Full Judgment Text
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CASE NO.:
Appeal (civil) 3648 of 2002
Appeal (civil) 3649 of 2002
Appeal (civil) 3650 of 2002
Appeal (civil) 3651 of 2002
PETITIONER:
NALAKATH SAINUDDIN
Vs.
RESPONDENT:
KOORIKADAN SULAIMAN
DATE OF JUDGMENT: 08/07/2002
BENCH:
R.C. LAHOTI & B.N. AGRAWAL.
JUDGMENT:
R.C. Lahoti, J.
Leave to appeal granted in all the petitions.
The suit property is a building situated within the jurisdiction of
Rent Control Court of Kozhikode. The plan of the property shows
that it is a shop with openings on two sides. Though the property is
one, however, it has been numbered by the local authority by
assigning two Door Nos., i.e. Door No.6/481 and 6/482. The small
corner of the shop situated between the openings on the two sides has
been assigned No. 6/482 while the remaining entire shop is assigned
Door No. 6/481. The property was owned by Kunhilakshmi alias
Leelamma and others and held on tenancy by Nalakath Sainuddin, the
appellant, on a monthly rent of Rs.65/-, the tenancy being a single
tenancy for Doors Nos. 6/481 and 6/482. The tenancy had
commenced in the year 1969. Sometime in the year 1972, Door
No.6/482 was sublet by the appellant to the respondent Koorikadan
Sulaiman on a monthly rent of Rs.100/-. On 12.9.1988, the
respondent purchased the entire property (i.e. including both the
Doors) from the then owners of the property. The respondent then
served a notice on the appellant calling upon him to surrender
possession over the property in his possession. The notice was
followed by an application filed by the respondent in the Rent Control
Court for an order directing the tenant to put the landlord in
possession of the building on three grounds, viz., (i) that the appellant
was in arrears of rent, (ii) that the building was bona fide needed for
his own occupation, and (iii) that the respondent occupying only a part
of the building required additional accommodation in occupation of
the appellant for the landlord’s personal use, the grounds as
contemplated respectively by Sections 11(2)(b), 11(3) and 11(8) of the
Kerala Buildings (Lease and Rent Control) Act, 1965 (hereinafter,
’the Act’, for short).
The Rent Control Court negated the availability of grounds
under sub-Sections (3) and (8) of Section 11 of the Act but ordered
the eviction of the appellant on the ground of non-payment of arrears
of rent under Section 11(2)(b). Both the parties preferred their
respective appeals before the Rent Control Appellate Authority. The
appeal preferred by the tenant was dismissed. The appeal preferred by
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the landlord was allowed in part. The eviction of the appellant was
ordered under Section 11(8) of the Act in addition to Section 11(2)(b),
as directed by the Rent Control Court. The dismissal of claim for
eviction under Section 11(3) by the Rent Control Court was upheld by
the Appellate Authority. Feeling aggrieved by the decision of the
Appellate Authority, the tenant preferred a revision under Section 20
of the Act before the High Court. The landlord did not prefer any
revision against the order of the Appellate Authority. In the revision
preferred by the tenant, the High Court has, by its impugned
judgment, upheld the order of eviction under Section 11(2)(b). As to
availability of ground of eviction under Section 11(8), the High Court
has held that the same was not available to the landlord. However, in
the opinion of the High Court, the order for eviction could be
sustained under Section 11(3) of the Act. Accordingly, the High
Court modified the judgment of the Appellate Authority by holding
that in addition to the ground under Section 11(2)(b), the order for
eviction would be sustainable under Section 11(3) of the Act. The
tenant has filed two petitions seeking leave to file appeals by special
leave. The landlord has also filed two petitions seeking special leave
to appeal against the judgment of the High Court and praying for
eviction of the tenant under Section 11(8) of the Act also. However,
in the narration of facts herein we have referred to the status of the
parties as they are arrayed in appeals arising out of SLP(C) Nos.1599-
1600/2001 filed by tenant.
