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AMICUS AI
Citation Codes
Neutral Citations
1980 INSC 141
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 108 of the Transfer of Property Act
  • Section 108 and other provisions of the Transfer of Property Act
  • Section 108(j) of the Transfer of Property Act, 1882
  • Section 11(4)(i) of the Kerala Act
  • Entry 6 of List III in the Seventh Schedule to the Constitution
  • Section 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act 2 of 1965
  • Section 11 of the Kerala Buildings (Lease and Rent Control) Act 2 of 1965
  • Section 11(4)(i) of the Buildings (Lease and Rent Control) Act
  • Section 106 of the Transfer of Property Act
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Cites
Cited by
Citation Codes
Neutral Citations
1980 INSC 141
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 108 of the Transfer of Property Act
  • Section 108 and other provisions of the Transfer of Property Act
  • Section 108(j) of the Transfer of Property Act, 1882
  • Section 11(4)(i) of the Kerala Act
  • Entry 6 of List III in the Seventh Schedule to the Constitution
  • Section 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act 2 of 1965
  • Section 11 of the Kerala Buildings (Lease and Rent Control) Act 2 of 1965
  • Section 11(4)(i) of the Buildings (Lease and Rent Control) Act
  • Section 106 of the Transfer of Property Act
Smart Summary

Factual and Procedural Background

The respondent-landlord initiated eviction proceedings against the appellant-tenant under Section 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act, 1965, alleging that the tenant had sublet the premises without the landlord’s consent. The Rent Controller ordered eviction on 31 July 1974. That order was successively affirmed by the Subordinate Judge, the District Judge and the High Court of Kerala. The tenant then approached the Supreme Court by special leave under Article 136 of the Constitution.

Legal Issues Presented

  1. Whether Section 108(j) of the Transfer of Property Act, 1882—which permits a lessee to sublease “in the absence of a contract or local usage to the contrary”—is automatically incorporated into every lease and therefore bars a landlord from seeking eviction under Section 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act when the lease is silent on subletting.

Arguments of the Parties

Appellant's Arguments

  • Invoked Section 108(j) of the Transfer of Property Act to contend that, unless a lease expressly prohibited subletting, the tenant had a statutory right to sublet.
  • Argued that this implied statutory term meant the lease itself “conferred” a right to sublet, thereby defeating the landlord’s reliance on Section 11(4)(i) of the Kerala Act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
V. Dhanapal Chettiar v. Yesodai Ammal (1979) 4 SCC 214; AIR 1979 SC 1745 State Rent Acts may override or displace provisions of the Transfer of Property Act where the subject matter is specifically covered by the State legislation. Used to support the proposition that Section 108 of the Transfer of Property Act does not operate where a State Rent Act—here, Section 11(4)(i) of the Kerala Act—expressly provides for eviction on stated grounds.

Court's Reasoning and Analysis

The Court read Section 11(4)(i) of the Kerala Act “plainly and without gloss” and concluded that a tenant may be evicted for subletting unless the right to sublet is expressly conferred by the lease or by subsequent consent of the landlord. The phrase “if the lease does not confer on him any right to do so” was interpreted as a requirement of an affirmative grant of such a right; it could not be implied unilaterally.

Accepting the appellant’s argument would, in the Court’s view, amount to rewriting the statute to add a requirement that subletting be “prohibited” by the lease—an interpretation the text does not support. The legislative intent, the Court noted, was to prevent tenants—who already enjoy statutory protection—from extending that protection to subtenants without the landlord’s agreement.

Invoking the seven-Judge decision in Dhanapal Chettiar, the Court emphasized that State Rent Acts can, by necessary implication, displace rights and liabilities otherwise arising under the Transfer of Property Act. Consequently, Section 108(j) could not be used as a defence to defeat the landlord’s statutory ground for eviction under Section 11(4)(i).

Holding and Implications

Appeal Dismissed; eviction order upheld with costs.

The decision confirms that tenants in Kerala cannot claim an implied right to sublet merely because their lease is silent on the issue. Unless the lease expressly grants such a right or the landlord subsequently consents, unauthorized subletting remains a valid ground for eviction under Section 11(4)(i). The ruling reinforces the primacy of State Rent Control legislation over general provisions of the Transfer of Property Act and sets a clear precedent for similar disputes within the State.

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    K.K Krishnan v. M.K Vijaya Raghavan .

    O. Chinnappa Reddy, J.— The respondent-landlord filed a petition for eviction of the appellant-tenant from the premises in dispute under Section 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act 2 of 1965, on the ground that the appellant had sublet the premises without the consent of the landlord. The petition had a chequered career but finally the Rent Controller ordered eviction by his Order dated July 31, 1974. The order of the Rent Controller was confirmed, successively by the Subordinate Judge, the District Judge and the High Court. The tenant has now preferred this appeal by special leave of this Court under Article 136 of the Constitution.

    2. Shri Govindan Nair learned counsel for the appellant submitted that under Section 108(j) of the Transfer of Property Act, 1882, it was a term of every lease that the lessee might sublease the whole or any part of his interest in the property and, therefore, unless the lease expressly prohibited the lessee from subletting the whole or part of the premises, the landlord could not have recourse to Section 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act.

