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Civil Property & InheritanceDelhi High Court

Metal Cans Company vs. Bhuvan Mohan & Anr.

Regular First Appeal · CNR No. DLHC010556122024Decided 1 Oct 2026New Delhi Bench
RFA 566/2024CNR: DLHC010556122024
Justice Neena Bansal Krishna

Background

The plaintiff owns a 2,200 sq. yd. property (Khasra No. 1024), part of which (about 800 sq. yds.) was let to Defendant No. 2 for a factory from 1993. The appellant, Metal Cans Company, claimed it had acquired a perpetual tenancy by paying Rs 2,65,000 to the original tenant in 1983, and that the rent-control bar on eviction for rent of Rs 3,500 or less applied. The trial court decreed possession under Order XII Rule 6 CPC on 18.05.2024, and the appellant challenged that decree.

Decision Breakdown

The High Court dismissed the appeal. It held that the appellant had become a direct tenant of the plaintiff, because it had paid rent directly to the plaintiff in 2011, 2013 and 2014, and a tenant who accepts a landlord's tenancy cannot dispute the landlord's title. The rent exceeded Rs 3,500 per month (about Rs 8,300 on the payments shown), so the rent-control bar did not apply, even on the appellant's own figure once statutory interest on default rent was added. The Court also held that filing a suit for possession can serve as notice terminating the tenancy, following Supreme Court precedent. The appellant had confined its challenge to the Order XII Rule 6 decision, and the Court did not decide the separate order under Order XXXIX Rule 10.

Lesson Learnt

Paying rent directly to a property owner over several years can establish a landlord-tenant relationship and prevent a later claim of ownership. A claim of "perpetual tenancy" needs proof, and a suit for possession may itself be treated as notice to quit.

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