. It noted Rahman dealt with a proviso to section 11(1)(h) and thereby required consideration of partial eviction in that context, but found that there is no analogous proviso under Section 11(3) of the Kerala Act. The Court held that the Kerala Act does not contemplate splitting a tenancy covered by a single lease deed and therefore does not provide for partial eviction under Section 11(3). The Division Bench decision in Fathima was followed to support the position that where the lease covers the entire building, the landlord need not and is not required to prove the need for each part separately; either the whole building is ordered vacated if bona fide need is proved or the claim fails.
  4. Sub-letting to 4th Respondent — evidence and findings: The Court reviewed documentary evidence (Exts. A7–A11: annual licence lists; Ext. A13: property tax assessment; Exts. A25–A28) which supported the landlord's case that the 4th respondent, V.P. Moosa, was in possession of a portion of the building as licensee/tenant. The first respondent's allegations of manipulation of documents and of the 4th respondent being fictitious were not supported by evidence; RW.1's testimony indirectly admitted the presence of such a business in the building and the 4th respondent accepted notice and filed a vakalatnama. Both courts below had found an objectionable sub-lease to the 4th respondent and the Court held there were no grounds to upset the concurrent factual findings in revision under section 20.
  5. Effect of Unauthorised Sub-letting under Section 11(4): The Court interpreted section 11(4)(i) (and noted a related proposition in section 11(4)(ii) as to the landlord's right when part is sub-let without consent) and relied on authorities (Ramakrishnan and Kadersha) to the effect that sub-letting even of a portion can entitle the landlord to evict the tenant from the whole building. Applying that view, the Court sustained the eviction under the relevant clause.
  6. Protection of Second Proviso to Section 11(3): The Court relied on A.V. Kammath and related authorities to hold that protection under the second proviso to section 11(3) is available to the tenant and not to sub-tenants. On facts, respondents 2 and 3 failed to prove dependency on income from the business in the building (no accounts, no stock shown for the society) and thus could not establish entitlement to protection under the proviso. The Court also referred to section 2(3) and its Explanation to show that a tenant who sub-lets is treated as a landlord vis-à-vis sub-tenants; and section 21 to show an eviction order against a tenant binds sub-tenants unless obtained by fraud or collusion.
  7. Practical Relief and Execution: Recognising some practical difficulties asserted by the first respondent (storage of materials for his business), the Court granted a limited protective measure: if the first respondent files an affidavit in the court below promising to hand over vacant possession on or before 31.3.2002 and continues to pay the admitted rent until vacating, then execution of the eviction order shall not be carried out before 31.3.2002.
  8. Section 11(4)(iii) Issue: The appellate court had set aside the trial court's finding under section 11(4)(iii) (relating to possession of another building by the tenant). The landlord sought review of that reversal, but the Court observed that since the orders under other provisions were confirmed, it would not entertain further consideration of the contentions raised in CRP.2866/2001 on section 11(4)(iii).

Holding and Implications

Core Ruling: All the Civil Revision Petitions are disposed of, and the concurrent orders passed by the courts below under Section 11(3) (and under Section 11(4)(i) in respect of the objectionable sub-lease) are confirmed.

Implications and direct effects:

  • The landlord's claimed bona fide requirement (for her son to start a hotel business) was held to be proved on the evidence and the concurrent findings on this point were upheld.
  • Eviction orders under Section 11(3) were confirmed; because sub-letting of part of the premises to the 4th respondent without consent was found on evidence, eviction under Section 11(4)(i) (and the Court's reading of related sub-clauses) was also sustained.
  • The protection in the second proviso to Section 11(3) is available to the tenant alone and not to sub-tenants; respondents 2 and 3 failed to establish entitlement to protection under that proviso.
  • Partial eviction (vacation of only part of a single leasehold building) was held not to be available under Section 11(3) of the Kerala Act on the facts and scheme of the law: when the lease covers the entire building, eviction (if ordered) concerns the whole leased building rather than parts separately occupied by sub-tenants.
  • Execution of the eviction is temporarily deferred provided the tenant files an affidavit undertaking to surrender possession on or before 31.3.2002 and continues to pay admitted rent until vacating; if he does so, the eviction order will not be executed before that date.
  • No broader new legal doctrine was formulated beyond application and reiteration of existing statutory interpretation and case law; the judgment confirms the application of established principles to the facts and upholds the eviction orders already made by the courts below.

