1985 JTR(Raj) 481
1985 RLR 718 ; 1985 1 WLN 550
RAJASTHAN HIGH COURT
Dwarka Prasad Gupta, S.K.Lodha, JJ.
Amir Ahmed - Appellant
Versus
Yusuf - Respondent
D.B. Reference in Civil Second Appeal No. 225 of 1980.
Decided On : 23-05-1985
A tenant who allows another person to merely use the premises or part of the premises cannot be said to have parted with possession of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act.
RAJASTHAN PREMISES (CONTROL) OF RENT AND EVICTION ACT, 1950 - SECTION 13(1)(E) - PARTING WITH POSSESSION - INTERPRETATION - TENANT'S LIABILITY FOR EVICTION. Whether a tenant, who allows another person to use the premises or part of the premises can be said to have "parted with possession" of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act? Whether conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person constitutes parting with possession Under Section 13(1)(e) of the Act? Whether the decision in Bhagwat Prasad v. Dwarka Prasad and Anr. 1969 WLN 351 in so far it holds that a tenant, by sharing the premises with a third person, can be said to have parted with the possession of the premises, lays down the correct law?
Fact of the Case:
The plaintiff-landlord instituted a suit for rent and ejectment against the defendant-tenants on the grounds of default in payment of rent, causing damage to the premises, and sub-letting of half of the Barsali by defendant Amir Ahmed to one Ramjan without the consent of the plaintiff-landlord. The Munsif, Jodhpur City, decreed the suit and passed a decree for eviction on the ground that the defendant-appellant Amir Ahmed has sub-let a part of the premises, viz., half portion of the Barsali to Ramjan without the consent of the plaintiff-landlord. The District Judge affirmed the decree for eviction. A second appeal was filed.
Finding of the Court:
The court held that a tenant who allows another person to merely use the premises or part of the premises cannot be said to have parted with possession of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act. The court also held that the conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person does not constitute parting with possession Under Section 13(1)(e) of the Act. The court further held that the decision in Bhagwat Prasad's case 1969 WLN 351 so far as it held that a tenant by sharing the premises with a third person can be said to have parted with the possession of the premises does not lay down the correct law.
Issues: 1. Whether a tenant, who allows another person to use the premises or part of the premises can be said to have "parted with possession" of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act? 2. Whether conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person constitutes parting with possession Under Section 13(1)(e) of the Act? 3. Whether the decision in Bhagwat Prasad v. Dwarka Prasad and Anr. 1969 WLN 351 in so far it holds that a tenant, by sharing the premises with a third person, can be said to have parted with the possession of the premises, lays down the correct law?
Ratio Decidendi: The court relied on several English and Indian cases to arrive at its decision. In Pebble v. Croathwsite (1897) 13 Times Law Reporter 37, the court held that a lessee who retains the legal possession of the whole of the premises at all material times does not commit a breach of the covenant against parting with the possession by allowing other people to use the premises. In Cheplin v. Smith 1923(1) CH.D. 373, the court held that there was no breach of the lessee's covenant not to part with possession of the premises or part thereof, because no interest in the demised premises had been passed to the companies or either of them. In Stoning v. Abraham (1931) 1 Ch. 470, the court held that a lessee cannot be said to have parted with the possession of any part of the premises unless his agreement with his licensee wholly ousts him from legal possession of that part.
Final Decision: The court answered all three questions referred to it in the negative, holding that a tenant who allows another person to merely use the premises or part of the premises cannot be said to have parted with possession of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act, that the conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person does not constitute parting with possession Under Section 13(1)(e) of the Act, and that the decision in Bhagwat Prasad's case 1969 WLN 351 so far as it held that a tenant by sharing the premises with a third person can be said to have parted with the possession of the premises does not lay down the correct law.
RAJASTHAN PREMISES (CONTROL) OF RENT AND EVICTION ACT, 1950 - SECTION 13(1)(E) - PARTING WITH POSSESSION - INTERPRETATION - TENANT'S LIABILITY FOR EVICTION. Whether a tenant, who allows another person to use the premises or part of the premises can be said to have "parted with possession" of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act? Whether conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person constitutes parting with possession Under Section 13(1)(e) of the Act? Whether the decision in Bhagwat Prasad v. Dwarka Prasad and Anr. 1969 WLN 351 in so far it holds that a tenant, by sharing the premises with a third person, can be said to have parted with the possession of the premises, lays down the correct law?
