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Smart Summary

Factual and Procedural Background

The landlord-petitioner filed a petition challenging the order of the Appellate Authority, Hoshiarpur, dated 13th September 1976, which set aside the Rent Controller's order directing the ejectment of the tenant, Vishwanath. The landlord sought ejectment on the ground that Vishwanath had sublet the entire shop premises to Sarv Lal without the landlord's written consent. The respondents contended that they were members of a Joint Hindu Family conducting joint business, and thus no tenancy transfer had occurred.

The Rent Controller framed several issues including whether the tenancy was transferred without consent, whether the tenant impaired the value of the shop, and whether the tenant ceased occupying the premises. The Rent Controller found that subletting had occurred and ordered ejectment. However, the Appellate Authority reversed this finding on the ground that no positive evidence of subletting was presented and the premises were in possession of the tenant's father. The landlord challenged this reversal in revision before the Court.

Legal Issues Presented

  1. Whether the tenant Vishwanath transferred his tenancy rights of the shop to his father Sarv Lal without the landlord’s consent, amounting to subletting?
  2. Whether the Appellate Authority erred in reversing the Rent Controller’s finding of subletting in absence of positive evidence?
  3. Whether the plea of Joint Hindu Family business raised by the respondents was sufficiently proved to negate subletting?

Arguments of the Parties

Landlord's Arguments

  • Tenant Vishwanath has established residence and business elsewhere, which shifts the burden on the tenant to prove the capacity in which his father occupies the disputed premises.
  • The plea of Joint Hindu Family business was not proved on record, nor was any finding given by the Appellate Authority supporting it.
  • Vishwanath and his family are not parties to the rent deed and cannot be deemed co-tenants; thus, subletting is fully established.
  • The Rent Controller’s order directing ejectment should be restored.

Tenant's Arguments

  • Given the father-son relationship, subletting should not be inferred; rather, it should be presumed that the occupation by the father was by way of license.
  • Relied on precedents such as Gugan Mal v. Moti Lal Chand Mal (1962 64 PLR 372), Om Parkash v. Jugal Kishore (1971 R.C.J 871), Dev Dutt Verma v. Ajit Singh (1965 Cur. L.J 341), Shiv Parshad v. Brij Lal (1966 68 PLR 419), and V.N Puri v. Bishan Lal Aggarwal (1972 R.C.J 703) to support the proposition that close familial relationships negate presumption of subletting.
  • Submitted that if the Appellate Authority’s conclusion is possible on the evidence, the Court should not interfere in revisional jurisdiction.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gugan Mal v. Moti Lal Chand Mal (1962 64 PLR 372) Presumption against subletting in cases of close familial relationships. Referenced by tenant’s counsel but court found facts distinguishable and not applicable.
Om Parkash v. Jugal Kishore (1971 R.C.J 871) Non-interference in revisional jurisdiction where appellate conclusion is possible. Tenant relied on this to argue against interference; court noted but found appellate approach flawed.
Dev Dutt Verma v. Ajit Singh (1965 Cur. L.J 341) Support for non-presumption of subletting among close relations. Cited by tenant but court distinguished facts.
Shiv Parshad v. Brij Lal (1966 68 PLR 419) Similar principle on familial relationship and tenancy. Tenant relied upon; court found facts not analogous.
V.N Puri v. Bishan Lal Aggarwal (1972 R.C.J 703) Close relationships negate presumption of subletting. Referenced but distinguished by court on factual basis.

Court's Reasoning and Analysis

The Court analyzed the evidence and found that the tenant Vishwanath had permanently settled and was running a shop elsewhere, while the disputed premises were occupied by his father Sarv Lal. The tenant’s assertion that the premises were part of a Joint Hindu Family business was not supported by any evidence, including the absence of Sarv Lal’s testimony. The Court emphasized that once the landlord proves that the tenant is not in possession and someone else occupies the premises, the burden shifts to the tenant to prove the capacity in which the premises are occupied.

The Appellate Authority’s reversal of the Rent Controller’s finding was criticized for lacking discussion of evidence and for erroneously requiring positive evidence of subletting rather than recognizing the presumption arising from the tenant’s absence. The Court held that the plea of license was not pleaded and could not be accepted at this stage. The familial relationship alone does not preclude subletting if the tenant fails to prove joint business occupancy. The Court concluded that the tenant had effectively sublet the premises to his father, warranting ejectment.

