Supreme Court Upholds Rent Controller's Decision on Deemed Vacancy in Urban Property Dispute — Employee's Occupation Without Consent Constitutes Deemed Vacancy.

In Favour of Accused
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Case Note & Summary

The dispute arose over premises in Rae Bareli rented to an Aushadhalaya in 1946 or 1947. After the Aushadhalaya ceased operations in 1976, an employee, Hirday Ranjan Chakraborty, continued to occupy the premises without the landlord's consent. The appellant, brother-in-law of the landlords, applied under Section 12 of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, claiming the premises had fallen vacant. The Rent Controller agreed, declaring the premises vacant, but the High Court reversed this decision, considering the employee as a tenant. The Supreme Court found the High Court's reasoning flawed, affirming the Rent Controller's decision that the premises were deemed vacant as they were occupied by someone other than the tenant without consent. The court emphasized that the tenant had long left, and the employee's occupation did not establish a new tenancy. The appeal was allowed, restoring the Rent Controller's order and setting aside the High Court's judgment.

Headnote

A) Property Law - Deemed Vacancy - Definition and Conditions - U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, Section 12 - The court held that the premises were deemed vacant as they were occupied by a person other than the tenant without the landlord's consent, despite the tenant's employee continuing to occupy the premises. The High Court's conclusion that the employee was a tenant was erroneous as the tenant had ceased to occupy the premises since 1976 (Paras 431-432).

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Issue of Consideration

Whether the premises can be deemed vacant when occupied by an employee of the tenant company without the landlord's consent.

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Final Decision

The Supreme Court allowed the appeal, restoring the Rent Controller's order declaring the premises vacant and setting aside the High Court's judgment.

Law Points

  • Deemed vacancy
  • tenant's family
  • consent of landlord
  • occupation rights
  • U.P. Urban Buildings Act
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Case Details

1988 LawText (SC) (10) 16

Civil Appeal No. 3773 of 1988

1988-10-05

Sabyasachi Mukharji, Rangnathan, S.

1989 AIR 151, 1988 SCR Supl. (3) 426, 1988 SCC (4) 758, JT 1988 (4) 147, 1988 SCALE (2) 1511

R.K. Jain, R.B. Mehrotra, Pradeep Mishra, G.C. Mathur, K.P. Gupta

Girja Shankar Tiwari and Anr.

Hirday Ranjan Chakraborty and Anr.

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Nature of Litigation

Dispute over deemed vacancy of rented premises.

Remedy Sought

Appellant sought declaration of vacancy and allotment of premises.

Filing Reason

Claim that the premises had fallen vacant due to the tenant's absence.

Previous Decisions

Rent Controller declared premises vacant; High Court reversed this decision.

Issues

Whether the premises can be deemed vacant when occupied by an employee of the tenant company without the landlord's consent.

Submissions/Arguments

Appellant argued that the premises were vacant as the tenant had ceased to occupy them. Respondent contended that he was a tenant and had been paying rent.

Ratio Decidendi

The court held that the premises were deemed vacant as they were occupied by a person other than the tenant without the landlord's consent, affirming the Rent Controller's findings.

Judgment Excerpts

In our opinion, the deemed vacancy of the premises though not actually vacant, has happened. The High Court was in error in holding that the Aushadhalaya was a tenant through the petitioners.

Procedural History

The appellant filed an application before the Rent Control & Eviction Officer, which was granted. The High Court dismissed the appeal against this decision, leading to the Supreme Court appeal.

Acts & Sections

  • U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act: Section 12
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