Fact of the Case:
The plaintiff-landlord instituted a suit for rent and ejectment against the defendant-tenants on the grounds of default in payment of rent, causing damage to the premises, and sub-letting of half of the Barsali by defendant Amir Ahmed to one Ramjan without the consent of the plaintiff-landlord. The Munsif, Jodhpur City, decreed the suit and passed a decree for eviction on the ground that the defendant-appellant Amir Ahmed has sub-let a part of the premises, viz., half portion of the Barsali to Ramjan without the consent of the plaintiff-landlord. The District Judge affirmed the decree for eviction. A second appeal was filed.
Finding of the Court:
The court held that a tenant who allows another person to merely use the premises or part of the premises cannot be said to have parted with possession of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act. The court also held that the conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person does not constitute parting with possession Under Section 13(1)(e) of the Act. The court further held that the decision in Bhagwat Prasad's case 1969 WLN 351 so far as it held that a tenant by sharing the premises with a third person can be said to have parted with the possession of the premises does not lay down the correct law.
Issues: 1. Whether a tenant, who allows another person to use the premises or part of the premises can be said to have "parted with possession" of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act? 2. Whether conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person constitutes parting with possession Under Section 13(1)(e) of the Act? 3. Whether the decision in Bhagwat Prasad v. Dwarka Prasad and Anr. 1969 WLN 351 in so far it holds that a tenant, by sharing the premises with a third person, can be said to have parted with the possession of the premises, lays down the correct law?
Ratio Decidendi: The court relied on several English and Indian cases to arrive at its decision. In Pebble v. Croathwsite (1897) 13 Times Law Reporter 37, the court held that a lessee who retains the legal possession of the whole of the premises at all material times does not commit a breach of the covenant against parting with the possession by allowing other people to use the premises. In Cheplin v. Smith 1923(1) CH.D. 373, the court held that there was no breach of the lessee's covenant not to part with possession of the premises or part thereof, because no interest in the demised premises had been passed to the companies or either of them. In Stoning v. Abraham (1931) 1 Ch. 470, the court held that a lessee cannot be said to have parted with the possession of any part of the premises unless his agreement with his licensee wholly ousts him from legal possession of that part.
Final Decision: The court answered all three questions referred to it in the negative, holding that a tenant who allows another person to merely use the premises or part of the premises cannot be said to have parted with possession of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act, that the conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person does not constitute parting with possession Under Section 13(1)(e) of the Act, and that the decision in Bhagwat Prasad's case 1969 WLN 351 so far as it held that a tenant by sharing the premises with a third person can be said to have parted with the possession of the premises does not lay down the correct law.
JUDGMENT :
(1) Whether a tenant, who allows another person to use the premises or part of the premises can be said to have "parted with possession of the premises part of the premises" so as to entail the liability of eviction Under Section 13(1)(e) of the Act?
(2) Whether conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person constitutes parting with possession Under Section 13(1)(e) of the Act?
(3) Whether the decision in
We may notice the relevant facts: The plaintiff landlord (respondent) instituted a suit for rent and ejectment against the defendant-tenants who are said to be the legal representatives of the original tenant Allanoor. It was stated in para 3 of the plaint that Amir Ahmed and family are in exclusive possession of the apartments in question. The plaintiff-respondent sought eviction of the defendant-appellant Amir Ahmed and other defendants on the grounds viz., (i) default in payment of rent; (ii) causing damage to the premises; and (iii) sub-letting of half of the Barsali by defendant Amir Ahmed to one Ramjan without the consent of the plaintiff-landlord. The apartments in question are half portion of the Barsali, one kitchen, one latrine, two rooms, chowk and Chabutri on the ground floor of the house described in para 1 of the plaint. The Munsif, Jodhpur City, Jodhpur by his judgment and decree dated May 15, 1980, decreed the suit of the plaintiff-respondent and passed a decree for eviction on the ground that the defendant-appellant Amir Ahmed has sub-let a part of the premises, viz., half portion of the Barsali to Ramjan without the consent of the plaintiff-landlord. An appeal was filed and the learned District Judge, by his judgment and decree dated November 25, 1980, affirmed the decree for eviction. A second appeal was filed.
