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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • S.11 (2) and S.11 (4) (i) of the Kerala Buildings (Lease and Rent Control) Act (for short'the Act').
  • Rent Control) Act, 25 of 1949.
  • TRANSFER OF PROPERTY ACT
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • S.11 (2) and S.11 (4) (i) of the Kerala Buildings (Lease and Rent Control) Act (for short'the Act').
  • Rent Control) Act, 25 of 1949.
  • TRANSFER OF PROPERTY ACT
Smart Summary

Factual and Procedural Background

The revision petitioner filed B.R.C.O.P. No. 87 of 1971 before the Rent Control Court, Kottayam, seeking eviction of the respondent from a building let out to him. The eviction claim was made under Sections 11(2) and 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act. During the proceedings, rent arrears were paid. The tenant denied sub-letting and transfer of tenancy rights, relying on the dismissal of two earlier petitions (O.P. 79 of 1969 and O.P. 47 of 1970). The Rent Control Court found the petition not barred and held that sub-letting had occurred, ordering eviction. On appeal, the Subordinate Judge found a transfer of tenancy rights in favor of a firm of which the respondent was a partner and held the petition barred due to the earlier dismissals. The District Judge reversed the appellate findings and dismissed the eviction claim. The present revision petition under Section 115 of the Code of Civil Procedure challenges the District Judge’s order.

Legal Issues Presented

  1. Whether there was a sub-lease or transfer of tenancy rights under Section 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act.
  2. Whether the respondent’s partnership in a firm occupying the premises amounts to a transfer of tenancy right entitling eviction.
  3. Whether the eviction petition was barred by previous dismissals of similar petitions.

Arguments of the Parties

Petitioner’s Arguments

  • The petitioner claimed eviction on the basis of an alleged sub-lease to M. R. George of part of the building.
  • There was a transfer of tenancy rights to the firm Abraham John and Co., where the respondent is a partner.

Respondent’s Arguments

  • The respondent denied any transfer of tenancy rights or sub-letting.
  • The permission granted to the firm to use the premises does not amount to transfer under Section 11(4)(i) of the Act.
  • Previous dismissal of two eviction petitions barred the current petition.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gundalapalli Ranganannar Chetty v. Desu Rangiah and others, AIR 1954 Madras 182 Definition of sub-letting requiring transfer of exclusive possession under the Madras Buildings (Lease and Rent Control) Act. The court relied on this precedent to hold that mere partnership using the premises does not amount to sub-letting without transfer of exclusive possession.
Vir Bhavan Aggarwal v. Kunj Lal and another, AIR 1971 Punjab and Haryana 456 Support for the principle that use of premises by a partner firm does not constitute a transfer of tenancy rights. Cited to reinforce the conclusion that permission to a firm where the tenant is a partner does not amount to sub-letting.
Mani Ram v. Satpal Kapoor and others, AIR 1972 Jammu and Kashmir 37 Similar principle regarding sub-letting and tenancy rights in the context of partnership. Used to support the court’s reasoning that no transfer occurs when the tenant remains a partner in the firm occupying the premises.
Tansukhdas Chhaganhl v. Smt. Shambai and another, AIR 1954 Nagpur 160 View that partnership entry constitutes sub-letting as the firm is a distinct legal entity. The court respectfully disagreed with this view, finding it inconsistent with partnership law.
Commissioner of Income-tax, West Bengal v. A. W. Figgis and Co. and others, AIR 1953 SC 455 Legal principle that a partnership firm has no separate legal existence apart from its partners. Applied to conclude that possession by the firm is possession by the partners, negating transfer of exclusive possession.

Court's Reasoning and Analysis

The court examined whether the alleged sub-lease and transfer of tenancy rights under Section 11(4)(i) of the Kerala Buildings (Lease and Rent Control) Act were established. It accepted the findings of the Appellate authority and District Judge that no transfer of exclusive possession occurred regarding the alleged sub-lease, and the permission for sub-letting was not proven to be post-commencement of the Act.

Regarding the tenancy rights transfer to the partnership firm, the court noted that the respondent admitted the firm occupied part of the premises and that the respondent remained a partner. The court relied on authoritative precedent establishing that a partnership firm has no separate legal existence distinct from its partners, and that possession by the firm equates to possession by the partners.

Therefore, allowing the firm to use the premises did not amount to a transfer of exclusive possession or tenancy rights. The court rejected the contrary view that a partnership constitutes a distinct legal entity for this purpose. The court also found no merit in the contention that the appellate finding on sub-lease should stand due to absence of a revision petition by the tenant, as the issue was challenged before the District Judge.

Consequently, the court agreed with the District Judge’s dismissal of the eviction claim and found no need to consider whether the petition was barred on other grounds.

Holding and Implications

The court dismissed the revision petition with costs, thereby upholding the District Judge’s order denying eviction.

This decision directly affects the parties by confirming that tenancy rights were not transferred by virtue of the respondent’s partnership in the firm occupying the premises, and that no eviction order can be sustained on those grounds under Section 11(4)(i) of the Act. The opinion does not establish any new precedent beyond affirming established principles regarding tenancy and partnership law.