In so far as the order for eviction under Section 11(2)(b) of the
Act is concerned, the learned counsel for the tenant submitted that the
tenant has, as contemplated by Section 11(2)(c) of the Act, deposited
the amount of arrears of rent with interest and cost of proceedings
within the time appointed thereunder, and, therefore, the order for
eviction on that ground is liable to be vacated and that being the
position of law the tenant does not wish to contest the order for
eviction on that ground as in view of the subsequent act of the tenant
the order has ceased to be effective and the dispute in appeal, to that
extent, is rendered academic merely. The validity of the order of the
High Court, in the light of the cross appeals, remains to be tested by
finding out whether the order of eviction can be sustained under
Section 11(3) or 11(8) of the Act.
Shri T.L.V. Iyer, learned senior counsel for the tenant-appellant
has submitted that the Appellate Authority had negated availability of
ground under Section 11(3) of the Act and in view of the landlord
having not preferred any revision to the High Court under Section 20
of the Act disputing the order of the Appellate Authority to the extent
to which the claim under Section 11(3) of the Act was disallowed, the
same had achieved a finality and the High Court did not have
jurisdiction to pass an order for eviction under Section 11(3) of the
Act once the availability of ground under Section 11(8) was also
negated by the High Court. The decree under Section 11(3) of the Act
passed by the High Court deserves to be set aside for this short reason.
Shri P.Krishnamurthy, the learned senior counsel for the
landlord has disputed the correctness of the submission made by Shri
T.L.V. Iyer and urged that a landlord in his capacity as respondent, in
a revision before the High Court preferred by the tenant under Section
20 of the Act, can support the decree by urging availability of a
ground for eviction though decided against him by the order
impugned before the High Court. He also submitted that even
otherwise, the High Court was not justified in holding non-availability
of ground under Section 11(8) of the Act to the landlord and the High
Court ought to have sustained the decree for eviction under Section
11(8) itself for which purpose the landlord has filed appeal by special
leave before this Court. In his reply Shri T.L.V. Iyer, the learned
senior counsel for the tenant submitted that ground under Section
11(8) of the Act was not available to the landlord as the part of the
building which he was occupying was in his capacity as sub-tenant
and not as a landlord. He submitted that in as much as the landlord
was holding shop No.6/482 as sub-tenant while shop No. 6/481 and
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6/482 were both held by the tenant under a single tenancy, in spite of
purchase by the landlord from the previous owner the tenant remains a
tenant in shop No. 6/481 and sub-tenancy of the landlord over shop
No. 6/482 did not come to an end by applying the doctrine of merger.
Shri P. Krishnamurthy, Senior Advocate, appearing for the landlord,
has disputed the correctness of the submissions made by Shri Iyer.
In these cross-appeals two questions arise for decision:- (i)
when an order for eviction is passed on one of the several grounds
urged by the landlord, can the landlord-respondent in a revision filed
by tenant under Section 20 of the Act, support the order for eviction
by disputing correctness of finding, adverse to him, on another ground
for eviction and urging before the revisional court to uphold the
availability of such ground so as to sustain the order for eviction? (ii)
whether on the facts and in the circumstances of the case, the High
Court was justified in holding non-availability of ground for eviction
under Section 11(8) of the Act?
The relevant provisions of the Act are sub-Sections (3) and (8)
of Section 11 and Section 20. The same are reproduced hereunder:-
"11. (3) A landlord may apply to the Rent
Control Court for an order directing the tenant to
put the landlord in possession of the building if he
bona fide needs the building for his own
occupation or for the occupation by any member of
his family dependent on him.
Provided that the Rent Control Court shall
not give any such direction if the landlord has
another building of his own in his possession in the
same city, town or village except where the Rent
Control Court is satisfied that for special reasons,
in any particular case it will be just and proper to
do so:
Provided further that the Rent Control Court
shall not give any direction to a tenant to put the
landlord in possession, if such tenant is depending
for his livelihood mainly on the income derived
from any trade or business carried on in such
building and there is no other suitable building
available in the locality for such person to carry on
such trade or business:
xxx xxx xxx
11. (8) A landlord who is occupying only a
part of a building, may apply to the Rent Control
Court for an order directing any tenant occupying
the whole or any portion of the remaining part of
the building to put the landlord in possession
thereof, if he requires additional accommodation
for his personal use.