Note: This summary is strictly confined to the content of the provided opinion and does not add facts or inferences beyond the text of the judgment.

Show all summary ...

The Judgment of the Court was delivered by

J.B Koshy, J.:— CRP. Nos. 1786, 1888 and 1930/2002 are filed by the respondents in RCP No. 12/95 on the file of the Rent Control Court, Tellichery. CRP. No. 2866/2001 is filed by the landlord who was the petitioner in the above Rent Control Petition.

2. The landlord filed a petition for eviction under section 11(3), 11(4)(i) and 11(4)(iii) of the Kerala Buildings (Lease and Rent Control) Act 1965 (hereinafter referred to as ‘the Act’). According to the landlord, the petition schedule building belongs to her and it was leased out to the first respondent in the Rent Control Petition as per registered kychit on a monthly rent of Rs. 175/- on 13-09-1963. Respondents 2 and 3 in the R.C.P are the sub tenants and first respondent sub leased portions of the building to them with the consent of the then landlord. Without consent of the landlord first respondent sub leased a portion of the building to 4th respondent. It was also alleged that respondents 1 to 3 are not doing any business in the plaint schedule building. The rent was subsequently enhanced to Rs. 275/-. It is averred that petitioner's son Muhammed Ali is not having any avocation. He wants to start hotel business in the plaint schedule premises. He is depending on the landlord for the said purpose. It is alleged that the first respondent has got another building nearby wherein he conducts business and he is not using the petition schedule building for any purpose. The first respondent filed a counter statement stating that the rent is only Rs. 220/- month, that the need alleged by the petitioner is not bonafide, that he is mainly depending on the income derived from the business conducting in the plaint schedule premises and that the 4th respondent is unknown to him. He denied sub-lease to the 4th respondent. He also stated that no other building is available in the locality which is suitable for his purpose.

3. The second and third respondents contended that they are sub-lessees with the consent of the then landlord and they also mainly depend for their livelihood on the income from the business conducting in the petition schedule building, that the need alleged by the petitioner is not bonafide and that the building is not suitable for conducting hotel business. According to the third respondent which is a co-operative society there are 380 members in the society and all the members and their family members are mainly depending on the income derived from the society and that there is no other suitable building in the locality for housing the society. The sub-lease alleged to have been granted to 4th respondent was denied by the second and third respondents also. Fourth respondent did not appear in court. After consideration of the evidence, the Rent Control Court allowed the application under Section 11(3), 11(4)(i) and 11(4)(iii) of the Act. The Rent Control Court found that there is objectionable sub lease to 4th respondent, that the building is required for the bonafide occupation of the petitioner's son who has no other avocation and that the first respondent has got another building for conducting business and virtually he is not conducting any business in this building.

4. On appeal the findings under section 11(3)(i) and 11(4)(i) were confirmed but the finding under section 11(4)(iii) was set aside. Against the order of eviction passed under section 11(3)(i) and 11(4)(i), all the three contesting respondents filed Revision Petitions and the landlord filed a Revision Petition against the finding regarding section 11(4)(iii).

5. From the counter statement and evidence it is very clear that the first respondent is the tenant. Ext. A1 deed is very clear to that effect. It is also not disputed that respondents 2 and 3 are sub-tenants under him and those sub leases are not objectionable leases. Their sub leases were mentioned in Ext. A1 itself. It has also come out in evidence that first respondent alone pays rent to the landlord and respondents 2 and 3 pay rent to the first respondent and that is an arrangement between first respondent and them, even though sub-tenancies are consented by the landlord. With regard to the bonafide need of the petitioner's son for conducting a hotel business it is concurrently found by both the courts below that the need is bonafide. The petitioner's son was unemployed and has no avocation. It has also come out in evidence that he is able to mobilise funds to start hotel business. It is true that earlier a petition for eviction was filed but it was not pressed as the petitioner's son had a business in Mysore at that time. He deposed before court that he stopped that business and he had no avocation for about six years. The evidence was analysed and accepted by both the courts below and the finding regarding bonafide requirement entered by both the courts below concurrently, cannot be reversed in a revision under section 20 of the Act. The building in question was a vast building, a ‘pandikasala’. An argument was advanced before this court that PW. 1, while examining, admitted that he initially wanted to start a hotel business with seating capacity for 50 persons and therefore the entire premises was not necessary. Therefore it is submitted that the requirement of the landlord is not for the entire premises and hence the need itself is not bonafide. We cannot also forget that a hotel require not only sufficient seats to accommodate the customers. It must have kitchen, toilet, arrangements for storing food grains, fire wood and accommodation for workers etc.

