Tenant Violating Lease through Encroachment and Unauthorized Subletting Forfeits Renewal Rights and Must Deliver Vacant Possession

The Applicant, G.K. Srinivasan, was a tenant of a property (3,840 sq. ft.) belonging to a Trust administered by the Administrator General and Official Trustee (AG & OT).

The lease expired in October 2025, but the Applicant failed to vacate despite receiving notice.

An inspection by the AG & OT’s Junior Engineer revealed that the Applicant had encroached upon an additional 2,905 sq. ft. of Trust land (totaling 6,745 sq. ft.), raised unauthorized constructions, and sublet portions to third parties.

The Applicant sought an interim injunction to restrain eviction, while the AG & OT filed applications for vacant possession, police assistance for eviction, and damages for use and occupation.

1. Whether the Applicant is entitled to an interim injunction against eviction after the expiry of the lease and the discovery of unauthorized encroachment and subletting.

2. Whether the AG & OT is entitled to recover vacant possession and claim damages for unauthorized occupation and use of Trust property.

The Court applied the principles of Trust law regarding the protection of Trust properties from "undue advantage" and "unjust enrichment" by tenants.

It emphasized the discretionary nature of interim injunctions, which require the applicant to approach the court with "clean hands".

The court acted under its inherent powers to ensure compliance with its previous directions regarding fair rent and undertakings to vacate.

The Court noted that the Applicant failed to comply with previous orders dated 13.02.2025 and 25.02.2025, which required the payment of a monthly rent of Rs. 50,000 and an undertaking to vacate.

The Court found that the Applicant’s conduct—encroaching on 6,745 sq. ft. of land when only 3,840 sq. ft. was leased, raising unauthorized structures, and subletting—constituted a clear attempt to usurp Trust property for unjust gain.

Given that the lease had expired and the Applicant had breached his previous undertaking to vacate by June 2025, the Court held that he had lost his credibility and was not entitled to equitable relief or a lease renewal.

Based on the Applicant's subsequent undertaking in court, he was directed to hand over vacant possession by 01.09.2026. Failing this, the AG & OT was authorized to use police force to secure the entire property, and was granted liberty to initiate proceedings to collect rental arrears and claim damages.