20. (1) In cases where the appellate authority
empowered under section 18 is a Subordinate
judge, the District Court, and in other cases the
High Court, may, at any time, on the application of
any aggrieved party, call for and examine the
records relating to any order passed or proceedings
taken under this Act by such authority for the
purpose of satisfying itself as to the legality,
regularity or propriety of such order or
proceedings, and may pass such order in reference
thereto as it thinks fit.
(2) The costs of and incident to all
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proceedings before the High Court or District
Court under sub-section (1) shall be in its
discretion."
As to the first question, Shri Iyer, the learned senior counsel for
the tenant submitted that the revisional jurisdiction can be invoked by
an aggrieved party by putting in issue ’any order’ and the jurisdiction
conferred on the revisional Court is to test the legality, regularity or
propriety of ’such order’ and then to pass a just order ’in reference
thereto’. Emphasizing the words ’such order’ and ’in reference
thereto’, Shri Iyer submitted that the revisional jurisdiction is invoked
by the person aggrieved by such order putting in issue that part of the
order with which he feels aggrieved and, therefore, the revisional
Court can exercise jurisdiction by making a just order touching only
that part of the impugned order which has been put in issue by the
revision-petitioner and that is determinative of the scope of hearing in
revision as also of the subject matter with reference to which the
revisional jurisdiction can be exercised. He further submitted that it
was open for the landlord-respondent to file a revision against that
part of the order with which he felt aggrieved and in the absence of
the respondent having not done so the High Court could not have, in a
revision preferred by the tenant-appellant, interfered with and
reversed that part of the order which was adverse to the respondent.
We do not find ourselves persuaded to agree with the learned senior
counsel for the tenant-appellant.
In Shankar Ramchandra Abhyankar Vs. Krishnaji Dattatraya
Bapat, 1969 (2) SCC 74, it has been held that revisional jurisdiction
partakes the appellate jurisdiction of a superior Court. The right of
appeal is one of entering a superior Court and invoking its aid and
interposition to redress the error of the Court below. Two things
which are required to constitute appellate jurisdiction are : the
existence of the relation of superior and inferior Court and the power
on the part of the former to review decisions of the latter. When the
aid of the High Court is invoked on the revisional side it is done
because it is a superior Court and it can interfere for the purpose of
rectifying the error of the Court below. Subject to limitations placed
on the exercise of revisional jurisdiction, it remains a part of the
general appellate jurisdiction of a superior Court in a wider and larger
sense.
In Major S.S. Khanna Vs. Brig. F.J. Dhillon, (1964) 4 SCR
409, this Court held that when revisional jurisdiction is exercised in
relation to a ’case’ it can also be exercised in relation to a part of a
case. Hidayatullah, J. (as His Lordship then was), in his separate
concurring opinion, compared the revisional jurisdiction of the High
Court with the jurisdiction to issue a writ of Certiorari and held that
the revisional jurisdiction is clearly in the nature of a proceeding on a
writ of Certiorari though His Lordship also pointed out the essential
differences between the two powers. However, His Lordship clearly
opined that the revisional jurisdiction is conferred to keep the
subordinate Courts within the bounds of their jurisdiction and once a
flaw of jurisdiction is found the High Court exercising revisional
jurisdiction need not quash and remit as is the practice in English Law
under the writ of Certiorari but can itself pass such order as it thinks
fit.
In Babulal Nagar & Ors. Vs. Shree Synthetics Ltd. & Ors.,
(1984) Suppl. SCC 128, it was held that once a jurisdiction is
conferred to examine the propriety or impropriety of the order, the
jurisdiction is wide. One meaning assigned to the expression
’propriety’ is ’justice’. A jurisdiction to examine the propriety of the
order or decision carries with it the same jurisdiction as the original
authority to come to a different conclusion on the said set of facts. If
any other view is taken the expression ’propriety’ would lose its
significance.
In Hukumchand Mills Ltd. Vs. The Commissioner of Income
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Tax, Central Bombay, (1967) 1 SCR 463, Section 33(4) of the
Income Tax Act, 1922 came up for the consideration of this Court.