6. In the counter statement filed by all the three respondents it is not stated that the entire premises is not required for the hotel business proposed to be conducted and that only a portion is enough. No such contention was raised in the objection filed. No such issue was framed. No specific evidence was adduced to what is the actual requirement and which portion of the building is required for conducting the business etc. even though some questions in this regard were put to PW. 1 in cross-examination. There are no such pleadings. It was submitted that in the decision reported in Rahman v. Ram Chand ((1978) 3 SCC 539 : AIR 1978 SC 413) that part of the building necessary for the landlord's need was ordered to be evicted. The Apex court was considering in that case the proviso to section 11(1)(h) of the Act. It held as follows:

“………We are satisfied that the proviso aforesaid mandates the court to consider whether partial eviction as contemplated therein should be ordered or the entire holding should be directed to be evicted. This aspect, therefore, requires judicial exploration after giving opportunity to both sides to lead evidence in this behalf.”

7. There is no such proviso under Section 11(3). In fact if the bonafide requirement of the premises is proved a splitting up of the tenancy is not contemplated under the Kerala Act and there is no provision under the Act for granting partial eviction of the premises.

8. The decision in Salwant Kaur v. Dhund Singh ((1983) 3 SCC 638 : AIR 1983 SC 623) was also cited for contending that part of petition schedule building can be ordered to be vacated and that the entire premises need not be vacated. There the only question considered by the court was as to which portion has to be directed to be vacated. The landlord claimed vacation of the front portion but the High Court directed back portion to be vacated. The landlord approached the Supreme Court claiming vacation of the front portion of the premises. After considering the fact that the appellant was doing business in battery and back portion is sufficient for him to do that business and the front portion which abuts the market road is more convenient to the respondent. The court also found that entire building is in the middle of a market. In that fact the court held that there is no necessity to ask the tenant to vacate the front portion instead of the back portion. Here in this case landlord wants the entire building covered by a single lease deed Ext. A1. Further, in this case apart from the tenant there are three sub-tenants. As to which of the sub-tenants or tenant himslef has to be vacated, there is no evidence. Besides, on the facts of this case and Kerala Act, the court cannot also order part of the building covered by single lease to be vacated since one cannot distinguish their needs.

9. An identical matter was considered by a Division Bench of this court in Fathima v. Saidali Bafakhy (2001 (2) K.L.T 857). Building in that case was also a pandikasala, a big building. Part of the building was separately occupied by unauthorised sub lessees for a long period and similar contention was raised. In this case there are two authorised sub leases and one unauthorised sub lease. That is the only difference. Justice P.K Balasubramanyan (as he then was) held as follows:

“5. The main contention raised on behalf of the tenant was that the building in question was a big building, a ‘pandikasala’ and the landlord had not specified the magnitude of the business PW. 1 proposed to start in the petition schedule building and the landlords had not shown that it was necessary to get an order for eviction of the entire building, including the various portions in the possession of the sub-tenants. We find that this argument is not acceptable. Firstly, the landlords had given evidence of the business that was proposed to be started in the petition schedule building and going by the nature of the business set up, obviously, space would be required for storing the foodgrains and for carrying on the business. Secondly, the subject - matter of the lease to the tenant was the entire building and it is not Open to the landlords to seek eviction of portions of that building while applying for eviction under S. 11(3) of the Act. The landlords were also not in possession of any part of the building and hence could not also resort to S. 11(8) of the Act. The landlords do not recognise the sub-tenancies created by the tenant. The landlords are therefore not oblieged to treat the portions held by the various sub-tenants as separate buildings coming within the definition of a ‘building’ in the Act and to seek eviction of some portions only. This is a case where the landlords had either to be given an order for eviction of the entire building that was the subject matter of the lease, if they satisfied the court that the need set up by them was bonafide or denied an order for eviction in respect of the entire building if the court was not satisfied that the need set up by them was bonafide. The Appellate Authority in our view, was therefore, justified in holding that the claim for eviction under S. 11(3) of the Act could not be thrown out on the ground that the landlords have not established the need for each part or portion of the petition schedule building held separately by the sub-tenants. On the scheme of the Act, there does not appear to be any scope for insistence on such a requirement on the part of the landlord being established.”