On appeal, the learned District Judge affirmed the finding observing as under:
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Before the learned single Judge, the finding that the defendant-appellant has not parted with exclusive possession over the part of the Barsali which has been leased out to him, was assailed and it was submitted that the appellant had only permitted Ramjan to keep him goods in a part of the Barsali and that on the basis of the record, it could not be held that the defendant had either sublet half of the Barsali to Ramjan or had parted with possession of a part of the Barsali to Ramjan. On behalf of the plaintiff-respondent, reliance was placed on the decision of a learned single Judge of this Court in Bhagwat Prasad's case 1969 WLN 351. The learned single Judge on the basis of the decisions referred to in his referring order dated November 5, 1982, was of the opinion that a distinction has to be down between sharing of the possession of the premises and parting of possession of the premises. According to the learned single Judge, the view taken in Bhagwat Prasad's case 1969 WLN 351 that the tenant by sharing the possession with another person can be said to have parted with possession is contrary to the decisions referred to by him in his referring order and so, the interpretation put in Bhagwat Prasad's case 1969 WLN 351 on the expression "parting with possession" as used in Section 13(1)(e) of the Act, need reconsideration and as such the aforesaid question have been referred.
Section 13. Eviction of tenants-(1) Not with standing anything contained in any law or contract, no court shall pass any decree, or make any order, in favour of a landlord, whether in execution of a decree or otherwise, evicting the tenant so long as he is ready and willing to pay rent therefor, to the full extent allowable by this Act, unless it is satisfied:
... ... ...
(e) that the tenant has assigned, sub-let for otherwise parted with the possession of, the whole or any part of the premises without the permission of the landlord; or
... ... ...
(2) The Court may presume that premises let for use as a residence were or are sub-let by the tenant in whole or in part to another person, if it is satisfied that such person not being a servant of the tenant or a member of the family of such servant, was or has been residing in the premises, or any part thereof for a period exceeding one month otherwise than in commensality with tenant.
A covenant not to assign, sub-let or part with the possession of the demised premises is generally contained in a lease-deed and the expression "part with the possession of the demised premises" has come up for consideration before the English Courts in a number of decisions.
"If the new company was ready in the circumstances to enter into an agreement for the use of the premises which the appellant remained in possession as lessee to the respondent, there is nothing in law to prevent this arrangement or give it an effect other than the that which the parties intended. If so, there is no breach of the covenant. The learned Judge accepts the facts; but must have held that a man cannot permit another occupy at the same time himself remain in possession. In my opinion, it is quite possible in law to do so."
"The lessee of a double fronted shop with a door in the middle and a counter on either side who has covenanted not to part with the possession of the demises premises: or any part thereof, may surely agree to allow a licensee to carry on a business in one part while the lessee himself remains in possession of the whole premises and carries on his own business in other part. In that case, there is no parting with possession, and I see no distinction between that case and this."
Warrington L.J., has observed as follows:
"In the absence of authority, I should say that a man may abstain from parting with possession of premises although he allows another to use therein, and that then he does not commit a breach of this covenant."
"In country villages it is common to find the occupier of a house permitting a bank to use one of the rooms on certain days in the week. It could hardly be said that in so doing he has parted with possession of the house or any part of it."
Scrutton L.J. has observed as follows:
"He was constantly on the premises himself and kept the key of them. He did not business of his own as well as business of the company. In my view he allowed the company to use the premises while he himself remained in possession of them. In these circumstances the authorities bind us to say that he has not parted with possession of the premises or any part thereof."
In
"But in my opinion a lessee cannot be said to part with the possession of any part of the premises unless his agreement with his licensee wholly ousts him from legal possession of the part. If there is anything in the nature of a right to concurrent user there is no parting with possession."
In
"A covenant "not to assign", or "not to assign or otherwise part with", the premises is only broken by a legal assignment for the entire residue of the term.
A covenant "not to assign or part with the possession of the premises" goes further and is broken if, for example, the tenant makes an equitable assignment of the lease and places the assignee in possession, but a tenant who retains the legal possession of the whole of the premises at all material times does not commit a breach of the covenant by allowing other people to use the premises."
"A covenant not to part with the possession of the premises is not broken by the tenant parting with part of the premises and therefore, it is common to find in leases a covenant "not to assign, sub-let or part with possession of all or part of the demised premises."
In Wood Fall's "Law of Landlord and Tenant" (28th Edition Vol. I), at page 494 in para 1197, the legal position has been summed up as under:
"So long as the lessee remains in possession, he may permit another person to use the demised premises without committing a breach of a covenant 'not to assign, under-let or part with the possession of the demised premises."
"A covenant against parting with the possession of the demised premises is not broken, so long as the lessee retains legal possession, by allowing other people to use the premises either under a licence or under a declaration of trust; allowing use of the premises during certain hours is not, therefore, a breach of such a covenant, though it would be of a covenant against sharing the occupation of any part of the premises."