    P.J. Jacob v. T.J. Jacob

    1. The revision petitioner filed B. R. C O. P. No 87 of 1971 before the Rent Control Court, Kottayam for evicting the respondent from a building let out to him. The claim for eviction was on grounds mentioned in S.11 (2) and S.11 (4) (i) of the Kerala Buildings (Lease and Rent Control) Act (for short'the Act').

    2. Pending proceedings rent in arrears was paid. In answer to the claim under S.11 (4) (i), the tenant contended that there was no transfer of his right, there was no sub-letting and the petition for eviction was not sustainable in the light of the dismissal of two earlier petitions, O. P. 79 of 1969 and O. P. 47 of 1970. The Rent Control Court held that the petition was not barred but that the sub-lease was true. An order for eviction was accordingly passed. An appeal was filed before the Subordinate Judge as Appellate authority. The Appellate authority held that there was a transfer of tenancy right in favour of a firm of which the respondent was a partner and also that the petition was barred in view of the dismissal of the two earlier petitions filed for the same relief. A revision petition was filed before the District Judge. The District judge reversed the findings of the Appellate authority and dismissed the claim for eviction. Against that order the present revision petition has been filed under S.115 of the Code of Civil Procedure.

    3. The petitioner bases bis claim for eviction under S.11 (4) (i) on:

    (i) an alleged sub-lease to one M. R. George of a portion of the building and;

    (ii) a transfer of the tenancy right in favour of the firm, Abraham John and Co., of which respondent is a partner.

    On the first point, the Appellate authority and the District Judge have come to the conclusion that there was no transfer of exclusive possession and that the permission given to the alleged sub-lease has not been proved to be after the commencement of the Act. It has not been made out that the above conclusions are wrong.

    4. Regarding the transfer of rights to the partnership concern, the respondent has admitted that the firm, Abraham John and Company is occupying a portion of the building. Ext. B9 is the partnership deed. Under its terms, one Abraham John is the Managing partner and the respondent is one of the partners The contention, however, is that the permission granted to the firm to use the premises does not amount to a transfer under S.11 (4) (i) of the Act so as to entitle the petitioner to recover possession of the building.

    5. The point for consideration is whether there is a transfer of the right of the tenant or a sub-lease in a case where the tenant becomes a partner of a firm and the firm carries on business in the building. The point arose before the Madras High Court in the decision in Gundalapalli Rangan annar Chetty v. Desu Rangiah and others (AIR. 1954 Madras 182) a case decided under the Madras Buildings (Lease and Rent Control) Act, 25 of 1949. Justice Subba Rao, who decided the case overruled the contentions of the petitioner-landlord and held that there was no sub-letting. The learned judge observed as follows:

    "It is clear from the aforesaid decisions that there cannot be a sub-letting, unless the lessee parted with legal possession. The mere fact (bat another is allowed to use the premises while the lessee retains the legal possession is not enough to create a sub-lease. S.105 of the Transfer of Property Act defines a lease of immovable property as to transfer of right to enjoy such property. Therefore to create a lease or sub-lease a right to exclusive possession and enjoyment of the property should be conferred on another. In the present case the exclusive possession of the premises was not given to the second respondent. The first respondent continued to be the lessee, though in regard to the business carried on in the premises he had taken in other partners."

    A similar conclusion was arrived at by the Punjab and Haryana High Court in Vir Bhavan Aggarwal v. Kunj Lal and another (AIR. 1971 Punjab and Haryana 456) and by the Jammu ana Kashmir High Court in Mani Ram v. Satpal Kapoor and others (AIR. 1972 Jammu and Kashmir 37). But a different note is seen struck in Tansukhdas Chhaganhl v. Smt. Shambai and another (AIR. 1954 Nagpur 160). A Division Bench of the Nagpur High Court observed:

    " There is no doubt that in the first instance the petitioner alone was the tenant of the premises. If he allowed other persons to enter into partnership alongwith himself to carry on business in those premises he certainly brought himself within the purview of the law prohibiting subletting except with the permission of the landlord. The partnership which the petitioner entered into along with the third parties was clearly a personality in law distinct from that of the petitioner himself."

    With great respect, I am unable to agree with the view expressed by the above decision. As observed by Mahajan J. in the Commissioner of Incometax, West Bengal v. A. W. Figgis and Co. and others (AIR. 1953 SC. 455):

    " under the law of partnership a firm has no legal existence apart from its partners and it is merely a compendious name to describe its partners."

    Possession of the firm is, therefore, possession of the partners. Granting of permission to the firm to conduct business in the building does not amount to transfer of exclusive possession by the respondent to another person. This is so so long as the respondent continues to remain a partner of the firm. The position may be different when he retires from the firm and severs connection therewith. The learned District Judge was, therefore, right in holding that the petitioner is not entitled to an order of eviction under S.111(4)(i) of the Act.

    6. There is no merit in the contention that the finding of the Appellate authority regarding the sub-lease should stand in the absence of a revision petition by the tenant. Para.11 of the order of the District Judge is an answer to the objection. It is also seen that the finding had been challenged before the District Judge.

    7. In the light of the above conclusion, there is no necessity to decide whether the petition for eviction was otherwise not maintainable.

    The revision petition is, therefore, dismissed with costs. Dismissed.

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    Comments

    P.J. Jacob v. T.J. Jacob
    (Feb 23, 1977)