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Supreme Court of India

MS. CELINA COELHO PEREIRA & ORS.versusULHAS MAHABALESHWAR KHOLKAR & ORS.

Citation
2009 INSC 1210
Decided
30 October 2009
Disposal
Appeal(s) allowed

Holding

The Supreme Court held that the High Court was not justified in non‑suiting the landlord; the partnership was a sham to conceal sub‑letting, and the eviction orders stand.

Summary

The landlord filed an eviction petition under the Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968 alleging that the tenant had sub-let the premises to a partnership called Mandovi Tours and Travels. The tenant denied sub‑letting, claiming the partnership was genuine and that he retained exclusive possession. The Rent Controller and the Administrative Tribunal found the partnership to be a sham designed to conceal sub‑letting and ordered eviction. The High Court, exercising jurisdiction under Article 227, set aside those orders and non‑suited the landlord. The Supreme Court held that the High Court erred, that the partnership was a device to evade the Act, that the landlord’s pleadings were sufficient, and that the burden of proving sub‑letting lies on the landlord until the tenant disproves it. Consequently, the eviction orders were upheld and the High Court’s judgment was set aside.

Issues considered

  • The High Court’s exercise of jurisdiction under Article 227 to set aside the eviction orders and non‑suit the landlord.
  • Whether the formation of a partnership by the tenant amounts to sub‑letting under the 1968 Act.
  • Who bears the burden of proof in establishing sub‑letting in rent‑control proceedings.
  • Whether the partnership was a genuine business entity or a veil to conceal sub‑letting.
  • Whether the pleadings of the landlord needed to specifically identify the sub‑lessee.

Legislation cited

Subjects

evictionsub‑lettingpartnership veilrent controlArticle 227burden of proofGoa Daman Diu Buildings Actleasetenancy

Judgment

                   [2009] 15 (ADDL.) S.C.R. 558


A           MS. CELINA COELHO PEREIRA & ORS.
                                v.
          ULHAS MAHABALESHWAR KHOLKAR & ORS.
                                                                         \-
                (Civil Appeal No. 7258 OF 2009)
                                                                                            t
                         OCTOBER 30, 2009
B
          [TARUN CHATTERJEE AND R. M. LODHA, JJ.]

                                                                                        ~
       Goa, Daman and Diu Building (Lease, Rent and
  Eviction) Control Act, 1968 - s.22(2)(b)(i) - Eviction petition        ..,_,,.. l     )




c - On the ground of sub-letting - Tenant taking plea of
  partnership with the sub-tenant - Order for eviction by Rent
  controller and Tribunal - High Court in petition under Article
  227 of the Constitution, setting aside finding of courts below
  - On appeal, held: High Court was not justified in non-suiting
D the landlord in exercise of jurisdiction under Article 227 -
                                                                                    ..
                                                                              ~
  Failure as regards pleadings not fatal - Pleadings in such
  matters ought not be construed too technically - If the
                                                                          y
  partnership formed was for cancelling the sub-letting, Court
  is required to tear the veil of partnership - Constitution of India,
E 1950 - Article 227 - Pleadings.
         Rent Control and Eviction - Eviction on the ground of
    sub-letting - Discussed.


F
        Doctrine - Rule of 'secundum allegata et prob ata' -
    Applicability of.
                                                                         1-
                                                                                  ,,,
          Maxim - 'Secundum allegata et probata'-Applicabi/ity
    of.

       Appellants-landlord filed petition for eviction against
G the tenant on the ground of sub-letting. Tenant denied the
  plea of sub-letting, stating that he had started the
  business in the name of a partnership firm of which he                 +
  and his family members were the partners and the

H                                 558

                                                                                  ...   I
               MS. CELINA COELHO PEREIRA & ORS. v. ULHAS            559
                    MAHABALESHWAR KHOLKAR & ORS.
             premises was exclusively in his possession. Rent                  A
             Controller held that sub-letting was established and
             directed the tenants to vacate the premises. Appeal
             against the order of Rent Controller was dismissed
             upholding the order of Rent Controller. In writ petition
             under Article 227 of the Constitution of India, High Court        B
             set aside the orders of the courts below. Hence the
             present appeal.

                 Allowing the appeal, the Court
    °""'(

~
                  HELD: 1.1. In order to prove mischief of subletting as' c
             a ground for eviction under rent control laws, two
             ingredients have to be established, i.e. parting with
             possession of tenancy or part of it by tenant in favour of.
             a third party with exclusive right of possession; and that
             such parting with possession has been done without the D
    ~
             consent of the landlord and in lieu of compensation or
             rent. [Para 28] (582-A-B]
        y
                  1.2. Inducting a partner or partners in the business
             or profession by a tenant by itself does not amount to
~
             subletting. However, if the purpose of such partnership           E
                                                                           1




             is ostensible and a deed of partnership is drawn to
             conceal the real transaction of sub-letting, the court may
             tear the veil of partnership to find out the real nature of
        t    transaction entered into by the tenant. [Para 28] [582-C]
                                                                               F
                  1.3. The existence of deed of partnership between
             tenant and alleged sub-tenant or ostensible transaction
             in any other form would not preclude the landlord from
             bringing on record material and circumstances, by
             adducing evidence or by means of cross-examination,               G
             making out a case of sub-letting or parting with
             possession in tenancy premises by the tenant in favour
        +-   of a third person. [Para 28] [582-D-E]

                 1.4. If tenant is actively associated with the
                                                                               H
    560 SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A   partnership business and retains the control over the
    tenancy premises with him, may be along with partners,
    the tenant may not be said to have parted with                   l"-
    possession. [Para 28] [582-E-F]

         1.5. Initial burden of proving sub-letting is on landlord
B
    but once he is able to establish that a third party is in
    exclusive possession of the premises and that tenant has
    no legal possession of the tenanted premises, the onus
    shifts to tenant to prove the nature of occupation of such
    third party and that he (tenant) continues to hold legal         y
c   possession in tenancy premises. [Para 28] [582-G]                               f;:


                                                                                I
       1.6. Initial burden lying on landlord would stand                        '
  discharged liy adducing prima facie proof of the fact that
  a party other than tenant was in exclusive possession of
D the premises. A presumption of sub-letting may then be
  raised and would amount to proof unless rebutted. [Para                  ..
  28] [582-H; 583-A]
                                                                     'f
       2.1. High Court judgment is erroneous. It erred in
  holding that the tenant wanted to examine one of the
E partners, but he was not permitted by the Rent Controller.
  This is factually incorrect inasmuch as there is nothing
  on record to suggest that the tenant wanted to examine
  one of the partners. What appears from record is that an
  application came to be filed by the firm to whom the
F premises in question was sub-let through its partner for           t
  its impleadment and intervention but the said application
  was reJected. The said order never came to be challenged
  by the firm. The High Court also failed to advert to the
  question whether the firm was a genuine partnership firm
G or was a camouflage to cover up the mischief of
  subletting. Though, the Administrative Tribunal as well as
  the Additional Rent Controller have recorded a specific
  finding that the partnership was not genuine partnership
  and it was created with an intention to circumvent the
H
                     MS. CELINA COELHO PEREIRA & ORS. v. ULHAS            561
                          MAHABALESHWAR KHOLKAR & ORS.

