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TMI Blog2006 (3) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... way of amendment, the plaintiff alleged that the defendant-tenant had sublet, assigned and/or transferred the suit premises to M/s. Shalimar Works Limited and/or Lodna Colliery Company (1920) in the year 1966 without the consent of the plaintiff. 3. The suit was contested by the defendant by filing written statement thereby denying the material allegations made in the plaint and as regards the ground of subletting, it was stated that there was no subletting, assignment or transfer of the suit premises as alleged in the plaint and it was just a case of grant by the defendant company of permissive user and/or licence in favour of one of the companies within her own group of companies. According to the defendant, it happened to be the holdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allegations made in the plaint. In his evidence the said DW-1 proved that Shalimar Works Limited and Lodna Colliery were subsidiary company of the defendant company. He alleged that the subsidiary companies under the defendant did not have any separate Secretary, that there were common Directors and common Secretaries of both the companies. He further stated that the balance-sheet of the subsidiary company used to be attached to the main balance-sheet of the defendant company and some of those balance-sheets were made Ext.-A series. In cross-examination, he admitted that defendant company while appointing officers of the subsidiary company issued appointment letters to them. He further admitted that M/s. Shalimar Works Limited and Lodna Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he materials on record came to the conclusion that since the Shalimar Works Limited and the Lodna Colliery were subsidiary companies and the defendant was the holding company, occupation of the officers of subsidiary companies in the premises did not amount to subletting, assigning of interest or transfer within the meaning of Section 13 of the West Bengal Premises Tenancy Act as being the holding company, the defendant had control over its subsidiary companies and accordingly, the actual possession of the officers of the subsidiary company was also under the control of the defendant. The learned Trial Judge, thus, dismissed the suit. 9. Being dissatisfied, the plaintiff-landlord has come up with the present first appeal. 10. Mr. Tandon, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... West Bengal Premises Tenancy Act. 14. According to the provisions contained in Section 4 of the Companies Act, it is true that the holding company has control over the subsidiary companies but the fact remains that both the holding company and subsidiary company are separate entity. Once it is established that money taken in the shape of rent has been reimbursed for the occupation of the officers of the subsidiary company, though the self-same officer may also hold the office of the holding company, in our view, the said act amounts to transfer, assignment of interest or subletting within the meaning of the Act. Here payment of consideration money is proved and once such amount has been shown to be rent accepted from a different legal enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egislation. In the case before us, however, the tenant company has though not amalgamated with any other company, yet, has permitted its subsidiary company, which is a separate legal entity altogether, to use the tenanted property on acceptance of rent from the latter. Therefore, this is a worse case than the case of amalgamation where the tenant company maintaining its separate identity has permitted a different juristic person to occupy the property in lieu of payment of money. 20. We, thus, find that the decisions cited by Mr. Tandon although did not exactly apply to the fact of the present case support his contention that the tenant company cannot put into possession another company on payment of rent. 21. We, thus, set aside the judg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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