AMICUS AI
Citation Codes
Neutral Citations
2002 INSC 110
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Act (no specific title or section mentioned)
  • Section 22 of the Act
  • Section 10 of the A.P Buildings (Lease, Rent and Eviction) Control Act, 1960
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Cites
Cited by
Citation Codes
Neutral Citations
2002 INSC 110
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Act (no specific title or section mentioned)
  • Section 22 of the Act
  • Section 10 of the A.P Buildings (Lease, Rent and Eviction) Control Act, 1960
Smart Summary

Factual and Procedural Background

The dispute concerns a non-residential building at No. 4-6-244 (Old No. 1883), Subhas Road, Secunderabad. The original owner, Smt. Pola Rajamaniamma, leased the ground floor (“the premises”) to the appellant in his individual capacity. She later sold the property to Respondent 1 and the late Babu Lal Patel (whose legal representatives are Respondents 2–7) and formally attorned the tenancy of “M/s Brij Mohan Chokkani and Sons” (“the firm”) to them. Thereafter rent was paid by, and receipts issued to, the firm.

Claiming several grounds under Section 10 of the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 (“the Act”), the respondents filed an eviction petition against the appellant. The Principal Rent Controller held that the firm—not the appellant—was the tenant and dismissed the petition on 31-12-1992. The Appellate Authority affirmed this finding on 26-2-1997. The respondents then filed CRP No. 2236 of 1997. A Single Judge of the High Court of Andhra Pradesh re-evaluated the evidence, reversed the concurrent findings, and allowed the revision on 19-7-1999. The appellant obtained special leave to appeal to the Supreme Court, resulting in the present judgment.

Legal Issues Presented

  1. Whether the appellant personally, or the partnership firm “M/s Brij Mohan Chokkani and Sons,” is the lawful tenant of the premises.
  2. Whether the High Court, exercising revisional jurisdiction under Section 22 of the Act, was justified in overturning concurrent factual findings of the statutory authorities.

Arguments of the Parties

Appellant's Arguments

  • The firm, not the appellant, was always the tenant; rent was paid by the firm and accepted by both the previous landlady and the respondents.
  • The letter of attornment expressly recognised the firm’s tenancy, confirming the firm’s status as tenant.
  • The High Court exceeded its revisional jurisdiction by re-appreciating evidence and disturbing concurrent findings of fact.

Respondents' Arguments

  • Mere payment of rent by the firm does not make it the tenant; the original lease was with the appellant personally.
  • The attornment letter addressed to the firm was only because the firm conducted business there; it did not alter the legal relationship of tenancy.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court characterised the identity of the tenant as a pure question of fact. It observed that both the Rent Controller and the Appellate Authority had, after a full evaluation of evidence, concluded that the firm was the tenant. In revision under Section 22 of the Act, the High Court’s power is “truncated” and cannot be equated with appellate jurisdiction. Interference is permissible only when findings:

  • violate statutory provisions or binding precedent,
  • result from misreading or omission of clinching evidence, or
  • are so unreasonable that no prudent person could reach them.

The Court found none of these defects. The High Court wrongly assumed that the tenant question had not been put in issue, despite Issue 1 explicitly framing it. Paying rent alone may not create tenancy, yet the consistent conduct—rent receipts in the firm’s name before and after the sale, and attornment to the firm—demonstrated that the firm, not the appellant, was accepted as tenant by all parties. Permission in the original lease for the appellant to conduct partnership business did not transform an individual tenancy into a partnership tenancy, but neither did it preclude recognising the firm as tenant when the parties’ conduct clearly treated it as such. Accordingly, the High Court’s re-appreciation of evidence and contrary conclusion were held to be beyond its revisional competence.

Holding and Implications

Holding: The Supreme Court set aside the High Court’s order, dismissed the eviction petition against the appellant, and allowed the appeal. No costs were awarded.

Implications: The firm remains the recognised tenant, and the appellant cannot be evicted on the basis of the impugned petition. The judgment reinforces limits on the High Court’s revisional powers under Section 22 of the Act but establishes no new legal precedent beyond applying settled principles on revisional jurisdiction and factual findings.

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    Harshavardhan Chokkani v. Bhupendra N. Patel And Others

    Order

    1. This appeal from the judgment of the High Court of Judicature, Andhra Pradesh at Hyderabad in CRP No. 2236 of 1997 dated 19-7-1999 is by the tenant. The respondents are the landlords of a non-residential building, bearing No. 4-6-244 (Old No. 1883) Subhas Road, Subrie Street, Secunderabad which was earlier owned by one Smt Pola Rajamaniamma who entered into an agreement of lease in regard to the ground floor of that building (for short “the premises”) with the appellant. She sold the premises in favour of Respondent 1 and one late Babu Lal Patel whose legal representatives are Respondents 2 to 7. After the sale Smt Pola Rajamaniamma sent a letter attorning the tenancy of M/s Brij Mohan Chokkani and Sons (for short “the firm”) in favour of Respondents 2 to 7. Thereafter the rent was being paid by the firm to the said respondents and receipts therefor were being issued in favour of the firm. While so, the respondents filed eviction petition in the Court of the Principal Rent Controller at Secunderabad against the appellant on various grounds under Section 10 of the A.P Buildings (Lease, Rent and Eviction) Control Act, 1960 (for short “the Act”). The appellant contested the eviction petition, inter alia, on the plea that he was not the tenant but the firm was the tenant of the premises, therefore, the eviction petition of the appellant was not maintainable. The learned Principal Rent Controller held that the firm was the tenant and dismissed the eviction petition on 31-12-1992. The respondents challenged the order of the learned Principal Rent Controller in the Court of the Chief Judge, City Small Cause Court, at Hyderabad (the Appellate Authority under the Act). That finding of the learned Principal Rent Controller was confirmed by the Appellate Authority and the appeal was dismissed on 26-2-1997. Dissatisfied with the said judgment of the Appellate Authority the respondents filed CRP No. 2236 of 1997 in the High Court. A learned Single Judge of the High Court allowed the civil revision petition by order dated 19-7-1999. It is against that order that the appellant is before us in appeal by special leave.