            -4'   provisions of Goa, Daman and Diu, Buildings (Lease,            A
                  Rend and Eviction Control) Act, 1968, but the High Court
                  did not go into this aspect on the ground that there was
                  no specific pleading to this effect in the application for
  t               eviction. [Para 16] [570-F-H; 571-A-C]
                                                                                 B
                      Associated Hotels of India Ltd., Delhi v. S.B. Sardar
                  Ranjit Singh AIR 1968 SC 933; Smt. Krishnawati v. Hans Raj
                  (1974) 1 SCC 280; Helper Girdharbhai v. Saiyed Mohmad
        1f        Mirasaheb Kadri & Ors, (1987) 3 SCC 538; Jagan Nath
                  (Deceased) through LRs. vs. Chander Bhan And Ors. (1988)
                                                                                 c
-
"-=!
   '
                  3 SCC 57; Gopal Saran vs. Satyanarayana (1989) 3 SCC 56;
                  G.K. Bhatnagar (Dead) By LRs. vs. Abdul Alim (2002) 9 SCC
                  516; Parvinder Singh vs. Renu Gautam and Ors. (2004) 4
                  SCC 794; Mahendra Saree Emporium (II) vs. G. V. Srinivasa
        ~
                  Murthy (2005) 1 SCC 481; Vaishakhi Ram and. Ors. v.
                  Sanjeev Kumar Bhatiani (2008) 14 SCC 356; Nirmal Kanta         D
            .,    (Dead) Through LRs. v. Ashok Kumar and Anr. (2008) 7 SCC
   /.
                  722, relied on.

                       2.2. The High Court is not justified in non-suiting the
                  landlord on the ground that he has not pleaded that            E
                  business of the firm is not conducted by its partners; and
                  that tenant has parted with the premises by sub-letting
                  the same under the garb of deed of partnership by
             \    constituting a bogus firm. Lack of pleading as to whom
                  the premises in question has been sublet, cannot be held       F
                  to be fatal. A transaction such as sub-letting by tenant
                  which is not permissible under lease may be outwardly
                  a deceptive arrangement and landlord may not come to
                  know of true facts. The pleadings in such matters ought
                  not to be construed too tec~nically. The true test, is to
                                                                                 G
                  see whether the other side has been taken by surprise
             ~
                  or prejudiced. [Para 29] [583-8-E]

                      2.3 If the purpose of constituting partnership by the
                  tenant is ostensible and a deed of partnership is drawn
                                                                                 H
    562   SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A to conceal the real transaction of subletting in a given
                                                                     ~
  case, the court may be required to tear the veil of
  partnership to find out the real nature of transaction
  entered into by the tenant and in such circumstances the
  evidence let in by the landlord cannot be ignored on the
                                                                             'I-
B ground that there is some variance between pleading                            ~
  and proof. In a case such as the present one, the rule of
  secundum allegata et probata is not strictly applicable as
  the tenant cannot be said to have been put to any
  prejudice. [Para 30] (583-F-H]
                                                                 ,...
c                                                                             ~
       2.4. The High Court has been too technical in
  construing the pleadings of the case overlooking the fact ·
                                                                             ·-
                                                                             ~


  that plea of sub-letting has been .set up by landlord in the               ;,•
  plaint and there has been full and criti.cal examination of
  the evidence by the Additional Rent Controller as well as
D the Administrative Tribunal. The Additional Rent Controller
                                                                         "
  and the Administrative Tribunal cannot be said to have                     ~

  misdirected themselves either on law or on factS. Both
  Authorities found as a fact that the firm was not a
                                                                 "
  genuine partnership and it was formed to cover up the
E sub-letting of the suit premises. They also found as a fact
  that the partnership having not been found to be genuine
  partnership, it was difficult to hold that the tenant
  continued to have a control over the suit premises.
  These findings are based on the consideration of               f
F evidence on record. It cannot be said that the aforesaid
  view is not a possible view. [Para 31] [584-A-D]

      Bathutmal Raichand Oswal v. Laxmibai R. Tarta and Anr.
  (1975) 1 SCC 858; State through Special Cell, New Delhi v.
  Navjot Sandhu alias Afshan Guru And Ors. (2003) 6 SCC
G
  641; Chandavarkar Sita Ratna Rao v. Ashalata S. Guram
  (1986) 4 SCC 447; State of Maharashtra v. Mi/ind and Ors.      ~
  (2001) 1 SCC 4; Ranjeet Singh v. Ravi Prakash (2004) 3
  SCC 682; Shamshad Ahmad and Ors. v. Tilak Raj Bajaj
  (Deceased) through LRs. and Ors. (2008) 9 sec 1, relied on
H
                     MS. CELINA COELHO PEREIRA & ORS. v. ULHAS             '563
                          MAHABALESHWAR KHOLKAR & ORS.
                        3. In view of the facts and circumstances of the case     A
... -1             and the findings recorded by the Additional Rent
                   Controller as well as the Administrative Tribunal, High
                   Court was not justified in interfering with the concurrent
    i              orders of eviction based on the ground of sub-letting in
                   exercise of its power under Article 227 of the Constitution    B
                   of India. [Para 35] [586-D-E]

                        4. It is also not correct to say that the powers of the
(       ~   _..,   Rent Controller under the Act, 1968 are exercisable like
                   that of courts of Mamlatdars under the Goa, Daman and
                   Diu The Mamlatdar's Court Act, 1966 and that onus never
                                                                                  c
                   shifted to the tenant. [Para 36] [586-F]
                                       Case Law Reference :
~                                                                    Para 18
                       AIR 1968 SC 933          Relied on
        ~                                                                         D
                       (1974) 1 sec 2ao         Relied on           Para 19
             )"
                       (1987) 3 sec 538         Relied on           Para 20
                       (1988) a sec 57          Relied on           Para 21
                                                                                  E
                       (1989) 3 sec 56          Relied on           Para 22
                       (2002) 9 sec 516         Relied on           Para 23
              ~~       (2004) 4 sec 794         Relied on           Para 24
                       (2005) 1 sec 48.1        Relied on           Para 25       F

                       (2008) 14 sec 356        Relied on           Para 26
                       (2008) 1 sec 122         Relied on           Para 27
                       (1975) 1 sec 858         Relied on           Para 32       G
                       (2003) 6 sec 641         Relied on           Para 33
                       (1986) 4 sec 447         Relied on           Para 34
                       (2001) 1 sec 4           Relied on           Para 34
                                                                                  H
    564 SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.

A        (2004) 3 sec 682
         (2008) g sec 1
                                    Relied on

                                    Relied on
                                                           Para 34
                                                           Para 34
                                                                          ~
                                                                                       -"


        CIVIL APPELLATE JURISDICTION : Civil Appeal Nos.
    7258 of 2009.
B
        From the Judgment & Order dated 29.11.2006 of the High
    Court Bombay at Goa in Writ Petition No. 156 of 1999.