    3. In order to appreciate the submission of Shri Govindan Nair, we may set out the relevant statutory provisions. Section 108(j) of the Transfer of Property Act, 1882, is as follows:

    In the absence of a contract or local usage to the contrary, the lessor and the lessee of the immovable property, as against one another, respectively, possess the rights and are subject to the liabilities mentioned in the rules next following, or such of them as are applicable to the property leased:
    * * *
    (j) the lessee may transfer absolutely or by way of mortgage or sublease the whole or any part of his interest in the property, and any transferee of such interest or part may again transfer it. The lessee shall not, by reason only of such transfer, cease to be subject to any of the liabilities attaching to the lease;

    4. Section 11 of the Kerala Buildings (Lease and Rent Control) Act 2 of 1965, to the extent that it is relevant is as follows:

    11. (1) Notwithstanding anything to the contrary contained in any other law or contract a tenant shall not be evicted, whether in execution of a decree or otherwise, except in accordance with the provisions of this Act:
    * * *
    (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 sublets the entire building or any portion thereof if the lease does not confer on him any right to do so.

    5. The submission of Shri Govindan Nair was that if the lease did not expressly prohibit subletting, the provision in Section 108(j) of the Transfer of Property Act which enabled a lessee to sublease the whole or any part of his interest in the property had necessarily to be read into every lease as one of its terms, and so read, it followed that the lease conferred on the tenant the right to sublet “the entire building or any portion thereof” so as to disentitle the landlord from seeking eviction of the tenant under Section 11(4)(i) of the Kerala Act. We are unable to agree with this submission.

    6. Read plainly and without gloss, Section 11(4)(i), simply and clearly, means that a tenant may be evicted on the ground of subletting unless such subletting is permitted by a term of the lease itself or by subsequent consent of the landlord. What is necessary is an application of the mind and the resulting consensus between the landlord and the tenant. If the clause “if the lease does not confer on him any right to do so” was not there in Section 11(4)(i) the position would be unarguable that Section 108(j) would offer no protection. That much was also conceded by Shri Govindan Nair. In our opinion, the addition of the clause did not improve matters for the tenant. It only clarified matters to this extent that the right to sublet could be conferred on the tenant either at the time of the lease or subsequently, but it had to be conferred: it could not be claimed unilaterally by the tenant. To interpret Section 11(4)(i) in the manner suggested by Shri Govindan Nair would be to rewrite the provision as follows: “If the tenant ... without the consent of the landlord, transfers his right under the lease or sublets the entire building or any portion thereof, though prohibited by the lease from doing so”. That, we are not called upon to do. A little thought over the reason for Section 11(4)(i) will also throw some light. Quite obviously, the legislature thought that the tenant whose tenancy was well secured and protected by the rights conferred by the Buildings (Lease and Rent Control) Act should alone be entitled to such security and protection and that the tenant should not be allowed to profit by the protection given to him by subletting the premises and extending the protection to others beside himself, unless the landlord by his act agreed to such a course. Where the landlord had himself agreed that the tenant could sublet, the question would not arise. Therefore, Section 11(4)(i) provides that subletting shall be a ground for eviction but not if it was by agreement of the landlord.

    7. In V. Dhanapal Chettiar v. Yesodai Ammal (1979) 4 SCC 214, AIR 1979 SC 1745 a Bench of seven Judges of this Court had to consider the question whether notice under Section 106 of the Transfer of Property Act determining the lease was necessary before a landlord could move the Rent Controller or other appropriate authority for the eviction of the tenant under the various State Rent Acts. The court held that it was not necessary and Untwalia, J., speaking for the court, said:

    Section 108 deals with the rights and liabilities of lessors and lessees. Many State Rent Acts have brought about considerable changes in the rights and liabilities of a lessor and a lessee, largely in favour of the latter, although not wholly. The topic of transfer of property other than agricultural land is covered by Entry 6 of List III in the Seventh Schedule to the Constitution. The subject being in the Concurrent List, many State Rent Acts have by necessary implication and many of them by starting certain provisions with a non obstante clause have done away with the law engrafted in Section 108 of the Transfer of Property Act except in regard to any matter which is not provided for in the State Act either expressly or by necessary implication.
    Later, he said:
    But when under the various State Rent Acts, either in one language or the other, it has been provided that a tenant can be evicted on the grounds mentioned in certain sections of the said Acts, then how does the question of determination of a tenancy by notice arise? If the State Rent Act requires the giving of a particular type of notice in order to get a particular kind of relief, such a notice will have to be given. Or, it may be, that a landlord will be well advised by way of abundant precaution and in order to lend additional support to his case, to give a notice to his tenant intimating that he intended to file a suit against him for his eviction on the ground mentioned in the notice. But that is not to say that such a notice is compulsory or obligatory or that it must fulfil all the technical requirements of Section 106 of the Transfer of Property Act.

    8. It is clear from what has been said that not all the rights conferred on landlord and tenant by Section 108 and other provisions of the Transfer of Property Act have been left in tact by the various State Rent Acts and that if a State Rent Act makes provision for eviction on certain specified grounds, eviction cannot be resisted on the basis of rights conferred by the Transfer of Property Act. Section 108(j) of the Transfer of Property Act stands displaced by Section 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act and is no defence to an action for eviction based on Section 11(4)(i).

    9. We are satisfied that the appeal is without merit and is accordingly dismissed with costs.

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    Comments

    K.K Krishnan v. M.K Vijaya Raghavan .
    (Jul 30, 1980)