1992 (4) TMI 183 - SC - Companies Law

Interpretation of section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985

Held that:- Appeal dismissed. Except in cases covered by the two provisos to sub-section (1) of section 23, there is a prohibition for a tenant to sub-let the whole or any part of the premises let to him or to assign or transfer in any other manner his interest therein. This prohibition is, however, subject to a contract to the contrary. A tenant who sublets or assigns or transfers the premises in contravention of this prohibition loses the protection of law and can be evicted by the landlord under section 21(1)(f). The provisions of section 22(1) were not attracted to the eviction proceedings instituted by the respondents against the appellant-company.The provisions of section 22(1) did not, therefore, bar the prosecution of the said proceedings by the respondents and the order dated September 30, 1989, passed by the XII Additional Small Causes Judge, Bangalore, allowing the eviction petition cannot be held to have been passed in contravention of the provisions of section 22(1) of the Act.