Praveen Sharma (Since Deceased) & Others vs. Ravi Kumar & Another

Non Joinder of Partnership firm and its effect

Introduction:

The plaintiffs purchased a two-storied building in Meerut Cantt through a registered sale deed in 2006. The disputed shop was let out to the partnership firm M/s Janta Finance & Trading Corporation, in which the defendants and their father were partners.Upon the death of one partner, the firm allegedly dissolved. The plaintiffs claimed the defendants inherited the tenancy rights.The plaintiffs filed a suit alleging default in rent payment and subletting the shop to a registered society.

Brief Facts of the Case:The defendants contested the suit, asserting that the firm had been reconstituted and the plaintiffs lacked title over the property.They argued that rent was regularly deposited and denied subletting the shop. The trial court decreed in favor of the plaintiffs, leading the defendants to file a revision before the High Court.

Issues Involved: Whether the suit was defective due to the non-joinder of the partnership firm as a party.? Whether the defendants denied the plaintiffs' title, rendering them ineligible for protection under Section 20(4) of the U.P. Act No. 13 of 1972. Whether the defendants had sublet the disputed shop, violating tenancy terms.

Submissions of the Parties:

Plaintiffs: The shop tenancy was transferred to the defendants after the firm's dissolution.The defendants defaulted on rent payments and sublet the shop without permission. The defendants cannot deny the plaintiffs' title after recognizing them as landlords.

Defendants: The firm was reconstituted and remained the tenant; its non-joinder rendered the suit defective. Rent was deposited regularly, and no valid notice of termination under the Transfer of Property Act was served. The alleged subletting was a misunderstanding; the shop was used for correspondence purposes only.

Reasoning and Analysis by the Court: Non-joinder of the Partnership Firm: The court held that under Order 30, Rule 1 CPC, suing partners individually was valid. A firm is not a legal entity but a collective of partners; thus, the suit was not defective. Denial of Title: The court noted that defendants acknowledged the landlord-tenant relationship and made rent deposits.The plea challenging the sale deed was deemed not a denial of title but a procedural argument.The trial court erred in concluding that the defendants were ineligible for protection under Section 20(4).Subletting Allegation:Evidence demonstrated that the society operated from the disputed shop, including tax returns and registration documents.The court found the defendants failed to prove that the shop was not sublet.Under Section 25 of the U.P. Act, parting with possession to a separate legal entity (the society) constituted subletting.Default in Rent Payment:The court upheld the finding of default since defendants failed to prove unconditional rent payments.

Decision:

1. The High Court upheld the trial court's decree of eviction on the ground of subletting.

2. It modified the order to grant the defendants protection under Section 20(4) regarding rent arrears.

3. The revision was disposed of with the eviction decree maintained.

Conclusion:The case establishes critical principles about the distinction between procedural and substantive aspects of tenancy disputes. It emphasizes that subletting to a legal entity distinct from tenants constitutes a violation under rent control laws. The judgment also highlights the necessity of clear evidence to support claims of reconstitution and denial of title. The ruling reflects a balanced application of statutory provisions to protect landlords' rights while ensuring procedural fairness for tenants.

Case Title: Praveen Sharma (Since Deceased) & Others vs. Ravi Kumar & Another

Case Number: S.C.C. Revision No. 269 of 2014

Neutral Citation: LAWS All 2019 [3] 114

Date of Order: 6 March 2019

Court: High Court of Judicature at Allahabad

Judge: Hon'ble Manoj Kumar Gupta

Advocate Ajay Amitabh Suman

IP Adjutor 

[Patent and Trademark Attorney] 

High Court of Delhi

Email: ajayamitabhsuman@gmail.com

 Phone: 9990389539

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