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Issues Involved:
1. Whether a company in liquidation can transfer its tenancy rights without the consent of the landlord under the Delhi Rent Control Act, 1958. 2. Whether the official liquidator can claim or receive any payment in consideration of the transfer or assignment of the tenancy rights. Issue-wise Detailed Analysis: 1. Transfer of Tenancy Rights Without Landlord's Consent: The primary issue is whether a company in liquidation can transfer its tenancy rights without the landlord's consent under the Delhi Rent Control Act, 1958. The court examined several provisions of the Rent Act, particularly Section 5 and Section 16. Section 5(3) explicitly states that it is unlawful for a tenant to claim or receive any payment in consideration of the relinquishment, transfer, or assignment of his tenancy without the landlord's consent. Section 16(3) further states that no tenant shall transfer or assign his rights in the tenancy without the previous consent in writing of the landlord. The court referenced various cases to analyze this issue. In the case of West Hopetown Tea Company Ltd., it was held that the court's power to sanction a sale by the liquidator overrides a private contract against assignment by the parties. However, the court in this case concluded that the liquidator's act of assigning the tenancy is essentially the act of the company. Therefore, the liquidator, acting on behalf of the company, is bound by the same restrictions as the company, including obtaining the landlord's consent for the transfer of tenancy rights. 2. Claim or Receipt of Payment for Assignment of Tenancy: The second issue is whether the official liquidator can claim or receive any payment in consideration of the transfer or assignment of the tenancy rights. Section 5(2) of the Rent Act prohibits any person from claiming or receiving any payment in addition to the rent for the grant, renewal, or continuance of a tenancy. This prohibition extends to the official liquidator as well. The court cited the case of Shanti Pershad Narinder Kumar v. Paras Ram Har Nand Rai, where it was held that there is no absolute prohibition on the transfer of the tenant's interest by operation of law. However, the court in this judgment concluded that the liquidator's act of assigning the tenancy rights is not a forced sale but an act of the company. Therefore, the liquidator cannot claim or receive any payment for the assignment of tenancy rights in violation of Section 5 of the Rent Act. The court also discussed the policy of the Rent Act, which aims to prevent the assignment of tenancies without the landlord's consent and the passing of premiums in consideration of such assignments. Allowing the liquidator to receive such premiums would undermine the legislative intent and could potentially lead to the circumvention of the Rent Act's provisions. Conclusion: The court concluded that: 1. The official liquidator cannot transfer the tenancy rights of the company without the consent of the landlord. 2. The official liquidator cannot claim or receive any payment in consideration of the transfer or assignment of the tenancy rights. The judgment emphasized that the restrictions imposed by the Rent Act apply equally to the official liquidator as they do to the company. The liquidator's acts are considered acts of the company, and therefore, the liquidator is bound by the same legal constraints regarding the transfer of tenancy rights and the receipt of payments for such transfers.
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