Full Judgment Text
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PETITIONER:
SOUTH ASIA INDUSTRIES PRIVATE LTD.
Vs.
RESPONDENT:
S. SARUP SINGH AND OTHERS
DATE OF JUDGMENT:
19/04/1965
BENCH:
SARKAR, A.K.
BENCH:
SARKAR, A.K.
MUDHOLKAR, J.R.
BACHAWAT, R.S.
CITATION:
1966 AIR 346 1965 SCR (3) 829
CITATOR INFO :
R 1988 SC 145 (3,14)
ACT:
Delhi Rent Control Act (Act 59 of 1958), s. 14(1),
Proviso (b)-Scope of
HEADNOTE:
The respondents were the owners of certain premises in
New Delhi. The lessee--a company--of these premises assigned
the lease to the appellant. Alleging that the transfer was
done without their consent, the respondents filed an
application against the lessee and the appellant under s.
14(1) proviso (b) of the Delhi Rent Control Act, 1958, for
recovery of possession. Pending the proceedings, the lessee
went into liquidation and its name was struck off from the
record. The Controller thereafter, passed an order in favour
of the respondents. Having moved unsuccessfully the Rent
Control Tribunal and the High Court, the appellant, appealed
to the Supreme Court contending that: (i) the order made
against the appellant, after the lessee ceased to be a
party, was incompetent, as the only person against whom an
order for recovery of possession can be made under the
clause, is the tenant who assigned the tenancy, and (ii) the
clause in the lease by which the term "lessee" included the
lessee’s assignee operated as a consent by the respondents,
to assign.
HELD: (i) (Per Sarkar, J.). The Act contemplates orders
for recovery of possession also against persons other than a
tenant who has assigned or sub-let without the landlord’s
consent, so that, where the tenant becomes extinct without
leaving any successor, an order can be made against a person
who took an assignment of the lease from the tenant before
the lease became extinct. [833C, D-E]
The proviso expressly states when an order of ejectment
can be made and the clauses of the proviso are not intended
to indicate the persons against whom an order for recovery
of possession could be made, but only the circumstances in
which an order for recovery of possession may be made.
[832E-G]
The expression "the tenant" in cl. (b) is used only to
emphasise that the tenant assigning must be the tenant of
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the landord seeking eviction. So read, the effect of the
clause is that a land-lord can recover possession if his
tenant assigns or sub-lets without his consent. [832H, 833A-
B]
Since the object of the proviso is to enable the
landlord to recover possession in the specified cases,
orders against all "persons in occupation" must have been
contemplated so that the landlord might without further
trouble recover possession. Section 18 plainly implies that
an order for recovery of possession against a sub-tenant is
contemplated by the proviso. Further. the order for recovery
of possession would, under s. 25, be binding on the assignee
or sub-tenant, and therefore, they would be interested in
showing that there was the requisite consent, and hence
would be entitled to be made parties to the proceedings. If
they are thus entitled to be heard to oppose the order of
eviction, such an order could be made against them also.
[833F-G, H; 834C, E, H-835A]
830
Per Bachawat J.(i): Both the tenant and the assignee
were properly parties to the proceedings for possession and
if the tenant company had been dissolved, there is no reason
why the proceedings could not continue against the
assignee alone. [839G]
It is true that other clauses of the proviso contemplate
eviction of the tenant on the ground of some act on the part
of the tenant against whom the proceeding for possession is
brought, but under cl. (b), the assignment is a ground of
eviction of both the assigning tenant and the assignee
and the Controller has jurisdiction to make an order for
possession not only against the assigning tenant but also
against the assignee. [839H-840B]
Per Mudholkar J. (Dissenting)
The right which the respondents possessed to evict the
defunct company from the premises, because the company had
assigned the tenancy to the appellant without the
respondents’ consent could not be availed of by them, and
the appellant could therefore continue in possession. [838B-
C]
The ban against eviction of a tenant in s. 14(1) is
lifted by the proviso only with respect to the tenant and
not to any other person, because, a proviso is subservient
to the main provision. Therefore, the tenant must be a party
to the proceeding right up to the date of making of the
order of eviction. Unless an order is obtained against the
tenant there would be no occasion for pressing in aid s. 25.