        Ranjit Kumar, Binu Tamta, Prashant Shukla, for the
                                                                          ,,...,   .
    Appellants.
c
       Surendra Desai, Prashant Kumar, Triveni Poteker, J.K.
    Mahapatra, Amarjit Singh Bedi, for the Respondents.                                 '

         The Judgment of the Court was delivered by
                                                                                       J...
D                                                                                  .
         R.M. LODHA, J. 1. Leave granted.
                                                                          y
        2. Abilio Coelho Pereira - since deceased and now
  represented by the present appellants, (for the sake of
  convenience hereinafter referred to as 'landlord'), made an
E application on April 6, 1979 before the Rent Controller, Goa
  North Division, Panaji for eviction of Mahabaleshwar
                                                                      •
  Ramchandra Colcar - since deceased and now represented
  by the respondents - (hereinafter referred to as 'tenant') on the
  grounds of subletting and change of user, as provided in Goa,           {
F Daman & Diu Buildings (Lease, Rent_ & Eviction) Control Act,
  1968, (for short, 'Act, 1968'). The landlord in the application for
  eviction averred that a building situated at Stres Joao de
  Castro, Panaji is owned by him; that one of the rooms on the
  ground floor of the said building was let out to the tenant @
  Rs.80/- per month on January 10, 1959 for grocery business;
G
  that initially the lease was for a period of two years but later on
  it was renewed from time to time and the last renewal was               +
  made upto October 10, 1969; that on coming into force of Act,
  1968 the tenant became statutory tenant; that the tenant without
  permission or consent of the landlord has transferred/sublet
H
        MS. CELINA COELHO PEREIRA & ORS. v. ULHAS 565
        MAHABALESHWAR KHOLKAR & ORS. [R.M. LODHA, J.]

        tenancy interest in the premises to Mandovi Tours and Travels;           A
-1      that the transferee/sub-lessee is exclusively running the business
        in the said rented premises and that no grocery shop is being
        run by the tenant in the said premises.

             3. The tenant traversed the application for eviction and            B
        denied that he has transferred/sublet the premises to Mandovi
        Tours and Travels or that the tenancy interest in the said
        premises has been let out to the said partnership concern. The
• -f    tenant's defence in the written statement was that having
        advanced in age, he was not doing good business in grocery
        and he thought of starting the business of tours and travels
                                                                                 c
        within the territory of Goa and, for this reason, he formed a
        partnership in the name and style of M/s. Mandovi Tours and
        Travels and took his son and daughter-in-law as his partners
        along with one Smt. Kunda Wagh. The tenant further averred
        that booking and reservation of passengers and ·tourists is              D
        being done from the said premises by the firm and that the
  y     possession of the premises continues to be with him
        exclusively. An additional written statement was filed by the
        tenant on September 25, 1979 but since nothing material turns
        on that, it is not necessa·rY' to refer to the said additional written   E
        statement.

             4. During the pendency of the proceedings, an application
  >.    came to be filed by Mis. Mandovi Tours and Travels through its
   ~-
        partner Umesh Kolkar for its impleadment and intervention but            F
        the said application came to be rejected on September 15,
        1984.

            5. It may be noticed here that the original tenant died on
        May 18, 1986 and his legal heirs (present respondents) were
        impleaded as respondents.                                                G

  -+-       6. The Additional Rent Controller, Panaji Sub-Division,
        Panaji-Goa recorded the evidence of the parties and, after
        hearing them vide his order dated January 16, 1995 held that
        ground of sub-letting was established and directed the present           H
     566     SUPREME COURT REPORTS [2009) 15 (ADDL.) S.C.R.


A    respondents to vacate the subject premises and put the landlord
     in possession within 30 days from the date of receipt of the            r-...
     order.

       7. The present respondents challenged the order of
  eviction passed by the Additional Rent Controller in an eviction
B
  appeal before the Administrative Tribunal, Goa. The original
  landlord seems to have died during the pendency of appeal
  and the present appellants who are his legal representatives
  were brought on record.                                                    'It--'"'
c.        8. The Administrative Tribunal, Goa, after hearing the
     parties, dismissed appeal on December 24, 1998. Thus, the
     eviction order passed by the Additional Rent Controller was
     upheld by the Administrative Tribunal, Goa.
                                                                                        Ir
D        9. The present respondents, not satisfied with the
                                                                                   ~
     concurrent orders, preferred writ petition under Article 227 of
     the Constitution before the High Court of Bombay at Goa.
                                                                         'i
       10. Vide judgment and order dated November 29, 2006,
                                                                                   ••
  High Court alloweq the writ petition and s~.t aside the concurrent
E orders of eviction passed by the Additional Rent Controller and
  the Admini~trative Tribunal. It is from this order that the present
  appeal by special leave has been preferred by the present
  appellants.

F      11. We heard Mr. Ranjit Kumar, learned senior counsel for         +"
  the appellants and Mr. S.G. Dessai, learned senior counsel for
  the respondents at quite some length.

        12. The Additional Rent Controller, aft~r sifting the evidence
  let in by the parties and the covenants of the partnership deed,
G recorded his findings thus :

           "It may be noted that from the covenants of the partnership   +
           deed it was clear that the books of accounts had to be
           maintained, statement for the purpose of income tax had
H          to be prepared etc. and instead of bringing this evidence
                MS. CELINA COELHO PEREIRA & ORS. v. ULHAS 567
                MAHABALESHWAR KHOLKAR & ORS. [R.M. LODHA, J.]
                     into record the respondent went on saying that he could           A
• -1                 not produce the books of accounts as his father had fold
                     him that the same were not maintained from the beginning.
                     This statement was made on the next date of hearing when
                     on the previous date he had promised to produce the
                     same. Further the power of attorney of the respondent             B
                     mentioned that he was not able to say how much his wife
                     received from the share of the sales of the two tempos
                     belonging to the partnership firm even the files regarding
     .. -.!          the income tax returns, the power of attorney of the
                     respondent stated that he was not aware whether any
                     returns have been filed or not. It is clear from this that none
                                                                                       c
                     of the partners were brought into the witness box. It is
                     difficult to accept that this partnership actually existed but
                     it was a cover front for any under-hand dealing with the
..                   said Balaji Lawande and Netravalkar. It is to be noted that
                                                                                       D
 I>                  neither Balaji nor Netravalkar came to depose as
                     witnesses. As regards to the point that the partnership was
..., y   .           purely a family concern it was difficult to accept when at
                     the time of hearing different parties of the same family
                     engaged different advocates and advances arguments on
                     their behalf. Under no circumstances, it was explained as         E
                     to why Kunda Wagh was taken as a partner when she
                     could have easily been taken as an employee as she was
                     required for the purpose ·of liaison and planning of tours."
       >
           +-        13. The Additional Rent Controller, thus, held that the case      F
                of the tenant that the partnership firm existed cannot be
                accepted and that it was a cover for an underhand dealing with
                Balaji Lawande and Netravalkar. The Additional Rent Controller
                went on to hold :

