High CourtDivision BenchSpecial Leave Petition dismissed; no order as t...

Md. Salim v. Md. Ali

Case / Petition Number:Special Leave Petition No. 420 of 1987
Neutral Citation:(1987) 3 SCR 1087

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Sabyasachi Mukharji
  • G. L. Oza
Judgment Date
1987-08-26
Court Decision / Holding
The Special leave petition is dismissed.
Final Disposition
Special Leave Petition dismissed; no order as to costs.

Parties to the Case

Appellants / Petitioners

  • Md. Salim

Respondents

  • Md. Ali

Legal Representation & Advocates

Counsels for Petitioners

  • • R. B. Mehrotra

Counsels for Respondents

  • • D. S.K. Bhattacharya

Case Synopsis & Summary

Md. Salim v. Md. Ali concerns whether the petitioner, who participated in a 1966 arrangement with his landlord to manage a shop, was a sub-tenant and thus bound by an eviction decree against the tenant. The petitioner contends that, with the landlord’s knowledge and consent, he was effectively a sub-tenant and should not be bound by a decree in which he was not a party. The High Court of Calcutta held that the petitioner was not a sub-tenant and thus bound by the eviction decree, since there was no sub-tenancy. The Supreme Court dismissed the Special Leave Petition and affirmed the High Court’s view. The Court found that the memorandum dated 1 September 1966 between Abdur Rahaman and Md. Salim, with the landlord as an attesting witness, was an arrangement for managing the business rather than a sub-tenancy, noting there was no exclusive possession transferred and the premises were not parted with possession. Although the landlord’s knowledge was present, it did not amount to consent to sub-tenancy. The Court also referred to section 2(4) of the West Bengal Premises Tenancy Act, 1956, to support the decision. A decision in Mis. Girdhar Lal & Sons v. Balbir Nath Mathur was cited and distinguished on the facts. The petition is accordingly dismissed, with no order as to costs.

Provisions of Law Cited

West Bengal Premises Tenancy Act, 1956, Section 2(4)

Legal Doctrines & Maxims

  • Sub-tenancy requires transfer of exclusive possession
  • Consent/knowledge of landlord does not automatically create sub-tenancy; management agreements may not constitute sub-tenancy

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that he was a sub-tenant with the knowledge and consent of the landlord and therefore the eviction decree should not bind him, since he was not a party to the suit. He argues that there should have been a separate suit and he should have been joined, as his status as sub-tenant would render him protected. He relies on the 1966 memorandum, and the landlord's signature as indicative of the landlord's consent to sub-letting.

Contentions of Respondents

The landlord contends that the 1966 memorandum was an arrangement for management of the business and not a sub-tenancy. Although the landlord knew of the arrangement, there was no exclusive possession or transfer of tenancy rights. Hence, there was no sub-tenancy bound by the eviction decree, and consent alone does not constitute a sub-tenancy.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Mis. Girdhar Lal & Sons v. Balbir Nath Mathur and Others[1968] 2 SCC 237DistinguishedThe cited decision held that consent of landlord could validate sub-tenancy in a different context; the present case lacks a sub-tenancy, so the comparison is distinguished.

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Extracted Judgment Text

Exact text extracted from official judgment records.