Unlike the case of death of or assignment by, a tenant, an
anomalous position results where the tenant happening to be
a company is dissolved during the pendency of proceedings
and cannot be represented by any one, because of a lacuna in
the law: But such lacuna cannot be removed by the Courts
without assuming a power to legislate. [836H, 837F-H]
(ii) Per Sarkar J.: The clause in the lease according to
which "the lessee" includes his assignee, does not lead to
the conclusion that the lessor consented to the assignment.
Besides, the consent contemplated by the proviso is a
direct consent to a contemplated assignment to a
particular assignee. [835F-G]
Regional Properties Ltd. v. Frankenchwerth, [1951] 1 All
E.R. 178, applied.
Per Bachawat J: The consent contemplated by cl. (b) may
be either general or special, but the clause in the lease
would not amount to a consent by the landlord to an
assignment either expressly or by necessary implication.
[840D-E]
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JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 149 of
1965.
Appeal by special leave from the judgment and order
dated May 10, 1963 of the Punjab High Court (Circuit Bench)
in S.A.O. No. 40-D of 1963.
C.B. Agarwala, B.R.L. lyengar, P.N. Chaddha, S.K. Mehta
and K.L. Mehta, for the appellant.
S.T. Desai and Gopal Singh for Harbans Singh, for
respon-dents Nos. 1 & 2.
Gurcharan Singh and Gopal Singh for Harbans Singh, for
respondents Nos. 3 to 5.
831
Sarkar and Bachawat, JJ. delivered separate but
concurring judgments. Mudholkar, J. delivered a dissenting
Opinion.
Sarkar, J. The respondents are the owners of certain
premises in Connaught Circus in New Delhi, which were let
out to Allen Berry & Co. (Calcutta) Ltd. Sometime in 1959
Allen Berry & Co. transferred the lease to the appellant and
put the latter in possession. Alleging that the transfer
had been made without their consent, the respondents made an
application under el. (b) of the proviso to sub-s. (1) of s.
14 of the Delhi Rent Control Act, 1958 to the Controller
appointed under it against Allen Berry & Co. and the
appellant for an order for recovery of possession of the
premises from them. While the application was pending,
Allen Berry & Co. went into liquidation and was in due
course dissolved and its name was, thereupon, struck off
from the records of the proceedings. The Controller later
heard the application and made an order in favour of the
respondents for recovery of possession of the premises from
the appellant alone. An appeal by the appellant to the Rent
Control Tribunal under the Act against this order was
dismissed. The appellant then moved the High Court of
Punjab for setting aside the order of the Tribunal, but
there also it was unsuccessful. It has now come to this
Court in further appeal.
It was contended that the order for recovery of
possession made against the appellant after Allen Berry &
Co. had ceased to be a party to the proceedings, was
incompetent. This contention was based on an interpretation
of the terms of sub-s. (1) of s. 14, the material part of
which is set out below:
S. 14 (1) Notwithstanding anything to the
contrary contained in any other law or
contract, no order or decree for the recovery
of possession of any premises shall be made by
any court or Controller in favour of the
landlord against a tenant:
Provided that the Controller may, on an
application made to him in the prescribed
manner, make an order for the recovery of
possession of the premises on one or more of
the following grounds only, namely:--
(a) ..... ....
(b) that the tenant has, on or after the
9th day of June, 1952, sub-let, assigned or
otherwise parted with the possession of the
whole or any part of the premises without
obtaining the consent in writing of the
landlord;
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The contention of the appellant was put in this way:
The first part of sub-s. (1) of s. 14 puts a complete ban on
recovery of possession from all tenants. The proviso to it
is only an excepting clause and it lifts that ban in the
circumstances mentioned in it. It follows that the proviso.
though it does not expressly mention
832
tenants, permits orders for recovery of possession against
them alone. The tenant in cl. (b) of the proviso means only
the tenant sought to be evicted under the proviso, such
tenant having also to be by the express terms of the clause,
a tenant who has assigned his tenancy. This follows from
the use of the article "the" before the word "tenant" there.
