17 April 1986
Supreme Court
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GENERAL RADIO & APPLIANCES CO. LTD. & ORS. Vs M.A. KHADER (DEAD) BY LRS.

Bench: RAY,B.C. (J)
Case number: Appeal Civil 1923 of 1976


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PETITIONER: GENERAL RADIO & APPLIANCES CO. LTD. & ORS.

       Vs.

RESPONDENT: M.A. KHADER (DEAD) BY LRS.

DATE OF JUDGMENT17/04/1986

BENCH: RAY, B.C. (J) BENCH: RAY, B.C. (J) REDDY, O. CHINNAPPA (J) SINGH, K.N. (J)

CITATION:  1986 AIR 1218            1986 SCR  (2) 607  1986 SCC  (2) 656        1986 SCALE  (1)595  CITATOR INFO :  D          1991 SC  70  (6)

ACT:      Andhra Pradesh  Buildings (Lease,  Rent  and  Eviction) Control Act,  1960 (AP  Act No.  15 of 1960), section 10(ii) (a) read  with section  2(ix) -  Transfer of  tenancy  right under  the   lease/subletting,  meaning  of  -  Whether  the voluntary  amalgamation  by  virtue  of  the  provisions  of sections 391 and 394 of the Companies act, 1956 of a company having tenancy  rights in  a building  with another  company amounts to a "transfer of tenancy rights" within the meaning of AP  Act 15  of 1960  - Subsequent events, taking judicial notice of.

HEADNOTE:      M/s. General  Radio &  Appliances Co.  Ltd.,  a  tenant under the  respondent-landlord with  effect from  7th day of January, 1959 under a rent agreement dated 12.1.1959 filed a company  petition,  before  the  Bombay  High  Court,  under sections 391  and 394  of the  Companies Act  praying for an order sanctioning  the scheme of amalgamation proposed by it with M/s.  National Ekco  Radio and Engineering Co. Ltd. The Bombay High  Court sanctioned  the said  scheme by its order dated 27.3.1968.  After the  said amalgamation  of  the  two companies, appellant  No. 1  company stood dissolved from 16 April 1968.  The respondent  landlord  issued  a  notice  on 26.12.1968 to  the first  appellant company  terminating the tenancy on  the ground  of subletting  and/or  transfer  and assignment of the interest of appellant No. 1 company to the appellant No.2 company. Thereafter, the respondent filed the Rent Control  Case No.  96 of  1969 for  eviction under Rule 10(ii)(a) of  the AP  Act 15  of 1960.  The Rent  Controller accepted both  the pleas of respondent, namely, unauthorised subletting of  the premises and wilful default in payment of rent and  negatived  the  defence  of  the  appellants  that consequent upon  the scheme of amalgamation when made a rule of the  Court, there  was no  transfer or  subletting but  a blending of  two companies  together. In  appeal, the  Chief Judge, City Small Causes Court set aside the eviction orders holding that a transfer of assets under a scheme 608

