General Radio & Appliances Co.
Ltd. & Ors Vs. M.A. Khader [1986] INSC 87 (17 April 1986)
RAY, B.C. (J) RAY, B.C. (J) REDDY, O.
CHINNAPPA (J) SINGH, K.N. (J)
CITATION: 1986 AIR 1218 1986 SCR (2) 607 1986
SCC (2) 656 1986 SCALE (1)595
CITATOR INFO:
D 1991 SC 70 (6)
ACT:
Andhra Pradesh Buildings (Lease, Rent and
Eviction) Control Act, 1960 (AP Act No. 15 of 1960), section 10(ii) (a) read
with section 2(ix) - Transfer of tenancy right under the lease/subletting,
meaning of - Whether the voluntary amalgamation by virtue of the provisions of
sections 391 and 394 of the Companies act, 1956 of a company having tenancy
rights in a building with another company amounts to a "transfer of
tenancy rights" within the meaning of AP Act 15 of 1960 - Subsequent
events, taking judicial notice of.
HEADNOTE:
M/s. General Radio & Appliances Co. Ltd.,
a tenant under the respondent-landlord with effect from 7th day of January,
1959 under a rent agreement dated 12.1.1959 filed a company petition, before
the Bombay High Court, under sections 391 and 394 of the Companies Act praying
for an order sanctioning the scheme of amalgamation proposed by it with M/s.
National Ekco Radio and Engineering Co. Ltd. The Bombay High Court sanctioned
the said scheme by its order dated 27.3.1968. After the said amalgamation of
the two companies, appellant No. 1 company stood dissolved from 16 April 1968.
The respondent landlord issued a notice on 26.12.1968 to the first appellant
company terminating the tenancy on the ground of subletting and/or transfer and
assignment of the interest of appellant No. 1 company to the appellant No.2
company. Thereafter, the respondent filed the Rent Control Case No. 96 of 1969
for eviction under Rule 10(ii)(a) of the AP Act 15 of 1960. The Rent Controller
accepted both the pleas of respondent, namely, unauthorised subletting of the
premises and wilful default in payment of rent and negatived the defence of the
appellants that consequent upon the scheme of amalgamation when made a rule of
the Court, there was no transfer or subletting but a blending of two companies
together. In appeal, the Chief Judge, City Small Causes Court set aside the
eviction orders holding that a transfer of assets under a scheme 608 of
amalgamation being an involuntary one, it did not amount to assignment of lease
by the amalgamating company. However, the High Court while allowing the further
Revision Petition filed by the landlord restored the eviction orders passed by
the Rent Controller. Hence the appeal by certificate.
Dismissing the appeal, the Court ^
HELD : 1.1 The Andhra Pradesh Buildings
(Lease, Rent and Eviction) Control Act, 1960 is a special Act which provides
for eviction of tenants on certain specific grounds mentioned in section 10 of
the said Act. There is no express provision in the said Act that in case of any
involuntary transfer or transfer of the tenancy right by virtue of a scheme of
amalgamation sanctioned by the Court by its order under sections 391 and 394 of
the Companies Act as in the present case, such transfer will not come within
the purview of section 10(ii)(a) of the said Act. In other words such a
transfer of tenancy right on the basis of the order of the court will be immune
from the operation of the said Act and the transferee tenant will not be
evicted on the ground that the original tenant transferred its right under the
lease or sublet the tenanted premises or a portion thereof. [615 FH;
616 A-B]
1.2 On a plain reading of section 2(ix), of
the Act, it is clear that "any person placed in occupation of a building
by the tenant" cannot be deemed or considered to be a tenant in respect of
the premises in which the said person is to be in possession within the meaning
of the said Act. Therefore, the second appellant that is National Ekco Radio
and Engineering Co. Ltd., the transferee company who has been put in possession
of the tenanted premises by the transferor tenant General Radio and Appliance
Co. (P) Ltd. cannot be deemed to be tenant under this Act on the mere plea that
the tenancy right including the leasehold interest in the tenanted premises
have come to be transferred and vested in the transferee company on the basis
of the order made under sections 391 and 394 of the Companies Act. [616 B-D]
1.3 The order of amalgamation has been made
on the basis of the petition made by the transferor company in company petition
No. 4 of 1968 by the High Court of Bombay.