Therefore the only person against whom an order for recovery
of possession can be made under cl. (b) of the proviso to
sub-s. (1) of s. 14 is the tenant who has assigned his
tenancy. No such order can, hence, be made against the
person to whom the tenancy has been assigned. As the
appellant was such a person, no order for eviction could be
made against it. I wish to observe at once that if this
contention is correct--which 1 do not think it is then the
order could never be made against the appellant and the fact
that Allen Berry & Co. ceased to be a party to the
proceedings made no difference in this regard.
The argument of the appellant is really based on the
article "the" prefixed to the word "tenant" in cl. (b) of
the proviso. It is paid that the article clearly indicates
that the only person against whom an order for ejectment can
be made under cl. (b) is the tenant who assigns or sub-lets
or parts with possession of the tenancy without the
landlord’s consent. I am unable to accept this argument.
The proviso expressly states that an order for ejectment can
be made "on one or more of the following grounds" and then
sets the grounds out in the different clauses that follow,
one of which is cl. (b) with which we are concerned. The
clauses, therefore, set out the circumstances in which the
operative part of the proviso is set in motion, that is, the
circumstances in which an order for recovery of possession
may be made. If this is so, as I think it is, the clauses
could not have been intended to indicate the person against
whom an order for recovery of possession could be made.
This purpose was entirely different. 1 am not suggesting
that an order for recovery of possession against the
assigning tenant cannot be made. All that I say is that the
clauses do not intend to indicate the persons against whom
an order for recovery of possession can be made and so it
cannot be argued that the order cannot be made against any
other person.
Now the article "the" appears to me to have been used to
show that the tenant assigning must be the tenant of the
landlord seeking eviction. So read, the effect of the
proviso in cl. (b) is that a landlord can recover possession
if his tenant has assigned. sub-let or transferred
possession without his consent. This would be the natural
reading of the provision and would carry out the intention
of the Act. If this is not the correct reading of the
provision, the situation would be anomalous. As the word
"tenant" includes by virtue of its definition in s. 2(1), a
sub-tenant. it would at least be arguable that el. (b)
authorised a superior landlord to recover possession when
the sub-tenant assigned without his consent. That could not
possibly have been intended for
833
the intermediate tenant would then have lost his tenancy for
no fault of his. Therefore, 1 think the article "the" was
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used only to emphasize that the tenant assigning must be the
tenant of the landlord seeking eviction. The article "the"
does not, in my opinion, lead inevitably to the conclusion
that the only person against whom an order for recovery of
possession can be made on the ground mentioned in el. (b) is
the tenant assigning or sub-letting or parting with
possession of his tenancy without the landlord’s consent.
I think there are good reasons why it must be held that
the Act contemplated orders for recovery of possession also
against persons other than a tenant who has assigned or sub-
let without the landlord’s consent. The offending tenant
must of course go for, as I have said, he is the immediate
tenant of the landlord desiring to recover possession and if
he remains he would be entitled to possession and the
landlord cannot recover possession. But this does not mean
that the order may not also direct the removal from
possession of others along with the immediate tenant when
there is one. The reason for this view I will presently
state. If I am right in what I have said, it will follow
that in a case like the present where the tenant becomes
extinct without leaving any successor on whom the tenancy
devolves, an order can be made against a person who took an
assignment of the lease from the tenant before it became
extinct.
It is trite saying that the object of interpreting a
statute is to ascertain the intention of the legislature
enacting it. When I enquire about the intention behind this
statute, 1 find that far from lending any support to the
appellant’s contention it tends quite the other way. First,
I observe that the object of the first part of sub-s. (1) of
s. 14 is to ban all recovery of possession of tenanted
premises by a landlord and that of the proviso is to lift
that ban in specified cases. The object of the proviso is
then to enable the landlord to recover possession in any of
the specified cases. Assume that the present is a case
where the landlord became entitled to recover possession
under cl. (b) of the proviso; clearly then the statute
intended the landlord to recover possession. It would be
our duty to give effect to that intention unless the
language used made it plainly impossible. I have earlier
said that the language used does not compel the view that
the only person against whom an order for recovery of
possession can be made is the tenant assigning or sub-
letting without the landlord’s consent. That being so,
orders against all "persons in occupation" must have been
contemplated so that the landlord might without further
trouble recover possession. Further find it impossible to
hold that the language used indicates an intention that when
a right has accrued to a landlord to recover possession,
that right would be taken away from him when the tenant
assigning has become extinct without leaving a successor, an
event which is only accidental and certainly rare. A court
would be fully justified in holding that in such a case it
was
834
intended that an order for recovery of possession can be
made against the assignee alone for that would enable the
object of the statute which was to enable the landlord to
recover possession, to be achieved. An interpretation
which defeats the object of a statute is, of course, not
permissible.
