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Bombay High Court

ALL INDIA TRAVEL SERVICES THR. ITS PARTNER SHRI. SUBHASH JAINversusASHOK K. UPADHAYAY

Decided
Disposal
Allowed

Holding

The benefit of Section 15‑A is available to an unregistered partnership firm occupying premises on the notified date, as Section 69(2) bars only the enforcement of contractual rights, not statutory rights.

Summary

All India Travel Services, an unregistered partnership firm, occupied a shop in Mayfair Building under a leave‑and‑license agreement dated 30‑May‑1966 and remained in possession on the statutory date of 1‑Feb‑1973. The firm registered later on 3‑Oct‑1973. The issue was whether the firm could claim the protection of Section 15‑A of the Bombay Rent Control Act, 1947 despite Section 69(2) of the Indian Partnership Act, 1932, which bars unregistered firms from suing to enforce contractual rights. The trial and appellate courts held the benefit unavailable, but the High Court reversed, reasoning that Section 69(2) only restricts enforcement of contractual rights, not statutory rights conferred by Section 15‑A. Consequently, the revision application was allowed, setting aside the lower courts’ orders and granting the relief sought by the applicant, while refusing a stay sought by the respondents.

Issues considered

  • Whether an unregistered partnership firm occupying premises on 1‑Feb‑1973 can avail the benefit of Section 15‑A of the Bombay Rent Control Act, 1947.
  • Whether Section 69(2) of the Indian Partnership Act, 1932 bars such a firm from enforcing the statutory right under Section 15‑A.
  • Whether the lower courts erred in interpreting the interaction between the two statutes.

Legislation cited

Subjects

  • tenancy
  • licensee
  • Section 15-A
  • unregistered partnership
  • statutory right
  • Bombay Rent Control Act
  • Indian Partnership Act
  • revision
  • leave and license agreement

Judgment

         Digitally
         signed by
         SUFIYAN
                               IN THE HIGH COURT OF JUDICATURE AT BOMBAY
         EHTESHAM
SUFIYAN
EHTESHAM SYED
                                      CIVIL APPELLATE JURISDICTION
SYED     Date:
         2026.09.22
         20:17:46
         +0530
                              CIVIL REVISION APPLICATION NO. 578 OF 2024

                      All India Travel Services
                      a Partnership Firm, having its
                      Registered Office at – 75-C,
                      Ground Floor, Shop, Mayfair Building
                      Veer Nariman Road, Bombay-400020
                      Represented by it Partnership
                      Shri. Subhash Jain                                   … Applicant
                                                                         (Original Plaintiff)


                                         VERSUS


                      1)     Ashok K. Upadhayay
                             (Deleted as per order dated 19.11.2024)
                             Indian, aged about 36 years
                             Residing at 52, Apurva
                             5, Nepeansea Road, Mumbai 400026.

                      2)     Miss. Manju Upadhayay
                             Indian, aged about 32 years
                             Residing at – Ivanhoe, G. Bhosale Marg
                             Mumbai 400 021.

                      3)     Sunil Upadhayay
                             Indian, aged about 24 years
                             Residing at – Ivanhoe, G. Bhosale Marg
                             Mumbai 400 021.

                      4)     Messrs Jamnagar Investment Co.
                             Pvt. Ltd. A private Limited
                             (Deleted as per order dated 19.11.2024)
                             Liability
                             Company having its registered office
                             at Union Co-operative Insurance Building,
                                                          1/12
                      CRA.578.2024.odt                                       Sufiyan Syed - PA
       23, Sir P. M. Road, Fort,
       Mumbai 400001.

5)     M/s. K. C. Chheda & Co.,
       A firm, registered under the
       Indian Partnership Act,
       having their office at
       Western India House, P. M. Road,
       Mumbai 400001.                                    … Respondents
                                                       (Original Defendants)

                              WITH
              INTERIM APPLICATION NO. 13110 OF 2025
                               IN
            CIVIL REVISION APPLICATION NO. 578 OF 2024
                              WITH
              INTERIM APPLICATION NO. 13111 OF 2025
                               IN
            CIVIL REVISION APPLICATION NO. 578 OF 2024


Senior Adv. G. S Godbole i/b. J. P. Thakkar, Advocate for the Applicant.
Adv. Rajesh Parab, Advocate for the Respondents.


                          CORAM : ARUN R. PEDNEKER, J.
                          RESERVED ON  : 18.08.2026
                          PRONOUNCED ON : 22.09.2026


JUDGMENT :

1.     The short issue that arises for consideration is whether the benefit of

Section 15(A) of the Bombay Rents, Hotel and Lodging House Rates

Control Act, 1947 (for brevity, Bombay Rent Control Act, 1947) can be

granted to an unregistered partnership firm in occupation of the tenanted

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CRA.578.2024.odt                                              Sufiyan Syed - PA
premises as a licensee as on the notified date of 01.02.1973 in view of the

bar contained in Section 69 (2) of the Indian Partnership Act, 1932.

