Tenancy transfer restrictions do not cover a court sale in liquidation; purchaser's occupation of premises was upheld.

Section 14 of the West Bengal Premises Tenancy Act, 1956 was treated as barring only a tenant's voluntary sub-letting, transfer, or assignment without the landlord's consent. A court-conducted sale of a company in liquidation as a going concern was held to be materially different from the voluntary alienation contemplated by the provision. On that basis, the court held that a rigid application of Section 14 would frustrate the preservation of the undertaking and related employment, and the purchaser's continuation in the registered office premises was not barred. The application for disclaimer was rejected.

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Issues: Whether Section 14 of the West Bengal Premises Tenancy Act, 1956 barred the continuation of the tenancy/occupation of the registered office premises by the purchaser of the company in liquidation, so as to justify a disclaimer and eviction of the purchaser.

Analysis: Section 14 prohibits a tenant from voluntarily sub-letting, transferring, or assigning the tenancy without the landlord's consent. The provision was read as a protective enactment aimed at preventing an unscrupulous voluntary parting with tenancy rights to the prejudice of the landlord. The sale in question was not a voluntary transfer by the tenant but a court-conducted sale of the company's assets in liquidation as a going concern. The court treated the transaction as materially different from the situation contemplated by Section 14, and held that a rigid reading of the provision would defeat the purpose of preserving employment for the workers attached to the undertaking and the registered office.

Conclusion: Section 14 was held inapplicable to the facts, and the application for disclaimer was rejected.

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