Then, looking at s. 18 of the Act I find that it clearly
contemplates an order for recovery of possession under s. 14
against a sub-tenant. It says, "Where an order for eviction
in respect of any premises is made under s. 14 against a
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tenant but not against a sub-tenant referred to in section
17", then in the circumstances mentioned, the sub-tenant
shall be deemed to become a direct tenant under the
landlord. This section plainly implies that an order for
recovery of possession against a sub-tenant is contemplated
by cl. (b) of the proviso to sub-s. (1) of s. 14. The
appellant’s argument to the contrary cannot be sustained
against the clear implication of the Act. If s. 14
contemplates an eviction order against a sub-tenant, it must
equally contemplate such an order against assignees of
tenants, for the section makes no distinction between sub-
tenants and assignees for the purpose of making such orders.
I am not unmindful of the fact that where an order for
recovery of possession of any premises is made under s. 14
against a tenant assigning or sub-letting without the
landlord’s consent, that order would under s. 25 of the Act
be binding on all persons in occupation of the premises
except those who leave independent title to them. This
section does not however say that an order for recovery of
possession against an assignee of a lessee cannot be made.
It would not, therefore, support an argument that an order
for recovery of possession could be made under s. 14 against
an assignee or a sub-tenant. On the other hand, it seems to
me that to an application under cl. (b) of the proviso to
sub-s. (1) of s. 14 an assignee or sub-tenant, as the case
may be, should be a proper party. Under this provision an
ejectment order can be made only when the assignment or sub-
letting was without the consent of the landlord. If it was
with such consent, the assignee or the sub-tenant would be
protected by the Act. An assignee or a sub-tenant is,
therefore, interested in showing that there was the
requisite consent. They should hence be entitled to be made
parties to the proceedings. Otherwise, if under s. 25 an
eviction order obtained against the direct tenant is
binding on them, they would be liable to be condemned
without a hearing. It is no argument against this view that
the direct tenant would protect them, for they cannot be
made to depend on him for the protection of their rights.
The direct tenant may be negligent or incompetent in his
defence; he may even collude with the landlord or he may
just not bother. If the assignee or the sub-tenant is thus
entitled to be heard to oppose the order for eviction,
that would be another reason for saying that an order
eviction could be made against them also; if they could
oppose the
835
making of the order, it would be unnatural to say that the
order could not be made against them. In what 1 have said in
this paragraph, I do not wish to be understood as holding
that in view of’ s. 25 an order for eviction against a
tenant is in fact binding on his assignee or sub-tenant.
Such a decision is not necessary for this case. I wish,
however, to point out that if s. 25 does not make the
ejectment order so binding, the appellant cannot resort to
it for any assistance.
I have now dealt with the first argument in support of
the appeal and I find it unacceptable. The other argument
was that the order for recovery of possession was
unwarranted as in fact there had been a consent of the
respondents to the assignment in favour of the appellant.
It is said that the consent was given by a clause in the
lease under which Allen Berry & Co. held which reads as
follows:--
"That whenever such an interpretation
would be necessary in order to give the
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fullest scope and effect legally’ possible to
any covenant or contract herein contained, the
expression "The Lessor" hereinbefore used
shall include his heirs, executors,
administrators and assigns. and the expression
"THE LESSEE" hereinbefore used’ shall include
their representatives and assigns."
I am unable to accept this contention also.