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of amalgamation  being an involuntary one, it did not amount to assignment of lease by the amalgamating company. However, the High  Court while allowing the further Revision Petition filed by the landlord restored the eviction orders passed by the Rent Controller. Hence the appeal by certificate.      Dismissing the appeal, the Court ^      HELD :  1.1 The  Andhra Pradesh  Buildings (Lease, Rent and Eviction)  Control Act,  1960 is  a  special  Act  which provides for eviction of tenants on certain specific grounds mentioned in section 10 of the said Act. There is no express provision in  the said  Act that  in case of any involuntary transfer or  transfer of  the tenancy  right by  virtue of a scheme of  amalgamation sanctioned by the Court by its order under sections  391 and  394 of  the Companies Act as in the present case, such transfer will not come within the purview of section  10(ii)(a) of the said Act. In other words such a transfer of  tenancy right  on the basis of the order of the court will  be immune from the operation of the said Act and the transferee tenant will not be evicted on the ground that the original tenant transferred its right under the lease or sublet the  tenanted premises or a portion thereof. [615 FH; 616 A-B]      1.2 On a plain reading of section 2(ix), of the Act, it is clear that "any person placed in occupation of a building by the tenant" cannot be deemed or considered to be a tenant in respect of the premises in which the said person is to be in possession within the meaning of the said Act. Therefore, the  second  appellant  that  is  National  Ekco  Radio  and Engineering Co.  Ltd., the  transferee company  who has been put in possession of the tenanted premises by the transferor tenant General  Radio and  Appliance Co.  (P) Ltd. cannot be deemed to be tenant under this Act on the mere plea that the tenancy  right  including  the  leasehold  interest  in  the tenanted premises  have come to be transferred and vested in the transferee  company on the basis of the order made under sections 391 and 394 of the Companies Act. [616 B-D]      1.3 The  order of  amalgamation has  been made  on  the basis of  the petition  made by  the transferor  company  in company petition  No. 4 of 1968 by the High Court of Bombay. As such  it cannot  be said  that  this  is  an  involuntary transfer effected by order of the Court. [615 C-D] 609      1.4 Subsequent  event can  be taken judicial notice of. Here, the  first appellant company stood dissolved from 16th of April  1968 and  therefore, is  no longer in existence in the eye  of law  and it has effaced itself for all practical purposes.  The   second  appellant   company  that   is  the transferee company is now the person placed in occupation of the  suit  premises  by  the  tenant,  the  first  appellant company. There  is  undoubtedly  no  written  permission  or consent of  the  respondent  landlord  to  the  transfer  of tenancy right  of the  first appellant  company as  required under section  10(ii)(a) of  the Act. Moreover even if it is assumed to  be a  subletting to  the second appellant by the first appellant,  such subletting  has been made contrary to the provisions of the said Act and in violation of the terms of clause  4 of  the tenancy agreement dated 12.1.1959 which clearly prohibits  such subletting  of the tenanted premises without the written permission of the landlord. [615 B-F]      Sabhayanidhi Virudhunagar  Ltd. v.  A.S.R. Subrahamanya Nadar &  Ors., 1951  A.I.R.  Madras  p.  209  and  Parasaram Harnand Rao  v. Shanti  Prasad Narinder  Kumer Jain  & Anr., [1980] 3 S.C.R. p. 444, referred to.      Devarajulu Naidu  v. Ethirajavalli  Thyaramma, [1949] 2

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M.L.R. p. 423, held inapplicable.      Venkatarama Iyer  v. Renters  Ltd., [1951] II M.L.R. p. 57 approved.

JUDGMENT:      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1923 of 1976.      From the  Judgment and  Order dated 23rd April, 1976 of the Andhra Pradesh High Court in Civil Revision Petition No. 684 of 1974.      U.R. Lalit,  D.N. Mishra  and Miss Ratna Kapoor for the Appellants.      A.Subba Rao for the Respondents.      The Judgment of the Court was delivered by 610      B.C. RAY,  J. This appeal by way of certificate granted by the  High Court  of Andhra  Pradesh  at  Hyderabad  under Article 133  of the  Constitution of  India is  against  the judgment and  decree in  Civil Revision  Petition No. 684 of 1974 made  on 23rd of April, 1976 and it raises an important question of  law, i.e. whether the voluntary amalgamation of the first  and second  appellants  companies  amounts  to  a transfer of  the first  appellant’s right  under  the  lease within the  meaning of  s.  10  (ii)(a)  of  Andhra  Pradesh Buildings (Lease, Rent & Eviction) Control Act, 1960.      The front  corner portion  of the  premises bearing No. 8092/1/2 (new  No. 5-1-1-)  situated at  Rashtrapati Road at Secundrabad was  let out  on January 12, 1959 to M/s General Raio &  Appliances Co.  (P) Ltd.,  the first appellant, on a monthly rent of Rs. 200 on the basis of the rental agreement dated January  12, 1959  (Exhibit P-6) executed by the first appellant. Clause  4 of the said agreement provides that the tenant shall not sub-let the premises or any portion thereof to anyone  without the  written consent of the landlord. The respondent-landlord  M.A.   Khader  issued  a  notice  dated December 26,  1968  to  the  tenant-appellant  No.  1,  M/s. General  Radio  and  Appliances  (P)  Ltd.  terminating  the tenancy on  the ground  of subletting  and/or  transfer  and assignment of  the interest  of the  Appellant No.  1 to the Appellant No.  2. Thereafter  on  April  7,  1969  the  Rent Control Case  No. 96  of 1969  was filed  by the respondent- landlord for eviction of the Appellanttenant on two grounds, i.e. (i)  unauthorised subletting  of the  premises  by  the first appellant  and (ii)  wilful default in payment of rent from October 7, 1968 to April 7, 1969. The appellants Nos. 1 and 2  filed a  joint  counter  contending  that  there  was neither subletting,  nor assignment of the tenancy rights by the first  appellant to the second appellant, i.e. the first appellant company  was amalgamated with the second appellant company by operation of law under the scheme of amalgamation and order  of the High Court of Bombay under ss. 391 and 394 of the  Companies Act,  1956 and  that the  judgment of  the Bombay High  Court was  judgment ’in Rem’ and it was binding on the  petitioner even  though he  was not  a party  to the proceedings. It was further contended therein that by reason of order  of the  Bombay High  Court all the property rights and powers of every description including tenancy right held by the M/s. General Radio Appliance (P) Ltd., the 611 appellant No. 1, have been blended with the second appellant company, M/s.  National Ekco Radio and Engineering Co. Ltd., and that there was no wilful default in payment of rent. The application for eviction should, therefore be dismissed.

