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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 13(1)(e) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950
  • Section 13(1)(e) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947
  • The Bombay Rents, Hotel and Lodging House Rates Control Act, 1947
  • Section 13(1)(e) of the Bombay Act, 1947
  • Section 13(1)(e) of the Bombay Rents, Hotel and Lodging House Rates Control (Amendment) Act, 1973
  • Section 13(1)(e) of the abovementioned Act
  • Section 13(1)(e), The Rajasthan Act
  • Section 13(1)(e) of the Saurashtra Rent Control Act
  • the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 13(1)(e) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950
  • Section 13(1)(e) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947
  • The Bombay Rents, Hotel and Lodging House Rates Control Act, 1947
  • Section 13(1)(e) of the Bombay Act, 1947
  • Section 13(1)(e) of the Bombay Rents, Hotel and Lodging House Rates Control (Amendment) Act, 1973
  • Section 13(1)(e) of the abovementioned Act
  • Section 13(1)(e), The Rajasthan Act
  • Section 13(1)(e) of the Saurashtra Rent Control Act
  • the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The respondent–landlord let the first floor of the suit premises (four rooms) to the appellant–tenant on 1 January 1960 at a monthly rent of Rs 50. The respondent alleged that in August 1965 the appellant unlawfully sub-let two of those rooms to one Jitendra Shankarji Desai. A notice terminating the tenancy was served on 1 April 1967. The appellant denied any unlawful sub-letting and claimed that Desai vacated on 14 April 1967.

The respondent instituted a suit for possession under Section 13(1)(e) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (“the Bombay Act”). The trial court found that unlawful sub-letting had occurred and decreed eviction. The District Judge dismissed the appellant’s appeal. A revision petition before the Gujarat High Court was also dismissed on 15 February 1974. The present appeal to the Supreme Court was brought by special leave against that High Court decision.

Legal Issues Presented

  1. Whether the expression “the tenant has sublet” in Section 13(1)(e) of the Bombay Act requires that the sub-tenancy still exist on the date of the suit or decree, or whether proof of an unlawful sub-letting at any time after the Act came into force suffices to justify eviction.

Arguments of the Parties

Appellant's Arguments

  • The words “has sublet” import a present-continuing state of affairs; therefore the sub-tenancy must subsist on the date the eviction suit is filed.
  • Because Desai allegedly vacated on 14 April 1967, before the suit was filed, the statutory ground for eviction was not satisfied.
  • Reliance was placed on Goppulal v. Thakurji Shriji Dwarkadheeshji (1969 1 SCC 792; 1969 3 SCR 989) for the proposition that “has sublet” contemplates a sub-letting that continues up to the relevant time.

Respondent's (Landlord's) Position

  • Section 13(1)(e) withdraws statutory protection once any unlawful sub-letting after the Act’s commencement is proved; continuity until the date of suit is immaterial.
  • Accepting the appellant’s view would allow tenants to defeat the statute by inducing sub-tenants to vacate once notice is received.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Maganlal Narandas Thakkar v. Arjan Bhanji Kanbi, (1969) 10 Guj LR 837 The phrase “has sublet” in analogous rent-control legislation does not require the sub-tenancy to subsist at the time of the suit. Relied upon by the High Court and implicitly approved by the Supreme Court to support the view that continuity of sub-tenancy is unnecessary.
Goppulal v. Thakurji Shriji Dwarkadheeshji, 1969 1 SCC 792; 1969 3 SCR 989 Discussion of the temporal scope of “has sublet” under Section 13(1)(e) of the Rajasthan Act. Distinguished: the Supreme Court explained that Goppulal dealt with different factual circumstances and did not decide that the sub-tenancy must persist until the suit is filed.

Court's Reasoning and Analysis

The Supreme Court examined the text of Section 13(1)(e) of the Bombay Act and concluded that once a tenant “has sublet” unlawfully, the statutory protection from eviction is forfeited. The Court reasoned that:

  • The statutory language focuses on the fact of sub-letting occurring after the Act came into force, not on its continuance.
  • If continuity were required, a tenant could always evade eviction by persuading the sub-tenant to vacate after receiving notice, defeating the legislative intent.
  • The decision in Goppulal was contextual: it turned on whether the sub-letting was within the mischief of the controlling legislation at the relevant times. It did not lay down a rule that sub-tenancy must exist on the date of suit.
  • The Gujarat High Court’s reliance on Maganlal Narandas Thakkar was appropriate; the two enactments employ similar wording and rationale.
  • Accordingly, proof that the appellant had unlawfully sub-let two rooms after the commencement of the Bombay Act was sufficient ground for eviction, irrespective of whether Desai remained in possession when the suit was filed.

Holding and Implications

The appeal is dismissed with costs.

Consequently, the decree for eviction stands affirmed. The decision clarifies that under Section 13(1)(e) of the Bombay Act, the landlord need only establish that an unlawful sub-letting occurred after the Act came into operation; the sub-tenancy need not be subsisting at the time of the suit. No new precedent is created, but the Court reinforces existing interpretations and prevents tenants from avoiding eviction by terminating sub-tenancies after notice.

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    Gajanan Dattatraya v. Sherbanu Hosang Patel And Others

    A.N Ray, C.J— This appeal is by special leave from the judgment dated February 15, 1974 of the Gujarat High Court dismissing the revision petition filed by the appellant.

    2. The appellant filed a revision petition in the High Court against the judgment and decree passed by the District Judge dismissing his appeal against the decree for eviction of the appellant from the suit premises.

    3. The respondent filed the suit against the appellant for possession of the premises on the ground that the appellant had sublet a portion of the premises.

