Sri M.V. Ramachandrasa (D) v. M/s. Mahendra Watch Company & Ors.

 High Court in revisional jurisdiction cannot reappreciate evidence; exclusive possession by strangers without proof of lawful induction constitutes unlawful sub-letting warranting eviction.


Facts

Eviction on ground of unlawful sub-letting reversed by High Court

(a) Landlord leased premises to respondent firm under registered lease (1985) with restriction on sub-letting (Para 3–4).

(b) Allegation: original tenant not in possession; strangers (Respondent Nos. 2 & 3) occupying premises (Para 4).

(c) Trial Court, on evidence, found unlawful sub-letting and ordered eviction (Para 5).

(d) High Court, in revision under s. 46 Karnataka Rent Act, 1999, set aside eviction (Para 6).

Issues Framed

(i) Whether High Court exceeded revisional jurisdiction by reappreciating evidence.
(ii) Whether unlawful sub-letting was proved.
(iii) Whether alleged partnership was genuine or a cloak for sub-letting (Para 11).

Court’s Reasoning

(a) Scope of Revisional Jurisdiction
The Court held that revisional power is limited to legality and cannot involve reappreciation:
“cannot be converted into an appellate jurisdiction” (Para 12.2).

Relying on Hindustan Petroleum Corp. Ltd. v. Dilbahar Singh, it reiterated that interference is permissible only where findings are “perverse… or suffer from manifest illegality” (Para 12.3).

The High Court erred by reassessing evidence and substituting findings (Para 12.6–12.9).

(b) Burden of Proof in Sub-letting
The Court reiterated:

  • initial burden lies on landlord,
  • once exclusive possession of third party is shown, burden shifts (Para 13.5).

Here:

  • original tenant absent,
  • Respondent Nos. 2 & 3 in exclusive possession → presumption of sub-letting (Para 13.6).

Respondents failed to rebut this presumption due to lack of documentary proof (Para 13.7).

(c) Test for Sub-letting vs Partnership
The Court emphasized:

  • “sub-letting requires parting with legal possession” (Para 14.3),
  • mere partnership is insufficient unless tenant retains control.

(d) Application to Facts
The Court found:

  • original tenant had ceased involvement,
  • no valid partnership deed or proof of lawful induction,
  • Respondent Nos. 2 & 3 were “strangers to the tenancy” (Para 14.5–14.6).

Thus:
“the so-called reconstitution is nothing but a cloak” (Para 14.9).

(e) Statutory Violation
Unlawful sub-letting established under:

  • s. 27(2)(b)(ii), s. 27(2)(p) Karnataka Rent Act, 1999 (Para 14.10).

Held

Appeal allowed; High Court judgment set aside; eviction order restored with 3 months’ time to vacate (Para 15).

Ratio

In rent control proceedings, revisional jurisdiction cannot be used to reappreciate evidence, and where a tenant parts with legal possession and third parties are in exclusive occupation without proof of lawful induction, it constitutes unlawful sub-letting warranting eviction.

Case Details

Citation: 2026 INSC 348
Decided on: 10 April 2026
Case Title: Sri M.V. Ramachandrasa (D) v. M/s. Mahendra Watch Company & Ors.
Court: Supreme Court of India
Bench: R. Mahadevan, J.; Ahsanuddin Amanullah, J.

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