                    "....... Even if the authorities mentioned by the respondent       G
                    in their written arguments were to support the case of the
       +            respondent, it is difficult to accept this proposition
                    because in the facts itself and the omission of the
                    respondent to come out with the truth the said authorities
                                                                                       H


•
    568     SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A         do not hold him at all. Now considering all these aspects
          it 'is held that the respondent has not performed his
          obligation specially with reference to the authority             Y•
          mentioned above in RCJ 1993 Vol. I page 292 to 295 in
          the case of Trilok Singh vs. Bavanti Prasad where it was
B         mentioned in the judgment "Sub-letting being clandestine
          affairs direct evidence cannot ordinarily be available" have
          been complied by the respondent to justify the
          genuineness and the existence in practice of the said


c
          partnership deed. It may be noted also that the ground
          taken at later stage that two partners of the firm had           "' ...
          become the legal heirs of the respondent, the question of
          the application of the section 2(p) i.e. the definition of the
          member. of the firm of the tenant becomes applicable after
          his death cannot be accepted because proceedings were
          initiated well before the death of the original respondent                     I'.
D         and it relates to the events at the time of filing of this
          application. It may be .noted also that the evidence of the                 "
          respondent was recorded through his power of attorney            y
                                                                                      .......,
          and son Ulhas during the life time and, therefore, the                                 )
          respondent cannot take shelter of this provision now.
E
                 Under these circumstances, as the respondent has
          failed to perform his obligation to prove that there had not
          been an under hand sub-letting because in all such cases,
          the sub-letting was always clandestine and, therefore, direct        ,...
          evidence cannot be brought by the applicant and hence            t
F
          the duty cast on the respondent."

       14. The Administrative Tribunal also held that the
  partnership - Mandovi Tours and Travels - was not a genuine
  partnership and it was formed to cover up subletting of suit
G premises. For recording this finding, the Administrative Tribunal
  gave the following reasons:
                                                                           +
               "Admittedly, the appellants did not examine any of
          the partners of the partnership firm before the Rent
H
            MS. CELINA COELHO PEREIRA & ORS. v. ULHAS 569
            MAHABALESHWAR KHOLKAR & ORS. [RM. LODHA, J.]
                Controller. However, the appellants examined one Shri           A
 --1            Ulhas Kholkar as a power of attorney for the original tenant.
                 In fact, he happens to be the son of the original tenant.
                According to this witness, the appellants started the
                business in the suit premises under the name and style M/
                s. Mandovi Tour &Travels in February 1977 for conducting        B
                sight seeing tours. This witness was cross-examined by
                the respondents. From the trend of the cross examination
                of this witness, it is clear that the partnership was not at
. ..,           all acted upon and it only remained as a paper document.
                He has admitted that the Mandovi Tours and Travels has          c
                not maintained any books of accounts from the inception.
                It was suggested to this witness that there are no account
                books as partnership business does not exist at all which
                 suggestion was denied by this witness. It was also
              . suggested to this witness that the suit premises are in         D
                exclusive possession of Sitakant Netravalkar and Balaji
                Lawande which suggestion was also denied by this
  ""            witness. His wife happens to be one of the partners but
                he does not know what income his wife receives from the
                partnership business. In his cross-examination, he has also
                                                                                E
                stated that he cannot say as to who shall retain the
                premises in case the partnership was dissolved. As per
                clause 7 of the Partnership Deed, it was necessary for the
 ,,.            partnership firm to open bank account in the name of firm
       4-       to be operated by second and third party jointly. As per
                clause 8 of the partnership deed the accounting year of         F
                the partnership was from 1st April ending on 31st March
                every year and the first sets of books were required to be
                closed on 31.3.1978. As per clause 9 of the partnership
                deed, it was necessary to keep proper books of accounts
                and which were required to be completed on 31st March           G
                every year. However, it is pertinent to note that the
 ......         appellants have not brought any evidence on record to
                show that they have opened a bank account in the name
                of the firm. The appellants have also not brought any
                                                                                H




                                                                                    '
    570     SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A         evidence on record to show that books of accounts were
          maintained by the partnership firm. In my view, therefore,      )--
          the evidence on record clearly establishes that the said
          partnership was not at all a genuine partnership and it was
          created only to circumvent the provisions of the Rent
B         Control Act."

         15. The Administrative Tribunal also held that the tenant
    did not hold any control over the suit premises and though his
    case was that to do travel business, a firm Mandovi Tours and             y-
    Travels was constituted but failed to prove that Mandovi Tours
c   and Travels was a genuine partnership. This is what the
    Administrative Tribunal said :

                 "In the present case before me the original tenant
          had only 10% share. The partner Sr:nt. Kunda J. Vagh who
D         is stranger has 30% shares. As discussed above, the said                  ...
          partnership is found not to be genuine partnership and it
          was formed to cover up the sub-letting of the suit premises.        1
          This being the position, it is difficult to hold that the
          appellants still have a control over the suit premises. I am,
E         therefore, satisfied that the appellants have parted with the
          possession of the suit premises to the said Mandovi Tours
          and Travels. The appellants have failed to prove that the
          said partnership was a genuine partnership."
                                                                              ...
       16. Insofar as High Court is concerned, two errors are             i
F apparent from its judgment. In the first place, High Court erred
  in holding that the tenant wanted to examine one of the partners,
  Umesh Mahabaleshwar Kholkar but he was not permitted by
  the Rent Controller. This is factually incorrect inasmuch as there
  is nothing on record that even remotely suggests that the tenant
G wanted to examine one of the partners Umesh Mahabaleshwar
  Kholkar. What appears from record is that an application came
  to be filed by M/s. Mandovi Tours and Travels through its partner
  Umesh Kholkar for its impleadment and intervention but the said
  application was rejected on September 15, 1994. The fact of
H the matter is that the said order never came to be challenged
              MS. CELINA COELHO PEREIRA & ORS. v. ULHAS 571
              MAHABALESHWAR KHOLKAR & ORS. [R.M. LODHA, J.]
              by Mis. Mandovi Tours and Travels. Secondly, the High Court              A
       ---¥   failed to advert to the question whether the firm M/s. Mandovi
              Tours and Travels was a genuine partnership firm or was a
              camouflage to cover up the mischief of subletting. Though, the
              Administrative Tribunal as well as the Additional Rent Controller
              have recorded a specific finding that the partnership Mis.               B
              Mandovi Tours and Travels was not genuine partnership and it
              was created with an intention to circumvent the provisions of
              Act, 1968, but the High Court did not go into this aspect on the
       r      ground that there was no specific pleading to this effect in the
              application for eviction.                                                c
                    17. Section 22(2)(b )(i) of the Act, 1968 which is relevant
              for the present appeal reads thus :

                    "22. Grounds for eviction. - (1) .............. (2) If the
,,,                 Controller, after giving the tenant a reasonable opportunity       D
                    of showing cause against the application, is satisfied -
       1f
                   (a) .........................................................