2.     The facts giving rise to the above noted questions of law in brief is

summarized as under :

3.     That the Applicant partnership firm was unregistered when the leave

and license agreement was executed on 30.05.1966 between the tenant and

sub-tenant (Applicant) and the Applicant continued to be in occupation of

the tenanted premises on 01.02.1973 and throughout. The Applicant firm

was subsequently registered on 03.10.1973. Section 15-A of the Bombay

Rent Control Act, 1947, recognizes tenancy rights in favour of the person

who is in occupation of the leased premises as a licensee on the notified date

i.e. 01.02.1973.

4.     In the instant case, S. T. Upadhayay was the original tenant of the suit

premises. He expired on 30.09.1986. Defendant Nos. 1 to 3 are his legal

heirs and Defendant No. 4 is the original landlord of the suit building.

Defendant No. 5 is the present landlord who has purchased the suit building

from Defendant No. 4.

5.     The Applicant’s/Plaintiff’s case, in the plaint, is that the Applicant is a

registered partnership firm.     The Applicant claimed to be in exclusive

occupation and possession of the suit premises by virtue of leave and license

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CRA.578.2024.odt                                                 Sufiyan Syed - PA
agreement executed by Original tenant, S. T. Upadhayay in the year 1966 in

its favour. The Applicant was paying the license fees which was increased

from time to time and was Rs. 2,500/- per month at the time of filing of the

suit. The Plaintiff paid to the original tenant till September 1987, after the

death of the Original tenant to the Legal Representatives of the deceased

tenant i.e. Defendant No. 1 to Defendant No. 3. The Plaintiff was initially

doing business in the name and style of ‘All India Travel Services’ and now

carrying on the business as general Sales Agents of Iraq Airways.

6.     It is the case of the Plaintiff that some unknown persons tried to take

forcible possession of the suit premises. As such the Plaintiff filed the

R.A.D. Suit No. 4088 of 1987 seeking declaration of tenancy and injunction.

Defendant Nos. 1 to 3 filed their written statements denying allegations of

attempt of forcible dispossession, they contended that their father, S. T.

Upadhayay was the tenant of the entire ground floor on the west side of their

suit building and by virtue of Leave and License Agreement dated

30.05.1966, only a part of suit premises was given to the Plaintiff through its

purported partner Charandas Jain.

7.     Defendant No. 5 also filed his written statement and denied the leave

and license agreement executed by the tenants with Plaintiff. It is also stated

that the original tenant S. T. Upadhayay illegally and wrongfully sublet the

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CRA.578.2024.odt                                               Sufiyan Syed - PA
suit premises or major portion of the suit premises to the Plaintiff under the

alleged leave and license agreement.

8.        Independently, Defendant Nos. 4 and 5 has also filed R.A.E. Suit No.

367/1471 of 1978 against the S. T. Upadhayay and the present Applicant /

Original Plaintiff for eviction from the suit premises i.e. a shop situated on

the Ground Floor of Mayfair Building, 75, C Veer Nariman Road, Fort,

Mumbai – 400 020.

9.        After considering the rival pleadings and the evidence on record, the

Trial Court in the instant case framed following issues and answered them

accordingly :-

 Sr. No.                      Issues                          Findings
     1)      Whether the plaintiff proves that since      In the affirmative.
             1966, the plaintiffs were in possession of
             the suit premises as a license under leave
             and license agreement ?
     2)      Whether the plaintiff is entitled to get      In the negative.
             declaration of his tenancy in respect of
             suit premises ?
     3)      Whether plaintiff is entitled to the          In the negative
             injunction as sought for ?
     4)      What order and decree ?                      As per final order.


 Sr No.                 Additional Issues                     Findings
     1)      Whether Plaintiff’s suit is maintainable ?    In the negative
     2)      Whether      Plaintiff’s   firm    was       In the affirmative
             unregistered, as alleged by defendant ?
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The Trial Court accordingly dismissed the Suit.

