Delhi High Court

Possession relative to a caretaker is permissive and termination of such agency entitles the principal to a decree of ejectment.

Izhar Hussain Khan vs M/S Pannalal Girdharlal Ltd

Delhi High CourtJUDGMENT: May 05, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Plaintiff (Respondent), a public limited company, claimed to be a lawful tenant of the suit property (2153-2157, Turkman Gate, Delhi) since 1974.

Source reference: p. 2, para. 3

Due to Supreme Court restrictions on manufacturing in the walled city, the Plaintiff stopped operations but kept machinery and records on-site.

Source reference: p. 3, para. 6-7

On 30.09.1995, the Plaintiff inducted the Defendant (Appellant), an employee of its sister concern (Victor Cable Industries Ltd.), as a caretaker for the premises.

Source reference: p. 3, para. 7-8

After the Defendant was terminated from the sister concern in 1997, he filed for an injunction against dispossession, which was granted pending due process.

Source reference: p. 3-4, para. 9-12

The Plaintiff issued a notice on 01.08.2006 terminating the caretaker arrangement and seeking vacant possession.

Source reference: p. 5, para. 14

The trial court (ADJ-10, Tis Hazari) decreed the suit for ejectment on 02.12.2022, leading to this appeal.

Source reference: p. 1, para. 1; p. 8, para. 28
02

Issues

1. Whether the Plaintiff is entitled to a decree of ejectment against the Defendant in respect of the suit premises?

Source reference: p. 7, para. 25

2. Whether the suit was bad for non-joinder of Victor Cable Industries Ltd.?

Source reference: p. 7, para. 25

3. Whether the Plaintiff’s alleged lack of valid tenancy under the original owners (Balkrishan Dass, HUF) disentitled it from seeking possession from the caretaker?

Source reference: p. 8-9, para. 29-31
03

Law Applied

The Court applied the principles of the Code of Civil Procedure, 1908 (Section 96, Order XLI) regarding appeals from original decrees.

Source reference: p. 1, para. 1

It relied on the doctrine of "licensor-licensee" relationships where a caretaker’s possession is permissive and terminates upon notice.

Source reference: p. 11, para. 42; p. 14, para. 51

The court also implicitly applied the principle that a person in settled possession (the Plaintiff) can maintain a suit for recovery of possession against a licensee/caretaker without necessarily proving absolute ownership against the world, as long as the Defendant's induction by the Plaintiff is established.

Source reference: p. 11, para. 40
04

Reasoning

The Court found that the inter se disputes between the Plaintiff and its landlords regarding the validity of the 1974 tenancy were irrelevant to the present dispute.

Source reference: p. 11, para. 40

The core issue was whether the Plaintiff had possession and subsequently inducted the Defendant. The Court noted that the Defendant’s defense—that he was put in possession by Victor Cable Industries Ltd.—was unsupported by evidence.

Source reference: p. 12, para. 44

Crucially, the Defendant's own admissions during cross-examination showed he represented the Plaintiff before PF authorities, contradicting his claim that he was not inducted by them.

Source reference: p. 13, para. 46

The Court further observed that the Defendant's attempts to obtain a separate electricity connection by claiming a third party (Suhaib Ahmed) was the owner further eroded his credibility.

Source reference: p. 13-14, para. 48-50

Since the Defendant was established as a caretaker, his right to occupy ceased once the Plaintiff's permission was withdrawn via notice.

Source reference: p. 14, para. 51
05

Holding

The Court held that the Defendant was an authorized caretaker whose permission to occupy was validly terminated by the notice dated 01.08.2006.

The High Court dismissed the appeal and upheld the trial court's judgment. Consequently, the Defendant became an unauthorized occupant liable for ejectment. The Court affirmed that the Plaintiff was entitled to recover possession of the property bearing No. 2153-2157, Turkman Gate, Delhi. All pending applications were disposed of accordingly.

Source reference: p. 14, para. 51-54
Delhi High Court

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Izhar Hussain KhanvsM/S Pannalal Girdharlal Ltd

Delhi High Court · May 05, 2026

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