As such it cannot be said that this is an
involuntary transfer effected by order of the Court. [615 C-D] 609 1.4
Subsequent event can be taken judicial notice of.
Here, the first appellant company stood
dissolved from 16th of April 1968 and therefore, is no longer in existence in
the eye of law and it has effaced itself for all practical purposes. The second
appellant company that is the transferee company is now the person placed in
occupation of the suit premises by the tenant, the first appellant company.
There is undoubtedly no written permission or consent of the respondent
landlord to the transfer of tenancy right of the first appellant company as
required under section 10(ii)(a) of the Act. Moreover even if it is assumed to
be a subletting to the second appellant by the first appellant, such subletting
has been made contrary to the provisions of the said Act and in violation of
the terms of clause 4 of the tenancy agreement dated 12.1.1959 which clearly
prohibits such subletting of the tenanted premises without the written
permission of the landlord. [615 B-F] Sabhayanidhi Virudhunagar Ltd. v. A.S.R.
Subrahamanya Nadar & Ors., 1951 A.I.R. Madras p. 209 and Parasaram Harnand
Rao v. Shanti Prasad Narinder Kumer Jain & Anr., [1980] 3 S.C.R. p. 444,
referred to.
Devarajulu Naidu v. Ethirajavalli Thyaramma,
[1949] 2 M.L.R. p. 423, held inapplicable.
Venkatarama Iyer v. Renters Ltd., [1951] II
M.L.R. p.
57 approved.
CIVIL APPELLATE JURISDICTION: Civil Appeal No.
1923 of 1976.
From the Judgment and Order dated 23rd April,
1976 of the Andhra Pradesh High Court in Civil Revision Petition No.
684 of 1974.
U.R. Lalit, D.N. Mishra and Miss Ratna Kapoor
for the Appellants.
A.Subba Rao for the Respondents.
The Judgment of the Court was delivered by
610 B.C. RAY, J. This appeal by way of certificate granted by the High Court of
Andhra Pradesh at Hyderabad under Article 133 of the Constitution of India is
against the judgment and decree in Civil Revision Petition No. 684 of 1974 made
on 23rd of April, 1976 and it raises an important question of law, i.e. whether
the voluntary amalgamation of the first and second appellants companies amounts
to a transfer of the first appellant's right under the lease within the meaning
of s. 10 (ii)(a) of Andhra Pradesh Buildings (Lease, Rent & Eviction)
Control Act, 1960.
The front corner portion of the premises
bearing No. 8092/1/2 (new No. 5-1-1-) situated at Rashtrapati Road at
Secundrabad was let out on January 12, 1959 to M/s General Raio &
Appliances Co. (P) Ltd., the first appellant, on a monthly rent of Rs. 200 on
the basis of the rental agreement dated January 12, 1959 (Exhibit P-6) executed
by the first appellant. Clause 4 of the said agreement provides that the tenant
shall not sub-let the premises or any portion thereof to anyone without the
written consent of the landlord. The respondent-landlord M.A. Khader issued a
notice dated December 26, 1968 to the tenant-appellant No. 1, M/s. General
Radio and Appliances (P) Ltd. terminating the tenancy on the ground of
subletting and/or transfer and assignment of the interest of the Appellant No.
1 to the Appellant No. 2. Thereafter on April 7, 1969 the Rent Control Case No.
