1985 (5) TMI 242 - SC - Indian Laws

Summary

Issues Involved:
1. Whether statutory tenancy is heritable upon the death of the statutory tenant.
2. Whether the heirs of a deceased tenant whose contractual tenancy in respect of commercial premises has been determined are entitled to the same protection against eviction afforded by the Act to the tenant.

Summary:

Issue 1: Heritability of Statutory Tenancy
- The primary question was whether statutory tenancy is heritable on the death of the statutory tenant. The term 'statutory tenant' is not explicitly defined in the Delhi Rent Control Act 1958 but is understood to denote a tenant whose contractual tenancy has been terminated but who continues in possession due to protection from eviction under rent control legislation.
- The Court observed that the definition of 'tenant' in Section 2(1) of the Delhi Rent Control Act 1958 includes a statutory tenant, stating that 'tenant' includes any person continuing in possession after the termination of his tenancy. This inclusion places a statutory tenant on the same footing as a contractual tenant regarding rent control legislation.
- The Court noted that the distinction between contractual tenancy and statutory tenancy is obliterated by rent control legislation, as both are treated equally in terms of rights and obligations. The Court concluded that if a contractual tenant's estate or interest in the premises is heritable, the same should apply to a statutory tenant.
- The Court overruled conflicting observations from the case of Ganpat Ladha v. Shashikant Vishnu Shinde, emphasizing that the statutory tenant has an estate or interest in the premises which can be inherited.

Issue 2: Rights of Heirs of Deceased Tenant in Commercial Premises
- The Court addressed whether the heirs of a deceased tenant, whose contractual tenancy in respect of commercial premises has been determined, are entitled to the same protection against eviction as the tenant.
- The Court reiterated that the definition of 'tenant' in Section 2(1) of the Delhi Rent Control Act 1958 includes any person continuing in possession after the termination of his tenancy. This protection extends to the heirs of the deceased tenant, as the tenancy rights are heritable.
- The Court noted that the Delhi Rent Control Act does not differentiate between residential and commercial premises regarding the heritability of tenancy rights. The absence of specific provisions restricting the heritability of commercial tenancies indicates that the Legislature intended for such tenancies to be heritable.
- The Court highlighted the practical implications of denying heritability of commercial tenancies, such as the potential disruption of a family's livelihood and business continuity. The Court concluded that the heirs of a deceased tenant in commercial premises are entitled to inherit the tenancy rights and continue to enjoy the protection against eviction under the Act.

Conclusion:
- The Court allowed the appeal, set aside the judgment of the High Court, and remanded the case to the High Court for a decision on the merits. The Court emphasized that the statutory tenancy is heritable and that the heirs of a deceased tenant in commercial premises are entitled to the same protection against eviction as the tenant.