Holding and Implications

The Court allowed the landlord’s petition, set aside the Appellate Authority’s order, and restored the Rent Controller’s order directing ejectment of the tenant. The respondents were granted three months to vacate the premises subject to payment of arrears and advance rent within 15 days.

This decision directly affects the parties by reinstating the ejectment order but does not establish a new precedent beyond affirming the burden-shifting principle in tenancy disputes involving alleged subletting within close family relations.

    Banta Singh v. Vishwa Nath Dogra And Another

    J.V Gupta, J.:— The landlord-petitioner has filed this petition against the order of the Appellate Authority, Hoshiarpur, dated 13th of September, 1976, whereby the order of the Rent Controller directing the ejectment of the tenant had been set aside and consequently the ejectment application was dismissed. The landlord sought the ejectment of his tenant Vishwanath inter alia on the ground of subletting from the premises which consisted of a shop situated at Hoshiarpur. It was stated in the ejectment application that Vishwanath had transferred his rights under lease of the entire shop to Sarv Lal and had sublet the same without the written consent of the landlord. In the joint written statement filed on behalf of both the respondents, it was stated that the respondents are father and son being members of the Joint Hindu family inter se and with others had joint business and as such the question of transfer of tenancy did not arise.

    2. On the pleadings of the parties, the Rent Controller framed the following issues:—

    1. Whether the respondent No. 1 has transferred the tenancy of the shop to respondent No. 2 without the consent of the petitioner-landlord? OPA.

    2. Whether the respondent No 1 has committed acts mentioned in para No. 2, sub para No. 3 to 6, and had impaired materially the value and utility of the shop in dispute? OPA

    3. Whether the respondent No. 1 has ceased to occupy the shop in dispute, continuously for more than four months prior to the institution of the present petition? OPA

    4. Whether the petitioner has been refusing to accept the payment of rent when offered by the respondents? OPA

    5. Relief.

    3. On issue No. 1, the Rent Controller came to the conclusion that the tenant Vishwanath had, after the commencement of this Act without the written consent of the landlord, transferred his rights under the lease in demised building and consequently the issue was decided in favour of the landlord. Issue No. 2 was found against the landlord and in favour of the tenant. The other issues were found in favour of the tenant, but in view of the finding on issue No. 1. an order of ejectment was passed against the respondents. In appeal the finding on Issue No. 1 was reversed by the Appellate Court. It has been observed that “I see merit in the arguments adduced from the side of the counsel for the appellant that no presumption of sub-letting etc. could be drawn against the appellants, when there was no positive evidence regarding sub-letting and the premises in dispute was in possession of his own father respondent No. 2”. Feeling aggrieved against this, the landlord has come up in revision to this Court.

    4. The learned counsel for the petitioner vehemently contended that on the admitted facts the tenant Vishwanath has settled in Hariabad and is running his own shop that itself is sufficient to shift the burden on the tenant to prove that under what capacity his father Sarv Lal is occupying the premises is dispute. The plea in the written statement filed on behalf of them jointly that they being members of the Joint Hindu Family inter se and with others had joint business has not been proved on the record nor has any such finding been given by the Appellate Authority particularly when the learned Rent Controller has given a firm finding that Vishwanath has transferred all his rights under the lease in the demised shop, to his father and brothers. They are not a party to the rent deed and as such could not become co-tenants under the landlord. Vishwanath had no control over the shop???in??? dispute. Thus according to the learned counsel, subletting is fully proved and the order of the Rent Controller directing the ejectment of the tenant is liable to be restored.

