Employee Of ‘Tenant’ Partnership Firm Not Necessary Party In Rent Proceedings

The legal effect of eviction decree under the Rent Act is that the possession of the tenant-firm and persons claiming through such tenant become unauthorized. Since the tenant is a Firm, persons connected with the internal affairs of the Firm such as its partners and the employees working in the Firm are also bound by the eviction decree for the simple reason that all such persons are claiming through the tenant-Firm.

An employee of a tenant is never considered to be in actual possession of tenanted premises much less in possession in his legal right. Indeed, he is allowed to use the tenanted premises only with the permission of his employer by virtue of his contract of employment with his employer. An employee, therefore, cannot claim any legal right of his own to occupy or to remain in possession of the tenanted premises while in employment of his employer or even thereafter qua landlord for want of any privity of contract between him and the landlord in respect of the tenanted premises.

A tenancy is a creation of contract between the two persons who are capable to enter into contract called lessor/landlord and the lessee/tenant. The two persons can be either living person or juristic persons such as Partnership Firm or a Company.

Once the tenancy is created either orally or in writing with respect to a land or building then it is always subject to the relevant provisions of the Transfer of Property Act, 1882 and the State Rent Acts. Sections 105 to 111 of the TP Act provide certain safeguards, create some statutory rights, obligations, duties whereas the State Rent Acts, inter alia, specify the grounds to enable the lessor to evict the lessee/tenant from the demised premises.

If the lessee/tenant is a living person, then in such event, the tenant would also include his legal representatives in the event of his death together with his dependents living with the tenant in the tenanted premises. Likewise, if the lessee/tenant is a juristic person, i.e., partnership Firm then such tenant would represent the interest of all the partners of the Firm and the employees working in the Firm. Such persons since claim through the Firm, they have no right of their own in the tenancy and in the demised property qua landlord.

In rent proceedings the lessee/tenant is the only necessary or/and proper party and none else. A person, who claims through lessee/tenant, is not a necessary party.

Ref:

IN THE SUPREME COURT OF INDIA

CIVIL APPEAL No.11868 OF 2016

(ARISING OUT OF SLP (C) No. 19259 of 2010)

Nandkishor Savalaram Malu (Dead) Through Lrs.

…….Appellant(s)

VERSUS

Hanumanmal G. Biyani (D) Thr. Lrs. & Ors. 

……Respondent(s)

………...................................J. [A.K. SIKRI]

…...……..................................J. [ABHAY MANOHAR SAPRE]

November 29, 2016