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Citation Codes
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Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 136 of the Constitution
  • Section 14(1)(b) of the Delhi Rent Control Act, 1958
  • Section 18 of the Evidence Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 136 of the Constitution
  • Section 14(1)(b) of the Delhi Rent Control Act, 1958
  • Section 18 of the Evidence Act
Smart Summary

Factual and Procedural Background

The appellant landlord filed an eviction petition under Section 14(1)(b) of the Delhi Rent Control Act, 1958, alleging that the tenant, Gulzar Singh, had unlawfully sub-let the premises (No. W.Z 258/4, Subash Bazar, Nangal Raya, New Jail Road, New Delhi) to his brother Avtar Singh. The Additional Rent Controller and, in appeal, the Rent Control Tribunal accepted the allegation, found sub-letting proved and ordered eviction. On second appeal, the High Court disagreed, holding that Gulzar Singh remained in exclusive possession and that there had been no sub-letting; it therefore dismissed the eviction petition. The present appeal was filed in the Supreme Court under Article 136 of the Constitution challenging the High Court’s decision.

Legal Issues Presented

  1. Whether the High Court erred in overturning concurrent findings of the Rent Controller and the Rent Control Tribunal that Gulzar Singh had sub-let the premises to Avtar Singh.
  2. Whether an affidavit filed by Avtar Singh before the income-tax authorities, claiming himself to be the tenant, constituted an admissible admission under Section 18 of the Indian Evidence Act, 1872, binding on Gulzar Singh and sufficient to prove sub-letting.

Arguments of the Parties

Appellant’s Arguments

  • The High Court had no jurisdiction to interfere with concurrent findings of fact recorded by the two lower forums.
  • Under Section 18 of the Evidence Act, the affidavit of Avtar Singh before the income-tax authorities, in which he asserted exclusive tenancy, amounted to an admission that was binding on the tenant, Gulzar Singh.
  • Additional oral evidence, together with Avtar Singh’s admission, established that Avtar Singh alone was in exclusive possession, demonstrating sub-letting.
  • The fact that Gulzar Singh was engaged in other businesses implied that he could not be in exclusive possession of the disputed premises.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court’s Reasoning and Analysis

The Supreme Court examined Section 18 of the Evidence Act, which allows certain statements to be treated as admissions binding on a party. The Court noted that:

  • Gulzar Singh was not a party to, nor did he authorise, Avtar Singh’s affidavit; hence the statement could not bind him under Section 18.
  • Given the appellant’s own stance that Gulzar Singh was the sole tenant, Avtar Singh lacked any proprietary, pecuniary, or derivative interest in the premises and was not Gulzar Singh’s agent; therefore, his statement fell outside the scope of admissible admissions.
  • Once the affidavit was excluded as inadmissible evidence, there remained no credible material to support the finding of sub-letting.
  • The High Court correctly treated the initial findings of sub-letting as vitiated because they were “primarily based on inadmissible evidence.” Consequently, it was entitled to re-appraise the remaining evidence and to reject the appellant’s oral testimony.
  • The appellant’s additional contention—that Gulzar Singh’s engagement in other businesses implied relinquishment of possession—was found speculative and unsupported.

Holding and Implications

Appeal Dismissed. The eviction order stands set aside and the tenant retains possession; no order as to costs.

The decision reinforces that an admission under Section 18 of the Evidence Act is binding only when made by or on behalf of a party with recognised authority or interest. Beyond confirming this principle, the judgment creates no new precedent and has effect only on the parties involved.

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    Sri Chand Gupta v. Gulzar Singh And Another

    Order

    1. The appellant landlord had filed an application under Section 14(1)(b) of the Delhi Rent Control Act, 1958 (for short the ‘Act’) for ejectment of the respondents. All the three courts concurrently found that Gulzar Singh was the sole tenant. The Rent Controller and the Tribunal found that he sublet the demised premises to Avtar Singh, his brother and therefore ordered ejectment. The High Court found that the tenant was in exclusive possession of the premises bearing No. W.Z 258/4, Subash Bazar, Nangal Raya, New Jail Road, New Delhi, and that he did not sublet the premises to Avtar Singh. On that premise the petition for ejectment was dismissed. Thus this appeal by special leave under Article 136 of the Constitution.

