SRI M.V. RAMACHANDRASA SINCE DECEASED REPRESENTED BY LEGAL HEIRS versus M/S MAHENDRA WATCH COMPANY REPRESENTED BY ITS PARTNERS & ORS.
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[2026] 4 S.C.R. 508 : 2026 INSC 348 Sri M.V. Ramachandrasa Since Deceased Represented by Legal Heirs v. M/s Mahendra Watch Company Represented by its Partners & Ors. (Civil Appeal No. 4353 of 2026) 10 April 2026 [Ahsanuddin Amanullah and R. Mahadevan,* JJ.] Issue for Consideration Whether the High Court was justified in interfering with the findings of fact recorded by the trial Court while exercising its revisional jurisdiction u/s.46 of the Karnataka Rent Act, 1999; whether the burden of proving unlawful sub-letting lies upon the landlord, and if so, whether such burden was duly discharged in the present case; whether the alleged retirement of the original tenant-partner and continuation of business by Respondent Nos. 2 and 3 constituted a mere reconstitution of partnership or amounts to unlawful sub-letting / assignment u/ss.27(2)(b)(ii) and 27(2)(p) of the Karnataka Rent Act, 1999. Headnotes† Karnataka Rent Act, 1999 – s.46 – Revisional jurisdiction under – Exercise of – When not sustainable – Respondent No.1-Company, a partnership firm was a tenant under the appellant’s predecessor-landlord (since deceased) – However, Respondent No.1 had unlawfully sublet the premises and parted with possession in favour of third parties (Respondent Nos.2 and 3) who were not parties to the lease agreement, without the consent of the landlord – Eviction petition allowed by trial Court inter alia holding that that Respondent Nos.2 and 3 in actual occupation of the premises were strangers to the original tenancy and the tenant had unlawfully parted with possession in their favour – High Court allowed the revision petition filed by respondents – Whether the High Court was justified in interfering with the findings of fact recorded by the trial Court while exercising its revisional jurisdiction u/s.46: * Author [2026] 4 S.C.R. 509 Sri M.V. Ramachandrasa Since Deceased Represented by Legal Heirs v. M/s Mahendra Watch Company Represented by its Partners & Ors. Held: No – Findings recorded by the trial Court were pure findings of fact based on proper appreciation of evidence – No perversity, illegality, or jurisdictional error was demonstrated – High Court transgressed the limits of its revisional jurisdiction by reassessing the evidence and substituting its own conclusions – Therefore, impugned interference u/s.46 is unsustainable in law as it effectively converted revisional jurisdiction into appellate jurisdiction – Impugned order set aside – Order of the trial Court directing eviction of the respondents, restored. [Paras 12.8, 12.9] Karnataka Rent Act, 1999 – Respondent No.1-Company, a partnership firm was a tenant under the appellant’s predecessor-landlord (since deceased) through its partner- Respondent No.4 – However, Respondent No.1 unlawfully sublet the premises and parted with possession in favour of third parties (Respondent Nos.2 and 3) who were not parties to the lease agreement, without the consent of the landlord – Landlord filed eviction petition, allowed by trial Court – High Court allowed the revision petition filed by respondents – Whether the burden of proving unlawful sub-letting lies upon the landlord, and if so, whether such burden was duly discharged in the present case: Held: The lease deed recognized only Respondent No.4 as the tenant – Respondent Nos.2 and 3 were not parties to the lease and therefore, cannot claim any independent tenancy rights – The burden of proving unlawful subletting initially lay upon the landlord, which was duly discharged by establishing exclusive possession of third parties and absence of the original tenant – The burden thereafter shifted to the respondents, who failed to rebut the presumption by adducing cogent evidence – Consequently, unlawful sub-letting stands proved. [Paras 13.6, 13.8] Karnataka Rent Act, 1999 – ss.27(2)(b)(ii) and 27(2)(p) – Sub- letting through the device of partnership – Respondents’ case rested on an alleged reconstitution of the partnership firm – Whether the alleged retirement of the original tenant-partner and continuation of business by Respondent Nos.2 and 3 constituted a mere reconstitution of partnership or amounts to unlawful sub-letting / assignment u/ss.27(2)(b)(ii) and 27(2)(p): Held: Sub-letting requires parting with legal possession, i.e., transfer of the right to exclusive possession – Mere induction or retirement 510 [2026] 4 S.C.R. Supreme Court Reports of partners does not
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