May 2016
Tenant – Where partnership is held to be created to conceal the real transaction of subletting, tenant is liable to be evicted on grounds of wrongful subletting. [Bombay Rents Act, 1947, Section 13]
By Dr. K. Shivaram,Senior Advocate; Rahul K. Hakani, Advocate
Reading Time 1 mins
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Smt. Taralakshmi Maneklal vs. Shantilal Makanji Dave and Ors. AIR 2006 (NOC) 228 (BOM).
The Bombay High Court was concerned with a petition where Landlords suit for eviction of tenant on the ground of unlawful subletting without consent was dismissed by the lower court and confirmed by the appellate court. According to the tenant, whilst retaining the possession of the suit premises he had merely entered into partnership for carrying on business through the suit premises and as per the law laid down by the Apex Court in the case of Helper Girdharbhai vs. Saiyed Mohmad Mirasaheb Kadri & Ors. (1987) 3 SCC 538, such arrangement, does not amount to subletting. According to the Landlord, the partnership was merely a cloak to conceal the real transaction of subletting. It was held that that the clauses in the partnership deed that profit of partnership would be shared by sub-tenants only and tenant would receive fixed monthly amount irrespective of profit or loss in partnership business showed that partnership was not genuine and it was created to conceal real transaction of subletting. It was held that the tenant was liable to be evicted.