96 of 1969 was filed by the respondent- landlord for eviction of the
Appellanttenant on two grounds, i.e. (i) unauthorised subletting of the
premises by the first appellant and (ii) wilful default in payment of rent from
October 7, 1968 to April 7, 1969. The appellants Nos. 1 and 2 filed a joint
counter contending that there was neither subletting, nor assignment of the
tenancy rights by the first appellant to the second appellant, i.e. the first
appellant company was amalgamated with the second appellant company by
operation of law under the scheme of amalgamation and order of the High Court
of Bombay under ss. 391 and 394 of the Companies Act, 1956 and that the
judgment of the Bombay High Court was judgment 'in Rem' and it was binding on
the petitioner even though he was not a party to the proceedings. It was
further contended therein that by reason of order of the Bombay High Court all
the property rights and powers of every description including tenancy right
held by the M/s. General Radio Appliance (P) Ltd., the 611 appellant No. 1,
have been blended with the second appellant company, M/s. National Ekco Radio
and Engineering Co. Ltd., and that there was no wilful default in payment of
rent. The application for eviction should, therefore be dismissed.
Two witnesses were examined on behalf of the
landlord and three witnesses were examined on behalf of the tenant.
The Rent Controller, Secunderabad, on
consideration of evidences on record held that the appellant No. 1 company has
sublet the premises to the appellant No. 2 company without written consent of
the landlord, as the amalgamation of the first appellant-company with the
second appellant- company amounted to subletting or assignment. It was further
held that there was wilful default in payment of rent for the period in
question. The Rent Controller, therefore, allowed the application and directed
the appellants to vacate and deliver vacant possession of the suit premises under
their occupation to the landlord-petitioner within a period of three months
from the date of the order.
Against this judgment and decree an appeal
being Appeal No. 406 of 1972 was preferred before the Chief Judge, city Small
Causes Court, Hyderabad. On 29.10.75 the Chief Judge, City Small Causes Court,
Hyderabad after hearing the parties held that though the appellant No. 1
company voluntarily sponsored the scheme of amalgamation, the ultimate power to
sanction or not to sanction it rested with the High Court.
The scheme of amalgamation though proposed by
appellant No. 1 company voluntarily yet it became binding and enforceable on
all the parties only when it was made a rule of the court. It was, therefore,
held that the transfer of assets and liabilities including the leasehold
interest of appellant No. 1 company to appellant No. 2 company took place by
virtue of the order of the court. It was held that such a transfer of assets
being an involuntary one did not amount to assignment of lease by appellant No.
1 company to appellant No. 2 company and as such it did not violate the terms
of the lease. By amalgamation of appellant 1 company with appellant 2 company,
the appellant 1 company is not wound up but it is merely blended with the other
company. It was also held that there was no wilful default on the part of the
tenant to pay the rent for the period mentioned in the petition inasmuch as in
spite of the tender of the rent the respondent-landlord 612 refused to accept
the same and to grant receipt in the name of appellant No. 2 company. The
appeal was, therefore, allowed and the order of the Rent Controller was set
aside dismissing the eviction petition with costs.
Against this judgment and order, an
application in revision being Civil Revision Petition No. 684 of 1974 was filed
in the High Court of Judicature of Andhra Pradesh, Hyderabad. On April 23, 1976
the said Revision Application was allowed and the judgment and decree of the
Appellate Court was set aside on restoring the decision of the Rent Controller.
It was held that the amalgamation of appellant No. 1 company with appellant No.
2 company on the basis of application made by the appellant No. 1 company by
submitting a scheme which was duly approved and sanctioned by the High Court of
Bombay was not an involuntary one and this order of amalgamation indicated
transfer of tenancy right without any notice or opportunity to the landlord. It
is thus hit by the provision of s. 10(ii)(a) of the Andhra Pradesh Buildings
(Lease, Rent and Eviction) Control Act, 1960.
