Full Judgment Text
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PETITIONER:
RAM SARAN
Vs.
RESPONDENT:
PYARE LAL AND ANR.
DATE OF JUDGMENT: 16/01/1996
BENCH:
RAY, G.N. (J)
BENCH:
RAY, G.N. (J)
NANAVATI G.T. (J)
CITATION:
JT 1996 (1) 441 1996 SCALE (1)458
ACT:
HEADNOTE:
JUDGMENT:
J U D G M E N T
G.N. RAY. J.
Leave granted. Heard learned counsel for the parties.
This appeal is directed against the judgment dated
23.6.1992 passed by a Single Bench of the Himachal Pradesh
High Court in C.R. No.134 of 1992 arising out of judgment
dated 16.5.1990 passed by the Appellate Authority (II),
Solan in Rent Appeal No. 5 NL/14 of 1990/1988 reversing the
order of eviction dated 30.9.1988 passed by the Rent
Controller, Nalagarh in Case No. 6/2 of 1986.
The relevant facts concerning this appeal may be stated
as hereunder. The shop room appertaining to khewat-khatanni
No. Min. 354/498, Khasra No. 734, in Main Bazar, Nalagarh
town is owned by the appellant landlord. The appellant let
out the said shop room to respondent No.1 on 15.7.1973 for a
monthly rental at Rs.140/- excluding water and electric
charges. The said respondent No.1 had been carrying on
business or soap in the name of style of Ashoka Jain
Industry. The landlord filed an application under Section 14
of the Himachal Pradesh Urban Rent Control Act (hereinafter
referred to as the Rent Act) for eviction of respondent No.1
and his sub-tenant respondent No.2 Mahavir Gram Udyog
Samiti, a society registered under the Societies
Registration Act in 1977 on the grounds of arrears of rent
and for sub letting the said premises to respondent No. 2
without consent of the landlord. It was also contended that
the landlord required the suit premises for carrying out
business with the held of land-lord’s son.
The respondent tenant denied the material allegations
of the landlord. According to respondent tenant, the shop
room had not been sublet. But the name of the firm Ashoka
Jain industry had been changed to Mahavir Gram Udyog Samiti.
Such Samiti is a registered society, registered on 10.2.
1977 comprising the tenant and his family members. There had
not been any change in the business which the tenant had
been carrying in the name of Ashoka Jain Industry. The land
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lord being fully aware of the said fact had been accepting
rent from the said Mahavir Gram Udyog Samiti. Accordingly,
the land lord was stopped from seeking eviction on the
ground of subletting. The other grounds for eviction were
also denied by the tenant respondent.
The learned Rent Controller. Nalagarh in Rent Case No.
6/2 of 1986 inter alia came to the finding that the tenant
respondent No.1 had parted with the possession of the said
shop room in favour of the said registered society namely
Mahavir Gram Udyog Samiti and the said samiti was a distinct
legal entity which could sue and be sued in its own name.
The learned Sent Controller had also indicated that or
scrutiny of the memorandum of association of the said
society (Ext. 1/A), it was revealed that the samiti could
include new members and any existing member could be removed
from the membership of the society by 2/3rd or the majority
of general members. Accordingly, the respondent No.1 who was
then a member of the said registered society could also be
removed from the said society. The learned Rent Controller
further held that the tenant respondent No.1 had no
exclusive control and possession of the suit premises which
was being occupied by the said registered society.
The tenant respondent No.1 was also not in a position
to recover possession of the said shop room from the said
registered society. The said registered society being a
besting legal entity did not represent the Ashoka Jain
industries belonging exclusively to the Respondent No.1 and
his son stated to be a partner of the said firm. The Rent
Controller had also found that the tenant respondent No.1
had also not been paying rent on his behalf or on behalf of
Ashoka Jain Industries but on his own admission, he was
paying rent from the funds of registered society in his
capacity as President of the said registered society. As no
lawful sub-tenancy could be created under Section 14 of the
Rent Act without written consent of the landlord,the payment
of rent by respondent No.1 as President of the said
registered society had not created any legal substancy in
favour of the said registered society. The learned Rent
Controller, therefore on a finding that the tenant
respondent No.1 having sublet the said shop room in favour
of a distinct legal entity which had been carrying on its
business activities in the said premises, was liable to be
evicted, passed the order of eviction against the
defendants. The other grounds for eviction were, however,
answered in the negative by the learned Rent Controller.
