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TMI Blog1967 (7) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal, we express no opinion on it. The High Court rightly decreed the suits. Appeal dismissed. - Civil Appeals Nos. 2253 and 2254 of 1966 - - - Dated:- 18-7-1967 - Bachawat, R.S., Shelat, J.M. And Bhargava, Vishishtha,JJ. JUDGMENT The Judgment of the Court was delivered by Bachawat, J.The respondents are limited companies having their head offices in Calcutta. On May 15, 1953, the two Companies jointly purchased the premises known as King s Court at No. 46B Chowringhee Road, Calcutta, for the purpose of providing residential accommodation for their staff. They instituted a suit against one B. M. Lall, since deceased, predecessor of the appellants in C. A. No. 2253/66 for recovery of possession of flat No. 8 in the aforesaid p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to bring the case within Sec. 13(1)(f). These findings are not challenged in this Court. Before us it is also conceded by all the appearing parties that the respondents are entitled to a decree for recovery of possession of the two flats under sec. 13(1)(f), if they establish that they reasonably require the flats for the occupation of respondent No. 2, Guest Keen and Williams Ltd. only. The two courts concurrently found that respondent No. 2 reasonably requires the flats for the occupation of its staff. The Company is under an obligation to provide free residential accommodation for its officers in properties either rented or owned by it. In view of the acute scarcity of accommodation in the city, it is not possible to find other conven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany deciding to levy License fees and the Company reserves the right to do so without prior notice, the Licensee shall pay to the Company each month such License fees which may be varied by the Company from time to time at its discretion and the Company shall be entitled to deduct such License fees from the emoluments or to become due to the Licensee from Company. 3. The occupation of the said premises by the Licensee is a condition of his employment at Calcutta with the company and such right of occupation shall forthwith cease upon his employment being terminated by the company or on his leaving such employment or on his transfer away from Calcutta or on his death whichever is earlier. Notice given by the Company to the Licensee of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thing which causes damage or is liable to cause damage to the said premises. The cost of rectification of such damage will be recoverable in accordance with condition (1). 4. Alterations of or extensions to the installed electrical circuit are strictly prohibited. 5. No notice advertisement or placard other than the Licensee s own name, which may be fixed to the main door of the said premises, shall be fixed or permitted to be fixed to any portion of the said premises. 6. The said premises shall be used entirely as a dwelling place and no business or trade shall be carried out on the said premises or any part thereof without prior written permission from the company. 7. The Licensee will not permit any persons other than his own pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rivilege with no interest in the land. The question is not of words but of substance and the label which the parties choose to put upon the transaction, though relevant, is not decisive. The test of exclusive possession is not decisive, see Errington v. Errington and Woods,( [1952] 1 K.B. 290, 298) Associated Hotels of India Ltd. v. R. N. Kapoor,( [1260] 368, 381-5) though it is a very important indication in favour of tenancy. See Addiscombe Garden Estates Ltd. and Anr. v. Crabbe and Ors.( [1958] 1 Q.B. 513,525). A servant in occupation of premises belonging to his master may be a tenant or a licensee, see Halsbury s Laws of England, Third Edition, Vol. 23, art. 990. p. 411. A service occupation is a particular kind of license whereby a se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the land, separate and distinct from his contract of service, at a sum properly to be regarded as a, rent, then he is a tenant, and none the less a tenant because he is also a servant. The distinction depends on the truth of the relationship and not on the label which the-parties choose to put upon it: see Facchini v. Bryson-(1952 ) The Times L.R. 1386)." The last observation covers the present case. Under the standard form of agreement of respondent No. 2, the occupation of the officer ceases not only on the termination of his employment but also on his transfer from Calcutta and on his death. The company is at liberty to allot any other flat to the officer. During the absence of the servant from Calcutta, the company is at liberty to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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