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        Case ID :

        1986 (1) TMI 381 - SC - Indian Laws

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        Protected business tenancy cannot pass by will to a stranger; succession is limited to statutory family members. The Bombay Rent Act's definition of 'tenant' extends protection after termination of the lease only through the succession mechanism expressly provided in ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Protected business tenancy cannot pass by will to a stranger; succession is limited to statutory family members.

                          The Bombay Rent Act's definition of "tenant" extends protection after termination of the lease only through the succession mechanism expressly provided in section 5(11)(c). For business premises, devolution on death is confined to a family member carrying on the business, trade or storage with the tenant at the time of death. The Act does not recognise testamentary devolution of such protected tenancy rights to a stranger, and section 15(1) separately bars assignment or transfer of the tenant's interest. The statutory succession scheme therefore excludes bequest outside the class named in section 5(11)(c)(ii).




                          Issues: Whether a person in occupation of non-residential premises under a protected tenancy after determination of the lease can bequeath the tenancy right by will to a legatee who is not a member of the tenant's family carrying on business, trade or storage with the tenant at the time of death.

                          Analysis: The definition of "tenant" in section 5(11) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 extends protection after termination of the lease only in the manner specifically provided by clause (c). In the case of business premises, section 5(11)(c)(ii) confines devolution on death to a member of the tenant's family carrying on the business, trade or storage with the tenant at the time of death. The statutory scheme does not provide for testamentary devolution of such tenancy rights to a stranger, and section 15(1) also prohibits assignment or transfer of the tenant's interest. The restricted mode of succession under the Act excludes bequest in favour of a person outside the class named in section 5(11)(c)(ii).

                          Conclusion: A statutory tenancy in non-residential premises governed by the Act could not be bequeathed by will to a legatee who was not a family member carrying on the business with the tenant; the claim to tenancy under the will failed.

                          Final Conclusion: The tenancy protection under the Act was held to be limited by the statute itself, and no relief could be granted to the petitioner claiming through testamentary succession as a stranger to the statutory class.

                          Ratio Decidendi: Where a rent control statute restricts devolution of business-premises tenancy rights on death to specified family members, the tenant cannot enlarge that statutory succession by testamentary disposition in favour of a person outside the statutory class.


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                          ActsIncome Tax
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