The tenant respondent No.1 preferred an appeal before
the Appellate Appellate Authority at Solan against the
decision of the Rent Controller. The learned Appellate
Authority however reversed the decision of the learned Rent
Controller and dismissed the eviction suit on the finding
that the respondent No.1 tenant, in order to serve villagers
by promoting village industries, khadi, basic education,
agriculture, breeding of cows and pulls village sanitation
etc. had constituted the said society namely Gram Udyog
Samiti in which he was member of the governing body of the
society and also its President along with other members of
his family as the members of the said society. The case of
the said tenant was that he was carrying on the business of
soap in the suit premises. In the said facts, even if the
said Samiti was carrying on its various activities in the
said premises, the original tenant being in effective
control of the affairs of the said samiti, it could not be
held that he had let out the premises in favour of the said
society. Hence, decree for eviction on the ground of sub-
letting was not justified.
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The landlord appellant thereafter moved the Himachal
Pradesh High Court under Section 21(5) of the Rent Act. The
High Court by impugned judgment has dismissed the revisional
application. The Single Bench of the High Court has
indicated that the Appellate Authority held that in order to
serve villagers of Nalagarh area, the tenant had constituted
a registered society with himself and his family members as
the members or the said registered society and the tenant
had retained control over the functioning of the said
society in which he was President. In the aforesaid facts,
although the said society had been carrying on its business
activities in the said premises it could not be held that
the tenant had lost control and possession over the premises
in question. Hence, the case of sub-letting by the tenant
respondent No.1 it favour of the said registered society
cannot be accented. Being aggrieved by the decision of the
High Court the landlord appellant moved this Court by filing
a special leave petition.
The learned counsel for the appellant landlord has
contended that it is an admitted position that the disputed
shop room was lat out to respondent No.1 tenant in 1972. In
the said shop room he was running business of soap in the
name and style of Ashoka Jain Industries. According to
respondent no.1 himself the said business in the name of
Ashoka Jain Industries is being run by him with the held of
one of his son as a partner. It is also an admitted position
that in 1977 a society, in the name of Mahavir Gram Udyog
Samiti was formed and the said samiti was registered under
the Societies Registration Act, 1977. The said registered
society, according to respondent No.1. was formed for
various beneficial activities of the rural people in the
locality namely for promoting khadi activities, village
industries, basic education, agriculture, breeding of cows
and bulls. The said registered samiti is comprised of a
number of members and the respondent No.1 is also a member
of the registered society. It is also an admitted position
that the said registered society has been carrying on its
various activities from the shop room. It has also
transpired from the deposition of respondent No.1 that he
happens to be the President of the said registered society
and that he is paying rent of the shop room in his capacity
as President of the Samiti and such payment of rent of the
shop room is being made from the fund of the samiti. As a
matter of fact, the respondent No.1 has sought to raise a
plea of stopped against the landlord by contending that as
the landlord accepted payment of rent by the said samiti
through its President, the landlord is stopped from seeking
eviction on the score of unauthorised sub-letting of the
shop room.