                   (b) that the tenant has without the written consent of the
                   landlord -                                                          E

                            (i) transferred his right under the lease or sub-let the
                            entire building or any portion thereof, or"
      ,. t-
                    18. In the case of Associated Hotels of India Ltd., Delhi
                                                                                      F
              v. S.B. Sardar Ranjit Singh 1 , this Court held that when eviction
              is sought on the ground of subletting, the onus to prove
              subletting is on the landlord. It was further held that if the landlord
              prima facie shows that the third party is in exclusive possession
              of the premises let out for valuable consideration, it would then
              be for the tenant to rebut the evidence.                                G

      +           19. The aforesaid legal position was also noticed by this
              Court in the case of Smt. Krishnawati v. Hans Raj2.
              1. AIR 1968 SC 933
              2. (1974) 1 sec 280                                                      H
    572     SUPREME COURT REPORTS (2009] 15 (ADDL.) S.C.R.


A      20. In Helper Girdharbhai v. Saiyed Mohmad Mirasaheb
  Kadri & Others3 , this Court held that in a case where a tenant          't-
  becomes a partner of a partnership firm and allows the firm to
  carry on business in the demised premises while he himself
  retains legal possession thereof, the act of the tenant does not
B amount   to subletting. It was held that whether there is genuine
  partnership or not must be judged in the facts of each case in
  the light of the principles applicable to partnership.

         21. While dealing with the mischief contemplated under
    Section 14(1)(b) of the Delhi Rent Control Act, 1958 providing
                                                                           ..,-
c   for eviction on the ground of subletting, this Court in the case
    of Jagan Nath (Deceased) through LRs. vs. Chander Bhan
    And Ors. 4 held:

          "The question for consideration is whether the· mischief
D         contemplate~ under Section 14(1)(b) of the Act has been
          committed as the tenant had sublet, assigned, or otherwise             '
          parted with the possession of the whole or part of the
                                                                            1
          premises without obtaining the consent in writing of the
          landlord. There is no dispute that there was no consent in
E         writing of the landlord in this case. There is also no
          evidence that there has been any subletting or assignment.
          The only ground perhaps upon which the landlord was
          seeking eviction was parting with possession. It is well
          settled that parting with possession meant giving                 ..
                                                                           -l
F         possession to persons other than those to whom
          possession had been given by the lease and the parting                     •
          with possession must have been by the tenant; user by
          other person is not parting with possession so long as the
          tenant retains the legal possession himself, or in other
          words there must be vesting of possession by the tenant
G         in another person by divesting himself not only of physical
          possession but also of the right to possession. So long as
          the tenant retains the right to possession there is no parting   +
    3. (1987) 3 sec 538

H   4. (1988) 3 sec 57
               MS. CELINA COELHO PEREIRA & ORS. v. ULHAS 573
               MAHABALESHWAR KHOLKAR & ORS. [R.M. LODHA, J.]

                    with possession in terms of clause (b) of Section 14(1) of        A
      -t
                    the Act. Even though the father had retired from the
                    business and the sons had been looking after the business,
                    in the facts of this case, it cannot be said that the father
                    had divested himself of the legal right to be in possession.
                    If the father has a right to displace the possession of the       B
                    occupants, i.e., his sons, it cannot be said that the tenant
                    had parted with possession"
 ·-'f
                    22. The question whether the tenant has assigned, sublet
               or otherwise parted with the possession of the whole or any
               part of the premises without the permission of the landlord
                                                                                      c
               within the meaning of Section 13(1 )(e) of the Rajasthan
               Premises (Control of Rent and Eviction) Act, 1950, fell for
               consideration in Gopal Saran vs. Satyanarayana 5• This Court
,,.            held:                                \                                 D
                    "Sub-letting means transfer of an exclusive right to enjoy
          Y"
                    the property in favour of the third party. In this connection,
                    reference may be made to the decision of this Court in
                    Shalimar Tar Products Ltd. v. H. C. Sharma [(1988) 1
                    sec 70] where it was held that to constitute a sub-letting,       E
                    there must be a parting of legal possession, i.e.,
                    possession with the right to include and also right to
      ;             exclude others and whether in a particular case there was
          +         sub-letting was substantially a question of fact. In that case,
                    a reference was made at page 77 of the report to the              F
                    Treatise of Foa on Landlord and Tenant, 6th edn., at page
                    323, for the proposition that the mere act of letting other
                    persons into possession by the tenant, and permitting them
                    to use the premises for their own purposes, is not, so long
                    as he retains the legal possession himself, a breach of
                                                                                      G
                    covenant. In paragraph 17 of the report, it was observed
                    that parting of the legal possession means possession
                    with the right to include and also right to exclude others. In

               5. (1989) 3 sec 56
                                                                                      H
                                                                                         f


    574     SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A         the last mentioned case, the observations of the Madras
          High Court in Gundalapal/i Rangamannar Chetty v. Desu           +-
          Rangiah (AIR 1954 Mad 182) were approved by this Court
          in which the legal position in Jackson v. Simons ((1923)
          1 Ch 373) were relied upon. The Madras High Court had                         l;

B         also relied on a judgment of Scrutton L.J. in Chaplin v.
          Smith ((1926) 1 KB 198] at page 211 of the report where
          it was said :

                 He did not assign, nor did he underlet. He was            y-<
                 constantly on the premises himself and kept the key       ,.•
c                o.f them. He did business of his own as well as
                 business of the company. In my view he allowed the
                                                                                         '~
                 company to use the premises while he himself
                 remained in possession of them.

D         This position was also accepted in Vishwa Nath v.                      ....
          Chaman Lal (AIR 1975 Del. 117) wherein it was observed
                                                                           y
          that parting with possession is understood as parting with
          legal possession by one in favour of the other by giving
          him an exclusive possession to the ouster of the grantor.
E         If the grantor had retained legal possession with him it was
          not a case of parting with possession."

         The court also reiterated that to prove sub-tenancy, two
    ingredients have to be established, firstly, the tenant must have
    exclusive right of possession or interests in the premises or part
                                                                          +""'
F   of the premises in question and secondly, the right must be in
    lieu of payment of some compensation or rent.                                        t
         23. In the case of G.K. Bhatnagar (Dead) By LRs. v. Abdul
    Alim6 , this Court held as follows :
G
          "A conjoint reading of these provisions shows that on and
          after 9-6-1952, sub-letting, assigning or otherwise parting     +
          with the possessi~n. of the whole or any par:t of the tenancy

    6. (2002) g sec 516
H
          MS. CELINA COELHO PEREIRA & ORS. v. ULHAS 575
          MAHABALESHWAR KHOLKAR & ORS. [R.M. LODHA, J.]
                premises, without obtaining the consent in writing of the       A
-t              landlord, is not permitted and if done, the same provides
                a ground for eviction of the tenant by the landlord. However,
                inducting a partner in his business or profession by the
                tenant is permitted so long as such partnership is genuine.
                If the purpose of such partnership may ostensibly be to         B
                carry on the business or profession in partnership, but the
                real purpose be sub-letting of the premises to such other
                person who is inducted ostensibly as a partner, then the
 '1             same shall be deemed to be an act of sub-letting attracting
                the applicability of clause (b) of sub-section (1) of Section   c
                14 of the Act."