    4. Section 13(1)(e) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 which is the relevant section for the purpose of this appeal runs as follows:

    “13. (1)(e) That the tenant has, since the coming into operation of this Act, unlawfully sublet, or after the date of commencement of the Bombay Rents, Hotel and Lodging House Rates Control (Amendment) Act, 1973, unlawfully given on licence, the whole or part of the premises or assigned or transferred in any other manner his interest therein.”

    5. The appellant took on lease on January 1, 1960 the premises, namely, first floor consisting of four rooms at a rent of Rs 50 per month.

    6. The respondent alleged that the appellants sublet a portion thereof, namely, two rooms, in the month of August 1965. The respondent on April 1, 1967 gave a notice to the appellant terminating the tenancy.

    7. The appellant denied that there was any unlawful subletting of two rooms to Respondent 5 Jitendra Shankarji Desai. The appellant further alleged that Respondent 5 Desai vacated the suit premises on April 14, 1967.

    8. At the trial the issues were whether the appellant unlawfully sublet two rooms to respondent Desai. The trial court held that the appellant sublet the suit premises to Respondent 5. The trial court gave the plaintiff-respondent a decree for possession of the suit premises.

    9. The appellant preferred an appeal. The appeal was dismissed.

    10. The appellant, thereafter, filed a revision petition in the High Court. In the High Court the contentions were these. The expression “the tenant has sublet” in Section 13(1)(e) of the abovementioned Act means that the subletting must continue at the date of the suit for passing the decree. The notice was given on April 1, 1967. Respondent 5 vacated the premises in suit on April 14, 1967. When the suit was filed the sub-tenant was not in occupation of the premises. Therefore, the plaintiff-respondent was not entitled to a decree.

    11. The High Court relied on a Bench decision of that High Court in Maganlal Narandas Thakkar v. Arjan Bhanji Kanbi (1969) 10 Guj LR 837 where it was held that the words “has sublet” in Section 13(1)(e) of the Saurashtra Rent Control Act mean that a subletting has taken place and as a result of that subletting the impediment in the way of the landlord to recover possession has been removed. The provisions contained in Section 13(1)(e) of the Saurashtra Rent Control Act are similar to the provisions contained in the Bombay Act, 1947. The High Court also held that the words “has sublet” do not include any element of the sub-tenancy being in existence at the date when the suit is filed.

    12. The appellant relied on a decision of this Court in Goppulal v. Thakurji Shriji Shriji Dwarkadheeshji (1969) 1 SCC 792, (1969) 3 SCR 989 in support of the proposition that the words “has sublet” mean that the subletting is to subsist at the date of the suit. This Court in Goppulal case (1969) 1 SCC 792, (1969) 3 SCR 989 considered Section 13(1)(e) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950. Section 13(1)(e) of the Rajasthan Act provides that no decree evicting the tenant shall be passed unless the Court is satisfied

    “(e) that the tenant has assigned, sublet or otherwise parted with the possession of the whole or part of the premises, without the permission of the landlord”.

    13. The High Court in Goppulal case (1969) 1 SCC 792, (1969) 3 SCR 989 held that two shops were sublet after October 15, 1947 when the Jaipur Rent Control Order, 1947 came into force. Subletting was a ground for ejectment under para 8(1)(b)(ii) of the Jaipur Rent Control Order, 1947. The High Court held that the tenant's liability for eviction on this ground continued after the promulgation of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950.

    14. This Court said that the High Court was in error that there was one “integrated tenancy” for six shops. The facts found were that four shops were let out in 1944 and two shops were let out after 1945. This Court found that the High Court was in error in holding that two shops were sublet after October 15, 1947.

    15. This Court held that the plaintiffs in Goppulal case (1969) 1 SCC 792, (1969) 3 SCR 989 did not establish that the subletting was after October 15, 1947 and on the date of the subletting in 1944, no rent control legislation was in force. It is in that context that it is said that the words “has sublet contemplate a completed event connected in some way with the present time”. This Court said that the words “has sublet” take within their sweep any subletting which was made in the past and has continued upto the present time. What is meant by these observations is that the vice of subletting which fell within the mischief of the Act continues to be a mischief within the Act. In Goppulal case (1969) 1 SCC 792, (1969) 3 SCR 989 there was no subletting in 1947 to violate the 1947 Jaipur Rent Control Order and therefore there could not be any subletting which could continue upto the 1950 Rajasthan Act.

    16. On the date of the subletting in 1944, this Court found in Goppulal case (1969) 1 SCC 792, (1969) 3 SCR 989 that there was no rent control legislation in force. This Court did not consider the question as to whether subletting to be within the mischief of the relevant statute was to subsist at the date of the suit. This Court held that Section 13(1)(e) of the Rajasthan Act would include any subletting which though made in the past would continue at the point of the time when the Act came into force.

    17. The appellant repeated the same contentions which had been advanced before the High Court. The provisions of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 indicate that a tenant is disentitled to any protection under the Act if he is within the mischief of the provisions of Section 13(1)(e), namely, that he has sublet. The language is that if the tenant has sublet, the protection ceases. To accede to the contention of the appellant would mean that a tenant would not be within the mischief of unlawful subletting if after the landlord gives a notice terminating the tenancy on the ground of unlawful subletting the sub-tenant vacates. The landlord will not be able to get any relief against the tenant in spite of unlawful subletting. In that way the tenant can foil the attempt of landlord to obtain possession of the premises on the ground of subletting every time by getting the sub-tenant to vacate the premises. The tenant's liability to eviction arises once the fact of unlawful subletting is proved. At the date of the notice, if it is proved that there was unlawful subletting, the tenant is liable to be evicted. The High Court rightly rejected the revision petition.

    18. The appeal is dismissed with costs.

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    Comments

    Gajanan Dattatraya v. Sherbanu Hosang Patel And Others
    (Aug 29, 1975)