The learned counsel for the appellant has submitted
that the Memorandum of Association of the said registered
society has been exhibited in the eviction proceedings and
the learned Rent Controller on scrutiny of the said
Memorandum has come to a specific finding that in terms of
the Memorandum, any member of the society may be removed by
2/3rd majority of the members of the society. Such society
can also admit other members in the society. Noticing such
facts, the learned Rent Controller has rightly held that the
registered society is not only a distinct legal entity which
can sue and be sued but the said distinct legal entity is in
possession of the shop room and carrying on its activities
therefrom. The learned counsel has submitted that it is
immaterial whether the tenant respondent No.1 happens to be
its President at the moment and the members of the said
society are members of his family. The President and members
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of the registered society are not owners of the said firm
Ashoka Jain Industries. The assets of the said registered
society, under the law do not also being to its President or
the members of the society. It is quite possible that the
President and the other members may be removed and new
members may be admitted in the said registered society. In
such facts, the appellant Authority and the High Court erred
in proceeding on the footing that the respondent No.1
himself being President of the said registered society was
controlling the affairs of the society and hence he had not
parted with possession of the shop room.
The learned counsel for the appellant has further
contended that the Respondent No.1 has sought to make out a
case as pleaded in the written statement that the name of
Ashoka Jain Industries has been changed to Mahavir Gram
Udyog Samiti and the said Samiti with more members of the
family are carrying on the old business of Ashoka Jain
Industries. Such case of the Respondent No.1 has been
established to on false because Mahavir Gram Udyog Samiti is
a different legal entity and on the face of the admission of
the tenant respondent No.1. the said registered society is
connected with diverse activities for the alleged welfare of
rural population and the same is not carrying the personal
business of the respondent No.1.
The learned counsel has submitted that the very fact
that a distinct legal entity has been possessing the shop
room and carrying on its activities in the said shop room
makes it abundantly clear that the respondent No.1 has
parted with possession of the said shop room in favour of
the said registered society. It has been submitted by the
learned counsel for the appellant that not only such
possession of the shop room has been handed over to the said
registered society but the respondent No.1. on his own
admission, is not paying rent for the shop room but the sub-
lessee is paying rent through its President. Hence, a case
of sub-lease which is admittedly without written consent of
the landlord, has been clearly established.
In this connection, the learned counsel for the
appellant has referred to the decision of this Court in Roop
Chand versus Gopi Chand Thela (1989 (2) SCC 383). In the
said case, a club registered under the Companies Act had
been in possession of the substantial portion of the shop
room and had been carrying on its activities. The tenant was
also in possession of a part of the said premises. The
Courts below held that the tenant was not in exclusive
possession of the said premises but had parted with
possession in respect of a substantial portion of the same
in favour of the club. Hence, even if sub-lease on payment
of rent could not be established, such parting of exclusive
possession would amount sub-lease within the meaning of
section 13(1)(e) of Rajasthan Premises (Control of Rent and
Eviction) Act. This Court has upheld such finding of the
courts below by indicating that clause (e) of Section 13(1)
of the said Act provides that a tenant would render himself
liable for eviction if he has assigned, sub-let or otherwise
parted with the possession of the whole or any part of the
premises without the permission of the landlord.
The learned counsel has also referred to another
decision of this Court in M/s Shalimar Tar Products Ltd.
versus H.C. Sharma (AIR 1988 SC 145). In that case question
of sub-letting under Delhi Rent Control Act came up for
consideration. In that case, the tenant allowed a club
registered under the Companies Act to carry on its
activities in a major portion of the tenanted premises. The
tenant himself was also a member of the said club and
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according to tenant he has also carried on his business from
a portion of the tenanted premises. The courts below held
that by parting with possession exclusively in favour of the
said club in a major portion of the said premises, a sub-
lease was constituted in favour of the club. Accordingly,
decree of eviction was passed. The High Court also upheld
such finding. It has been indicated by this Court that in
the context of exclusive possession of substantial portion
of tenanted premises by the club which had carried on its
own activities, the finding of the courts below that a case
of sub-lease was made out, is wholly justified. The learned
counsel for the appellant has submitted that even if it is
assumed that the tenant respondent No.1 had really carried
on his soap business in a portion of the suit premises, the
admitted fact remains that a distinct legal entity namely a
registered society had been given exclusive possession of a
portion of the tenanted premises for carrying on its diverse
activities and such registered society admittedly had been
claiming an independent right to hold the disputed premises
as tenant by paying rent for the said premises through its
President. Hence, the finding by the Rent Controller that
the tenant had sub-let the said premises is wholly justified
and the decision of this Court in Shalimar’s case (supra) is
applicable in all fours. The learned counsel has submitted
that the impugned order should be set aside by affirming the
order of eviction passed by the Rent Controller.
