VidhiSangh

Supreme Court of India · 21/03/2023

YUVRAJ @ MUNNA PRALHAD JAGDALE & ORS. versus JANARDAN SUBAJIRAO WIDE

[2023] 2 S.C.R. 1135 · 2023 INSC 266

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Summary

Landlords of hotel premises at Pune sued their tenant for eviction under Section 13(1)(e) of the Bombay Rents, Hotel and Lodging House Rates (Control) Act, 1947, alleging that he had assigned his hotel business and parted with possession to a third party. The trial court and the appellate court decreed eviction, but the Bombay High Court reversed, holding that the proviso to Section 15(1) permitted transfer and that a partnership with the third party was not sub-letting. The Supreme Court restored the decree: the proviso applies only where the State Government has notified permission, which was nobody's case; the lease expressly barred assignment; and the tenant's admitted execution of an assignment agreement for Rs. 2 lakhs with receipt of earnest money itself completed the breach, so the later failure of the assignee's specific performance suit was irrelevant.

Issues

  1. Whether a tenant who executed an agreement assigning his business in the leased premises to a third party for consideration, in breach of an express lease condition, incurred eviction under Section 13(1)(e) of the Bombay Rents, Hotel and Lodging House Rates (Control) Act, 1947, notwithstanding that the assignee's suit for specific performance later failed.
  2. Whether the proviso to Section 15(1) of the 1947 Act permits a tenant to transfer his interest in the absence of a State Government notification.

Provisions considered

Held

Result

Appeals and applications allowed; Bombay High Court judgments dated 03.12.2008 and 09.09.2009 set aside; trial court decree of eviction as affirmed by the appellate court restored; legal representatives of the deceased tenant to hand over vacant possession within two months, failing which the appellants may execute the decree; no order as to costs.

Judgment PDF: Supreme Court of India, [2023] 2 S.C.R. 1135.