Bombay High Court Allows Second Appeal in Eviction Suit — Tenant's Subletting Without Consent Justifies Decree for Possession. Lease Deed Clause Prohibiting Subletting and Assignment Without Landlord's Written Consent Enforced; Tenant's Alleged Partnership with Landlord's Son Not Proven.

High Court: Bombay High Court Bench: GOA In Favour of Prosecution
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Case Note & Summary

The case involves a second appeal filed by the defendants/appellants against a judgment and decree dated 21.3.2000 passed by the Additional District Judge-II, North Goa, Panaji, in Miscellaneous Appeal No. 68/2000. The original plaintiffs, Ashok Tukaram Naik Salgaonkar and Uday Tukaram Naik Salgaonkar, partners of M/s. Laxmi Moto Service, filed a suit for eviction against the original defendant, Datta Raghoba Sawant (since deceased, represented by legal representatives). The dispute pertains to a lease deed executed on 1.4.1985 between the plaintiffs and the defendant for a premises in Mapusa, Goa, for a period of five years. The lease deed contained a clause prohibiting subletting or assignment without the written consent of the lessor. The defendant, without obtaining such consent, entered into a partnership deed with the plaintiffs' son, Uday Tukaram Naik Salgaonkar, on 1.4.1986, thereby allegedly subletting/assigning the leasehold interest. The plaintiffs sought eviction on the ground of subletting/assignment without consent. The trial court decreed the suit, and the first appellate court confirmed the decree. The defendants filed the present second appeal under Section 100 of the Code of Civil Procedure, 1908. The High Court framed substantial questions of law regarding the interpretation of the lease deed and the effect of the partnership on the lease. The court held that the partnership deed amounted to an assignment of the leasehold interest, as it gave the son control over the business and premises, and that the defendants had failed to prove that the plaintiffs had consented to the subletting/assignment. The court dismissed the appeal, confirming the decree for eviction.

Headnote

A) Lease - Subletting - Prohibition - Consent - The lease deed expressly prohibited subletting or assignment without the written consent of the lessor. The court held that the tenant's act of inducting the landlord's son as a partner without consent amounted to subletting/assignment, justifying eviction. (Paras 4-10)

B) Partnership - Lease - Assignment - The court held that the creation of a partnership by the tenant with the landlord's son, without the landlord's consent, constituted an assignment of the leasehold interest, as the partnership deed gave the son control over the business and premises. (Paras 11-15)

C) Civil Procedure Code - Second Appeal - Section 100 - Substantial Question of Law - The court framed substantial questions of law regarding the interpretation of the lease deed and the effect of the partnership on the lease. (Para 1)

D) Transfer of Property Act - Section 108 - Lease - Subletting - The court applied the principle that a lessee cannot sublet or assign without the lessor's consent unless the lease deed provides otherwise. (Paras 4-10)

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Issue of Consideration

Whether the appellants/defendants are entitled to protection against eviction on the ground that the lease deed permitted subletting or assignment without the consent of the lessor, and whether the alleged partnership between the tenant and the landlord's son constitutes a valid defence.

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Final Decision

The High Court dismissed the second appeal, confirming the decree for eviction passed by the trial court and affirmed by the first appellate court.

Law Points

  • Lease
  • Subletting
  • Assignment
  • Consent
  • Partnership
  • Eviction
  • Specific Performance
  • Injunction
  • Civil Procedure Code
  • Section 100 CPC
  • Section 108 Transfer of Property Act
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Case Details

2010 LawText (BOM) (09) 97

Second Appeal No.68 of 2000

2010-09-15

A.P. Lavande, J.

Mr. Shivan Dessai for Appellants; Mr. S.D. Lotlikar, Senior Advocate with Mr. P Lotllikar for Respondents

Datta Raghoba Sawant (since deceased through L.Rs.) and others

Ashok Tukaram Naik Salgaonkar and Uday Tukaram Naik Salgaonkar

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Nature of Litigation

Civil suit for eviction based on subletting/assignment without consent.

Remedy Sought

Eviction of the tenant and possession of the premises.

Filing Reason

The tenant sublet/assigned the leasehold interest to the landlord's son without written consent, violating the lease deed.

Previous Decisions

Trial court decreed eviction; first appellate court confirmed the decree.

Issues

Whether the lease deed prohibited subletting or assignment without the lessor's written consent? Whether the partnership deed between the tenant and the landlord's son constituted subletting/assignment? Whether the defendants proved that the plaintiffs consented to the subletting/assignment?

Submissions/Arguments

Appellants argued that the lease deed did not prohibit subletting or assignment, and the partnership was not a sublease. Respondents argued that the lease deed expressly prohibited subletting/assignment without consent, and the partnership amounted to an assignment.

Ratio Decidendi

A lessee cannot sublet or assign the leasehold interest without the lessor's consent if the lease deed prohibits it. The creation of a partnership with a third party, giving that party control over the business and premises, amounts to an assignment of the lease.

Judgment Excerpts

The lease deed expressly prohibited subletting or assignment without the written consent of the lessor. The partnership deed gave the landlord's son control over the business and premises, amounting to an assignment.

Procedural History

The original plaintiffs filed a suit for eviction in the trial court, which decreed the suit. The defendants appealed to the Additional District Judge-II, North Goa, Panaji, who dismissed the appeal. The defendants then filed the present second appeal under Section 100 of the Code of Civil Procedure, 1908.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100
  • Transfer of Property Act, 1882: Section 108
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