{"id":192584,"date":"2009-02-24T00:00:00","date_gmt":"2009-02-23T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/madanjit-singh-and-another-vs-sh-p-k-aggarwal-on-24-february-2009"},"modified":"2018-11-17T17:46:52","modified_gmt":"2018-11-17T12:16:52","slug":"madanjit-singh-and-another-vs-sh-p-k-aggarwal-on-24-february-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/madanjit-singh-and-another-vs-sh-p-k-aggarwal-on-24-february-2009","title":{"rendered":"Madanjit Singh And Another vs Sh. P.K. Aggarwal on 24 February, 2009"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
Madanjit Singh And Another vs Sh. P.K. Aggarwal on 24 February, 2009<\/div>\n
Civil Revision No.277 of 2001 (O&M)                             -1-\n\n          IN THE HIGH COURT OF PUNJAB AND HARYANA\n                        AT CHANDIGARH\n\n                    Civil Revision No.277 of 2001 (O&M)\n                    Date of decision: 24.02.2009\n\nMadanjit Singh and another                         .............. Petitioners\n                                  Vs.\n\nSh. P.K. Aggarwal                                  ............Respondent\n\nPresent: Mr. Aman Chaudhary, Advocate\n         for the petitioners.\n         Mr. D.K. Gupta, Advocate\n         for the respondent.\n\nCORAM: HON'BLE MR. JUSTICE K. KANNAN\n\n1.    Whether Reporters of local papers may be allowed to see\n      the judgment ?\n2.    To be referred to the Reporters or not ?\n3.    Whether the judgment should be reported in the Digest ?\n                           -.-\nK.KANNAN, J.\n<\/pre>\n
1.        The question for consideration in the civil revision petition<\/p>\n
is the effect of a tenant who was carrying on business in his individual<\/p>\n
capacity later introduced the company as the tenant although he<\/p>\n
retained control over the affairs as a Director. The question that<\/p>\n
requires to be answered is whether the change of entity from an<\/p>\n
individual to a company constituted sub-tenancy.<\/p>\n
2.        Admittedly, the tenant was carrying on business in his<\/p>\n
individual capacity. It is also admitted by him subsequently that he<\/p>\n
had established a private company in the same premises and he<\/p>\n
continued to run the same business from the demised premises. The<\/p>\n
Rent Controller allowed the petition upholding the contention of the<\/p>\n
landlord that there had been a sub-tenancy by the tenant in his<\/p>\n
individual capacity to the company, which was a corporate entity. The<\/p>\n
Appellate Court reversed the decision and found that there was no
\n Civil Revision No.277 of 2001 (O&M)                         -2-<\/span><\/p>\n
sub-tenancy and that the mere change in character by the tenant<\/p>\n
cannot amount to sub-tenancy so long as the physical possession of<\/p>\n
the property had been continued in the hands of a tenant.<\/p>\n
3.        The point revolves around consideration of a proposition of<\/p>\n
law which seems firmly established in favour of the landlord by its<\/p>\n
decision in Ram Saran Vs. Pyare Lal and another AIR 1996 SC<\/p>\n
2361. It was a case where the tenant, who was an individual, later was<\/p>\n
responsible for forming a society in which he was a president and<\/p>\n
continued to reside in the same premises. The Court addressed the<\/p>\n
issue about the subsequent change of tenancy in favour of a registered<\/p>\n
society and found a tenancy surrendered in favour of registered<\/p>\n
society without the consent of landlord shall constitute a sub-tenancy.<\/p>\n
The Hon’ble Supreme Court also held that even the acceptance of rent<\/p>\n
tendered in the name of the registered society would not enable the<\/p>\n
landlord from seeking eviction on the ground of unauthorized<\/p>\n
subletting.   While dealing with the case, the Court adverted to the<\/p>\n
decision of Delhi High Court rendered in Vishwa Nath and another<\/p>\n
Vs. Chaman Lal Khanna and another AIR 1975 Delhi 117 where the<\/p>\n
Court dealt with typically a situation of tenant, who was an individual<\/p>\n
and later allowed the property to be in the hands of company of which<\/p>\n
he was a Director. In that case, the Delhi High Court had held that<\/p>\n
there was no subletting. The Hon’ble Supreme Court distinguished<\/p>\n
this decision and held that the Delhi High Court was only dealing with<\/p>\n
the case where the name of the business had changed but all other<\/p>\n
things remained the same and the original tenant continued to be a<\/p>\n
tenant.   The Hon’ble Supreme Court also distinguished its own