The learned counsel for the respondent has however
refuted the contentions of the learned counsel for the
appellant. It has been contended by the learned counsel that
the tenant respondent No.1 has not parted with possession of
the suit premises in favour of Mahavir Gram Udyog Samiti.
The case of the tenant is that the tenant is still carrying
on the business of soap in the said premises but in his
anxiety to ensure service to the rural copulation of the
locality he had formed a registered society some time in
1977 with himself and his family members for undertaking
various beneficial activities for the rural population.
There has not been any assignment of the tenanted premises
or any part thereof the said society. There has not been any
payment of rent by the said society to the respondent No.1
tenant. As a matter of fact the activities of the firm are
now being discharged by the said society in a bigger way
with additional members of the family. The tenant being the
President of the said society is controlling the affairs of
the said society. Even if it is assumed that the said
society being a distinct legal identity, its possession can
not be held to be the possession of the tenant respondent
No.1 despite his being President of the said society, in the
absence of any evidence as to letting out any portion of the
said premises to the said society on acceptance of rent, it
should be held that the said society is in permissive
possession of the said premises. As the tenant has not
parted with possession of the said premises or any portion
thereof by allowing the said society to possess the same in
exclusion of the respondent No.1, no case of sub-tenancy can
be made out. Accordingly, the Appellate Authority has
rightly held that the case of sub-tenancy can not be
accepted. Such finding of the Appellate Authority being
wholly justified in the facts of the case, has been upheld
by the High Court.
The learned counsel for the respondent has submitted
that the landlord has not discharged the onus to prove sub-
tenancy. The landlord has adjoining shops and one of such
shops is in his possession. Such fact has been admitted by
the land lord in his deposition. The registered samiti was
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formed in 1977 and the said Samiti had been carrying on its
activities openly in the said shop room. The landlord has
also been accepting rent from the said Mahavir Gram Udyog
Samiti through respondent No.1 who is the President of the
said samiti. In the aforesaid circumstance, the landlord
with full knowledge has allowed the said samiti to remain in
possession of the suit premises and having acknowledged the
possession in the said samiti, has allowed the said samiti
to pay rent of the said premises in its name through
respondent No.1, A decision of this Court in A.S. Sulochana
versus C. Dharmalingam (1987 (1) RCC 213) has been referred
to by the learned counsel. This Court has indicated in the
said case that if a sub-tenant has remained in possession
openly for 18 years and if the landlord has not taken any
objection for such long possession as sub-tenant, it would
give rise to inference that the said tenancy was not
unlawful and the tenant should not be evicted on the ground
of sub-letting. The learned counsel has been occupying the
tenanted premises and has been carrying on its diverse
activities. The landlord with knowledge of such activities
of the samiti has not raised any objection for a number of
years and only in 1986 the eviction suit was instituted by
him. In the aforesaid facts, such long possession openly by
the said samiti will raise a reasonable inference that the
sub-tenancy is not unlawful.
The learned counsel for the respondent has also
contended that the respondent No.1 was inducted as a tenant
and the said tenant had been carrying on business in the
name and style of Ashoka Jain Industries with a son a
partner. The said partnership firm had only changed its
nomenclature by forming a registered society in the name of
Mahavir Gram Udyog Samiti. Since the activities of the firm
were being carried in a new form, it should be held that for
all practical purposes, the old firm of the tenant was there
and there has not been any sub-letting simply because form
of the legal entity and the name were changed. In support of
such contention, reliance has been placed on a decision of
this Court in Madras Bangalore Transport Company versus
Inder Sen (1986 (3) SCC 62). In the said case, a partnership
firm was carrying on business of transport as a tenant in
the disputed premises. In order to circumvent a ban on the
partners to operate transport business in a particular area,
a private limited company was formed with the partners as
Directors of the said company. The firm was appointed as
Agent of the Company and the company was appointed as agent
of the firm. The firm allowed the said company to operate
from the tenanted premises along with it. Both the company
and the firm had their sign boards at the premises and both
of them were registered under the Shop and Establishment Act
as having their offices in the disputed premises. In the
aforesaid peculiar facts., this court has held that there
was no sub-letting, assignment or parting with possession of
the premises in question by the firm to the Limited Company.