Against this judgment and order the instant
appeal by way of certificate granted by the High Court of Andhra Pradesh has
been preferred. The only question which falls for consideration in this appeal
is whether in view of the order made by the High Court of Bombay on 27.3.1968
sanctioning the scheme of amalgamation proposed by the appellant No. 1 company
under ss. 391 and 394 of the Companies Act in Company Petition No. 4 of 1968
and the subsequent transfer of tenancy right in the suit premises and vesting
of the same in the 2nd appellant can be deemed to be subletting of the tenancy
right of the appellant No. 1 or transfer or assignment of interest in the
tenanted premises of the appellant No. 1 to the appellant No. 2 within the
meaning of S. 10(ii)(a) of the said Act. The appellant No. 1 General Radio and
Appliances (P) Ltd.admittedly took the premises in question on the basis of an
agreement dated 12th of January, 1959 duly executed by him in favour of the
landlord-respondent at a monthly rent of Rs. 200 for a period of eleven months
commencing from 7th January 1959. Clause 4 of the said agreement is in the
following terms :
"That they shall not sublet the said
premises or 613 any portion thereof to anyone without the written consent of
the landlord." On January 9, 1968 the appellant No. 1 M/s General Radio
and Appliances (P) Ltd., filed the Company Petition No. 4 of 1968 in the High
Court of Bombay under s. 394 of the Companies Act for sanction of a scheme of
amalgamation with M/s National Ekco Radio & Engineering Co. Ltd., M/s. General
Radio & Appliances (P) Ltd. was shown as transferor Company and the National
Ekco Radio and Engineering Co. Ltd.
was shown as a transferee company in the said
petition. The High Court of Bombay by order dated 28th March, 1968 sanctioned
the scheme of amalgamation. It is pertinent to refer here to the relevant
portions of the scheme which are as follows :
"With effect from Ist day of January
1967 the undertaking and all the property, rights, powers of every description
including all leases and tenancy rights, industrial, import and all other
licences, quota rights of General Radio & Appliances (P) Ltd. (hereinafter
called the transferor company) without further act or deed be transferred and
vested or deemed to be transferred and vested in the National Ekco Radio &
Engineering Co. Ltd. (hereinafter called the transferee company) etc." It
has been urged on behalf of the appellant that the amalgamation of M/s General
Radio & Appliances (P) Ltd., 1st appellant with the 2nd appellant company
is involuntary one, which has been brought into being on the basis of the order
of the High Court of Bombay made under ss. 391 and 394 of the Companies Act.
The first appellant company has not been wounded up and or liquidated, but it
has been merely blended with the 2nd appellant on the basis of the order of the
court. As such there has been no subletting by the 1st appellant company to the
2nd appellant company of the tenancy right of the 1st appellant in respect of
the suit premises, nor there has been any transfer or assignment of interest of
the 1st appellant in respect of its tenancy right in the premises in question
in favour of the 2nd appellant within the meaning of S. 10(ii)(a) of the said
Act. It has been further urged in this connection that the 1st appellant
company by virtue of the scheme of amalgamation which was sanctioned by the
Bombay 614 High Court merely becomes a devision of the 2nd appellant company
i.e. M/s. National Ekco Radio and Engineering Company Ltd. In other words, it
was tried to be contended that the 1st appellant company has not become
extinct, but it has been merged and or blended in the 2nd appellant company. In
order to determine this issue it is relevant to set out herein the provisions
of S. 10(ii)(a) of the Andhra Pradesh Buildings (Lease, Rent and Eviction)
Control Act, 1960 (A.P. Act No. 15 of 1960). Section 10(ii) runs as follows :
"A landlord who seeks to evict his
tenant shall apply to the Controller for a direction in that behalf. If the
Controller, after giving the tenant reasonable opportunity of showing cause
against the applicant is satisfied :
(ii) that the tenant has, in Andhra area
after the commencement of the Hyderabad House Rent Control Order of 1953 Fasli
without the written consent of the landlord ;
(a) transferred his right under the lease or
sublet the entire building or any portion thereof, if the lease does not confer
on him any right to do so." Section 2(ix) defines tenant :
"'tenant' means any person by whom or on
whose account rent is payable for a building and includes the surviving spouse,
or any son or daughter, of a deceased tenant who had been living with the
tenant in the building as a member of the tenant's family up to the death of
the tenant and a person continuing in possession after the termination of the
tenancy in his favour, but does not include a person placed in occupation of a
building by its tenant, etc." In the instant case the appellant No. 1 i.e.