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    Two witnesses  were examined  on behalf of the landlord and three  witnesses were  examined on behalf of the tenant. The  Rent  Controller,  Secunderabad,  on  consideration  of evidences on  record held  that the  appellant No. 1 company has sublet  the premises  to the  appellant  No.  2  company without written consent of the landlord, as the amalgamation of the  first appellant-company  with the  second appellant- company amounted to subletting or assignment. It was further held that  there was  wilful default  in payment of rent for the period  in question.  The  Rent  Controller,  therefore, allowed the  application  and  directed  the  appellants  to vacate and  deliver vacant  possession of  the suit premises under their  occupation to  the landlord-petitioner within a period of three months from the date of the order.      Against this judgment and decree an appeal being Appeal No. 406  of 1972  was preferred before the Chief Judge, city Small Causes  Court, Hyderabad. On 29.10.75 the Chief Judge, City Small Causes Court, Hyderabad after hearing the parties held that  though the  appellant No.  1 company  voluntarily sponsored the  scheme of amalgamation, the ultimate power to sanction or  not to  sanction it rested with the High Court. The scheme  of amalgamation though proposed by appellant No. 1 company  voluntarily yet it became binding and enforceable on all  the parties  only when  it was  made a  rule of  the court. It  was, therefore,  held that the transfer of assets and  liabilities   including  the   leasehold  interest   of appellant No.  1 company  to appellant  No. 2  company  took place by  virtue of the order of the court. It was held that such a  transfer of  assets being an involuntary one did not amount to  assignment of lease by appellant No. 1 company to appellant No.  2 company  and as such it did not violate the terms of  the lease.  By amalgamation of appellant 1 company with appellant  2 company,  the appellant  1 company  is not wound up but it is merely blended with the other company. It was also  held that  there was no wilful default on the part of the  tenant to  pay the  rent for the period mentioned in the petition  inasmuch as in spite of the tender of the rent the respondent-landlord 612 refused to  accept the same and to grant receipt in the name of appellant  No. 2  company.  The  appeal  was,  therefore, allowed and  the order  of the Rent Controller was set aside dismissing the eviction petition with costs.      Against this  judgment and  order,  an  application  in revision being  Civil Revision  Petition No. 684 of 1974 was filed in  the High  Court of  Judicature of  Andhra Pradesh, Hyderabad. On  April 23,  1976 the said Revision Application was allowed  and the  judgment and  decree of  the Appellate Court was  set aside  on restoring  the decision of the Rent Controller. It  was held  that the amalgamation of appellant No. 1  company with  appellant No. 2 company on the basis of application  made   by  the   appellant  No.  1  company  by submitting a  scheme which  was duly approved and sanctioned by the  High Court  of Bombay was not an involuntary one and this order  of amalgamation  indicated transfer  of  tenancy right without  any notice or opportunity to the landlord. It is thus  hit by  the provision of s. 10(ii)(a) of the Andhra Pradesh Buildings  (Lease, Rent  and Eviction)  Control Act, 1960.      Against this  judgment and  order the instant appeal by way of  certificate granted  by the  High  Court  of  Andhra Pradesh has  been preferred.  The only  question which falls for consideration  in this  appeal is whether in view of the order  made  by  the  High  Court  of  Bombay  on  27.3.1968 sanctioning the  scheme  of  amalgamation  proposed  by  the

