Delhi High Court

Acquisition of property via Gift Deed from a spouse does not constitute "transfer" under Section 14(6) of the DRC Act.

Preeti Gupta v. Madan Mohan Pahwa & Ors. RC.REV. 306/2023

Delhi High CourtJUDGMENT: no citation3 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner, a widow and partially paralyzed, filed eviction petitions under Section 14(1)(e) of the Delhi Rent Control Act (DRCA) for bona fide requirement to start a business for herself and her professional daughters

Source reference: p.3, para 3

The property was originally owned by Smt. Raj Kumari Verma, then gifted to Ashok Kumar Verma, who willed it to the Petitioner’s husband, Anil Gupta, in 2005.

Source reference: p.3, para 2

Following Anil Gupta’s death, the Petitioner acquired full title via a registered Gift Deed dated 18.07.2022 executed by her late husband shortly before his demise

Source reference: p.3, para 2

The Rent Controller (RC) dismissed the petitions as non-maintainable, holding they were barred by Section 14(6) of the DRCA because five years had not elapsed since the "acquisition" of the premises via the 2022 Gift Deed

Source reference: p.4, para 4

The Petitioner challenged this by way of revision

Source reference: p.2, para 1
02

Issues

Whether the acquisition of tenanted premises by a wife from her husband via a Gift Deed constitutes a "transfer" under Section 14(6) of the DRCA, thereby attracting the five-year bar on filing eviction petitions.

Source reference: p.7, para 6; p.15, para 14
03

Law Applied

The Court primarily applied Section 14(6) of the DRCA, which prohibits a landlord who "acquired any premises by transfer" from filing a bona fide requirement eviction petition for five years from the date of acquisition

Source reference: p.8, para 9

It relied on the Supreme Court’s interpretation in V.N. Sarin v. Major Ajit Kumar Poplai, which established that the object of Section 14(6) is to prevent "strangers" or "purchasers" from using transfers as a tool to evict tenants; it does not apply where the claimant had a prior interest or title

Source reference: p.9, para 10

It further applied Dr. R.C. Sakhuja v. R.P. Kholi, which clarified that "transfer" excludes devolution by succession (testamentary or non-testamentary)

Source reference: p.13, para 13

and Ajay Kumar Gupta v. Prakash Chand Gupta, which held that transfers inter se between family members/lineal heirs do not attract the bar

Source reference: p.12, para 12
04

Reasoning

The Court reasoned that the legislative intent of Section 14(6) is to curb mala fide transfers intended to circumvent tenant protections, not to penalize genuine intra-family devolution

Source reference: p.9, para 10

The Court observed that the Petitioner is a Class I legal heir of her deceased husband and therefore possessed a "vested legal right" in the property prior to the execution of the Gift Deed

Source reference: p.16, para 18

Unlike a "stranger" or a "purchaser" who has no prior link to the title, the Petitioner’s acquisition via a gift from her husband was akin to a family settlement or inheritance

Source reference: p.15, para 15

The Court distinguished Ashok Kumar v. Ram Avtar Gupta, noting that in the present case, the Petitioner was not a "rank outsider" acquiring the property for the first time

Source reference: p.13, para 12

Furthermore, the Court noted that had the husband died intestate, the Petitioner would have inherited the right to sue regardless; thus, the Gift Deed did not create a "new" right of a character that the legislature intended to bar

Source reference: p.16, para 17
05

Holding

The Court held that a Gift Deed executed in favor of a spouse/legal heir does not fall within the ambit of "transfer" under Section 14(6) of the DRCA

The Court answered the issue in the negative, finding the Petitioner's suits were not premature

Source reference: p.16, para 19

The High Court set aside the impugned orders of the Rent Controller, restored the eviction petitions, and remanded the matters back to the Trial Court (SCJ-cum-RC, Tis Hazari) for disposal on merits

Source reference: p.16, para 20
Delhi High Court

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Preeti Gupta v. Madan Mohan Pahwa & Ors. RC.REV. 306/2023

Delhi High Court · no citation

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