I notice that the lease gave no express right to the
lessee to assign with or without the consent of the lessor.
The lessee no doubt had that right under the Transfer of
Property Act. It may be that under the clause the lessee’s
assignee would be included in the expression "lessee" as
used in the lease; that is the entire effect of the clause.
But this would be so whether the lessor had consented to the
assignment or not. Therefore, this clause does not lead to
the conclusion that the lessor had consented to the
assignment. It is of no assistance in the present case. I
am also’ inclined to the view that the consent contemplated
by s. 14(1): proviso (b) is a direct consent to a
contemplated assignment to a particular assignee: see
Regional Properties, Ltd. v. Frankenschwerth(1). Clearly
the clause in the case relied upon could not be a consent of
this kind. This point, therefore, also fails.
For these reasons I would dismiss the appeal with costs.
Mudholkar, J. In this appeal by certificate granted by
the Pun-jab High Court an unusual question arises for
consideration. That question is whether an application made
under s. 14(1)(b) of the Delhi Rent Control Act, 1958 by a
landlord of a building in Delhi against a tenant who happens
to be a company incorporated under the Indian Companies Act,
cannot be proceeded with and granted’ on the ground that
before the making of any order thereon by the’
(1) (1951) 1 All. E.R. 178.
836
Rent Controller the Company is dissolved and is struck off
the record of the case. According to the appellant who
claims to be an assignee from the original tenant, that is,
the Company, such an application cannot be proceeded with
and granted while according to the respondent landlord the
fact that the company is dissolved makes no difference.
The facts which are not in dispute and which have been
stated in the judgment of Bachawat J. need not be
recapitulated because what I have already said is sufficient
to enable me to deal with the point.
The relevant part of s. 14(1) reads thus:
"Notwithstanding anything to the contrary
contained in any other law or contract no
order or decree for the recovery of possession
of any premises shall be made by any Court or
Controller in favour of the landlord against a
tenant:
Provided that the Controller may, on an
application made to him in the prescribed
manner, make an order for the recovery of
possession of the premises on one or more of
the following grounds only, namely:-
(b) that the tenant has, on or after the
9th day of June, 1952, sublet, assigned or
otherwise parted with the possession of the
whole or any part of the premises without
obtaining the consent in writing of the
landlord;
It is not necessary to refer to cl. (a) or to the
several clauses following el. (b) in this sub-section or to
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any of the sub-sections of s. 14. Looking at sub-s. (1)
what we find is that it enacts a bar to the making of an
order or decree for the recovery of possession of any
premises by any court or the controller against a tenant.
In other words the jurisdiction of a civil court or even of
the Rent Controller to make an order of eviction against the
tenant is taken away. The proviso, however, lifts the ban
against eviction in certain circumstances one of which is
that set out in el. (b). What is important to bear in mind
is that sub-s. (1) is intended to protect the possession of
the tenant. A proviso to a section or a sub-section is
subservient to the main provision. It would, therefore,
follow that the ban against the eviction is lifted only with
respect to the possession of the tenant and not of any other
person. In so far as persons other than the tenant who may
be in possession of the premises which pertain to the
tenancy is concerned, the matter is dealt with by s. 25 and
we can leave that out at any rate for the present. Another
thing to be noticed about s. 14 is that
837
though under s. 2(1)(b) of the Act the word "tenant"
includes several other persons in addition to the one with
whom there was a contract that expression must be regarded
as relating to the same individual in the entire section or
at least in sub-s. (1) of s. 14 wherever it occurs. Thus, if
in the first part of sub-s. (1) of s. 14 "tenant" is
regarded as meaning as "assignee" of the tenant then it
would have to be given the same meaning in cl. (b) of sub-s.
(1) of s. 14. That is to say that if there is a sub-letting
or a further assignment or any other kind of parting with
possession by an assignee of the original tenant (the
assignment by the original tenant having been accepted or
acquiesed in by the landlord) such assignee can be evicted
by the landlord if the action of the assignee of the kind
mentioned was taken by him without his written consent.
Now, since sub-s. (1) is a bar to the jurisdiction of
the Rent Controller to make an order or decree for recovery
of possession against a tenant it must necessarily follow
that the tenant must be a party to a proceeding before him
right up to the date of the making of the decree or order.