MD. SALIM A _v._ MD. ALI SINCE DECEASED THROUGH HIS LRS. MD. ASSIM & ORS. AUGUST 26, 1987. ~ B [SABYASACHI MUKHARJI AND G.L. OZA, JJ.] #### t' [SABYASACHI MUKHARJI AND G.L. OZA, JJ.] _West Bengal Premises Tenancy Act, 1956-Definition of 'tenant' in_ _section 2(4) thereof-Whether the petitioner was a sub-tenant not bound_ _by decree of eviction against the tenant ._ ###### ... c y This petition for special leave to appeal was flied against the judgment and order of the High Court, whereby the High Court had held that the petitioner was not a sub-tenant and as such he was bound by the decree passed against the tenant for eviction. The petitioner challenged before this Court the finding of the High Court and contended that he was a sub-tenant with the knowledge and consent of the landlord and as [D ] -"( such the decree of eviction passed against the tenant did not bind him because in the suit he had not been a party. He should have been made a party to the suit. party to the suit. Dismissing the petition, the Court, , E ## ....._ .. HELD: The High Court was right. The attention of the Court was 1 HELD: The High Court was right. The attention of the Court was drawn to an agreement of Ist September, 1966, with the contention that that was an arrangement of sub-letting and in that document one of the attesting witnesses was the landlord himself, and, therefore, the subletting was done with the knowledge and consent of the landlord and, as such, was valid. [I088G] F One of the attesting witnesses to the said agreement was Md. Ali, the respondent herein, who was at the relevant time the landlord, now represented by his legal representatives in this petition. On a construction of the different clauses of the aforesaid document, the Court ~ was of the opinion that this was an argreement of the business of the G tenant. It was not and could not be construed as an agreement of subtenancy. There was no parting of possession of the premises. There was only a right to "manage" the business, looking after the 1,xisting business with fixed monthly payments and this could not be construed as an agreement of sub-tenancy. Therefore, though the landlord had knowledge of the document, it could not be said to be consent to an agreement H 1087 1088 SUPREME COURT REPORTS [1987] 3 S.C.R. A of sub-tenancy. The attention of the Court was drawn to section 2(4) on the expression 'tenant' in the West Bengal Premises Tenancy Act, 1956. That definition did not affect the position of the petitioner in this case as there was no sub-tenancy in the case. [1090C-E, G] _)_ B c The High Court was right in the view it took. [1088F] _Mis. Girdhar Lal_ & _Sons_ v. _Balbir Nath Mathur and others,_ [1968] 2 S.C.C. 237, referred to. CIVIL APPELLATE JURISDICTION: Special Leave Petition No. 4!20of 1987. From the Judgment and Order dated 24. 12.1986 of the High Court of Calcutta in Civil Rule No. 676 of 1985. R.B. Mehrotra for the Petitioner. # D S.K. Bhattacharya for the Respondents. The Judgment of the Court was delivered by SABY ASA CHI MUKHARJI, J. This is a petition for special leave to appeal against an order and judgment of the High Court of E Calcutta dated 24th September, 1986. By the impugned judgment and ~ order the High Court has held that the present petitioner was not a .sub-tenant and as such he was bound by the decree passed against the tenant for eviction. The petitioner challenges that finding and contends that he was a sub-tenant with knowledge and consent of the _Y_ landlord and as such it does not bind him because in the suit he was not F a party. There should have been a separate suit according to him. He should have been made a party to the suit. The High Court has held against this contention. We are of the view that the High Court was right. Our attention was drawn by Mr. Kacker to the agreement of 1st of September, 1966, contending that this was an arrangement of subletting and in that document one of the attesting witness was landlord G himself. Therefore, this is done with the knowledge and consent of the ~ landlord and as such valid. The agreement states, _inter alia_ as follows: H "THIS MEMORANDUM OF AGREEMENT made this the !st September 1966 BETWEEN ABDUR RAHAMAN son of late Nabi Buksh by religion Muslim, by profession business of 51/I, Watgunj Street, P.S. Watgunj ### "' -4 #####,., # _"{_ MD. SALIM _v._ MD. ALI [MUKHARJI, J.] 1089 District 24-Parganas, Calcutta-23, hereinafter called the FIRST PARTY OF THE ONE PART AND MD. SALIM son of Waris Ali, by religion Muslim by profession business residing at 2/3, Mominpore Road Police Station Ekbalpore District 24-Parganas, Calcutta-23 hereinafter called the SECOND PARTY OF THE OTHER PART WHEREAS fHE FIRST PARTY having taken settlement of a shop room. its landlord Md. Mea has been running a business with the stock-in-trade as described in the schedule below AND WHEREAS THE FIRST PARTY feels it inconvenient to look after and manage the same personally at present AND WHEREAS THE SECOND PARTY is willing to manage the said business on behalf of the FIRST PARTY on terms and conditions hereinafter appearing; NOW THIS MEMORANDUM WITNESSES: That the first party will remain the proprietor of the aforesaid business and the business Licence shall stand in A B c ' the name of the FIRST PARTY and the costs thereof shall D be paid by the SECOND PARTY: That house rent of the shop room shall be paid by the FIRST PARTY in his name; That the SECOND PARTY run the business in the shop room with the stock-in-trade supplied by the First Party as described in the schedule as E also with other articles and stock-in-trade to be supplied by him and manage the affairs of the said business under his personal supervision for two (2) years with effect from J.9.66 to 31.8.66 on behalf of the First Party and will restore the business alongwith the said articles in good condition with the expiry of the term of this contract; That the F second party will pay to the First Party a sum of Rs.'iO (Rupees Ninety) only per month payable within the 7th day of each month for which it becomes payable. That the SECOND PARTY will be entitled to appropriate the entire issues and profits arising out of the business in its entirely subject to the aforesaid payment to be made to G FIRST PARTY and the costs of Licensee fees. That the SECOND PARTY SHALL not encumber the business in any way and shall not be entitled to raise any loan against the business and the business shall not be liable for any such, debt, if any, incurred by the SECOND PARTY That the SECOND PARTY shall also bear all incidental costs H 1090 SUPREME COURT REPORTS [1987] 3 S.C.R. A for carrying out the business properly. That if the SECOND PARTY fails or neglects to pay the dues reserved under this contract for two months or violates any of the conditions mentioned herein then this agreement shall be treated as cancelled and of no effect and the First partry will be entitled to ~e-enter the shop room and business and .. B to take khas possession of the same along with the articles mentioned in the schedule." One of the attesting witness to the said agreement was Md. Ali, the respondent herein, who was at the relevant time landlord and is now represented by his legal representatives to this application. On a C construction of the different clauses of the aforesaid document we are of the opinion that this was an agreement for management of the business of the tenant. It was not and cannot be construed as an agreement of sub-tenancy. There was no exclusive possession with the respondent. There was no parting of possession of the premises, there _D_ was only a right to "manage" the business, looking after the existing business with fixed monthly payments and this cannot be construed as an agreement of sub-tenancy. Therefore, though the landlord had knowledge of the document and as such can be said to have consented to the bargain it cannot be said to be consent to an agreement of sub-tenancy. # y [-] E p G Our attention was drawn to the decision of this Court in _Mis_ _Girdhar Lal_ _&_ _Sons_ v. _Balbir Nath Mathur and Others,_ [1968] 2 SCC 237 where considering similar provision of Delhi Rent Control Act, 1958, it was held that where the landlord had in fact consented to the sub-tenancy and as such the sub-tenancy was valid and landlord was bound by it. But in the present case, there was no sub-tenancy created by the agreement mentioned herein. Hence the consent and knowledge of the landlord do not help. Our attention was also drawn to section 2(4) on the expression 'tenant' in West Bengal Premises Tenancy Act, 1956. That definition does not affect the position of the petitioner in the instant case as there was no sub-tenancy in the present case. In view of the above, we are of <ile opinion that the High Court was right in the view it took. The Special leave petition is accordingly dismissed. There will be no order as to costs. S.L. Petition dismissed.