              24. A three-Judge Bench of this Court in Parvinder Singh
          v. Renu Gautam and Others7 commented upon the device
          adopted by tenants many a time in creating partnership as a
          camouflage to circumvent the provisions of the Rent Control Act.      D
          The following observations are worth noticing :
 'f

               "The rent control legislations which extend many a
               protection to the tenant, also provide for grounds of
               eviction. One such ground, most common in all the                E
               legislations, is sub-letting or parting with possession of the
               tenancy premises by the tenant. Rent control laws usually
               protect the tenant so long as he may himself use the
>
    -~         premises but not his transferee inducted into possession
               of the premises, in breach of the contract or the law, which     F
               act is often done with the object of illegitimate profiteering
               or rack-renting. To defeat the provisions of law, a device
               is at times adopted by unscrupulous tenants and sub-
               tenants of bringing into existence a deed of partnership
               which gives the relationship of tenant and sub-tenant an
                                                                                G
               outward appearance of partnership while in effect what has
.....,_
               come into existence is a sub-tenancy or parting with
               possession camouflaged under the cloak of partnership.
               Merely because a tenant has entered into a partnership
          7. (2004) 4   sec 794                                                 H
MS. CELINA COELHO PEREIRA & ORS. v. ULHAS577
MAHABALESHWAR KHOLKAR & ORS. [RM. LODHA, J.]
     from bringing on record material and circumstances, by A
     adducing evidence or by means of cross-examination,
     making out a case of sub-letting or parting with possession
     or interest in tenancy premises by the tenant in favour of a
     third person. The rule as to exclusion of oral by
     documentary evidence governs the parties to the deed in    s
     writing. A stranger to the document is not bound by the
     terms of the document and is, therefore, not excluded from
     demonstrating the untrue or collusive nature of the
     document or the fraudulent or illegal purpose for which it
     was brought into being. An enquiry into reality of c
     transaction is not excluded merely by availability of writing
     reciting the transaction ......... "

     25. In yet another decision, a three-Judge Bench of this
Court in Mahendra Saree Emporium (//) v. G. V. Srinivasa
Murthy considered earlier decisions, few of which have been D
referred above, while dealing with a matter relating to subletting
of the premises within the meaning of Section 21 (1 )(f) of
Karnataka Rent Control Act, 1961 and observed as follows :

           "The term "sub-let" is not defined in the Act - new E
    or old. However, the definition of "lease" can be adopted
    mutatis mutandis for defining "sub-lease". What is "lease"
    between the owner of the property and his tenant becomes
    a sub-lease when entered into between the tenant and
    tenant of the tenant, the latter being sub-tenant qua the F
    owner-landlord. A lease of immovable property as defined
    in Section 105 of the Transfer of Property Act, 1882 is a
    transfer of a right to enjoy such property made for a certain
    time for consideration of a price paid or promised. A
    transfer of a right to enjoy such property to the exclusion G
    of all others during the term of the lease is sine qua non
    of a lease. A sub-lease would imply parting with by the
    tenant of the right to enjoy such property in favour of his
    sub-tenant. Different types of phraseology are employed

8. (2005) 1 sec 481                                             H
    578     SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A       by different State Legislatures making provision for eviction
        on the ground of sub-letting. Under Section 21(1)(f) of the       'f-
        old Act, the phraseology employed is quite wide. It
        embraces within its scope sub-letting of the whole or part
        of the premises as also assignment or transfer in any other
B       manner of the lessee's interest in the tenancy. premises.
        The exact nature of transaction entered into or                              '--
                                                                                     !-
      · arrangement or understanding arrived at between the
        tenant and alleged sub-tenant may not be in the knowledge
        of the landlord and such a transaction being unlawful would ·     'r A( ;
        obviously be entered into in secrecy depriving the owner-
c       landlord of the means of ascertaining the facts .about the
        same. However still, the rent control legislation being
        protective for the ten~nt and eviction being not permissible
       ·except on the availability of ground therefor having been
        made out to the satisfaction of the court or the Controller,
D
        the burden of proving the availability of the ground is cast
        on the landlord i.e. the one who seeks eviction. In
                                                                                 '
                                                                          l(
        Krishnawati v. Hans Raj [(1974) 1 SCC 289] reiterating
        the view taken in Associated Hotels of India Ltd. v. S.B.
        Sardar Ranjit Singh [(1968) 2 SCR 548] this Court so
E       noted the settled law: (SCC p. 293, para 6)

                 "[T]he onus to prove sub-letting is on the landlord.
                 If the landlord prima facie shows that the occupant      ....
                 who was in exclusive possession of the premises
                 let out for valuable consideration, it would then be
                                                                         +
F
                 for the tenant to rebut the evidence."

          Thus, in the case of sub-letting, the onus lying on the
          landlord would stand discharged by adducing prima facie
          proof of the fact that the alleged sub-tenant was in
G         exclusive possession of the premises or, to borrow ttie
          language of Section 105 of the Transfer of Property Act,       t-
          was holding right to enjoy such property. A presumption
          of sub-letting may then be raised and would amount to
          proof unless rebutted. In the context of the premises having
H
               MS. CELINA COELHO PEREIRA & ORS. v. ULHAS 579
               MAHABALESHWAR KHOLKAR & ORS. [R.M. LODHA, J.]