M/s General Radio and Appliances Co. (P) Ltd. is undoubtedly the tenant having
taken lease of the premises in question from the respondent landlord by
executing a rent agreement dated 12th January, 1959 at a rental of Rs. 200 per
month, the tenancy 615 commencing from 7th day of January 1959. On the basis of
the sanction accorded by order of the High Court of Bombay made on 27th March
1968 sanctioning the scheme of amalgamation in Company Petition No. 4 of 1968
filed by the 1st appellant, all the property, rights and powers of every
description including all leases and tenancy rights etc. of the 1st appellant were
transferred to and vested or deemed to be transferred and vested in the 2nd
appellant M/s National Ekco Radio and Engineering Co. Ltd. It also appears that
the appellant No. 1 company stood dissolved from 16th of April, 1968. This
clearly goes to show that the General Radio and Appliances (P) Ltd., the tenant
company has transferred all its interest in the tenanted premises in favour of
the appellant No. 2 i.e National Ekco Radio and Engineering Co. Ltd. (the
transferee company). The order of amalgamation has been made on the basis of
the petition made by the transferor company in Company Petition No. 4 of 1968
by the High Court of Bombay. As such it cannot be said that this is an
involuntary transfer effected by order of the court.
Moreover the 1st appellant company is no
longer in existence in the eye of law and it has effected itself for all
practical purposes. The 2nd appellant company i.e. transferee company is now
the tenant in respect of the suit premises and the 1st appellant company has
transferred possession of the suit premises in favour of the 2nd appellant
company. There is undoubtedly no written permission or consent of the
respondent landlord to this transfer of tenancy right of the 1st appellant
company as required under S. 10(ii)(a) of the said Act. Moreover even it is
assumed to be a subletting to the 2nd appellant by the 1st appellant, such
subletting has been made contrary to the provisions of the said Act and in
violation of the terms of clause 4 of the tenancy agreement (Exhibit P-6) which
clearly prohibits such subletting of the tenanted premises without the written
permission of the landlord. The Andhra Pradesh Building (Lease, Rent and
Eviction) Control Act, 1960 is a special Act which provides for eviction of
tenants on certain specific grounds mentioned in S. 10 of the said Act. There
is no express provision in the said Act that in case of any involuntary
transfer or transfer of the tenancy right by virtue of a scheme of amalgamation
sanctioned by the court by its order under ss. 391 and 394 of the Companies Act
as in the present case, such transfer will not come within the purview of S.
10(ii)(a) of the said Act. In other words such a transfer of tenancy right on
the basis of 616 the order of the court will be immune from the operation of
the said Act and the transferee tenant will not be evicted on the ground that
the original tenant transferred its right under the lease or sublet the
tenanted premises or a portion thereof. It is important to note in this
connection the definition of tenant as given in S. 2(ix) of the said Act which
provides specifically that a tenant does not include a person placed in
occupation of a building by its tenant. On a plain reading of this provision it
is crystal clear that any person placed in occupation of a building by the
tenant cannot be deemed or considered to be a tenant in respect of the premises
in which the said person is to be in possession within the meaning of the said Act.
Therefore, the 2nd appellant i.e. National Ekco Radio and Engineering Co. Ltd.
the transferee company who has been put in
possession of the tenanted premises by the transferor tenant General Radio and
Appliance Co. (P) Ltd. cannot be deemed to be tenant under this Act on the mere
plea that the tenancy right including the leasehold interest in the tenanted
premises have come to be transferred and vested in the transferee company on
the basis of the order made under ss. 391 and 394 of the Companies Act.
