TMI Blog1986 (5) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... the old firm was also divided between the new firms area-wise. Under the arrangement each of the new firms was forbidden from carrying on operations in the territory allotted to the other. However, the Madras-Bangalore Transport Company (East) appears to have ceased to function for practical purposes. Even so, the Madras-Bangalore Transport Company (West) could not operate in the territory allotted to the Madras-Bangalore Transport Company (East). So the partners of the Madras-Bangalore Transport Company (West) founded a Limited company styled as the 'Caravan Goods Carrier Private Limited' in order to secure the business in the territory which had been allotted to Madras-Bangalore Transport Company (East) and which business was goi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Chitaley, learned Counsel for the appellant, was that, there was no subletting, assignment or parting with possession of the premises as contemplated by No. 31)(b) of Delhi Rent Control Act. He argued that the Madras-Bangalore Transport Company (West) was always in possession of the premises and that the Caravan Goods Carrier Private Limited, whose Directors were partners of Madras-Bangalore Transport Company (West) was in truth and reality no other than the Madras-Bangalore Transport Company (West) itself. On the other hand, the learned Counsel for the Respondent-Landlord urged that the Madras-Bangalore Transport Company (West) was a partnership firm and the Caravan Goods Carrier Private Limited was a Limited company and, therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corporate reflection' of the partnership firm of Madras-Bangalore Transport Company (West). The question for consideration is whether, it could be said that there was subletting, assignment or parting with possession of the premises within the meaning of Section 14(1)(b) of the Delhi Rent Control Act merely because the Caravan Goods Carrier Private Limited was a legal personality distinct from the firm and its partners and it operated from the disputed premises. 4. Dr. Chitaley invited our attention to Murli Dhar v. Chuni Lal AIR 1970 (SC) 922 G. Rangamannar Chetty v. Desu Ragiah A.I.R. 1954 Mad 182, Vishwanath v. Chemmanlal AIR 1975 SC 514 and Reliable Finance Corporation v. Clearing House. 1984(2) R C R 449 5. In the first case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possession all through in his individual capacity. It is impossible to treat him as possessing one legal personality as member of one firm and another such personality as member of another firm. The question what was necessary to be proved when subletting was alleged was then considered and it was said, It seems to us that the landlord cannot succeed. He has to prove it as a fact that there was a sub-letting by his tenant to another person. He does not prove this merely by showing that his tenant was one firm and the premises are in the occupation of another firm as he sought to do in the present case. Mere possession by somebody other than the tenant would not necessarily prove that the premises had been sub-let by the tenant to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e retains the legal possession is not enough to creates a sub-lease. 7. In Vishwanath v. Chaman Lal (supra), a learned single judge of the Delhi High Court held that if an individual took the premises on rent and then converted his sole proprietary business into a private Limited company in which he had the controlling interest he could not be said to have sub-let, assigned or otherwise parted with possession of the premises so as to entitle the landlord to evict him from the premises. In Reliable Finance Corporation v. Clearing House (supra), another learned single judge of the High Court held that where a private limited company was functioning from a rented premises and the Managing Director of that company allowed a firm of which he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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