The provision conferred the Appellate Tribunal with power to ’pass
such orders thereon as it thinks fit’. It was urged that the word
’thereon’ restricts the jurisdiction of the Tribunal to the subject matter
of the appeal. This Court held that the Tribunal was conferred with
power to pass such orders as could be passed by the Appellate
Assistant Commissioner whose order was impugned before the
Tribunal. It was further held that in an appeal preferred by the
assessee it was certainly open to the Department to support the finding
of the Appellate Assistant Commissioner on any of the grounds
decided against it.
It was also held in Smt. Gangabai Vs. Vijay Kumar & Ors.,
(1974) 2 SCC 393 __ ’no appeal can lie against a mere finding’ and, if
filed, shall be liable to be dismissed as not maintainable. In Seetaram
& Ors. Vs. Smt. Ramabai & Anr., AIR 1958 MP 221, the Division
Bench consisting of M. Hidayatullah, CJ and P.K. Tare, J., (as their
Lordships were then), considered Clause 21 of the C.P. and Berar
Letting of Houses and Rent Control Order, 1949 which provides for
an appeal being preferred by ’any person aggrieved by an order’ of the
Controller to the Deputy Commissioner who shall decide the appeal.
Eviction was sought for on three grounds but was allowed by the
Controller only on one ground. In an appeal preferred by the tenant
the landlord was not permitted by the Deputy Commissioner to
establish that the other two grounds on which permission was asked
for were wrongly decided. The Deputy Commissioner formed an
opinion that the order of Controller could not be allowed to be
supported by the landlord-respondent before him on any ground
which had been decided against him by the Controller unless an
appeal was filed by the landlord-respondent. The Division Bench
held that ’a person aggrieved’ must be a man against whom a decision
has been pronounced which has wrongfully refused him something
which he had a right to demand. In spite of a ground for an order
having been decided against the landlord, if the operative part of the
order is in his favour, the landlord though a ’person aggrieved’ is not a
’person aggrieved by an order of the Controller’. The landlord could
have felt satisfied therewith and there is no reason why he should have
appealed. Even if a person has a grievance against the finding he
cannot come by way of appeal unless he challenges the order itself
and wants to get it interfered with. Such an interpretation of the
provision is warranted otherwise even if the order is in favour of a
party he would be required to file an appeal against a finding. The
Division Bench held that, in an appeal, the party who has an order in
its favour is entitled to show that the order is justified on some ground
which was decided against it in the Court below and this position of
law is supportable on general principles without having recourse to
Order 41 Rule 22 of the Code of Civil Procedure.
Krishnaswami Ayyangar, J. in his opinion, in Gaddem Chinna
Venkata Rao & Ors. Vs. Koralla Satyanarayanamurthy & Anr. AIR
1943 Madras 698, which is a Full Bench decision, held, interpreting
Order 41 Rule 22 of the CPC, that a party who has succeeded in the
result of a decision in spite of one or more of several grounds urged
by him having been negated, he cannot and need not appeal as regards
the latter grounds however erroneous the decision because there is no
right of appeal to a party who has succeeded. The distinction lies in
supporting or sustaining the decree in one’s favour and in obtaining an
alteration which would give him a further advantage. The latter can
be secured only by an appeal or cross objection.
A Single Bench decision of Madras High Court in K.
Venkataramani Vs. S. Aravamuthan & Ors., AIR 1982 Madras 36, is
directly in point dealing with pari materia provision contained in
Section 25 of the Tamil Nadu Buildings (Lease and Rent Control)
Act, 1960. It was held that where an order for eviction is based on
one of the several grounds, in an appeal preferred by the tenant, the
ultimate decision in favour of the landlord can be supported by the
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landlord without filing an appeal by disputing the correctness of
findings on a ground decided against him and submitting that the
order of eviction should have been rested on that ground as well.
What is true of the appellate jurisdiction is also true of the revisional
jurisdiction under Section 25. The Division Bench decision of
Madhya Pradesh High Court in Seetaram & ors.’s case (supra) was
followed.