    5. On the other hand, the learned counsel for the tenant vehemently contended that keeping in view the relationship between the tenant and the alleged sub-tenant being that of father and son, the question of sub-letting could not be inferred. Rather according to the learned counsel, it will be presumed that it was a case of license though it was not so pleaded in the written statement. In support of this contention, he placed reliance on Gugan Mal v. Moti Lal Chand Mal . 1962 64 PLR 372.. He further contended that in any case on the evidence if the conclusion arrived at by the Appellate Authority is possible, this Court should not interfere with the same in the exercise of its revisional jurisdiction. In support of this, he cited a decision in Om Parkash v. Jugal Kishore . 1971 R.C.J 871.. He also referred to the decisions in Dev Dutt Verma v. Ajit Singh . 1965 Cur. L.J 341.; Shiv Parshad… v. Brij Lal…. . 1966 68 PLR 419.; and V.N Puri v. Bishan Lal Aggarwal . 1972 R.C.J 703., in support of the proposition that when the relationship of the parties is so close, no sub-letting can be presumed.

    6. I have heard the learned counsel for the parties at great length. Admittedly no plea of license was taken in the written statement filed on behalf of the respondents jointly. Apart from the plea taken in the written statement that the respondents are the members of the Joint Hindu Family inter se and with others had joint business, there is no other evidence on the record except the statement of Vishwanath tenant, who appeared as RW 4 Even his father, Sarv Lal, had not come into the witness-box to support this assertion made in the written statement. In the cross-examination, he has admitted:—

    “My father used to run separate shop with his brothers but he used to visit this shop every evening. I run the shop at Hariabad and at Hoshiarpur. My family lives at Hariabad permanently but it visits Hoshiarpur also.”

    7. From the evidence of the record, it is the common case of the parties now that the tenant Vishwanath is running the shop at Hariabad and he alongwith his family lives there permanently. Under these circumstances it was for the tenant to prove that the business at Hoshiarpur which is being run by his father in the demised building is Joint Hindu Family business as pleaded in the written statement. If the respondents failed to prove the same, then they cannot be allowed to take the plea at this stage that the premises are occupied by Sarv Lal as a licensee. The authorities relied upon by the learned counsel for the tenant are not applicable to the facts of the present case, and each case is distinguishable.

    8. Apart from that, the whole approach of the Appellate Authority is wrong and illegal. The well considered finding of the Rent Controller on issue No. 1 has been reversed by the Appellate Authority simply on the ground that no presumption of subletting could be drawn against the tenants when there was no positive evidence regarding the sub-letting and the premises in dispute being in possession of his father. In my considered opinion, this approach is wholly wrong and illegal. Of course initially it is for the landlord to prove the sub-letting as alleged by him in the ejectment application, but once it is proved that the tenant is not occupying the premises and the exclusive possession is with somebody else other than the tenant, than in these circumstances, it is for the tenant to prove that in what capacity the premises are being occupied by the said person. Arrangements between the tenant and the said person are only known to both of them. It is for them to plead if it is a case of license being the near relations or to set up a plea of joint business as was pleaded in the present case. Taking into consideration the plea in the written statement and the statement of the tenant Vishwanath before the Rent Controller, it was for him to prove that in what capacity his father Sarv Lal was occupying the premises. It may be that ordinarily if the relationship is that of a father and son subletting may not be presumed but it will depend on the circumstances and facts of each case. The plea of subletting taken by the landlord can be defended only if the tenant could prove that the bussines being run by his father Sarv Lal in the ???e???sed premises was that Joint Hindu Family. If this plea is not proved, than the presumption would be that the premises has been sublet by the tenant as admittedly, he is no longer in occupation of the same as he has settled at Hariabad with his family. It appears that the best evidence to prove that the business was joint has been withheld by the tenant. As observed earlier, even the father has not come into the witness-box to state that the business which was being run by him was a joint family business. Under these circumstances, the only conclusion possible is that the tenant has parted with the rented premises and has handed over the same to his father which under the law will amount to subletting.

    9. It is unfortunate that the Appellate Authority has not discussed the evidence at all on issue No. 1 and has just set aside the finding of the Rent Controller without giving any cogent reasons.

    10. For the reasons recorded above this petition succeeds and the order of Appellate Authority is set aside and that of the Rent Controller directing the ejectment of the tenant is restored with costs. However, the respondents are allowed three months' time to vacate the premises provided all the arrears, if any, and advance rent for three months are deposited with the Rent Controller within 15 days of the order.

    H.L.S
    Petition allowed.

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    Comments

    Banta Singh v. Vishwa Nath Dogra And Another
    (Nov 14, 1980)