This Court has held that in the facts of that case, the firm
continued to be in possession of the premises even after the
Private Limited Company came into existence. The firm never
effaced themselves. The firm allowed the said Private
Limited Company to function from the same premises but the
Private Limited Company though a separate legal entity was
fact a creation of the partners of the firm and was the very
image of the firm. The Limited Company and the partnership
firm were two only in name but one for practical purposes,
there was substantial identity between the Limited Company
and the partnership firm. As such, even though the firm and
the Company were distinct legal entities, there was no sub-
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letting or assignment etc. In our view, the decision in
Madras Bangalore Transport Company’s case has no application
in the facts of this case. The Ashoka Jain Industries and
Mahavir Gram Udyog Samiti are not only two separate legal
entities, their composition are different and nature of
activities are also not the same. The Ashoka Jain Industries
is concerned with soap business but admittedly the samiti is
concerned with various diverse activities including breeding
of cows and bulls. The firm is also not the agent of the
society and vice versa. The society can not be held to be a
creation of the said firm or image of the said firm.
Moreover in the written statement, it has been specifically
averred that the society and not the firm was paying rent
through its President for the suit premises.
The learned counsel for the respondent has also
referred to decisions in Vishwanath versus Chaman Lal (AIR
1975 Delhi 117), since referred to with approval in the
decision of this Court in Madras Bangalore Transport
Company’s case (supra). In Vishwanath’s case, Vishwanath
took tenancy and was carrying on business in the name of M/s
Interads International Advertising Agency Pvt. Ltd. The
tenant converted his firm as Interads Advertising Pvt Ltd
and landlord issued rent receipts in the name of the
Interads Advertising Pvt. Ltd. In such circumstances High
Court negatived the finding of Rent Controller that the
tenant had sublet the premises. The learned counsel has also
relied on the decision in M/s Associated Tube Well Ltd.’s
case (1984 (2) Rent Control Report 449) by contending that
the said decision was approved in Madras Bangalore Transport
Company’s case (supra). In M/s Associated Tube Well Ltd.
Company’s case, the said M/s Associated Tube Wells Ltd took
out tenancy with a right to sublet. The sub-letting was in
favour of M/s Clearing House and Agencies Pvt. Ltd. The
original tenant surrendered its tenancy and as such direct
relationship of landlord and tenant was created after such
surrendering of tenancy. In such circumstances, the case of
sub-letting as alleged by the landlord was disallowed. In
our view, both the said decisions have no application in the
facts of this case. In Vishwanath’s case only the name of
the business was changed and in the second case, there was a
provision for sub-letting and original tenant having
surrendered, by payment and acceptance of rent between the
landlord and sub-tenant a new tenancy directly in favour of
the sub-tenant was created.
The learned counsel for the respondent has submitted
that in order to establish sub-tenancy, exclusive possession
of the alleged sub-tenant with tenant retaining no control
of the premises should be established. The other ingredient
of sub-tenancy is that right to occupy the premises must be
in lieu of payment of some compensation or rent. In support
of the said contentions, reliance was made to the decision
of this Court in Dipak Banerjee versus Lilabati Chakraborty
(1987 (1) SCC 161. The learned counsel has submitted that
the respondent No.1 has retained possession of the premises
wherein he carries on the business of soap and he has not
carted with possession on acceptance of any consideration
from the said samiti. Hence, no case of sub-tenancy can be
lawfully held against the respondent. He has submitted that
in the aforesaid facts, the appeal should be dismissed with
cost.
