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Issues involved:
The issues involved in the judgment are subletting, assignment, or parting with possession of premises as per Section 14(1)(b) of the Delhi Rent Control Act. Issue 1: Subletting Allegation The Madras-Bangalore Transport Company (West) was accused of subletting the disputed premises to Caravan Goods Carrier Private Limited without landlord consent. The Rent Controller, Rent Control Tribunal, and High Court upheld the eviction order. The appeal was filed under Article 136 of the Constitution. Details: - The appellant argued that there was no subletting as the two entities were essentially the same. - The Respondent-Landlord contended that the entities were distinct legal entities, thus constituting subletting. - Evidence showed that Caravan Goods Carrier Private Limited was formed by partners of Madras-Bangalore Transport Company (West) to continue operations in the territory allotted to the other entity. - Both entities were registered under the Delhi Shops and Establishments Act with offices at the disputed premises. - The Court found that Caravan Goods Carrier Private Limited was essentially the corporate reflection of the partnership firm, with substantial identity between them. Issue 2: Legal Precedents Legal precedents were cited to support the argument against subletting, including cases like Murli Dhar v. Chuni Lal, G. Rangamannar Chetty v. Desu Ragiah, Vishwanath v. Chemmanlal, and Reliable Finance Corporation v. Clearing House. Details: - The Murli Dhar case emphasized that occupation by a firm is the occupation by its partners, rejecting the notion of subletting based on legal entities. - G. Rangamannar case highlighted that subletting requires the lessee to part with legal possession, not just allowing another to use the premises. - Vishwanath case stated that converting a sole proprietary business into a private Limited company does not constitute subletting. - Reliable Finance Corporation case ruled that allowing a firm to function from rented premises by a Managing Director does not amount to subletting. Conclusion: The Supreme Court found that there was no subletting, assignment, or parting with possession of the premises by Madras-Bangalore Transport Company (West) to Caravan Goods Carrier Private Limited. The entities, though legally distinct, were practically one entity, leading to the appeal being allowed with costs.
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