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appellant No.  1 company  under  ss.  391  and  394  of  the Companies Act  in Company  Petition No.  4 of  1968 and  the subsequent transfer  of tenancy  right in  the suit premises and vesting  of the  same in the 2nd appellant can be deemed to be subletting of the tenancy right of the appellant No. 1 or transfer  or  assignment  of  interest  in  the  tenanted premises of  the appellant  No. 1  to the  appellant  No.  2 within the  meaning of  S. 10(ii)(a)  of the  said Act.  The appellant  No.   1  General   Radio   and   Appliances   (P) Ltd.admittedly took the premises in question on the basis of an agreement  dated 12th  of January,  1959 duly executed by him in  favour of  the landlord-respondent at a monthly rent of Rs. 200 for a period of eleven months commencing from 7th January 1959.  Clause 4  of the  said agreement  is  in  the following terms :           "That they shall not sublet the said premises or 613           any portion  thereof to anyone without the written           consent of the landlord."      On January  9, 1968  the appellant  No. 1  M/s  General Radio and  Appliances (P)  Ltd., filed  the Company Petition No. 4  of 1968  in the  High Court of Bombay under s. 394 of the Companies  Act for  sanction of a scheme of amalgamation with M/s  National Ekco  Radio &  Engineering Co. Ltd., M/s. General Radio  & Appliances (P) Ltd. was shown as transferor Company and the National Ekco Radio and Engineering Co. Ltd. was shown  as a transferee company in the said petition. The High Court  of  Bombay  by  order  dated  28th  March,  1968 sanctioned the  scheme of  amalgamation. It  is pertinent to refer here  to the relevant portions of the scheme which are as follows :           "With effect  from Ist  day of  January  1967  the           undertaking and  all the  property, rights, powers           of every  description  including  all  leases  and           tenancy rights,  industrial, import  and all other           licences,  quota   rights  of   General  Radio   &           Appliances  (P)   Ltd.  (hereinafter   called  the           transferor company) without further act or deed be           transferred and vested or deemed to be transferred           and  vested   in  the   National  Ekco   Radio   &           Engineering  Co.   Ltd.  (hereinafter  called  the           transferee company) etc."      It has  been urged  on behalf of the appellant that the amalgamation of M/s General Radio & Appliances (P) Ltd., 1st appellant with the 2nd appellant company is involuntary one, which has  been brought into being on the basis of the order of the  High Court  of Bombay  made under ss. 391 and 394 of the Companies  Act. The first appellant company has not been wounded up and or liquidated, but it has been merely blended with the  2nd appellant  on the  basis of  the order  of the court. As  such there  has been  no subletting  by  the  1st appellant company  to  the  2nd  appellant  company  of  the tenancy right  of the  1st appellant  in respect of the suit premises, nor  there has  been any transfer or assignment of interest of  the 1st  appellant in  respect of  its  tenancy right in  the premises  in question  in favour  of  the  2nd appellant within  the meaning  of S.  10(ii)(a) of  the said Act. It  has been  further urged in this connection that the 1st  appellant   company  by   virtue  of   the  scheme   of amalgamation which was sanctioned by the Bombay 614 High Court  merely becomes  a devision  of the 2nd appellant company  i.e.  M/s.  National  Ekco  Radio  and  Engineering Company Ltd.  In other  words, it  was tried to be contended that the  1st appellant  company has not become extinct, but