,,..
                   been sub-let or possession parted with by the tenant by A
                   adopting the device of entering into partnership, it would
-~
                   suffice for us to notice three decisions of this Court.
                   Murlidhar v. Ch uni Lal (1970 Ren CJ 922) is a case where
                   a shop was let out to a firm of the name of Chuni Lal
                   Gherulal. The firm consisted of three partners, namely, 8
                   Chuni Lal, Gherulal and Meghraj. This partnership closed
                   and a new firm by the name of Meghraj Bansidhar
                   commenced its business with partners Meghraj and
                   Bansidhar. The tenant firm was sought to be evicted on
~      'I
                   the ground that the old firm and the new firm being two c
                   different ·legal entities, the occupation of the shop by the
                   new firm amounted to sub-letting. This Court discarded the
                   contention as "entirely without substance" and held that a
                   partnership firm is not a legal entity; the firm name is only
                   a compendious way of describing the partners of the firm.
                                                                                  D
                   Therefore, occupation by a firm is only occupation by its
                   partners. The two firms, old and new, had a common
       1           partner, namely, Meghraj, who continued to be in
                  possession and it was fallacious to contend that earlier he
                  was in possession in the capacity of partner of the old firm
                   and later as a partner of the new firm. The landlord, in order E
                  to succeed, has to prove it as a fact that there was a sub-
                   letting by his tenant to another firm. As the premises
                   continued to be in possession of one of the original
    ,;
                   tenants, Meghraj, then by a mere change in the
           ~
                   constitution of the firm of which Meghraj continued to be a F
                   partner, an inference as to sub-letting could not be drawn
                   in the absence of further evidence having been adduced
                  to establish sub-letting. In Helper Girdharbhai v. Saiyed
                  Mohd. Mirasaheb Kadri [(1987) 3 SCC 538] the tenant
                  had entered into a partnership and the firm was carrying G
                  on business in the tenancy premises. This Court held that
                  if there was a partnership firm of which the appellant was
                  a partner as a tenant, the same would not amount to sub-
                  letting leading to forfeiture of the tenancy; for there cannot
                  be a sub-letting unless the lessee parted with the legal H
    580    SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A         possession. The mere fact that another person is allowed
          to use the premises while the lessee retains the legal
          possession is not enough to create a sub-lease. Thus, the        -t-
          thrust is, as laid down by this Court, on finding out who is
          in legal possession of the premises. So long as the legal
B         possession remains with the tenant the mere factum of the
          tenant having entered into partnership for the purpose of
          carrying on the business in the tenancy premises would not
          amount to sub-letting. In Parvinder Singh v. Renu Gautam
          ((2004) 4 SCC 794] a three-Judge Bench of this Court
                                                                               y~
          devised the test in these terms: (SCC p. 799, para 8)
c
          "If the tenant is actively associated with the partnership
          business and retains the use and control over the tenancy
          premises with him, maybe along with the partners, the
          tenant may not be said to have parted with possession.
D         However, if the user and control of the tenancy premises
          has been parted with and deed of partnership has been
          drawn up as an indirect method of collecting the
                                                                                    '
                                                                               'f
          consideration for creation of sub-tenancy or for providing
          a cloak or cover to conceal a transaction not permitted by
E         law, the court is not estopped from tearing the veil of
          partnership and finding out the real nature of transaction
                                                      J

          entered into between the tenant and the alleged sub-
          tenant"."
                                                                                ~

      26. In Vaishakhi Ram and Others v. Sanjeev Kumar                    -t
F
  Bhatiani9 , one of us (Tarun Chatterjee, J.), in a case of subletting
  under Section 14(1)(b) of Delhi Rent Control Act, held:

                 "A plain reading of this provision would show that if
          a tenant has sub-let or assigned or otherwise parted with
G         the possession of the whole or any part of the premises
          without obtaining the consent in writing of the landlord, he
          would be liable to be evicted from the said premises. That
                                                                          1-
          is to say, the following ingredients must be satisfied before

    9. (2oos) 14 sec 356
H
               MS .. CELINA COELHO PEREIRA & ORS. v. ULHAS 581
              -MAHABALESHWAR KHOLKAR & ORS. [R.M. LODHA, J.]

  -¥
                   an order of eviction can be passed on the ground of sub- A
                   letting:

                           (1) the tenant has sub-let or assigned or parted with
                           the possession of the whole or any part of the
                           premises;                                                    B
                           (2) such sub-letting or assigning or parting with the
                           possession has been done without obtaining the
 ~     "                   consent in writing of the landlord."

                   .............. "It is well settled that the burden of proving sub-   c
                   letting is on the landlord but if the landlord proves that the
                   sub-tenant is in exclusive possession of the suit premises,
                   then the onus is shifted to the tenant to prove that it was
                   not a case ofsub-letting."
'.,;
                 27. In Nirmal Kanta (Dead) Through LRs. v. Ashok D
.. '"'        Kumar and Another10 , this Court held thus :

                   "What constitutes sub-letting has repeatedly fallen for the
                   consideration of this Court in various cases and it is now
                   well-established that a sub-tenancy or a sub-letting comes E
                   into existence when the tenant inducts a third party stranger
                   to the landlord into the tenanted accommodation and parts
       "' i        with possession thereof wholly or in part in favour of such
                   third party and puts him in exclusive possession thereof.
                   The lessor and/or a landlord seeking eviction of a lessee F
                   or tenant alleging creation of a sub-tenancy has to prove
                   such allegation by producing proper evidence to that effect.
                   Once it is proved that the lessee and/or tenant has parted
                   with exclusive possession of the demised premises for a
                   monetary consideration, the creation of a sub-tenancy and/ G
                   or the allegation of sub-letting stands established."
        ~

                  28. The legal position that emerges from the aforesaid
              decisions can be summarised thus :



-             1o. (2008) 7 sec 722                                                      H
    582    SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A       (i) In order to prove mischief of subletting as a ground for        1',-
  eviction under rent control laws, two ingredients have to be
  established, (one) parting with possession of tenancy or part
  of it by tenant in favour of a third party with exclusive right of
  possession and (two) that such parting with possession has
B been done without the consent of the landlord and in lieu of
  compensation or rent.

         (ii) Inducting a partner or partners in the business or               '\.' ~
    profession by a tenant by itself does not amount to subletting.
    However, if the purpose of such partnership is ostensible and
c   a deed of partnership is drawn to conceal the real transaction
    of sub-letting, the court may tear the veil of partnership to find
    out the real nature of transaction entered into by the tenant.

       (iii) The existence of deed of partnership between tenant
D and alleged sub-tenant or ostensible transaction in any other
  form would not preclude the landlord from bringing on record              'y
                                                                                     '
  material and circumstances, by adducing evidence or by means                       ·\

  of cross-examination, making out a case of sub-letting or
  parting with possession in tenancy premises by the tenant in
E favour   of a third person.

         (iv) If tenant is actively associated with the partnership
    business and retains the control over the tenancy premises with            .I.
    him, may be along with partners, the tenant may not be said to        ~·
    have parted with possession.
F
       (v) Initial burden of proving subletting is on landlord but once
  he is able to establish that a third party is in exclusive
  possession of the premises and that tenant has no legal
  possession of the tenanted premises, the onus shifts to tenant
G to prove the nature of occupation of such third party and that
  he (tenant) continues to hold legal possession in tenancy               )Ir-
  premises.

        (vi) In other words, initial burden lying on landlord would

H
    stand discharged by adducing prima facie proof of the fact that
                                                                                     ..
 MS. CELINA COELHO PEREIRA & ORS. v. ULHAS 583
 MAHABALESHWAR KHOLKAR & ORS. [RM. LODHA. J.]
a party other than tenant was in exclusive possession of the      A
premises. A presumption of sub-letting may then be raised and
would amount to proof unless rebutted.