The effect of an order under S. 153(A) of the
Companies Act 1913 which corresponds to ss. 391 and 394 of the Companies Act,
1956 has been very succinctly stated in the case of Sahayanidhi Virudhungar
Ltd. v. A.S.R. Subrahmanya Nadar & Ors., 1951 A.I.R. Madras p. 209. Section
153(A) of the Companies Act has been enacted with a view to facilitate
arrangements and compromise between a Company and its creditors or shareholders
which involve a transfer of its assets and liabilities to other companies as
part of such agreement. If any such scheme or arrangement is sanctioned by
court, the court is empowered by the section to make provisions by its order
sanctioning the arrangement or any subsequent order, for the transfer of the
assets and liabilities of a company in liquidation to another company styled in
the section as transferee company. Where an order of court made under the
section provides for the transfer of the assets and liabilities of a company in
liquidation to another company, the assets are, by virtue of that order,
without more, transferred to and vest in the transferee company and the
liabilities of the former company are also cast upon the transferee company.
Under the ordinary law of contract while 617 assets are assignable, liabilities
under contracts or duties arising thereunder are not assignable, but the effect
of S.
153(A) is to some extent to override the
ordinary law. Thus by an order sanctioning amalgamation of the rights, interest
and liabilities of the transferor company are transferred and vested in the
transferee company. It appears that by the order of amalgamation, the interest,
rights of the transferor company in all its properties including leasehold
interest and tenancy rights are transferred and vested in the transferee
company.
It has been urged that the effect of
amalgamation is analogous to that of a man who enters with partership with
another. The two companies do not become jointly liable to their respective
separate creditors and neither becomes liable for the debts of the other. The
general effect of amalgamation as provided in Halsbury's Laws of England (3rd
Edition) Vol. 22, P. 432 has been referred to in this connection and it has
been submitted that by the amalgamation there has been no subletting as the 1st
appellant company has co-interest in transferee company, the 2nd appellant
company herein. The case of Devarajulu Naidu v. Ethirajavalli Thyaramma, [1949]
2 M.L.R. p. 423 has been referred to in this connection. In that case the
original tenancy was in favour of three persons who were partners in the firm
and after dissolution of the partnership firm one of the partner was allowed to
wind up the affairs of the partnership and thereafter he was allowed to use the
demised premises for his sole business. The question arose whether in such case
the landlord was entitled to eviction of that partner from the tenanted
premises on the ground that there was subletting. It was held in the facts of
that case that the original tenancy being in favour of three persons who were
partners in the firm and act on the part of the two partners after dissolution
of the firm to allow one of the parterns to use the premises for his sole
business could not amount to a transfer or subletting of the premises to the
petitioner. It has been observed as follows :
"This act on the part of the two partners
other than the petitioner cannot amount to a transfer or sub-letting of the
premises to the petitioner. It is true that the Courts in England have taken up
an extreme view that even when one of two partners 618 after the dissolution of
the partnership assigns to the other partner the interest of the partnership in
premises which had been taken on lease by the partnership, it would amount to a
breach of the covenant prohibiting an assignment of the lease without the
consent of the lessor.
But this Court was not inclined to apply this
doctrine to Indian conditions. In Koragalva v.
Jakri Beary, (1926, 52 M.L.J. 8) Devadoss, J.
held that the transfer by a co-lessee in favour of another lessee of his right
in the lease would not be a breach of a covenant against the assignment without
the consent of the landlord." This decision has got no application to the
instant case inasmuch as in that case the only question involved was whether
the transfer by co-lessee in favour of another lessee of his rights would be a
breach of covenant against assignment without the consent of the landlord.
We have already stated hereinbefore that the
1st appellant company, the tenant, has transferred their interest in the
tenanted premises to the appellant No. 2 company on the basis of the order made
by the High Court of Bombay in Company Petition No. 4 of 1968 sanctioning the
scheme submitted to it by the transferor company. We have also held that this
is not an involuntary transfer by operation of law, but a transfer of the interest
of the tenant company on the basis of their application made before the said
High Court in the said Company Petition.
