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Issues Involved:
1. Whether the deed dated May 1, 1949, created a lease or a license. 2. The interpretation of the term "room in a hotel" under Section 2(b) of the Delhi and Ajmer-Merwara Rent Control Act, 1947. 3. Whether the spaces let out in the Imperial Hotel are exempt from the Rent Control Act. Issue-Wise Detailed Analysis: 1. Whether the Deed Created a Lease or a License: The court examined the nature of the deed dated May 1, 1949, to determine if it created a lease or a license. The document used the terms "licensor" and "licensee" and described itself as a deed of license. However, the court emphasized that the substance of the agreement, rather than its form, determines its nature. The document granted the respondent exclusive possession of the rooms for carrying out his business as a hair-dresser, with terms typically found in lease agreements, such as the right to transfer interest with the licensor's consent and the obligation to pay a fixed amount irrespective of business operation. The court concluded that the deed created a lease, as it transferred a right to enjoy the property, indicating a tenancy rather than a mere license. 2. Interpretation of "Room in a Hotel" Under Section 2(b) of the Rent Control Act: The court analyzed the meaning of "room in a hotel" within the context of Section 2(b) of the Rent Control Act, which excludes rooms in hotels from the Act's purview. The term "hotel" was not defined in the Act, so the court referred to its ordinary meaning and definitions in cognate acts. The court considered whether the spaces let out to the respondent were rooms in a hotel, emphasizing that a room in a hotel must serve hotel purposes and provide amenities connected to the hotel business. The court concluded that the spaces let out for a hair-dressing business were amenities provided by the hotel, thus qualifying as rooms in a hotel. 3. Exemption from the Rent Control Act: The court examined whether the spaces let out in the Imperial Hotel were exempt from the Rent Control Act under Section 2(b). The court considered the physical location of the rooms within the hotel and their intended use. The ruling highlighted that a room in a hotel must fulfill two conditions: it must be part of the hotel in a physical sense and its use must be connected with the general purpose of the hotel. The court concluded that the spaces let out for a hair-dressing business were connected to the hotel's amenities, thus exempting them from the Rent Control Act. Separate Judgments Delivered: - S.K. Das, J.: Agreed with Subba Rao, J., that the deed created a lease and not a license. Concluded that the rooms let out were part of the hotel and served hotel purposes, thus exempt from the Rent Control Act. - Sarkar, J.: Concluded that the spaces were rooms in a hotel and exempt from the Rent Control Act. Did not express an opinion on whether the deed created a lease or a license, as the spaces were outside the Act's scope. - Subba Rao, J.: Dissented, concluding that the deed created a lease and the rooms let out were not part of the hotel for hotel purposes, thus not exempt from the Rent Control Act. Final Order: In accordance with the majority opinion, the appeal was allowed, and no order for costs was made.
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