      29. The main question that falls to be determined in the
 present case is: is High Court justified in non-suiting the
 landlord on the ground that he has not pleaded that business 8
 of the firm Mis. Mandovi Tours and Travels is not conducted by
 its partners, but by Balaji Lawande ·and Netravalkar and that
·tenant has parted with the premises by subletting the same to
 these two persons under the garb of deed of partnership by
 constituting a bogus firm? In our judgment, the answer have to C
 be in negative. In the plaint, the landlord averred that the tenant
 has sub-let the premises to Mis. Mandovi Tours and Travels, a
 partnership concern, without his permission and that the sub-
 lessee·has been exclusively running the business in the rented
 premises although he has not pleaded specifically that the D
 premises have been sublet to Balaji Lawande and Netravalkar
 but such lack of pleading cannot be held to be fatal. It has to
 be kept in mind that a transaction such as sub-letting by tenant
 which is not permissible under lease may be outwardly a
 deceptive arrangement and landlord may not come to know of E
 true facts. The pleadings in such matters ought not to be
 construed too technically. The true test, as has been repeatedly
 said, is to see whether the other side has been taken by
 surprise or prejudiced.

     30. If the purpose of constituting partnership by the tenant F
is ostensible and a deed of partnership is drawn to conceal the
real trans~ction of subletting in a given case, the court may be
required to tear the veil of partnership to find out the real nature
of transaction entered into by the tenant and in such
circumstances the evidence let in by the landlord cannot be G
ignored on the ground that there is some variance between '
pleading and proof. In a case such as the present one, the rule
of secundum allegata et probata is not strictly applicable as
the tenant cannot be said to have been put to any prejudice.
                                                                  H
    584 SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A       31. The High Court, as the discussion in impugned
  judgment shows, has been too technical in construing the               "<(-
  pleadings of the case overlooking the fact that plea of sub-
  letting. has been set up by landlord in the plaint and there has
  been full and critical examination of the evidence by the
B Additional    Rent Controller as well as the Administrative                        ~




  Tribunal. The Additional Rent Controller and the Administrative
  Tribunal cannot be said _to have misdirected themselves either
  on law or on facts. Both Authorities found as a fact that
  Mandovi Tours and Travels was not a genuine partnership and            )' .....

  it was formed to cover up the subletting of the suit premises.
c They also found as a fact that the partnership h~ving not been
  found to be genuine partnership, it was difficult to hold that the
  tenant continued to have a control over the suit premises. These
  findings recorded by the Administrative Tribunal as well as the
  Additional Rent Controller are based on the consideration of
D evidence on record. In any case, it cannot be said that the                     ...
  aforesaid view of the Rent Control Authorities is not a possible        y
  view.                                                                       ~   .......


      32. In Bathutmal Raichand Oswal v. Laxmibai R. Tarta
              11
E And Another    , this Court held :


        "The High Court cannot in guise of exercising its
        jurisdiction under Article 227 convert itself into a court of
        appeal when the Legislature has not conferred a right of          ..
        appeal and made the decision of the subordinate court or         +
F       tribunal final on facts."

         33. In State through Special Cell, New Delhi v. Navjot
    Sandhu alias Afshan Guru And Others12 this Court explained                       ,
    the power of the High Court under Article 227 thus :                           "
G
        'Thus the law is that Article 227 of the Constitution of India
        gives the High Court the power of superintendence over

    11. (1975) 1 sec 858
    12. (2003) 6 sec 641


                                                                                    -
H
             MS. CELINA COELHO PEREIRA & ORS. v. ULHAS585
             MAHABALESHWAR KHOLKAR & ORS. [R.M. LODHA, J.]

                  all courts and tribunals throughout the territories in relation    A
•-»               to which it exercises jurisdiction. This jurisdiction cannot
                  be limited or fettered by any Act of the State Legislature.
                  The supervisory jurisdiction extends to keeping the
                  subordinate tribunals within the limits of their authority and
                  to seeing that they obey the law. The powers under Article         B
                  227 are wide and can be used, to meet the ends of justice.
                  They can be used to interfere even with an interlocutory
                  order. However the power under Article 227 is a
,,. 1
                  discretionary power and it is difficult to attribute to an order
                  of the High Court, such a source of power, when the High           c
                  Court itself does not in terms purport to exercise any such
                  discretionary power. It is settled law that this power of
                  judicial superintendence, under Article 227, must be
                  exercised sparingly and only to keep subordinate courts
                  and tribunals within the bounds of their authority and not
'                                                                                    D
                  to correct mere errors. Further, where the statute bans the
    'f            exercise of revisional pow~rs it would require very
                  exceptional circumstances to warrant interference under
                  Article 227 of the Constitution of India since the power of
                  superintendence was not meant to circumvent statutory law.
                  It is settled law that the jurisdiction under Article 227 could    E
                  not be exercised "as the cloak of an appeal in disguise"."

    J             34. The aforesaid two decisions and few other decisions,
        -~
             namely, Chandavarkar Sita Ratna Rao v. Ashalata S.
             Guram 13 , State of Maharashtra v. Mi/ind & Ors.14, Ranjeet F
             Singh v. Ravi Prakash 15 , came to be considered by this Court
             in the case of Shamshad Ahmad & Ors. v. Tilak Raj Bajaj
             (Deceased) through LRs. And Others16 and this Court held :

                  "Though powers of a High Court under Articles 226 and
                                                                        G
                  227 are very wide and extensive over all courts and
    ~
             13. (1986) 4 sec 447
             14. (2001) 1 sec 4
             15. (2004) 3 sec 682
             1s. (2008) 9 sec 1                                                      H
    586      SUPREME COURT REPORTS [2009] 15 (ADDL.) S.C.R.


A         tribunals throughout the territories in relation to which it
          exercises jurisdiction, such powers must be exercised             i;- ..
          within the limits of law. The power is supervisory in nature.
          The High Court does not act as a court of appeal or a court
          of error. It can neither review nor reappreciate, nor reweigh
B         the evidence upon which determination of a subordinate
          court or inferior tribunal purports to be based or to correct
          errors of fact or even of law and to substitute its own
          decision for that ofthe inferior court or tribunal. The powers
          are required to be exercised most sparingly and only in
                                                                            "~
c         appropriate cases in order to keep the subordinate courts
          and inferior tribunals within the limits of law."

        35. In light of the aforesaid legal position concerning
  jurisdiction of the High Court under Article 227, which the High
  Court failed to keep in mind, it must be held that in the facts                     \
                                                                                      ,1
D and circumstances of the case and the findings recorded by                    _,,

  the Additional Rent Controller as well as the Administrative                        ~

  Tribunal, High Court was not justified in interfering with the            y
                                                                                      ~
  concurr~nt orders of eviction based on the ground of sub-letting
   in exercise of its po~er under Article 227 of the Constitution of
E India.
         36. The submission of the learned senior counsel for the
    respondents that the powers of the Rent Controller under the
    Act, 1968 are exercisable like that of courts of Mamlatdars        :.
                                                                    J-
    under the Goa, Daman and Diu the Mamlatdar's Court Act,
F
    1966 and that onus never shifted to the tenant is devoid of any
    substance and is noted to be rejected.

         37. For the foregoing reasons, the appeal must be allowed
    and is allowed. The judgment dated November 29, 2006
G   passed by the High Court is set aside. The parties will bear
    their own costs.

    K.K.T.                                            Appeal allowed.      ""


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