We agree with the view taken by the High Courts of Madhya
Pradesh and Madras. We are of the opinion that __
(i) There is no reason to read and interpret Section 20 of
the Kerala Buildings (Lease and Rent Control) Act,
1965 narrowly and limit the scope of revisional
jurisdiction conferred on the High Court thereby;
(ii) Once a revision petition is entertained by the High
Court, whichever be the party invoking the revisional
jurisdiction, the High Court acquires jurisdiction to
call for and examine the records of the authority
subordinate to it. The records relating to ’any order’
and/or any proceedings, are available to be examined
by the High Court for the purpose of satisfying itself
as to the (a) legality, (b) regularity, or (c) propriety of
the impugned order, including any part of the order, or
proceedings. The only limitation on the scope of
High Court’s jurisdiction is that the order or
proceedings sought to be scrutinized must be of the
subordinate authority. Any illegality, irregularity or
impropriety coming to its notice is capable of being
corrected by the High Court by passing such
appropriate order or direction as the law requires and
justice demands;
(iii) ’Any aggrieved party’, the expression employed in
Section 20(1), means a person feeling aggrieved by
the ultimate decision, that is, the operative part of the
order. A party to the proceedings, who has succeeded
in securing the relief prayed for, is not a party
aggrieved though the order contains a finding or two
adverse to him. The respondent can support the order
and pray for the ultimate decision being sustained,
without filing a revision of his own, and for achieving
such end he may seek reversal of any findings
recorded against him. However, if the non-petitioning
party feels entitled to a more beneficial or larger order
in his favour but was allowed a lesser or smaller relief
then to the extent of claiming the more beneficial or
larger relief he should have filed a revision petition of
his own as he was ’an aggrieved party’ to that extent.
There is, therefore, no doubt in the present case that in a
revision preferred under Section 20 of the Act by the tenant laying
challenge to the propriety of the decision of the Appellate Authority
under Section 11(8) of the Act, the landlord could have urged that the
order for eviction could be sustained under Section 11(3) of the Act
also. The High Court has not erred in permitting the landlord to urge
such a plea in the revision filed by the tenant though the landlord did
not file any revision of his own. A landlord who has succeeded in
securing an order of eviction on one of the several grounds urged by
him cannot be said to be a person aggrieved by such order. He cannot
file a revision rather he can feel satisfied with the order. The person
aggrieved is the tenant and in a revision preferred by the tenant it is
only just and equitable that the landlord should be permitted to
support the order of eviction by disputing correctness of the finding
recorded in the impugned order whereby the availability of additional
ground for eviction was negatived. Such a right has to be necessarily
spelled out in favour of the landlord who has succeeded from the court
below else there would be grave injustice.
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The next question is as to the availability of ground for eviction
under Section 11(8) of the Act for the landlord. Section 11(8) of the
Act provides for a landlord occupying (as landlord) only a part of a
building seeking ejectment of the tenant occupying the remaining part
of the building subject to his proving his requirement of additional
accommodation for his personal use. Obviously, if the respondent is
in occupation of part of the building as sub-tenant he cannot have
recourse to Section 11(8) of the Act. However, if his occupation
though having originated as sub-tenant stands enlarged into that of an
owner, and hence a landlord, by virtue of his purchase dated
12.9.1988 he would be entitled to eviction of the tenant under Section
11(8) of the Act. Answer would depend on the question whether the
purchase of interest of the owner in the part of the premises held by
the respondent as sub-tenant results in merger so as to wipe out the
sub-tenancy and convert the nature of occupation of the respondent
into that of an owner. Section 111 (relevant part thereof) and Section
109 of the Transfer of Property Act are relevant for the purpose and
are reproduced hereunder:-
"111. Determination of lease.___A lease of
immovable property determines___
xxx xxx xxx xxx
(d) in case the interests of the lessee and the
lessor in the whole of the property become
vested at the same time in one person in the
same right;
xxx xxx xxx xxx
109. Rights of lessor’s transferee. ___If the
lessor transfers the property leased, or any part
thereof, or any part of his interest therein, the
transferee, in the absence of a contract to the
contrary, shall possess all the rights, and if the
lessee so elects, be subject to all the liabilities of
the lessor as to the property or part transferred so
long as he is the owner of it; but the lessor shall
not, by reason only of such transfer cease to be
subject to any of the liabilities imposed upon him
by the lease, unless the lessee elects to treat the
transferee as the person liable to him:
Provided that the transferee is not entitled to
arrears of rent due before the transfer, and that, if
the lessee, not having reason to believe that such
transfer has been made, pays rent to the lessor shall
not be liable to pay such rent over again to the
transferee.
