NDLI: Apollo Zipper India Limited Vs. W. Newman and Co. Ltd.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Rules of High Court at Calcutta (Original Side) 1914
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Rules of High Court at Calcutta (Original Side), 1914:Chapter XIII-A-Rules 1(B), 6 and 9 – Leave to defend –Permissibility – Suit premises let out to defendant (tenant) – Byoriginal owner (a Company) – At monthly rent of Rs. 40,000/- –Later Company was taken over by the State Government by statutoryenactments – Consequently the ownership of suit premisestransferred to the Authority of the State – Thereafter, the State vestedall the assets of the Authority with the appellant-company – Therebyappellant-Company became absolute owner of the suit premises –Quit Notice was sent to the tenant by the appellant-company u/s.106 of Transfer of Property Act terminating the tenancy anddemanding arrears of rent and vacant possession – Finding no replyto the notice, appellant-company filed summary eviction suit –Respondent-tenant sought leave to defend the suit on three grounds(i) monthly rent of suit premises being Rs. 1600/-, suit was liable tobe filed under Tenancy Act and not under Transfer of Property Act;(ii) ownership of the plaintiff was not clear moreso for want ofattornment made by the tenant of plaintiff’s ownership (iii) there isdispute as regards the amount of monthly rent – Single Judge ofHigh Court declining to grant leave to defend decreed the suit – Inappeal, Division Bench of High Court granted unconditional leaveto defend the suit – On appeal, held: Change of ownership fromoriginal owner to the State and then from State to the plaintiff-company is a matter of record – In the facts of the case, ownershipof the plaintiff was also attorned and accepted by the defendant-tenant – Therefore, the tenant cannot raise plea questioning thetitle of the plaintiff and the plea of attornment – The evidence onrecord proves that the monthly rent of the premises was Rs. 40,000/- and not Rs. 16,00/- – Since the monthly rent of the premisesexceeded the limit prescribed u/s. 3(f) of Tenancy Act, the Tenancy Act would have no application to the premises – Therefore, summarysuit taking recourse to Transfer of Property Act r/w r.1(B) of Rules,is maintainable – Defendant-tenant failed to raise any arguableand substantial defence as required u/r. 6 r/w r.9 – Rent Controland Eviction – Transfer of Property Act, 1882 – s. 106 – West BengalPremises Tenancy Act, 1997 – s. 3(f) – Great Eastern Hotel (TakingOver of Management) Act, 1975 – Great Eastern Hotel (Acquisitionof Undertaking) Act, 1980 – ss. 3(1) 3(2) and 5(11).Evidence:Standard of proof – To prove title – In eviction suit – Held: Ineviction suit landlord is not expected to prove his title like what heis required to prove in a title suit – Rent Control and Eviction.Rent Control and Eviction:Eviction suit – Challenge to the title of the landlord – Scopeof – Held: By virtue of s. 116 of Evidence Act, tenant is estoppedfrom challenging the title of his landlord – However, tenant is entitledto challenge the derivative title of an assignee of the originallandlord – However, this right of the tenant is subject to the caveatthat tenant has not attorned to the assignee – If the tenant pays rentto the assignee or otherwise accepts the assignee’s title, it results increation of attornment, which, in turn deprives the tenant to challengethe derivative title – Evidence Act, 1872 – s. 116.
Judge	Hon'ble Mr. Justice Abhay Manohar Sapre
Neutral Citation	2018 INSC 384
Petitioner	Apollo Zipper India Limited
Respondent	W. Newman And Co. Ltd.
SCR	[2018] 3 S.C.R. 374
Judgement Date	2018-04-20
Case Number	4249

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