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M/s S.F. Engineer v. Metal Box India Limited and Another

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 4189 of 2014)Decided 28 Mar 2014
Civil Appeal No. 4189 of 2014
Justice Anil R. Dave · Justice Dipak Misra

Background

A landlord let flats and garages to a company for accommodation of its executives. One executive continued occupying a flat after resignation while his employment dues remained unpaid. The landlord obtained an eviction order for unlawful subletting, but the High Court reversed it, and the landlord appealed.

Decision Breakdown

The Court held that the employee's original entry was authorised by the tenancy terms. The company's delay in recovering possession and its withholding of employment dues did not establish a later arrangement transferring legal possession for consideration. The former employee's claims of subtenancy were self-serving, and the settlement between him and the employer reflected charges for overstaying rather than proof of a sublease. The High Court could correct the legally unsustainable inferences drawn by the lower courts. The Court dismissed the landlord's appeal, leaving the rejection of eviction on this ground in place.

Lesson Learnt

A landlord can prove subletting through legitimate inferences, but an employee's continued occupation and an employer's inaction do not automatically establish it. The evidence must support the necessary transfer of legal possession for consideration rather than merely an overstaying occupant.

Official source (sci.gov.in)View Judgment (PDF)

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