Thus, if the tenant dies during the pendency of the
proceedings and his legal representative is not substituted
on the record in his place, the proceeding will abate
against him and the Rent Controller will have no
jurisdiction to make an order in favour of the landlord.
That is to say, the proviso will not be available to the
landlord no matter what the tenant had done if the records
of the proceeding became defective because neither the
tenant nor his legal representative was any longer a party
to those proceedings. The reason for this is that the
ground upon which the landlord’s application is based can be
availed of for lifting the ban on the eviction by the Rent
Controller of the tenant alone. Unless an order is obtained
against the tenant there would be no occasion for pressing
in aid the provisions of s. 25 of the Act. Where during the
pendency of the proceedings before the Rent Controller the
tenant dies or makes an assignment of whatever interest he
may still have left in the demised premises no difficulty
would arise because his legal representative or assignee
could be brought on record in his place. But, it must be
admitted, that an anomalous position results where the
tenant happening to be a company is dissolved during the
pendency of the proceedings and can, therefore, be not
represented by any person. The Act does not contemplate this
position nor even does the Code of Civil Procedure and so we
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have it that the defect in the record resulting from the
dissolution of a company cannot be removed at all. The
result, however, of this is that the jurisdiction of the
Controller to proceed with the application of the landlord
and therefore to make eventually an order or decree
entitling the landlord to recover possession from the tenant
ceases to be exercisable. Apparently this curious position
arises because of a lacuna in the law. Such a lacuna cannot
be removed by the Courts without assuming the power to
legislate--which obviously is beyond the
839
competence of any court. The duty of courts is merely to
administer the law as they find it. The only way for
remedying the defect is for the legislature to step in and
amend the law.
The result of what has happened in this case is that the
right which the landlord possessed to evict the now defunct
company from the premises through the intervention of the
Rent Controller because the company had assigned the demised
premises to an. other without his consent can no longer be
availed of by him. The assignee, who is the appellant before
us, can therefore continue to be in possession of the
premises even though he may have been liable to be evicted
with the aid of s. 25 had the company not been dissolved in
the meanwhile. Whether the landlord has now a right under
the general law to evict the appellant is not a matter upon
which I would express an opinion because it does not
strictly arise at this stage. For these reasons I would
allow the appeal, set aside the orders of the courts below
and dismiss the application of the respondent landlord under
s. 14(1)(b) of the Act. In the particular circumstances of
the case I would direct that costs throughout shall be borne
by the parties as incurred.
Bachawat, J. Originally one Amar Sarup owned the land
and building at plot No. 5, Block ’M’, Connaught Circus, New
Delhi. By a lease dated March 1, 1956, Amar Sarup leased the
property to Allen Berry & Co. (Calcutta) Ltd., (hereinafter
referred to as the tenant) for a period of five years on a
monthly rent of Rs. 297/-. Sometime thereafter, Amar Sarup
transferred the property to the respondents. In or about
May, 1959, the tenant assigned the tenancy rights. and
parted with possession of the whole of the premises to the
appellant. On October 6, 1959, the respondents filed an
application before the Rent Controller, Delhi praying for
eviction of the tenant and the appellant. The tenant, a
limited company, had gone into voluntary liquidation on
September 26, 1959 and it was finally wound up and dissolved
on October 29, 1960. On its dissolution, the tenant ceased
to exist, and by order of the Rent Controller, its name was
struck off from the array of parties in the pending
application. By an order dated October 10, 1962, the Rent
Controller passed an order of eviction against the
appellant. An appeal by the appellant to the Rent Control
Tribunal, Delhi was dismissed on January 23, 1963, and a
second appeal to the Punjab High Court was dismissed on May
10, 1963. A Letters Patent Appeal from the order dated May
10, 1963 was dismissed on December 11, 1963 on the ground
that the appeal was not maintainable, and an appeal to this
Court from the last order was dismissed on January 18, 1965.
The appellant has now preferred this appeal from the order
dated May 10, 1963 by special leave granted by this Court.
