[2017] 14 S.C.R.

437

SMT. SYED SUGARA ZAIDI A

v.
LAEEQ AHMAD (DEAD) THROUGH LRS. & ORS.
(Civil Appeal No. 20915 of2017)
DECEMBER06,2017 B
[KURIAN JOSEPH AND R. BANUMATHl, JJ.}
Rent Control and Eviction:
Uttar Pradesh Urban Buildings (Regulation of Letting. Rent
and Eviction) Act. 1972 - Non-renewal of rent agreement - Effect- C
Appellant-landlord filed a suit for eviction of respondents-tenants
after expiration of the original term of lease - Appellant pleaded
that respondent defaulted regularly in payment of rent and house
tax and after expiration of lease respondent failed to get any fresh
deed executed, therefore their continuance in possession had D
become illegal after service of legal notice for eviction - Held:
After. lapse of lease period, if lessee continues in possession of the
demised premises in absence of an assent by lessor, then he is a
tenant by sufferance and exposes himself to be sued for ejectment
at any time without any prior notice or demand ofpossession - The
term in the lease agreement for renewal of lease does not ipso facto E
extend the tenure or term of lease - Jn absence of renewal of rent
agreement. the possession of respondents-tenants in the demised
premises has become unlawful and thus, he is liable to be evicted.
Uttar Pradesh Urban Buildings (Regulation of Letting, Rent
and Eviction) Act, 1972 - Transfer of tenancy in violation of terms F
of rent agreement - Appellant-landlord filed a suit for eviction of
respondents-tenants after expiration of the original term of lease -
Appellant pleaded that respondent constructed shops in the suit
premises and let out the same to the third party in violation of terms
of rent agreement - Held: Jn the rent agreement. the parties have
not agreed to create or transfer interest in the tenancy in favou~ of G
third party - Though. sub-letting of the premises for commercial.·
purpose was agreed to by the original parties, transfer of interest
in tenancy leading to creation of third party interest in the suit
property could not have been done in the absence of a specific
H
437
438 SUPREME COURT REPORTS [2017] 14 S.C.R.

A term in the rent agreement -Thus, the respondents-tenants /i'able to

be evicted on the ground of violation of terms of rent agreement by
transfer of interest in tenancy to third person, respondent no.3.
Allowing the appeal, the Court
HELD: Whether after expiry of the lease period and the
B determination of the tenancy whether the respondents-tenants
can continue in possession of the suit property, when the lease
was not renewed? [Para 8)
1.1 The Appellant-landlord issued a notice to the
respondents-tenants seeking vacant possession of the demised
C premises on account of determination of lease due to efflux of
time. After lapse of lease period, if a lessee continues in
possession of the demised premises in absence of an assent by
lessor, then he is a tenant by sufferance and exposes himself to
be sued for ejectment at any time without any prior notice or
D demand of possession. [Para 12)(443-E-F]
1.2 The term in the lease agreement for renewal of lease
deed does not ipso facto extend the tenure or term of the lease.
So far as the clause for renewal in the lease deed is concerned, it
was held in the ease ofDelhi Development Authority v. Durga Chand
E Kaushish that such covenant only entitled a lessee to obtain a
fresh lease in accordance with and in due satisfaction of the law
governing the making of leases. In the absence of renewal of
rent agreement, the possession of the respondents-tenants in
the demised premises has become unlawful and they are liable to
be evicted. [Para 13)(443-F-G]
F
2. Another ground for eviction is construction of shops in
the suit premises by the tenants and sub-letting the same in
violation of terms of rent agreement. Though, there is a clause
' up construction,
in the rent agreement enabling the tenants to put
there is no clause in the lease agreement permitting the tenants
G to transfer his interest of tenancy to third party. It is the case of
. the appellant that in violation of the rent agreement, one of the
original tenants, transferred his interest of tenancy in favour of
third respondent. The appellant-landlord specifically denied that
such transfer of interest in the tenancy was with the consent of
the original landlord. On the other hand, the respondents-tenants
H
 SMT. SYED SUGARA ZAIDI v. LAEEQ AHMAD (DEAD) 439
THROUGH LRS.