"But a lessee cannot be said to part with the possession of any part of the premises unless his agreement with his licensee wholly ousts him from legal possession of that part."
The expression "part with the possession" has also come up for consideration before the courts in India.
"Clause (b) to the proviso to Sub-section (1) of Section 14 of the Rent Act uses three expressions namely "sub-let" "assigned" and "otherwise parted with the possession" of the whole or any part of the premises without obtaining the consent in writing of the landlord. These three expressions deal with different concepts and apply to different circumstances. In sub-letting, there should exist the relationship of landlord and tenant as between the tenant and his sub-tenant and all the incidents of letting or tenancy have to be found, namely, the transfer of an interest in the estate, payment of rent and the right to possession against the tenant in respect of the premises sub-let. In assignment, the tenant has to divest himself of all the rights that he has as a tenant. The expression 'parted with the possession' undoubtedly postulates, as has been held in the cases mentioned above the parting with the legal possession. As we understand it, parting with possession means giving possession to persons other than those to whom possession has been given by the lessee and "the parting with possession" must have been by the tenant. The mere user by other persons is not parting with possession as long as the tenant retains the legal possession himself or, in other words, there must be resting of possession by the tenant in another person by divesting himself of not only of physical possession but also of the right to possession. So long as the tenant retains the right to claim possession from his guest who docs not pay him any rent or other consideration it would not be possible to say that tenant has parted with possession even though for the duration of his stay, the guest has been given the exclusive use of the whole or a part of the tenancy premises. If the tenant has a right to disturb the possession of his guest at any time, he cannot be said to have parted with the possession of the tenancy premises. The mere fact that the tenant himself is not in physical possession of the tenancy premises for any period of time, would not amount to parting with the possession as long as, during his absence, tenant has a right to return to the premises and be in possession thereof. A mere privilege of licence to use the whole or a part of the demised premises which privilege or licence can be terminated at the sweet will and pleasure of tenant at any time would not amount to "parting with possession". The divestment or abandonment of the right to possession is necessary in order to invoke the clause of parting with possession."
(Emphasis added)
".... I find that the crux of the sub-letting lies in this as to who is in actual control of the premises. If the sub-tenant is in actual possession of the premises, there would be sub-letting unless an arrangement is proved whereby the sub-tenant is merely a caretaker on behalf of the tenant during the period of the absence of the tenant. That was the case that was set up. But no evidence was led to prove it. When-even a landlord proves that there has been complete parting with the possession then it is for the tenant to establish that, that parting with the tenant's possession has been under some arrangement negativing the passing of the complete control of the premises to the so called subtenant."
The learned Judge in Malasingh's case agreed with Dr. Ramsarup's case However, according to him, mere parting with possession is not sufficient proof of sub-letting of the building or of transferring of the tenant's rights under the lease. He has also referred
"Moreover, the burden under the statute is on the landlord to make out the ground for eviction and not on the tenant to forestall or rebut such grounds, I completely agree that unless the landlord makes out such a ground be cannot be given an order putting him in possession. But the manner of proof of a fact depends also upon the Evidence Act or at any rate, the principles embodied therein. While the initial onus of proving sub-letting or transfer of the leasehold is on the landlord, once the Court is satisfied that there has been a transfer of possession, the onus may shift and the tenant within whose special knowledge the facts explaining the manner in which such possession has been transferred he, may have to bear the burden thereafter."
In
"A landlord is almost always a stranger to agreements of sub-letting between his tenant and sub-lessee and he has generally to rely on attending circumstances to establish sub-letting by necessary inference. It must be very merely that direct evidence of sub-letting without the landlord consent, whether in the form of a lease deed or of the testimony of witnesses in whose presence the sub-lease is created, can come to the hands of the landlord."
We may also notice
(1) Where a tenant allows another person to merely use the premises or part of the premises, he cannot be said to have parted with possession of the premises or part of the premises so as to entail the liability of eviction Under Section 13(1)(e) of the Act.
(2) that the conversion of exclusive possession of the premises by the tenant into a joint possession of the premises by the tenant and a third person, does not constitute parting with possession Under Section 13(1)(e) of the Act.
(3) that the decision in Bhagwat Prasad's case 1969 WLN 351 so far as it held that a tenant by sharing the premises with a third person can be said to have parted with the possession of the premises does not lay down the correct law.
All the questions referred by the learned single Judge which have been mentioned here in above are, therefore, answered in the negative.
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