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it has  been merged  and or  blended in  the  2nd  appellant company. In  order to determine this issue it is relevant to set out  herein the provisions of S. 10(ii)(a) of the Andhra Pradesh Buildings  (Lease, Rent  and Eviction)  Control Act, 1960 (A.P.  Act No.  15 of  1960). Section  10(ii)  runs  as follows :           "A landlord  who seeks  to evict  his tenant shall           apply to  the Controller  for a  direction in that           behalf. If the Controller, after giving the tenant           reasonable opportunity  of showing  cause  against           the applicant is satisfied :           (ii) that the tenant has, in Andhra area after the           commencement of  the Hyderabad  House Rent Control           Order of 1953 Fasli without the written consent of           the landlord ;           (a) transferred  his  right  under  the  lease  or           sublet the entire building or any portion thereof,           if the  lease does  not confer on him any right to           do so."           Section 2(ix) defines tenant :           "’tenant’ means  any person  by whom  or on  whose           account  rent   is  payable  for  a  building  and           includes the  surviving  spouse,  or  any  son  or           daughter, of a deceased tenant who had been living           with the tenant in the building as a member of the           tenant’s family  up to the death of the tenant and           a  person   continuing  in  possession  after  the           termination of the tenancy in his favour, but does           not include  a person  placed in  occupation of  a           building by its tenant, etc."      In the  instant case  the  appellant  No.  1  i.e.  M/s General Radio and Appliances Co. (P) Ltd. is undoubtedly the tenant having  taken lease  of the premises in question from the respondent  landlord by executing a rent agreement dated 12th January,  1959 at  a rental  of Rs.  200 per month, the tenancy 615 commencing from 7th day of January 1959. On the basis of the sanction accorded  by order of the High Court of Bombay made on 27th March 1968 sanctioning the scheme of amalgamation in Company Petition  No. 4  of 1968 filed by the 1st appellant, all the  property, rights  and powers  of every  description including all  leases and  tenancy rights  etc. of  the  1st appellant were  transferred to  and vested  or deemed  to be transferred and  vested in  the 2nd  appellant M/s  National Ekco Radio and Engineering Co. Ltd. It also appears that the appellant No.  1 company stood dissolved from 16th of April, 1968. This  clearly goes  to show that the General Radio and Appliances (P)  Ltd., the tenant company has transferred all its interest  in the  tenanted premises  in  favour  of  the appellant No.  2 i.e National Ekco Radio and Engineering Co. Ltd. (the transferee company). The order of amalgamation has been  made  on  the  basis  of  the  petition  made  by  the transferor company  in Company Petition No. 4 of 1968 by the High Court of Bombay. As such it cannot be said that this is an involuntary  transfer effected  by order  of  the  court. Moreover the 1st appellant company is no longer in existence in the  eye of  law and  it  has  effected  itself  for  all practical  purposes.   The  2nd   appellant   company   i.e. transferee company  is now the tenant in respect of the suit premises and  the  1st  appellant  company  has  transferred possession of  the  suit  premises  in  favour  of  the  2nd appellant  company.   There  is   undoubtedly   no   written permission or  consent of  the respondent  landlord to  this transfer of  tenancy right  of the  1st appellant company as

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required under  S. 10(ii)(a)  of the said Act. Moreover even it is assumed to be a subletting to the 2nd appellant by the 1st appellant, such subletting has been made contrary to the provisions of  the said Act and in violation of the terms of clause 4  of  the  tenancy  agreement  (Exhibit  P-6)  which clearly prohibits  such subletting  of the tenanted premises without the  written permission  of the landlord. The Andhra Pradesh Building  (Lease, Rent  and Eviction)  Control  Act, 1960 is a special Act which provides for eviction of tenants on certain  specific grounds  mentioned in S. 10 of the said Act. There  is no  express provision in the said Act that in case of  any involuntary transfer or transfer of the tenancy right by  virtue of  a scheme  of amalgamation sanctioned by the court  by its  order  under  ss.  391  and  394  of  the Companies Act as in the present case, such transfer will not come within  the purview of S. 10(ii)(a) of the said Act. In other words such a transfer of tenancy right on the basis of 616 the order  of the court will be immune from the operation of the said  Act and  the transferee tenant will not be evicted on the ground that the original tenant transferred its right under the lease or sublet the tenanted premises or a portion thereof. It  is important  to note  in this  connection  the definition of  tenant as  given in  S. 2(ix) of the said Act which provides specifically that a tenant does not include a person placed  in occupation of a building by its tenant. On a plain  reading of  this provision it is crystal clear that any person  placed in occupation of a building by the tenant cannot be  deemed or considered to be a tenant in respect of the premises in which the said person is to be in possession within the  meaning of  the said  Act.  Therefore,  the  2nd appellant i.e.  National Ekco Radio and Engineering Co. Ltd. the transferee company who has been put in possession of the tenanted premises by the transferor tenant General Radio and Appliance Co.  (P) Ltd.  cannot be deemed to be tenant under this Act  on the  mere plea that the tenancy right including the leasehold interest in the tenanted premises have come to be transferred  and vested  in the transferee company on the basis of  the order  made under  ss.  391  and  394  of  the Companies Act.      The effect of an order under S. 153(A) of the Companies Act 1913  which corresponds  to  ss.  391  and  394  of  the Companies Act,  1956 has  been very succinctly stated in the case of  Sahayanidhi Virudhungar  Ltd. v. A.S.R. Subrahmanya Nadar &  Ors., 1951  A.I.R. Madras p. 209. Section 153(A) of the Companies Act has been enacted with a view to facilitate arrangements  and  compromise  between  a  Company  and  its creditors or  shareholders which  involve a  transfer of its assets and  liabilities to  other companies  as part of such agreement. If  any such  scheme or arrangement is sanctioned by court,  the court  is empowered  by the  section to  make provisions by  its order  sanctioning the arrangement or any subsequent  order,  for  the  transfer  of  the  assets  and liabilities of  a company  in liquidation to another company styled in  the section as transferee company. Where an order of court made under the section provides for the transfer of the assets  and liabilities  of a  company in liquidation to another company,  the assets  are, by  virtue of that order, without more,  transferred to  and vest  in  the  transferee company and  the liabilities  of the former company are also cast upon  the transferee company. Under the ordinary law of contract while 617 assets are assignable, liabilities under contracts or duties arising thereunder  are not assignable, but the effect of S.