10.     The Plaintiff thereafter filed an R. Appeal No. 290 of 2015 in R. A. D.

Suit No. 4088 of 1987. The Appellate Court formulated following points for

consideration and rendered its findings thereon as quoted below :

Sr.No                            Points                               Findings
   1.    Whether the Plaintiff proves that since 1966, the                Yes
         plaintiffs were in possession of the suit premises as
         a licensee under leave and license agreement ?
   2.    Whether the plaintiff is entitled to get declaration of           No
         his tenancy in respect of suit premises ?
   3.    Whether plaintiff is entitled to the injunction as                No
         sought for ?
   4.    Whether plaintiff’s suit is maintainable ?                        No
   5.    Whether plaintiff’s firm was unregistered, as alleged            Yes
         by defendant ?
   6.    Whether the impugned Judgment and decree of the                  No.
         trial court needs interference in the appeal ?
   7.    What order and decree ?                                       Appeal
                                                                    dismissed as
                                                                   per final order.


11.     The Trial Court as well as the Appellate Court has held that the

Plaintiff was in possession of the premises from 1966 under a leave and

license agreement. However, it held that the Plaintiff (sub-tenant) is not

entitled for declaration of its tenancy as the Plaintiff firm was not registered
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CRA.578.2024.odt                                                   Sufiyan Syed - PA
on the notified date i.e. 01.02.1973 and was later on registered on

03.10.1973.

12.    In these facts situation, the question that arises for consideration is as

noted in Paragraph No. 1. The relevant provisions of Section 15-A of the

Bombay Rent Act and Section 69 and 69(2) of the Indian Partnership Act,

1932, are quoted below :

      Section 69 of the Indian Partnership Act, 1932 : Effect of non-
      registration :-

      Section 69

      “(1) No suit to enforce a right arising from a contract or
      conferred by this Act shall be institutes in any Court by or on
      behalf of any person suing as a partner in a firm against the firm
      or any person alleged to be or to have been a partner in the firm
      unless the firm is registered and the person suing is or has been
      shown in the Register of Firms as a partner in the firm.

      (2)     No suit to enforce a right arising from a contract shall
      be instituted in any Court by or on behalf of a firm against any
      third party unless the firm is registered and the persons suing
      are or have been shown in the Register of Firms as partners in
      the firm.”

      Section 15-A of the Bombay Rent Control Act, 1947 :

      Section 15-A

      “(1) Notwithstanding anything contained elsewhere in the Act
      or anything contrary in any other law for the time being in force,
      or in any contract, where any person is on the 1st day of February
      1973 in occupation of any premises, or any part thereof which is
      not less than a room, as a licensee be shall on that date be
      deemed to have become, for the purpose of this Act, the tenant of
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CRA.578.2024.odt                                                Sufiyan Syed - PA
      the landlord, in respect of the premises or part thereof, in his
      occupation.

      2)     The provisions of sub-section shall not affect in any
      manner the operation of sub-section of section 15 after the date
      aforesaid.”

13.    The bar contend under Section 69(2) of the Indian Partnership Act,

1932, is to enforce a right arising from a contract and it provides that no suit

to enforce a right arising from a contract shall be instituted in any Court by

or on behalf of firm against the third party unless the firm is registered and

the persons suing are or have been show in the register of firms as a partner

in the firm.

14.    Section 15-A of the Bombay Rent Control Act, 1947, grants a

statutory protection to any person who is in occupation of any premises or

any part thereof on 01.02.1973 as a licensee, and he shall be deemed to have

become the tenant of the landlord in respect of the premises or a part thereof

in occupation for the purpose of the Rent Act. The statutory right conferred

under Section 15-A is not a mere contractual right which the partnership firm

seeks to enforce. There is no bar under the Partnership Act or under the

Bombay Rent Control Act, 1947, which prohibits the unregistered

partnership firm from becoming the beneficiary of a statutory right as is

made available under Section 15-A of the Bombay Rent Control Act, 1947.

15.    The partnership firm/Applicant is found in possession of the suit
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CRA.578.2024.odt                                               Sufiyan Syed - PA
premises under a leave and license agreement as on the notified date i.e.

01.02.1973. Thus the reasoning of the Trial Court and the Appellate Court

that the firm was not registered on the notified date i.e. 01.02.1973 and as

such cannot claim the benefit of Section 15-A of the Bombay Rent Control

Act, 1947, in view of the bar contained in Section 69(2) of the Partnership

Act is erroneous. Section 69(2) of the Partnership Act merely prohibits

filing of a suit on behalf of an unregistered partnership firm to enforce a

contractual right against a third party.

16.    In the instant case, the rights enforced by the Partnership Firm are

statutory in nature under Section 15-A of the Bombay Rent Act. The bar

contained under Section 69(2) of the Partnership Act has no relevance for

enforcement of a statutory right and the partnership firm through

unregistered as on 01.02.1973 is entitled to the protection of Section 15-A of

the Bombay Rent Control Act, 1947. The right confined under Section 15-A

of the Bombay Rent Control Act, 1947 is available to a licensee in

occupation, including a partnership firm although unregistered on the

notified date. It is pertinent to note that as on the date of filing of the suit,

the Applicant/Partnership Firm was registered.