in support of their claim submitted that such transfer of interest A

in tenancy had taken place with the consent and knowledge of
the original landlord, relied upon the receipts said to have been
signed by the original landlord issued to one of the tenants. In
view of specific denial by the appellant-landlord that they have
permitted such transfer of interest, the receipts ought to have. B
been proved by adducing evidence. The respondents-tenants,
though relied upon the said documents, had not taken steps to
prove those documents. [Para 14][444-A-D]
3. The courts below recorded findings that the rent
agreement nowhere prohibited any of the tenants from
transferring their interest in tenancy and therefore, there was no
c
violation of any of the terms of the rent agreement. Had the
parties agreed to create or transfer of interest in the tenancy in
favour of third party, they would have added a specific term in
that regard in the rent agreement. Though, sub-letting of the
premises for commercial purpose was agreed to by the original D
parties, transfer of interest in tenancy leading to creation of third
party interest in the suit property could not ha~e been done in
the absence of a specific term in the rent agreement. Thus, the
respondents-tenants are liable to be evicted on the ground of
violation of terms of rent agreement by transfer of interest in
tenancy to respondent No. 3. [Para 15)(444-E-G] E

4. So far as the default in payment of rent and the deposit

arrears of rent by the defendants and whether the respondents
are entitled to the benefits of Section 20(4) of the U.P. Act 13 of
1972, the courts below recorded concurrent findings that Section
20(4} of the U.P. Act 13 of 1972 has been complied with. F
Accordi.ng to the appellant-landlord, the respondents have failed ".

to regularly deposit the rent in the trial court and there was no
compliance of Section 20(4) of-the U.P. Act 13 of 1972. Since, the
respondents-tenants are liable to be evicted on the ground pl
non-renewal of rent agreement and determination of tenancy and G
transfer of tenancy right in violation of terms of rirnt agreement,
there is no need to examine the ground of default in payment of
rent and compliance of Section 20(4) of the U.P; Act 13 of 1972.
[Para 16][444-G-H; 445-A-B]
H
(.
:
440 SUPREME COURT REPORTS [2017] 14 S.C.R.

A Delhi Development Authority v. Durga Chand Kaushish

(1973) 2 SCC 825 : (1974) 1 SCR 535 - relied on.
Case Law Reference
(1974) 1 SCR 535 relied on Para 13
B CIVIL APPELLATE JURISDICTION: Civil Appeal No. 20915
of2017.
From the Judgment and Order dated 09 .10.2009 of the High Court
of Judicature at Allahabad in Civil Revision No. 543of1989.
V. Shekhar, Jitendra Mohan Sharma, Sr. Advs., Manoj Saxena,
C Shashank Shekhar, Ramkrishna, Soumo Palit, Prithviraj Singh, Ms. Stuti
N. Karnwal, Dr. Kailash Chand, Ajit Sharma, Ms. Seema Singh, Adnan,
B. D. Jha, Shakeel Ahmed, Ms. Sadiya Shakeel, Ms. Preeti Jha,
S. K. Sinha, Advs. for the appearing parties.
The Judgment of the Court was delivered by
D
R. BANUMATHI, J. I. Leave granted.
2. This appeal arises out of the judgment dated 09.10.2009 passed
by the High Court of Allahabad in Revision Petition No.543of1989
dismissing the revision petition filed by the original plaintiff7Iandlord thereby
E affirming the judgment of the trial court dismissing the ejectment suit of
the plaintiff7Iandlord.
3. Brief facts of the case are that the suit property No.37(old), 17
and 18 (new numbers) situated at Beli Bazar, Meerut was let out by the
original plaintiff/landlord (Nazar Mohammad Zaidi) to the original
defendants (Abdul Qayuum and Hazi Anvaruul Haq) by way of registered
F rent agreement dated 12.08.1968 for a period of ten years at the rent of
Rs.750/- per month. There was a specific term in the rent agreement
which envisaged renewal of the rent agreement by execution of a separate
registered agreement for a further period of five years at enhanced rent
from Rs.750/- to Rs.800/-permonth. After expiry of the original term
G oflease, landlord (Nazar Mohammad Zaidi) filed ejectment suit in SCC
Suit No. 2of1981 for eviction of defendants/tenants inter alia on the
pleas:- (i) that the period of lease has expired; the defendants/tenants
have failed to get the fresh lease deed executed at the enhanced rent of
Rs.800/- per month; (ii) the defendants/tenants have put up construction
of shops in the suit premises and let out the same to third party in violation
H
 SMT. SYED SUGARA ZAIDI v. LAEEQ AHMAD (DEAD) 441
THROUGH LRS. [R. BANUMATHI, J.]