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153(A) is  to some extent to override the ordinary law. Thus by an order sanctioning amalgamation of the rights, interest and liabilities  of the  transferor company  are transferred and vested in the transferee company. It appears that by the order  of   amalgamation,  the   interest,  rights   of  the transferor company in all its properties including leasehold interest and  tenancy rights  are transferred  and vested in the transferee company.      It has  been urged  that the  effect of amalgamation is analogous to  that of  a man who enters with partership with another. The  two companies  do not become jointly liable to their respective  separate  creditors  and  neither  becomes liable for  the debts  of the  other. The  general effect of amalgamation as  provided in Halsbury’s Laws of England (3rd Edition) Vol.  22, P.  432 has  been  referred  to  in  this connection  and   it  has   been  submitted   that  by   the amalgamation  there  has  been  no  subletting  as  the  1st appellant company has co-interest in transferee company, the 2nd appellant  company herein.  The case of Devarajulu Naidu v. Ethirajavalli  Thyaramma, [1949] 2 M.L.R. p. 423 has been referred to  in this  connection. In  that case the original tenancy was  in favour of three persons who were partners in the firm  and after  dissolution of the partnership firm one of the  partner was  allowed to  wind up  the affairs of the partnership and thereafter he was allowed to use the demised premises for  his sole  business. The question arose whether in such  case the  landlord was entitled to eviction of that partner from  the tenanted premises on the ground that there was subletting.  It was  held in the facts of that case that the original  tenancy being  in favour  of three persons who were partners  in the  firm and  act on  the part of the two partners after  dissolution of  the firm to allow one of the parterns to use the premises for his sole business could not amount to  a transfer  or subletting  of the premises to the petitioner. It has been observed as follows :           "This act  on the  part of  the two partners other           than the petitioner cannot amount to a transfer or           sub-letting of  the premises to the petitioner. It           is true  that the  Courts in England have taken up           an extreme view that even when one of two partners 618           after the  dissolution of  the partnership assigns           to  the   other  partner   the  interest   of  the           partnership in  premises which  had been  taken on           lease by  the partnership,  it would  amount to  a           breach of  the covenant  prohibiting an assignment           of the  lease without  the consent  of the lessor.           But this  Court was  not inclined  to  apply  this           doctrine to  Indian conditions.  In  Koragalva  v.           Jakri Beary, (1926, 52 M.L.J. 8) Devadoss, J. held           that the  transfer by  a co-lessee  in  favour  of           another lessee of his right in the lease would not           be a  breach of  a covenant against the assignment           without the consent of the landlord."      This decision  has got  no application  to the  instant case inasmuch as in that case the only question involved was whether the  transfer by  co-lessee  in  favour  of  another lessee of  his rights  would be a breach of covenant against assignment without the consent of the landlord.      We  have  already  stated  hereinbefore  that  the  1st appellant  company,   the  tenant,   has  transferred  their interest in  the tenanted  premises to  the appellant  No. 2 company on  the basis of the order made by the High Court of Bombay in  Company Petition  No. 4  of 1968  sanctioning the scheme submitted  to it  by the  transferor company. We have