After giving careful consideration of the facts and
circumstances of the case and the submissions made by the
learned counsel for the parties it appears to us that the
respondent No.1 took out the tenancy of the shop room in his
personal capacity in July 1973 and he had been carrying on
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business of soap in the name and style of Ashoka Jain
Industries. It is the case of the respondent No.1 that one
of his sons also became partner of the said firm Ashoka Jain
Industries. Latter on, in the year 1977, a society in the
name Mahavir Gram Udyog Samiti was formed and registered
under the Societies Registration Act. Such society,
according to case of respondent No.1. comprises of a number
of members drawn from the family of the respondent No.1 and
including himself. Admittedly, such society has been formed
not for carrying on the said family business of the
Respondent No.1 but for alleged diverse activities alleged
to be beneficial for the rural population in the locality
namely khadi activities, agriculture, breeding of cows and
pulls etc. etc.
It is an admitted position that the said registered
society has been carrying on its diverse activities in the
said shop room. At the relevant time, respondent No. 1 was
the President of the said registered society and therefore
had occasion to control and regulate the activities of the
said society. It appears that the aforesaid fact of
regulating the activities of the said society by the
respondent No.1 in his capacity as the President of the said
society, has weighed with the learned Appellate Authority in
coming to the finding that the said respondent No.1 has
retained his possession of the said shop room. But, in our
view, the Appellate Authority has failed to notice that the
registered society is a distinct legal entity. Its assets
and liabilities belong to the said society which can sue and
be sued in its name. The learned Rent Controller has rightly
indicated that from the memorandum of association of the
said registered society, which has been exhibited in the
eviction case, it clearly transpires that any member may be
removed and new members may be taken in the society by the
decision of 2/3rd majority of members. It is, therefore, not
unlikely that in course of time, the respondent No.1 or
their family members may not be members of the said
registered society and such society may be run by a
completely different group of persons. It is therefore
immaterial whether at the time of trial of the eviction
proceedings, the respondent No.1 had been controlling the
affairs of the said registered society in his capacity as
its President.
It may be indicated here that it is not the case of the
respondent No.1 that the said registered society was allowed
to possess the tenanted premises for carrying on its diverse
activities only as a licence of the respondent No.1 or of
the said firm Ashoka Jain Industries. On the contrary, the
specific case made out by the respondent No.1 in his written
statement is that the firm Ashoka Jain Industries has been
changed to the registered society in the name of Mahavir
Gram Udyog Samiti and the said society is occupying the
tenanted premises and carrying on its various activities
from the said premises by asserting its independent right as
a tenant. As a matter of fact, the respondent No.1 has
averred in the written statement that the said registered
society has been paying rent for the tenanted premises not
on behalf of the respondent No.1 or the said Ashoka Jain
Industries but on its own behalf through its President,
namely, the respondent No.1. On account of such assertion of
independent status of tenancy by the said registered
society, a case was sought to be made out by the respondent
No.1 that the landlord having accepted rent tendered in the
name of the said registered society is stopped from seeking
eviction of the respondent No.1 and the said society on the
ground of sub-letting.