of the terms of the rent agreement; and (iii) default in payment of rent A
and municipal tax by the defendants.
4. Respondents-tenants contested the suit stating that they have
taken every possible step to get the lease deed renewed for a further
period of five years and also sent the [email protected]/-per month as per
the terms of the lease deed dated 12.08.1968 to the original plaintiff who B
refused to receive the same. The tenants further pleaded that the entire
arrears ofrent, damages along with interest etc. have been deposited in
the court under Section 20(4) of the Uttar Pradesh Urban Buildings
(Regulation of Letting, Rent and Eviction) Act, 1972 (for short 'U.P. Act
13 of 1972 ') and the suit for eviction is liable to be-ilismissed.
c
5. Upon consideration of the pleadings and evidence, the trial court
framed eleven issues and dismissed the suit on the ground that the plaintifV
landlord has not been able to establish any of the grounds for eviction
specified under Section 20 of the U.P. Act 13 of 1972. Insofar as the
issue of construction by defendants/tenants allegedly in violation of terms
of rent agreement was concerned, the trial court held that the construction D
was in consonance with the terms of the rent agreement and there was
nothing in the rent agreement which restricted the right of defendants/
tenants to raise construction in the premises. So far as non-renewal of
the rent agreement is concerned, the trial court held that there was
reluctance on the part of the plaintiff/landlord to renew the rent E
agreement. The trial court further held that there was no default in
payment of rent and the tenants continued paying the rent even after
lapse of!ease period at the enhanced rate ofrent. Being aggrieved, the
plaintiff/landlord approached the High Court by way of revision and the
same came to be dismissed by the impugned order.
F
_6. Mr. V. Shekhar, learned senior counsel for the appellant
contended that the lease deed dated 12.08.1968 was for a fixed period
of ten years and it can further be extended for five years on executing
fresh deed and since the defendants-tenants failed to get any fresh deed
executed, their continuance in possession had become illegal after service
of legal notice for eviction. It was further contended that the courts G
below failed to appreciate that the respondents defaulted many times in
payment of rent and payment of house tax to municipality and even on
the plea under Section 20(4) of the U.P. Act 13 of 1972, the tenants
defaulted in regularly depositing the admitted amount and therefore, the
-respondents-tenants are liable to be evicted. H.
442 SUPREME COURT REPORTS [2017] 14 S.C.R.