\n Civil Revision No.277 of 2001 (O&M)                          -3-<\/span><\/p>\n
decision rendered earlier in      M\/s Madras Bangalore Transport<\/p>\n
Company (West) Vs. Inder Singh and others A.I.R. 1986 S.C. 1564.<\/p>\n
In that case the Hon’ble Supreme Court was dealing with the case of<\/p>\n
tenancy in favour of a firm and the firm had subsequently associated<\/p>\n
itself with another company with its partners as directors, allowing the<\/p>\n
company to operate along with from the tenant premises. The Hon’ble<\/p>\n
Supreme Court had held although firm and company were separate<\/p>\n
legal entities and there was no subletting.\n<\/p>\n
4.        The distinction with the Hon’ble Supreme Court was making<\/p>\n
in laying down the law that a society, which is a distinct legal entity<\/p>\n
and to which tenanted premises had ultimately fallen to exclusive<\/p>\n
possession as proof of sub-letting and at the same time distinguishing<\/p>\n
the case that had been dealt with by the Delhi High Court and its own<\/p>\n
decision rendered earlier in M\/s Madras Bangalore Transport<\/p>\n
Company’s case (supra) is but on a thin line but the aspect to be seen<\/p>\n
is that there is a difference. In this case, it is not the case of an<\/p>\n
individual tenant who contended that he continued as a tenant. On the<\/p>\n
other hand, it is a case where individual tenant conceded that it was<\/p>\n
the company which was the tenant under the landlord and that it was<\/p>\n
paying rent to the landlord directly.   In Delhi High Court’s case, the<\/p>\n
Court found that apart from the change in the name of the business<\/p>\n
nothing else had changed and original tenant continued as a tenant<\/p>\n
while associating himself with the affairs of a company.           In the<\/p>\n
Hon’ble Supreme Court’s decision in M\/s Madras Bangalore<\/p>\n
Transport Company’s case (supra), the tenant which was a<\/p>\n
partnership firm continued as a tenant while still the partners had
\n Civil Revision No.277 of 2001 (O&M)                           -4-<\/span><\/p>\n
established a company with themselves as directors. In the said two<\/p>\n
cases, the identity of the original tenant had not been effaced.<\/p>\n
However in Ram Saran’s case (supra), the Hon’ble Supreme Court<\/p>\n
was dealing with the situation which was on all fours with the fact at<\/p>\n
hand. The tenant, who held possession in individual capacity later<\/p>\n
allowed the property to be held in possession by the society and he<\/p>\n
held the possession as a president of the society. The payment of rent<\/p>\n
by the president of society was seen to be by a distinct legal entity and<\/p>\n
was found to establish a sub-tenancy.         Here the tenant in his<\/p>\n
individual capacity had effaced himself and had allowed the society to<\/p>\n
assume full control. Similarly, in this case the first respondent himself<\/p>\n
was not in the business in his individual capacity but was associating<\/p>\n
himself wholly with the company. It was the company, which was in<\/p>\n
exclusive possession. To that extent being an independent entity<\/p>\n
distinct from the original tenant, the exclusivity of its possession made<\/p>\n
obvious the corollary, namely, that the tenant in his individual<\/p>\n
capacity had lost his possession to the sub tenant.<\/p>\n
5.        In fine, the decision is inevitable that the point to be<\/p>\n
answered is covered by the decision of Hon’ble Supreme Court in<\/p>\n
Ram Saran’s case (supra). I set aside the order passed by the<\/p>\n
Appellate Authority and the order of eviction issued by the Rent<\/p>\n
Controller is restored. Civil revision petition is allowed accordingly.<\/p>\n
However, there shall be no order as to costs. Time for eviction is two<\/p>\n
months.\n<\/p>\n
                                                      (K. KANNAN)
\n                                                          JUDGE
\nFebruary 24 , 2009
\nPankaj*\n <\/p>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court Madanjit Singh And Another vs Sh. P.K. Aggarwal on 24 February, 2009 Civil Revision No.277 of 2001 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Civil Revision No.277 of 2001 (O&M) Date of decision: 24.02.2009 Madanjit Singh and another ………….. Petitioners Vs. Sh. P.K. Aggarwal …………Respondent Present: Mr. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-192584","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nMadanjit Singh And Another vs Sh. P.K. 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