    2. Shri Nagaraja, learned counsel for the appellant has contended that the High Court has committed a gross error in interfering with the concurrent finding of fact recorded by the Additional Rent Controller and the Rent Control Tribunal that the tenant, Gulzar Singh has sublet the premises in question to his brother, Avtar Singh and that it is not open to the High Court to interfere with the concurrent finding of fact. He placed reliance on Section 18 of the Evidence Act and said that in an affidavit filed by Avtar Singh before income tax authorities he claimed exclusive possession as a tenant and that, therefore, the admission made by him would be binding on Gulzar Singh. The Additional Rent Controller and the Rent Control Tribunal relying upon this admission of Avtar Singh and other oral evidence concluded that Avtar Singh alone was in exclusive possession and that, therefore, subletting was proved as a fact. We find no substance in the contention. Section 18 of the Evidence Act reads as under:

    “18. Admission by party to proceeding or his agent; by suitor in representative character; by party interested in subject matter; by person from whom interest derived.— Statements made by a party to the proceeding, or by an agent to any such party, whom the court regards, under the circumstances of the case, as expressly or impliedly authorised by him to make them, are admissions.
    Statements made by parties to suits, suing or sued in a representative character, are not admissions, unless they were made while the party making them held that character.
    Statements made by—

    (1) persons who have any proprietary or pecuniary interest in the subject matter of the proceeding and who make the statement in their character of persons so interested, or

    (2) persons from whom the parties to the suit have derived their interest in the subject matter of the suit,

    are admissions, if they are made during the continuance of the interest of the persons making the statements.”

    Section 18 postulates that statements made by a party to the proceeding, or by an agent to any such party, whom the Court regards, under the circumstances of the case, as expressly or impliedly authorised by him to make them, are admissions. Equally statement made by a person who has any proprietary or pecuniary interest in the subject matter of the proceedings or by persons having derivative interest during the continuance of the interest also are admissions. In this case, admittedly, Gulzar Singh was not a party to the affidavit signed by Avtar Singh. Therefore, the admission made by Avtar Singh that he is the tenant in exclusive possession of the demised premises does not bind Gulzar Singh. In view of the plea and stand of the appellant, Avtar Singh cannot claim to have any pecuniary interest or any joint interest along with Gulzar Singh in the demised premises. Once it is found that Gulzar Singh alone is the tenant, as admittedly pleaded by the appellant, Avtar Singh cannot claim to have any pecuniary or derivative interest in the demised premises. He is not an agent of Gulzar Singh. Under those circumstances, as rightly found by the High Court, that the admission made by Avtar Singh in the affidavit is inadmissible and does not bind Gulzar Singh. Once that admission is excluded from consideration, there is no other evidence worth accepting to conclude that Avtar Singh was in exclusive possession as a tenant. The High Court rightly held that the finding of subletting or parting with possession of the premises in dispute was vitiated in law as it was primarily based on inadmissible evidence. Having found the finding vitiated, it was open to the High Court to re-examine and reappreciate the evidence on record. On reappraisal it disbelieved the oral evidence. We do not find any error in such reappraisal. It is then sought to be contended that Gulzar Singh had other business and it implies that he is not in exclusive possession of the demised premises. We find no force in the contention. It may be that Gulzar Singh had other business but that does not lead to the conclusion that Gulzar Singh is not in exclusive possession of the demised premises as tenant or that he sublet the premises to Avtar Singh.

    3. Accordingly, the appeal is dismissed, but in the circumstances, without costs.

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    Comments

    Sri Chand Gupta v. Gulzar Singh And Another
    (Oct 22, 1991)