17.    The Division Bench of Madras High Court in case of Dungarsi

Ranchhodas Jayesh Niwas, Kozhikode vs. Moolji Visanji reported in AIR

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CRA.578.2024.odt                                                Sufiyan Syed - PA
2004 Ker 314 considered similar issue, in a case, when an Eviction Petition

was filed on behalf of an unregistered partnership firm represented by a

partner and the question raised was as to whether the Rent Control Petition is

hit by Section 69(2) of the Partnership Act ? The Court held that Section 11

(1) of the Rent Control Act enables the landlord to prefer an application for

eviction on specified grounds. The non-obstante clause in the Section 11(1)

of the Rent Act overrides the permission of Section 69(2) of the Indian

Partnership Act, 1932. The Court held that the right given to the landlord to

file an eviction petition is a statutory right conferred under the Rent Act and

is not controlled by any other law. The Court held the suit maintainable.

18.       The Supreme Court in the case of Raptakos Brett & Co. Ltd. Vs.

Ganesh Property reported in MANU/SC/0595/1998 has held that the bar

contain under Section 69 of the Indian Partnership Act, 1932, is to institute a

suit on behalf of an unregistered firm against a third person to enforce a

contractual right and not a statutory right. If the suit simplicitor is based on a

covenant in the agreement for enforcement of a clause in the agreement

against the third party, the same would be barred under Section 69(2) of the

Indian Partnership Act, 1932, unless the firm is registered on the date of

filing of the suit. However, the bar does not apply for enforcement of

statutory right against a third person.

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CRA.578.2024.odt                                                 Sufiyan Syed - PA
For ready reference para 26 of Raptakos Brett & Co. Ltd. (supra) is quoted

as below :

            “26. On the facts of the present case it has to be held that
            there is no further locus poeneteatiae given to the tenant to
            continue to remain in possession after the determination of
            lease by efflux of time on the basis of any such contrary
            express term in the lease. Consequently, it is legal
            obligation flowing from Section 180(g) of the Act which
            would get squarely attracted on the facts of the present case
            and once the suit is also for enforcement of such a legal
            right under the law of the land available to the landlord it
            cannot be said to be that enforcement of such right arises
            out of any of the express terms of the contract which would
            in turn get visited by the bar of Section 69(2) of the
            Partnership Act. Consequently it has to be held that when
            paragraph 2 of the plaint in addition made a reference to
            right of the plaintiff to get possession under the law of the
            land, the plaintiff was seeking enforcement of its legal right
            to possession against the erstwhile lessee following from the
            provisions of Section 108(g) read with section 111(a) of the
            Property Act which in turn also sought to enforce the
            corresponding statutory obligation of the defendant under
            the very same statutory provisions. So far as this part of the
            cause of action is concerned it stands completely outside the
            sweep of Section 69(2) of the Partnership Act.The net result
            to this discussion is that the present suit can be said to be
            partly barred by Section 69 Sub-section (2) so far as it
            sought to enforce the obligation of the defendant under
            Clauses 14 and 17 of the contract of lease read with the
            relevant recitals in this connection as found in paragraph
            2 of the plaint. But it was partly not barred by Section 69
            Sub-section (2) in so far as the plaintiff based a part of its
            cause of Action also on the law of the land, namely,
            Transfer of Property Act where under the plaintiff had
            sought to enforce its statutory right Under Section 108(q)
            read with Section 111(a) of the Property Act. Enforcement
            of the right had nothing to do with the earlier contract
            which had stood determined by efflux of time. The first
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CRA.578.2024.odt                                                Sufiyan Syed - PA
            point for determination therefore, has accordingly, to be
            held partly in favour of the plaintiff and partly in favour of
            the defendant. As the decree for possession is passed on the
            basis of both parts of causes of Action, even if it is not
            supportable on the first part, it will remain well sustained
            on the second part of the very same cause of Action.”

19.      Both the Courts have erred in interpreting the provision of Section

69(2) of the Indian Partnership Act, 1932 and the benefit available to a

licensee in occupation under Section 15-A of the Bombay Rent Act, 1947.

Accordingly, the Judgment and order passed by both the Courts are set

aside.

20.      The R. A. D. Suit No. 4088 of 1987 filed before the Small Causes

Court is allowed in terms of Prayer Clauses (A), (B) & (E). The Decree be

drawn accordingly.

                                              (ARUN R. PEDNEKER, J.)



21.      Learned counsel appearing for the Respondent seeks stay of the order

passed today. No stay can be granted as the Applicant/tenant is in possession

of the property. Therefore the prayer for stay is refused.



                                              (ARUN R. PEDNEKER, J.)




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