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also held  that this  is  not  an  involuntary  transfer  by operation of  law, but  a transfer  of the  interest of  the tenant company on the basis of their application made before the  said   High  Court   in  the   said  Company  Petition. Furthermore, we  have also  held  that  the  Andhra  Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 which is a  special Act  provides specific grounds for termination of a tenancy and eviction of the tenant in S. 10(ii)(a) i.e. on the ground of subletting and/or transferring the interest of the  tenant either  in whole  or any part of the tenanted premises to  another  person.  Thus  the  Act  prohibits  in specific terms  both subletting  as well  as the transfer or assignment of  the interest of the tenant. Moreover clause 4 of  the   rent  agreement  executed  by  the  1st  appellant expressly prohibits  subletting  of  the  tenanted  premises without the  express consent of the landlord. The transferor company in  this case has undoubtedly been dissolved and the company has ceased to exist for all practical purpose in the eye of law. 619 All  the   interest  of  the  transferor  company  including possession in  respect of  the tenanted  premises have  been transferred to  the transferee  company in  contravention of the provisions  of the  said Act as well as in contravention of the  terms and  conditions of  the  said  rent  agreement thereby making  the transferee  company liable to be evicted from the tenanted premises.      It has  been observed  by Subba  Rao, J. in the case of Venkatarama Iyer  v. Renters  Ltd., [1951]  II M.L.R.  57 as follows :           "The Madras Buildings (Lease and Rent) Control Act           applies  not   only  to   residential   and   non-           residential buildings,  but also to same buildings           used  for   both  purposes.  If  a  Company  doing           business in a particular premises (taken on lease)           transfers its  business  as  a  going  concern  to           another  company  and  also  the  net  assets  for           consideration  and   thereafter   the   transferee           company takes  over the  business and  carries  on           business in  the premises  let out  to the  former           company it  cannot  be  said  that  there  was  no           transfer of  the right of the former company under           the lease  to the latter company. On such transfer           the tenant is liable to be evicted."      It is  pertinent to  mention  in  this  connection  the decision of  this court  in Parasaram  Harnand Rao v. Shanti Prasad Narinder  Kumar Jain  & Anr., [1980] 3 S.C.R. p. 444. In this  case the  appellant landlord  executed a  lease  in respect of the disputed premises in favour of respondent No. 2 for  three  years  on  1.4.1942.  In  1948  the  appellant landlord filed  a suit  for eviction  of the tenant for non- payment of  the rent  and for  conversion  of  user  of  the premises. The  suit for  possession  was  dismissed,  but  a decree for  arrears of  rent was passed and it was held that Laxmi Bank  was the  real  tenant.  The  Bombay  High  Court subsequently made  an order that the Bank be wound up and in the winding  up proceedings,  the High  Court  appointed  an official liquidator  who  sold  the  tenancy  right  to  the respondent  No.   1  in  1961.  The  sale  was  subsequently confirmed by  the High  Court and  the respondent No. 1 took possession of the premises on 24.2.1961. The landlord 620 appellant filed  an application under the Delhi Rent Control Act for eviction of the Laxmi Bank and a decree for eviction was passed in favour of the appellant. Thereafter respondent

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No. 1 filed a suit for declaration that he was tenant of the landlord. The suit was dismissed and the appeal against that order also  failed. The  respondent No. 1, however, filed an application for  recalling the  warrant of possession issued by the  court in  pursuance of  the decree  in favour of the appellant. This  ultimately came up in second appeal and the High Court  allowed the  Rent  Controller’s  order  allowing recalling of  warrant of  possession. On  appeal by  special leave this  Court held that the amplitude of S. 14(b) of the Delhi Rent  Control Act  was wide enough not only to include any sublease  but even  an assignment  or any  other mode by which possession of the tenanted premises is parted. In view of the  wide amplitude of s. 14(b), it does not exclude even an involuntary sale.      On a  conspectus of  all these  decisions  referred  to hereinbefore the  irresistible conclusion follows that there has been a transfer of the tenancy interest of appellant No. 1 in  respect of  the premises  in question to the appellant No. 2,  subsequently renamed  appellant No.  3 M/s. National Radio Electronics  Co. Ltd.  in utter  contravention of  the provisions of S. 10(ii)(a) of the said Act as well as of the terms and conditions of clause 4 of the rent agreement dated 12.1.1959 executed  by 1st  appellant i.e. M/s General Radio and Appliances (P) Ltd. in favour of respondent landlord.      We, therefore,  affirm the judgment and order passed by the High Court of Judicature Andhra Pradesh and dismiss this appeal. There will, however, be no order as to costs. S.R.                                       Appeal dismissed. 621