Furthermore, we have also held that the
Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 which is
a special Act provides specific grounds for termination of a tenancy and
eviction of the tenant in S. 10(ii)(a) i.e. on the ground of subletting and/or
transferring the interest of the tenant either in whole or any part of the
tenanted premises to another person. Thus the Act prohibits in specific terms
both subletting as well as the transfer or assignment of the interest of the
tenant. Moreover clause 4 of the rent agreement executed by the 1st appellant
expressly prohibits subletting of the tenanted premises without the express
consent of the landlord. The transferor company in this case has undoubtedly
been dissolved and the company has ceased to exist for all practical purpose in
the eye of law.
619 All the interest of the transferor
company including possession in respect of the tenanted premises have been
transferred to the transferee company in contravention of the provisions of the
said Act as well as in contravention of the terms and conditions of the said
rent agreement thereby making the transferee company liable to be evicted from
the tenanted premises.
It has been observed by Subba Rao, J. in the
case of Venkatarama Iyer v. Renters Ltd., [1951] II M.L.R. 57 as follows :
"The Madras Buildings (Lease and Rent)
Control Act applies not only to residential and non- residential buildings, but
also to same buildings used for both purposes. If a Company doing business in a
particular premises (taken on lease) transfers its business as a going concern
to another company and also the net assets for consideration and thereafter the
transferee company takes over the business and carries on business in the
premises let out to the former company it cannot be said that there was no
transfer of the right of the former company under the lease to the latter
company. On such transfer the tenant is liable to be evicted." It is
pertinent to mention in this connection the decision of this court in Parasaram
Harnand Rao v. Shanti Prasad Narinder Kumar Jain & Anr., [1980] 3 S.C.R. p.
444.
In this case the appellant landlord executed
a lease in respect of the disputed premises in favour of respondent No. 2 for
three years on 1.4.1942. In 1948 the appellant landlord filed a suit for
eviction of the tenant for non- payment of the rent and for conversion of user
of the premises. The suit for possession was dismissed, but a decree for
arrears of rent was passed and it was held that Laxmi Bank was the real tenant.
The Bombay High Court subsequently made an order that the Bank be wound up and
in the winding up proceedings, the High Court appointed an official liquidator
who sold the tenancy right to the respondent No. 1 in 1961. The sale was
subsequently confirmed by the High Court and the respondent No. 1 took
possession of the premises on 24.2.1961. The landlord 620 appellant filed an application
under the Delhi Rent Control Act for eviction of the Laxmi Bank and a decree
for eviction was passed in favour of the appellant. Thereafter respondent No. 1
filed a suit for declaration that he was tenant of the landlord. The suit was
dismissed and the appeal against that order also failed. The respondent No. 1,
however, filed an application for recalling the warrant of possession issued by
the court in pursuance of the decree in favour of the appellant. This
ultimately came up in second appeal and the High Court allowed the Rent
Controller's order allowing recalling of warrant of possession. On appeal by
special leave this Court held that the amplitude of S. 14(b) of the Delhi Rent
Control Act was wide enough not only to include any sublease but even an
assignment or any other mode by which possession of the tenanted premises is
parted. In view of the wide amplitude of s. 14(b), it does not exclude even an
involuntary sale.
On a conspectus of all these decisions
referred to hereinbefore the irresistible conclusion follows that there has
been a transfer of the tenancy interest of appellant No. 1 in respect of the
premises in question to the appellant No. 2, subsequently renamed appellant No.
3 M/s. National Radio Electronics Co. Ltd. in utter contravention of the
provisions of S. 10(ii)(a) of the said Act as well as of the terms and
conditions of clause 4 of the rent agreement dated 12.1.1959 executed by 1st
appellant i.e. M/s General Radio and Appliances (P) Ltd. in favour of
respondent landlord.
We, therefore, affirm the judgment and order
passed by the High Court of Judicature Andhra Pradesh and dismiss this appeal.
There will, however, be no order as to costs.
S.R. Appeal dismissed.
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