10. Following the above reasons, contention in this regard raised by the respondent in the R.C.P has to be rejected.

11. We have already held that concurrent findings of the courts below that the need of the landlord's son to start a hotel business is a bonafide need cannot be disturbed. It has also come out in evidence that the landlord's son can get sufficient finance from his brothers who are employed in USA and he has no other building to start the business. It was also found on evidence that the tenant is not entitled to the benefit of the second proviso to section 11(3). In fact, it was proved that the first respondent has got other premises and first respondent was not able to prove by any evidence that he was depending upon the income from the petition schedule building for his livelihood. It is also well settled that the protection of the second proviso to section 11(3) can be claimed only by the tenants and not by the sub-tenants. The matter is well settled by the decision in A.V Kammath v. Chandran (1989 (1) KLT 473). Even though subtenancy was consented by the landlord, the sub-tenants were paying rent to the first respondent tenant only and first respondent is the tenant as far as landlord is concerned. We also in this connection refer to section 2(3) which defines the term landlord:

“2(3) “landlord” includes the person who is receiving or is entitled to receive the rent of a building, whether on his own account or on behalf of another or on behalf of himself and others or as an agent, trustee, executor, administrator, receiver or guardian or who would so receive the rent or be entitled to receive the rent, if the building were let to a tenant.

Explanation: A tenant who sub-lets shall be deemed to be a landlord within the meaning of this Act in relation to the sub-tenant.

12. In view of the Explanation first respondent is landlord with respect to sub-tenants. The word ‘tenant’ is defined in section 2(6) to mean a person by whom or on whose account rent is payable for a building. Here liability to pay rent to the landlord is with the first respondent and as far as landlord is concerned he is the tenant.

13. We also agree with the findings of the appellate authority regarding application of second proviso to section 11(3) which is as follows:

“First respondent also contended that respondents 1 to 3 have claimed protection under second proviso to section 11(3) of the Act. It is well settled that the tenant alone can claim the protection under the said proviso as the sub tenants cannot claim protection. In 1989 (1) KLT 473 our Hon'ble High Court held that since the definition of tenant under section 2(6) does not make any distinction between sub tenant who occupy the building with the consent of the landlord and those coming into possession without the consent of the landlord, it cannot be said that former category of sub tenants are entitled to all protections that are available to the tenants under the Act. Therefore in the light of the said decision of our High Court the protection claimed by the admitted sub tenants 2 and 3 need not be considered and they are not entitled to the protection as envisaged in second proviso to Sec. 11(3) of the Act. Lower Court has also not considered the protection claimed by the sub tenant basing on the decision supra”.

14. We see no ground to differ from the above observation. Apart from the above, second and third respondents were not able to prove that they are entitled to the benefit of second proviso to section 11(3). Second respondent did not produce any accounts or evidence to show what is the income earned by him from the business conducted in the above building so as to claim that he is mainly depending upon the income derived from the business conducted in the scheduled building. According to the landlord, he is not doing any business in the building. As far as the third respondent society is concerned, it was deposed by RW. 3, President of the Society, that members weave the cloths at their houses and at the time of deposing there was no stock in the petition schedule building. Even otherwise, being a registered co-operative Society, third respondent cannot claim protection of second proviso to section 11(3) as held in Palakkad District Co-op. Bank v. Mohammed Kaleem (1996 (1) KLT 247)

15. We also extract section 21 of the Act, which is relevant, as follows:

“21. Order under the Act to be binding on sub-tenants:— Any order for the eviction of a tenant passed under this Act shall be binding on all sub-tenants under such tenant, whether they were parties to the proceedings or not, provided that such order was not obtained by fraud or collusion. In cases where subletting is allowed under the original agreement of tenancy the sub-tenant shall be made a party to the proceedings if he had given notice of the sub-tenancy to the landlord.”

16. No special protection is given to authorised sub-tenants. But on the ground of sub-leasing eviction cannot be ordered if the sub lessees are authorised and in case they are allowed under the agreement they also shall be made parties. In view of Ext. A1 deed mentioning respondents 2 and 3 as sub lessees, all of them were made parties in this case. Apart from the, no other protections are given to the sub-tenants under the Act.

17. In view of the above circumstances we confirm the order pissed concurrently by the authorities below under section 11(3).