A 7. Reiterating the findings of the High Court and the trial court,
the learned counsel for respondents-tenants submitted that the courts
below recorded concurrent findings that every possible step was taken
by the respondents-tenants and it was the plaintiff-landlord who failed to
renew the rent agreement and the concurrent findings so recorded cannot
be interfered with.
B
8. Upon consideration of the rival contentions and materials on
record, the question falling for consideration is whether after expiry of
the lease period and the detennination of the tenancy whether the
respondents-tenants can continue in possession of the suit property, when
the lease was not renewed?
c
9. The suit property was let out to the respondents-tenants by a
registered rent agreement dated 12.08.1968 for a period of ten years on
rent @ Rs.750/- per month. There was a specific term in the rent
agreement which envisaged renewal of the rent agreement by execution
of a separate rent agreement for a further period of five years at enhanced
D rent from Rs. 750!- to Rs.800/- per month. The lease was not renewed
and thereafter the landlord issued a notice to the respondents-tenants on
09 .04.1979 seeking vacant possession of the suit property on account of
detcnnination oflease due to efflux of time.
10. The trial court was of the view that there was no violation of
E the terms of the lease deed as they had put in sufficient efforts in getting
the rent agreement renewed. For atTiving at such conclusion, the trial
court and the High Court placed reliance upon Ex. A-18 (13.06.1978) a
notice allegedly issued by the plaintiff's advocate Guizar Mohd. intimating
the tenants that they are willing to renew the lease as per the terms of
F the rent agreement provided the tenants pay enhanced rent@ Rs.8001-
per month. This piece of evidence was categorically denied by the
landlord. The trial court did not keep in view the denial of the appellant-
landlord regarding issuance of Ex. A-18 notice (13.06.1978). In the light
of denial of issuance of Ex. A-18 notice, it was necessary to adduce
evidence to prove that Ex. A-18 notice was actually issued on instructions
G by the landlord. The burden was upon the respondents-tenants to prove
that the said notice was issued by advocate Guizar Mohd. on the
instructions of the landlord. The trial court pointed out that the
respondents-tenants had taken steps to examine the said advocate; but
he had not appeared before the court. From the materials on record, it
H
 SMT. SYED SUGARA ZAIDI v. LAEEQ AHMAD (DEAD) 443
THROUGH LRS. [R. BANUMATHI, J.]

is not knmvn as to what steps were taken by the tenants to examine the A
said advocate Guizar Mohd. The trial court, in our view, could have
very well exercised its power under Order XVI Rule 14 CPC and
summoned the said advocate as witness. In the absence of examination
of the said advocate Guizar Mohd., the trial court ought not to have
placed reliance upon Ex. A~l8 notice alleged to have been issued on B
the instructions of the landlord.
11. Ex. A-18 notice (13.06.1978) is said to have been issued on
the instructions of the landlord. As pointed out earlier, the landlord issued
eviction notice on 09. 04 .1979 seeking vacant possession of the premises.
If really Ex. A-18 notice dated 13.06.1978 was issued at the instance of
the landlord offering to renew the lease, there was no requirement of
c
issuance of eviction notice on 09 .04.1979 calling upon the respondents-
tenants to hand over the vacant possession ofthe·suit property. The
courts below erred in ignoring landlord's denial of issuance of Ex. A-18
notice (13 .06.1978) and non-examination ofadvocate Guizar Mohd. The
High Court was not right in holding that the respondents-tenants have D
taken steps to get renewal ofrent agreement and there was reluctance
only on the part of the landlord. Be it noted, the tenants have not
approached the court to get renewal of lease agreement beyond
12.08.1978.
12. As pointed out earlier, on 09.04.1979, the landlord issued a E
notice to the respondents-tenants seeking vacant possession of the
demised premises on account of detennination oflease due to efflux of
time. After lapse of lease period, if a lessee continues in possession of
the demised premises in absence of an assent by lessor, then he is a
tenant by sufferance and exposes himself to be sued for ejectment at
any time without any prior notice or demand of possession. F
13. The tenn in the lease agreement for renewal of lease deed
does not ipso facto extend the tenure or term of the lease. So far as the
clause for renewal in the lease deed is concerned, it was held in Delhi
Development Authority v. Durga Chand Kaushish (1973) 2 SCC 825
that such covenant only entitled a lessee to obtain a fresh lease in G
accordance with and in due satisfaction of the law governing the making
ofleases. In the absence of renewal of rent agreement, in our considered
view, the possession of the respondents-tenants in the demised premises
has become unlawful and they arc liable to be evicted.
444 SUPREME COURT REPORTS [2017] 14 S.C.R.

