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2007 (2) TMI 717

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..... nsport Quick Service and Dhillon Roadways Corporation and others consent in writing of the plaintiff landlord. In its written statement the tenant denied the allegation of sub tenancy and submitted that M/s Dhillon Transport Agency, a partnership firm was originally the tenant. The partnership had four partners who carried on business in the name and style of Dhillon transport Agency. Since disputes and differences arose amongst the partners, Title Suit No. 19 of 1991 was filed in the Court of the 1st Subordinate Judge at Patna and all matters were settled by compromise. Consequently. The firm was dissolved and one of the partners was given all the assets of the firm and he formed another firm with himself as one of the partners. It was ave .....

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..... y the High Court. The High Court after appreciating the evidence on record has found that since one of the partners of the original tenant namely, the firm Dhillon Transport Agency, is still running his transport agency business in the same premises, it cannot be held that a sub-tenancy has been created. The High Court, therefore, held that the appellant had failed to prove sub-letting of premises by the respondent. 6. In the Special Leave Petition filed by the appellants two questions of law have been formulated which read as follows:- (a) If it is an admitted fact that the firm (with four partners) in favour of which lease/tenancy was granted as dissolved, as a result whereof the three resigning partners devolved and/or transferred and .....

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..... ided for the purpose of any statute which is not the case here, is not a legal entity. The firm name is only a compendious way of describing the partners of the firm. Therefore, occupation by a firm is only occupation by its partners. Here the firms have a common partner. Hence the occupation has been by one of the original tenants." 9. In Mohammedkasam Haji Gulambhai v. Bakerali Fatehali (Dead) by LRs., Reported in [1998] 7 SCC 608 this Court observed: "There is absolute prohibition on the tenant from sub-letting, assigning or transferring in any other manner his interest in the tenanted premises. There appears to be no way around this subject of course if there is any contract to the contrary between the landlord and the tena .....

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..... tenancy premises has been parted with and deed of partnership has been drawn up as an indirect method of collecting the consideration for creation of sub-tenancy or for providing a cloak or cover to conceal a transaction not permitted by law, the Court is not estopped from tearing the veil of partnership and finding out the real nature of transaction entered into between the tenant and the alleged sub-tenant." 11. Applying these principle to the instant case, it is patent that one of the partners of the firm which was the original tenant has continued in legal possession of the premises as a partner of another firm constituted after dissolution of the original firm. Thus the legal possession is retained by a partner who was one of the .....

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