In Brief
A hotel tenant was granted a lease of premises in Pune under an agreement prohibiting assignment of the business. In 1985, the tenant executed a partnership agreement with a third party, Krishna B Shetty, and then executed a separate assignment agreement transferring the business to him for ₹2 lakh. The tenant's landlord sued for eviction under the Bombay Rents Act. The trial and appellate courts decreed eviction, but the High Court reversed, holding that a partnership arrangement without complete possession transfer does not constitute sub-letting. The Supreme Court restored the trial court's order, holding that execution of an assignment agreement for consideration breaches the lease condition and statutory prohibitions on transfer of tenancy rights, regardless of whether the assignee later fails in a specific performance suit. The tenant's heirs were ordered to vacate within two months.
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