A 14. Yet another ground for eviction is construction of shops in the

suit premises by the tenants and sub-letting the same in violation of terms
of rent agreement. Though, there is a clause in the rent agreement
enabling the tenants to put up construction, there is no clause in the lease
agreement permitting the tenants to transfer his interest of tenancy to
B third party. It is the case of the appellant that in violation of the rent
agreement, Anwar Ul Haq who was one of the original tenants,
transferred his interest of tenancy in favour of third respondent Mohd.
Ilyas alias Chaman. The appellant-landlord specifically denied that such
transfer of interest in the tenancy was with the consent of the original
landlord. On the other hand, the respondents-tenants in support of their
C claim submitted that such transfer of interest in tenancy had taken place
with the consent and knowledge of the original landlord, relied upon Exs.
Al toA7 which are the receipts said to have been signed by the original
landlord issuing to Mohd. Ilyas alias Chaman as one of the tenants. In
view of specific denial by the appellant-landlord that they have permitted
D such transfer of interest, the receipts Exs. Al to A7 ought to have been
proved by adducing evidence. The respondents-tenants, though relied
upon the said documents, had not taken steps to prove those documents.
15. On those issues, the courts below recorded findings that the
rent agreement nowhere prohibited any of the tenants from transferring
E their interest in tenancy and therefore, there was no violation of any of
the terms of the rent agreement. In noting so, the trial court lost sight of
the fact that in the rent agreement, parties specifically incorporated clause
(9), permitting sub-letting by tenants. Had the parties agreed to create
or transfer ofinterest in the tenancy in favour of third party, they would ·
have added a specific term in that regard in the rent agreement. Though,
F sub-letting of the premises for commercial purpose was agreed to by
the original parties, transfer of interest in tenancy leading to creation of
third party interest in the suit property could not have been done in the
absence of a specific term in the rent agreement. Thus, the respondents-
tenants are liable to be evicted on the ground of violation of terms of rent
agreement by transfer of interest in tenancy to respondent No. 3 - Mohd.
G Ilyas alias Chaman.
16. So far as the default in payment of rent and the deposit arrears
of rent by the defendants and whether the respondents arc entitled to
the benefits of Section 20(4) of the U.P. Act 13 of 1972, the courts
below recorded concurrent findings that Section 20(4) of the U.P. Act
H
 SMT. SYED SUGARA ZAIDI v. LAEEQ AHMAD (DEAD) 445
THROUGH LRS. [R. BANUMATHI, J.J

13 of 1972 has been complied with. According to the appellant-landlord, A

the respondents have failed to regularly deposit the rent in the trial court
and there was no compliance of Section 20( 4) of the U.P. Act 13 ·of
1972. Since we have held that the respondents-tenants are liable to be
evicted on the ground of non-renewal ofrent agreement and determination
of tenancy and transfer of tenancy right in violation of terms of rent
agreement, we are not proposed to go into the ground of default in payment B
of rent and compliance of Section 20(4) of the U.P. Act 13of1972.
17. The courts below did not properly appreciate that after service
of eviction notice on 09.04.1979 continuanc.e of respondents' possession
in the demised premises had become illegal. The High Court did riot
appreciate that the respondents have sub-let the property to third party C
and are earning huge profits by simply paying a meager rent ofRs.800/
- per month. The respondents-tenants cannot squat on the property and
make a profit for themselves at the cost of the appellant-landlord and
the judgment of the High Court cannot be sustained. ·
18. In the result, the impugned judgment is set aside and this appeal D
is allowed. The respondents-tenants and the sub-tenants inducted by
them and any other person claiming through them are directed to hand
over vacant possession of the suit premises within a period of one year
from today, failing which the respondents-tenants and their sub-tenants
or other persons claiming through them shall be liable for contempt of E
Court in addition to other proceedings. No order as to costs.

Ankit Gyan Appeal allowed.