Civil Procedure Code, 1908: Order 26 rule 9, Order 39 rule 7
and section 115-Commissioner appointment of-By Court-Notice to
parties not necessary if purpose of appointment would be defeated or
frustrated-Revisional Court to be reluctant to embark on independent
reassessment of evidence and supplant its own conclusion.
East Punjab Urban Rent Restriction Act, 1949: Sections 13 and
15(5)-Tenant-Eviction on ground of sub-letting-Right to enjoyment
of property to be for consideration-Concurrent finding with regard to
exclusive possession-Whether amenable to reversal in revision.
Transfer of Property Act, 1882: Section 105-Lease and
licence-Distinction between-Determined by the law and not by the
label parties choose to put upon it-Right to exclusive possession-Determination of from acts done by grantee.
The appellants had granted a lease of commercial premises in
favour of the respondent-company, who carried on the business in
clothing and textiles in the demised premises. Later, the appellants
moved an application under section 13 of the East Punjab Urban Rent
Restriction Act, 1949 seeking eviction of the respondent inter alia on the
ground that it had unauthorisedly and without the consent of the appellants inducted two sub-tenants-a tailor and an ice-cream vendor-in
two portions of the premises. The defence of the respondent in the
written statement was that the maintenance of such booths had become
a necessary adjunct of all big shops in modern shopping centres, and
that the respondent remained in the exclusive possession of the demised.
premises.
The appellants relied particularly on the Report and evidence of
the Court-Commissioner who in his report substantially corroborated
appellants' charge of sub-letting. On the other hand, the respondent
relied upon the agreements entered into by it with the· alleged subtenants which, according to it, clearly excluded any possibility of sub-letting. The respondent also examined M.L. Sharma, (R. W. 3) a senior architect in Chandigarh Administration who produced the Plans
(Ext. R. 4) relating to certain alterations in the demised premises.
The Rent Controller, on an appreciation of the evidence, was
persuaded to the view that while the allegations of sub-letting in favour
of the tailor had not been established, the case of sub-letting so far as
the Ice-cream parlour was concerned had clearly been established. The
Rent Controller held that the evidence on record indicated the exclusive
possession of M.S Kwality Ice Cream. The Rent Controller further held
that in the circumstances of the case it was also legitimate to draw an
inference, and raise a presumption that monetary consideration alone
had prompted the respondent into the transactions.
The respondent filed an appeal before the District Judge, and the
Appellate Authority affirmed the finding of the Rent Controller on the
question of sub-letting in so far as the Ice Cream Parlour was concerned. The Appellate Authority also found that even in the case of the
tailor there was sub-letting.
In Civil Revision, the High Court upon a re-appreciation of the
evidence set aside the concurrent finding of the Courts below in regard to the element of exclusive possession and set-aside the order of eviction
passed by the Courts below. The High Court relied on the agreements
between the respondent and the sub-tenants and held that the conditions prescribed in these documents did prima facie indicate that it was a case of licences and not of sub-letting. The High Court took note of the
procedural objection in regard to the appointment of the local Commissioner without notice to the respondent, and was of the view that there
were circumstances to show that his report was not factually correct.
On behalf of the appellants it was contended that (i) the High Court was in error in interfering, in exercise of its revisional jurisdiction, with the concurrent finding of fact recorded by the courts below; .
(ii) the reliance by the High Court on the evidence of R. W. 3 and Plans
(Exhibit R. 4) on the point of exclusive possession was wholly misplaced; (iii) a finding of fact which was the result purely of appreciation
of oral evidence by the trial court could not be interfered with by an Appellate-Court and a-fortiorari in Revision; and (iv) the view of the
High Court as to the alleged infirmity of the Court-Commissioner's
report was erroneous.
On behalf of the respondent it was contended that (i) where a
finding of fact was shown to have been rendered infirm and vitiated by a misreading of evidence, the Revisional jurisdiction under the Act,
which was wider than that under section 115 C.P.C. could be invoked to
correct errors even in findings of facts; (ii) the finding of a question of
sub-tenancy being a mixed question of fact and law, this Court even on
an independent consideration of the whole matter, should not interfere
as one of the essential ingredients in the concept of a sub-lease, viz.,
the existence of monetary consideration, in the form of 'Rent', as distinct from consideration by way of services, was wholly lacking; and
(iii) the appeal should fail on the correctness of the finding of the High
Court on the lack of exclusive possession alone; and (iv) the two transactions lacked the normal and the usual indicia of tenancy and were no
more than mere personal privileges or personal-licence to occupy, and
that no interest in the property was transferred.
Allowing the appeal, this Court,