The lessor, the transferee and the lessee may
determine what proportion of the premium or rent
reserved by the lease is payable in respect of the
part so transferred, and, in case they disagree, such
determination may be made by any Court having
jurisdiction to entertain a suit for the possession of
the property leased."
Merger is largely a question of intention, dependent on
circumstances, and courts will presume against it when it operates to
disadvantage of a party. "Merger" generally is defined as the
absorption of a thing of less importance by a greater whereby the
lesser ceases to exist but the greater is not increased, and rights are
said to be merged when the same person who is bound to pay is also
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entitled to receive. Pacific States Savings & Loan Co. v. Strobeck, 33
P.2d 1063, 1066, 139 Cal.App.427. [See, Words and Phrases,
Permanent Edition, Vol.27, at page 124] A merger, at law, is defined
to be where a greater estate and a less coincide and meet in one and
the same person, in one and the same right, without any intermediate
estate. The less estate is immediately annihilated, or, in the law
phrase, is said to be merged___that is, sunk or drowned___in the greater.
Thus, if there be a tenant for years, and the reversion in fee simple
descends to or is purchased by him, the term of years is merged in the
inheritance. The rule in equity is the same as at law, with this
modification: that at law it is invariable and inflexible; in equity it is
controlled by the expressed or implied intention of the party in whom
the interest or estates unite. (See, Words and Phrases, ibid, p.138).
Merger is founded on the principle that two estates one larger and
one smaller cannot and need not co-exist, if the smaller estate can
in equity, and must in law, sink or merge into the larger estate.
The Transfer of Property Act, 1882 embodies mostly the
principles of justice, equity and good conscience. In view of
codification of such principles in India, the principles of equity shall
stand modified to the extent of provision otherwise in the Transfer of
Property Act. The learned senior counsel for the tenant-appellant
submitted that a merger would not result because out of the property
purchased by the respondent, the then sub-tenant, part is held by the
appellant-tenant as tenant and part is held by the respondent as sub-
tenant and in view of the different nature of the two parts of the estate
there is no coalescence. Secondly, the estate existing in favour of the
appellant-tenant is an intervening estate which would prevent the
union and fusion of estates held by the then owners and the
respondent. The submission, though attractive, does not hold water
on a deeper probe. As we have already stated, the doctrine of merger
stands statutorily incorporated in Clause (d) of Section 111 of the Act
and has to be read along with Section 109 of the Transfer of Property
Act and not in isolation.
The common law rule that a landlord cannot split the unity and
integrity of the tenancy so as to result in possession over a part of the
demised premises being recovered from the tenant does not have
applicability in India because of Section 109 of the T.P. Act which
provides a statutory exception to the rule and enables an assignee of a
part of the reversion to exercise all the rights of the landlord in respect
of the portion respecting which the reversion is so assigned subject, of
course, to the other covenant running with the land. This position of
law stands settled with the decision of this Court in Mohar Singh
(Dead by LRs) Vs. Devi Charan & Ors., (1988) 3 SCC 63 wherein
M.N. Venkatachaliah, J. (as His Lordship then was) speaking for the
Bench consisting of R.S. Pathak, Chief Justice and himself, held that
Section 109 of T.P. Act does away with the need for a consensual
attornment. The attornment is brought about by operation of law.
The severance of the reversion and assignment of the part so severed
do not need the consent of the tenant.
