Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 1345 of 2017, Judgment Date: Feb 02, 2017

                                                                  REPORTABLE
                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION


                        CIVIL APPEAL NO.1345 OF 2017
            [ARISING FROM SPECIAL LEAVE PETITION (C) NO.823/2015]


RICHARD LEE                                                    PETITIONER(S)

                                VERSUS


GIRISH SONI AND ANR.                                           RESPONDENT(S)


                               J U D G M E N T

KURIAN, J.

      Leave granted.
2.    The simple issue  that  arises  for  consideration  in  this  case  is
whether the appellant should be a proper  party  in  the  Eviction  Petition
No.18/2010 filed by the  respondents  herein  before  the  Rent  Controller,
Delhi.  The appellant herein moved  an  application  for  impleadment  as  a
necessary party in the eviction petition. Paragraph  3  of  the  application
for impleadment filed under Order I Rule 10 reads as follows:

“3.   That the petition filed by the petitioenrs is false.  It is  submitted
that the shop  in  dispute  was  let  out  by  Shri  Chuni  Lal  Soni  to  a
partnership firm M/s. K.K. Lee with effect from November,  1963   M/s.  K.K.
Lee was a partnership firm comprising of  three  brothers  namely  Shri  Lee
Queth Khong, Shri Lee Sheam Khong and  Lee  Aches  Khong  as  its  partners.
Shri Chuni Lal Soni had been recovering rent from the said partnership  firm
from the inception of  tenancy  till  he  continued  to  recover  the  rent,
through A/c  Payee  cheques  issued  from  the  Bank  account  of  the  said
partnership firm, Shri Chuni Lal Soni somewhere in 1968-69 called  upon  the
said partnership firm to pay rent to Dr. P.C. Soni, his brother.   The  said
partnership firm thereafter paid the  rent  to  Dr.  P.C.  Soni  by  way  of
cheques from its bank account.  Dr. P.C. Soni  however  did  not  issue  any
receipt after  receiving  the  said  cheques.   The  shop  in  disputes  was
initially let out at Rs.350/-  per month.  Thereafer somewhere  in  1983  on
an understanding and contract entered into between Dr.  P.C.  Soni  and  the
said partnership firm M/s. KK Lee the rent was  increased  to  Rs.500/-  per
month.  It is pertinent to mention here that initially Shri L.  Queth  Khong
started the business in the name of M/s K.K. Lee as its sole  proprietor  at
28A, Khan Market New Delhi.  He took Shri Le Sheam Khong and Shri Lee  Aches
Khong, his brothers as partners  in  the  said  business  with  effect  from
1.11.1960.  The said partnership took the shop in dispute on rent from  Shri
Chuni Lal Soni and shifted its business to the shop  in  dispute.   Shri  L.
Queth Khong was never a tenant in  the  shop  in  dispute  in  his  personal
capacity.  All the said three brothers have died.  The applicant is the  son
of Shri Lee Sheam Khong and is one of the tenants in the shop  in  disputes.
The applicant is carrying on business in the shop in dispute along with  the
Shri Sean Wee Lee S/o Late Shri Lee Queth Khong, Shri Kenneth Lee, s/o  Shri
Late Lee Aches Khong and Mr. Beryl A Lee, w/o Shri Late Lee Sheam  Khong  as
partners of M/s. K.K. Lee.  All the said partners are  the  tenants  in  the
shop in dispute and are carrying on the business in the name of M/s. KK  Lee
therein.  It is pertinent to mention here that the rent receipts were  being
issued in the name of KK Lee by Shri Chuni Lal Soni.”

3.    It is the contention of the respondents that there is  no  tenancy  in
favour of the firm in the name and style K.K. Lee as has already been  found
by the
Rent Controller in a previous proceedings as per order dated  24.10.1998  of
the Additional Rent Controller, Delhi, when the  respondents  initiated  the
eviction proceedings  against  the  original  tenants  Shri  L.  QuethKhong.
Paragraph 10 of the said order, to the extent relevant, reads as follows:

“10.  The reliance of the respondent on payment of  rent  by  account  payee
cheque and encashment by the petitioner is of no help  as  payment  of  rent
will not create the relations of landlord and tenant.   Reliance  is  placed
on illegible.  Similarly, Ex.AW1/R2 will  not  create  the  relationship  of
landlord and tenant.  For creation of relationship of  landlord  and  tenant
must be at ad-idem.  Ex.AW1/R1 is of no help to  the  respondent  as  in  my
considered view there is inter pollution/cutting in the word Mr. and it  has
been made as M/s from Mr. this observation of mine is  substantiated  if  we
perused Ex.AW1/3 to Ex.AW1/29.  All these counter foils of rent receipts  on
the bottom categorically contained the signatures of  the  tenant.   Mr.  L.
QuethKhong  has  signed  these  receipts  as  a  tenant  in  his  individual
capacity.  Had the firm been the tenant, then he must have signed on  behalf
of the firm.  Had the intention of Mr. L. QuethKhong have to made  the  firm
M/s K.K. Lee is a tenant, then this fact must  have  found  mention  in  the
lease deed.  The firm was in  existence  since  1960  and  the  tenancy  was
created in 1963.  Had the firm been tenant,  then  Mr.  L.  QuethKhong  must
have signed as partner of the firm and not in his individual capacity.”

4.    The Rent Controller allowed the  application  for  impleadment,  which
was challenged by the respondents herein in  Revision  Petition  before  the
Rent Control Appellate Tribunal.  The Tribunal set aside  the  order  passed
by the Rent Controller. The said  order  was  challenged  by  the  appellant
before the High Court, leading to the impugned order.
5.    The High Court has concurred  with  the  Appellate  Authority.   Thus,
aggrieved, the present appeal.
6.    Having extensively heard  Shri  C.U.  Singh,  learned  senior  counsel
appearing for  the  appellant  and  Mr.  Sanjeev  Mahajan,  learned  counsel
appearing for the  respondents,  we  are  of  the  view  that  for  properly
adjudicating the issue before  the  Rent  Controller  in  Eviction  Petition
No.18/2010, in view of the contentions taken by the parties, both  the  firm
in the name and style of K.K. Lee and all its  partners  should  be  on  the
array of parties as  proper  party.    No  doubt,  they  are  not  necessary
parties form the point of view of the Eviction Petitioners,  but  the  Court
has a duty  to  see  whether  the  presence  of  the  proper  parties  would
facilitate  the  complete  determination  of  the  matter  in  dispute.  The
following are the names of the partners of the firm:
i.          Mr. Richard Lee
ii.         Mr. Sean Wee Lee
iii.  Mr. Kenneth Lee
iv.         Mrs. Beryl Lee

7.    The firm as represented by its  managing  partner,  if  any,  or  duly
authorized person amongst the partners to  represent  the  firm  will  stand
impleaded  as  additional  respondent  and  all  the  partners  will   stand
impleaded also as additional respondents.  We leave open all the  questions,
to be adjudicated before the Rent Controller including the questions  as  to
whether  there  was  a  partnership  as  tenant  and  being  an  issue  once
adjudicated and concluded before the Rent Controller, whether  that  finding
is conclusive as far as the present proceedings are concerned.
8.    In view of the power under Order I, Rule 10 suo motu  invoked  by  us,
it is not necessary for the parties to file separate application,  since  we
have ourselves impleaded the firm and the partners in the  proceedings.   We
direct all the parties to appear before the Rent Controller,
Delhi on 1.3.2017.  Within two weeks from today, the respondents  will  file
an amended memo of parties before  the  Rent  Controller.  The  additionally
impleaded respondents, if they chose to file written  statement,  will  file
it either jointly or individually, within  a  period  of  thirty  days  from
today.
9.    Till the  complete  and  effectual  adjudication,  the  interim  order
passed by this Court on 13.1.15 with regard to deposit  of  Rs.75,000/-  per
month will continue unless it is duly varied by an appropriate forum.
10.   We make it clear  that  the  Rent  Controller  will  pass  appropriate
orders with regard to the  release  of  the  amount  when  the  petition  is
finally disposed of.
11.   We direct the Rent Controller, having regard  to  the  fact  that  the
eviction petition has been pending  since  2010,  to  dispose  of  the  same
expeditiously and in any case within six months from the date of  the  first
appearance.  The appeal is disposed of, as above.
12.   Pending application(s), if any, shall stand disposed of.
13.   There shall be no orders as to costs.

                                                   .......................J.
                                                             [KURIAN JOSEPH]


                                                   .......................J.
                                                           [A.M. KHANWILKAR]
      NEW DELHI;
      FEBRUARY 02, 2017.