The respondents-landlords instituted the proceeding for
eviction of the tenant and its assignee relying on the
provisions of
s. 14(1) of the Delhi Rent Control Act, 1958 (Act 59 of
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1958), the relevant portion of which is as follows:
"14(1). Notwithstanding anything to the
contrary contained in any other law or
contract, no order or decree for the recovery
of possession of any premises shall be made by
any court or Controller in favour of the
landlord against a tenant:
Provided that the Controller may, on an
application made to him in the prescribed
manner, make an order for the recovery of
possession of the premises on one or more of
the following grounds, namely:--
(b) that the tenant has, on or after the
9th day of June, 1962 sub-let, assigned or
otherwise parted with the possession of the
whole or any part of the premises without
obtaining the consent in writing of the
landlord;"
The case of the landlords is that "the tenant has ...
assigned... the whole of the premises without obtaining the
consent in writing of the landlord", and, therefore, the
Controller had jurisdiction to make an order for possession.
The tenant is forbidden by s. 16(3)(b) of the Act to make
the assignment, for contravention of s. 16(3)(b) he is
punishable with fine under s. 48(2), and the assignment is
a ground for eviction under s. 14(1), proviso, paragraph
(b), and so, the landlords submit that the Controller had
jurisdiction to make the order for possession against the
tenant and its assignee, and on the dissolution of the
tenant, against the assignee alone.
Counsel for the appellant contended that the Controller
had no jurisdiction to make the order for possession in the
absence of the original tenant. I cannot accept this
submission. Both the tenant and the assignee were properly
parties to the proceedings for possession, and if the
tenant-company had not been dissolved, the Controller would
have been competent to make the order for possession. The
tenant has since been dissolved and ceased to exist, no one
can be substituted in its place, and 1 do not see why the
proceedings cannot now continue against the assignee alone.
Paragraph (b) of the proviso to s. 14(1) evidently
contemplates proceedings for possession against both the
tenant and the assignee, who as a result of the assignment
has been put in possession of the premises. Counsel for the
appellant made the alternative submission that paragraph (b)
contemplates an assignment by the tenant against whom the
order for eviction is made, and as the appellant was the
assignee and not the assignor, there was no ground for its
eviction under paragraph (b). It is true that other
paragraphs of the proviso contemplate the eviction of the
tenant on the ground of some act on the part of the tenant
against whom
840
the proceeding for possession is brought, but under
paragraph (b), the assignment is a ground of eviction of
both the assigning tenant and the assignee, and in the event
of an assignment without the consent in writing of the
landlord, the Controller has jurisdiction to make an order
for possession not only against the assigning tenant but
also against the assignee.
Counsel for the appellant next referred us to cl. 7 of
the lease, which is in these terms:
"That, whenever such an interpretation
would be necessary in order to give the
fullest scope and effect legally possible to
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any covenant or contract herein contained, the
expression ’The Lessor’ hereinbefore used
shall include his heirs, executors,
administrators and assigns and the expression
’The Lessee’ hereinbefore used shall include
their representatives and assigns."
Counsel for the appellant submitted that by cl. 7 of the
lease, the landlords have given their consent in writing to
the assignment. I cannot accept this submission. The consent
in writing within the meaning of paragraph (b) of the
proviso to s. 14(1) may be either general or special, but no
such consent was given by cl. 7. The effect of cl. 7 is
that the assignee of the lease enjoys the benefits and is
subject to the burden of the covenants in the lease, but the
clause does not amount to a consent by the landlord to an
assignment either expressly or by necessary implication.
The assignment to the appellant was without the consent in
writing of the respondents. The Controller rightly passed
the order for possession of the premises.
Counsel for the appellant contended that the contractual
term of the lease not having expired on October 6, 1959. the
proceeding before the Controller was not maintainable. We
indicated in the course of the argument that this contention
not having been raised in the Courts below, we are not
inclined to allow the appellant to raise it here for the
first time.
In the result, the appeal is dismissed with costs.
ORDER
In accordance with the opinion of the majority, the
appeal is dismissed with costs. The appellant will have a
month’s time from today to vacate the premises.