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Regular-article-logo Sunday, 25 May 2025

LANDLORD NOD MUST FOR SUB-TENANCY 

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FROM R. VENKATARAMAN Published 26.09.01, 12:00 AM
New Delhi, Sept. 26 :    New Delhi, Sept. 26:  The Supreme Court today settled the West Bengal Premises Tenancy Act by declaring that tenants should have written permission from their landlords to create sub-tenancy. A division bench of Justice N. Santosh Hegde and Justice S.N. Variava said in their 20-page judgment that if sub-tenancy was created without the landlord's permission, he could initiate eviction proceedings against his tenant. Pointing to a citation - Silverline Forum Pvt. Ltd. vs Rajiv Trust - the judges held that sub-tenancy was legal under three conditions: if it was created after the commencement of the Act the landlord of the premise had given written permission to the tenant to create the sub-tenancy the tenant and sub-tenant had notified the landlord of the creation of the sub-tenancy within a month. Further, the judges said unless the tenant had taken written permission for creating sub-tenancy and notified it to the landlord, the sub-tenant would get evicted along with the main tenant. The apex court gave the verdict against the tenant and sub-tenant in the Biswanath Poddar vs Archana Poddar case. The judges said Calcutta High Court had erred in interfering with the findings of the lower court, which had awarded a verdict in favour of the landlord in that case. The high court had remanded the matter to the trial court again on grounds of allegations of fraud by the sub-tenant. The apex court today clearly settled the law and the legal position under the Act, saying that the sub-tenant 'goes' along with the tenant if the statutory requirements are not fulfilled. The second respondent in the case, the sub-tenant, was running a travel agency from the rented premises. On his submission that he would suffer hardships if he were ordered to be evicted with immediate effect, the apex court gave him time till March 31, 2002, to vacate the premises. The court also ordered that he should pay Rs 7,000 per month to the landlord as damages for occupation of the building till he vacates the premises. While giving the ruling, the apex court rejected an argument that the West Bengal law permitted a contract between the tenant and the sub-tenant without the landlord's knowledge and that there was an 'implied' contract permitting the creation of the sub-tenancy in the statute. The court also said there was no evidence to show that the landlord had consented to the creation of a sub-tenancy. If he had taken rent from the sub-tenant, there was an 'implied contract' to show and prove that the landlord was consenting to the sub-tenancy, the court pointed out. Further, a notice should have been sent to the landlord to the effect that a sub-tenancy was created under Section 16 of the Act, the court ruled, settling the five-year dispute. The apex court said irrespective of whether the sub-tenant was a party to the original eviction case or not, he, too, would be bound by the verdict against the main tenant. Thus, if the main tenant has to be evicted, the sub-tenant would automatically have to follow.    
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