18. The next point to be considered is the eviction ordered under section 11(4)(i) of the Act. The main contention raised by the tenants is that the 4th respondent is a fictitious person and first respondent had not sub-leased the premises to the 4th respondent. Exts. A7 to A11 are the extract of annual list of places for which licence is required for the years 1991–92, 1992–93, 1993–94, 1994–95, 1995–96 respectively. In these extracts the premises in question is shown as in the possession of V.P Moosa (4th respondent) who is the licensee. The extract of the property tax assessment register for the year 1969–70, Ext. A13, shows that the premises is in the possession of One P.P Mammootty. Extracts of A25, A26, A27, A28 shows that V.P Moosa is the tenant of the landlord. Therefore Exts. A7 to A11, A13 and A25 to A28 support the case of the landlord that the 4th respondent was in possession of a portion of the building rented out to first respondent. The consistent case of the first respondent was that those documents were produced by influencing the municipal officials but apart from the wild allegations, no evidence was produced to show that those documents were manipulated by influences. RW. 1 while examining very clearly stated that he did not permit anybody to conduct cool drinks business within the petition schedule building. He did not depose that Moosa is not conducting cool drinks business in the plaint schedule building and that was an indirect admission, as held by the Rent Control Authority, to show the presence of 4th respondent. The notice issued from this court was also accepted by the 4th respondent and a vakalath was filed, even though the advocate was absent today. Considering the evidence both the courts below found that there is objectionable sub-lease to 4th respondent. The above finding of fact is based on evidence and in any event no grounds are urged to set aside concurrent finding of the courts below in a revision proceeding under section 20 of the Act.

19. It was contended by respondents 2 and 3 in the RCP that even if there is unauthorised sub-lease they are not parties and therefore they should not be penalised for sub-leasing the premises by the first respondent. They also cited the decision of the Supreme Court in A.S Sulochana v. C. Dharmalingam. ((1987) 1 SCC 180 : AIR 1987 SC 242). There the court found that for 18 years there was no objection, that sub-tenant was openly in occupation of the rented premises during the said period, that exact arrangement with the father original landlord was not known and it was not clear whether there was a consent earlier by the original landlord. Apart from that, it was also held that since the present tanents were not parties to the creation of sub-tenancy, they are not the violators and penal provision of eviction on the ground of sub-lease cannot be ordered. Here the sub-leasing is done by first respondent who is the real tenant and he is still alive and order of eviction passed against the first respondent will be binding on the other subtenants also. Sub-tenants were also parties as provided in section 21 of the Act.

20. Section 11(4)(i) reads as follows:

“11(4) A landlord may apply to the Rent Control Court for an order directing the tenant to put the landlord in possession of the building—

(i) if the tenant after the commencement of this Act, without the consent of the landlord, transfers his right under the lease or sub-lets the entire building or any portion thereof if the lease does not confer on him any right to do so;

Provided that an application under this clause shall not be made for the first time in respect of one and the same tenancy unless the landlord has sent a registered notice to the tenant intimating the contravention of the said condition of the lease and the tenant has failed to terminate the transfer or the sub-lease, as the case may be, within thirty days of the receipt of the notice or the refusal thereof.”

(emphasis supplied)

21. It is seen that if part of the rented premises is sub-leased without consent, the entire premises can be vacated under section 11(4)(ii) of the Kerala Act. In this connection we refer to the decision of a Division Bench reported in Ramakrishnan v. Sankaranarayanan (1998 (2) KLT SN 49) wherein it was held that even if the sub-letting is only of a portion of the building, the landlord gets the right to evict the tenant from the whole building let to him. (See also Kadersha v. Venkitasami (1987 KLT 260).

22. It is submitted by first respondent that he is storing the materials for his provision business in the plaint schedule building and an immediate eviction will cause difficulties to him. Considering the facts and circumstances pleaded, we are of the opinion that if the first respondent-tenant files an affidavit before the court below that he will hand over vacant possession of the building on or before 31.3.2002 and will continue to pay the admitted rent till he vacates the premises, the order of eviction shall not be executed before 31.3.2002

23. According to landlord findings under section 11(4)(iii) of the Rent Control Court should not have been reversed by the Appellate Authority. It was found that the first respondent has got a pucca building in the adjacent place and he is doing business in that place. But appellate court did not order eviction on that ground only because that building was occupied on the date of filing of the petition. In view of the confirmation of the order passed by the courts below, we are not considering the contentions raised in CRP. 2866/2001 filed by the landlord.

24. All the Civil Revision Petitions are disposed of with the above observations.