    2. Mr Dhruv Mehta, the learned counsel appearing for the appellant contends that even before the attornment of the tenancy of the premises in favour of the respondents, the firm alone was the tenant; the firm was paying the rent and the erstwhile landlady was accepting the same and passing receipts in its favour. It was the tenancy of the firm but not the appellant that was attorned in favour of the respondents, therefore, the High Court has erred in holding that the appellant is the tenant of the premises. Mr L.N Rao, the learned Senior Counsel appearing for the respondents has argued that merely by paying the rent the firm cannot become the tenant of the premises and that the letter of attornment does not carry the matter any further; because the firm was carrying on the business in the premises, the letter of attornment was addressed to the firm and that would not make the firm a tenant.

    3. The short question that arises for consideration is: whether the High Court is right in interfering with the findings of fact recorded by the statutory authorities and holding that the appellant is the tenant of the premises.

    4. The question whether the appellant or the firm is the tenant of the premises is a question of fact. A perusal of the judgment under challenge, passed in exercise of power under Section 22 of the Act, shows that the learned Single Judge reappreciated the evidence. In so doing the High Court took note of the factors: that under the terms of the agreement of tenancy between the appellant and the previous landlady he was permitted to carry on the business of a partnership; that the amount of rent was being paid by the appellant before the constitution of the firm (however, it is also noted that thereafter the partnership firm was paying the rent); that the eviction petition was not filed on the ground of sub-tenancy; and that maintainability of the application was not put in issue by the respondents.

    5. Taking the last ground first, a perusal of the order of the learned Principal Rent Controller shows that Issue 1 is the relevant issue and it reads as follows:

    “(1) whether it is the respondent or the firm Brij Mohan Chokkani and Sons who is the tenant of the suit premises?”

    6. It is clear that the question: who the tenant of the premises is, has been in issue and has fallen for consideration at all the stages of the case. Therefore, the High Court is not correct in proceeding on the assumption that the point was not put in issue. In regard to the terms of the rental agreement between the appellant and the erstwhile landlady, it is true that the appellant was permitted to carry on business of a partnership consisting of himself and members of his family but there exists a clear distinction between an individual tenant carrying on a business of partnership in the premises and a partnership firm being the tenant of the premises. Granting permission to the appellant to carry on partnership business does not per se foreclose the question whether the partnership firm is the tenant of the premises. It is true that by mere paying the rent, a person does not become the tenant and that fact, without anything more, will not be the determinative factor to hold that the payer of the rent is the tenant because more often than not an agent, a servant or a family member of the tenant also pay the rent for the tenant. Even before the purchase of the premises by the respondents the firm was paying the rent to their vendor; receipts for the rent were being issued in favour of the firm by her. By the conduct of the parties — the firm and the vendor of the respondents — the firm had already become the tenant of the premises before purchase of the said building. This fact explains as to why the attornment of tenancy of the firm and not of the appellant was made in favour of the respondents. Even after the purchase of the premises by the respondents, they continued to receive the rent of the premises regularly from and issue receipts in favour of the firm. It was nobody's case that the firm was the sub-tenant, as such, not filing eviction petition on the ground of sub-letting is an extraneous factor.

    7. There can be no controversy about the position that the power of the High Court under Section 22 of the Act is wider than the power under Section 115 CPC. Nonetheless, the High Court is exercising the revisional power which in its very nature is a truncated power. The width of the powers of the revisional court cannot be equated with the powers of the appellate court. In examining the legality and the propriety of the order under challenge, what is required to be seen by the High Court is whether it is in violation of any statutory provision or a binding precedent or suffers from misreading of the evidence or omission to consider relevant clinching evidence or where the inference drawn from the facts proved is such that no reasonable person could arrive at or the like. It is only in such situations that interference by the High Court in revision in a finding of fact will be justified. Mere possibility of a different view is no ground to interfere in exercise of revisional power. From the above discussion, it is clear that none of the aforementioned reasons exist in this case to justify interference by the High Court.

    8. For these reasons, we are unable to sustain the impugned order of the High Court. In our view, the Appellate Authority, after exhaustive consideration, has rightly confirmed the finding of the learned Principal Rent Controller that the appellant was not but the firm was the tenant of the premises, which did not warrant interference by the High Court. That being the conclusion, the eviction petition against the appellant is not maintainable. In the view we have taken, we consider it unnecessary to go into other aspects of the case.

    9. In the result the order of the High Court, under challenge, is set aside and the eviction petition filed by the respondents is dismissed. The appeal is accordingly allowed, but in the circumstances of the case, without costs.

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    Comments

    Harshavardhan Chokkani v. Bhupendra N. Patel And Others
    (Feb 28, 2002)