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It appears to us that the respondent No. 1 in an
attempt to show that he had not completely parted with
possession of the said shop room in favour of the registered
society also stated that he had been carrying on his soap
business in the said premises, Such case, in our view,
should not be accepted. The Respondent No.1 has clearly
stated in the written statement that the firm Ashoka Jain
Industries was changed to a registered specify and the said
registered society is carrying on its activities in the shop
room by asserting its status as a tenant. The activities of
the registered society can not be held to be personal
activities of the respondent No.1 or the alleged partnership
business of the firm Ashoka Jain Industries. Even if it is
assumed on the face value of the assertion of respondent
No.1 that he is also carrying on his soap business in the
disputed premises, in the context of the written statement
of the respondent No.1. it only follows that the said
registered society is possessing the tenanted premises by
asserting its independent status as tenant by tendering rent
in its own name through its President and the said
respondent No.1 is in permissive possession under the said
society in a portion of the tenanted premises for carrying
on his personal business of soap. In any event, it is quite
evident from the case made out by the respondent No.1 in the
written statement that he has surrendered his right of
tenancy in favour of the registered society and has
delivered exclusive possession of the tenanted premises in
favour of the said registered society which is occupying the
same by asserting a right of tenancy. Hence, a case of lease
without the written consent of landlord as required under
Section 14 of the Rent Act for creating a valid assignment
of sb-tenancy has been clearly established. Unfortunately,
such position in law which is apparent from the case made
out by the respondent No.1 has been lost sight of both by
the learned Appellate Authority and by the High Court.
So far as payment of rent by respondent No.1 dua
President of the said registered society and acceptance of
such rent tendered on behalf of the registered society by
the landlord with knowledge of the possession of the said
shop room by the said society are concerned, it may be
stated that the tenancy of respondent No.1 had not been
surrendered and such surrender of tenancy has not been
accepted by the landlord. If upon accepting the surrender of
tenancy of the said tenant, occupation of a new tenant is
acknowledged by the landlord by accepting payment of rent
from the new tenant, then by such payment and acceptance of
rent between the tenant and landlord, a new tenancy may be
created. By a unilateral action of the tenant of
surrendering his right of tenancy in favour of a third party
by delivering possession of the tenanted premises to the
said third party, no new tenancy is created which may
legally bind the landlord. By mere acceptance of rent for
the tenanted premises tendered by the tenant in the name of
the registered society, neither a new tenancy or a valid
sub-tenancy in favour of the said registered society has
been created. In this connection, reference may be made to a
decision of this Court in Hiralal Kapur versus Prabhu
Choudhury (1988 (2) SCC 172). In the said case rent was paid
by two cheques, one drawn by the tenant himself for a part
of the rent, the other was drawn by the sub-tenant for the
remaining part of the rent. It has been held by this Court
that the landlord was entitled to rent (Rs.600/-p.m.) and so
long he got this amount, it was immaterial for him whether
the amount was paid in lumpsum or by one cheque or more than
one cheque and who the makers of the cheque were. In that
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case, a number of cheques given to the landlord were
returned dishonored and the landlord wrote to the tenant in
which he specifically referred that five cheques were given
by the sub-lessee. Even then, it has been held by this Court
that such fact will not improve tenant’s position at all for
it only evidences the fact that the landlord was receiving
the cheque issued in the name of the sub-lessee in discharge
of the tenant’s obligation to pay rent for the tenanted
premises.
The Rent Act is a special statute governing and
regulating tenancy and sub-tenancy. Such provisions in the
special statute supersede the general law of tenancy if the
provisions of the special statute are incompatible with the
general law of tenancy. Under Section 14 of the Rent Act,
mere knowledge of the landlord about occupation of the
tenanted premises by the said registered society and
acceptance of rent for the tenanted premises tendered by the
tenant in the name of the registered society, will not
create a sub-tenancy unless induction of a sub-tenant is
made with the written consent of the landlord. It is
nobody’s case that the landlord has given any written
consent for induction of sub-tenant. There is no estoppel
against statute. Hence, even if the landlord has accepted
payment of rent for the disputed premises from the said
society, such acceptance of rent will not constitute legal
and valid sub-tenancy in favour of the registered society.
Consequently, landlord will not be stopped from claiming
eviction of unauthorised sub-tenant along with the tenant
for indulging in inducting sub-tenant without lawful
authority.
We, therefore, allow this appeal and set aside the
impugned order of the High Court and affirm the order of
eviction passed against the respondent by the learned Rent
Controller. Nalagarh in case No. 6/2 of 1986. As the
eviction case is pending for a long time, it is directed
that the execution proceedings should be expedited. There
will be, however, no order as to cost in this appeal.