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Issues Involved:
The judgment involves the interpretation of Section 14(1)(b) of the Delhi Rent Control Act regarding the involuntary transfer of leasehold interest from a Foreign Company to an Indian Company, and whether it constitutes sub-letting or assignment. Interpretation of Section 14(1)(b): The main issue in this case is whether the transfer of leasehold interest from the Foreign Company to the Indian Company constitutes sub-letting within the meaning of Section 14(1)(b) of the Act. The contention was that since the transfer was compelled by the Foreign Exchange Regulation Act, it should not be considered sub-letting. However, the Court found that the transfer was indeed a case of sub-letting as the Indian Company took over the business without obtaining the written consent of the landlord, as required by the Act. Comparison with Previous Judgments: The judgment referred to previous cases such as P.H. Rao v. S.P.N.K. Jain and Venkatarama Iyer v. Renters Ltd. to support the conclusion that a transfer of leasehold rights, even if involuntary, falls under the purview of Section 14(1)(b) as either sub-letting or assignment. The Court emphasized the wide scope of the provision, which includes any mode by which possession of the tenanted premises is transferred. Distinguishing Case Law: The Court distinguished the case of Madras Bangalore Transport Co. (West) v. Inder Singh & Ors., where the nature of the companies involved led to a different conclusion regarding subletting. In that case, the entities were considered as one for practical purposes, unlike the distinct transfer of leasehold rights in the present case. Final Decision: In conclusion, the Court upheld the findings of the lower courts that the transfer of leasehold interest from the Foreign Company to the Indian Company constituted sub-letting under Section 14(1)(b) of the Act. Therefore, the appeal was dismissed with no costs incurred.
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