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Issues: Whether, under the Delhi Rent Control Act, 1958, the tenancy rights in respect of commercial premises remain heritable after termination of the contractual tenancy and the death of the tenant, and whether the heirs are entitled to continue in possession and claim the protection of the Act.
Analysis: The definition of tenant in the Act includes a person continuing in possession after termination of tenancy, and the Act treats such a tenant on the same footing as a contractual tenant unless the statute expressly provides otherwise. The scheme of the Act shows that termination of the contractual tenancy does not, by itself, extinguish the tenant's estate or interest in the premises. Section 2(1)(iii), introduced to regulate succession in residential premises, is a restrictive provision and does not negate the general heritability flowing from the Act in the case of commercial premises. The reasoning which treated statutory tenancy as a merely personal right was held not to state the correct law for Delhi commercial premises. The heirs of a deceased tenant therefore step into the tenant's position and are entitled to the protection of the Act in the absence of a contrary statutory provision.
Conclusion: The tenancy rights in commercial premises are heritable under the Act, and the heirs of the deceased tenant are entitled to continue in possession and to the protection available to the tenant.