In B.P. Pathak Vs. Dr. Riyazuddin & Ors., AIR 1976 MP 55, a
Division Bench of the High Court of Madhya Pradesh consisting of
Chief Justice P.K. Tare and Justice Shiv Dayal (later, Chief Justice),
took the view on an illuminating survey of judicial opinion that a
transferee of a part of leased property acquires "all the rights" of the
lessor in respect of that part as if it alone had comprised the lease and
a new relationship is created between the transferee and the lessee.
The section creates a statutory attornment substituting, but retaining
the same effect of, the contractual attornment. Title of the assignee is
complete on execution of the deed of assignment and is not postponed
till the notice of the assignment. The Division Bench repelled the
submission that since the lessor could not have terminated the tenancy
of a part of the demised premises by a notice to quit, he cannot
transfer the premises in part and confer such a right on the transferee.
The Division Bench held that the right of ejectment is inherent in
ownership. Therefore, by virtue of Section 109 of T.P. Act such
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transferee is entitled to evict the tenant from the part transferred to
him not only when the lease had been determined before the transfer
but also if it is determined after the transfer in any of the
circumstances mentioned in Section 111. Thus he can terminate by a
quit notice the lease in respect of the property transferred to him.
The Division Bench decision came up for consideration by a
Full Bench of the same High Court in Sardarilal Vs. Narayanlal, AIR
1980 MP 8. Chief Justice G.P. Singh, speaking for the Full Bench,
approved the statement of law in B.P. Pathak’s case and held that
Section 109 of T.P. Act confers a right on the owner to effect a
severance of a lease by his unilateral act and tenancy over a part of the
property leased can be determined by the transferee.
It is, thus, clear that in a lease governed by the provisions of the
T.P. Act or the principles emerging therefrom as applicable in India,
the transfer of a part of leased premises by the owner in favour of the
sub-tenant, holding sub-lease from the tenant, would result in merger.
It will be a strange proposition to urge or to accept that although the
respondent has purchased the reversion in the entire estate consisting
of Doors No.6/482 and 6/483 and the appellant has become the
respondent’s tenant as to both the doors still the respondent continues
to be a sub-tenant of appellant in respect of Door No.6/482. The
respondent cannot be an owner and sub-lessee both and at the same
time. The smaller estate of sub-tenancy shall sink or drown into the
larger estate of ownership as the two cannot co-exist. The sub-tenant,
i.e. the respondent, has not acquired only a share of the landlord
owner’s estate nor an ownership in part confined to sub-tenancy
premises; what he has acquired under the deed dated 12.9.1988 is the
full ownership in the entire premises. The right of reversion vesting
in the then owners, so far as the appellant is concerned, stands fully
and entirely vested in the respondent. There is nothing to hold that the
intention of the parties to the deed dated 12.9.1988 was not to effect a
merger and confer the estate of owner on the sub-tenant (the
respondent). Undoubtedly, on 12.9.1988, the appellant’s estate did
intervene but that is of no consequence in view of Section 109 of the
Transfer of Property Act. The sale deed is not under challenge. There
is nothing to prevent the splitting up of tenancy and resulting in
statutory attornment by the tenant-appellant in favour of the sub-
tenant-respondent on the factum of transfer of full ownership,
including reversion, under the deed dated 12.9.1988 being brought to
his notice which would take effect from the date of the deed. We are,
therefore, of the opinion that on 12.9.1988 the sub-tenancy of the
respondent held under the appellant to the extent of sub-leased
premises terminated by merger and the respondent became the owner-
landlord of the entire premises consisting of two Doors. So far as the
apportionment of rent is concerned, that would depend on consensus
between the owner and the respondent. In the absence of consent or a
dispute arising, the same would be determined by a competent forum
whether the Rent Controller or the Civil Court. The applicability of
Section 11(8) of the Act is squarely attracted and the respondent could
have availed the benefit thereof for evicting the appellant.
For all the foregoing reasons we do not find the decree for
eviction liable to be interfere with. The appeals filed by the tenant are
dismissed. The appeals filed by the landlord are allowed. However,
the appellant is granted four months’ time from today for vacating the
suit premises subject to his clearing all the arrears of rent and filing an
usual undertaking, both within three weeks from today, in the
executing court. No order as to the costs.